LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 7, 2025 TO: Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3799 by Orr (Relating to the establishment of the Apprenticeship Training Program Sponsorship Fund.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3799, As Introduced: a negative impact of ($292,365) through the biennium ending August 31, 2027. The grant amount cannot be determined at this time. It is assumed that any additional funding associated with the grant amount would be determined by the Legislature. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026$02027($292,365)2028($269,010)2029($269,010)2030($269,010)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromNew General Revenue Dedicated - Apprenticeship Training Program Sponsorship Fund Change in Number of State Employees from FY 20252026$0$00.02027($292,365)($292,365)2.52028($269,010)($269,010)2.52029($269,010)($269,010)2.52030($269,010)($269,010)2.5 Fiscal AnalysisThis bill would add Chapter 133A to the Education Code, establishing the Apprenticeship Training Program Sponsorship Fund to be administered by the Texas Workforce Commission (TWC). The fund will provide one-time grants to eligible entities to support sponsors for apprenticeship training programs.The bill would create the Apprenticeship Training Program Sponsorship Fund in the General Revenue Fund. The account would consist of legislative appropriations; interest earned; and gifts, grants, and donations. Funds in the account could be used only to award grants to pay expenses related to managing and administering an apprenticeship training program as a sponsor for the program.The bill would create an advisory board of education and workforce development stakeholders to assist TWC in administering the chapter. Additionally, the bill would require a report identifying grants awarded under the program and their effectiveness be submitted by October 1 of each even-numbered year to each standing committee of the legislature with primary jurisdiction over higher education or workforce development.The bill would take effect on September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 7, 2025
TO: Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3799 by Orr (Relating to the establishment of the Apprenticeship Training Program Sponsorship Fund.), As Introduced
TO: Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3799 by Orr (Relating to the establishment of the Apprenticeship Training Program Sponsorship Fund.), As Introduced
Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development
Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB3799 by Orr (Relating to the establishment of the Apprenticeship Training Program Sponsorship Fund.), As Introduced
HB3799 by Orr (Relating to the establishment of the Apprenticeship Training Program Sponsorship Fund.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3799, As Introduced: a negative impact of ($292,365) through the biennium ending August 31, 2027. The grant amount cannot be determined at this time. It is assumed that any additional funding associated with the grant amount would be determined by the Legislature. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3799, As Introduced: a negative impact of ($292,365) through the biennium ending August 31, 2027. The grant amount cannot be determined at this time. It is assumed that any additional funding associated with the grant amount would be determined by the Legislature. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 $0
2027 ($292,365)
2028 ($269,010)
2029 ($269,010)
2030 ($269,010)
All Funds, Five-Year Impact:
2026 $0 $0 0.0
2027 ($292,365) ($292,365) 2.5
2028 ($269,010) ($269,010) 2.5
2029 ($269,010) ($269,010) 2.5
2030 ($269,010) ($269,010) 2.5
Fiscal Analysis
This bill would add Chapter 133A to the Education Code, establishing the Apprenticeship Training Program Sponsorship Fund to be administered by the Texas Workforce Commission (TWC). The fund will provide one-time grants to eligible entities to support sponsors for apprenticeship training programs.The bill would create the Apprenticeship Training Program Sponsorship Fund in the General Revenue Fund. The account would consist of legislative appropriations; interest earned; and gifts, grants, and donations. Funds in the account could be used only to award grants to pay expenses related to managing and administering an apprenticeship training program as a sponsor for the program.The bill would create an advisory board of education and workforce development stakeholders to assist TWC in administering the chapter. Additionally, the bill would require a report identifying grants awarded under the program and their effectiveness be submitted by October 1 of each even-numbered year to each standing committee of the legislature with primary jurisdiction over higher education or workforce development.The bill would take effect on September 1, 2025.
The bill would create an advisory board of education and workforce development stakeholders to assist TWC in administering the chapter. Additionally, the bill would require a report identifying grants awarded under the program and their effectiveness be submitted by October 1 of each even-numbered year to each standing committee of the legislature with primary jurisdiction over higher education or workforce development.
Methodology
The number of grants provided and the award amounts would be subject to Legislative appropriation discretion. As the amount the Legislature would appropriate in funding for this purpose is unknown, this component of the fiscal impact cannot be determined. If funding is appropriated then the TWC would need staffing resources to develop and implement a grant application procedure and establish and administer the program. Based on information provided by the TWC, if the Legislature were to appropriate General Revenue funding for this program to provide grants, the agency would require an additional 2.0 Grant Specialist III positions ($70,662 each year with $20,082 in benefits per position) and a 0.5 Program Specialist V ($35,331 each year with $10,041 in benefits) for program administration and to provide grant oversight.Based on the analysis of the THECB, this estimate assumes no significant fiscal impact to the state for the agency to implement the bill's provision. Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Based on information provided by the TWC, if the Legislature were to appropriate General Revenue funding for this program to provide grants, the agency would require an additional 2.0 Grant Specialist III positions ($70,662 each year with $20,082 in benefits per position) and a 0.5 Program Specialist V ($35,331 each year with $10,041 in benefits) for program administration and to provide grant oversight.
Based on information provided by the TWC, if the Legislature were to appropriate General Revenue funding for this program to provide grants, the agency would require an additional 2.0 Grant Specialist III positions ($70,662 each year with $20,082 in benefits per position) and a 0.5 Program Specialist V ($35,331 each year with $10,041 in benefits) for program administration and to provide grant oversight.
Based on the analysis of the THECB, this estimate assumes no significant fiscal impact to the state for the agency to implement the bill's provision. Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Based on the analysis of the THECB, this estimate assumes no significant fiscal impact to the state for the agency to implement the bill's provision. Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Technology
TWC anticipates information technology expenditures of $1,920 per year.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 320 Texas Workforce Commission, 781 Higher Education Coordinating Board
304 Comptroller of Public Accounts, 320 Texas Workforce Commission, 781 Higher Education Coordinating Board
LBB Staff: b > td > JMc, RStu, GDZ, JBel
JMc, RStu, GDZ, JBel