88R7170 KSD-D By: Lambert H.B. No. 3900 A BILL TO BE ENTITLED AN ACT relating to the use of money awarded from the skills development fund. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 303.003, Labor Code, is amended by amending Subsection (b) and adding Subsection (b-3) 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, and the Texas A&M Engineering Extension Service [as start-up or emergency funds] for the following job-training purposes: (1) developing and implementing customized training programs for businesses and trade unions; and (2) sponsoring small and medium-sized business networks and consortiums. (b-3) Not more than 25 percent of the amount of a skills development fund grant awarded for a training project may be used for the purchase of any proprietary or production equipment necessary for the training project. SECTION 2. The changes in law made by this Act to Section 303.003, Labor Code, apply only to a skills development fund grant awarded by the Texas Workforce Commission on or after the effective date of this Act. A skills development fund grant awarded before that date is governed by the law in effect on the date the grant was awarded, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2023.