88R2595 KSD-F
By: Alvarado S.B. No. 592
A BILL TO BE ENTITLED
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 once each
calendar quarter, or as needed, to review grant applications and
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. (a) The commission shall establish and administer the
Lone Star Workforce of the Future Fund grant program to provide
grants to eligible public junior colleges, public technical
institutes, and nonprofit organizations that apply to the advisory
board in the manner prescribed by the advisory board. The
commission shall award the grants on the advice and recommendations
of the advisory board.
(b) Grants may be awarded under this chapter from the Lone
Star Workforce of the Future Fund to eligible public junior
colleges, public technical institutes, and nonprofit organizations
with demonstrated success at delivering impactful workforce
training that enables underserved Texans to access careers in high
demand occupations in this state.
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) coordinate and deliver a workforce training
program, through classroom-based or online instruction, work-based
experiences internships, or apprenticeships, or through a
combination of those methods, in at least one of the following high
growth fields, which may be revised by the commission periodically
by rule based on input from the Texas Workforce Investment Council:
(A) accounting and corporate finance;
(B) application development and support;
(C) business fundamentals;
(D) client services and sales support;
(E) consumer banking;
(F) customer service;
(G) cybersecurity;
(H) data analytics;
(I) help desk/desktop support;
(J) investment operations;
(K) life science and bioscience development;
(L) manufacturing;
(M) project management support; or
(N) quality assurance;
(2) demonstrate through third-party validated data
successful outcomes in:
(A) recruiting local unemployed and
underemployed individuals to participate in the training program;
(B) training individuals with the skills needed
to secure full-time, family-sustaining employment in the relevant
job field; and
(C) placing individuals in employment described
by Paragraph (B);
(3) demonstrate the ability to attract at least 40
percent of the necessary funding for training program operation
from revenue streams other than government funding, philanthropy,
and earned revenue; 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 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; and
(E) 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. 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 an entity's training program participants
from low wage work or unemployment to full-time jobs offering a
family-sustaining wage and the opportunity for career mobility, as
determined by the commission, within four months of training
program completion.
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 accomplishments achieved,
lessons learned, or setbacks or risks incurred by the entity in
administering the training program;
(4) an explanation of any 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 curriculum development,
instructor fees and certifications, training materials, and
work-related expenses for training program participants as
determined by commission rule.
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. This Act takes effect September 1, 2023.