LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 24, 2023 TO: Honorable Angie Chen Button, Chair, House Committee on International Relations & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB865 by Gervin-Hawkins (Relating to the application for funding for certain workforce development programs.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Labor Code to require the Texas Workforce Commission (TWC) to allow nonprofit service providers to apply for funding directly from TWC if a Local Workforce Development Board(s) is not meeting 80 percent of performance standards.According to TWC, enactment of the bill could result in a conformity issue with federal law, which requires the allocation of 85 percent of its Workforce Innovation Opportunities Act (WIOA) Title I funds to Local Workforce Development Boards (Board), based on the specific funding formulas outlined in federal law, to be used by Boards for the operation of the various WIOA programs. Additionally, enactment of the bill would result in a conformity issue with the Labor Code of this state which does not allow for the direct funding application model as proposed in the bill. Based on information provided by TWC, this analysis assumes any duties and responsibilities associated with implementing the provisions of the bill could be accomplished by the agency utilizing existing resources. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 320 Texas Workforce Commission LBB Staff: b > td > JMc, SZ, GDZ, LBl LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 24, 2023 TO: Honorable Angie Chen Button, Chair, House Committee on International Relations & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB865 by Gervin-Hawkins (Relating to the application for funding for certain workforce development programs.), As Introduced TO: Honorable Angie Chen Button, Chair, House Committee on International Relations & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB865 by Gervin-Hawkins (Relating to the application for funding for certain workforce development programs.), As Introduced Honorable Angie Chen Button, Chair, House Committee on International Relations & Economic Development Honorable Angie Chen Button, Chair, House Committee on International Relations & Economic Development Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB865 by Gervin-Hawkins (Relating to the application for funding for certain workforce development programs.), As Introduced HB865 by Gervin-Hawkins (Relating to the application for funding for certain workforce development programs.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend the Labor Code to require the Texas Workforce Commission (TWC) to allow nonprofit service providers to apply for funding directly from TWC if a Local Workforce Development Board(s) is not meeting 80 percent of performance standards.According to TWC, enactment of the bill could result in a conformity issue with federal law, which requires the allocation of 85 percent of its Workforce Innovation Opportunities Act (WIOA) Title I funds to Local Workforce Development Boards (Board), based on the specific funding formulas outlined in federal law, to be used by Boards for the operation of the various WIOA programs. Additionally, enactment of the bill would result in a conformity issue with the Labor Code of this state which does not allow for the direct funding application model as proposed in the bill. Based on information provided by TWC, this analysis assumes any duties and responsibilities associated with implementing the provisions of the bill could be accomplished by the agency utilizing existing resources. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 320 Texas Workforce Commission 320 Texas Workforce Commission LBB Staff: b > td > JMc, SZ, GDZ, LBl JMc, SZ, GDZ, LBl