Subcommittee on Workforce Development 
                               Thursday, June 6, 2002 
                                     10:00 a.m. 
                           Capitol Extension, Room E1.016 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Business &  
         Commerce, Subcommittee on Workforce Development, was held on  
         Thursday, June 6, 2002, in the Capitol Extension, Room E1.016,  
         at Austin, Texas. 
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Troy Fraser, Chairman           Senator Eliot Shapleigh 
         Senator John Carona                     Senator Leticia Van de  
         Senator Mike Jackson                     
         Senator Eddie Lucio, Jr. 
         Chairman Fraser called the meeting to order at 10:10 a.m.  There  
         being a quorum present, the following business was transacted. 
         The Chairman thanked all present for attending the first hearing  
         of the Subcommittee on Interim Charge #3.  He stated that the  
         Subcommittee was charged with assessing state workforce  
         development and job training programs in Texas, as well as  
         determining the need for a statewide strategic plan for  
         workforce programs and recommending measures necessary to  
         improve such programs.   Chairman Fraser mentioned, as a  
         reminder, that one of the State's economic development tools,  
         the Smart Jobs program, was dissolved in Sunset legislation last  
         session.  Through this Subcommittee, the Chairman would like to  
         assess the impact to the State of Texas of the loss of that  
         program and to assess the need for the creation of a new program  
         and/or an expansion of current programs.   
         At this hearing, the Subcommittee would hear invited testimony  
         from state agencies involved with job training and workforce  
         development, as well as from the premier economist in this  
         field, Dr. Ray Perryman.  The point of this hearing would be to  
         gauge what incentive-based programs are available now, and what  
         holes, if any, exist in that economic development arsenal.   
         Public testimony will be taken at a later hearing.  Chairman  
         Fraser then called Dr. Ray Perryman, President of The Perryman  
         Group, to discuss the economic effects of job training programs. 
         Following Dr. Perryman's testimony and response to members'  
         questions, the Chairman called Cheryl Fuller, Executive Director  
         of the Texas Council on Workforce and Economic  Competitiveness  
         (TCWEC), to present an overview of the Smart Jobs Study  
         performed by TCWEC, and other states' initiatives regarding  
         incentive-based workforce training programs. 
         Upon completion of Ms. Fuller's testimony, Chairman Fraser  
         called Panel 1 to discuss the future of Texas  Economic  
         Development (TXED), the close-out of the Smart Jobs program, and  
         the future of economic development in Texas.  The panelists  
              Massey Villarreal, Chairman, Governing Board, Texas  
         Economic Development, 
              Jeff Moseley, Executive Director, Texas Economic  
         Development, and 
              Daniel Martin, Director Business Incentives, Texas Economic  
         The Chairman then called Panel 2 to present an overview of the  
         Unemployment Insurance Trust Fund, the Skills Development Fund,  
         and the Apprenticeship program.  These panelists were: 
              Diane Rath, Chair Representing Public, Texas Workforce  
         Commission (TWC), 
              Ron Lehman, Commissioner Representing Employers, TWC, and 
              Terrence P. O'Mahoney, Commissioner Representing Labor,  
         There being no further business, at 1:07 p.m. Chairman Fraser  
         moved that the Subcommittee stand recessed subject to the call  
         of the chairman.  Without objection, it was so ordered.   
         Senator Troy Fraser, Chairman 
         Barbara Henderson, Clerk