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BILL ANALYSIS

 

 

Senate Research Center

S.B. 634

 

By: Estes

 

Natural Resources & Economic Development

 

6/6/2017

 

Enrolled

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

The Skills Development Fund is a grant program administered by the Texas Workforce Commission (TWC). It funds job training programs performed by public community or technical colleges to fill specific workforce training needs. Programs are initiated through application to TWC by a company or consortium in partnership with the Texas A&M Engineering Extension Service or a public community or technical college.

 

Under current law, Skills Development Fund recipients are required to conduct a biennial program review and issue a report to TWC on their use of grant funds received. The report requires recipient entities to detail the effectiveness of "the program in improving the wages of participants" and "identify strategies�to more effectively impact economic development." Reporting entities results are utilized by TWC in formulation of its statutorily required report to the governor and legislature.

 

Despite a statutory requirement that all receiving entities furnish such a report, some have failed to do so. To better ensure compliance with the reporting requirement, S.B. 634 requires that an entity not in compliance return unexpended grant funds and renders it ineligible for subsequent funding until the required report is furnished.

 

S.B. 634 amends current law relating to reporting requirements for certain skills development fund workforce training program providers.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends the heading to Section 303.004, Labor Code, to read as follows:

 

Sec. 303.004. FUND REVIEW; REPORT BY CERTAIN WORKFORCE TRAINING PROVIDERS REQUIRED.

 

SECTION 2. Amends Section 303.004, Labor Code, by adding Subsection (c), as follows:

 

(c) Provides that, if the Texas A&M Engineering Extension Service (service) or a public community or technical college (college) fails to submit a report required by Subsection (b)(2) (relating to requiring the service or a college to submit a detailed written report summarizing the results of the review for inclusion by the executive director of the Texas Workforce Commission (TWC) to certain persons not later than a certain date):

 

(1) the service or college is required to refund to the Texas comptroller of public accounts any unexpended state funds received by the service or college under this chapter (Skills Development Fund) for the state fiscal biennium in which the report was due; and

 

(2) TWC is prohibited from awarding any additional grant to the service or college under this chapter until the service or college has complied with that reporting requirement.���

 

SECTION 3. Provides that Section 303.004(c), Labor Code, as added by this Act, applies beginning with reports due under Section 303.004(b)(2), Labor Code, not later than October 1, 2018.

 

SECTION 4. Effective date: September 1, 2017.