Bill Text: CA AB1320 | 2009-2010 | Regular Session | Amended

California Assembly Bill 1320 (Prior Session Legislation)

Bill Title: Workforce development: Lifelong Learning Accounts

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2010-08-02 - In committee: Set, second hearing. Referred to APPR suspense file. [AB1320 Detail]

Download: California-2009-AB1320-Amended.html

BILL NUMBER: AB 1320	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 2, 2009
	AMENDED IN ASSEMBLY  JUNE 1, 2009

INTRODUCED BY   Assembly Member Fong
    (   Coauthor:   Assembly Member  
Fuentes   ) 

                        FEBRUARY 27, 2009

   An act to add Chapter 6 (commencing with Section 14550) to
Division 7 of the Unemployment Insurance Code, relating to workforce
development.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1320, as amended, Fong. Workforce development: 
lifelong learning pilot program.   Lifelong Learning
Accounts Initiative Program. 
   The federal Workforce Investment Act of 1998 provides for
workforce investment activities, including activities in which states
may participate.  Existing law, the California Workforce
Investment Act, establishes the California Workforce Investment
Board, as prescribed, and requires the board to assist the Governor
in performing specified duties relating to the development,
implementation, and promotion of various workforce development
activities, job training, and employment investment, including work
incentive programs, as specified.   Existing law
authorizes the Employment Development Department to administer the
state unemployment insurance and the disability compensation
programs. 
   This bill would, beginning January 1, 2012, create the Lifelong
Learning Accounts  Pilot   Initiative 
Program, for the purpose of providing grants to employers and
employees to be used to establish individual lifelong learning
accounts, as defined, for the deposit of funds to be used by those
employees and employers for purposes related to lifelong education
and training. The bill would require the  board 
 department  to establish a grant program and implement and
administer the program, as specified. The bill would require the
 board   department  to prepare and submit
a report to specified legislative fiscal and policy committees,
evaluating the effectiveness of the program, as prescribed. The bill
would provide that its provisions shall only be implemented if the
Director of Finance makes a written determination that there are
sufficient funds from sources other than the General Fund available
for that purpose.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 6 (commencing with Section 14550) is added to
Division 7 of the Unemployment Insurance Code, to read:
      CHAPTER 6.  LIFELONG LEARNING ACCOUNTS  PILOT 
 INITIATIVE  PROGRAM


   14550.  The Lifelong Learning Accounts  Pilot 
 Initiative  Program is hereby created in the department for
the purpose of providing grants to employers and employees to be
used to establish individual lifelong learning accounts for the
deposit of funds to be used by those employers and employees for
purposes related to lifelong education and training.
   14550.1.  For purposes of this chapter, the following terms have
the following meanings: 
   (a) "Board" means the California Workforce Investment Board.
 
   (a) "Department" means the California Employment Development
Department. 
   (b) "Employee" means a California resident who works at least 20
hours or more a week, on average, for an employer in this state.
   (c) "Employer" means a person, partnership, corporation, limited
partnership, or limited liability company that retains at least one
eligible employee for six months.
   (d) "Grant funds" means any award, donation, or gift from an
individual, foundation, business, or any assistance provided to this
state by the federal government.
   (e) "Lifelong Learning Account" means an account held by a
trustee, custodian, fiduciary, or other person approved by the
department to be used for the deposit of funds to pay for qualified
expenses such as fees, tuition, or other materials relating to
 job   career  training and education.
   (f) "Match" means moneys that will be supplied in an amount
 equal   up  to the total contributed by
the employee and employer.
   (g) "Qualified expense" means "qualified higher education expenses"
as defined in Section 529(e) of the Internal Revenue Code.
   14550.2.  (a) The  board   department 
shall establish a grant program to provide grants to employees and
employers to encourage those employees and employers to save for
lifelong education and training. Under this program, an employee
shall be eligible to receive a grant fund match of up to 50 percent
of the first five hundred dollars ($500) that the employee
contributes into his or her Lifelong Learning Account for a maximum
amount not to exceed two hundred fifty dollars ($250). An employee
may also be eligible for a match of up to 50 percent of the first
five hundred dollars ($500) contributed, on the employee's behalf, by
his or her employer, for a maximum not to exceed two hundred fifty
dollars ($250). The maximum total amount of the grant fund match that
could be received by an individual employee, during a single tax
year, is five hundred dollars ($500).  Matching funds will be
available based upon the determination by the department that there
are sufficient funds to cover program costs. 
   (b) The  board   department  may
contract with an individual, nonprofit organization, or other
business to administer and implement the grant program.
   (c) Any employer or employee who enters into an agreement with the
 board   department  under this program
may designate the account established, pursuant to the agreement, as
a Lifelong Learning Account. The  board 
department  shall ensure that the grant program complies with
the applicable requirements of Article 19 (commencing with Section
69980) of Chapter 2 of Division 5 of Part 42 of the Education Code.
   (d) The  board   department  shall make
education and career advising and other support services available to
employees under the program, and shall provide technical assistance
to employers to implement the grant program. The  board
  department  may use grant funds to offset the
costs of support services, technical assistance, and program
administration.  The department may limit the number of available
accounts based upon the amount of grant funds received. 
   (e) There shall be established in the State Treasury, a Lifelong
Learning Program Fund to receive contributions from individuals,
foundations, nonprofit organization businesses, and the federal
government to be used for the program.
   (f) The  board   department  shall
prepare and submit a report to the Assembly Committee on Budget and
the Senate Committee on Budget and Fiscal Review, and the appropriate
legislative policy committees evaluating the effectiveness of this
chapter. The report shall be submitted to those committees at least
20 days prior to the date that the Legislature convenes the second
year of the 2011-12 Regular Session.
   (g) The  board   department  shall,
after consultation with the Treasurer and the Scholarshare Investment
Board, adopt rules and regulations that are necessary or appropriate
to ensure the proper implementation and administration of the
program.
   14550.3.  This chapter shall become operative on January 1, 2012.
   14550.4.  The Lifelong Learning Accounts  Pilot 
 Initiative  Program shall only be implemented if the
Director of Finance makes a written determination that there are
sufficient funds available from sources other than the General Fund
for that purpose.