BILL NUMBER: AB 1508 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 18, 2016
AMENDED IN SENATE AUGUST 10, 2016
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Mullin
MARCH 4, 2015
An act to amend Section 14211 of the Unemployment Insurance Code,
relating to workforce development.
development, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1508, as amended, Mullin. Workforce investment boards: funding.
The federal Workforce Innovation and Opportunity Act of 2014
provides for workforce investment activities, including activities in
which states may participate. Existing law contains various programs
for job training and employment investment, including work incentive
programs, as specified, and establishes local workforce investment
boards to perform duties related to the implementation and
coordination of local workforce investment activities. Existing law
requires local workforce investment boards to spend a minimum
percentage of specified funds for adults and dislocated workers on
federally identified workforce training programs and allows the
boards to leverage specified funds to meet the funding requirements,
as specified. Existing law authorizes a credit of up to 10% of that
funding minimum for leveraged funds, which include Pell Grants and
employment training panel grants.
This bill would expand the types of services to which leveraged
funds may be applied to include supportive services and would expand
the types of leveraged funds that may be applied to the 10% credit,
described above, to include specified federal, local, state, and
private funds.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14211 of the Unemployment Insurance Code is
amended to read:
14211. (a) (1) Beginning program year 2012, an amount equal to at
least 25 percent of funds available under Title I of the federal
Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128)
provided to local workforce investment boards for adults and
dislocated workers shall be spent on workforce training programs.
This minimum may be met either by spending 25 percent of those base
formula funds on training or by combining a portion of those base
formula funds with leveraged funds as specified in subdivision (b).
(2) Beginning program year 2016, an amount equal to at least 30
percent of funds available under Title I of the federal Workforce
Innovation and Opportunity Act of 2014 (Public Law 113-128) provided
to local workforce development boards for adults and dislocated
workers shall be spent on workforce training programs. This minimum
may be met either by spending 30 percent of those base formula funds
on training or by combining a portion of those base formula funds
with leveraged funds as specified in subdivision (b).
(3) Except as provided in subdivision (b), expenditures that shall
count toward the minimum percentage of funds shall include only
training services as defined in Section 3174(c)(3)(D) of Title 29 of
the United States Code and the corresponding sections of the Code of
Federal Regulations, including all of the following:
(A) Occupational skills training, including training for
nontraditional employment.
(B) On-the-job training.
(C) Programs that combine workplace training with related
instruction, which may include cooperative education programs.
(D) Training programs operated by the private sector.
(E) Skill Skills upgrading and
retraining.
(F) Entrepreneurial training.
(G) Incumbent worker training in accordance with Section 3174(d)
(4) of Title 29 of the United States Code.
(H) Transitional jobs in accordance with Section 3174(d)(5) of
Title 29 of the United States Code.
(I) Job readiness training provided in combination with any of the
services described in subparagraphs (A) to (H), inclusive.
(J) Adult education and literacy activities provided in
combination with services described in any of subparagraphs (A) to
(G), inclusive.
(K) Customized training conducted with a commitment by an employer
or group of employers to employ an individual upon successful
completion of the training.
(b) (1) Local workforce development boards may receive a credit of
up to 10 percent of their adult and dislocated worker formula fund
base allocations for public education and training funds and private
resources from industry and from joint labor-management trusts that
are leveraged by a local workforce development board for training
services described in paragraph (3) of subdivision (a). This credit
may be applied toward the minimum training requirements in paragraphs
(1) and (2) of subdivision (a).
(A) Leveraged funds that may be applied toward the credit allowed
by this subdivision shall include the following:
(i) Federal Pell Grants established under Title IV of the federal
Higher Education Act of 1965 (20 U.S.C. Sec. 1070 et seq.).
(ii) Programs authorized by the federal Workforce Innovation and
Opportunity Act of 2014 (Public Law 113-128).
(iii) Trade adjustment assistance.
(iv) Department of Labor National Emergency Grants.
(v) Match funds from employers, industry, and industry
associations.
(vi) Match funds from joint labor-management trusts.
(vii) Employment training panel grants.
(viii) Supportive services as defined by the federal Workforce
Innovation and Opportunity Act of 2014 (Public Law 113-128) and the
corresponding sections of the Code of Federal Regulations, but only
for those individuals enrolled in training services, as defined in
Section 3174(c)(3)(D) of Title 29 of the United States Code and the
corresponding sections of the Code of Federal Regulations.
(ix) Temporary Assistance for Needy Families (TANF) funds spent on
supportive services, as defined by the federal Workforce Innovation
and Opportunity Act of 2014 (Public Law 113-128) and the
corresponding sections of the Code of Federal Regulations, for TANF
enrolled individuals coenrolled in and receiving training services
through the federal Workforce Innovation and Opportunity Act of 2014.
(x) Temporary Assistance for Needy Families (TANF) funds spent on
transitional and subsidized employment for TANF enrolled individuals
coenrolled in and receiving training services through the federal
Workforce Innovation and Opportunity Act of 2014.
(xi) Any other local, state, or federal funds spent on training or
supportive services for individuals enrolled in training provided
the individuals receiving the training are enrolled in the federal
Workforce Innovation and Opportunity Act of 2014 for performance
reporting and tracking purposes.
(xii) With the approval of the state board, any other public or
private funds source not identified in this subparagraph that is used
to provide training or supportive services for individuals who are
also enrolled in training provided the individuals receiving the
relevant services are enrolled in the federal Workforce Innovation
and Opportunity Act of 2014 for performance reporting and tracking
purposes.
(B) Credit for leveraged funds shall only be given if the local
workforce development board keeps records of all training and
supportive services expenditures it chooses to apply to the credit.
Training and supportive services expenditures may only be applied to
the credit if the relevant costs can be independently verified by the
Employment Development Department and, without exception, training
participants must be coenrolled in the federal Workforce Innovation
and Opportunity Act of 2014 performance monitoring system.
(2) The use of leveraged funds to partially meet the training
requirements specified in paragraphs (1) and (2) of subdivision (a)
is the prerogative of a local workforce development board. Costs
arising from the recordkeeping required to demonstrate compliance
with the leveraging requirements of this subdivision are the
responsibility of the local board.
(c) Beginning program year 2012, the Employment Development
Department shall calculate for each local workforce development
board, within six months after the end of the second program year of
the two-year period of availability for expenditure of federal
Workforce Innovation and Opportunity Act of 2014 funds, whether the
local workforce development board met the requirements of subdivision
(a). The Employment Development Department shall provide to each
local workforce development board its individual calculations with
respect to the expenditure requirements of subdivision (a).
(d) A local workforce development area that does not meet the
requirements of subdivision (a) shall submit a corrective action plan
to the Employment Development Department that provides reasons for
not meeting the requirements and describes actions taken to address
the identified expenditure deficiencies. A local workforce
development area shall provide a corrective action plan to the
Employment Development Department pursuant to this section within 90
days of receiving the calculations described in subdivision (c).
(e) For the purpose of this section, "program year" has the same
meaning as provided in Section 667.100 of Title 20 of the Code of
Federal Regulations.
SEC. 2. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
Making these changes to the training mandate immediately ensures
that they are enacted before the local workforce development boards
are required to submit their local and regional plans, due March
2017. Timely submission of these plans is critical to the provision
of services that provide access to job, skill development, and
business services vital to the social and economic well-being of
communities in the state.