87R13436 SGM-F
	By: Raney, Guillen	H.B. No. 3186
	Substitute the following for H.B. No. 3186:
	By:  Muñoz, Jr.	C.S.H.B. No. 3186

	A BILL TO BE ENTITLED
	AN ACT
	relating to the participation in and reimbursement from the skills
	development fund of certain entities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 303.001(a), Labor Code, is amended to
	read as follows:
	(a)  The purpose of this chapter is to remove administrative
	barriers that impede the response of public community and technical
	colleges, community-based organizations, local workforce
	development boards, the Texas A&M Engineering Experiment Station,
	and the Texas A&M Engineering Extension Service to industry and
	workforce training needs and to develop incentives for public
	community and technical colleges, community-based organizations,
	local workforce development boards, the Texas A&M Engineering
	Experiment Station, and the Texas A&M Engineering Extension Service
	to provide customized assessment and training in a timely and
	efficient manner.
	SECTION 2.  Section 303.002(b), Labor Code, is amended to
	read as follows:
	(b)  A public community or technical college, the Texas A&M
	Engineering Experiment Station, or the Texas A&M Engineering
	Extension Service may recover customized assessment and training
	costs incurred by the college, station, or service [institution]
	if:
	(1)  there is an actual or projected labor shortage in
	the occupation in which training is provided that is not being met
	by an existing institution or program in the area; and
	(2)  the wages at the time of job placement for
	individuals who successfully complete customized training at the
	public community or technical college, the Texas A&M Engineering
	Experiment Station, or the Texas A&M Engineering Extension Service
	are equal to the prevailing wage for that occupation in the local
	labor market area.
	SECTION 3.  Section 303.003, Labor Code, is amended by
	amending Subsections (b), (f), (g), and (h) and adding Subsection
	(d-1) 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, the Texas A&M Engineering
	Experiment Station, and the Texas A&M Engineering Extension Service
	as start-up or emergency funds for the following job-training
	purposes:
	(1)  developing customized training programs for
	businesses and trade unions; and
	(2)  sponsoring small and medium-sized business
	networks and consortiums.
	(d-1)  The commission by rule shall adopt a procedure under
	which an employer may seek and obtain direct reimbursement from the
	skills development fund for costs incurred by the employer in
	relation to customized training or certification completed by the
	employer's employees under a grant agreement authorized under this
	chapter.
	(f)  The Texas A&M Engineering Experiment Station and the
	Texas A&M Engineering Extension Service shall focus the station's
	or service's training activities under this chapter on programs
	that:
	(1)  are statewide in nature; or
	(2)  are not available from a local junior college
	district, a local technical college, or a consortium of junior
	college districts.
	(g)  This section does not prohibit the Texas A&M Engineering
	Experiment Station or the Texas A&M Engineering Extension Service
	from participating in a consortium of junior college districts or
	with a technical college that provides training under this chapter.
	(h)  A community-based organization may apply for money to
	participate in a training program only in partnership with a
	community and technical college, the Texas A&M Engineering
	Experiment Station, or the Texas A&M Engineering Extension Service.
	A community-based organization providing services regulated by the
	state shall provide evidence of any certification, license, or
	registration required by law.
	SECTION 4.  Section 303.004, Labor Code, is amended to read
	as follows:
	Sec. 303.004.  FUND REVIEW; REPORT BY CERTAIN WORKFORCE
	TRAINING PROVIDERS REQUIRED. (a) The Texas Higher Education
	Coordinating Board shall review all customized training programs
	biennially to verify that state funds are being used appropriately
	by public community and technical colleges, the Texas A&M
	Engineering Experiment Station, and the Texas A&M Engineering
	Extension Service under this chapter.
	(b)  Not later than October 1 of each even-numbered year, the
	Texas A&M Engineering Experiment Station, the Texas A&M Engineering
	Extension Service, and each public community or technical college
	that provides workforce training under this chapter shall:
	(1)  conduct a review of the station's, service's, or
	college's training programs to:
	(A)  determine the effectiveness of the programs
	in improving the wages of participants who complete the programs;
	and
	(B)  identify strategies for improving the
	delivery of workforce training in order to more effectively impact
	economic development in this state; and
	(2)  submit to the commission a detailed written report
	summarizing the results of the review for inclusion by the
	executive director in the report to the governor and the
	legislature required by Section 303.006(c).
	(c)  If the Texas A&M Engineering Experiment Station, the
	Texas A&M Engineering Extension Service, or a public community or
	technical college fails to submit a report required by Subsection
	(b)(2):
	(1)  the station, service, or college must refund to
	the comptroller any unexpended state funds received by the station,
	service, or college under this chapter for the state fiscal
	biennium in which the report was due; and
	(2)  the commission may not award any additional grant
	to the station, service, or college under this chapter until the
	station, service, or college has complied with that reporting
	requirement.
	SECTION 5.  This Act takes effect September 1, 2021.