H.B. No. 1755
 
 
 
 
AN ACT
  relating to the creation of the Lone Star Workforce of the Future
  Fund.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle G, Title 3, Education Code, is amended
  by adding Chapter 134A to read as follows:
  CHAPTER 134A. LONE STAR WORKFORCE OF THE FUTURE FUND
         Sec. 134A.001.  DEFINITIONS. In this chapter:
               (1)  "Commission" means the Texas Workforce
  Commission.
               (2)  "Public junior college" and "public technical
  institute" have the meanings assigned by Section 61.003.
         Sec. 134A.002.  PURPOSE. The purpose of this chapter is to:
               (1)  create and sustain a utilization-driven supply of
  qualified workers for entry-level to mid-level jobs in high demand
  occupations in this state;
               (2)  address and close the gap between the skills
  needed by workers and the current skills of the available workforce
  in this state; 
               (3)  increase the interest of current and future Texans
  to fill the available and emerging jobs in this state that require
  less education than a bachelor's degree but more than a high school
  diploma; and
               (4)  strengthen the state's economy by increasing the
  competitiveness of businesses in this state and the recruitment of
  businesses to this state.
         Sec. 134A.003.  LONE STAR WORKFORCE OF THE FUTURE FUND. (a)
  The commission shall establish and administer the Lone Star
  Workforce of the Future Fund as a dedicated account in the general
  revenue fund.
         (b)  The following amounts shall be deposited in the fund:
               (1)  any money appropriated by the legislature for the
  fund for purposes of this chapter;
               (2)  interest earned on the investment of money in the
  fund; and
               (3)  gifts, grants, and donations received for the
  fund.
         Sec. 134A.004.  ADVISORY BOARD.  (a)  An advisory board of
  education and workforce stakeholders is created to assist the
  commission in administering this chapter.
         (b)  The advisory board is composed of six members who serve
  two-year terms and are appointed as follows:
               (1)  one member appointed by the governor;
               (2)  one member appointed by the lieutenant governor;
               (3)  one member appointed by the speaker of the house of
  representatives;
               (4)  one member appointed by the Texas Higher Education
  Coordinating Board;
               (5)  one member appointed by the commission; and
               (6)  the chair of the commission, who serves as the
  presiding officer.
         (c)  The advisory board shall meet at least twice each
  calendar year, or as needed, to make recommendations on awarding
  grants under this chapter.
         Sec. 134A.005.  FUND USE. Money in the Lone Star Workforce
  of the Future Fund may be used by the commission only to:
               (1)  award grants as provided by this chapter; and
               (2)  conduct, with a consortium of corporate partners
  identified by the commission as having available entry-level
  workforce demand, due diligence assessment reviews of entities
  receiving grants under this chapter.
         Sec. 134A.006.  LONE STAR WORKFORCE OF THE FUTURE FUND GRANT
  PROGRAM.  The commission shall establish and administer the Lone
  Star Workforce of the Future Fund grant program to provide grants to
  public junior colleges, public technical institutes, and nonprofit
  organizations that apply to the commission in the manner prescribed
  by the commission and satisfy the eligibility criteria prescribed
  by Section 134A.007.  The commission shall award the grants on the
  advice and recommendations of the advisory board.
         Sec. 134A.007.  GRANT ELIGIBILITY. To be eligible to
  receive a grant under this chapter, a public junior college, public
  technical institute, or nonprofit organization must:
               (1)  administer one or more performance-based
  workforce training programs that:
                     (A)  lead to skill development and experiences
  required for employment in high demand occupations in at least one
  career field identified and listed as a high-growth career field
  by:
                           (i)  the commission;
                           (ii)  the Texas Workforce Investment
  Council; or
                           (iii)  the Tri-Agency Workforce Initiative
  established under Chapter 2308A, Government Code;
                     (B)  are developed and provided based on
  consultation with and input from employers who are hiring in high
  demand occupations;
                     (C)  create pathways to employment for program
  participants; and
                     (D)  are delivered through classroom-based or
  online instruction, work-based experiences internships, or
  apprenticeships, or through a combination of those methods;
               (2)  demonstrate through third-party validated data
  successful outcomes in:
                     (A)  recruiting local unemployed and
  underemployed individuals to participate in the training program or
  programs;
                     (B)  training individuals with the skills needed
  to secure full-time employment paying at least a self-sufficient
  wage as determined under Section 2308A.012, Government Code, in the
  relevant job field; and
                     (C)  placing individuals in employment in high
  demand occupations;
               (3)  demonstrate the ability to attract at least 40
  percent of the necessary funding for training program operation
  from revenue streams other than state government funding; and
               (4)  agree to:
                     (A)  collaborate with the commission, corporate
  partners, and nonprofit educational partners to determine the
  training programs to be provided using grant money;
                     (B)  secure support from local businesses to
  ensure alignment between training program offerings and in-demand
  skills;
                     (C)  collaborate with regional employers, public
  junior colleges, public technical institutes, or nonprofit
  organizations to make available developmental work-based
  experiences to further enhance training program participants'
  career readiness;
                     (D)  engage local entities and organizations,
  including local workforce development boards and community-based
  organizations, to assist with identifying and recruiting eligible
  training program participants;
                     (E)  provide documentation to the commission
  describing training program offerings, including information
  necessary to verify that the offerings will:
                           (i)  provide training that is not exclusive
  to a single corporate partner; and
                           (ii)  lead to knowledge, skills, and
  work-based experiences that are transferable to similar employment
  opportunities in high demand occupations offered by other
  employers; and
                     (F)  comply with any additional grant conditions
  prescribed by commission rule, including performance benchmarks
  established under Section 134A.008 and reporting requirements
  established under Section 134A.009.
         Sec. 134A.008.  PERFORMANCE BENCHMARKS. (a)  The commission
  by rule shall establish performance benchmarks for entities
  receiving grants under this chapter. The benchmarks must include a
  requirement that an entity facilitate the successful transition of
  at least 50 percent of the entity's training program participants
  from low wage work or unemployment to full-time jobs offering a
  self-sufficient wage as determined under Section 2308A.012,
  Government Code, and the opportunity for career mobility, as
  determined by the commission, within six months of training program
  completion.
         (b)  The commission by rule shall require reimbursement on a
  pro rata basis by an entity that does not meet a performance
  benchmark required by this section.
         (c)  An entity is not required to comply with a performance
  benchmark required by this section if the entity's compliance is
  not possible because of an act of God, force majeure, or a similar
  cause not reasonably within the entity's control.
         Sec. 134A.009.  REPORTING REQUIREMENTS.  The commission by
  rule shall require each entity receiving a grant under this chapter
  to submit progress reports to the commission at least twice
  annually. Each progress report must include the following
  information relating to a training program funded by the grant:
               (1)  the number of participants;
               (2)  an update on progress toward performance
  benchmarks;
               (3)  a description of any key accomplishments achieved,
  lessons learned, or setbacks or risks incurred by the entity in
  administering the training program;
               (4)  an explanation of any material changes to the
  training program's work plan, team, or budget; and
               (5)  the amount of grant money spent by the entity
  during the reporting period.
         Sec. 134A.010.  GRANT AMOUNT. The amount of a grant awarded
  to an entity under this chapter for a training program may not
  exceed $15,000 per training program participant.
         Sec. 134A.011.  GRANT USE. An entity may use grant money
  received under this chapter only for:
               (1)  curriculum development;
 
               (2)  instructor fees and certifications;
               (3)  training materials;
               (4)  work-related expenses;
               (5)  work-based experience stipends;
               (6)  related wraparound services important to help
  ensure success for training program participants as determined by
  commission rule; and
               (7)  administrative costs as determined by commission
  rule, except that the amount used by an entity for that purpose may
  not exceed 10 percent of the total amount of grant money received by
  the entity.
         Sec. 134A.012.  RULES.  The commission shall adopt rules as
  necessary to administer this chapter.
         SECTION 2.  The Texas Workforce Commission shall adopt rules
  for the administration of Chapter 134A, Education Code, as added by
  this Act, as soon as practicable following the effective date of
  this Act but not later than December 1, 2023.
         SECTION 3.  (a)  Notwithstanding any other provision of this
  Act, in a state fiscal year, the Texas Workforce Commission is not
  required to implement a provision found in another provision of
  this Act that is a mandatory provision imposing a duty on the
  commission to take an action unless money is specifically
  appropriated to the commission for that fiscal year to carry out
  that duty.  The Texas Workforce Commission may implement the
  provision in that fiscal year to the extent other funding is
  available to the commission to do so.
         (b)  If, as authorized by Subsection (a) of this section, the
  Texas Workforce Commission does not implement a mandatory provision
  in a state fiscal year, the commission, in its legislative
  appropriations request for the next state fiscal biennium, shall
  certify that fact to the Legislative Budget Board and include a
  written estimate of the cost of implementing the provision in each
  year of that next state fiscal biennium.
         (c)  This section expires and any duty suspended by
  Subsection (a) of this section becomes mandatory on September 1,
  2027.
         SECTION 4.  This Act takes effect September 1, 2023.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1755 was passed by the House on April
  26, 2023, by the following vote:  Yeas 121, Nays 27, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1755 was passed by the Senate on May
  12, 2023, by the following vote:  Yeas 22, Nays 8.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor