HB5008 - Relating to the use of the skills development fund by certain entities.

  89R9001 DNC-D     By: Bell of Kaufman, Wilson, Frank, Dyson, H.B. No. 5008       Virdell, et al.       A BILL TO BE ENTITLED   AN ACT   relating to the use of the skills development fund by certain   entities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 303.001(a), Labor Code, is amended to   read as follows:          (a)  The purpose of this chapter is to remove administrative   barriers that impede the response of public community and technical   colleges, community-based organizations, local workforce   development boards, the Texas A&M Engineering Experiment Station,   and the Texas A&M Engineering Extension Service to industry and   workforce training needs and to develop incentives for public   community and technical colleges, community-based organizations,   local workforce development boards, the Texas A&M Engineering   Experiment Station, and the Texas A&M Engineering Extension Service   to provide customized assessment and training in a timely and   efficient manner.          SECTION 2.  Section 303.002(b), Labor Code, is amended to   read as follows:          (b)  A public community or technical college , the Texas A&M   Engineering Experiment Station, or the Texas A&M Engineering   Extension Service may recover customized assessment and training   costs incurred by the college, station, or service [ institution ]   if:                (1)  there is an actual or projected labor shortage in   the occupation in which training is provided that is not being met   by an existing institution or program in the area; and                (2)  the wages at the time of job placement for   individuals who successfully complete customized training at the   public community or technical college , the Texas A&M Engineering   Experiment Station, or the Texas A&M Engineering Extension Service   are equal to the prevailing wage for that occupation in the local   labor market area.          SECTION 3.  Sections 303.003(b), (f), (g), and (h), Labor   Code, are amended to read as follows:          (b)  The skills development fund may be used by public   community and technical colleges, community-based organizations,   local workforce development boards, the Texas A&M Engineering   Experiment Station, and the Texas A&M Engineering Extension Service   as start-up or emergency funds for the following job-training   purposes:                (1)  developing customized training programs for   businesses and trade unions; and                (2)  sponsoring small and medium-sized business   networks and consortiums.          (f)  The Texas A&M Engineering Experiment Station and the   Texas A&M Engineering Extension Service shall focus the station's   or service's training activities under this chapter on programs   that:                (1)  are statewide in nature; or                (2)  are not available from a local junior college   district, a local technical college, or a consortium of junior   college districts.          (g)  This section does not prohibit the Texas A&M Engineering   Experiment Station or the Texas A&M Engineering Extension Service   from participating in a consortium of junior college districts or   with a technical college that provides training under this chapter.          (h)  A community-based organization may apply for money to   participate in a training program only in partnership with a   community and technical college , the Texas A&M Engineering   Experiment Station, or the Texas A&M Engineering Extension Service.   A community-based organization providing services regulated by the   state shall provide evidence of any certification, license, or   registration required by law.          SECTION 4.  Section 303.004, Labor Code, is amended to read   as follows:          Sec. 303.004.  FUND REVIEW; REPORT BY CERTAIN WORKFORCE   TRAINING PROVIDERS REQUIRED. (a) The Texas Higher Education   Coordinating Board shall review all customized training programs   biennially to verify that state funds are being used appropriately   by public community and technical colleges , the Texas A&M   Engineering Experiment Station, and the Texas A&M Engineering   Extension Service under this chapter.          (b)  Not later than October 1 of each even-numbered year, the   Texas A&M Engineering Experiment Station, the Texas A&M Engineering   Extension Service , and each public community or technical college   that provides workforce training under this chapter shall:                (1)  conduct a review of the station's, service's , or   college's training programs to:                      (A)  determine the effectiveness of the programs   in improving the wages of participants who complete the programs;   and                      (B)  identify strategies for improving the   delivery of workforce training in order to more effectively impact   economic development in this state; and                (2)  submit to the commission a detailed written report   summarizing the results of the review for inclusion by the   executive director in the report to the governor and the   legislature required by Section 303.006(c).          (c)  If the Texas A&M Engineering Experiment Station, the   Texas A&M Engineering Extension Service , or a public community or   technical college fails to submit a report required by Subsection   (b)(2):                (1)  the station, service , or college must refund to   the comptroller any unexpended state funds received by the station,   service , or college under this chapter for the state fiscal   biennium in which the report was due; and                (2)  the commission may not award any additional grant   to the station, service , or college under this chapter until the   station, service , or college has complied with that reporting   requirement.          SECTION 5.  This Act takes effect September 1, 2025.