S.B. No. 856 amends the Labor Code to enhance the use of the skills development fund by including the Texas A&M Engineering Experiment Station and the Texas A&M Engineering Extension Service as eligible entities alongside public community and technical colleges and local workforce development boards. The bill aims to eliminate administrative barriers that hinder these institutions from responding effectively to industry and workforce training needs. It allows these entities to recover costs for customized training programs when there is a labor shortage and ensures that wages for trained individuals meet local market standards.

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 may result in the need to refund unspent state funds and a suspension of future grant awards until compliance is achieved. 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)
Senate Committee Report: Labor Code 303.001, Labor Code 303.002, Labor Code 303.003, Labor Code 303.004 (Labor Code 303)
Engrossed: Labor Code 303.001, Labor Code 303.002, Labor Code 303.003, Labor Code 303.004 (Labor Code 303)
House Committee Report: Labor Code 303.001, Labor Code 303.002, Labor Code 303.003, Labor Code 303.004 (Labor Code 303)
Enrolled: Labor Code 303.001, Labor Code 303.002, Labor Code 303.003, Labor Code 303.004 (Labor Code 303)