976.6.

 In addition to other contributions required by this division, every employer, except an employer defined by Section 676, 684, or 685, and except an employer which has elected an alternate method of financing its liability for unemployment compensation benefits pursuant to Article 5 (commencing with Section 801), or Article 6 (commencing with Section 821) of Chapter 3, shall pay into the Employment Training Fund contributions at the rate of 0.1 percent of wages specified in Section 930. The contributions shall be collected in the same manner and at the same time as any contributions required under Sections 977 and 977.5.

This section shall remain in effect only until January 1, 2002, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2002, deletes or extends that date.

1612.

 This article shall remain in effect only until January 1, 2002, and as of that date is repealed, unless a later enacted statute, which is chaptered before January 1, 2002, deletes or extends that date.

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 initial three-year plan shall be submitted to the Governor and the Legislature not later than January 1, 1994. The initial update of the plan shall be submitted not later than July 1, 1994, and annual updates of the plan thereafter shall be submitted not later than July 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, and economic forecasts.

(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 Job Training Partnership Act funds and other state and federal training and vocational education funds on eligible participants.

(b)  The panel shall 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 and operational objectives with respect to meeting the needs of small employers.

(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 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. This list should identify those industries in which upgrade training is likely to encourage hiring of the unemployed on a backfill basis.

(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 private industry council with the approval of the appropriate local elected officials in the service delivery area.

(4)  A grant recipient or administrative entity selected pursuant to Section 103 of the Federal Job Training Partnership Act and Section 15021, with the approval of the local private industry council 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. However, the panel shall set contracting objectives with respect to minority-owned and female-owned businesses that are substantially similar to those required by Chapter 6 (commencing with Section 16850) of Part 3 of Division 4 of Title 2 of the Government Code, Section 10108.5 of the Public Contract Code, and Article 1.5 (commencing with Section 10115 of Chapter 1 of Part 2 of Division 2 of the Public Contract Code). No trainee shall receive employment training under this chapter for a period of more than 18 months. 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 specified in the three-year plan. In doing so, the panel shall seek to facilitate the employment of the maximum number of eligible participants. This chapter shall not be construed to require the panel to set aside funds based on the priorities established in the three-year plan.

(e)  Establish minimum standards for the consideration of proposals, which shall include, but not be limited to, the identification of employers who have been contacted by the contractor and who have provided reasonable assurance that they will employ successful trainees, 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.

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. The chair of the panel shall appoint an advisory research council.

(i)  The advisory research council may, in addition to performing any other duty, conduct a review of panel policies with the goal of developing an improved process for developing, funding, and implementing panel contracts as described in this section. This review may include, but shall not be limited to, an examination of all of the following:

(1)  The necessity for minimum training hours.

(2)  The ratio between fixed classroom training and structured onsite training.

(3)  Training across job classifications within the same industry base.

(4)  Voluntary training after hours.

(5)  Grievance processes.

(6)  Reimbursement timelines.

(7)  Contract approval, amendment, and modification processes.

On or before April 1, 1996, the panel shall submit an interim report to the Legislature that contains the advisory council’s recommendations for an improved contracting process and addresses the factors listed above. On or before December 31, 1996, the panel shall submit a final report to the Legislature that contains the advisory council’s recommendations on that subject.

(j)  Expedite the processing of contracts for firms considering locating or expanding businesses in the state, as determined by the Trade and Commerce Agency, in accordance with the priorities for employment training programs set forth in paragraph (2) of subdivision (c) of Section 10200.

(k)  Coordinate and consult regularly with business groups and labor organizations, the State Job Training Coordinating Council, the State Department of Education, the office of the Chancellor of the California Community Colleges, the Employment Development Department, and the Trade and Commerce Agency.

( 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. In no case shall the panel withhold information from the public regarding its operations, procedures, and decisions which 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)  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.

The panel’s administrative costs, exclusive of the cost of administering Section 976.6, shall not exceed 15 percent of the amount annually available for expenditure by the panel. Expenditures for marketing, research, and evaluations provided under contract to the panel under paragraph (1) 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 pursuant to an interagency agreement with the Trade and Commerce Agency.

(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. Contributions shall be evaluated against plans required in subparagraph (A) of paragraph (2) of subdivision (b) of Section 10201 to sustain a commitment to workplace training after the contract ends. In developing policies regarding in-kind contributions, the panel shall hold public hearings.

(c)  In order to encourage successful new hire training, the panel shall develop a new hire cost reimbursement system. The new hire cost reimbursement system shall recognize the additional risk attendant to new hire training if the contractor successfully meets at least 60 percent of the training and placement goals of a new hire contract. The reimbursement system authorized by this subdivision shall discourage excessive overenrollment at the beginning of the contract, and shall not provide reimbursements if the training and placement goals are achieved primarily through modification of the original contract. The new hire cost reimbursement system provided for in this subdivision shall remain in effect only until December 31, 1995.

10206.5.

 (a)  The Bureau of State Audits shall conduct or contract for a comprehensive management review and evaluation of the panel. This review shall take account of all existing performance evaluations and shall include, but not be limited to, all of the following:

(1)  The contracting policies, procedures, and regulations of the panel.

(2)  The panel’s decisionmaking processes for contracts.

(3)  The cost and efficiency of the administration of internal panel contracts.

(4)  The methods and procedures involved in setting the panel’s internal administrative and procedural regulations.

(5)  The internal administrative procedures and policies of the panel.

(6)  Findings and recommendations for statutory and procedural changes necessary to enable the panel to effectively distribute contracts in accordance with the legislative findings and declarations specified in Section 10200.

(b)  The Bureau of State Audits shall submit the findings and recommendations of the review to the Legislature on or before October 1, 1996.

10214.5.

 (a)  The panel may allocate up to 20 percent of the annually available training funds for the purpose of funding special employment training projects for the purposes of any of the following:

(1)  Supporting retraining for frontline workers, as defined in subdivision (a) of Section 10200, in occupations that pay 100 percent of the state or regional average hourly wage when a business is difficult to serve under the panel’s standard project format; provided that the employment may not result in earnings of less than 95 percent of the state average hourly wage.

(2)  Encouraging the development of new industries, including the electric and clean fuel vehicle industry and other advanced transportation technology industries, that contribute to high-skilled employment and economic vitality in California.

(3)  Supporting efforts that address the training and employment of workers affected by defense industry cutbacks and military base closures.

(4)  Stabilizing employment in fields where there is a demonstrated deficit of trained employees and clear career advancement opportunities.

(5)  Supporting small business entrepreneurial training in business management and related skills for owners to enhance the competitive position of businesses with at least one full-time but fewer than 10 full-time employees that are registered with the Employment Development Department and have paid unemployment insurance taxes for at least six months prior to contract development. The panel may waive, if necessary, the minimum wage requirements pursuant to subdivision (g) of Section 10201, and employment retention provisions specified in subdivision (f) of Section 10209, and instead require that the entrepreneurial business, at a minimum, retain the same number of full-time workers it employed prior to the start of training for at least 90 days after the completion of training by the owner.

Notwithstanding any other provision of this chapter, participants in these projects need not meet the same eligibility criteria as outlined in paragraph (1) of subdivision (a) of Section 10200 and subdivision (b) of Section 10201. In addition, the panel may allocate funds under this section for the development of training materials and training programs that contribute to the development of new industries in the state.

(b)  The panel may allocate up to 15 percent of the funds specified in subdivision (a) for job-related vocational and literacy skills training and the employment of individuals with barriers to full-time, stable employment. These barriers may include, but shall not be limited to, language, basic skills, and occupational literacy barriers to employment. These individuals shall meet the eligibility criteria specified in subdivision (b) of Section 10201. Preference shall be given to contractors that can provide trainees with the comprehensive services necessary to successfully complete training, overcome barriers, secure gainful employment, and become self-sufficient. The panel may waive, if necessary, the eligibility criteria outlined in paragraph (1) of subdivision (a) of Section 10200, the minimum wage requirements pursuant to subdivision (g) of Section 10201, and 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. In addition, the panel may allocate funds under this subdivision for reasonable child care and transportation costs for trainees.

(c)  The panel shall adopt minimum standards for consideration of proposals to be funded pursuant to this section.

(d)  The panel may not delegate its authority to approve contracts written pursuant to this section.

(e)  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.

10218.5.

 (a)  This chapter shall remain in effect only until January 1, 2002, and as of that date is repealed, unless a later enacted statute, which is chaptered before January 1, 2002, deletes or extends that date.

(b)  The panel may enter into contracts that permit employment training through June 30, 2002, however, no contract shall have a termination date that extends beyond December 31, 2002.

(c)  In the event a later enacted statute does not extend the January 1, 2002, repeal date of this chapter, the panel shall enter into an agreement with another state agency, to be selected by the Governor, that shall act on behalf of the panel for the sole purpose of contract administration, which shall include, but is not limited to, monitoring performance, generating amendments to downsize the contracts, closing out contracts, auditing contracts, and making payment for any contracts that extend beyond January 1, 2002.

(d)  Any agency acting on behalf of the panel pursuant to this section may seek a budget appropriation or augmentation for both the administration of the program and payment to contractors.