BILL ANALYSIS

H.B. 2545

By: Gerdes

Trade, Workforce & Economic Development

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that rural communities across Texas are losing their populations to urban and suburban areas due to lack of opportunity, education, and competitive wages available locally. As a result, many of the individuals who remain in rural communities live below the poverty level, or are retired. H.B. 2545 seeks to revitalize these communities and create access to opportunities in rural communities by creating a rural workforce training grant program to provide job training, apprenticeships, and workforce education courses in certain counties.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Texas Workforce Commission in SECTION 1 of this bill.

ANALYSIS

H.B. 2545 amends the Labor Code to require the Texas Workforce Commission (TWC) to establish and administer the rural workforce training grant program for the purpose of providing targeted funding for job-specific workforce training and related services to strengthen the skills, resources, and career opportunities of the rural workforce in Texas. The bill requires TWC, under the program, to award grants to public, private, or nonprofit entities, including business associations, political subdivisions, local workforce development boards, and educational institutions, that do the following:

· provide on-the-job training, apprenticeships, workforce education courses, and other job-specific workforce development activities in a county with a population of less than 200,000; and

· apply to TWC in the manner provided by TWC rule.

H.B. 2545 restricts the use of grant money awarded to an entity under the program to covering costs associated with training materials, instructors' fees, participant wraparound expenses, facility fees, administrative costs, and outreach, mentoring, and recruiting costs for the training, apprenticeship, course, or other activity for which the money is awarded. The bill requires TWC to require a grant recipient to provide periodic reports regarding the recipient's use of grant money received under the program and related training participant outcomes. The bill authorizes TWC to solicit and accept gifts, grants, and donations from any public or private source for purposes of the program.

H.B. 2545 requires TWC to adopt rules for the administration of the program as soon as practicable after the bill's effective date and to submit, not later than December 1 of each year, to the governor, lieutenant governor, speaker of the house of representatives, and the standing committee of each house of the legislature with primary jurisdiction over workforce development matters a report regarding the grants awarded under the program during the most recent state fiscal year and regarding the program's effectiveness.

EFFECTIVE DATE

September 1, 2025.