TITLE 40. SOCIAL SERVICES AND ASSISTANCE

PART 20. TEXAS WORKFORCE COMMISSION

CHAPTER 800. GENERAL ADMINISTRATION

SUBCHAPTER E. ADVISORY COMMITTEES

The Texas Workforce Commission (TWC) proposes the following new sections to Chapter 800, relating to General Administration:

Subchapter E. Advisory Committees, §§800.170 - 800.172

PART I. PURPOSE, BACKGROUND, AND AUTHORITY

The purpose of the proposed Chapter 800 rule change is to establish by rule abolishment dates for TWC's advisory committees in accordance with Texas Government Code, Chapter 2110.

Under the statute, unless prohibited by another state law or federal law or regulation, an advisory committee is automatically abolished on the fourth anniversary of its creation date, unless the state agency by rule designates the date on which the committee will automatically be abolished. The committee may continue in existence after that date only if the agency amends the rule to provide for a different abolishment date.

This rulemaking sets specific abolishment dates for the following TWC advisory committees that are subject to Texas Government Code, Chapter 2110:

--Industry-Based Certifications Advisory Council;

--Jobs and Education for Texans Advisory Committee; and

--Lone Star Workforce of the Future Advisory Board.

Chapter 800, Subchapter E, does not apply to TWC advisory committees that are exempt from the provisions of Texas Government Code, Chapter 2110, because of another state law or a federal law or regulation.

In the development of the proposed rules, TWC's Office of General Counsel consulted the points of contact for each advisory committee affected by this rulemaking.

PART II. EXPLANATION OF INDIVIDUAL PROVISIONS

SUBCHAPTER E. ADVISORY COMMITTEES

TWC proposes new Subchapter E, as follows:

§800.170. Definition

New §800.170 defines "Advisory Committee" as it is defined by Texas Government Code, §2110.001.

§800.171. Creation and Duration of Advisory Committees Created by the Commission

New §800.171 provides the abolishment date of an advisory committee created by TWC in accordance with Texas Government Code, §2110.008(b).

§800.172. Duration of Advisory Committees

New §800.172 sets specific abolishment dates for the applicable TWC advisory committees.

PART III. IMPACT STATEMENTS

Chris Nelson, Chief Financial Officer, has determined that for each year of the first five years the rules will be in effect, the following statements will apply:

There are no additional estimated costs to the state or to local governments expected as a result of enforcing or administering the rules.

There are no estimated cost reductions to the state or to local governments as a result of enforcing or administering the rules.

There are no estimated losses or increases in revenue to the state or local governments as a result of enforcing or administering the rules.

There are no foreseeable implications relating to costs or revenue of the state or local governments as a result of enforcing or administering the rules.

There are no anticipated economic costs to individuals required to comply with the rules.

There is no anticipated adverse economic impact on small businesses, microbusinesses, or rural communities as a result of enforcing or administering the rules.

Based on the analyses required by Texas Government Code, §2001.024, TWC has determined that the requirement to repeal or amend a rule, as required by Texas Government Code, §2001.0045, does not apply to this rulemaking.

Takings Impact Assessment

Under Texas Government Code, §2007.002(5), "taking" means a governmental action that affects private real property, in whole or in part or temporarily or permanently, in a manner that requires the governmental entity to compensate the private real property owner as provided by the Fifth and Fourteenth Amendments to the US Constitution or the Texas Constitution, Section 17 or Section 19, Article I, or restricts or limits the owner's right to the property that would otherwise exist in the absence of the governmental action, and is the producing cause of a reduction of at least 25 percent in the market value of the affected private real property, determined by comparing the market value of the property as if the governmental action is not in effect and the market value of the property determined as if the governmental action is in effect. TWC completed a Takings Impact Assessment for the proposed rulemaking action under Texas Government Code, §2007.043. The primary purpose of this proposed rulemaking action, as discussed elsewhere in this preamble, is to establish by rule abolishment dates for certain TWC advisory committees as allowed under Texas Government Code, Chapter 2110.

The proposed rulemaking action will not create any additional burden on private real property or affect private real property in a manner that would require compensation to private real property owners under the US Constitution or the Texas Constitution. The proposal also will not affect private real property in a manner that restricts or limits an owner's right to the property that would otherwise exist in the absence of the governmental action. Therefore, the proposed rulemaking will not cause a taking under Texas Government Code, Chapter 2007.

Government Growth Impact Statement

TWC has determined that during the first five years the rules will be in effect, they:

--will not create or eliminate a government program;

--will not require the creation or elimination of employee positions;

--will not require an increase or decrease in future legislative appropriations to TWC;

--will not require an increase or decrease in fees paid to TWC;

--will not create a new regulation;

--will not expand, limit, or eliminate an existing regulation;

--will not change the number of individuals subject to the rules; and

--will not positively or adversely affect the state's economy.

Economic Impact Statement and Regulatory Flexibility Analysis

TWC has determined that the rules will not have an adverse economic impact on small businesses or rural communities, as the proposed rules place no requirements on small businesses or rural communities.

Mariana Vega, Director, Labor Market Information, has determined that there is not a significant negative impact upon employment conditions in the state as a result of the rules.

Les Trobman, General Counsel, has determined that for each year of the first five years the rules are in effect, the public benefit anticipated as a result of enforcing the proposed rules will be to provide the public notice of when certain TWC advisory committees will be abolished unless continued by the Commission.

PART IV. REQUEST FOR IMPACT INFORMATION

TWC requests, from any person required to comply with the proposed rules or any other interested person, information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis. Please submit the requested information to TWCPolicyComments@twc.texas.gov no later than May 11, 2026.

PART V. PUBLIC COMMENTS

Comments on the proposed rules may be submitted to TWCPolicyComments@twc.texas.gov and must be received no later than May 11, 2026.

PART VI. STATUTORY AUTHORITY

The new rules are proposed under:

--Texas Government Code, §2110.008, which requires a state agency to set by rule an advisory committee abolishment date if the agency chooses to designate such a date.

--Texas Labor Code, §301.0015, which provides TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities.

The new rules relate to Title 4, Texas Labor Code, particularly Chapter 312, and Title 3, Texas Education Code, particularly Chapter 134 and Chapter 134A.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 24, 2026.

TRD-202601354

Les Trobman

General Counsel

Texas Workforce Commission

Earliest possible date of adoption: May 10, 2026

For further information, please call: (737) 301-9662

CHAPTER 806. PURCHASES OF PRODUCTS AND SERVICES FROM PEOPLE WITH DISABILITIES

SUBCHAPTER J. TRANSITION AND RETENTION PLANS

The Texas Workforce Commission (TWC) proposes the repeal of the following sections of Chapter 806, relating to Purchases of Products and Services from People with Disabilities, as follows:

Subchapter J. Transition and Retention Plans, §§806.100 - 806.104

PART I. PURPOSE, BACKGROUND, AND AUTHORITY

The purpose of the Chapter 806 rulemaking is to repeal Subchapter J, Transition and Retention Plans, because the statute on which the rules in Subchapter J are based expired September 1, 2023.

The Purchasing from People with Disabilities (PPD) program encourages Texas state agencies and political subdivisions to give preference to purchasing products and services offered by community rehabilitation programs (CRPs) that employ people with disabilities, helping them achieve and maintain their independence through gainful employment.

Texas Human Resources Code, §122.0076, requires any CRP participating in the PPD program to pay each worker with a disability who is employed by the CRP at least the federal minimum wage.

Expired Texas Human Resources Code, §122.0075, as set forth by Senate Bill 753, 86th Texas Legislature, Regular Session, 2019, required CRPs that were paying their workers with disabilities less than the federal minimum wage to develop a plan to increase those wages to at least the federal minimum wage in order to continue participating in the PPD program. This statute expired on September 1, 2023, and, consequently, so did the rules under Chapter 806, Subchapter J, which the Commission adopted for the purpose of implementing the CRP minimum wage transition planning requirement.

TWC ensures CRP compliance with the minimum wage requirement under Texas Human Resources Code, §122.0076, through compliance monitoring, which, among other requirements in Chapter 806, requires each participating CRP to file a quarterly employee wage and hour report and for the CRP to recertify for continued PPD program participation every three years.

TWC informed CRPs currently participating in the PPD program of the proposed action to repeal Chapter 806, Subchapter J in its entirety.

PART II. EXPLANATION OF INDIVIDUAL PROVISIONS

SUBCHAPTER J. TRANSITION AND RETENTION PLANS

TWC proposes the repeal of Subchapter J, in its entirety, as follows:

§806.100. Scope and Purpose

§806.101. Requirements for Transition and Retention Plans

§806.102. Extensions for Transition and Retention Plans

§806.103. Withdrawal from the Program

§806.104. New CRPs during the TRP Period

PART III. IMPACT STATEMENTS

Chris Nelson, Chief Financial Officer, has determined that for each year of the first five years the repeal will be in effect, the following statements will apply:

There are no additional estimated costs to the state and to local governments expected as a result of repealing the rules.

There are no estimated cost reductions to the state and to local governments as a result of repealing the rules.

There are no estimated losses or increases in revenue to the state or to local governments as a result of repealing the rules.

There are no foreseeable implications relating to costs or revenue of the state or local governments as a result of repealing the rules.

There are no anticipated economic costs to individuals resulting from the repeal of the rules.

There is no anticipated adverse economic impact on small businesses, microbusinesses, or rural communities resulting from the repeal of the rules.

Based on the analyses required by Texas Government Code, §2001.024, TWC has determined that the requirement to repeal or amend a rule, as required by Texas Government Code, §2001.0045, does apply to this rulemaking.

Takings Impact Assessment

Under Texas Government Code, §2007.002(5), "taking" means a governmental action that affects private real property, in whole or in part or temporarily or permanently, in a manner that requires the governmental entity to compensate the private real property owner as provided by the Fifth and Fourteenth Amendments to the US Constitution or the Texas Constitution, §17 or §19, Article I, or restricts or limits the owner's right to the property that would otherwise exist in the absence of the governmental action, and is the producing cause of a reduction of at least 25 percent in the market value of the affected private real property, determined by comparing the market value of the property as if the governmental action is not in effect and the market value of the property determined as if the governmental action is in effect. TWC completed a Takings Impact Assessment for the proposed rulemaking action under Texas Government Code, §2007.043. The primary purpose of this proposed rulemaking action, as discussed elsewhere in this preamble, is to repeal Chapter 806, Subchapter J in its entirety, because its rules expired on September 1, 2023, and are no longer applicable to the PPD program, as all workers in the PPD program are required to earn at the federal minimum wage, or higher.

The proposed repeal will not create any additional burden on private real property or affect private real property in a manner that would require compensation to private real property owners under the US Constitution or the Texas Constitution. The proposal also will not affect private real property in a manner that restricts or limits an owner's right to the property that would otherwise exist in the absence of the governmental action. Therefore, the proposed rulemaking will not cause a taking under Texas Government Code, Chapter 2007.

Government Growth Impact Statement

TWC has determined that during the first five years the proposed repeal will be in effect, the repeal of the rules:

--will not create or eliminate a government program;

--will not require the creation or elimination of employee positions;

--will not require an increase or decrease in future legislative appropriations to TWC;

--will not require an increase or decrease in fees paid to TWC;

--will not create a new regulation;

--will not expand, limit, or eliminate an existing regulation;

--will not change the number of individuals subject to the rules; and

--will not positively or adversely affect the state's economy.

Economic Impact Statement and Regulatory Flexibility Analysis

TWC has determined that the proposed repeal will not have an adverse economic impact on small businesses or rural communities, as the proposal place no requirements on small businesses or rural communities.

Mariana Vega, Director, Labor Market Information, has determined that there is not a significant negative impact upon employment conditions in the state as a result of the proposed repeal.

Tammy Martin, Director, Vocational Rehabilitation Division, has determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of the repeal will be that individuals with disabilities working in the PPD program will continue earning the federal minimum wage or higher.

PART IV. REQUEST FOR IMPACT INFORMATION

TWC requests, from any interested person, information related to the cost, benefit, or effect of the proposed repeal, including any applicable data, research, or analysis. Please submit the requested information to TWCPolicyComments@twc.texas.gov no later than May 11, 2026.

PART V. PUBLIC COMMENTS

Comments on the proposed repeal may be submitted to TWCPolicyComments@twc.texas.gov and must be received no later than May 11, 2026.

PART VI. STATUTORY AUTHORITY

The repeals are proposed under the authority of:

--Texas Human Resources Code, §122.0075(h), which set a September 1, 2023, expiration date for §122.0075;

--Texas Human Resources Code, §122.013, which grants the Commission authority to adopt rules for the administration of Texas Human Resources Code, Chapter 122; and

--Texas Labor Code, §301.0015(6) and §302.002(d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities.

The proposed repeals relate to Title 8, Texas Human Resources Code, Chapter 122.

§806.100. Scope and Purpose.

§806.101. Requirements for Transition and Retention Plans.

§806.102. Extensions for Transition and Retention Plans.

§806.103. Withdrawal from the Program.

§806.104. New CRPs during the TRP Period.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 24, 2026.

TRD-202601357

Les Trobman

General Counsel

Texas Workforce Commission

Earliest possible date of adoption: May 10, 2026

For further information, please call: (737) 301-9662