Employees, Employers - As enacted, enacts the "Tennessee Works Act of 2012." - Amends TCA Title 4, Chapter 29 and Title 50, Chapter 7.
SB2129 has been assigned Public Chapter Number 1068 by the Secretary of State.
  • Bill History
  • Amendments
  • Video
  • Summary
  • Fiscal Note
  • Votes
  • Actions For SB2129Date
    Pub. Ch. 1068 05/29/2012
    Effective date(s) 05/21/12; 01/01/1305/29/2012
    Signed by Governor05/21/2012
    Transmitted to Gov. for action.05/09/2012
    Signed by H. Speaker05/09/2012
    Signed by S. Speaker05/08/2012
    Enrolled and ready for signatures05/04/2012
    Sponsor(s) Added.05/01/2012
    Passed H., Ayes 91, Nays 0 05/01/2012
    Am. withdrawn.(Amendment 2 - HA1388)05/01/2012
    Am. withdrawn.(Amendment 1 - HA1387)05/01/2012
    Subst. for comp. HB.05/01/2012
    Rcvd. from S., held on H. desk.04/26/2012
    Engrossed; ready for transmission to House04/25/2012
    Sponsor(s) Added.04/25/2012
    Passed S. as am., Ayes 33, Nays 004/25/2012
    S. adopted am.(Amendment 2 of 0 - SA1241)04/25/2012
    S. adopted am.(Amendment 1 of 0 - SA1177)04/25/2012
    Placed on Senate Regular Calendar cal. for 4/25/201204/24/2012
    S. Reset on cal. for 4/25/201204/24/2012
    Placed on Senate Regular Calendar 2 cal. for 4/24/201204/20/2012
    Rec. for pass. w/ am., ref. to S. Cal. Comm. Ayes 11, Nays 0 PNV 004/17/2012
    Placed on S. FW&M Comm. cal. for 4/17/201204/11/2012
    Rec. for pass. w/ am., ref. to S. FW&M Comm. Ayes 9, Nays 0 PNV 004/11/2012
    Sponsor(s) Added.04/11/2012
    Sponsor(s) Added.04/09/2012
    Sponsor(s) Added.04/09/2012
    Sponsor(s) Added.04/05/2012
    Placed on S. C,L&A Comm. cal. for 4/11/201204/04/2012
    Rec. For Pass. ref. to: S. C,L&A Comm.03/28/2012
    Sponsor(s) Added.03/27/2012
    Placed on S. Govt. Ops. Comm. cal. for 3/28/201203/21/2012
    Action Def. in S. Govt. Ops. Comm. to 3/28/201203/21/2012
    Placed on S. Govt. Ops. Comm. cal. for 3/21/201203/14/2012
    P2C, ref. to S. Govt. Ops. Comm. - for review01/12/2012
    Intro., P1C.01/10/2012
    Filed for intro.10/06/2011
    Actions For HB2309Date
    Comp. became Pub. Ch. 106805/29/2012
    Sponsor(s) Added.05/01/2012
    Comp. SB subst. 05/01/2012
    H. Placed on Regular Calendar for 4/30/201204/30/2012
    Placed on cal. Calendar & Rules Committee for 4/30/201204/30/2012
    Rec. for Pass. if Am. ref. to: Calendar & Rules Committee04/30/2012
    Placed on cal. Finance, Ways & Means Committee for 4/24/201204/23/2012
    Placed on cal. Finance, Ways & Means Committee for 4/24/201204/23/2012
    Rec. for pass. if am. by s/c ref. to Finance, Ways & Means Committee04/23/2012
    Placed on s/c cal Finance Subcommittee for 4/25/201204/18/2012
    Action Def. in s/c Finance Subcommittee to next calendar04/18/2012
    Placed on s/c cal Finance Subcommittee for 4/18/201204/11/2012
    Assigned to s/c Finance Subcommittee04/11/2012
    Rec. For Pass. ref. to: Finance, Ways & Means Committee04/04/2012
    Placed on cal. Government Operations Committee for 4/4/201203/28/2012
    Rec. For Pass. ref. to: Government Operations Committee03/27/2012
    Placed on cal. Commerce Committee for 3/27/201203/21/2012
    Rec. For Pass. by s/c ref. to Commerce Committee 03/21/2012
    Placed on s/c cal Commerce Subcommittee for 3/21/201203/14/2012
    Action Def. in s/c Commerce Subcommittee to 3/21/201203/14/2012
    Placed on s/c cal Commerce Subcommittee for 3/14/201203/07/2012
    Sponsor(s) Added.02/14/2012
    Sponsor(s) Added.01/25/2012
    Assigned to s/c Commerce Subcommittee01/24/2012
    P2C, ref. to Commerce Committee--Government Operations for review01/13/2012
    Intro., P1C.01/12/2012
    Filed for intro.01/10/2012
  • AmendmentsFiscal Memos
    SA1177Amendment 1-1 to SB2129Fiscal Memo for SA1177 (16579)  Fiscal Memo for SA1177 (16579)  
    SA1241Amendment 2-1 to SB2129Fiscal Memo for SA1241 (16609)  
    AmendmentsFiscal Memos
    HA1387Amendment 1-1 to HB2309Fiscal Memo for HA1387 (16579)  Fiscal Memo for HA1387 (16579)  
    HA1388Amendment 2-2 to HB2309Fiscal Memo for HA1388 (16609)  

    NOTE: Each fiscal memorandum applies only to the amendment(s) identified in the memorandum. The fiscal memorandum must be matched to any amendments that have been adopted.

  • Videos containing keyword: SB2129

  • Fiscal Summary

    Increase State Expenditures - $1,600,000/Training Fund Other Fiscal Impact - An annual appropriation of state funds equal to $1,600,000 to the Training Fund would be required for adequate administration of the proposed program.


    Bill Summary

    This bill creates the Tennessee Works program, administered by the department of labor and workforce development, to provide job training designed to attract new business, assist in the expansion of business, and retain existing business in this state.

    Only those businesses that are physically located or intend to be physically located within the state may receive funds under this bill. Priority in awarding grants would be given to small businesses for the implementation of technological innovations. In order to participate in the Tennessee Works program, grant recipients must match at least $1.00 for each dollar provided through the grant. Such match funds must be directly related to training.

    Only those employees who are residents of Tennessee, or who work for a business that is located or intends to locate within the state, may receive training from grants under this bill. Intent by a business to locate within the state must be established to the satisfaction of the grant review committee, described below. The bill details the minimum requirements for intent to be established.

    No grant may be made to any state entity; any county, city, town, or other political subdivision that is not an employing unit under present Tennessee Employment Security Law; or any 501(c)(3) non-profit organization or group of organizations that is not an employing unit.

    Funds from grant awards must be used to pay costs necessary and reasonable for the proper and efficient delivery of training to the employees of the grant recipient. Funds for training grants must supplement, and not replace, funds available through existing programs conducted by the business entity, or other public or private training programs. Training programs under this bill may include structured, on-site laboratory or classroom training; basic skills; technical skills; quality improvement; safety; management and supervision; and English as a second language. The following costs are not eligible for the use of grant awards under this bill:

    (1) Costs resulting from violations of or failure to comply with federal, state, or local laws and regulations;
    (2) Entertainment costs;
    (3) Administrative costs; and
    (4) Salaries and wages of employees in training.

    To the extent feasible, training would be provided by and conducted at community colleges or Tennessee technology centers, which may charge full market value for the training and facilities. When community colleges or Tennessee technology centers cannot provide desired training, the training grant recipient may contract with some other training entity approved by the department. The training provider must be specified in any grant award.

    GRANT REVIEW COMMITTEE

    This bill creates the grant review committee to make recommendations to the commissioner of labor and workforce development concerning the award of training grants to businesses. The committee would consist of the following:

    (1) The commissioner of labor and workforce development, or the commissioner's designee, who would call the first meeting of the committee and serve as the chair of the committee;
    (2) The commissioner of economic and community development, or the commissioner's designee;
    (3) The chancellor of the board of regents, or the chancellor's designee;
    (4) One member representing labor, appointed by the governor;
    (5) Three members representing business and industry, appointed by the governor;
    (6) One member of the senate, appointed by the speaker of the senate; and
    (7) One member of the house, appointed by the speaker of the house.

    The members described above in (4) - (5) would serve staggered terms of three years or, in the event of a vacancy, until such member's successor is appointed by the original appointing authority. The members described above in (6) - (7) would serve for their full term of office as members of the general assembly and until their successors are selected and qualified if reelected to either house. Such members are eligible to succeed themselves as members of the committee. The terms of the initial appointments will not begin before July 1, 2012. Committee members would be reimbursed for travel expenses.

    By April 1, 2013, the commissioner, in consultation with the committee, must establish performance criteria. The committee must submit, at the end of each fiscal year, to the commissioner of labor and workforce development, the commissioner of economic and community development, the governor, the speakers of each house, the office of budget analysis and the fiscal review committee a report indicating the level of performance achieved through the program. The department would evaluate the performance level for each training grant program provided to a business, and submit such evaluation to the grant review committee.

    TRAINING FUND

    This bill creates the "training fund." Commencing January 1, 2013, the moneys in this fund may be used solely as determined by the commissioner of labor and workforce development for funding training under the job training program. Any revenues deposited in the training fund, or earned by the fund, would remain in the fund until expended for purposes consistent with this bill and would not revert to the general fund at the end of the fiscal year.

    The department may use no more than 10 percent of any moneys received from the training fund to pay for administration of the Tennessee Works program, and 90 percent of any moneys received from the training fund must be used for training grants under this bill.

    ON APRIL 25, 2012, THE SENATE ADOPTED AMENDMENTS #1 AND #2 AND PASSED SENATE BILL 2129, AS AMENDED.

    AMENDMENT #1 rewrites this bill to make the Tennessee Works program a pilot program through which the department of labor and workforce development will be authorized to award reimbursable training grants to privately owned businesses for the purpose of training employees in Tennessee.

    TRAINING GRANTS

    The Tennessee Works Pilot program training grants will be awarded to eligible businesses, as determined by the department, seeking to make new hires through the program. The grants must be used for the eligible training expenses, as determined by the department, of a dislocated worker:

    (1) Who is a first time unemployment insurance claimant. The claimant shall continue to receive unemployment insurance benefits during the training period; or
    (2) Whose job is lost due to workforce off shoring by the worker's former employer and who is currently under a valid trade petition approved by the United States department of labor.

    This amendment defines "dislocated worker" as an individual who:

    (1) Was terminated or laid off, or who received a notice of termination or layoff from employment, whether or not the individual has exhausted entitlement to unemployment insurance benefits;
    (2) Was terminated or laid off, or received a notice of termination or layoff from employment as a result of any permanent closure of, or any substantial layoff at, a plant, facility, or enterprise, including a facility at which the employer has made a general announcement that the facility will close within 180 days;
    (3) Was self-employed, but is unemployed as a result of general economic conditions in the community in which the individual resides or because of natural disasters; or
    (4) Is a displaced homemaker. A "displaced homemaker" means an individual who was providing unpaid services to the individual's family members in the home and was dependent on the income of another family member but is no longer supported by that income.

    A Tennessee Works Pilot program initial training period will last for up to eight weeks. At any time during the initial training period or at the end of the initial training period, the grant recipient may elect to employ a dislocated worker on a full-time basis. If a grant recipient elects to employ the dislocated worker and to provide additional OJT to the dislocated worker, then the grant recipient will be eligible to receive a wage offset in return for providing additional OJT to the dislocated worker. A dislocated worker shall no longer be eligible to receive unemployment insurance benefits or trade adjustment compensation if the dislocated worker is employed and receiving OJT. If the grant recipient does not retain the dislocated worker following the OJT period and the dislocated worker is otherwise eligible to receive unemployment insurance benefits, then the dislocated worker can, upon filing a claim, resume receipt of unemployment insurance benefits. A business will no longer be eligible for grants through the Tennessee Works Pilot program if the business does not demonstrate a pattern of continued employment of dislocated workers following the end of the OJT period.

    The following are not eligible for grants made pursuant to this amendment:

    (1) Any state entity;
    (2) Any political subdivision of this state; or
    (3) ? 501(c)(3) organizations.

    TRADE ADJUSTMENT ASSISTANCE FUNDS

    This amendment limits the issuance of funds distributed in accordance with the federal Trade Adjustment Assistance Reform Act of 2002, ("trade adjustment assistance funds") to the following:

    (1) Through the Tennessee Works Pilot program for training a worker whose job was lost due to off shoring; and
    (2) In limited cases as an option to expedite employment where a worker whose job was lost due to off shoring.

    FUNDING

    The Tennessee Works Pilot program will be funded solely with funds received by the state from the United States department of labor and will be subject to the availability of such funds and all laws governing the use of the funds.

    MISCELLANEOUS

    This amendment authorizes the department to adopt rules to effectuate this amendment, including public necessity rules.

    This amendment requires the department shall report to the commerce, labor & agriculture committee of the senate and the commerce committee of the house of representatives concerning the department's findings and recommendations concerning the Tennessee Works Pilot program by January 1, 2014.

    AMENDMENT #2 specifies that the Tennessee works pilot program would award reimbursable training grants to privately owned businesses for the purpose of "screening for potential employment" of new and existing employees in this state. Additionally, this amendment clarifies that "OJT" means "on the job training". This amendment changes the bill's effective date to instead specify that for purposes of promulgating rules and regulations, the bill will take effect upon becoming law, and for all other purposes, this bill take effect on January 1, 2013.

  • FiscalNote for SB2129/HB2309 filed under SB2129
  • House Floor and Committee Votes

    House moved to substitute and conform to HB2309

    SB2129 by Berke - FLOOR VOTE: PASSAGE ON THIRD CONSIDERATION 5/1/2012
    Passed
              Ayes...............................................91
              Noes................................................0

              Representatives voting aye were: Alexander, Bass, Brooks H, Brooks K, Brown, Butt, Campbell, Carr, Casada, Casada, Cobb, Coley, Curtiss, Dean, DeBerry J, DeBerry L, Dennis, Dunn, Elam, Eldridge, Evans, Faison, Fitzhugh, Fitzhugh, Floyd, Ford, Forgety, Gilmore, Gotto, Halford, Hall, Hardaway, Harmon, Harrison, Harwell, Hawk, Hawk, Haynes, Hensley, Hill, Holt, Hurley, Johnson C, Johnson C, Johnson P, Jones S, Keisling, Kernell, Lollar, Maggart, Marsh, Matheny, Matlock, McCormick, McCormick, McDaniel, McDaniel, McDonald, McManus, Miller D, Miller L, Moore, Naifeh, Niceley, Parkinson, Pitts, Pody, Powers, Pruitt, Ragan, Ramsey, Rich, Richardson, Roach, Sanderson, Sargent, Sexton, Shaw, Shepard, Shipley, Sontany, Sparks, Stewart, Swann, Tidwell, Todd, Towns, Turner J, Turner M, Watson, Weaver, White, Williams K, Williams R, Windle, Wirgau, Womick, Mr. Speaker Harwell, Mr. Speaker Naifeh, Mr. Speaker Williams K -- 91.

              HB2309 by Fitzhugh - HOUSE CALENDAR & RULES COMMITTEE:
    Recommended for passage - refer to: House Regular Calendar 1 4/30/2012
              Voice Vote - Ayes Prevail

              HB2309 by Fitzhugh - HOUSE FINANCE, WAYS & MEANS SUBCOMMITTEE:
    Recommended for passage w/amendments- refer to: Finance, Ways & Means Committee 4/25/2012
              Voice Vote - Ayes Prevail

              HB2309 by Fitzhugh - HOUSE FINANCE, WAYS & MEANS COMMITTEE:
    Recommended for passage w/amendments- refer to: Calendar & Rules Committee 4/24/2012
              Voice Vote - Ayes Prevail

              HB2309 by Fitzhugh - HOUSE GOVERNMENT OPERATIONS COMMITTEE:
    Recommended for passage - refer to: Finance, Ways & Means Committee 4/4/2012
              Voice Vote - Ayes Prevail

              HB2309 by Fitzhugh - HOUSE BUSINESS AND UTILITIES COMMITTEE:
    Recommended for passage - refer to: Government Operations Committee 3/27/2012
              Voice Vote - Ayes Prevail

              HB2309 by Fitzhugh - HOUSE BUSINESS AND UTILITIES SUBCOMMITTEE:
    Recommended for passage - refer to: Commerce Committee 3/21/2012
              Voice Vote - Ayes Prevail

    Senate Floor and Committee Votes

    SB2129 by Berke - FLOOR VOTE: THIRD CONSIDERATION AMENDED 4/25/2012
    Passed
              Ayes...............................................33
              Noes................................................0

              Senators voting aye were: Barnes, Beavers, Bell, Berke, Burks, Campfield, Crowe, Faulk, Finney L, Ford, Gresham, Harper, Haynes, Henry, Herron, Johnson, Kelsey, Ketron, Kyle, Marrero, Massey, McNally, Norris, Overbey, Ramsey, Roberts, Southerland, Stewart, Summerville, Tate, Tracy, Watson, Yager, Mr. Speaker McNally, Mr. Speaker Ramsey -- 33.

    SB2129 by Berke - SENATE FINANCE, WAYS AND MEANS COMMITTEE:
    Recommended for passage w/amendments- refer to: S. Cal. Comm. 4/17/2012
    Passed
              Ayes...............................................11
              Noes................................................0

              Senators voting aye were: Finney L, Gresham, Haynes, Henry, Kelsey, Ketron, Kyle, McNally, Norris, Overbey, Watson, Mr. Speaker McNally -- 11.

    SB2129 by Berke - SENATE COMMERCE AND LABOR COMMITTEE:
    Recommended for passage w/amendments- refer to: S. FW&M Comm. 4/11/2012
    Passed
              Ayes................................................9
              Noes................................................0

              Senators voting aye were: Beavers, Burks, Faulk, Gresham, Johnson, Southerland, Stewart, Tate, Tracy -- 9.

    SB2129 by Berke - SENATE GOVERNMENT OPERATIONS COMMITTEE:
    Recommended for passage - refer to: S. C,L&A Comm. 3/28/2012
    Passed
              Ayes................................................9
              Noes................................................0

              Senators voting aye were: Bell, Crowe, Harper, Kyle, Massey, Roberts, Summerville, Tate, Watson -- 9.