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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB3260

Regular Session

Relating to the Texas Industry-Recognized Apprenticeship Programs Grant Program.

Government Affairs & Regulatory Compliance Analysis

HB3260: Government Affairs Overview

HB3260 centralizes authority for the Texas Industry-Recognized Apprenticeship Programs (IRAP) Grant Program under the Texas Workforce Commission (TWC), eliminating the reliance on federal Department of Labor or third-party certifiers effective June 20, 2025. This legislation fundamentally alters the cash flow model for grant recipients by mandating milestone-based reimbursements and introduces strict new reporting requirements regarding apprentice retention and completion rates.

Rep. Keith Bell·House Bill·Regular Session

Moderate
Low Cost
Effective:2025-06-20
Enforcing Agencies

Texas Workforce Commission

Business Impact

Who HB3260 Affects

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

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.

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Manufacturing & Business

Affected business types:

  • Manufacturers
  • Industrial facilities
  • Supply chain companies
  • Logistics providers
View all manufacturing & business legislation

Key Operational Considerations

  • 1Grant Agreements: Legal teams must review new TWC grant contracts for "Milestone" definitions. Ensure reimbursement triggers are commercially viable before signing.
  • 2Certification Protocol: Cease applications to third-party certifiers for state grant eligibility. All program certifications must now go directly through the TWC.
  • 3Occupation Eligibility: Ensure training programs focus on "manual, mechanical, or technical skills," as the TWC is now statutorily limited to certifying occupations fitting this description.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB3260
Relating to the Texas Industry-Recognized Apprenticeship Programs Grant Program.
Moderate Urgency
Heavily Contested
House Vote119 - 29
YEA
NAY
80% in favor148 voting
Senate Vote25 - 6
YEA
NAY
81% in favor31 voting
35
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Texas Workforce Commission
Primary Author: Rep. Keith Bell
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 (Immediate effect due to supermajority vote).
  • Compliance Deadline: Immediate for any grant application submitted on or after June 20, 2025. Grants awarded prior to this date remain governed by former law.
  • Agency Rulemaking: The TWC is required to adopt rules defining "apprenticeable occupations" and reimbursement schedules "as soon as practicable" after the effective date.
  • *Regulatory Gray Zone:* Expect a processing freeze for new applications between June 20, 2025, and the final publication of TWC rules, as the agency cannot award grants until new criteria are codified.

Immediate Action Plan

  • Audit Pending Applications: Push to finalize and sign any pending grant agreements before June 20, 2025, to lock in current, known regulatory terms.
  • Update Financial Models: Direct the CFO/Finance Director to adjust cash flow forecasts to account for milestone-based (rather than immediate) reimbursement for future grants.
  • Subscribe to TWC Alerts: Designate a compliance officer to monitor the *Texas Register* for proposed TWC rules regarding "apprenticeable occupations."
  • Prepare Public Comment: Be prepared to submit comments during the rulemaking phase if TWC proposes milestone schedules that negatively impact operating capital.

Operational Changes Required

Contracts

  • Grant Agreements: Legal teams must review new TWC grant contracts for "Milestone" definitions. Ensure reimbursement triggers are commercially viable before signing.
  • Apprentice Employment Agreements: Align apprentice employment contracts with grant milestones. If a grant payment is triggered by a certification exam or a 6-month retention mark, employment terms should incentivize the apprentice to meet these specific goals.

Hiring/Training

  • Certification Protocol: Cease applications to third-party certifiers for state grant eligibility. All program certifications must now go directly through the TWC.
  • Occupation Eligibility: Ensure training programs focus on "manual, mechanical, or technical skills," as the TWC is now statutorily limited to certifying occupations fitting this description.

Reporting & Record-Keeping

  • Data Tracking: Configure HRIS or LMS platforms immediately to track retention outcomes (employment duration post-certification) and completion rates.
  • Invoicing: Finance departments must shift from lump-sum or expense-based invoicing to milestone-based invoicing. Accounts Receivable must track these milestones to forecast cash flow accurately.

Fees & Costs

  • Cash Flow Impact: While there are no new state fees, the shift to milestone-based reimbursement may delay cash inflows compared to previous reimbursement models. Budget for potential lags in reimbursement during the initial transition.

Strategic Ambiguities & Considerations

  • Definition of "Milestones": The law allows TWC to define when you get paid. If TWC sets milestones heavily toward the end of the program (e.g., 100% payment only upon 1-year retention), businesses will carry the training cost burden longer.
  • "Generally Consistent" Standard: The TWC must adopt rules consistent with federal 29 C.F.R. Section 29. It is unclear if TWC will adopt a "lite" version or mirror the heavy administrative burden of federal registration.
  • Occupational Scope: The interpretation of "technical skills" is currently undefined. It is unknown if TWC will extend eligibility to white-collar technical roles (e.g., cybersecurity, logistics) or restrict it to traditional trades.

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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
Feb 25, 2025
Passed House
Apr 29, 2025
Passed Senate
May 21, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsEconomic & Industrial DevelopmentEconomic & Industrial Development--generalLaborLabor--workforce DevelopmentState FinancesState Finances--management & ControlWorkforce Commission, Texas
03

House Authors

Rep. Keith BellRepublican · Primary Author
Joint Authors
Coauthors (2)

Senate Sponsor

Sen. Kelly HancockRepublican · Primary Sponsor

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. Keith Bell

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about HB3260

Q

What does Texas HB3260 do?

HB3260 centralizes authority for the Texas Industry-Recognized Apprenticeship Programs (IRAP) Grant Program under the Texas Workforce Commission (TWC), eliminating the reliance on federal Department of Labor or third-party certifiers effective June 20, 2025. This legislation fundamentally alters the cash flow model for grant recipients by mandating milestone-based reimbursements and introduces strict new reporting requirements regarding apprentice retention and completion rates.

Q

Who authored HB3260?

HB3260 was authored by Texas Representative Keith Bell during the Regular Session.

Q

When was HB3260 signed into law?

HB3260 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB3260?

HB3260 is enforced by Texas Workforce Commission.

Q

How significant are the changes in HB3260?

The regulatory priority for HB3260 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB3260?

The cost impact of HB3260 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB3260 address?

HB3260 addresses topics including economic & industrial development, economic & industrial development--general, labor, labor--workforce development and state finances.

Q

What are the key dates for HB3260?

Key dates for HB3260: Effective date is 2025-06-20. Rulemaking: Adopt rules defining 'apprenticeable occupations,' establishing certification criteria consistent with 29 C.F.R. Section 29, setting performance metrics, and creating reimbursement milestone schedules. (As soon as practicable after 2025-06-20). Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB3260?

HB3260 primarily affects employers and workforce development organizations. 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