Amended in Senate August 18, 2016

Amended in Senate August 10, 2016

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1508

Introduced by Assembly Member Mullin

March 4, 2015

An act to amend Section 14211 of the Unemployment Insurance Code, relating to workforce begin delete development. end delete begin insert development, and declaring the urgency thereof, to take effect immediately. end insert

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.

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This bill would declare that it is to take effect immediately as an urgency statute.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . 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)  begin delete Skill end delete begin insert Skills end insert 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.

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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:

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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.

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