10200. The Legislature finds and declares the following:
(a) California's economy is being challenged by competition from
other states and overseas. In order to meet this challenge,
California's employers, workers, labor organizations, and government
need to invest in a skilled and productive workforce, and in
developing the skills of frontline workers. For purposes of this
section, "frontline worker" means a worker who directly produces or
delivers goods or services.
The purpose of this chapter is to establish a strategically
designed employment training program to promote a healthy labor
market in a growing, competitive economy that shall fund only
projects that meet the following criteria:
(1) Foster creation of high-wage, high-skilled jobs, or foster
retention of high-wage, high-skilled jobs in manufacturing and other
industries that are threatened by out-of-state and global
competition, including, but not limited to, those industries in which
targeted training resources for California's small and medium-sized
business suppliers will increase the state's competitiveness to
secure federal, private sector, and other nonstate funds. In
addition, provide for retraining contracts in companies that make a
monetary or in-kind contribution to the funded training enhancements.
(2) Encourage industry-based investment in human resources
development that promotes the competitiveness of California industry
through productivity and product quality enhancements.
(3) Result in secure jobs for those who successfully complete
training. All training shall be customized to the specific
requirements of one or more employers or a discrete industry and
shall include general skills that trainees can use in the future.
(4) Supplement, rather than displace, funds available through
existing programs conducted by employers and government-funded
training programs, such as the Workforce Investment Act of 1998 (29
U.S.C. Sec. 2801 et seq.), the Carl D. Perkins Vocational Education
Act (P.L. 98-524), CalWORKs (Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code),
the Enterprise Zone Act (Chapter 12.8 (commencing with Section 7070)
of Division 7 of Title 1 of the Government Code), and the
McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et
seq.), the California Community Colleges Economic Development
Program, or apportionment funds allocated to the community colleges,
regional occupational centers and programs, or other local
educational agencies. In addition, it is further the intention of the
Legislature that programs developed pursuant to this chapter shall
not replace, parallel, supplant, compete with, or duplicate in any
way already existing approved apprenticeship programs.
(b) The Employment Training Panel, in funding projects that meet
the requirements of subdivision (a), shall give funding priority to
those projects that best meet the following goals:
(1) Result in the growth of the California economy by stimulating
exports from the state and the production of goods and services that
would otherwise be imported from outside the state.
(2) Train new employees of firms locating or expanding in the
state that provide high-skilled, high-wage jobs and are committed to
an ongoing investment in the training of frontline workers.
(3) Develop workers with skills that prepare them for the
challenges of a high performance workplace of the future.
(4) Train workers who have been displaced, have received
notification of impending layoff, or are subject to displacement,
because of a plant closure, workforce reduction, changes in
technology, or significantly increasing levels of international and
out-of-state competition.
(5) Are jointly developed by business management and worker
representatives.
(6) Develop career ladders for workers.
(7) Promote the retention and expansion of the state's
manufacturing workforce.
(c) The program established through this chapter is to be
coordinated with all existing employment training programs and
economic development programs, including, but not limited to,
programs such as the Workforce Investment Act of 1998 (29 U.S.C. Sec.
2801 et seq.), the California Community Colleges, the regional
occupational programs, vocational education programs, joint
labor-management training programs, and related programs under the
Employment Development Department and the Business, Transportation
and Housing Agency.
10201. As used in this chapter:
(a) "Department" means the Employment Development Department.
(b) "Employer" or "eligible employer" means any employer subject
to Part 1 (commencing with Section 100) of Division 1, except any
public entity, or any nonprofit organization which has elected an
alternate method of financing its liability for unemployment
insurance compensation benefits pursuant to Article 5 (commencing
with Section 801), or Article 6 (commencing with Section 821) of
Chapter 3.
Any public entity or nonprofit organization that has elected an
alternate method of financing its liability for unemployment
insurance compensation benefits pursuant to Article 5 (commencing
with Section 801), or Article 6 (commencing with Section 821) of
Chapter 3, shall be deemed to be an employer only for purposes of
placement of new hire trainees who received training as an incidental
part of a training project designed to meet the needs of one or more
private sector employers.
(c) "Eligible participant" means any person who, prior to
beginning training or employment pursuant to this chapter, is any of
the following:
(1) Unemployed and has established an unemployment insurance claim
in this state, or has exhausted eligibility for unemployment
insurance benefits from this state within the previous 24 months.
(2) Employed for a minimum of 90 days by his or her employer, or
if employed for less than 90 days, met the conditions of paragraph
(1) at the time of hire, had received a notice of layoff from the
prior employer, or was employed by an employer for a period of not
less than 90 days during the 180-day period prior to the employee's
current employment at the start of training with an eligible
employer, as provided in subdivision (b). The panel may waive this
requirement for trainees employed by a business locating or expanding
operations in the state, provided it is part of a state and local
economic development effort endeavoring to create or retain
California jobs. The panel may also waive the requirement for up to
10 percent of the trainee population, if it determines a business
meets standard funding requirements set out under subdivision (a) of
Section 10200.
(d) "Executive director" means the executive director appointed
pursuant to Section 10202.
(e) "Fund" means the Employment Training Fund created by Section
1610.
(f) "Job" means employment on a basis customarily considered full
time for the occupation and industry. The employment shall have
definite career potential and a substantial likelihood of providing
long-term job security, with reportable California earnings during
the employment retention period. Furthermore, the employment shall
provide earnings, upon completion of the employment requirement
specified in subdivision (f) of Section 10209, equal to 50 percent,
in the case of new hire training, or 60 percent, in the case of
retraining, of the state or regional average hourly wage. However, in
no case shall the employment result in earnings of less than 45
percent of the state average hourly wage for new hire training and 55
percent of the state average hourly wage for retraining. The panel
may consider the dollar value of health benefits that are voluntarily
paid for by an employer when computing earnings to meet the minimum
wage requirements.
(g) "New hire training" means employment training, including
job-related literacy training, for persons who, at the start of
training, are unemployed.
(h) "Panel" means the Employment Training Panel created by Section
10202.
(i) "Retraining" means employment-related skill and literacy
training for persons who are employed and who meet the definition of
paragraph (2) of subdivision (c) prior to commencement of training
and will continue to be employed by the same employer for at least 90
days following completion of training.
(j) "State average hourly wage" means the average weekly wage paid
by employers to employees covered by unemployment insurance, as
reported to the Employment Development Department for the four
calendar quarters ending June 30 of the preceding calendar year,
divided by 40 hours.
(k) "Trainee" means an eligible participant.
(l) "Training agency" means any private training entity or local
educational agency.
10201.5. With respect to funding appropriated in the annual Budget
Act to the Employment Development Department for allocation by the
Employment Training Panel and identified for training of workers in
regions suffering from high unemployment and low job creation,
including the working poor, the panel, notwithstanding subdivision
(g) of Section 10201, may waive the minimum wage requirements
included in that subdivision provided that the post-retention wage of
each trainee who has completed training and the required training
period exceeds his or her wage before and during training. This
determination shall be made on a case-by-case basis to ensure that
post-training improvements in earnings are sufficient to warrant the
investment of public funds.
10202. (a) The Employment Training Panel is established in the
Employment Development Department.
(b) The executive director shall be appointed by the Governor, and
shall be well qualified for the position with experience in
government. The executive director may perform all duties, exercise
all powers, discharge all responsibilities, and administer and
enforce all laws, rules, and regulations under the jurisdiction of
the panel, with the approval of the panel. The executive director
shall administer this chapter, with the approval of the panel, in the
manner he or she deems necessary to conduct the work of the panel
properly. With the approval of the panel, the executive director may
create divisions and subdivisions as necessary, and change and
abolish these divisions and subdivisions from time to time.
(c) The panel may employ personnel necessary to carry out the
purposes of this chapter. All personnel shall be appointed pursuant
to the State Civil Service Act (Part 1 (commencing with Section
18000) of Division 5 of Title 2 of the Government Code), except for
an executive director, and two assistant directors, who shall be
exempt from state civil service.
(d) All personnel of the panel shall be appointed, directed, and
controlled only by the panel or its authorized deputies or agents to
whom it may delegate its powers.
(e) The Governor shall appoint two assistant directors, to serve
at the pleasure of the Governor. The assistant directors shall have
the duties as assigned by the executive director, and shall be
responsible to the executive director for the performance of their
duties.
10202.5. (a) The panel shall consist of eight persons, seven of
whom shall be appointed as provided in subdivision (b), and shall
have experience and a demonstrated interest in business management
and employment relations. The Secretary of Business, Transportation
and Housing, or his or her designee, shall also serve on the panel as
an ex officio, voting member.
(b) (1) Two members of the panel shall be appointed by the Speaker
of the Assembly. One of those members shall be a private sector
labor representative and the other member shall be a business
representative.
(2) Two members of the panel shall be appointed by the President
pro Tempore of the Senate. One of those members shall be a private
sector labor representative and the other member shall be a business
representative.
(3) Three members of the panel shall be appointed by the Governor.
One of those members shall be a private sector labor representative,
one member shall be a business representative, and one member shall
be a public member.
(4) Labor appointments shall be made from nominations from state
labor federations. Business appointments shall be made from
nominations from state business organizations and business trade
associations.
(5) The Governor shall designate a member to chair the panel, and
the person so designated shall serve as the chair of the panel at the
pleasure of the Governor.
(c) The appointive members of the panel shall serve for two-year
terms.
(d) Appointive members of the panel shall receive the necessary
traveling and other expenses incurred by them in the performance of
their official duties out of appropriations made for the support of
the panel. In addition, each appointive member of the panel shall
receive one hundred dollars ($100) for each day attending meetings of
the panel, and may receive one hundred dollars ($100) for each day
spent conducting other official business of the panel, but not
exceeding a maximum of three hundred dollars ($300) per month.
10203. The panel may meet as necessary at locations throughout the
state. The panel shall maintain a minimum of three regional offices.
The central office shall be located in Sacramento. Two regional
offices shall be located in the southern part of the state, and one
regional office shall be located in the northern part of the state.
The executive director will assign one person, with experience in
meeting the needs of small businesses, to each of the regional
offices for the purpose of developing training projects for small
businesses and expediting the processing of training proposals from
small businesses.
10204. The panel shall coordinate its programs with local and state
workforce investment boards and other partners of the federal
Workforce Investment Act of 1998. This coordination shall include,
but not be limited to, the adoption of a plan, including regular
sharing of data, for the coordination of training authorized pursuant
to this chapter with programs administered under Division 8
(commencing with Section 15000).
10205. The panel shall do all of the following:
(a) Establish a three-year plan that shall be updated annually,
based on the demand of employers for trained workers, changes in the
state's economy and labor markets, and continuous reviews of the
effectiveness of panel training contracts. The updated plan shall be
submitted to the Governor and the Legislature not later than January
1 of each year. In carrying out this section, the panel shall review
information in the following areas:
(1) Labor market information, including the state-local labor
market information program in the Employment Development Department,
the California Economic Strategy Panel, and other relevant regional
or statewide initiatives and collaboratives.
(2) Evaluations of the effectiveness of training as measured by
increased security of employment for workers and benefits to the
California economy.
(3) The demand for training by industry, type of training, and
size of employer.
(4) Changes in skills necessary to perform jobs, including changes
in basic literacy skills.
(5) Changes in the demographics of the labor force and the
population entering the labor market.
(6) Proposed expenditures by other agencies of federal Workforce
Investment Act funds and other state and federal training and
vocational education funds on eligible participants.
(b) Maintain a system to continuously monitor economic and other
data required under this plan. If this data changes significantly
during the life of the plan, the plan shall be amended by the panel.
Each plan shall include all of the following:
(1) The panel's objectives with respect to the criteria and
priorities specified in Section 10200 and the distribution of funds
between new-hire training and retraining.
(2) The identification of specific industries, production and
quality control techniques, and regions of the state where employment
training funds would most benefit the state's economy and plans to
encourage training in these areas, including specific standards and a
system for expedited review of proposals that meet the standards.
(3) A system for expedited review of proposals that are
substantially similar with respect to employer needs, training
curriculum, duration of training, and costs of training, in order to
encourage the development of proposals that meet the needs identified
in paragraph (2).
(4) The panel's goals, operational objectives, and strategies to
meet the needs of small businesses, including, but not limited to,
those small businesses with 100 or fewer employees. These strategies
proposed by the panel may include, but not be limited to, pilot
demonstration projects designed to identify potential barriers that
small businesses may experience in accessing panel programs and
workforce training resources, including barriers that may exist
within small businesses.
(5) The research objectives of the panel that contribute to the
effectiveness of this chapter in benefiting the economy of the state
as a whole.
(6) A priority list of skills or occupations that are in such
short supply that employers are choosing to not locate or expand
their businesses in the state or are importing labor in response to
these skills shortages.
(7) A review of the panel's efforts to coordinate with the
California Workforce Investment Board and local boards to achieve an
effective and coordinated approach in the delivery of the state's
workforce resources.
(A) The panel will consider specific strategies to achieve this
goal that include the development of initiatives to engage local
workforce investment boards in enhancing the utilization of panel
training resources by companies in priority sectors, special
populations, and in geographically underserved areas of the state.
(B) Various approaches to foster greater program integration
between workforce investment boards and the panel will also be
considered, which may include marketing agreements, expanded
technical assistance, modification of program regulations and policy,
and expanded use of multiple employer contracts.
(c) Solicit proposals and write contracts on the basis of
proposals made directly to it. Contracts for the purpose of providing
employment training may be written with any of the following:
(1) An employer or group of employers.
(2) A training agency.
(3) A local workforce investment board with the approval of the
appropriate local elected officials in the local workforce investment
area.
(4) A grant recipient or administrative entity selected pursuant
to the federal Workforce Investment Act of 1998, with the approval of
the local workforce investment board and the appropriate local
elected officials.
These contracts shall be in the form of fixed-fee performance
contracts. Notwithstanding any provision of law to the contrary,
contracts entered into pursuant to this chapter shall not be subject
to competitive bidding procedures. Contracts for training may be
written for a period not to exceed 24 months for the purpose of
administration by the panel and the contracting employer or any group
of employers acting jointly or any training agency for the purpose
of providing employment training.
(d) Fund training projects that best meet the priorities
identified annually. In doing so, the panel shall seek to facilitate
the employment of the maximum number of eligible participants.
(e) Establish minimum standards for the consideration of
proposals, which shall include, but not be limited to, evidence of
labor market demand, the number of jobs available, the skill
requirements for the identified jobs, the projected cost per person
trained, hired, and retained in employment, the wages paid successful
trainees upon placement, and the curriculum for the training. No
proposal shall be considered or approved that proposes training for
employment covered by a collective bargaining agreement unless the
signatory labor organization agrees in writing.
(f) Ensure the provision of adequate fiscal and accounting
controls for, monitoring and auditing of, and other appropriate
technical and administrative assistance to, projects funded by this
chapter.
(g) Provide for evaluation of projects funded by this chapter. The
evaluations shall assess the effectiveness of training previously
funded by the panel to improve job security and stability for
workers, and benefit participating employers and the state's economy,
and shall compare the wages of trainees in the 12-month period prior
to training as well as the 12-month period subsequent to completion
of training, as reflected in the department's unemployment insurance
tax records. Individual project evaluations shall contain a summary
description of the project, the number of persons entering training,
the number of persons completing training, the number of persons
employed at the end of the project, the number of persons still
employed three months after the end of the project, the wages paid,
the total costs of the project, and the total reimbursement received
from the Employment Training Fund.
(h) Report annually to the Legislature, by November 30, on
projects operating during the previous state fiscal year. These
annual reports shall provide separate summaries of all of the
following:
(1) Projects completed during the year, including their individual
and aggregate performance and cost.
(2) Projects not completed during the year, briefly describing
each project and identifying approved contract amounts by contract
and for this category as a whole, and identifying any projects in
which funds are expected to be disencumbered.
(3) Projects terminated prior to completion and the reasons for
the termination.
(4) A description of the amount, type, and effectiveness of
literacy training funded by the panel.
(5) Results of complete project evaluations.
(6) A description of pilot projects, and the strategies that were
identified through these projects, to increase access by small
businesses to panel training contracts.
(7) A listing of training projects that were funded in high
unemployment areas and a detailed description of the policies and
procedures that were used to designate geographic regions and
municipalities as high unemployment areas.
In addition, based upon its experience in administering job
training projects, the panel shall include in these reports policy
recommendations concerning the impact of job training and the panel's
program on economic development, labor-management relations,
employment security, and other related issues.
(i) Conduct ongoing reviews of panel policies with the goal of
developing an improved process for developing, funding, and
implementing panel contracts as described in this chapter.
(j) Expedite the processing of contracts for firms considering
locating or expanding businesses in the state, in accordance with the
priorities for employment training programs set forth in subdivision
(b) of Section 10200.
(k) Coordinate and consult regularly with business groups and
labor organizations, the California Workforce Investment Board, the
State Department of Education, the office of the Chancellor of the
California Community Colleges, and the Employment Development
Department.
(l) Adopt by regulation procedures for the conduct of panel
business, including the scheduling and conduct of meetings, the
review of proposals, the disclosure of contacts between panel members
and parties at interest concerning particular proposals, contracts
or cases before the panel or its staff, the awarding of contracts,
the administration of contracts, and the payment of amounts due to
contractors. All decisions by the panel shall be made by resolution
of the panel and any adverse decision shall include a statement of
the reason for the decision.
(m) Adopt regulations and procedures providing reasonable
confidentiality for the proprietary information of employers seeking
training funds from the panel if the public disclosure of that
information would result in an unfair competitive disadvantage to the
employer supplying the information. The panel may not withhold
information from the public regarding its operations, procedures, and
decisions that would otherwise be subject to disclosure under the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code).
(n) Review and comment on the budget and performance of any
program, project, or activity funded by the panel utilizing funds
collected pursuant to Section 976.6.
10206. (a) The panel may allocate money in the fund for any of the
following purposes:
(1) Reimbursement of reasonable training costs, and administrative
costs incurred by contractors. In making a determination of costs to
be reimbursed under this paragraph, the panel may allocate funds in
accordance with any of the following methods:
(A) For purposes of providing simplified fixed-fee performance
contracts, a flat rate per hour for categories of training that are
substantially similar with respect to content, methodology, and
duration, as determined by the panel, not to exceed the reasonable
and normal costs for the training. The panel shall periodically
adjust the standardized rates established pursuant to this paragraph
to reflect changes in training costs.
(B) A complete review of the proposal and its costs, including a
budget listing the planned costs of training, including personnel,
fringe benefits, equipment, supplies, fees for consulting or
administrative services, and other costs attributable to training;
the services provided by subcontractors; the length and complexity of
the training; the method of training; the wages and occupations
following training; whether the trainees are new hires or retrainees;
and the cost of similar training that the panel has funded
previously. The cost of administration shall not exceed 15 percent of
the training costs under this paragraph, except that for new hire
training the panel may fund administrative costs of up to 25 percent
of the training cost.
(C) The panel may modify the specific requirements of this
paragraph as they apply to employers or contractors proposing
projects that involve training for a significant number of small
employers in the same project.
(D) A contractor is prohibited from utilizing any funds earned or
paid as advances or progress payments for the purpose of making
payments to any other individual or entity, either directly or
indirectly, for costs incurred as a finder's fee or for other
compensation related to the predevelopment or development phase of a
training program, which is based on a percentage of the preliminary
or final panel award to the contractor for the training project.
(2) (A) Costs of program administration incurred under this
chapter. These costs shall be reviewed annually by the Department of
Finance and the Legislature and determined through the normal
budgetary process.
(B) The panel's administrative costs, exclusive of the cost of
administering Section 976.6, shall not exceed 15 percent of the total
amount annually appropriated for expenditure by the panel.
Expenditures for marketing, research, and evaluations provided under
the contract to the panel that otherwise would have been provided
directly by the panel shall not be included in this limitation.
(3) Service related to the purposes of this chapter provided by
the Small Business Development Centers.
(b) For all training contracts, the panel shall establish
requirements for in-kind contributions by either the contractor or
the employer that reflect a substantial commitment on the part of the
contractor or the employer to the value of the training. In
developing these requirements, the panel shall take into account the
ability of the contractor or the employer, because of size or
financial condition, to make any contribution, and the ability of the
Employment Training Fund to meet the demand for training authorized
by this chapter. In developing policies regarding in-kind
contributions, the panel shall hold public hearings.
10207. (a) The panel shall accept or reject a completed application
within 60 days of the receipt by the executive director.
(b) The panel shall develop expedited procedures for reviewing
proposals submitted by the state agencies which are participants in a
special interagency agreement with the panel for purposes of this
chapter.
10208. Nothing in this chapter shall be construed to preclude any
employer from contracting with any public or private training entity
for services, subject to the approval of the panel.
10209. (a) Contracts shall only be made for training in job-related
vocational skills that are necessary for participants to attain a
new job or retain an existing job with definite career potential and
long-term job security. The contracts for vocational skills training
may include ancillary training for job-related basic and literacy
skills training if the panel finds that the training is necessary to
achieve the objectives of the vocational training.
(b) The panel shall not approve any training proposal which
facilitates the change in ownership of a business leading to the
likelihood that an existing collective bargaining agreement would be
declared void.
(c) To encourage a broad and equitable distribution of funds, the
panel may require an employer who has previously received funds
pursuant to this chapter for retraining of workers at a facility to
contribute proportionately more to the cost of training in subsequent
panel contracts for training of workers at the same facility.
(d) The panel may delegate to the executive director the authority
to approve training contracts of up to one hundred thousand dollars
($100,000), provided the contracts meet the requirements of this
chapter and the policies established by the panel, and provided that
the panel regularly reviews the actions taken by the executive
director pursuant to this subdivision.
(e) Payments shall be made in accordance with a performance
contract under which partial payments may be made during training, a
partial payment may be made on placement or retention of each
trainee, and not less than 25 percent of the negotiated fee is
withheld until the trainee has been retained in employment for 90
days after the end of training with a single employer, except for
those occupations in which it is not customary for a worker to be
employed 90 consecutive days with a single employer. In these latter
cases, the panel may substitute a period similar to the probationary
period customary to the occupation. The probationary period shall not
be less than 500 work hours and shall be completed within 272 days
of the completion of the training. In no case shall any payment be
considered to have been earned until the trainee has been retained in
employment for 90 days or the equivalent probationary period for an
occupation in which it is not customary for a worker to be employed
90 consecutive days with a single employer.
(f) Contracts for new hire training shall require the contractor
to provide the placement services necessary to ensure the trainees
are placed in jobs for which they have been trained.
10210. Contracts shall be made with training agencies only if the
training agency can demonstrate all of the following:
(a) The training agency has a satisfactory record of past
performance in the placement and retention of former trainees and
employer satisfaction with former trainees.
(b) The training agency can demonstrate labor market demand for
the proposed training. Proof shall include, but not be limited to,
the documented need of specific employers for the workers proposed to
be trained in the skills proposed by the training agency.
(c) The training agency can demonstrate that the training prepares
trainees in a manner satisfactory to employers.
(d) The training agency can demonstrate that its accounting
systems include controls adequate to check the accuracy and
reliability of accounting data, promote operating efficiency, and
assure compliance with government requirements and generally accepted
accounting principles. The panel shall have full access at any time
to these accounting systems to assure compliance with these
standards.
10211. A trainee or employee participating in a training program
pursuant to this chapter shall be considered to be in a training
program having the approval of the director under Article 1.5
(commencing with Section 1266) of Chapter 5 of Part 1 of Division 1.
10212.2. The panel shall prepare a budget covering necessary
administrative costs of the panel. The budget shall not be subject to
change by the director except as agreed to by the panel. In the
event that agreement cannot be reached, the Secretary of the Labor
and Workforce Development Agency shall attempt to reach a mutual
agreement. In the event a mutual agreement cannot be reached, the
final decision shall rest with the Governor.
10213. The Employment Development Department shall cooperate with
the panel by offering necessary technical assistance, which may
include, but is not limited to, labor market information, projections
of occupational demand, and information and advice on alternative
training strategies.
10214. To assist the panel and the Legislature in assessing the
impact of this chapter over an extended period of time, the
Employment Development Department shall develop and maintain a
continuous employment, wage, and benefit history of unemployment
insurance participants.
10214.5. (a) The panel may allocate up to 15 percent of the
annually available training funds for the purpose of funding special
employment training projects that improve the skills and employment
security of frontline workers, as defined in subdivision (a) of
Section 10200. Notwithstanding any other provision of this chapter,
participants in these projects are not required to meet the
eligibility criteria set forth in paragraph (1) of subdivision (a) of
Section 10200 or subdivision (c) of Section 10201.
(b) The panel shall, on an annual basis, identify industries and
occupations that shall be priorities for funding under this section.
Training shall be targeted to frontline workers who earn at least the
state average hourly wage.
(c) The panel may waive the minimum wage provisions pursuant to
subdivision (f) of Section 10201 for projects in regions of the state
where the unemployment rate is significantly higher than the state
average, and may waive the employment retentions provisions specified
in subdivision (f) of Section 10209 and instead require that the
trainee has been retained in employment for a minimum of 90 days out
of 120 consecutive days after the end of training with no more than
three employers.
(d) (1) The panel may allocate funds pursuant to subdivision (a)
to increase the productivity and extended employment retention of
workers in the state's major seasonal industries.
(2) In funding special employment training projects for this
purpose, the panel may do all of the following:
(A) When the amount of the postretention wages of each trainee who
has completed training exceeds the amount of wages that the trainee
earned before and during training, waive the minimum wage
requirements set forth in subdivision (f) of Section 10201.
(B) Waive the employment retention requirements set forth in
subdivision (f) of Section 10209 and instead require that the trainee
be retained in employment for not less than 500 hours within the
12-month period following the completion of the training.
(C) When the panel finds that the training is necessary to achieve
the objectives of vocational training, waive the limitation on
job-related basic and literacy skills training set forth in
subdivision (a) of Section 10209.
(3) For purposes of this section, "major seasonal industries"
means eligible employers who satisfy all of the following
requirements:
(A) Have a workforce comprised of at least 50 percent of workers
whose employment period is necessarily cyclical, including, but not
limited to, businesses directly involved in the harvesting, packing,
or processing of goods or products.
(B) Have retained at least 50 percent of the same seasonal
employees for at least one season of not less than 500 hours for the
preceding 12-month period.
(C) Pay wages and provide benefits that exceed industry averages.
(e) The panel shall adopt minimum standards for consideration of
proposals to be funded pursuant to this section.
(f) The panel may select contracts funded under this section based
on competitive bidding.
(g) It is the intent of the Legislature in providing the authority
for these projects that the panel allocate these funds in a manner
consistent with the objectives of this chapter as provided in Section
10200.
10214.6. (a) The panel shall establish the Partnership for
Workforce Recovery Training (PWRT) for the purposes of supporting and
implementing the workforce development goals set forth in the
federal American Recovery and Reinvestment Act of 2009 (ARRA) (P.L.
111-5). The panel shall develop and publish guidelines for
implementation of the PWRT, consistent with, and including adequate
fiscal and accounting controls, as prescribed in subdivision (g) of
Section 10205.
(b) The panel may allocate any funds it receives pursuant to the
federal Workforce Investment Act of 1998 (29 U.S.C. Sec. 2801 et
seq.) and the ARRA to support the activities of the PWRT. Any funds
received by the panel pursuant to this section shall be deposited
into a separate account established by the department in the State
Treasury, and used for the purposes of this section.
(c) The panel may adopt any regulations necessary to implement
this section, but any regulations so adopted are exempt from the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
(d) The panel may solicit proposals and enter into contracts or
other agreements to secure funding for the purposes of this section,
but those proposals, contracts, and agreements shall be exempt from
any competitive bidding requirements otherwise prescribed in statute.
10214.7. The panel shall allocate funds available in the annual
Budget Act for training programs designed for individuals who are
eligible to receive benefits under Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code
or who have received CalWORKs benefits within one year of the
commencement of the training program.
(a) It is the intent of the Legislature in providing authority for
these training programs that the panel allocate these funds in a
manner consistent with the objectives of this chapter as provided in
Section 10200.
(b) Notwithstanding any other provisions of this chapter, the
eligibility criteria for individuals trained under this section shall
be employment with an eligible employer as defined in subdivision
(a) of Section 10201 and:
(1) Receipt of CalWORKs benefits at the time training begins, or
(2) Receipt of CalWORKs benefits within one year of the time
training commenced.
(c) For purposes of this section, the panel may waive, if
necessary, any of the following:
(1) The employer eligibility criteria outlined in paragraph (1) of
subdivision (a) of Section 10200.
(2) The minimum training wage requirements pursuant to subdivision
(g) of Section 10201.
(3) The employment retention provisions specified in subdivision
(f) of Section 10209 and instead require that the trainee has been
retained in employment for a minimum of 90 days out of 120
consecutive days after the end of training with no more than three
employers.
(d) Notwithstanding any other provisions of this chapter, the
panel shall consider proposals that use innovative strategies and
training options to enable current and prior CalWORKs recipients and
eligibles to retain employment, including, but not limited to,
projects that provide basic skills training.
(e) The panel shall adopt administrative procedures for approving
and administering contracts under this section to expedite contracts,
minimize barriers to completion of training, and facilitate the
training of single trainees and small groups of trainees from one
worksite.
10214.9. (a) (1) The panel may fund licensed nurse training
programs to train individuals who are currently working as nurse
assistants or caregivers in a health facility, as defined in Section
1250 of the Health and Safety Code.
(2) It is the intent of the Legislature that the panel allocate
these funds in a manner consistent with the objectives of this
chapter as provided in Section 10200.
(b) Notwithstanding any other provisions of this chapter, the
panel shall waive the minimum wage provisions, pursuant to
subdivision (f) of Section 10201, if all of the following conditions
are met:
(1) The employee is enrolled in an approved licensed nurse
training program that consists of not less than 1,000 hours of
training.
(2) The employer pays the employee not less than 120 percent of
the state minimum wage for not less than the first 20 hours of work
per week during each week the employee is enrolled in the training
program.
(3) Each program results in full-time employment customary for the
occupation for which the individuals are being trained.
(c) Notwithstanding any other provisions of this chapter, the
panel shall waive any limitation on the hourly length of training
programs to allow approval and funding for up to 750 hours of a
licensed nurse training program; provided, however, that those funds
be used to pay for up to 750 training hours that remain in the
licensed nurse training program after the employee has completed the
first 800 hours of that program.
(d) Notwithstanding any other provision of this chapter, employers
that participate in the nurse training programs funded pursuant to
this section, are not required to meet the eligibility criteria set
forth in paragraph (1) of subdivision (a) of Section 10200.
10215. The funding of individual project grants by the panel may
take the form of either direct grants to the employer or training
agency, or credits to the employer's liability for unemployment
insurance contributions or reimbursements. Credits to the employer's
liability for unemployment insurance contributions or reimbursements
shall be drawn from the Employment Training Fund.
10217. Funds in the Employment Training Fund created by Section
1610 shall be appropriated annually in the Budget Act by the
Legislature for allocation by the panel for the purposes of this
chapter, except those funds determined by the Legislature to be
necessary to administer Section 976.6 and Article 6 (commencing with
Section 1610) of Chapter 6 of Part 1 of Division 1 shall be
appropriated to the department.
10200. The Legislature finds and declares the following:
(a) California's economy is being challenged by competition from
other states and overseas. In order to meet this challenge,
California's employers, workers, labor organizations, and government
need to invest in a skilled and productive workforce, and in
developing the skills of frontline workers. For purposes of this
section, "frontline worker" means a worker who directly produces or
delivers goods or services.
The purpose of this chapter is to establish a strategically
designed employment training program to promote a healthy labor
market in a growing, competitive economy that shall fund only
projects that meet the following criteria:
(1) Foster creation of high-wage, high-skilled jobs, or foster
retention of high-wage, high-skilled jobs in manufacturing and other
industries that are threatened by out-of-state and global
competition, including, but not limited to, those industries in which
targeted training resources for California's small and medium-sized
business suppliers will increase the state's competitiveness to
secure federal, private sector, and other nonstate funds. In
addition, provide for retraining contracts in companies that make a
monetary or in-kind contribution to the funded training enhancements.
(2) Encourage industry-based investment in human resources
development that promotes the competitiveness of California industry
through productivity and product quality enhancements.
(3) Result in secure jobs for those who successfully complete
training. All training shall be customized to the specific
requirements of one or more employers or a discrete industry and
shall include general skills that trainees can use in the future.
(4) Supplement, rather than displace, funds available through
existing programs conducted by employers and government-funded
training programs, such as the Workforce Investment Act of 1998 (29
U.S.C. Sec. 2801 et seq.), the Carl D. Perkins Vocational Education
Act (P.L. 98-524), CalWORKs (Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code),
the Enterprise Zone Act (Chapter 12.8 (commencing with Section 7070)
of Division 7 of Title 1 of the Government Code), and the
McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et
seq.), the California Community Colleges Economic Development
Program, or apportionment funds allocated to the community colleges,
regional occupational centers and programs, or other local
educational agencies. In addition, it is further the intention of the
Legislature that programs developed pursuant to this chapter shall
not replace, parallel, supplant, compete with, or duplicate in any
way already existing approved apprenticeship programs.
(b) The Employment Training Panel, in funding projects that meet
the requirements of subdivision (a), shall give funding priority to
those projects that best meet the following goals:
(1) Result in the growth of the California economy by stimulating
exports from the state and the production of goods and services that
would otherwise be imported from outside the state.
(2) Train new employees of firms locating or expanding in the
state that provide high-skilled, high-wage jobs and are committed to
an ongoing investment in the training of frontline workers.
(3) Develop workers with skills that prepare them for the
challenges of a high performance workplace of the future.
(4) Train workers who have been displaced, have received
notification of impending layoff, or are subject to displacement,
because of a plant closure, workforce reduction, changes in
technology, or significantly increasing levels of international and
out-of-state competition.
(5) Are jointly developed by business management and worker
representatives.
(6) Develop career ladders for workers.
(7) Promote the retention and expansion of the state's
manufacturing workforce.
(c) The program established through this chapter is to be
coordinated with all existing employment training programs and
economic development programs, including, but not limited to,
programs such as the Workforce Investment Act of 1998 (29 U.S.C. Sec.
2801 et seq.), the California Community Colleges, the regional
occupational programs, vocational education programs, joint
labor-management training programs, and related programs under the
Employment Development Department and the Business, Transportation
and Housing Agency.
10201. As used in this chapter:
(a) "Department" means the Employment Development Department.
(b) "Employer" or "eligible employer" means any employer subject
to Part 1 (commencing with Section 100) of Division 1, except any
public entity, or any nonprofit organization which has elected an
alternate method of financing its liability for unemployment
insurance compensation benefits pursuant to Article 5 (commencing
with Section 801), or Article 6 (commencing with Section 821) of
Chapter 3.
Any public entity or nonprofit organization that has elected an
alternate method of financing its liability for unemployment
insurance compensation benefits pursuant to Article 5 (commencing
with Section 801), or Article 6 (commencing with Section 821) of
Chapter 3, shall be deemed to be an employer only for purposes of
placement of new hire trainees who received training as an incidental
part of a training project designed to meet the needs of one or more
private sector employers.
(c) "Eligible participant" means any person who, prior to
beginning training or employment pursuant to this chapter, is any of
the following:
(1) Unemployed and has established an unemployment insurance claim
in this state, or has exhausted eligibility for unemployment
insurance benefits from this state within the previous 24 months.
(2) Employed for a minimum of 90 days by his or her employer, or
if employed for less than 90 days, met the conditions of paragraph
(1) at the time of hire, had received a notice of layoff from the
prior employer, or was employed by an employer for a period of not
less than 90 days during the 180-day period prior to the employee's
current employment at the start of training with an eligible
employer, as provided in subdivision (b). The panel may waive this
requirement for trainees employed by a business locating or expanding
operations in the state, provided it is part of a state and local
economic development effort endeavoring to create or retain
California jobs. The panel may also waive the requirement for up to
10 percent of the trainee population, if it determines a business
meets standard funding requirements set out under subdivision (a) of
Section 10200.
(d) "Executive director" means the executive director appointed
pursuant to Section 10202.
(e) "Fund" means the Employment Training Fund created by Section
1610.
(f) "Job" means employment on a basis customarily considered full
time for the occupation and industry. The employment shall have
definite career potential and a substantial likelihood of providing
long-term job security, with reportable California earnings during
the employment retention period. Furthermore, the employment shall
provide earnings, upon completion of the employment requirement
specified in subdivision (f) of Section 10209, equal to 50 percent,
in the case of new hire training, or 60 percent, in the case of
retraining, of the state or regional average hourly wage. However, in
no case shall the employment result in earnings of less than 45
percent of the state average hourly wage for new hire training and 55
percent of the state average hourly wage for retraining. The panel
may consider the dollar value of health benefits that are voluntarily
paid for by an employer when computing earnings to meet the minimum
wage requirements.
(g) "New hire training" means employment training, including
job-related literacy training, for persons who, at the start of
training, are unemployed.
(h) "Panel" means the Employment Training Panel created by Section
10202.
(i) "Retraining" means employment-related skill and literacy
training for persons who are employed and who meet the definition of
paragraph (2) of subdivision (c) prior to commencement of training
and will continue to be employed by the same employer for at least 90
days following completion of training.
(j) "State average hourly wage" means the average weekly wage paid
by employers to employees covered by unemployment insurance, as
reported to the Employment Development Department for the four
calendar quarters ending June 30 of the preceding calendar year,
divided by 40 hours.
(k) "Trainee" means an eligible participant.
(l) "Training agency" means any private training entity or local
educational agency.
10201.5. With respect to funding appropriated in the annual Budget
Act to the Employment Development Department for allocation by the
Employment Training Panel and identified for training of workers in
regions suffering from high unemployment and low job creation,
including the working poor, the panel, notwithstanding subdivision
(g) of Section 10201, may waive the minimum wage requirements
included in that subdivision provided that the post-retention wage of
each trainee who has completed training and the required training
period exceeds his or her wage before and during training. This
determination shall be made on a case-by-case basis to ensure that
post-training improvements in earnings are sufficient to warrant the
investment of public funds.
10202. (a) The Employment Training Panel is established in the
Employment Development Department.
(b) The executive director shall be appointed by the Governor, and
shall be well qualified for the position with experience in
government. The executive director may perform all duties, exercise
all powers, discharge all responsibilities, and administer and
enforce all laws, rules, and regulations under the jurisdiction of
the panel, with the approval of the panel. The executive director
shall administer this chapter, with the approval of the panel, in the
manner he or she deems necessary to conduct the work of the panel
properly. With the approval of the panel, the executive director may
create divisions and subdivisions as necessary, and change and
abolish these divisions and subdivisions from time to time.
(c) The panel may employ personnel necessary to carry out the
purposes of this chapter. All personnel shall be appointed pursuant
to the State Civil Service Act (Part 1 (commencing with Section
18000) of Division 5 of Title 2 of the Government Code), except for
an executive director, and two assistant directors, who shall be
exempt from state civil service.
(d) All personnel of the panel shall be appointed, directed, and
controlled only by the panel or its authorized deputies or agents to
whom it may delegate its powers.
(e) The Governor shall appoint two assistant directors, to serve
at the pleasure of the Governor. The assistant directors shall have
the duties as assigned by the executive director, and shall be
responsible to the executive director for the performance of their
duties.
10202.5. (a) The panel shall consist of eight persons, seven of
whom shall be appointed as provided in subdivision (b), and shall
have experience and a demonstrated interest in business management
and employment relations. The Secretary of Business, Transportation
and Housing, or his or her designee, shall also serve on the panel as
an ex officio, voting member.
(b) (1) Two members of the panel shall be appointed by the Speaker
of the Assembly. One of those members shall be a private sector
labor representative and the other member shall be a business
representative.
(2) Two members of the panel shall be appointed by the President
pro Tempore of the Senate. One of those members shall be a private
sector labor representative and the other member shall be a business
representative.
(3) Three members of the panel shall be appointed by the Governor.
One of those members shall be a private sector labor representative,
one member shall be a business representative, and one member shall
be a public member.
(4) Labor appointments shall be made from nominations from state
labor federations. Business appointments shall be made from
nominations from state business organizations and business trade
associations.
(5) The Governor shall designate a member to chair the panel, and
the person so designated shall serve as the chair of the panel at the
pleasure of the Governor.
(c) The appointive members of the panel shall serve for two-year
terms.
(d) Appointive members of the panel shall receive the necessary
traveling and other expenses incurred by them in the performance of
their official duties out of appropriations made for the support of
the panel. In addition, each appointive member of the panel shall
receive one hundred dollars ($100) for each day attending meetings of
the panel, and may receive one hundred dollars ($100) for each day
spent conducting other official business of the panel, but not
exceeding a maximum of three hundred dollars ($300) per month.
10203. The panel may meet as necessary at locations throughout the
state. The panel shall maintain a minimum of three regional offices.
The central office shall be located in Sacramento. Two regional
offices shall be located in the southern part of the state, and one
regional office shall be located in the northern part of the state.
The executive director will assign one person, with experience in
meeting the needs of small businesses, to each of the regional
offices for the purpose of developing training projects for small
businesses and expediting the processing of training proposals from
small businesses.
10204. The panel shall coordinate its programs with local and state
workforce investment boards and other partners of the federal
Workforce Investment Act of 1998. This coordination shall include,
but not be limited to, the adoption of a plan, including regular
sharing of data, for the coordination of training authorized pursuant
to this chapter with programs administered under Division 8
(commencing with Section 15000).
10205. The panel shall do all of the following:
(a) Establish a three-year plan that shall be updated annually,
based on the demand of employers for trained workers, changes in the
state's economy and labor markets, and continuous reviews of the
effectiveness of panel training contracts. The updated plan shall be
submitted to the Governor and the Legislature not later than January
1 of each year. In carrying out this section, the panel shall review
information in the following areas:
(1) Labor market information, including the state-local labor
market information program in the Employment Development Department,
the California Economic Strategy Panel, and other relevant regional
or statewide initiatives and collaboratives.
(2) Evaluations of the effectiveness of training as measured by
increased security of employment for workers and benefits to the
California economy.
(3) The demand for training by industry, type of training, and
size of employer.
(4) Changes in skills necessary to perform jobs, including changes
in basic literacy skills.
(5) Changes in the demographics of the labor force and the
population entering the labor market.
(6) Proposed expenditures by other agencies of federal Workforce
Investment Act funds and other state and federal training and
vocational education funds on eligible participants.
(b) Maintain a system to continuously monitor economic and other
data required under this plan. If this data changes significantly
during the life of the plan, the plan shall be amended by the panel.
Each plan shall include all of the following:
(1) The panel's objectives with respect to the criteria and
priorities specified in Section 10200 and the distribution of funds
between new-hire training and retraining.
(2) The identification of specific industries, production and
quality control techniques, and regions of the state where employment
training funds would most benefit the state's economy and plans to
encourage training in these areas, including specific standards and a
system for expedited review of proposals that meet the standards.
(3) A system for expedited review of proposals that are
substantially similar with respect to employer needs, training
curriculum, duration of training, and costs of training, in order to
encourage the development of proposals that meet the needs identified
in paragraph (2).
(4) The panel's goals, operational objectives, and strategies to
meet the needs of small businesses, including, but not limited to,
those small businesses with 100 or fewer employees. These strategies
proposed by the panel may include, but not be limited to, pilot
demonstration projects designed to identify potential barriers that
small businesses may experience in accessing panel programs and
workforce training resources, including barriers that may exist
within small businesses.
(5) The research objectives of the panel that contribute to the
effectiveness of this chapter in benefiting the economy of the state
as a whole.
(6) A priority list of skills or occupations that are in such
short supply that employers are choosing to not locate or expand
their businesses in the state or are importing labor in response to
these skills shortages.
(7) A review of the panel's efforts to coordinate with the
California Workforce Investment Board and local boards to achieve an
effective and coordinated approach in the delivery of the state's
workforce resources.
(A) The panel will consider specific strategies to achieve this
goal that include the development of initiatives to engage local
workforce investment boards in enhancing the utilization of panel
training resources by companies in priority sectors, special
populations, and in geographically underserved areas of the state.
(B) Various approaches to foster greater program integration
between workforce investment boards and the panel will also be
considered, which may include marketing agreements, expanded
technical assistance, modification of program regulations and policy,
and expanded use of multiple employer contracts.
(c) Solicit proposals and write contracts on the basis of
proposals made directly to it. Contracts for the purpose of providing
employment training may be written with any of the following:
(1) An employer or group of employers.
(2) A training agency.
(3) A local workforce investment board with the approval of the
appropriate local elected officials in the local workforce investment
area.
(4) A grant recipient or administrative entity selected pursuant
to the federal Workforce Investment Act of 1998, with the approval of
the local workforce investment board and the appropriate local
elected officials.
These contracts shall be in the form of fixed-fee performance
contracts. Notwithstanding any provision of law to the contrary,
contracts entered into pursuant to this chapter shall not be subject
to competitive bidding procedures. Contracts for training may be
written for a period not to exceed 24 months for the purpose of
administration by the panel and the contracting employer or any group
of employers acting jointly or any training agency for the purpose
of providing employment training.
(d) Fund training projects that best meet the priorities
identified annually. In doing so, the panel shall seek to facilitate
the employment of the maximum number of eligible participants.
(e) Establish minimum standards for the consideration of
proposals, which shall include, but not be limited to, evidence of
labor market demand, the number of jobs available, the skill
requirements for the identified jobs, the projected cost per person
trained, hired, and retained in employment, the wages paid successful
trainees upon placement, and the curriculum for the training. No
proposal shall be considered or approved that proposes training for
employment covered by a collective bargaining agreement unless the
signatory labor organization agrees in writing.
(f) Ensure the provision of adequate fiscal and accounting
controls for, monitoring and auditing of, and other appropriate
technical and administrative assistance to, projects funded by this
chapter.
(g) Provide for evaluation of projects funded by this chapter. The
evaluations shall assess the effectiveness of training previously
funded by the panel to improve job security and stability for
workers, and benefit participating employers and the state's economy,
and shall compare the wages of trainees in the 12-month period prior
to training as well as the 12-month period subsequent to completion
of training, as reflected in the department's unemployment insurance
tax records. Individual project evaluations shall contain a summary
description of the project, the number of persons entering training,
the number of persons completing training, the number of persons
employed at the end of the project, the number of persons still
employed three months after the end of the project, the wages paid,
the total costs of the project, and the total reimbursement received
from the Employment Training Fund.
(h) Report annually to the Legislature, by November 30, on
projects operating during the previous state fiscal year. These
annual reports shall provide separate summaries of all of the
following:
(1) Projects completed during the year, including their individual
and aggregate performance and cost.
(2) Projects not completed during the year, briefly describing
each project and identifying approved contract amounts by contract
and for this category as a whole, and identifying any projects in
which funds are expected to be disencumbered.
(3) Projects terminated prior to completion and the reasons for
the termination.
(4) A description of the amount, type, and effectiveness of
literacy training funded by the panel.
(5) Results of complete project evaluations.
(6) A description of pilot projects, and the strategies that were
identified through these projects, to increase access by small
businesses to panel training contracts.
(7) A listing of training projects that were funded in high
unemployment areas and a detailed description of the policies and
procedures that were used to designate geographic regions and
municipalities as high unemployment areas.
In addition, based upon its experience in administering job
training projects, the panel shall include in these reports policy
recommendations concerning the impact of job training and the panel's
program on economic development, labor-management relations,
employment security, and other related issues.
(i) Conduct ongoing reviews of panel policies with the goal of
developing an improved process for developing, funding, and
implementing panel contracts as described in this chapter.
(j) Expedite the processing of contracts for firms considering
locating or expanding businesses in the state, in accordance with the
priorities for employment training programs set forth in subdivision
(b) of Section 10200.
(k) Coordinate and consult regularly with business groups and
labor organizations, the California Workforce Investment Board, the
State Department of Education, the office of the Chancellor of the
California Community Colleges, and the Employment Development
Department.
(l) Adopt by regulation procedures for the conduct of panel
business, including the scheduling and conduct of meetings, the
review of proposals, the disclosure of contacts between panel members
and parties at interest concerning particular proposals, contracts
or cases before the panel or its staff, the awarding of contracts,
the administration of contracts, and the payment of amounts due to
contractors. All decisions by the panel shall be made by resolution
of the panel and any adverse decision shall include a statement of
the reason for the decision.
(m) Adopt regulations and procedures providing reasonable
confidentiality for the proprietary information of employers seeking
training funds from the panel if the public disclosure of that
information would result in an unfair competitive disadvantage to the
employer supplying the information. The panel may not withhold
information from the public regarding its operations, procedures, and
decisions that would otherwise be subject to disclosure under the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code).
(n) Review and comment on the budget and performance of any
program, project, or activity funded by the panel utilizing funds
collected pursuant to Section 976.6.
10206. (a) The panel may allocate money in the fund for any of the
following purposes:
(1) Reimbursement of reasonable training costs, and administrative
costs incurred by contractors. In making a determination of costs to
be reimbursed under this paragraph, the panel may allocate funds in
accordance with any of the following methods:
(A) For purposes of providing simplified fixed-fee performance
contracts, a flat rate per hour for categories of training that are
substantially similar with respect to content, methodology, and
duration, as determined by the panel, not to exceed the reasonable
and normal costs for the training. The panel shall periodically
adjust the standardized rates established pursuant to this paragraph
to reflect changes in training costs.
(B) A complete review of the proposal and its costs, including a
budget listing the planned costs of training, including personnel,
fringe benefits, equipment, supplies, fees for consulting or
administrative services, and other costs attributable to training;
the services provided by subcontractors; the length and complexity of
the training; the method of training; the wages and occupations
following training; whether the trainees are new hires or retrainees;
and the cost of similar training that the panel has funded
previously. The cost of administration shall not exceed 15 percent of
the training costs under this paragraph, except that for new hire
training the panel may fund administrative costs of up to 25 percent
of the training cost.
(C) The panel may modify the specific requirements of this
paragraph as they apply to employers or contractors proposing
projects that involve training for a significant number of small
employers in the same project.
(D) A contractor is prohibited from utilizing any funds earned or
paid as advances or progress payments for the purpose of making
payments to any other individual or entity, either directly or
indirectly, for costs incurred as a finder's fee or for other
compensation related to the predevelopment or development phase of a
training program, which is based on a percentage of the preliminary
or final panel award to the contractor for the training project.
(2) (A) Costs of program administration incurred under this
chapter. These costs shall be reviewed annually by the Department of
Finance and the Legislature and determined through the normal
budgetary process.
(B) The panel's administrative costs, exclusive of the cost of
administering Section 976.6, shall not exceed 15 percent of the total
amount annually appropriated for expenditure by the panel.
Expenditures for marketing, research, and evaluations provided under
the contract to the panel that otherwise would have been provided
directly by the panel shall not be included in this limitation.
(3) Service related to the purposes of this chapter provided by
the Small Business Development Centers.
(b) For all training contracts, the panel shall establish
requirements for in-kind contributions by either the contractor or
the employer that reflect a substantial commitment on the part of the
contractor or the employer to the value of the training. In
developing these requirements, the panel shall take into account the
ability of the contractor or the employer, because of size or
financial condition, to make any contribution, and the ability of the
Employment Training Fund to meet the demand for training authorized
by this chapter. In developing policies regarding in-kind
contributions, the panel shall hold public hearings.
10207. (a) The panel shall accept or reject a completed application
within 60 days of the receipt by the executive director.
(b) The panel shall develop expedited procedures for reviewing
proposals submitted by the state agencies which are participants in a
special interagency agreement with the panel for purposes of this
chapter.
10208. Nothing in this chapter shall be construed to preclude any
employer from contracting with any public or private training entity
for services, subject to the approval of the panel.
10209. (a) Contracts shall only be made for training in job-related
vocational skills that are necessary for participants to attain a
new job or retain an existing job with definite career potential and
long-term job security. The contracts for vocational skills training
may include ancillary training for job-related basic and literacy
skills training if the panel finds that the training is necessary to
achieve the objectives of the vocational training.
(b) The panel shall not approve any training proposal which
facilitates the change in ownership of a business leading to the
likelihood that an existing collective bargaining agreement would be
declared void.
(c) To encourage a broad and equitable distribution of funds, the
panel may require an employer who has previously received funds
pursuant to this chapter for retraining of workers at a facility to
contribute proportionately more to the cost of training in subsequent
panel contracts for training of workers at the same facility.
(d) The panel may delegate to the executive director the authority
to approve training contracts of up to one hundred thousand dollars
($100,000), provided the contracts meet the requirements of this
chapter and the policies established by the panel, and provided that
the panel regularly reviews the actions taken by the executive
director pursuant to this subdivision.
(e) Payments shall be made in accordance with a performance
contract under which partial payments may be made during training, a
partial payment may be made on placement or retention of each
trainee, and not less than 25 percent of the negotiated fee is
withheld until the trainee has been retained in employment for 90
days after the end of training with a single employer, except for
those occupations in which it is not customary for a worker to be
employed 90 consecutive days with a single employer. In these latter
cases, the panel may substitute a period similar to the probationary
period customary to the occupation. The probationary period shall not
be less than 500 work hours and shall be completed within 272 days
of the completion of the training. In no case shall any payment be
considered to have been earned until the trainee has been retained in
employment for 90 days or the equivalent probationary period for an
occupation in which it is not customary for a worker to be employed
90 consecutive days with a single employer.
(f) Contracts for new hire training shall require the contractor
to provide the placement services necessary to ensure the trainees
are placed in jobs for which they have been trained.
10210. Contracts shall be made with training agencies only if the
training agency can demonstrate all of the following:
(a) The training agency has a satisfactory record of past
performance in the placement and retention of former trainees and
employer satisfaction with former trainees.
(b) The training agency can demonstrate labor market demand for
the proposed training. Proof shall include, but not be limited to,
the documented need of specific employers for the workers proposed to
be trained in the skills proposed by the training agency.
(c) The training agency can demonstrate that the training prepares
trainees in a manner satisfactory to employers.
(d) The training agency can demonstrate that its accounting
systems include controls adequate to check the accuracy and
reliability of accounting data, promote operating efficiency, and
assure compliance with government requirements and generally accepted
accounting principles. The panel shall have full access at any time
to these accounting systems to assure compliance with these
standards.
10211. A trainee or employee participating in a training program
pursuant to this chapter shall be considered to be in a training
program having the approval of the director under Article 1.5
(commencing with Section 1266) of Chapter 5 of Part 1 of Division 1.
10212.2. The panel shall prepare a budget covering necessary
administrative costs of the panel. The budget shall not be subject to
change by the director except as agreed to by the panel. In the
event that agreement cannot be reached, the Secretary of the Labor
and Workforce Development Agency shall attempt to reach a mutual
agreement. In the event a mutual agreement cannot be reached, the
final decision shall rest with the Governor.
10213. The Employment Development Department shall cooperate with
the panel by offering necessary technical assistance, which may
include, but is not limited to, labor market information, projections
of occupational demand, and information and advice on alternative
training strategies.
10214. To assist the panel and the Legislature in assessing the
impact of this chapter over an extended period of time, the
Employment Development Department shall develop and maintain a
continuous employment, wage, and benefit history of unemployment
insurance participants.
10214.5. (a) The panel may allocate up to 15 percent of the
annually available training funds for the purpose of funding special
employment training projects that improve the skills and employment
security of frontline workers, as defined in subdivision (a) of
Section 10200. Notwithstanding any other provision of this chapter,
participants in these projects are not required to meet the
eligibility criteria set forth in paragraph (1) of subdivision (a) of
Section 10200 or subdivision (c) of Section 10201.
(b) The panel shall, on an annual basis, identify industries and
occupations that shall be priorities for funding under this section.
Training shall be targeted to frontline workers who earn at least the
state average hourly wage.
(c) The panel may waive the minimum wage provisions pursuant to
subdivision (f) of Section 10201 for projects in regions of the state
where the unemployment rate is significantly higher than the state
average, and may waive the employment retentions provisions specified
in subdivision (f) of Section 10209 and instead require that the
trainee has been retained in employment for a minimum of 90 days out
of 120 consecutive days after the end of training with no more than
three employers.
(d) (1) The panel may allocate funds pursuant to subdivision (a)
to increase the productivity and extended employment retention of
workers in the state's major seasonal industries.
(2) In funding special employment training projects for this
purpose, the panel may do all of the following:
(A) When the amount of the postretention wages of each trainee who
has completed training exceeds the amount of wages that the trainee
earned before and during training, waive the minimum wage
requirements set forth in subdivision (f) of Section 10201.
(B) Waive the employment retention requirements set forth in
subdivision (f) of Section 10209 and instead require that the trainee
be retained in employment for not less than 500 hours within the
12-month period following the completion of the training.
(C) When the panel finds that the training is necessary to achieve
the objectives of vocational training, waive the limitation on
job-related basic and literacy skills training set forth in
subdivision (a) of Section 10209.
(3) For purposes of this section, "major seasonal industries"
means eligible employers who satisfy all of the following
requirements:
(A) Have a workforce comprised of at least 50 percent of workers
whose employment period is necessarily cyclical, including, but not
limited to, businesses directly involved in the harvesting, packing,
or processing of goods or products.
(B) Have retained at least 50 percent of the same seasonal
employees for at least one season of not less than 500 hours for the
preceding 12-month period.
(C) Pay wages and provide benefits that exceed industry averages.
(e) The panel shall adopt minimum standards for consideration of
proposals to be funded pursuant to this section.
(f) The panel may select contracts funded under this section based
on competitive bidding.
(g) It is the intent of the Legislature in providing the authority
for these projects that the panel allocate these funds in a manner
consistent with the objectives of this chapter as provided in Section
10200.
10214.6. (a) The panel shall establish the Partnership for
Workforce Recovery Training (PWRT) for the purposes of supporting and
implementing the workforce development goals set forth in the
federal American Recovery and Reinvestment Act of 2009 (ARRA) (P.L.
111-5). The panel shall develop and publish guidelines for
implementation of the PWRT, consistent with, and including adequate
fiscal and accounting controls, as prescribed in subdivision (g) of
Section 10205.
(b) The panel may allocate any funds it receives pursuant to the
federal Workforce Investment Act of 1998 (29 U.S.C. Sec. 2801 et
seq.) and the ARRA to support the activities of the PWRT. Any funds
received by the panel pursuant to this section shall be deposited
into a separate account established by the department in the State
Treasury, and used for the purposes of this section.
(c) The panel may adopt any regulations necessary to implement
this section, but any regulations so adopted are exempt from the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
(d) The panel may solicit proposals and enter into contracts or
other agreements to secure funding for the purposes of this section,
but those proposals, contracts, and agreements shall be exempt from
any competitive bidding requirements otherwise prescribed in statute.
10214.7. The panel shall allocate funds available in the annual
Budget Act for training programs designed for individuals who are
eligible to receive benefits under Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code
or who have received CalWORKs benefits within one year of the
commencement of the training program.
(a) It is the intent of the Legislature in providing authority for
these training programs that the panel allocate these funds in a
manner consistent with the objectives of this chapter as provided in
Section 10200.
(b) Notwithstanding any other provisions of this chapter, the
eligibility criteria for individuals trained under this section shall
be employment with an eligible employer as defined in subdivision
(a) of Section 10201 and:
(1) Receipt of CalWORKs benefits at the time training begins, or
(2) Receipt of CalWORKs benefits within one year of the time
training commenced.
(c) For purposes of this section, the panel may waive, if
necessary, any of the following:
(1) The employer eligibility criteria outlined in paragraph (1) of
subdivision (a) of Section 10200.
(2) The minimum training wage requirements pursuant to subdivision
(g) of Section 10201.
(3) The employment retention provisions specified in subdivision
(f) of Section 10209 and instead require that the trainee has been
retained in employment for a minimum of 90 days out of 120
consecutive days after the end of training with no more than three
employers.
(d) Notwithstanding any other provisions of this chapter, the
panel shall consider proposals that use innovative strategies and
training options to enable current and prior CalWORKs recipients and
eligibles to retain employment, including, but not limited to,
projects that provide basic skills training.
(e) The panel shall adopt administrative procedures for approving
and administering contracts under this section to expedite contracts,
minimize barriers to completion of training, and facilitate the
training of single trainees and small groups of trainees from one
worksite.
10214.9. (a) (1) The panel may fund licensed nurse training
programs to train individuals who are currently working as nurse
assistants or caregivers in a health facility, as defined in Section
1250 of the Health and Safety Code.
(2) It is the intent of the Legislature that the panel allocate
these funds in a manner consistent with the objectives of this
chapter as provided in Section 10200.
(b) Notwithstanding any other provisions of this chapter, the
panel shall waive the minimum wage provisions, pursuant to
subdivision (f) of Section 10201, if all of the following conditions
are met:
(1) The employee is enrolled in an approved licensed nurse
training program that consists of not less than 1,000 hours of
training.
(2) The employer pays the employee not less than 120 percent of
the state minimum wage for not less than the first 20 hours of work
per week during each week the employee is enrolled in the training
program.
(3) Each program results in full-time employment customary for the
occupation for which the individuals are being trained.
(c) Notwithstanding any other provisions of this chapter, the
panel shall waive any limitation on the hourly length of training
programs to allow approval and funding for up to 750 hours of a
licensed nurse training program; provided, however, that those funds
be used to pay for up to 750 training hours that remain in the
licensed nurse training program after the employee has completed the
first 800 hours of that program.
(d) Notwithstanding any other provision of this chapter, employers
that participate in the nurse training programs funded pursuant to
this section, are not required to meet the eligibility criteria set
forth in paragraph (1) of subdivision (a) of Section 10200.
10215. The funding of individual project grants by the panel may
take the form of either direct grants to the employer or training
agency, or credits to the employer's liability for unemployment
insurance contributions or reimbursements. Credits to the employer's
liability for unemployment insurance contributions or reimbursements
shall be drawn from the Employment Training Fund.
10217. Funds in the Employment Training Fund created by Section
1610 shall be appropriated annually in the Budget Act by the
Legislature for allocation by the panel for the purposes of this
chapter, except those funds determined by the Legislature to be
necessary to administer Section 976.6 and Article 6 (commencing with
Section 1610) of Chapter 6 of Part 1 of Division 1 shall be
appropriated to the department.
10200. The Legislature finds and declares the following:
(a) California's economy is being challenged by competition from
other states and overseas. In order to meet this challenge,
California's employers, workers, labor organizations, and government
need to invest in a skilled and productive workforce, and in
developing the skills of frontline workers. For purposes of this
section, "frontline worker" means a worker who directly produces or
delivers goods or services.
The purpose of this chapter is to establish a strategically
designed employment training program to promote a healthy labor
market in a growing, competitive economy that shall fund only
projects that meet the following criteria:
(1) Foster creation of high-wage, high-skilled jobs, or foster
retention of high-wage, high-skilled jobs in manufacturing and other
industries that are threatened by out-of-state and global
competition, including, but not limited to, those industries in which
targeted training resources for California's small and medium-sized
business suppliers will increase the state's competitiveness to
secure federal, private sector, and other nonstate funds. In
addition, provide for retraining contracts in companies that make a
monetary or in-kind contribution to the funded training enhancements.
(2) Encourage industry-based investment in human resources
development that promotes the competitiveness of California industry
through productivity and product quality enhancements.
(3) Result in secure jobs for those who successfully complete
training. All training shall be customized to the specific
requirements of one or more employers or a discrete industry and
shall include general skills that trainees can use in the future.
(4) Supplement, rather than displace, funds available through
existing programs conducted by employers and government-funded
training programs, such as the Workforce Investment Act of 1998 (29
U.S.C. Sec. 2801 et seq.), the Carl D. Perkins Vocational Education
Act (P.L. 98-524), CalWORKs (Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code),
the Enterprise Zone Act (Chapter 12.8 (commencing with Section 7070)
of Division 7 of Title 1 of the Government Code), and the
McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et
seq.), the California Community Colleges Economic Development
Program, or apportionment funds allocated to the community colleges,
regional occupational centers and programs, or other local
educational agencies. In addition, it is further the intention of the
Legislature that programs developed pursuant to this chapter shall
not replace, parallel, supplant, compete with, or duplicate in any
way already existing approved apprenticeship programs.
(b) The Employment Training Panel, in funding projects that meet
the requirements of subdivision (a), shall give funding priority to
those projects that best meet the following goals:
(1) Result in the growth of the California economy by stimulating
exports from the state and the production of goods and services that
would otherwise be imported from outside the state.
(2) Train new employees of firms locating or expanding in the
state that provide high-skilled, high-wage jobs and are committed to
an ongoing investment in the training of frontline workers.
(3) Develop workers with skills that prepare them for the
challenges of a high performance workplace of the future.
(4) Train workers who have been displaced, have received
notification of impending layoff, or are subject to displacement,
because of a plant closure, workforce reduction, changes in
technology, or significantly increasing levels of international and
out-of-state competition.
(5) Are jointly developed by business management and worker
representatives.
(6) Develop career ladders for workers.
(7) Promote the retention and expansion of the state's
manufacturing workforce.
(c) The program established through this chapter is to be
coordinated with all existing employment training programs and
economic development programs, including, but not limited to,
programs such as the Workforce Investment Act of 1998 (29 U.S.C. Sec.
2801 et seq.), the California Community Colleges, the regional
occupational programs, vocational education programs, joint
labor-management training programs, and related programs under the
Employment Development Department and the Business, Transportation
and Housing Agency.
10201. As used in this chapter:
(a) "Department" means the Employment Development Department.
(b) "Employer" or "eligible employer" means any employer subject
to Part 1 (commencing with Section 100) of Division 1, except any
public entity, or any nonprofit organization which has elected an
alternate method of financing its liability for unemployment
insurance compensation benefits pursuant to Article 5 (commencing
with Section 801), or Article 6 (commencing with Section 821) of
Chapter 3.
Any public entity or nonprofit organization that has elected an
alternate method of financing its liability for unemployment
insurance compensation benefits pursuant to Article 5 (commencing
with Section 801), or Article 6 (commencing with Section 821) of
Chapter 3, shall be deemed to be an employer only for purposes of
placement of new hire trainees who received training as an incidental
part of a training project designed to meet the needs of one or more
private sector employers.
(c) "Eligible participant" means any person who, prior to
beginning training or employment pursuant to this chapter, is any of
the following:
(1) Unemployed and has established an unemployment insurance claim
in this state, or has exhausted eligibility for unemployment
insurance benefits from this state within the previous 24 months.
(2) Employed for a minimum of 90 days by his or her employer, or
if employed for less than 90 days, met the conditions of paragraph
(1) at the time of hire, had received a notice of layoff from the
prior employer, or was employed by an employer for a period of not
less than 90 days during the 180-day period prior to the employee's
current employment at the start of training with an eligible
employer, as provided in subdivision (b). The panel may waive this
requirement for trainees employed by a business locating or expanding
operations in the state, provided it is part of a state and local
economic development effort endeavoring to create or retain
California jobs. The panel may also waive the requirement for up to
10 percent of the trainee population, if it determines a business
meets standard funding requirements set out under subdivision (a) of
Section 10200.
(d) "Executive director" means the executive director appointed
pursuant to Section 10202.
(e) "Fund" means the Employment Training Fund created by Section
1610.
(f) "Job" means employment on a basis customarily considered full
time for the occupation and industry. The employment shall have
definite career potential and a substantial likelihood of providing
long-term job security, with reportable California earnings during
the employment retention period. Furthermore, the employment shall
provide earnings, upon completion of the employment requirement
specified in subdivision (f) of Section 10209, equal to 50 percent,
in the case of new hire training, or 60 percent, in the case of
retraining, of the state or regional average hourly wage. However, in
no case shall the employment result in earnings of less than 45
percent of the state average hourly wage for new hire training and 55
percent of the state average hourly wage for retraining. The panel
may consider the dollar value of health benefits that are voluntarily
paid for by an employer when computing earnings to meet the minimum
wage requirements.
(g) "New hire training" means employment training, including
job-related literacy training, for persons who, at the start of
training, are unemployed.
(h) "Panel" means the Employment Training Panel created by Section
10202.
(i) "Retraining" means employment-related skill and literacy
training for persons who are employed and who meet the definition of
paragraph (2) of subdivision (c) prior to commencement of training
and will continue to be employed by the same employer for at least 90
days following completion of training.
(j) "State average hourly wage" means the average weekly wage paid
by employers to employees covered by unemployment insurance, as
reported to the Employment Development Department for the four
calendar quarters ending June 30 of the preceding calendar year,
divided by 40 hours.
(k) "Trainee" means an eligible participant.
(l) "Training agency" means any private training entity or local
educational agency.
10201.5. With respect to funding appropriated in the annual Budget
Act to the Employment Development Department for allocation by the
Employment Training Panel and identified for training of workers in
regions suffering from high unemployment and low job creation,
including the working poor, the panel, notwithstanding subdivision
(g) of Section 10201, may waive the minimum wage requirements
included in that subdivision provided that the post-retention wage of
each trainee who has completed training and the required training
period exceeds his or her wage before and during training. This
determination shall be made on a case-by-case basis to ensure that
post-training improvements in earnings are sufficient to warrant the
investment of public funds.
10202. (a) The Employment Training Panel is established in the
Employment Development Department.
(b) The executive director shall be appointed by the Governor, and
shall be well qualified for the position with experience in
government. The executive director may perform all duties, exercise
all powers, discharge all responsibilities, and administer and
enforce all laws, rules, and regulations under the jurisdiction of
the panel, with the approval of the panel. The executive director
shall administer this chapter, with the approval of the panel, in the
manner he or she deems necessary to conduct the work of the panel
properly. With the approval of the panel, the executive director may
create divisions and subdivisions as necessary, and change and
abolish these divisions and subdivisions from time to time.
(c) The panel may employ personnel necessary to carry out the
purposes of this chapter. All personnel shall be appointed pursuant
to the State Civil Service Act (Part 1 (commencing with Section
18000) of Division 5 of Title 2 of the Government Code), except for
an executive director, and two assistant directors, who shall be
exempt from state civil service.
(d) All personnel of the panel shall be appointed, directed, and
controlled only by the panel or its authorized deputies or agents to
whom it may delegate its powers.
(e) The Governor shall appoint two assistant directors, to serve
at the pleasure of the Governor. The assistant directors shall have
the duties as assigned by the executive director, and shall be
responsible to the executive director for the performance of their
duties.
10202.5. (a) The panel shall consist of eight persons, seven of
whom shall be appointed as provided in subdivision (b), and shall
have experience and a demonstrated interest in business management
and employment relations. The Secretary of Business, Transportation
and Housing, or his or her designee, shall also serve on the panel as
an ex officio, voting member.
(b) (1) Two members of the panel shall be appointed by the Speaker
of the Assembly. One of those members shall be a private sector
labor representative and the other member shall be a business
representative.
(2) Two members of the panel shall be appointed by the President
pro Tempore of the Senate. One of those members shall be a private
sector labor representative and the other member shall be a business
representative.
(3) Three members of the panel shall be appointed by the Governor.
One of those members shall be a private sector labor representative,
one member shall be a business representative, and one member shall
be a public member.
(4) Labor appointments shall be made from nominations from state
labor federations. Business appointments shall be made from
nominations from state business organizations and business trade
associations.
(5) The Governor shall designate a member to chair the panel, and
the person so designated shall serve as the chair of the panel at the
pleasure of the Governor.
(c) The appointive members of the panel shall serve for two-year
terms.
(d) Appointive members of the panel shall receive the necessary
traveling and other expenses incurred by them in the performance of
their official duties out of appropriations made for the support of
the panel. In addition, each appointive member of the panel shall
receive one hundred dollars ($100) for each day attending meetings of
the panel, and may receive one hundred dollars ($100) for each day
spent conducting other official business of the panel, but not
exceeding a maximum of three hundred dollars ($300) per month.
10203. The panel may meet as necessary at locations throughout the
state. The panel shall maintain a minimum of three regional offices.
The central office shall be located in Sacramento. Two regional
offices shall be located in the southern part of the state, and one
regional office shall be located in the northern part of the state.
The executive director will assign one person, with experience in
meeting the needs of small businesses, to each of the regional
offices for the purpose of developing training projects for small
businesses and expediting the processing of training proposals from
small businesses.
10204. The panel shall coordinate its programs with local and state
workforce investment boards and other partners of the federal
Workforce Investment Act of 1998. This coordination shall include,
but not be limited to, the adoption of a plan, including regular
sharing of data, for the coordination of training authorized pursuant
to this chapter with programs administered under Division 8
(commencing with Section 15000).
10205. The panel shall do all of the following:
(a) Establish a three-year plan that shall be updated annually,
based on the demand of employers for trained workers, changes in the
state's economy and labor markets, and continuous reviews of the
effectiveness of panel training contracts. The updated plan shall be
submitted to the Governor and the Legislature not later than January
1 of each year. In carrying out this section, the panel shall review
information in the following areas:
(1) Labor market information, including the state-local labor
market information program in the Employment Development Department,
the California Economic Strategy Panel, and other relevant regional
or statewide initiatives and collaboratives.
(2) Evaluations of the effectiveness of training as measured by
increased security of employment for workers and benefits to the
California economy.
(3) The demand for training by industry, type of training, and
size of employer.
(4) Changes in skills necessary to perform jobs, including changes
in basic literacy skills.
(5) Changes in the demographics of the labor force and the
population entering the labor market.
(6) Proposed expenditures by other agencies of federal Workforce
Investment Act funds and other state and federal training and
vocational education funds on eligible participants.
(b) Maintain a system to continuously monitor economic and other
data required under this plan. If this data changes significantly
during the life of the plan, the plan shall be amended by the panel.
Each plan shall include all of the following:
(1) The panel's objectives with respect to the criteria and
priorities specified in Section 10200 and the distribution of funds
between new-hire training and retraining.
(2) The identification of specific industries, production and
quality control techniques, and regions of the state where employment
training funds would most benefit the state's economy and plans to
encourage training in these areas, including specific standards and a
system for expedited review of proposals that meet the standards.
(3) A system for expedited review of proposals that are
substantially similar with respect to employer needs, training
curriculum, duration of training, and costs of training, in order to
encourage the development of proposals that meet the needs identified
in paragraph (2).
(4) The panel's goals, operational objectives, and strategies to
meet the needs of small businesses, including, but not limited to,
those small businesses with 100 or fewer employees. These strategies
proposed by the panel may include, but not be limited to, pilot
demonstration projects designed to identify potential barriers that
small businesses may experience in accessing panel programs and
workforce training resources, including barriers that may exist
within small businesses.
(5) The research objectives of the panel that contribute to the
effectiveness of this chapter in benefiting the economy of the state
as a whole.
(6) A priority list of skills or occupations that are in such
short supply that employers are choosing to not locate or expand
their businesses in the state or are importing labor in response to
these skills shortages.
(7) A review of the panel's efforts to coordinate with the
California Workforce Investment Board and local boards to achieve an
effective and coordinated approach in the delivery of the state's
workforce resources.
(A) The panel will consider specific strategies to achieve this
goal that include the development of initiatives to engage local
workforce investment boards in enhancing the utilization of panel
training resources by companies in priority sectors, special
populations, and in geographically underserved areas of the state.
(B) Various approaches to foster greater program integration
between workforce investment boards and the panel will also be
considered, which may include marketing agreements, expanded
technical assistance, modification of program regulations and policy,
and expanded use of multiple employer contracts.
(c) Solicit proposals and write contracts on the basis of
proposals made directly to it. Contracts for the purpose of providing
employment training may be written with any of the following:
(1) An employer or group of employers.
(2) A training agency.
(3) A local workforce investment board with the approval of the
appropriate local elected officials in the local workforce investment
area.
(4) A grant recipient or administrative entity selected pursuant
to the federal Workforce Investment Act of 1998, with the approval of
the local workforce investment board and the appropriate local
elected officials.
These contracts shall be in the form of fixed-fee performance
contracts. Notwithstanding any provision of law to the contrary,
contracts entered into pursuant to this chapter shall not be subject
to competitive bidding procedures. Contracts for training may be
written for a period not to exceed 24 months for the purpose of
administration by the panel and the contracting employer or any group
of employers acting jointly or any training agency for the purpose
of providing employment training.
(d) Fund training projects that best meet the priorities
identified annually. In doing so, the panel shall seek to facilitate
the employment of the maximum number of eligible participants.
(e) Establish minimum standards for the consideration of
proposals, which shall include, but not be limited to, evidence of
labor market demand, the number of jobs available, the skill
requirements for the identified jobs, the projected cost per person
trained, hired, and retained in employment, the wages paid successful
trainees upon placement, and the curriculum for the training. No
proposal shall be considered or approved that proposes training for
employment covered by a collective bargaining agreement unless the
signatory labor organization agrees in writing.
(f) Ensure the provision of adequate fiscal and accounting
controls for, monitoring and auditing of, and other appropriate
technical and administrative assistance to, projects funded by this
chapter.
(g) Provide for evaluation of projects funded by this chapter. The
evaluations shall assess the effectiveness of training previously
funded by the panel to improve job security and stability for
workers, and benefit participating employers and the state's economy,
and shall compare the wages of trainees in the 12-month period prior
to training as well as the 12-month period subsequent to completion
of training, as reflected in the department's unemployment insurance
tax records. Individual project evaluations shall contain a summary
description of the project, the number of persons entering training,
the number of persons completing training, the number of persons
employed at the end of the project, the number of persons still
employed three months after the end of the project, the wages paid,
the total costs of the project, and the total reimbursement received
from the Employment Training Fund.
(h) Report annually to the Legislature, by November 30, on
projects operating during the previous state fiscal year. These
annual reports shall provide separate summaries of all of the
following:
(1) Projects completed during the year, including their individual
and aggregate performance and cost.
(2) Projects not completed during the year, briefly describing
each project and identifying approved contract amounts by contract
and for this category as a whole, and identifying any projects in
which funds are expected to be disencumbered.
(3) Projects terminated prior to completion and the reasons for
the termination.
(4) A description of the amount, type, and effectiveness of
literacy training funded by the panel.
(5) Results of complete project evaluations.
(6) A description of pilot projects, and the strategies that were
identified through these projects, to increase access by small
businesses to panel training contracts.
(7) A listing of training projects that were funded in high
unemployment areas and a detailed description of the policies and
procedures that were used to designate geographic regions and
municipalities as high unemployment areas.
In addition, based upon its experience in administering job
training projects, the panel shall include in these reports policy
recommendations concerning the impact of job training and the panel's
program on economic development, labor-management relations,
employment security, and other related issues.
(i) Conduct ongoing reviews of panel policies with the goal of
developing an improved process for developing, funding, and
implementing panel contracts as described in this chapter.
(j) Expedite the processing of contracts for firms considering
locating or expanding businesses in the state, in accordance with the
priorities for employment training programs set forth in subdivision
(b) of Section 10200.
(k) Coordinate and consult regularly with business groups and
labor organizations, the California Workforce Investment Board, the
State Department of Education, the office of the Chancellor of the
California Community Colleges, and the Employment Development
Department.
(l) Adopt by regulation procedures for the conduct of panel
business, including the scheduling and conduct of meetings, the
review of proposals, the disclosure of contacts between panel members
and parties at interest concerning particular proposals, contracts
or cases before the panel or its staff, the awarding of contracts,
the administration of contracts, and the payment of amounts due to
contractors. All decisions by the panel shall be made by resolution
of the panel and any adverse decision shall include a statement of
the reason for the decision.
(m) Adopt regulations and procedures providing reasonable
confidentiality for the proprietary information of employers seeking
training funds from the panel if the public disclosure of that
information would result in an unfair competitive disadvantage to the
employer supplying the information. The panel may not withhold
information from the public regarding its operations, procedures, and
decisions that would otherwise be subject to disclosure under the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code).
(n) Review and comment on the budget and performance of any
program, project, or activity funded by the panel utilizing funds
collected pursuant to Section 976.6.
10206. (a) The panel may allocate money in the fund for any of the
following purposes:
(1) Reimbursement of reasonable training costs, and administrative
costs incurred by contractors. In making a determination of costs to
be reimbursed under this paragraph, the panel may allocate funds in
accordance with any of the following methods:
(A) For purposes of providing simplified fixed-fee performance
contracts, a flat rate per hour for categories of training that are
substantially similar with respect to content, methodology, and
duration, as determined by the panel, not to exceed the reasonable
and normal costs for the training. The panel shall periodically
adjust the standardized rates established pursuant to this paragraph
to reflect changes in training costs.
(B) A complete review of the proposal and its costs, including a
budget listing the planned costs of training, including personnel,
fringe benefits, equipment, supplies, fees for consulting or
administrative services, and other costs attributable to training;
the services provided by subcontractors; the length and complexity of
the training; the method of training; the wages and occupations
following training; whether the trainees are new hires or retrainees;
and the cost of similar training that the panel has funded
previously. The cost of administration shall not exceed 15 percent of
the training costs under this paragraph, except that for new hire
training the panel may fund administrative costs of up to 25 percent
of the training cost.
(C) The panel may modify the specific requirements of this
paragraph as they apply to employers or contractors proposing
projects that involve training for a significant number of small
employers in the same project.
(D) A contractor is prohibited from utilizing any funds earned or
paid as advances or progress payments for the purpose of making
payments to any other individual or entity, either directly or
indirectly, for costs incurred as a finder's fee or for other
compensation related to the predevelopment or development phase of a
training program, which is based on a percentage of the preliminary
or final panel award to the contractor for the training project.
(2) (A) Costs of program administration incurred under this
chapter. These costs shall be reviewed annually by the Department of
Finance and the Legislature and determined through the normal
budgetary process.
(B) The panel's administrative costs, exclusive of the cost of
administering Section 976.6, shall not exceed 15 percent of the total
amount annually appropriated for expenditure by the panel.
Expenditures for marketing, research, and evaluations provided under
the contract to the panel that otherwise would have been provided
directly by the panel shall not be included in this limitation.
(3) Service related to the purposes of this chapter provided by
the Small Business Development Centers.
(b) For all training contracts, the panel shall establish
requirements for in-kind contributions by either the contractor or
the employer that reflect a substantial commitment on the part of the
contractor or the employer to the value of the training. In
developing these requirements, the panel shall take into account the
ability of the contractor or the employer, because of size or
financial condition, to make any contribution, and the ability of the
Employment Training Fund to meet the demand for training authorized
by this chapter. In developing policies regarding in-kind
contributions, the panel shall hold public hearings.
10207. (a) The panel shall accept or reject a completed application
within 60 days of the receipt by the executive director.
(b) The panel shall develop expedited procedures for reviewing
proposals submitted by the state agencies which are participants in a
special interagency agreement with the panel for purposes of this
chapter.
10208. Nothing in this chapter shall be construed to preclude any
employer from contracting with any public or private training entity
for services, subject to the approval of the panel.
10209. (a) Contracts shall only be made for training in job-related
vocational skills that are necessary for participants to attain a
new job or retain an existing job with definite career potential and
long-term job security. The contracts for vocational skills training
may include ancillary training for job-related basic and literacy
skills training if the panel finds that the training is necessary to
achieve the objectives of the vocational training.
(b) The panel shall not approve any training proposal which
facilitates the change in ownership of a business leading to the
likelihood that an existing collective bargaining agreement would be
declared void.
(c) To encourage a broad and equitable distribution of funds, the
panel may require an employer who has previously received funds
pursuant to this chapter for retraining of workers at a facility to
contribute proportionately more to the cost of training in subsequent
panel contracts for training of workers at the same facility.
(d) The panel may delegate to the executive director the authority
to approve training contracts of up to one hundred thousand dollars
($100,000), provided the contracts meet the requirements of this
chapter and the policies established by the panel, and provided that
the panel regularly reviews the actions taken by the executive
director pursuant to this subdivision.
(e) Payments shall be made in accordance with a performance
contract under which partial payments may be made during training, a
partial payment may be made on placement or retention of each
trainee, and not less than 25 percent of the negotiated fee is
withheld until the trainee has been retained in employment for 90
days after the end of training with a single employer, except for
those occupations in which it is not customary for a worker to be
employed 90 consecutive days with a single employer. In these latter
cases, the panel may substitute a period similar to the probationary
period customary to the occupation. The probationary period shall not
be less than 500 work hours and shall be completed within 272 days
of the completion of the training. In no case shall any payment be
considered to have been earned until the trainee has been retained in
employment for 90 days or the equivalent probationary period for an
occupation in which it is not customary for a worker to be employed
90 consecutive days with a single employer.
(f) Contracts for new hire training shall require the contractor
to provide the placement services necessary to ensure the trainees
are placed in jobs for which they have been trained.
10210. Contracts shall be made with training agencies only if the
training agency can demonstrate all of the following:
(a) The training agency has a satisfactory record of past
performance in the placement and retention of former trainees and
employer satisfaction with former trainees.
(b) The training agency can demonstrate labor market demand for
the proposed training. Proof shall include, but not be limited to,
the documented need of specific employers for the workers proposed to
be trained in the skills proposed by the training agency.
(c) The training agency can demonstrate that the training prepares
trainees in a manner satisfactory to employers.
(d) The training agency can demonstrate that its accounting
systems include controls adequate to check the accuracy and
reliability of accounting data, promote operating efficiency, and
assure compliance with government requirements and generally accepted
accounting principles. The panel shall have full access at any time
to these accounting systems to assure compliance with these
standards.
10211. A trainee or employee participating in a training program
pursuant to this chapter shall be considered to be in a training
program having the approval of the director under Article 1.5
(commencing with Section 1266) of Chapter 5 of Part 1 of Division 1.
10212.2. The panel shall prepare a budget covering necessary
administrative costs of the panel. The budget shall not be subject to
change by the director except as agreed to by the panel. In the
event that agreement cannot be reached, the Secretary of the Labor
and Workforce Development Agency shall attempt to reach a mutual
agreement. In the event a mutual agreement cannot be reached, the
final decision shall rest with the Governor.
10213. The Employment Development Department shall cooperate with
the panel by offering necessary technical assistance, which may
include, but is not limited to, labor market information, projections
of occupational demand, and information and advice on alternative
training strategies.
10214. To assist the panel and the Legislature in assessing the
impact of this chapter over an extended period of time, the
Employment Development Department shall develop and maintain a
continuous employment, wage, and benefit history of unemployment
insurance participants.
10214.5. (a) The panel may allocate up to 15 percent of the
annually available training funds for the purpose of funding special
employment training projects that improve the skills and employment
security of frontline workers, as defined in subdivision (a) of
Section 10200. Notwithstanding any other provision of this chapter,
participants in these projects are not required to meet the
eligibility criteria set forth in paragraph (1) of subdivision (a) of
Section 10200 or subdivision (c) of Section 10201.
(b) The panel shall, on an annual basis, identify industries and
occupations that shall be priorities for funding under this section.
Training shall be targeted to frontline workers who earn at least the
state average hourly wage.
(c) The panel may waive the minimum wage provisions pursuant to
subdivision (f) of Section 10201 for projects in regions of the state
where the unemployment rate is significantly higher than the state
average, and may waive the employment retentions provisions specified
in subdivision (f) of Section 10209 and instead require that the
trainee has been retained in employment for a minimum of 90 days out
of 120 consecutive days after the end of training with no more than
three employers.
(d) (1) The panel may allocate funds pursuant to subdivision (a)
to increase the productivity and extended employment retention of
workers in the state's major seasonal industries.
(2) In funding special employment training projects for this
purpose, the panel may do all of the following:
(A) When the amount of the postretention wages of each trainee who
has completed training exceeds the amount of wages that the trainee
earned before and during training, waive the minimum wage
requirements set forth in subdivision (f) of Section 10201.
(B) Waive the employment retention requirements set forth in
subdivision (f) of Section 10209 and instead require that the trainee
be retained in employment for not less than 500 hours within the
12-month period following the completion of the training.
(C) When the panel finds that the training is necessary to achieve
the objectives of vocational training, waive the limitation on
job-related basic and literacy skills training set forth in
subdivision (a) of Section 10209.
(3) For purposes of this section, "major seasonal industries"
means eligible employers who satisfy all of the following
requirements:
(A) Have a workforce comprised of at least 50 percent of workers
whose employment period is necessarily cyclical, including, but not
limited to, businesses directly involved in the harvesting, packing,
or processing of goods or products.
(B) Have retained at least 50 percent of the same seasonal
employees for at least one season of not less than 500 hours for the
preceding 12-month period.
(C) Pay wages and provide benefits that exceed industry averages.
(e) The panel shall adopt minimum standards for consideration of
proposals to be funded pursuant to this section.
(f) The panel may select contracts funded under this section based
on competitive bidding.
(g) It is the intent of the Legislature in providing the authority
for these projects that the panel allocate these funds in a manner
consistent with the objectives of this chapter as provided in Section
10200.
10214.6. (a) The panel shall establish the Partnership for
Workforce Recovery Training (PWRT) for the purposes of supporting and
implementing the workforce development goals set forth in the
federal American Recovery and Reinvestment Act of 2009 (ARRA) (P.L.
111-5). The panel shall develop and publish guidelines for
implementation of the PWRT, consistent with, and including adequate
fiscal and accounting controls, as prescribed in subdivision (g) of
Section 10205.
(b) The panel may allocate any funds it receives pursuant to the
federal Workforce Investment Act of 1998 (29 U.S.C. Sec. 2801 et
seq.) and the ARRA to support the activities of the PWRT. Any funds
received by the panel pursuant to this section shall be deposited
into a separate account established by the department in the State
Treasury, and used for the purposes of this section.
(c) The panel may adopt any regulations necessary to implement
this section, but any regulations so adopted are exempt from the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
(d) The panel may solicit proposals and enter into contracts or
other agreements to secure funding for the purposes of this section,
but those proposals, contracts, and agreements shall be exempt from
any competitive bidding requirements otherwise prescribed in statute.
10214.7. The panel shall allocate funds available in the annual
Budget Act for training programs designed for individuals who are
eligible to receive benefits under Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code
or who have received CalWORKs benefits within one year of the
commencement of the training program.
(a) It is the intent of the Legislature in providing authority for
these training programs that the panel allocate these funds in a
manner consistent with the objectives of this chapter as provided in
Section 10200.
(b) Notwithstanding any other provisions of this chapter, the
eligibility criteria for individuals trained under this section shall
be employment with an eligible employer as defined in subdivision
(a) of Section 10201 and:
(1) Receipt of CalWORKs benefits at the time training begins, or
(2) Receipt of CalWORKs benefits within one year of the time
training commenced.
(c) For purposes of this section, the panel may waive, if
necessary, any of the following:
(1) The employer eligibility criteria outlined in paragraph (1) of
subdivision (a) of Section 10200.
(2) The minimum training wage requirements pursuant to subdivision
(g) of Section 10201.
(3) The employment retention provisions specified in subdivision
(f) of Section 10209 and instead require that the trainee has been
retained in employment for a minimum of 90 days out of 120
consecutive days after the end of training with no more than three
employers.
(d) Notwithstanding any other provisions of this chapter, the
panel shall consider proposals that use innovative strategies and
training options to enable current and prior CalWORKs recipients and
eligibles to retain employment, including, but not limited to,
projects that provide basic skills training.
(e) The panel shall adopt administrative procedures for approving
and administering contracts under this section to expedite contracts,
minimize barriers to completion of training, and facilitate the
training of single trainees and small groups of trainees from one
worksite.
10214.9. (a) (1) The panel may fund licensed nurse training
programs to train individuals who are currently working as nurse
assistants or caregivers in a health facility, as defined in Section
1250 of the Health and Safety Code.
(2) It is the intent of the Legislature that the panel allocate
these funds in a manner consistent with the objectives of this
chapter as provided in Section 10200.
(b) Notwithstanding any other provisions of this chapter, the
panel shall waive the minimum wage provisions, pursuant to
subdivision (f) of Section 10201, if all of the following conditions
are met:
(1) The employee is enrolled in an approved licensed nurse
training program that consists of not less than 1,000 hours of
training.
(2) The employer pays the employee not less than 120 percent of
the state minimum wage for not less than the first 20 hours of work
per week during each week the employee is enrolled in the training
program.
(3) Each program results in full-time employment customary for the
occupation for which the individuals are being trained.
(c) Notwithstanding any other provisions of this chapter, the
panel shall waive any limitation on the hourly length of training
programs to allow approval and funding for up to 750 hours of a
licensed nurse training program; provided, however, that those funds
be used to pay for up to 750 training hours that remain in the
licensed nurse training program after the employee has completed the
first 800 hours of that program.
(d) Notwithstanding any other provision of this chapter, employers
that participate in the nurse training programs funded pursuant to
this section, are not required to meet the eligibility criteria set
forth in paragraph (1) of subdivision (a) of Section 10200.
10215. The funding of individual project grants by the panel may
take the form of either direct grants to the employer or training
agency, or credits to the employer's liability for unemployment
insurance contributions or reimbursements. Credits to the employer's
liability for unemployment insurance contributions or reimbursements
shall be drawn from the Employment Training Fund.
10217. Funds in the Employment Training Fund created by Section
1610 shall be appropriated annually in the Budget Act by the
Legislature for allocation by the panel for the purposes of this
chapter, except those funds determined by the Legislature to be
necessary to administer Section 976.6 and Article 6 (commencing with
Section 1610) of Chapter 6 of Part 1 of Division 1 shall be
appropriated to the department.
