CHAPTER 303. SKILLS DEVELOPMENT FUND

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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.

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

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).

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

(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;

(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;

(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.

State Codes and Statutes

State Codes and Statutes

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