HB 3173

relating to certain planning, notification, and evaluation
requirements with respect to workforce development programs in this
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 2308.304, Government Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1)  In establishing goals, objectives, and performance
measures for segments of the population under Subsection (c), the
plan must establish specific goals, objectives, and performance
measures for individuals who are at least 16 years of age but
SECTION 2.  Chapter 2308, Government Code, is amended by
adding Subchapter H to read as follows:
SUBCHAPTER H.  DUTIES OF GOVERNMENTAL ENTITIES TO LOCAL WORKFORCE
DEVELOPMENT BOARDS AND DIVISION
Sec. 2308.351.  NOTICE OF FINANCIAL INCENTIVE.  (a)  In this
(1)  "Commission" means the Texas Workforce
(2)  "Financial incentive" means a financial benefit,
including a grant, loan, or tax preference, or a combination of
those benefits, offered by a governmental entity to any person.
(3)  "Governmental entity" means a state agency or
political subdivision of this state, including a municipality or
(b)  A governmental entity that provides a financial
incentive that results in the creation of at least 100 estimated new
employment opportunities shall, not later than the 30th day after
the date the governmental entity approves the financial incentive,
notify the commission and any local workforce development board
operating in a workforce development area where the financial
incentive is distributed of the plan to distribute the financial
(c)  The notice required by Subsection (b) must include:
(1)  the estimated number of new employment
opportunities the financial incentive will create;
(2)  the estimated start date for each new employment
opportunity created by the financial incentive; and
(3)  a description of the skills and training necessary
for applicants for each new employment opportunity created by the
SECTION 3.  Subchapter E, Chapter 302, Labor Code, is
amended by adding Section 302.087 to read as follows:
Sec. 302.087.  EVALUATION OF WORKFORCE DEVELOPMENT
ACTIVITIES.  (a)  The commission shall annually evaluate:
(1)  the effectiveness of the commission's workforce
(2)  the best practices for allocating workforce
development funds to and by local workforce development boards to:
(A)  meet the current and projected workforce
needs of employers in workforce development areas; and
(B)  provide workforce development services to
individuals who are at least 16 years of age but younger than 25
(b)  The evaluation under Subsection (a) must include:
(1)  a calculation of the respective percentages of
workforce funds spent annually on efforts to:
(A)  increase employment among individuals who
are at least 16 years of age but younger than 25 years of age;
(B)  reenroll individuals who have dropped out of
a public or open-enrollment charter school and who are at least 16
years of age but younger than 25 years of age; and
(C)  facilitate the participation of individuals
who are at least 16 years of age but less than 25 years of age in
postsecondary education, technical education, or the military;
(2)  the respective numbers of individuals who are at
least 16 years of age but younger than 25 years of age who:
(A)  have dropped out of a public or
open-enrollment charter school and are assisted in reenrollment
(B)  receive assistance in participating in
postsecondary education, technical education, or the military;
(3)  for each local workforce development area:
(A)  the respective numbers of individuals who are
at least 16 years of age but younger than 25 years of age who:
(i)  are eligible for workforce development
(ii)  annually receive workforce
development services, including the number receiving assistance in
enrolling in high school, a high school equivalency program, an
apprenticeship program, an institution of higher education, a
technical school, or the military; and
(B)  the total number of workforce development
service providers actively serving individuals who are at least 16
years of age but younger than 25 years of age in the area;
(4)  for each local workforce development board, an
assessment of the board's current use of workforce funds to
determine and meet the current and projected workforce needs of
employers in the workforce development area;
(5)  examples of efforts to reach individuals who are
at least 16 years of age but less than 25 years of age in which the
commission and local workforce development boards coordinated with
each of the following respective entities:
(A)  the Texas Education Agency, school
districts, or open-enrollment charter schools;
(B)  the Texas Higher Education Coordinating
Board or institutions of higher education; and
(C)  the Department of Family and Protective
(6)  examples of efforts to meet current and projected
workforce needs in which the commission and local workforce
development boards coordinated with each of the following
(A)  private employers or other members of the
(B)  workforce development service providers.
(c)  The commission shall make the evaluation conducted
under Subsection (a), any information collected in the course of
conducting the evaluation, and any findings of the commission
arising from the evaluation readily available to local workforce
development boards, employers, institutions of higher education,
school districts, open-enrollment charter schools, and the public.
(d)  Not later than January 15 of each odd-numbered year, the
commission shall make a report to the legislature detailing the
commission's findings on the effectiveness of the commission's
workforce development program.  The report must include:
(1)  the information described by Subsection (b);
(2)  employment outcome information for individuals
who are at least 16 years of age but less than 25 years of age,
disaggregated by local workforce development area;
(3)  an analysis of multiyear trends identifiable from
the information contained in the evaluation conducted under
Subsection (a), including any identifiable trends that show
positive impacts of workforce development programs on workforce
participation of individuals who are at least 16 years of age but
(4)  the commission's recommendation for legislative or
regulatory action, including recommendations for regulatory action
by other governmental entities.
SECTION 4.  This Act takes effect September 1, 2025.