BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1320 (Fong)
Hearing Date: 8/2/2010 Amended: 7/2/2009
Consultant: Bob Franzoia Policy Vote: L&IR 4-2
_________________________________________________________________
____
BILL SUMMARY: AB 1320 would, beginning January 1, 2012, create a
Lifelong Learning Accounts Initiative Program for the purpose of
providing grants to employers and employees to be used to
establish individual lifelong learning accounts (LLAs) for the
deposit to be used by those employees and employers for the
purposes related to lifelong education and training. This bill
would require the Employment Development Department (EDD) to
establish a grant program and report on the effectiveness of the
program. This bill shall only be implemented if the Director of
Finance makes a written determination that there are sufficient
funds from non General Fund sources available for the purposes
of the bill.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Lifelong learning program
- EDD program administration $200 to $400 or more annually,
ongoing Special*
- Program grants Unknown costs annually, ongoing Special*
* Lifelong Learning Program Fund: consisting of contributions
from individuals, foundations, non profit organization
businesses and federal funds, General Funds would be prohibited
_________________________________________________________________
____
STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
An LLA is an account held by a trustee, custodian or fiduciary
approved by EDD to be used for the deposit of funds to pay for
qualified expenses such as fees, tuition, or other materials
related to career training and education.
Under this program, an employee shall be eligible to receive a
grant fund match of up to 50 percent of the first $500 that the
employee contributes into his or her LLA for a maximum amount
not to exceed $250. An employee may also be eligible for a
match of up to 50 percent of the first $500 contributed, on the
employee's behalf, by his or her employer, for a maximum not to
exceed $250. The maximum total amount of the grant fund match
that could be received by an individual employee, during a
single tax year, is $500. Matching funds will be available
based on an EDD determination that there are sufficient funds to
cover program costs.
The EDD would be required to consult with the State Treasurer
and the Scholarshare Investment Board to adopt rules and
regulations necessary to implement and administer this program.
Staff notes it is unclear from where or at what amounts
voluntary contributions would come. For every 1,000 employees
and their employers making the maximum contribution, $500,000 in
matching funds would be required.