The bill, S.B. No. 856, aims to enhance the use of the skills development fund by expanding the list of entities eligible to utilize these funds for workforce training. Specifically, it includes the Texas A&M Engineering Experiment Station and the Texas A&M Engineering Extension Service alongside public community and technical colleges, community-based organizations, and local workforce development boards. The bill amends various sections of the Labor Code to facilitate customized training programs and allows these entities to recover costs associated with training if certain labor market conditions are met.

Additionally, the bill mandates that the Texas Higher Education Coordinating Board conduct biennial reviews of customized training programs to ensure appropriate use of state funds. It requires the Texas A&M Engineering Experiment Station, the Texas A&M Engineering Extension Service, and public colleges to submit detailed reports on the effectiveness of their training programs and their impact on participants' wages. Failure to comply with reporting requirements could result in the need to refund unexpended state funds and a suspension of future grant awards. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Labor Code 303.001, Labor Code 303.002, Labor Code 303.003, Labor Code 303.004 (Labor Code 303)