Relating to the establishment of the Rural Workforce Development Grant Program, the official text

S.B. No. 2448

AN ACT

relating to the establishment of the Rural Workforce Development

Grant Program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 302, Labor Code, is amended by adding

Subchapter J to read as follows:

SUBCHAPTER J. RURAL WORKFORCE DEVELOPMENT GRANT PROGRAM

Sec. 302.301. DEFINITIONS. In this subchapter:

(1) "Institution of higher education" has the meaning

assigned by Section 61.003, Education Code.

(2) "Nonprofit organization" means an organization

exempt from federal income taxation under Section 501(a), Internal

Revenue Code of 1986, as an organization described by Section

501(c)(3) of that code.

(3) "Program" means the Rural Workforce Development

Grant Program established under this subchapter.

Sec. 302.302. PROGRAM ESTABLISHMENT AND ADMINISTRATION.

The commission, in consultation with the Texas Education Agency and

the Texas Higher Education Coordinating Board, shall establish and

administer the Rural Workforce Development Grant Program under

which the commission may award grants to one or more nonprofit

organizations to provide technical assistance and support to

institutions of higher education and school districts located in

rural areas of the state in aligning and delivering workforce

training and higher education programs to address skills gaps to

meet urgent workforce demands of rural areas.

Sec. 302.303. GRANT ELIGIBILITY. To be eligible for a grant

under the program, a nonprofit organization must:

(1) apply to the commission in the manner prescribed

by commission rule;

(2) demonstrate experience in effectively providing

technical assistance and support to institutions of higher

education or school districts located in a rural area of this state

in aligning and delivering workforce training and higher education

programs to address skills gaps to meet the area's urgent workforce

demands; and

(3) satisfy any other relevant criteria prescribed by

commission rule.

Sec. 302.304. GRANT REQUIREMENTS. (a) The commission may

award a grant to an eligible nonprofit organization under the

program only if the organization enters into a contract with the

commission that includes conditions providing the commission with

sufficient control to ensure the public purpose of improving rural

workforce development is accomplished and the state receives a

return benefit.

(b) Grant money awarded to an eligible nonprofit

organization under the program may be used by the organization only

for costs associated with providing technical assistance and

support to an institution of higher education or school district

located in a rural area of this state in aligning and delivering

workforce training and higher education programs to address skills

gaps to meet the area's urgent workforce demands.

Sec. 302.305. FUNDING. In addition to any money

appropriated for the program, the commission may solicit and accept

gifts, grants, and donations from any public or private source for

the program.

Sec. 302.306. RULES; REVIEW. The commission shall:

(1) adopt rules for the administration of this

subchapter; and

(2) periodically verify that grant money awarded to a

nonprofit organization under the program is being used

appropriately.

Sec. 302.307. ANNUAL REPORT. Not later than December 1 of

each year, the commission shall submit to the governor, the

lieutenant governor, the speaker of the house of representatives,

and each standing committee of the legislature with primary

jurisdiction over workforce development a report regarding:

(1) any grants awarded under the program during the

most recent state fiscal year; and

(2) the program's effectiveness.

SECTION 2. The Texas Workforce Commission shall adopt the

rules required under Subchapter J, Chapter 302, Labor Code, as

added by this Act, as soon as practicable after the effective date

of this Act.

SECTION 3. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 2448 passed the Senate on

May 1, 2025, by the following vote: Yeas 30, Nays 1.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 2448 passed the House on

May 20, 2025, by the following vote: Yeas 103, Nays 44, two

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor