TITLE 40. SOCIAL SERVICES AND ASSISTANCE

PART 20. TEXAS WORKFORCE COMMISSION

CHAPTER 810. LONE STAR WORKFORCE OF THE FUTURE FUND

The Texas Workforce Commission (TWC) adopts new Chapter 810, relating to the Lone Star Workforce of the Future Fund, comprising the following subchapters:

Subchapter A. General Provisions Regarding the Lone Star Workforce of the Future Fund, §§810.1 - 810.4

Subchapter B. Advisory Board Composition, Meeting Guidelines, §§810.11 - 810.13

Subchapter C. Program Administration, §§810.21 - 810.28

New §§810.1, 801.3, 810.4, 810.11 - 810.13, and 810.21, and 810.23 - 810.28 are adopted without changes to the proposal, as published in the September 29, 2023, issue of the Texas Register (48 TexReg 5645), and, therefore, the adopted rule text will not be published.

New §810.2 and §810.22 are adopted with changes to the proposal, as published in the September 29, 2023, issue of the Texas Register (48 TexReg 5645), and, therefore, the adopted rule text will be published.

PART I. PURPOSE, BACKGROUND, AND AUTHORITY

The purpose of implementing new Chapter 810 rules is to establish the Lone Star Workforce of the Future Fund and set forth TWC's procedures for administrating the new grant program.

The 88th Texas Legislature, Regular Session (2023), passed House Bill (HB) 1755, which amended Texas Education Code, Title 3, Subtitle G, by adding Chapter 134A relating to the creation of the Lone Star Workforce of the Future Fund. HB 1755 tasks TWC with the establishment and administration of the Lone Star Workforce of the Future Fund as a dedicated account in the general revenue fund. Furthermore, HB 1755 requires TWC to adopt rules as necessary to administer this chapter.

PART II. EXPLANATION OF INDIVIDUAL PROVISIONS

SUBCHAPTER A. GENERAL PROVISIONS REGARDING THE LONE STAR WORKFORCE OF THE FUTURE FUND

TWC adopts new Subchapter A, General Provisions Regarding the Lone Star Workforce of the Future Fund, as follows:

§810.1. Purpose and Goal

New §810.1(a) states the Lone Star Workforce of the Future Fund's purpose.

New §810.1(b) states the Lone Star Workforce of the Future Fund's goal.

§810.2. Definitions

New §810.2 sets forth the definitions for the Lone Star Workforce of the Future Fund rules.

New §810.2(4) has been changed from the proposal to give "eligible applicant" the same meaning as identified under Texas Education Code §134A.007.

Certain paragraphs in §810.2 have been rearranged in alphabetical order and renumbered accordingly.

§810.3. Uses of the Fund

New §810.3 details what a grant recipient shall use the money for.

§810.4. Waivers

New §810.31 sets forth the Executive's waiver authority.

SUBCHAPTER B. ADVISORY BOARD COMPOSITION, MEETING GUIDELINES

TWC adopts new Subchapter B, Advisory Board Composition, Meeting Guidelines, as follows:

§810.11. Advisory Board Purpose and Composition

New §810.11 provides the purpose of the advisory board and the appointing entities.

§810.12. Meeting Requirements

New §810.12 states the advisory board meeting requirements.

§810.13. Advisory Board Responsibilities

New §810.13 outlines the advisory board responsibilities.

SUBCHAPTER C. PROGRAM ADMINISTRATION

TWC adopts new Subchapter C, Program Administration, as follows:

§810.21. Statement of Purpose

New §810.21 explains the Lone Star Workforce of the Future Fund's purpose.

§810.22. Procedure for Requesting Funding

New §810.22 outlines the procedure in which grant applicants may request funding.

New §810.22 has been changed from the proposal to add that "eligible applicant" has the same meaning as identified under Texas Education Code §134A.007.

§810.23. Procedure for Proposal Evaluation

New §810.23 outlines the evaluation procedure for proposed workforce training projects.

§810.24. Grant Agreement Administration

New §810.24 outlines the administration of the agreement between the grant recipient and TWC.

§810.25. Limitation on Awards

New §810.25 outlines limitations the Commission may impose on awards.

§810.26. Program Objectives

New §810.26 details the Lone Star Workforce of the Future Fund's program objectives.

§810.27. Performance Benchmarks

New §810.27 details performance benchmarks that must be met by grant recipients.

§810.28. Reporting Requirements

New §810.28 details reporting requirements for grant recipients.

TWC hereby certifies that the rules have been reviewed by legal counsel and found to be within TWC's legal authority to adopt.

PART III. PUBLIC COMMENTS

The public comment period closed on October 30, 2023.

TWC received comments from Year Up Austin.

COMMENT: Year Up Austin requested that TWC amend §810.1 to add language stating that public junior colleges, public technical institutes, and nonprofit organizations that administer workforce training programs demonstrate a history of and evidence of strong outcomes.

RESPONSE: The Commission appreciates the comment. However, Texas Education Code §134A.007 establishes grant eligibility. TWC has revised the proposed definition of "eligible applicant" to reflect the statutory requirements. TWC will review each grant application on a case-by-case basis and will ensure that applicants are adequately qualified to meet grant requirements.

COMMENT: Year Up Austin asked if §810.2 needs to include a definition of "nonprofit organization."

RESPONSE: The Commission appreciates the comment; however, the Commission intends on developing and utilizing a definition of a "nonprofit organization" as part of each grant cycle. No changes were made in response to this comment.

COMMENT: Year Up Austin recommended that TWC amend §810.4 so that waivers should be reviewed by the advisory board for input but leave the final decision with the Executive Director.

RESPONSE: As stated in §810.13, the advisory board shall provide advice and recommendations to the Commission on awarding grants under this chapter. The advisory board will not review individual applications. No changes were made in response to this comment.

COMMENT: Year Up Austin asked how the Commission Chair is appointed and by whom.

RESPONSE: The Governor of Texas appoints the Commission Chair. No changes were made in response to this comment.

COMMENT: Year Up Austin asked what the requirements referenced in §810.21 are for nonprofit organizations.

RESPONSE: Regarding which entities are eligible to receive a grant under this program, please refer to Texas Education Code Chapter 134A. No changes were made in response to this comment.

COMMENT: Year Up Austin asked if there is a list of high-growth career fields currently available to view, as referenced under §810.24(b).

RESPONSE: TWC will publish a list of high-growth career fields to this program's dedicated webpage following the formal rule adoption and Commission adoption of such a list. No changes were made in response to this comment.

COMMENT: Year Up Austin recommended that TWC amend §810.24(c)(1) to specify which reports are required by the applicant.

RESPONSE: Reporting requirements may vary from year to year. However, all reporting requirements will be included in the contract between TWC and the grant recipient. No changes were made in response to this comment.

COMMENT: Year Up Austin asked if there were additional limits on the grant amount that can be awarded other than those listed in §810.25.

RESPONSE: Neither the statute nor this proposed rule identifies a financial limit aside from the $15,000 per training program participant. However, the Commission may adopt limitations to the grant amount from time to time. No changes were made in response to this comment.

COMMENT: Year Up Austin recommended that TWC amend the rule by adding the following to the end of §810.26(2): "and promote enhanced educational and career mobility."

RESPONSE: The Commission appreciates the comment; however, this requested change is outside the scope of the proposed rulemaking. No changes were made in response to this comment.

COMMENT: Year Up Austin recommended that TWC amend §810.28(a) to specifically identify where the reporting requirement rules exist.

RESPONSE: Section 810.28 outlines reporting requirements that are defined by Texas Education Code Chapter 134A. However, additional reporting requirements and penalties may be enforced in the contract between TWC and the grant recipient. No changes were made in response to this comment.

SUBCHAPTER A. GENERAL PROVISIONS REGARDING THE LONE STAR WORKFORCE OF THE FUTURE FUND

40 TAC §§810.1 - 810.4

STATUTORY AUTHORITY

The new rules are adopted under the specific authority of House Bill 1755, 88th Texas Legislature, Regular Session (2023), which enacted Texas Education Code §134A.012, which requires TWC to adopt rules necessary for the administration of Texas Education Code Chapter 134A.

The rules are adopted under the general authority of Texas Labor Code §301.0015 and §302.002(d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities.

§810.2.Definitions.

In addition to the definitions contained in §800.2 of this title, the following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise.

(1) Advisory board--the advisory board of education and workforce stakeholders created pursuant to the applicable statute.

(2) Agency--the unit of state government established under Texas Labor Code Chapter 301 that is presided over by the Commission and administered by the Executive Director to operate the integrated workforce development system and administer the unemployment compensation insurance program in this state as established under the Texas Unemployment Compensation Act, Texas Labor Code, Title 4, Subtitle A, as amended. The definition of "Agency" shall apply to all uses of the term in rules contained in this part, unless otherwise defined, relating to the Texas Workforce Commission.

(3) Commission--the body of governance of the Texas Workforce Commission composed of three members appointed by the governor as established under Texas Labor Code §301.002 that includes one representative of labor, one representative of employers, and one representative of the public. The definition of "Commission" shall apply to all uses of the term in rules contained in this part, unless otherwise defined, relating to the Texas Workforce Commission.

(4) Eligible applicant--has the same meaning as identified under Texas Education Code §134A.007.

(5) Executive Director--the Executive Director of the Texas Workforce Commission.

(6) Grant recipient--a recipient of the Lone Star Workforce of the Future Fund.

(7) Public junior college--any junior college certified by the Texas Higher Education Coordinating Board in accordance with Texas Education Code §61.003.

(8) Public technical institute--the Lamar Institute of Technology or the Texas State Technical College System, in accordance with Texas Education Code §61.003.

(9) Statute--Texas Education Code, Chapter 134A, Lone Star Workforce of the Future Fund.

(10) Workforce training program--a program that provides performance-based workforce training that:

(A) leads to skill development and experiences required for employment in high demand occupations;

(B) are developed and provided based on consultation with and input from employers that are hiring in high demand occupations;

(C) create pathways to employment for program participants; and

(D) are delivered through classroom-based or online instruction, work-based experiences, internships or apprenticeships, or through a combination of those methods.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 21, 2023.

TRD-202304355

Les Trobman

General Counsel

Texas Workforce Commission

Effective date: December 11, 2023

Proposal publication date: September 29, 2023

For further information, please call: (512) 850-8356


SUBCHAPTER B. ADVISORY BOARD COMPOSITION, MEETING GUIDELINES

40 TAC §§810.11 - 810.13

The new rules are adopted under the specific authority of House Bill 1755, 88th Texas Legislature, Regular Session (2023), which enacted Texas Education Code §134A.012, which requires TWC to adopt rules necessary for the administration of Texas Education Code Chapter 134A.

The rules are adopted under the general authority of Texas Labor Code §301.0015 and §302.002(d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 21, 2023.

TRD-202304356

Les Trobman

General Counsel

Texas Workforce Commission

Effective date: December 11, 2023

Proposal publication date: September 29, 2023

For further information, please call: (512) 850-8356


SUBCHAPTER C. PROGRAM ADMINISTRATION

40 TAC §§810.21 - 810.28

The new rules are adopted under the specific authority of House Bill 1755, 88th Texas Legislature, Regular Session (2023), which enacted Texas Education Code §134A.012, which requires TWC to adopt rules necessary for the administration of Texas Education Code Chapter 134A.

The rules are adopted under the general authority of Texas Labor Code §301.0015 and §302.002(d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities.

§810.22.Procedure for Requesting Funding.

An eligible applicant, as defined by Texas Education Code §134A.007, shall present to the Executive Director, or designee, an application for funding to acquire grant funds for the provision of workforce training as may be identified by the eligible applicant.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 21, 2023.

TRD-202304357

Les Trobman

General Counsel

Texas Workforce Commission

Effective date: December 11, 2023

Proposal publication date: September 29, 2023

For further information, please call: (512) 850-8356