BILL NUMBER: AB 923 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Fong
FEBRUARY 18, 2011
An act to add Chapter 6 (commencing with Section 14550) to
Division 7 of the Unemployment Insurance Code, relating to workforce
development.
LEGISLATIVE COUNSEL'S DIGEST
AB 923, as introduced, Fong. Workforce development: Lifelong
Learning Accounts Initiative Program.
The federal Workforce Investment Act of 1998 provides for
workforce investment activities, including activities in which states
may participate. Existing law authorizes the Employment Development
Department to administer the state unemployment insurance and the
disability compensation programs.
This bill would, beginning January 1, 2014, create the Lifelong
Learning Accounts Initiative Program, for the purpose of providing
grants to employers and employees to be used to establish individual
lifelong learning accounts, as defined, for the deposit of funds to
be used by those employees and employers for purposes related to
lifelong education and training. The bill would require the
department to establish a grant program and implement and administer
the program, as specified. The bill would establish in the State
Treasury a Lifelong Learning Program Fund to receive contributions to
be used in the program. The bill would require the department to
prepare and submit a report to specified legislative fiscal and
policy committees, evaluating the effectiveness of the program, as
prescribed. The bill would provide that its provisions shall only be
implemented if the Director of Finance makes a written determination
that there are sufficient funds from sources other than the General
Fund available for that purpose.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 6 (commencing with Section 14550) is added to
Division 7 of the Unemployment Insurance Code, to read:
CHAPTER 6. LIFELONG LEARNING ACCOUNTS INITIATIVE PROGRAM
14550. The Lifelong Learning Accounts Initiative Program is
hereby created in the department for the purpose of providing grants
to employers and employees to be used to establish individual
lifelong learning accounts for the deposit of funds to be used by
those employers and employees for purposes related to lifelong
education and training.
14550.1. For purposes of this chapter, the following terms have
the following meanings:
(a) "Department" means the California Employment Development
Department.
(b) "Employee" means a California resident who works at least 20
hours or more a week, on average, for an employer in this state.
(c) "Employer" means a person, partnership, corporation, limited
partnership, or limited liability company that retains at least one
eligible employee for six months.
(d) "Grant funds" means any award, donation, or gift from an
individual, foundation, business, or any assistance provided to this
state by the federal government.
(e) "Lifelong Learning Account" means an account held by a
trustee, custodian, fiduciary, or other person approved by the
department to be used for the deposit of funds to pay for qualified
expenses such as fees, tuition, or other materials relating to career
training and education.
(f) "Match" means moneys that will be supplied in an amount up to
the total contributed by the employee and employer.
(g) "Qualified expense" means "qualified higher education expenses"
as defined in Section 529(e) of the Internal Revenue Code.
14550.2. (a) The department shall establish a grant program to
provide grants to employees and employers to encourage those
employees and employers to save for lifelong education and training.
Under this program, an employee shall be eligible to receive a grant
fund match of up to 50 percent of the first five hundred dollars
($500) that the employee contributes into his or her Lifelong
Learning Account for a maximum amount not to exceed two hundred fifty
dollars ($250). An employee may also be eligible for a match of up
to 50 percent of the first five hundred dollars ($500) contributed,
on the employee's behalf, by his or her employer, for a maximum not
to exceed two hundred fifty dollars ($250). The maximum total amount
of the grant fund match that could be received by an individual
employee, during a single tax year, is five hundred dollars ($500).
Matching funds will be available based upon the determination by the
department that there are sufficient funds to cover program costs.
(b) The department may contract with an individual, nonprofit
organization, or other business to administer and implement the grant
program.
(c) Any employer or employee who enters into an agreement with the
department under this program may designate the account established,
pursuant to the agreement, as a Lifelong Learning Account. The
department shall ensure that the grant program complies with the
applicable requirements of Article 19 (commencing with Section 69980)
of Chapter 2 of Division 5 of Part 42 of the Education Code.
(d) The department shall make education and career advising and
other support services available to employees under the program, and
shall provide technical assistance to employers to implement the
grant program. The department may use grant funds to offset the costs
of support services, technical assistance, and program
administration. The department may limit the number of available
accounts based upon the amount of grant funds received.
(e) There shall be established in the State Treasury, a Lifelong
Learning Program Fund to receive contributions from individuals,
foundations, nonprofit organizations, businesses, and the federal
government to be used for the program.
(f) The department shall prepare and submit a report to the
Assembly Committee on Budget and the Senate Committee on Budget and
Fiscal Review, and the appropriate legislative policy committees
evaluating the effectiveness of this chapter. The report shall be
submitted to those committees at least 20 days prior to the date that
the Legislature convenes the second year of the 2015-16 Regular
Session.
(g) The department shall, after consultation with the Treasurer
and the Scholarshare Investment Board, adopt rules and regulations
that are necessary or appropriate to ensure the proper implementation
and administration of the program.
14550.3. This chapter shall become operative on January 1, 2014.
14550.4. The Lifelong Learning Accounts Initiative Program shall
only be implemented if the Director of Finance makes a written
determination that there are sufficient funds available from sources
other than the General Fund for that purpose.