§ 303.003 — SKILLS DEVELOPMENT FUND.

Texas § 303.003

• Jurisdiction: Texas
• Code LA: Labor Code

Text

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, local workforce development boards, the Texas A&M Engineering Experiment Station, and the Texas A&M 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.
(b-2) In addition to the purposes described by Subsections (b) and (b-1), in each state fiscal biennium, an amount of money from the skills development fund not to exceed five percent of the amount of general revenue appropriated to the skills development fund for that biennium may be used as provided by this subsection. Funds available to the commission from other sources may also be used as provided by this subsection. Funds may be awarded under this subsection to a lower-division institution of higher education to be used under an agreement with a school district, or to a school district to be used under an agreement with a lower-division institution of higher education, to support courses offered for joint high school and college-level credit or offered under a college credit career or technical education program that leads to an industry-recognized license, credential, or certificate. Appropriate uses of funds awarded under this subsection include purchasing or repairing necessary equipment for a course and developing a course curriculum. A course or program supported under this subsection must:
(1) have the endorsement of, or a letter of support from, at least one employer in this state; and
(2) be targeted to address the needs of high-demand fields or occupations, as identified by the applicable local workforce development board.
(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 A&M Engineering Experiment Station and the Texas A&M Engineering Extension Service shall focus the station's or 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 A&M Engineering Experiment Station or the Texas A&M 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, the Texas A&M Engineering Experiment Station, or the Texas A&M 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.
(i) In this section, "lower-division institution of higher education" means a public junior college, public state college, or public technical institute.

Legislative History

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 (H.B. 2169 ), Sec. 1, eff. June 19, 2009. Acts 2013, 83rd Leg., R.S., Ch. 1047 (H.B. 3028 ), Sec. 1, eff. June 14, 2013. Acts 2015, 84th Leg., R.S., Ch. 988 (H.B. 18 ), Sec. 8, eff. June 19, 2015. Acts 2019, 86th Leg., R.S., Ch. 1041 (H.B. 700 ), Sec. 3, eff. September 1, 2019. Acts 2025, 89th Leg., R.S., Ch. 89 (S.B. 856 ), Sec. 3, eff. September 1, 2025.