Bill Text: TX SB856 | 2025-2026 | 89th Legislature | Enrolled

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Bill Title: Relating to the use of the skills development fund by certain entities.

Sponsorship: Partisan Bill (Republican 7)

Status: (Passed) 2025-05-20 - Effective on 9/1/25 [SB856 Detail]

Download: Texas-2025-SB856-Enrolled.html

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S.B. No. 856

AN ACT
relating to the use of the skills development fund by 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. Sections 303.003(b), (f), (g), and (h), Labor
Code, are amended 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.
(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, 2025.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 856 passed the Senate on
April 1, 2025, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 856 passed the House on
May 7, 2025, by the following vote: Yeas 146, Nays 1, two present
not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor