BILL ANALYSIS

Senate Research Center	S.B. 2603
89R15046 SCR-D	By: Blanco
	Economic Development
	5/2/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Texas businesses need skilled workers to remain competitive, innovative, and thriving. In 2024, there were 774,000 job openings and nearly 623,000 unemployed workers, with a labor force participation rate of 64.2 percent. [1] Connecting qualified workers with good paying jobs has been a top priority for the state. Texas taken steps to develop a large and qualified talent pool for employers, making considerable progress in workforce development, with 175,413 Texans in workforce services and 106,467 enrolled in workforce development programs. [2] However, challenges remain in matching qualified candidates with available jobs.

S.B. 2603 aims to create an employment pipeline by connecting workers with local job opportunities. The bill requires employers that participate in a county or municipal economic development program to consult local workforce development boards when hiring for positions. Employers must review whether any participants in the board's career development center qualify for those roles and would be required to give them additional consideration in the hiring process. Additional consideration must also be given to applicants receiving state or federal public assistance, such as TANF or unemployment insurance benefits.

S.B. 2603 would improve job placement outcomes for workforce development participants and promote local hiring by employers, helping communities contribute to our growing economy.

[1] Cates, L., & Melhorn, S. F. (2025, February 11). Understanding America's labor shortage: The most impacted states. U.S. Chamber of Commerce. https://www.uschamber.com/workforce/the-states-suffering-most-from-the-labor shortage?state=tx

[2] TWC Internal Data

As proposed, S.B. 2603 amends current law relating to cooperation by economic development program participants with local workforce development boards.

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 Subtitle C, Title 12, Local Government Code, by adding Chapter 399A, as follows:

CHAPTER 399A. MISCELLANEOUS PROVISIONS RELATING TO PLANNING AND DEVELOPMENT OF MORE THAN ONE TYPE OF LOCAL GOVERNMENT

Sec. 399A.001. COOPERATION WITH LOCAL WORKFORCE DEVELOPMENT BOARDS. (a) Requires an employer who is participating in an economic development program administered by a county or municipality and is hiring one or more employees to fill vacancies in the employer's open positions to contact the local workforce development board established under Chapter 2308 (Workforce Investment Act), Government Code, for the employer's workforce development area to determine whether any participants in a career development center established by the board under Section 2308.312 (Career Development Centers), Government Code, are qualified to fill the vacancies and consider those qualified participants when filling the vacancies.

(b) Requires an employer to give additional consideration when filling vacancies under this section to an applicant for employment who receives state or federal public assistance, including unemployment insurance benefit payments and assistance under Chapter 31 (Financial Assistance and Service Programs), Human Resources Code.

SECTION 2. Effective date: September 1, 2025.