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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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BILL NUMBER: AB 1320	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 1, 2009

INTRODUCED BY   Assembly Member Fong

                        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.
   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.
   This bill would, beginning January 1, 2012, create the Lifelong
Learning Accounts Pilot 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 to
establish a grant program and implement and administer the program,
as specified. The bill would require the board 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  state  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 PROGRAM


   14550.  The Lifelong Learning Accounts Pilot 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.
   (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  corporation  
company  that retains at least one eligible employee for six
months.
   (d) "Grant funds"  mean   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
training and education.
   (f) "Match" means moneys that will be supplied in an amount equal
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 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).
   (b) The board 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 under this program may designate the account established,
pursuant to the agreement, as a Lifelong Learning Account. The board
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 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 may use grant funds to offset the costs of support
services, technical assistance, and program administration.
   (e) There shall be established in the State Treasury, a Lifelong
Learning Program Fund to receive contributions  , in the form
of a match of grant funds  from individuals, foundations,
 nonprofits,   nonprofit organization 
businesses, and the federal government to be used for the program.
   (f) The board 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 shall, after consultation with the Treasurer and the
Scholarshare Investment Board, adopt  any  rules
and  administrative regulations that are necessary 
 regulations that are necessary or appropriate  to ensure
the proper implementation and administration of the program.
   14550.3.  This  section   chapter  shall
become operative on January 1, 2012.
   14550.4.  The Lifelong Learning Accounts Pilot Program shall only
be implemented if the Director of Finance makes a written
determination that there are sufficient  state funds
available   funds available from sources other than the
General Fund  for that purpose.