By: Blanco S.B. No. 1143

(In the Senate - Filed February 6, 2025; February 24, 2025, read first time and referred to Committee on Economic Development; April 16, 2025, reported adversely, with favorable Committee Substitute by the following vote: Yeas 5, Nays 0; April 16, 2025, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 1143 By: Sparks

A BILL TO BE ENTITLED

AN ACT

relating to certain planning, notification, and evaluation requirements with respect to certain workforce development programs in this state.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2308.304, Government Code, is amended by adding Subsection (c-1) to read as follows:

(c-1) In establishing goals, objectives, and performance measures for segments of the population under Subsection (c), the plan must establish specific goals, objectives, and performance measures for individuals who are at least 14 years of age but younger than 25 years of age.

SECTION 2. Chapter 2308, Government Code, is amended by adding Subchapter H to read as follows:

SUBCHAPTER H. DUTIES OF GOVERNMENTAL ENTITIES TO LOCAL WORKFORCE

DEVELOPMENT BOARDS AND DIVISION

Sec. 2308.351. NOTICE OF FINANCIAL INCENTIVE. (a) In this section:

(1) "Commission" means the Texas Workforce Commission.

(2) "Financial incentive" means a financial benefit, including a grant, loan, or tax preference, or a combination of those benefits, offered by a governmental entity to any person.

(3) "Governmental entity" means a state agency or political subdivision of this state, including a municipality or county.

(b) A governmental entity that provides a financial incentive that results in the creation of at least 100 estimated new employment opportunities shall, not later than the 30th day after the date the governmental entity approves the financial incentive, notify the commission and any local workforce development board operating in a workforce development area where the financial incentive is distributed of the plan to distribute the financial incentive.

(c) The notice required by Subsection (b) must include:

(1) the estimated number of new employment opportunities the financial incentive will create;

(2) the estimated start date for each new employment opportunity created by the financial incentive; and

(3) a description of the skills and training necessary for applicants for each new employment opportunity created by the financial incentive.

SECTION 3. Subchapter E, Chapter 302, Labor Code, is amended by adding Section 302.087 to read as follows:

Sec. 302.087. EVALUATION OF WORKFORCE DEVELOPMENT ACTIVITIES. (a) In this section, "federally funded youth program" means a youth workforce development program funded under Title I of the Workforce Innovation and Opportunity Act (29 U.S.C. Section 3101 et seq.).

(b) The commission shall annually evaluate:

(1) the effectiveness of the commission's federally funded youth programs; and

(2) the best practices for local workforce development boards to:

(A) meet the current and projected workforce needs of employers in workforce development areas; and

(B) provide workforce development services to individuals who are at least 14 years of age but younger than 25 years of age.

(c) The evaluation under Subsection (b) must include:

(1) a calculation of the total percentage of workforce funds spent annually through the commission's federally funded youth programs on efforts to:

(A) increase employment among individuals who are at least 14 years of age but younger than 25 years of age;

(B) reenroll individuals who have dropped out of a public or open-enrollment charter school and who are at least 14 years of age but younger than 25 years of age; and

(C) facilitate the participation of individuals who are at least 14 years of age but younger than 25 years of age in postsecondary education, technical education, or the military;

(2) the respective numbers of individuals who are at least 14 years of age but younger than 25 years of age who:

(A) have dropped out of a public or open-enrollment charter school and are assisted in reenrollment with workforce funds; and

(B) receive assistance in participating in postsecondary education, technical education, or the military;

(3) for each local workforce development area:

(A) the respective numbers of individuals who are at least 14 years of age but younger than 25 years of age who:

(i) are eligible for workforce development services; and

(ii) annually receive workforce development services, including the number receiving assistance in enrolling in high school, a high school equivalency program, an apprenticeship program, an institution of higher education, a technical school, or the military; and

(B) the total number of workforce development service providers actively serving individuals who are at least 14 years of age but younger than 25 years of age in the area through the commission's federally funded youth programs;

(4) for each local workforce development board, an assessment of the board's current use of workforce funds to determine and meet the current and projected workforce needs of employers in the workforce development area;

(5) examples of efforts to reach individuals who are at least 14 years of age but younger than 25 years of age in which the commission and local workforce development boards coordinated with each of the following respective entities:

(A) the Texas Education Agency, school districts, or open-enrollment charter schools;

(B) the Texas Higher Education Coordinating Board or institutions of higher education; and

(C) the Department of Family and Protective Services; and

(6) examples of efforts to meet current and projected workforce needs in which the commission and local workforce development boards coordinated with each of the following respective entities:

(A) private employers or other members of the business community; and

(B) workforce development service providers.

(d) The commission shall make the evaluation conducted under Subsection (b), any information collected in the course of conducting the evaluation, and any findings of the commission arising from the evaluation readily available to local workforce development boards, employers, institutions of higher education, school districts, open-enrollment charter schools, and the public.

(e) Not later than January 15 of each odd-numbered year, the commission shall make a report to the legislature detailing the commission's findings on the effectiveness of the commission's federally funded youth programs. The report must include:

(1) the information described by Subsection (c);

(2) employment outcome information for individuals who are at least 14 years of age but younger than 25 years of age, disaggregated by local workforce development area;

(3) an analysis of multiyear trends identifiable from the information contained in the evaluation conducted under Subsection (b), including any identifiable trends that show positive impacts of the commission's federally funded youth programs on workforce participation of individuals who are at least 14 years of age but younger than 25 years of age; and

(4) the commission's recommendation for legislative or regulatory action, including recommendations for regulatory action by other governmental entities.

SECTION 4. This Act takes effect September 1, 2025.

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