California Employment Training Panel

California’s Unemployment Insurance Code in Division 3, Part 1, Chapter 3.5 contains the Employment Training Panel. Section 10200 contains five legislative findings and declarations, including that 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.

In addition, 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 will fund only projects that meet four specified criteria.

The ETP, in funding projects that meet specified requirements, is required to give funding priority to those projects that best meet seven specified goals. The program established through this chapter is to be coordinated with all existing employment training programs and economic development programs.

Section 10201 defines the following terms: “department,” “employer,” “eligible employer,” “eligible participant,” “executive director,” “fund,” “job,” “new hire training,” “panel,” “retraining,” “soft skills,” “state average hourly wage,” “trainee,” and “training agency.”

Section 10201.5 states that, 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 or regions identified in a proclamation of a state of emergency issued by the Governor, the panel may waive the minimum wage requirements under specified circumstances.

Section 10202 establishes the Employment Training Panel in the Employment Development Department. The executive director is appointed by the Governor, and will 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 panel may employ personnel necessary to carry out the purposes of this chapter. The Governor appoints two assistant directors, to serve at the pleasure of the Governor. The assistant directors has the duties as assigned by the executive director, and is responsible to the executive director for the performance of their duties.

Section 10202.5 sets forth the eight persons on the panel and who appoints them. Appointive members of the panel 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.

Section 10203 allows the panel to meet as necessary at locations throughout the state. The panel has to maintain a minimum of three regional offices and the central office is located in Sacramento.

Section 10204 requires the panel to coordinate its programs with local and state workforce development boards and other partners of the federal Workforce Innovation and Opportunity Act of 2014. 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 by the panel.

Section 10205 requires the panel to engage in more than twenty specified activities.

Section 10206 specifies that the ETP may allocate money in the fund for any of the specified six purposes. For all training contracts, the panel must 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 has to take into account specified conditions.

Section 10207 requires the panel to accept or reject a completed application within 60 days of the receipt by the executive director Also, the panel has to 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.

Section 10208 says that nothing should be construed to preclude any employer from contracting with any public or private training entity for services, subject to the approval of the panel.

Section 10209 requires contracts 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 cannot 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.

The panel may delegate to the executive director the authority to approve training contracts of up to $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.

Payment are to 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%t 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.

Section 10210 requires contract made with training agencies only if the training agency can demonstrate four specific requirements.

Section 10211 states that a trainee or employee participating in a training program pursuant to this chapter must be considered to be in a training program having the approval of the director.

Section 10212.2 requires the panel to prepare a budget covering necessary administrative costs of the panel. The Secretary of the Labor and Workforce Development Agency must attempt to reach a mutual agreement. In the event a mutual agreement cannot be reached, the final decision will be made by the Governor.

Section 10213 requires the EDD to 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.

Section 10214 provides that, in order to assist the panel and the Legislature in assessing the impact of this chapter over an extended period of time, the EDD must develop and maintain a continuous employment, wage, and benefit history of unemployment insurance participants.

Section 10214.5 authorizes the panel to allocate up to 15% 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. The panel is required, on an annual basis or as needed in response to a proclamation of a state of emergency issued by the Governor under the California Emergency Services Act, to identify industries and occupations that must be priorities for funding under this section.

In funding special employment training projects for this purpose, the panel may do any of three specified actions. The term “major seasonal industries” is defined. The panel may select contracts funded under this section based on competitive bidding.

Section 10214.6 requires the panel to develop and publish guidelines for the purpose of supporting and implementing one or more alternative fund programs to reimburse the cost of training consistent with the purposes of this part, using funds from a source other than the employment training tax. The alternative funds may be from any federal, state, or local governmental entity, as appropriated in statute or other means.

Section 10214.7 requires the panel to allocate funds available in the annual Budget Act for training programs designed for individuals who are eligible to receive benefits. 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.

The eligibility criteria for individuals trained under this section is required to be employment with an eligible employer meet specified criteria. The panel may waive, if necessary, certain specified requirements. The panel has to 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.

Section 10214.9 authorizes the panel to fund licensed nurse training programs to train individuals who are currently working as nurse assistants or caregivers in a health facility. It is the intent of the Legislature that the panel allocate these funds in a manner consistent with the objectives of this chapter. The panel has to waive the minimum wage provisions if specified conditions are met.

Section 10215 states that 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.

Section 10217 requires funds in the Employment Training Fund to be appropriated annually in the Budget Act by the Legislature for allocation by the panel for the purposes of this chapter, except specified funds.