LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 86TH LEGISLATIVE REGULAR SESSION
 
March 29, 2019

TO:
Honorable Rafael Anchia, Chair, House Committee on International Relations & Economic Development
 
FROM:
John McGeady, Assistant Director     Sarah Keyton, Assistant Director
Legislative Budget Board
 
IN RE:
HB2416 by Frullo (Relating to the administration by the Texas Workforce Commission of a workforce diploma pilot program.), As Introduced

The fiscal implications of the bill cannot be determined at this time due to the uncertainty of the number of participating providers.

The bill would amend the Labor Code relating to the administration by the Texas Workforce Commission (TWC) of a workforce diploma pilot program. Under the provisions of the bill, TWC, in consultation with the Texas Education Agency, would be required to establish and administer a workforce diploma pilot program to reimburse eligible providers for assisting adult students in obtaining a high school diploma and developing technical career readiness skills and employability. The bill states that TWC is required to reimburse each eligible participating provider for certain achievement milestones by students, to the extent money is available for the program. The bill requires that TWC establish rules to determine eligibility guidelines for providers and minimum performance standards that must be met in order for providers to continue participating in the program.
 
The fiscal implications of the bill cannot be determined at this time due to the uncertainty of the number of participating providers. The potential costs and reimbursements awarded would be dependent on the adoption of TWC rules relating to provider eligibility, reimbursement, and provider performance review requirements. In addition, the agency by rule would be required to define terms, such as regional accrediting body, credit and half credit, employability skills, graduation rate, and diplomas and industry-recognized credentials, which would ultimately impact the number of eligible providers and reimbursements provided.

The pilot program would expire September 1, 2025.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
320 Texas Workforce Commission, 701 Texas Education Agency
LBB Staff:
WP, CLo, SGr, CP