Federal Workforce Pell Grant program: local workforce development boards: participant training requirement.

Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California.

Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.

This bill would prohibit a postsecondary educational institution from disbursing federal Workforce Pell Grant program funds to students enrolled in the institution's short-term programs, and advertising, marketing, or informing students about the availability of those funds unless the institution has (A) obtained authorization from the commission, on behalf of the Governor, that the institution meets the requirements of specified provisions related to the federal Workforce Pell Grant program, and (B) obtained approvals and met all requirements set forth by the United States Department of Education.

This bill would prohibit the commission from authorizing a postsecondary educational institution to receive federal Workforce Pell Grant program funds for a short-term program if the institution, among other things, partners, contracts, or affiliates with an entity that is not accredited by a specified accrediting agency, as provided. The bill would authorize the commission to use the California Priority Programs List to determine whether a short-term program satisfies specified requirements under the federal Workforce Pell Grant program, as provided.

(2) Existing federal law, the Workforce Innovation and Opportunity Act (WIOA), provides for workforce development activities, including activities in which states may participate. Existing state law, the California Workforce Innovation and Opportunity Act (CalWIOA), establishes the California Workforce Development Board to assist the Governor in the development, oversight, and continuous improvement of California's workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. CalWIOA creates the Consolidated Work Program Fund in the State Treasury, for the receipt of all moneys deposited pursuant to WIOA and requires moneys in the fund to be made available, upon appropriation by the Legislature, to the Employment Development Department for expenditure consistent with the purposes of WIOA.

Existing law contains various programs for job training and employment investment, including work incentive programs, as specified, and establishes local workforce investment boards to perform duties related to the implementation and coordination of local workforce investment activities. Existing law requires local workforce investment boards to spend a minimum percentage of specified funds for adults and dislocated workers on federally identified workforce training programs and allows the boards to leverage specified funds to meet the funding requirements, as specified. Existing law requires a local workforce development area that does not meet the expenditure requirements to submit a corrective action plan to the Employment Development Department that provides reasons for not meeting the requirements and describes actions taken to address the identified expenditure deficiencies. Existing law also requires the department to calculate for each local workforce development board whether the local workforce development board met the expenditure requirements and make annual reports regarding the training and supportive services expenditures.

This bill, starting July 1, 2028, instead of requiring the local workforce development boards to spend a minimum percentage of specified funds for adults and dislocated workers, would require the boards to ensure that at least 50% of participants enrolled in the adult and dislocated worker programs receive workforce training services, and would prescribe the training services that count toward the participant training requirement. The bill would require a local workforce development area that does not meet the participant training requirement to submit a corrective action plan to the Employment Development Department that provides reasons for not meeting that requirement and describes actions taken to address the identified participant training deficiencies. By imposing new requirements on local workforce development boards, the bill would impose a state-mandated local program. The bill would require the Employment Development Department to calculate for each local workforce development board, among other things, whether the local workforce development board met the participant training requirement and make annual reports regarding the number of participants enrolled in adult and dislocated worker program, the percentage of those enrolled participants receiving training services, and the training expenditures and supportive service expenditures made by local workforce development boards, as specified. The bill would also make nonsubstantive conforming changes.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.