CHAPTER 303. SKILLS DEVELOPMENT FUND
LABOR CODE
TITLE 4. EMPLOYMENT SERVICES AND UNEMPLOYMENT
SUBTITLE B. TEXAS WORKFORCE COMMISSION; WORKFORCE DEVELOPMENT;
EMPLOYMENT SERVICES
CHAPTER 303. SKILLS DEVELOPMENT FUND
Sec. 303.001. PURPOSE; DEFINITIONS. (a) The purpose of this
chapter is to remove administrative barriers that impede the
response of public community and technical colleges,
community-based organizations, and the Texas Engineering
Extension Service to industry and workforce training needs and to
develop incentives for public community and technical colleges,
community-based organizations, and the Texas Engineering
Extension Service to provide customized assessment and training
in a timely and efficient manner.
(b) For purposes of this chapter:
(1) "Assessment" means the evaluation of an employer's workforce
needs and requirements.
(2) "Community-based organization" means a private nonprofit
organization, including a development corporation and faith-based
organization, that:
(A) provides for education, vocational education,
rehabilitation, job training, or internship services or programs;
and
(B) is exempt from the payment of federal income taxes under
Section 501(a) of the Internal Revenue Code of 1986, and its
subsequent amendments, by being listed as an exempt entity under
Section 501(c)(3) of that code.
Added by Acts 1995, 74th Leg., ch. 655, Sec. 11.03, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 153, Sec. 1, eff. May
20, 1997; Acts 1999, 76th Leg., ch. 1120, Sec. 1, eff. Sept. 1,
1999.
Sec. 303.002. WAIVER. (a) The commission may review and
recommend to the legislature the waiver of any requirements set
forth in Title 3, Education Code, as they may apply to public
community and technical colleges, that impede the ability of such
a college to develop in a timely manner customized training for
demand occupations in particular industries, including statutes
or regulations limiting costs that may be recovered by a public
community or technical college from state funds.
(b) A public community or technical college or the Texas
Engineering Extension Service may recover customized assessment
and training costs incurred by the institution if:
(1) there is an actual or projected labor shortage in the
occupation in which training is provided that is not being met by
an existing institution or program in the area; and
(2) the wages at the time of job placement for individuals who
successfully complete customized training at the public community
or technical college or the Texas Engineering Extension Service
are equal to the prevailing wage for that occupation in the local
labor market area.
Added by Acts 1995, 74th Leg., ch. 655, Sec. 11.03, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 153, Sec. 2, eff. May
20, 1997.
Sec. 303.003. SKILLS DEVELOPMENT FUND. (a) To achieve the
purposes of this chapter, the skills development fund is created.
The fund is composed of:
(1) money transferred into the fund under Section 204.123; and
(2) any amounts appropriated by the legislature for the purpose
of this chapter from the general revenue fund.
(b) The skills development fund may be used by public community
and technical colleges, community-based organizations, and the
Texas Engineering Extension Service as start-up or emergency
funds for the following job-training purposes:
(1) developing customized training programs for businesses and
trade unions; and
(2) sponsoring small and medium-sized business networks and
consortiums.
(b-1) The commission by rule may establish and develop
additional job incentive programs that use the skills development
fund to create incentives for public community and technical
colleges in partnership with one or more employers, including
prospective employers who commit to establishing a place of
business in this state, to provide workforce training in an
effort to create and retain employment opportunities in this
state. Under a program established under this subsection, the
commission may commit money to a prospective employer described
by this subsection contingent on the employer's establishment of
a place of business in this state.
(c) Money from the skills development fund may not be used to
pay the training costs and other related costs of an employer who
relocates the employer's worksite from one location in this state
to another in-state location.
(d) The executive director, or a person appointed by the
executive director who is knowledgeable in the administration of
grants, is responsible for the distribution of money from the
skills development fund.
(e) It is the intent of the legislature that, to the greatest
extent practicable, money from the skills development fund shall
be spent in all areas of this state.
(f) The Texas Engineering Extension Service shall focus the
service's training activities under this chapter on programs
that:
(1) are statewide in nature; or
(2) are not available from a local junior college district, a
local technical college, or a consortium of junior college
districts.
(g) This section does not prohibit the Texas Engineering
Extension Service from participating in a consortium of junior
college districts or with a technical college that provides
training under this chapter.
(h) A community-based organization may apply for money to
participate in a training program only in partnership with a
community and technical college or the Texas Engineering
Extension Service. A community-based organization providing
services regulated by the state shall provide evidence of any
certification, license, or registration required by law.
Added by Acts 1995, 74th Leg., ch. 655, Sec. 11.03, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 153, Sec. 3, eff. May
20, 1997; Acts 1999, 76th Leg., ch. 1120, Sec. 2, eff. Sept. 1,
1999; Acts 1999, 76th Leg., ch. 1485, Sec. 2.01, eff. Sept. 1,
1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1289, Sec. 1, eff. June 19, 2009.
Sec. 303.0035. USE OF MONEY IN HOLDING FUND (GENERAL REVENUE
ACCOUNT 5069) FOR SKILLS DEVELOPMENT. Money in the holding fund
(general revenue account 5069) may be used only for the purposes
for which the money in the skills development fund created under
Section 303.003 may be used.
Added by Acts 2005, 79th Leg., Ch.
1115, Sec. 5, eff. June 18, 2005.
Sec. 303.004. FUND REVIEW. The Texas Higher Education
Coordinating Board shall review all customized training programs
biennially to verify that state funds are being used
appropriately by public community and technical colleges and the
Texas Engineering Extension Service under this chapter.
Added by Acts 1995, 74th Leg., ch. 655, Sec. 11.03, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 153, Sec. 4, eff. May
20, 1997.
Sec. 303.005. PARTICIPATION IN ADDITIONAL PROGRAMS; APPLICATION
REQUIREMENTS; PRIORITY. (a) An employer may not apply both to a
public community or technical college for customized training and
assessment from the college through a grant issued to the college
under the skills development fund program established under this
chapter and for a grant under the Texas Enterprise Fund program
established under Subchapter E, Chapter 481, Government Code,
unless the employer and the college file an application for
concurrent participation in both programs that complies with any
rules adopted by the Texas Workforce Commission on concurrent
participation.
(b) In awarding any grant under this chapter, the commission
shall consider giving priority to training incentives for small
businesses.
Added by Acts 1999, 76th Leg., ch. 1485, Sec. 2.02, eff. Sept. 1,
1999.
Amended by:
Acts 2005, 79th Leg., Ch.
1115, Sec. 6, eff. June 18, 2005.
Sec. 303.006. REPORTING REQUIREMENTS. (a) In this section:
(1) "Employee" means an individual who performs services for
another under a contract of hire, whether express or implied, or
oral or written.
(2) "Employer" means a person that employs one or more
employees.
(3) "Existing employer" means an employer that:
(A) has been liable to pay contributions under Subtitle A, Title
4, for more than one year;
(B) has employees; and
(C) is in compliance with the reporting and payment requirements
of Subtitle A, Title 4, as determined by the Texas Workforce
Commission.
(4) "In-kind contribution" means a noncash contribution of goods
and services provided by an employer as all or part of the
employer's matching share of a grant or project.
(5) "Job" means employment on a basis customarily considered
full-time for the applicable occupation and industry.
(6) "Large employer" means a business entity that employs at
least 500 employees.
(7) "Medium employer" means a business entity that employs more
than 99 but fewer than 500 employees.
(8) "Micro-employer" means a business entity that employs not
more than 20 employees.
(9) "Program" means the skills development fund program created
under this chapter.
(10) "Small employer" means a business entity that employs more
than 20 but fewer than 100 employees.
(11) "Trainee" means a participant in a project funded under
this chapter.
(12) "Wages" means all forms of compensation or remuneration,
excluding benefits, payable for a specific period to an employee
for personal services rendered by that employee.
(b) In implementing provisions under this section regarding the
classification of this state into regions, the executive director
shall use the uniform service regions established by the
comptroller under Section 120, Article V, Chapter 19, Acts of the
72nd Legislature, 1st Called Session, 1991 (the General
Appropriations Act).
(c) The executive director shall report to the governor and the
legislature at the end of each fiscal year the status of the
program established under this chapter.
(d) The annual report must include for that fiscal year:
(1) the total number of applications submitted, the total number
of applications approved, and the total number of applications
rejected by region of the state;
(2) the average and median weekly wage levels of trainees under
this chapter entering or returning to the workforce, broken down
by:
(A) current employees undergoing retraining;
(B) new hires; and
(C) region of the state;
(3) the average and median weekly wage levels of trainees under
this chapter entering or returning to the workforce, broken down
by region of the state;
(4) the number and percentage of trainees covered by health care
insurance coverage, workers' compensation insurance coverage, and
other analogous benefit programs;
(5) the total amount of money awarded in each region of the
state and the percentage that amount represents of the total
amount of money awarded on a statewide basis;
(6) a comparison of the percentage of total dollars awarded to
each region versus each region's percentage of:
(A) the state's population;
(B) the civilian labor force;
(C) the number of unemployed persons; and
(D) the number of qualified grant applications submitted to the
commission by public community and technical colleges;
(7) the total amount of money awarded to micro-employers, small
employers, medium employers, and large employers, reported by
region of the state; and
(8) the total number of jobs created or persons retrained under
the program:
(A) by region of the state;
(B) by occupation classified by the two-digit standard
industrial classification;
(C) by wage level; and
(D) whether attributable to:
(i) relocation of businesses to this state; or
(ii) training or retraining of employees of existing employers.
Added by Acts 1999, 76th Leg., ch. 1485, Sec. 2.02, eff. Sept. 1,
1999.