Bill Text: NY S09376 | 2023-2024 | General Assembly | Introduced
Bill Title: Enacts the good jobs guarantee program to provide workforce training and opportunities for employment for residents of New York state to secure high paying jobs through the acquisition of job skills.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2024-05-14 - REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS [S09376 Detail]
Download: New_York-2023-S09376-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9376 IN SENATE May 14, 2024 ___________ Introduced by Sens. GIANARIS, COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Econom- ic Development and Small Business AN ACT to amend the economic development law and the New York state urban development corporation act, in relation to enacting the good jobs guarantee program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The economic development law is amended by adding a new 2 article 28 to read as follows: 3 ARTICLE 28 4 GOOD JOBS GUARANTEE PROGRAM 5 Section 500. Short title. 6 501. Legislative findings. 7 502. Good jobs guarantee program. 8 503. Definitions. 9 504. Program administration. 10 § 500. Short title. This article shall be known and may be cited as 11 the "good jobs guarantee program act". 12 § 501. Legislative findings. For many New Yorkers, there are few path- 13 ways to good jobs, and economic mobility is no longer attainable. Tradi- 14 tional paths are failing, and the system is broken. Over 76% of Ameri- 15 cans, which equates to 218+ million adults, do not have college degrees 16 even though most high-paying jobs require one. At the same time, the 17 United States is burdened by a $1.7 trillion student loan crisis because 18 college financing has decoupled from outcomes. The system is especially 19 stacked against low-income individuals and people of color. In New York 20 State, this problem persists: 60% of adults lack a 4-year degree and 21 degree holders owe $90 billion in loans. College is not the only path to 22 a good job - alternatives for workforce training exist. While these 23 models have high potential, limited funding and frameworks prevent them EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15190-06-4S. 9376 2 1 from confronting this challenge and new models are needed to address the 2 scale. 3 Accordingly, the Good Jobs Guarantee Program Act would establish a 4 program within the Empire State Development Corporation to facilitate 5 the implementation of workforce training for low-income New Yorkers 6 through a public-private partnership capped equity financing framework. 7 Core to the Good Jobs Guarantee program is ensuring that low-income New 8 Yorkers seeking economic opportunity are significantly better off upon 9 completing workforce training than they were before. Individuals who 10 participate in training programs under the Good Jobs Guarantee will not 11 be charged any tuition or upfront costs; they will only incur payment 12 obligations if the program actually succeeds in securing them employment 13 at high, family-sustaining wages. The bill also contains several 14 protections to ensure that participants can receive workforce training 15 for good paying jobs without being saddled by unduly burdensome debt. If 16 at any time after their training a participant is unable to maintain a 17 good job for any reason, the participant's payment obligations will 18 cease. This program shifts the burden away from the job seeker and onto 19 approved workforce training providers to achieve success. By bringing 20 this outcome-based financing model to scale, this bill aims to revolu- 21 tionize workforce training in New York and guarantee good jobs to low- 22 income New Yorkers. 23 § 502. Good jobs guarantee program. There is hereby established a good 24 jobs guarantee program to provide workforce training through approved 25 providers to enable participants to secure higher paying, sustainable 26 jobs with skills gained through the program. 27 § 503. Definitions. As used in this article, the following terms shall 28 have the following meanings: 29 1. "Approved provider" means an entity that is approved by the commis- 30 sioner to provide workforce training to eligible participants to enable 31 such individuals to secure post-training employment at an annual minimum 32 salary of fifty thousand dollars; 33 2. "Eligible participant" means an individual who applies for work- 34 force training offered through approved providers pursuant to this arti- 35 cle who, at the time of application: 36 (a) has a gross annual income of less than forty-five thousand dollars 37 per year; and 38 (b) is either (i) receiving assistance pursuant to section ninety-five 39 or one hundred fifty-eight of the social services law, or (ii) does not 40 possess a college degree. 41 3. "Program administrator" shall mean an individual or business 42 selected by the commissioner through competitive process to oversee the 43 good jobs guarantee program and guarantor fund. Such program administra- 44 tor shall have demonstrated experience in the following areas: (a) rais- 45 ing capital from institutional investors and philanthropic organizations 46 with focus on workforce development goals for low income individuals, 47 (b) implementing financial models to leverage private investment with 48 focus on workforce development goals for low income individuals, (c) 49 providing training with focus on workforce development goals for low 50 income individuals, and (d) any other criteria set by the commissioner. 51 § 504. Program administration. 1. (a) The program administrator may 52 deploy capital to approved providers for workforce training of eligible 53 participants in accordance with the provisions of this article. 54 (b) Approved providers may be in any employment field, subject to the 55 discretion of the program administrator.S. 9376 3 1 (c) The program administrator shall deploy capital to an approved 2 provider for workforce training subject to the provisions of this arti- 3 cle and any other requirement as the commissioner shall deem necessary 4 and advisable. 5 (d) An approved provider shall secure post-training employment for a 6 participant who completes a workforce training program. 7 (e) An approved provider shall not consider the credit worthiness of 8 any applicant in determining eligibility for participation in the 9 program. 10 2. (a) The approved provider shall enter into contracts with eligible 11 participants which shall stipulate that participants shall only incur 12 payment obligations for the costs of a training program based on such 13 participant's monthly salary following completion of a workforce train- 14 ing program and subsequently securing employment with an annual salary 15 in excess of fifty thousand dollars. 16 (b) For purposes of this subdivision "annual salary" shall not include 17 a spouse's income, retirement pensions and annuities, social security 18 benefits, sources of state and federal aid including, but not limited 19 to, unemployment programs, disaster relief programs, Medicare or Medi- 20 caid benefits, economic impact payments, earned income tax credits, 21 child tax credits, other income excluded as taxable by the federal 22 internal revenue service, passive income not related to the full-time 23 employment, and any other sources as determined by the commissioner. 24 (c) Eligible participants shall not be required to pay tuition or 25 other upfront payments in exchange for receiving training under the good 26 jobs guarantee program, except as otherwise provided in this section. 27 3. (a) Payment obligations, pursuant to contracts entered into under 28 the program, shall be made to the approved provider on a monthly basis 29 at a variable percentage of an eligible participant's salary, but the 30 variable percentage shall not exceed twenty percent of the eligible 31 participant's total annual salary. 32 (b) The maximum repayment period shall not exceed eight years from the 33 start of training, and contracts between approved providers and eligible 34 participants shall stipulate a total payment obligation amount. 35 (c) The program administrator shall establish an allowance for hard- 36 ship exceptions totaling a minimum of three months of late or excused 37 payments. Any fees established for late payments shall not exceed five 38 percent of the monthly payment obligation amount. 39 (d) No interest shall accrue on any obligations due. 40 (e) Payment obligations shall not be structured as an outcome-based 41 financing loan to participants in the program. 42 (f) There shall be no restrictions on the type or field of employment 43 a participant may accept following completion of a workforce training 44 program under this article. 45 § 2. Section 1 of chapter 174 of the laws of 1968, constituting the 46 New York state urban development corporation act, is amended by adding a 47 new section 60 to read as follows: 48 § 60. New York state good jobs program guarantor fund. 1. Definitions. 49 (a) For the purposes of this section the terms "approved provider" and 50 "program administrator" shall have the meanings set forth in article 28 51 of the economic development law. 52 (b) "Guarantor fund" shall mean a fund totaling one hundred million 53 dollars for the purpose of a credit enhancement to attract investment in 54 private markets managed by the program administrator under the good jobs 55 guarantee program. The guarantor fund shall not be used for direct 56 investment to approved providers.S. 9376 4 1 (c) "Commissioner" shall mean the commissioner of economic develop- 2 ment. 3 2. Good jobs program guarantor fund. The corporation, or its agent, 4 shall establish a good jobs program guarantor fund to provide a minimum 5 loss reserve to act as a credit enhancement for funds raised by the 6 program administrator to assist approved providers offering workforce 7 training pursuant to article 28 of the economic development law. 8 Further, the corporation shall provide approval for the disbursements of 9 the good jobs program guarantor fund by the program administrator. 10 Disbursements from the fund shall only be made if the terms of a good 11 jobs guarantee program contract as agreed to by such program administra- 12 tor and an approved provider cannot be met and shall be subject to the 13 approval of the commissioner. 14 3. Administration of the good jobs program guarantor fund. (a) The 15 corporation is hereby authorized to: 16 (i) enter into a contract with a program administrator to act as an 17 agent of the corporation with respect to the administration of the good 18 jobs guarantee program and guarantor fund, provided that the corporation 19 shall provide approval for disbursements of the guarantor fund; 20 (ii) conduct an annual review and assessment of the performance of 21 such program administrator in its capacity as an agent of the corpo- 22 ration, to determine whether the contract for the services of the 23 program administrator should be renewed. Such review shall be based on 24 whether such program administrator has satisfactorily met the terms and 25 conditions of such contract; 26 (iii) allow such program administrator the opportunity to make correc- 27 tive action where an initial determination has been made that such 28 program administrator's performance is unsatisfactory; and 29 (iv) submit to the speaker of the assembly and the temporary president 30 of the senate the corporation's recommendation to terminate such 31 contract with the program administrator upon a final review of such 32 program administrator's performance and conclusion that such program 33 administrator's performance is unsatisfactory. The corporation shall 34 begin a competitive bid process to select a new program administrator 35 upon the termination of such contract. 36 (b) Any contract entered into pursuant to subparagraph (i) of para- 37 graph (a) of this subdivision shall: 38 (i) be for a period of ten years and shall be renewed for an addi- 39 tional ten-year period subject to the provisions of subparagraph (ii) of 40 paragraph (a) of this subdivision; and 41 (ii) provide for compensation of expenses in accordance with reason- 42 able market standards incurred by the program administrator in 43 connection with such services provided by the program administrator and 44 for such other services as the corporation may deem necessary including, 45 but not limited to, the use of premises, personnel, technical assistance 46 and personal property of such program administrator. 47 4. Duties of the program administrator. The program administrator 48 shall: 49 (a) structure and raise capital from private, philanthropic, and 50 public investors using the guarantor fund as a credit enhancement. Such 51 capital raised shall be used to support workforce training provided 52 under the good jobs guarantee program; 53 (b) enter into contracts with approved providers to deploy capital 54 raised to approved providers to support workforce training under the 55 good jobs guarantee program pursuant to article 28 of the economic 56 development law and manage the investment returns; andS. 9376 5 1 (c) perform any other duties as deemed necessary by the commissioner. 2 5. Rules and regulations. The commissioner may adopt any rules or 3 regulations necessary to effectuate the purposes of this section. 4 § 3. This act shall take effect on the ninetieth day after it shall 5 have become a law. Effective immediately, the addition, amendment and/or 6 repeal of any rule or regulation necessary for the implementation of 7 this act on its effective date are authorized to be made and completed 8 on or before such effective date.
