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Bill

HB 406

Relating to notification of the execution of certain local economic development agreements by a municipality or county to local workforce development boards.

89th Legislature (2025) Introduced by Penny Morales Shaw and 1 co-sponsor

Texas municipalities and counties must notify local workforce development boards upon executing economic development agreements to improve job training alignment.

Received from the House
#citygovernment--general(i0060) #economic&industrialdevelopment--general(i0214) #labor--workforcedevelopment(i0495) #workforcedevelopmentboards(v0136)
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Bill Summary · HB 406

Legislative bill overview

HB 406 requires Texas municipalities and counties to notify local workforce development boards when they execute economic development agreements. The bill ensures that workforce boards receive timely information about local economic development deals that may affect job training and employment initiatives in their regions.

Why is this important

Workforce development boards rely on accurate, current information about economic activity to align training programs with actual job creation opportunities. Without notification requirements, boards may invest in training for sectors or skills that don't match incoming business development, creating misalignment between workforce preparation and employer needs.

Potential points of contention

  • Administrative burden: Municipalities and counties must add notification procedures to their economic development processes, potentially delaying agreement execution or requiring additional staff coordination
  • Definition ambiguity: The bill doesn't clearly specify which agreements qualify as "local economic development agreements," potentially leading to inconsistent interpretation across jurisdictions
  • Data accessibility vs. confidentiality: Economic development deals often contain proprietary business information; mandatory disclosure to workforce boards could raise concerns about confidentiality and competitive sensitivity

Compiled from official sources — confirm details with the bill’s official record.

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