H.B. No. 1755
AN ACT
relating to the creation of the Lone Star Workforce of the Future
Fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle G, Title 3, Education Code, is amended
by adding Chapter 134A to read as follows:
CHAPTER 134A. LONE STAR WORKFORCE OF THE FUTURE FUND
Sec. 134A.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Texas Workforce
Commission.
(2) "Public junior college" and "public technical
institute" have the meanings assigned by Section 61.003.
Sec. 134A.002. PURPOSE. The purpose of this chapter is to:
(1) create and sustain a utilization-driven supply of
qualified workers for entry-level to mid-level jobs in high demand
occupations in this state;
(2) address and close the gap between the skills
needed by workers and the current skills of the available workforce
in this state;
(3) increase the interest of current and future Texans
to fill the available and emerging jobs in this state that require
less education than a bachelor's degree but more than a high school
diploma; and
(4) strengthen the state's economy by increasing the
competitiveness of businesses in this state and the recruitment of
businesses to this state.
Sec. 134A.003. LONE STAR WORKFORCE OF THE FUTURE FUND. (a)
The commission shall establish and administer the Lone Star
Workforce of the Future Fund as a dedicated account in the general
revenue fund.
(b) The following amounts shall be deposited in the fund:
(1) any money appropriated by the legislature for the
fund for purposes of this chapter;
(2) interest earned on the investment of money in the
fund; and
(3) gifts, grants, and donations received for the
fund.
Sec. 134A.004. ADVISORY BOARD. (a) An advisory board of
education and workforce stakeholders is created to assist the
commission in administering this chapter.
(b) The advisory board is composed of six members who serve
two-year terms and are appointed as follows:
(1) one member appointed by the governor;
(2) one member appointed by the lieutenant governor;
(3) one member appointed by the speaker of the house of
representatives;
(4) one member appointed by the Texas Higher Education
Coordinating Board;
(5) one member appointed by the commission; and
(6) the chair of the commission, who serves as the
presiding officer.
(c) The advisory board shall meet at least twice each
calendar year, or as needed, to make recommendations on awarding
grants under this chapter.
Sec. 134A.005. FUND USE. Money in the Lone Star Workforce
of the Future Fund may be used by the commission only to:
(1) award grants as provided by this chapter; and
(2) conduct, with a consortium of corporate partners
identified by the commission as having available entry-level
workforce demand, due diligence assessment reviews of entities
receiving grants under this chapter.
Sec. 134A.006. LONE STAR WORKFORCE OF THE FUTURE FUND GRANT
PROGRAM. The commission shall establish and administer the Lone
Star Workforce of the Future Fund grant program to provide grants to
public junior colleges, public technical institutes, and nonprofit
organizations that apply to the commission in the manner prescribed
by the commission and satisfy the eligibility criteria prescribed
by Section 134A.007. The commission shall award the grants on the
advice and recommendations of the advisory board.
Sec. 134A.007. GRANT ELIGIBILITY. To be eligible to
receive a grant under this chapter, a public junior college, public
technical institute, or nonprofit organization must:
(1) administer one or more performance-based
workforce training programs that:
(A) lead to skill development and experiences
required for employment in high demand occupations in at least one
career field identified and listed as a high-growth career field
by:
(i) the commission;
(ii) the Texas Workforce Investment
Council; or
(iii) the Tri-Agency Workforce Initiative
established under Chapter 2308A, Government Code;
(B) are developed and provided based on
consultation with and input from employers who are hiring in high
demand occupations;
(C) create pathways to employment for program
participants; and
(D) are delivered through classroom-based or
online instruction, work-based experiences internships, or
apprenticeships, or through a combination of those methods;
(2) demonstrate through third-party validated data
successful outcomes in:
(A) recruiting local unemployed and
underemployed individuals to participate in the training program or
programs;
(B) training individuals with the skills needed
to secure full-time employment paying at least a self-sufficient
wage as determined under Section 2308A.012, Government Code, in the
relevant job field; and
(C) placing individuals in employment in high
demand occupations;
(3) demonstrate the ability to attract at least 40
percent of the necessary funding for training program operation
from revenue streams other than state government funding; and
(4) agree to:
(A) collaborate with the commission, corporate
partners, and nonprofit educational partners to determine the
training programs to be provided using grant money;
(B) secure support from local businesses to
ensure alignment between training program offerings and in-demand
skills;
(C) collaborate with regional employers, public
junior colleges, public technical institutes, or nonprofit
organizations to make available developmental work-based
experiences to further enhance training program participants'
career readiness;
(D) engage local entities and organizations,
including local workforce development boards and community-based
organizations, to assist with identifying and recruiting eligible
training program participants;
(E) provide documentation to the commission
describing training program offerings, including information
necessary to verify that the offerings will:
(i) provide training that is not exclusive
to a single corporate partner; and
(ii) lead to knowledge, skills, and
work-based experiences that are transferable to similar employment
opportunities in high demand occupations offered by other
employers; and
(F) comply with any additional grant conditions
prescribed by commission rule, including performance benchmarks
established under Section 134A.008 and reporting requirements
established under Section 134A.009.
Sec. 134A.008. PERFORMANCE BENCHMARKS. (a) The commission
by rule shall establish performance benchmarks for entities
receiving grants under this chapter. The benchmarks must include a
requirement that an entity facilitate the successful transition of
at least 50 percent of the entity's training program participants
from low wage work or unemployment to full-time jobs offering a
self-sufficient wage as determined under Section 2308A.012,
Government Code, and the opportunity for career mobility, as
determined by the commission, within six months of training program
completion.
(b) The commission by rule shall require reimbursement on a
pro rata basis by an entity that does not meet a performance
benchmark required by this section.
(c) An entity is not required to comply with a performance
benchmark required by this section if the entity's compliance is
not possible because of an act of God, force majeure, or a similar
cause not reasonably within the entity's control.
Sec. 134A.009. REPORTING REQUIREMENTS. The commission by
rule shall require each entity receiving a grant under this chapter
to submit progress reports to the commission at least twice
annually. Each progress report must include the following
information relating to a training program funded by the grant:
(1) the number of participants;
(2) an update on progress toward performance
benchmarks;
(3) a description of any key accomplishments achieved,
lessons learned, or setbacks or risks incurred by the entity in
administering the training program;
(4) an explanation of any material changes to the
training program's work plan, team, or budget; and
(5) the amount of grant money spent by the entity
during the reporting period.
Sec. 134A.010. GRANT AMOUNT. The amount of a grant awarded
to an entity under this chapter for a training program may not
exceed $15,000 per training program participant.
Sec. 134A.011. GRANT USE. An entity may use grant money
received under this chapter only for:
(1) curriculum development;
(2) instructor fees and certifications;
(3) training materials;
(4) work-related expenses;
(5) work-based experience stipends;
(6) related wraparound services important to help
ensure success for training program participants as determined by
commission rule; and
(7) administrative costs as determined by commission
rule, except that the amount used by an entity for that purpose may
not exceed 10 percent of the total amount of grant money received by
the entity.
Sec. 134A.012. RULES. The commission shall adopt rules as
necessary to administer this chapter.
SECTION 2. The Texas Workforce Commission shall adopt rules
for the administration of Chapter 134A, Education Code, as added by
this Act, as soon as practicable following the effective date of
this Act but not later than December 1, 2023.
SECTION 3. (a) Notwithstanding any other provision of this
Act, in a state fiscal year, the Texas Workforce Commission is not
required to implement a provision found in another provision of
this Act that is a mandatory provision imposing a duty on the
commission to take an action unless money is specifically
appropriated to the commission for that fiscal year to carry out
that duty. The Texas Workforce Commission may implement the
provision in that fiscal year to the extent other funding is
available to the commission to do so.
(b) If, as authorized by Subsection (a) of this section, the
Texas Workforce Commission does not implement a mandatory provision
in a state fiscal year, the commission, in its legislative
appropriations request for the next state fiscal biennium, shall
certify that fact to the Legislative Budget Board and include a
written estimate of the cost of implementing the provision in each
year of that next state fiscal biennium.
(c) This section expires and any duty suspended by
Subsection (a) of this section becomes mandatory on September 1,
2027.
SECTION 4. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1755 was passed by the House on April
26, 2023, by the following vote: Yeas 121, Nays 27, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1755 was passed by the Senate on May
12, 2023, by the following vote: Yeas 22, Nays 8.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor