By: Sparks S.B. No. 2448

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of the Rural Workforce Development Grant Program.

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

SECTION 1. Chapter 302, Labor Code, is amended by adding Subchapter J to read as follows:

SUBCHAPTER J. RURAL WORKFORCE DEVELOPMENT GRANT PROGRAM

Sec. 302.301. DEFINITIONS. In this subchapter:

(1) "Institution of higher education" has the meaning assigned by Section 61.003, Education Code.

(2) "Nonprofit organization" means an organization exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, as an organization described by Section 501(c)(3) of that code.

(3) "Program" means the Rural Workforce Development Grant Program established under this subchapter.

Sec. 302.302. PROGRAM ESTABLISHMENT AND ADMINISTRATION. The commission, in consultation with the Texas Education Agency and the Texas Higher Education Coordinating Board, shall establish and administer the Rural Workforce Development Grant Program under which the commission may award grants to one or more nonprofit organizations to provide technical assistance and support to institutions of higher education and school districts located in rural areas of the state in aligning and delivering workforce training and higher education programs to address skills gaps to meet urgent workforce demands of rural areas.

Sec. 302.303. GRANT ELIGIBILITY. To be eligible for a grant under the program, a nonprofit organization must:

(1) apply to the commission in the manner prescribed by commission rule;

(2) demonstrate experience in effectively providing technical assistance and support to institutions of higher education or school districts located in a rural area of this state in aligning and delivering workforce training and higher education programs to address skills gaps to meet the area's urgent workforce demands; and

(3) satisfy any other relevant criteria prescribed by commission rule.

Sec. 302.304. GRANT REQUIREMENTS. (a) The commission may award a grant to an eligible nonprofit organization under the program only if the organization enters into a contract with the commission that includes conditions providing the commission with sufficient control to ensure the public purpose of improving rural workforce development is accomplished and the state receives a return benefit.

(b) Grant money awarded to an eligible nonprofit organization under the program may be used by the organization only for costs associated with providing technical assistance and support to an institution of higher education or school district located in a rural area of this state in aligning and delivering workforce training and higher education programs to address skills gaps to meet the area's urgent workforce demands.

Sec. 302.305. FUNDING. In addition to any money appropriated for the program, the commission may solicit and accept gifts, grants, and donations from any public or private source for the program.

Sec. 302.306. RULES; REVIEW. The commission shall:

(1) adopt rules for the administration of this subchapter; and

(2) periodically verify that grant money awarded to a nonprofit organization under the program is being used appropriately.

Sec. 302.307. ANNUAL REPORT. Not later than December 1 of each year, the commission shall submit to the governor, the lieutenant governor, the speaker of the house of representatives, and each standing committee of the legislature with primary jurisdiction over workforce development a report regarding:

(1) any grants awarded under the program during the most recent state fiscal year; and

(2) the program's effectiveness.

SECTION 2. The Texas Workforce Commission shall adopt the rules required under Subchapter J, Chapter 302, Labor Code, as added by this Act, as soon as practicable after the effective date of this Act.

SECTION 3. This Act takes effect September 1, 2025.