Austin, Texas
May 14, 2019

Honorable Brian Birdwell, Chair, Senate Committee on Natural Resources & Economic Development
John McGeady, Assistant Director     Sarah Keyton, Assistant Director
Legislative Budget Board
SB1576 by Alvarado (Relating to the creation of the Texas Industrial Workforce Apprenticeship Grant Program.), As Introduced

The cost to the bill cannot be determined, as the number and amount of grants are unknown.

Although this bill would not make an appropriation, it would establish the basis for an appropriation.

The bill would amend the Government Code to establish the Texas Industrial Workforce Apprenticeship Grant Program to provide grants to reimburse apprenticeship program participants for the cost of training. Additionally, the bill would create the Texas Industrial Workforce Apprenticeship Fund as a dedicated account in the General Revenue Fund. The account would consist of amounts appropriated by the Legislature, interest earned, and gifts, grants, and donations. Amounts in the account could be used only to make grants under the new Texas Industrial Workforce Apprenticeship Grant Program.

The Office of the Governor has indicated that there would be administrative costs associated with the establishment of the grant program. This analysis assumes that these cost are absorbable.

The bill would have no revenue implications. As the amount and timing of any appropriations to the new Texas Industrial Workforce Apprenticeship Fund is at the discretion of the Legislature, there is no fiscal impact due to the establishment of this new fund.

This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside of the Treasury, or create a dedicated revenue source. Legislative policy, implemented as Government Code 403.095, consolidated special funds (except those affected by constitutional, federal, or other restrictions) into the General Revenue Fund as of August 31, 1993 and eliminated all applicable statutory revenue dedications as of August 31, 1995. Each subsequent Legislature has reviewed bills that affect funds consolidation. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:
300 Trusteed Programs Within the Office of the Governor, 304 Comptroller of Public Accounts, 320 Texas Workforce Commission
LBB Staff:
WP, SZ, NV, JSm, CLo