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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB322

Regular Session

Relating to the use of funds awarded under the Jobs and Education for Texans (JET) Grant Program.

Government Affairs & Regulatory Compliance Analysis

HB322: Government Affairs Overview

HB322 fundamentally expands the Jobs and Education for Texans (JET) Grant Program to allow funding for the acquisition, implementation, and ongoing maintenance of "technology solutions," rather than strictly tangible equipment. This change immediately benefits EdTech vendors, Managed Service Providers (MSPs), and educational institutions by authorizing grant funds for software stacks and long-term maintenance contracts, provided the grant is awarded on or after the effective date.

Rep. Ryan Guillen·House Bill·Regular Session

Low
Low Cost
Effective:2025-06-20
Business Impact

Who HB322 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-06-20). Review during normal business planning.

🎓

Education

Affected business types:

  • School districts
  • Charter schools
  • Private schools
  • Education service providers
View all education legislation

Key Operational Considerations

  • 1Service Level Agreements (SLAs): Vendors must restructure contracts to itemize "ongoing maintenance" as a distinct, grant-eligible deliverable.
  • 2No Retroactivity: Do not attempt to amend existing contracts funded by pre-June 2025 grants to include maintenance costs. This is a statutory violation.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB322
Relating to the use of funds awarded under the Jobs and Education for Texans (JET) Grant Program.
Low Urgency
Heavily Contested
House Vote108 - 38
YEA
NAY
74% in favor146 voting
Senate Vote26 - 5
YEA
NAY
84% in favor31 voting
43
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
TWC
Primary Author: Rep. Ryan Guillen
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025
  • Compliance Deadline: Immediate for all grant applications submitted for award cycles beginning after June 20, 2025.
  • Agency Rulemaking: The Texas Workforce Commission (TWC) must update the Request for Applications (RFA) guidelines. Expect a "regulatory gray zone" between the effective date and the release of the next RFA, during which the definition of "technology solutions" will remain subject to agency interpretation.

Immediate Action Plan

  • 1. Revise Proposals: Update sales proposal templates to break out "Implementation" and "Maintenance" as separate, eligible line items for JET grant applications.
  • 2. Audit Pipeline: Review all pending deals with community colleges and ISDs. If a deal is contingent on a future JET grant, restructure the quote to include software and maintenance.
  • 3. Segregate Accounts: Instruct billing departments to create specific codes for "JET-Eligible Maintenance" to ensure these costs are not commingled with general IT services.
  • 4. Monitor TWC: Assign a compliance officer to monitor the TWC website for the updated JET Grant RFA to confirm the definition of "Technology Solutions."

Operational Changes Required

Contracts

  • Service Level Agreements (SLAs): Vendors must restructure contracts to itemize "ongoing maintenance" as a distinct, grant-eligible deliverable.
  • Term Alignment: Align software licensing and maintenance contract terms with the grant performance period. Include "termination for convenience" or "funding contingency" clauses in multi-year maintenance agreements in case grant funding is not renewed.
  • No Retroactivity: Do not attempt to amend existing contracts funded by pre-June 2025 grants to include maintenance costs. This is a statutory violation.

Hiring/Training

  • Sales Teams: Retrain public sector sales teams immediately. They must shift from "Capital Expenditure (CapEx)" pitches to "Total Cost of Ownership" pitches that include implementation and maintenance.
  • Grant Writers: Internal or contracted grant writers must be instructed to include software implementation and maintenance line items in new budget narratives.

Reporting & Record-Keeping

  • Nexus Documentation: Invoices for technology maintenance must explicitly reference the specific Career and Technical Education (CTE) program supported. General IT maintenance invoices that cannot be segregated from campus-wide IT costs will fail TWC audits.
  • Asset Management: "Technology solutions" must be tracked with the same rigor as physical equipment. Maintain logs of software license keys, user seats, and maintenance logs.

Fees & Costs

  • No New Fees: There are no new state fees.
  • Budget Impact: This is a revenue opportunity for vendors. For applicants, this allows for a shift of operational maintenance costs to grant funding, freeing up local operational budgets.

Strategic Ambiguities & Considerations

  • Definition of "Technology Solutions": The statute is broad. It is currently unclear if this includes infrastructure (e.g., broadband/servers) or is strictly limited to instructional software/hardware. Watch TWC rulemaking for exclusions.
  • "Ongoing" Duration: The law does not define the maximum duration for "ongoing maintenance." It is unclear if TWC will allow pre-payment of a 3-5 year maintenance contract or if it will be restricted to the 1-2 year grant term.
  • Personnel Costs: It is ambiguous whether "maintenance" covers internal staff salaries or is restricted to third-party vendor contracts. Based on precedent, assume third-party restrictions apply until TWC clarifies.

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JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Nov 12, 2024
Passed House
Apr 29, 2025
Passed Senate
May 27, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsEducationEducation--higherEducation--higher--student Financial AidEducation--primary & SecondaryEducation--primary & Secondary--vocationalLaborLabor--workforce DevelopmentScience & TechnologyState FinancesState Finances--management & Control
03

House Authors

Rep. Ryan GuillenRepublican · Primary Author
Coauthors (1)

Senate Sponsors

Sen. Judith ZaffiriniDemocrat · Primary Sponsor
Cosponsors (2)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Ryan Guillen

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Related by Topic

View more Education legislation
Quick Reference

Frequently Asked Questions

Common questions about HB322

Q

What does Texas HB322 do?

HB322 fundamentally expands the Jobs and Education for Texans (JET) Grant Program to allow funding for the acquisition, implementation, and ongoing maintenance of "technology solutions," rather than strictly tangible equipment. This change immediately benefits EdTech vendors, Managed Service Providers (MSPs), and educational institutions by authorizing grant funds for software stacks and long-term maintenance contracts, provided the grant is awarded on or after the effective date.

Q

Who authored HB322?

HB322 was authored by Texas Representative Ryan Guillen during the Regular Session.

Q

When was HB322 signed into law?

HB322 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB322?

HB322 is enforced by Texas Workforce Commission (TWC).

Q

How significant are the changes in HB322?

The regulatory priority for HB322 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB322?

The cost impact of HB322 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB322 address?

HB322 addresses topics including education, education--higher, education--higher--student financial aid, education--primary & secondary and education--primary & secondary--vocational.

Q

What are the key dates for HB322?

Key dates for HB322: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB322?

HB322 primarily affects employers and workforce development organizations, technology companies and data processors. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026