Enrolled Bill Summary

Senate Bill 1786 amends the Government Code to require the Texas Education Agency (TEA), the Texas Higher Education Coordinating Board (THECB), and the Texas Workforce Commission (TWC) to coordinate the competitive grant programs for secondary and postsecondary career and technical education programs that are aligned with the state workforce development goals. The bill specifies certain actions that those agencies must take in coordinating the grant programs.

Senate Bill 1786 amends the Labor Code to require TWC to conduct a biennial assessment of available regional labor demands across Texas using the best available state and federal labor market data, as determined by TWC, to allow public institutions of higher education to better align educational programs with workforce needs. Among other provisions relating to that assessment, the bill requires the enhanced wage filings by employers under the Texas Unemployment Compensation Act to include information related to wage, industry, occupational field, full-time and part-time status, county of primary employment, remote work status, and other important employment information necessary to conduct the assessment.

Senate Bill 1786 amends the Education Code to revise the eligibility requirements for a student to enroll at no cost in a dual credit course under the Financial Aid for Swift Transfer (FAST) program by clarifying that the student must be enrolled in a grade level from 9 through 12 and creating as an optional eligibility requirement that the student was educationally disadvantaged at any time during the school year in which the student enrolls in the dual credit course as an alternative to the student being educationally disadvantaged at any time during the four school years preceding the student's enrollment in the course. The bill also specifies that the Windham School District is an applicable school district for program purposes.

Current law specifies the measurable outcomes that are considered for purposes of performance tier funding under the public junior college state finance program, which include the number of students who earn at least 15 semester credit hours or the equivalent at the junior college district and who subsequently transfer to a general academic teaching institution and the number of credentials of value awarded. Effective September 1, 2025, Senate Bill 1786 makes the following changes:

• includes as a component of the transfer student measurable outcome the number of students who earn at least 15 semester credit hours or the equivalent at the junior college district and who subsequently transfer to a private or independent institution of higher education that offers four-year degree programs;
• requires the THECB to designate a credential as a credential of value if the credential provides a positive return on investment for a student who received the credential, as measured in the manner specified by the bill, and allows the student to recoup the net cost of attendance at a public junior college, including opportunity cost; and
• authorizes the THECB to designate a credential in education or health care as a credential of value regardless of whether the credential meets that criteria if the THECB determines the designation is necessary to ensure state workforce needs are met in those fields.

The bill authorizes the THECB's use of emergency rulemaking procedures to adopt rules necessary to align the funding formulas under the public junior college state finance program with appropriations or other legislative action and sets out provisions relating to the THECB's rulemaking authority with respect to student financial assistance. The bill authorizes the THECB to adopt by reference a manual or policy document as a rule.

Except as otherwise provided, Senate Bill 1786 takes effect May 27, 2025.