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| 1 | + | Amended IN Senate July 05, 2018 Amended IN Assembly May 02, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 916Introduced by Assembly Member Quirk-Silva Members Quirk-Silva and ArambulaFebruary 16, 2017An act to amend Sections 14000 and 14206 of the Unemployment Insurance Code, relating to workforce development. An act to add Sections 17053.72 and 23672 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 916, as amended, Quirk-Silva. Workforce development: career training and business needs. Income taxes: California work opportunity tax credit.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.This bill, for each taxable year beginning on or after January 1, 2019, would allow a credit against the taxes imposed under both laws to a qualified employer that qualifies for the federal Work Opportunity Tax Credit in an amount equal to 40% of the qualified first-year wages paid or incurred during the taxable year to a qualified employee who is a member of a targeted group, as defined in federal tax law. The bill would prohibit the credit from exceeding $2,400 per qualified employee per taxable year.This bill would take effect immediately as a tax levy. The federal Workforce Innovation and Opportunity Act of 2014 provides for workforce investment activities, including activities in which states may participate. Existing law contains various programs for job training and employment development, including work incentive programs, as specified, and establishes local workforce development boards to perform duties related to the implementation and coordination of local workforce development activities. This bill would add to those duties requirements to identify and promote sector strategies, career pathways, and earn-and-learn training models that support new ways of working, as specified. By increasing the duties of the local workforce development board in conformance with federal law, this bill would impose a state-mandated local program.Under existing law, the California Workforce Investment Board is responsible for assisting the Governor in the development of workforce investment programs and services. Existing law authorizes workforce investment programs and services to consider the needs of employers and businesses of all sizes, including large, medium, small, and microenterprises when setting priorities, investing resources, and adopting practices.This bill would include sole proprietorships within the types of businesses that may be considered.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 no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESNO Bill TextThe people of the State of California do enact as follows:SECTION 1. It is the intent of the Legislature in enacting this act to provide for tax credits that would serve as an alternative credit that results in at least an equal amount of credit for some of the same taxpayers as under the income tax credits allowed by Sections 17053.73 and 23626 of the Revenue and Taxation Code.SEC. 2. Section 17053.72 is added to the Revenue and Taxation Code, to read:17053.72. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the net tax, as defined in Section 17039, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee.(b) For purposes of this section:(1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department.(3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted.(e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce.SEC. 3. Section 23672 is added to the Revenue and Taxation Code, to read:23672. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the tax, as defined in Section 23036, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee.(b) For purposes of this section:(1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department.(3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted.(e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce.SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.SECTION 1.Section 14000 of the Unemployment Insurance Code is amended to read:14000.(a)The Legislature finds and declares that, in order for California to remain prosperous and globally competitive, it needs to have a well-educated and highly skilled workforce.(b)The Legislature finds and declares that the following principles shall guide the states workforce investment system:(1)Workforce investment programs and services shall be responsive to the needs of employers, workers, and students by accomplishing the following:(A)Preparing Californias students and workers with the skills necessary to successfully compete in the global economy.(B)Producing greater numbers of individuals who obtain industry-recognized certificates and career-oriented degrees in competitive and emerging industry sectors and filling critical labor market skills gaps.(C)Adapting to rapidly changing local and regional labor markets as specific workforce skill requirements change over time.(D)Preparing workers for good-paying jobs that foster economic security and upward mobility.(E)Aligning employment programs, resources, and planning efforts regionally around industry sectors that drive regional employment to connect services and training directly to jobs.(2)State and local workforce development boards are encouraged to collaborate with other public and private institutions, including businesses, unions, nonprofit organizations, kindergarten and grades 1 to 12, inclusive, career technical education programs, adult career technical education and basic skills programs, apprenticeships, community college career technical education and basic skills programs, entrepreneurship training programs, where appropriate, the California Community Colleges Economic and Workforce Development Program, the Employment Training Panel, and county-based social and employment services, to better align resources across workforce, training, education, and social service delivery systems and build a well-articulated workforce investment system by accomplishing the following:(A)Adopting local and regional training and education strategies which include workplace-based earn and learn programs that build on the strengths and fill the gaps in the education and workforce development pipeline in order to address the needs of job seekers, workers, and employers within regional labor markets by supporting sector strategies.(B)Leveraging resources across education and workforce training delivery systems to build career pathways and fill critical skills gaps.(3)Workforce investment programs and services shall be data driven and evidence based when setting priorities, investing resources, and adopting practices.(4)Workforce investment programs and services shall develop strong partnerships with the private sector, ensuring industry involvement in needs assessment, planning, and program evaluation.(A)Workforce investment programs and services shall encourage industry involvement by developing strong partnerships with an industrys employers and the unions that represent the industrys workers.(B)Workforce investment programs and services may consider the needs of employers and businesses of all sizes, including large, medium, small, and microenterprises, and sole proprietorships when setting priorities, investing resources, and adopting practices.(5)Workforce investment programs and services shall be outcome oriented and accountable, measuring results for program participants, including, but not limited to, outcomes related to program completion, employment, and earnings.(6)Programs and services shall be accessible to employers, the self-employed, workers, and students who may benefit from their operation, including individuals with employment barriers, such as persons with economic, physical, or other barriers to employment.SEC. 2.Section 14206 of the Unemployment Insurance Code is amended to read:14206.Consistent with the requirements of the Workforce Innovation and Opportunity Act, the local board shall do all of the following:(a)In partnership with the chief elected official for the local area involved, develop and submit a local plan to the Governor that meets the requirements of the Workforce Innovation and Opportunity Act. If the local area is part of a planning region that includes other local areas, the local board shall collaborate with the other local boards and chief elected officials from such other local areas in the preparation and submission of a regional plan as described in the Workforce Innovation and Opportunity Act.(b)In order to assist in the development and implementation of the local plan, the local board shall do all of the following:(1)Carry out analyses of the economic conditions in the region, the needed knowledge and skills for the region, the workforce in the region, and workforce development activities, including education and training, in the region described in Section 3123(b)(1)(D) of Title 29 of the United States Code, and regularly update that information.(2)Assist the Governor in developing the statewide workforce and labor market information system described in Section 15(e) of the Wagner-Peyser Act (29 U.S.C. Sec. 49l2(e)), specifically in the collection, analysis, and utilization of workforce and labor market information for the region.(3)Conduct such other research, data collection, and analysis related to the workforce needs of the regional economy as the board, after receiving input from a wide array of stakeholders, determines to be necessary to carry out its functions.(c)Convene local workforce development system stakeholders to assist in the development of the local plan under Section 3123 of Title 29 of the United States Code and in identifying nonfederal expertise and resources to leverage support for workforce development activities. The local board, including standing committees, may engage such stakeholders in carrying out the functions described in this subdivision.(d)Lead efforts to engage with a diverse range of employers and with entities in the region involved to do all of the following:(1)Promote business representation, particularly representatives with optimal policymaking or hiring authority from employers whose employment opportunities reflect existing and emerging employment opportunities in the region, on the local board.(2)Develop effective linkages, including the use of intermediaries, with employers in the region to support employer utilization of the local workforce development system and to support local workforce investment activities.(3)Ensure that workforce investment activities meet the needs of employers and support economic growth in the region, by enhancing communication, coordination, and collaboration among employers, economic development entities, and service providers.(4)Develop and implement proven or promising strategies for meeting the employment and skill needs of workers and employers, like the establishment of industry and sector partnerships, that provide the skilled workforce needed by employers in the region, and that expand employment and career advancement opportunities for workforce development system participants in in-demand industry sectors or occupations.(e)With representatives of secondary and postsecondary education programs, lead efforts in the local area to develop and implement career pathways within the local area by aligning the employment, training, education, and supportive services that are needed by adults and youth, particularly individuals with barriers to employment.(f)Lead efforts in the local area to accomplish all of the following:(1)Identify and promote proven and promising strategies and initiatives for meeting the needs of employers, and workers and jobseekers, including individuals with barriers to employment, in the local workforce development system, including providing physical and programmatic accessibility, in accordance with Section 3248 of Title 29 of the United States Code, if applicable, and applicable provisions of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), to the one-stop delivery system.(2)Identify and disseminate information on proven and promising practices carried out in other local areas for meeting these needs.(3)Identify and promote sector strategies, career pathways, and earn-and-learn training models that support new ways of working, including, but not limited to, programs and investments that meet the needs of social benefit corporations, worker cooperatives, and social enterprises.(g)Develop strategies for using technology to maximize the accessibility and effectiveness of the local workforce development system for employers, and workers and jobseekers, by doing all of the following:(1)Facilitating connections among the intake and case management information systems of the one-stop partner programs to support a comprehensive workforce development system in the local area.(2)Facilitating access to services provided through the one-stop delivery system involved, including facilitating the access in remote areas.(3)Identifying strategies for better meeting the needs of individuals with barriers to employment, including strategies that augment traditional service delivery, and increase access to services and programs of the one-stop delivery system, such as improving digital literacy skills.(4)Leveraging resources and capacity within the local workforce development system, including resources and capacity for services for individuals with barriers to employment.(h)In partnership with the chief elected official for the local area, shall conduct oversight for local youth workforce investment activities as required under the federal Workforce Innovation and Opportunity Act, ensure the appropriate use and management of the funds as required under the Workforce Innovation and Opportunity Act, and, for workforce development activities, ensure the appropriate use, management, and investment of funds to maximize performance outcomes as required under the federal Workforce Innovation and Opportunity Act.(i)Negotiate and reach agreement on local performance accountability measures, as described in Section 3141(c) of Title 29 of the United States Code, with the chief elected official and the Governor.(j)Select and provide access to system operators, service providers, trainers, and educators, in a manner consistent with the requirements of the Workforce Innovation and Opportunity Act and applicable state laws, including all of the following:(1)Consistent with Section 3151(d) of Title 29 of the United States Code, and with the agreement of the chief elected official for the local area, designate or certify one-stop operators as described in Section 3151(d)(2)(A) of Title 29 of the United States Code and terminate for cause the eligibility of these operators.(2)Consistent with Section 3153 of Title 29 of the United States Code, identify eligible providers of youth workforce investment activities in the local area by awarding grants or contracts on a competitive basis, except as provided in Section 3153(b) of Title 29 of the United States Code, based on the recommendations of the youth standing committee, if such a committee is established for the local area and terminate for cause the eligibility of these providers.(3)Consistent with Section 3152 of Title 29 of the United States Code and paragraph (4) of subdivision (d) of Section 14020, identify eligible providers of training services in the local area.(4)If the one-stop operator does not provide career services described in Section 3174(c)(2) of Title 29 of the United States Code in a local area, identify eligible providers of those career services in the local area by awarding contracts.(5)Consistent with Section 3152 of Title 29 of the United States Code and paragraphs (2) and (3) of Section 3174(c) of Title 29 of the United States Code, work with the state to ensure there are sufficient numbers and types of providers of career services and training services, including eligible providers with expertise in assisting individuals with disabilities and eligible providers with expertise in assisting adults in need of adult education and literacy activities, serving the local area and providing the services involved in a manner that maximizes consumer choice, as well as providing opportunities that lead to competitive integrated employment for individuals with disabilities.(k)Consistent with the requirements of the Workforce Innovation and Opportunity Act, coordinate activities with education and training providers in the local area, including providers of workforce development activities, providers of adult education and literacy activities under Title II of the Workforce Innovation and Opportunity Act, providers of career and technical education, as defined in Section 2302 of Title 20 of the United States Code, and local agencies administering plans under Title I of the Rehabilitation Act of 1973 (29 U.S.C. Sec. 720 et seq.), other than Section 112 or Part C of that Title (29 U.S.C. Sec. 732, 741).SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because this act implements a federal law or regulation and results only in costs mandated by the federal government, within the meaning of Section 17556 of the Government Code. | |
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| 3 | + | Amended IN Senate July 05, 2018 Amended IN Assembly May 02, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 916Introduced by Assembly Member Quirk-Silva Members Quirk-Silva and ArambulaFebruary 16, 2017An act to amend Sections 14000 and 14206 of the Unemployment Insurance Code, relating to workforce development. An act to add Sections 17053.72 and 23672 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 916, as amended, Quirk-Silva. Workforce development: career training and business needs. Income taxes: California work opportunity tax credit.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.This bill, for each taxable year beginning on or after January 1, 2019, would allow a credit against the taxes imposed under both laws to a qualified employer that qualifies for the federal Work Opportunity Tax Credit in an amount equal to 40% of the qualified first-year wages paid or incurred during the taxable year to a qualified employee who is a member of a targeted group, as defined in federal tax law. The bill would prohibit the credit from exceeding $2,400 per qualified employee per taxable year.This bill would take effect immediately as a tax levy. The federal Workforce Innovation and Opportunity Act of 2014 provides for workforce investment activities, including activities in which states may participate. Existing law contains various programs for job training and employment development, including work incentive programs, as specified, and establishes local workforce development boards to perform duties related to the implementation and coordination of local workforce development activities. This bill would add to those duties requirements to identify and promote sector strategies, career pathways, and earn-and-learn training models that support new ways of working, as specified. By increasing the duties of the local workforce development board in conformance with federal law, this bill would impose a state-mandated local program.Under existing law, the California Workforce Investment Board is responsible for assisting the Governor in the development of workforce investment programs and services. Existing law authorizes workforce investment programs and services to consider the needs of employers and businesses of all sizes, including large, medium, small, and microenterprises when setting priorities, investing resources, and adopting practices.This bill would include sole proprietorships within the types of businesses that may be considered.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 no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESNO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Senate July 05, 2018 Amended IN Assembly May 02, 2017 | |
| 6 | 6 | ||
| 7 | - | Amended IN Senate August 06, 2018 | |
| 8 | 7 | Amended IN Senate July 05, 2018 | |
| 9 | 8 | Amended IN Assembly May 02, 2017 | |
| 10 | 9 | ||
| 11 | 10 | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION | |
| 12 | 11 | ||
| 13 | 12 | Assembly Bill No. 916 | |
| 14 | 13 | ||
| 15 | - | Introduced by Assembly Members Quirk-Silva and ArambulaFebruary 16, 2017 | |
| 14 | + | Introduced by Assembly Member Quirk-Silva Members Quirk-Silva and ArambulaFebruary 16, 2017 | |
| 16 | 15 | ||
| 17 | - | Introduced by Assembly Members Quirk-Silva and Arambula | |
| 16 | + | Introduced by Assembly Member Quirk-Silva Members Quirk-Silva and Arambula | |
| 18 | 17 | February 16, 2017 | |
| 19 | 18 | ||
| 20 | - | An act to add | |
| 19 | + | An act to amend Sections 14000 and 14206 of the Unemployment Insurance Code, relating to workforce development. An act to add Sections 17053.72 and 23672 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 21 | 20 | ||
| 22 | 21 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 22 | ||
| 24 | 23 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 24 | ||
| 26 | - | AB 916, as amended, Quirk-Silva. Income taxes: California work opportunity tax credit. | |
| 25 | + | AB 916, as amended, Quirk-Silva. Workforce development: career training and business needs. Income taxes: California work opportunity tax credit. | |
| 27 | 26 | ||
| 28 | - | The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.This bill, for each taxable year beginning on or after January 1, 2019 | |
| 27 | + | The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.This bill, for each taxable year beginning on or after January 1, 2019, would allow a credit against the taxes imposed under both laws to a qualified employer that qualifies for the federal Work Opportunity Tax Credit in an amount equal to 40% of the qualified first-year wages paid or incurred during the taxable year to a qualified employee who is a member of a targeted group, as defined in federal tax law. The bill would prohibit the credit from exceeding $2,400 per qualified employee per taxable year.This bill would take effect immediately as a tax levy. The federal Workforce Innovation and Opportunity Act of 2014 provides for workforce investment activities, including activities in which states may participate. Existing law contains various programs for job training and employment development, including work incentive programs, as specified, and establishes local workforce development boards to perform duties related to the implementation and coordination of local workforce development activities. This bill would add to those duties requirements to identify and promote sector strategies, career pathways, and earn-and-learn training models that support new ways of working, as specified. By increasing the duties of the local workforce development board in conformance with federal law, this bill would impose a state-mandated local program.Under existing law, the California Workforce Investment Board is responsible for assisting the Governor in the development of workforce investment programs and services. Existing law authorizes workforce investment programs and services to consider the needs of employers and businesses of all sizes, including large, medium, small, and microenterprises when setting priorities, investing resources, and adopting practices.This bill would include sole proprietorships within the types of businesses that may be considered.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 no reimbursement is required by this act for a specified reason. | |
| 29 | 28 | ||
| 30 | 29 | The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. | |
| 31 | 30 | ||
| 32 | - | This bill, for each taxable year beginning on or after January 1, 2019 | |
| 31 | + | This bill, for each taxable year beginning on or after January 1, 2019, would allow a credit against the taxes imposed under both laws to a qualified employer that qualifies for the federal Work Opportunity Tax Credit in an amount equal to 40% of the qualified first-year wages paid or incurred during the taxable year to a qualified employee who is a member of a targeted group, as defined in federal tax law. The bill would prohibit the credit from exceeding $2,400 per qualified employee per taxable year. | |
| 33 | 32 | ||
| 34 | 33 | This bill would take effect immediately as a tax levy. | |
| 34 | + | ||
| 35 | + | The federal Workforce Innovation and Opportunity Act of 2014 provides for workforce investment activities, including activities in which states may participate. Existing law contains various programs for job training and employment development, including work incentive programs, as specified, and establishes local workforce development boards to perform duties related to the implementation and coordination of local workforce development activities. | |
| 36 | + | ||
| 37 | + | ||
| 38 | + | ||
| 39 | + | This bill would add to those duties requirements to identify and promote sector strategies, career pathways, and earn-and-learn training models that support new ways of working, as specified. By increasing the duties of the local workforce development board in conformance with federal law, this bill would impose a state-mandated local program. | |
| 40 | + | ||
| 41 | + | ||
| 42 | + | ||
| 43 | + | Under existing law, the California Workforce Investment Board is responsible for assisting the Governor in the development of workforce investment programs and services. Existing law authorizes workforce investment programs and services to consider the needs of employers and businesses of all sizes, including large, medium, small, and microenterprises when setting priorities, investing resources, and adopting practices. | |
| 44 | + | ||
| 45 | + | ||
| 46 | + | ||
| 47 | + | This bill would include sole proprietorships within the types of businesses that may be considered. | |
| 48 | + | ||
| 49 | + | ||
| 50 | + | ||
| 51 | + | 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. | |
| 52 | + | ||
| 53 | + | ||
| 54 | + | ||
| 55 | + | This bill would provide that no reimbursement is required by this act for a specified reason. | |
| 56 | + | ||
| 57 | + | ||
| 35 | 58 | ||
| 36 | 59 | ## Digest Key | |
| 37 | 60 | ||
| 38 | 61 | ## Bill Text | |
| 39 | 62 | ||
| 40 | - | The people of the State of California do enact as follows:SECTION 1. | |
| 63 | + | The people of the State of California do enact as follows:SECTION 1. It is the intent of the Legislature in enacting this act to provide for tax credits that would serve as an alternative credit that results in at least an equal amount of credit for some of the same taxpayers as under the income tax credits allowed by Sections 17053.73 and 23626 of the Revenue and Taxation Code.SEC. 2. Section 17053.72 is added to the Revenue and Taxation Code, to read:17053.72. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the net tax, as defined in Section 17039, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee.(b) For purposes of this section:(1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department.(3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted.(e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce.SEC. 3. Section 23672 is added to the Revenue and Taxation Code, to read:23672. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the tax, as defined in Section 23036, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee.(b) For purposes of this section:(1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department.(3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted.(e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce.SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.SECTION 1.Section 14000 of the Unemployment Insurance Code is amended to read:14000.(a)The Legislature finds and declares that, in order for California to remain prosperous and globally competitive, it needs to have a well-educated and highly skilled workforce.(b)The Legislature finds and declares that the following principles shall guide the states workforce investment system:(1)Workforce investment programs and services shall be responsive to the needs of employers, workers, and students by accomplishing the following:(A)Preparing Californias students and workers with the skills necessary to successfully compete in the global economy.(B)Producing greater numbers of individuals who obtain industry-recognized certificates and career-oriented degrees in competitive and emerging industry sectors and filling critical labor market skills gaps.(C)Adapting to rapidly changing local and regional labor markets as specific workforce skill requirements change over time.(D)Preparing workers for good-paying jobs that foster economic security and upward mobility.(E)Aligning employment programs, resources, and planning efforts regionally around industry sectors that drive regional employment to connect services and training directly to jobs.(2)State and local workforce development boards are encouraged to collaborate with other public and private institutions, including businesses, unions, nonprofit organizations, kindergarten and grades 1 to 12, inclusive, career technical education programs, adult career technical education and basic skills programs, apprenticeships, community college career technical education and basic skills programs, entrepreneurship training programs, where appropriate, the California Community Colleges Economic and Workforce Development Program, the Employment Training Panel, and county-based social and employment services, to better align resources across workforce, training, education, and social service delivery systems and build a well-articulated workforce investment system by accomplishing the following:(A)Adopting local and regional training and education strategies which include workplace-based earn and learn programs that build on the strengths and fill the gaps in the education and workforce development pipeline in order to address the needs of job seekers, workers, and employers within regional labor markets by supporting sector strategies.(B)Leveraging resources across education and workforce training delivery systems to build career pathways and fill critical skills gaps.(3)Workforce investment programs and services shall be data driven and evidence based when setting priorities, investing resources, and adopting practices.(4)Workforce investment programs and services shall develop strong partnerships with the private sector, ensuring industry involvement in needs assessment, planning, and program evaluation.(A)Workforce investment programs and services shall encourage industry involvement by developing strong partnerships with an industrys employers and the unions that represent the industrys workers.(B)Workforce investment programs and services may consider the needs of employers and businesses of all sizes, including large, medium, small, and microenterprises, and sole proprietorships when setting priorities, investing resources, and adopting practices.(5)Workforce investment programs and services shall be outcome oriented and accountable, measuring results for program participants, including, but not limited to, outcomes related to program completion, employment, and earnings.(6)Programs and services shall be accessible to employers, the self-employed, workers, and students who may benefit from their operation, including individuals with employment barriers, such as persons with economic, physical, or other barriers to employment.SEC. 2.Section 14206 of the Unemployment Insurance Code is amended to read:14206.Consistent with the requirements of the Workforce Innovation and Opportunity Act, the local board shall do all of the following:(a)In partnership with the chief elected official for the local area involved, develop and submit a local plan to the Governor that meets the requirements of the Workforce Innovation and Opportunity Act. If the local area is part of a planning region that includes other local areas, the local board shall collaborate with the other local boards and chief elected officials from such other local areas in the preparation and submission of a regional plan as described in the Workforce Innovation and Opportunity Act.(b)In order to assist in the development and implementation of the local plan, the local board shall do all of the following:(1)Carry out analyses of the economic conditions in the region, the needed knowledge and skills for the region, the workforce in the region, and workforce development activities, including education and training, in the region described in Section 3123(b)(1)(D) of Title 29 of the United States Code, and regularly update that information.(2)Assist the Governor in developing the statewide workforce and labor market information system described in Section 15(e) of the Wagner-Peyser Act (29 U.S.C. Sec. 49l2(e)), specifically in the collection, analysis, and utilization of workforce and labor market information for the region.(3)Conduct such other research, data collection, and analysis related to the workforce needs of the regional economy as the board, after receiving input from a wide array of stakeholders, determines to be necessary to carry out its functions.(c)Convene local workforce development system stakeholders to assist in the development of the local plan under Section 3123 of Title 29 of the United States Code and in identifying nonfederal expertise and resources to leverage support for workforce development activities. The local board, including standing committees, may engage such stakeholders in carrying out the functions described in this subdivision.(d)Lead efforts to engage with a diverse range of employers and with entities in the region involved to do all of the following:(1)Promote business representation, particularly representatives with optimal policymaking or hiring authority from employers whose employment opportunities reflect existing and emerging employment opportunities in the region, on the local board.(2)Develop effective linkages, including the use of intermediaries, with employers in the region to support employer utilization of the local workforce development system and to support local workforce investment activities.(3)Ensure that workforce investment activities meet the needs of employers and support economic growth in the region, by enhancing communication, coordination, and collaboration among employers, economic development entities, and service providers.(4)Develop and implement proven or promising strategies for meeting the employment and skill needs of workers and employers, like the establishment of industry and sector partnerships, that provide the skilled workforce needed by employers in the region, and that expand employment and career advancement opportunities for workforce development system participants in in-demand industry sectors or occupations.(e)With representatives of secondary and postsecondary education programs, lead efforts in the local area to develop and implement career pathways within the local area by aligning the employment, training, education, and supportive services that are needed by adults and youth, particularly individuals with barriers to employment.(f)Lead efforts in the local area to accomplish all of the following:(1)Identify and promote proven and promising strategies and initiatives for meeting the needs of employers, and workers and jobseekers, including individuals with barriers to employment, in the local workforce development system, including providing physical and programmatic accessibility, in accordance with Section 3248 of Title 29 of the United States Code, if applicable, and applicable provisions of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), to the one-stop delivery system.(2)Identify and disseminate information on proven and promising practices carried out in other local areas for meeting these needs.(3)Identify and promote sector strategies, career pathways, and earn-and-learn training models that support new ways of working, including, but not limited to, programs and investments that meet the needs of social benefit corporations, worker cooperatives, and social enterprises.(g)Develop strategies for using technology to maximize the accessibility and effectiveness of the local workforce development system for employers, and workers and jobseekers, by doing all of the following:(1)Facilitating connections among the intake and case management information systems of the one-stop partner programs to support a comprehensive workforce development system in the local area.(2)Facilitating access to services provided through the one-stop delivery system involved, including facilitating the access in remote areas.(3)Identifying strategies for better meeting the needs of individuals with barriers to employment, including strategies that augment traditional service delivery, and increase access to services and programs of the one-stop delivery system, such as improving digital literacy skills.(4)Leveraging resources and capacity within the local workforce development system, including resources and capacity for services for individuals with barriers to employment.(h)In partnership with the chief elected official for the local area, shall conduct oversight for local youth workforce investment activities as required under the federal Workforce Innovation and Opportunity Act, ensure the appropriate use and management of the funds as required under the Workforce Innovation and Opportunity Act, and, for workforce development activities, ensure the appropriate use, management, and investment of funds to maximize performance outcomes as required under the federal Workforce Innovation and Opportunity Act.(i)Negotiate and reach agreement on local performance accountability measures, as described in Section 3141(c) of Title 29 of the United States Code, with the chief elected official and the Governor.(j)Select and provide access to system operators, service providers, trainers, and educators, in a manner consistent with the requirements of the Workforce Innovation and Opportunity Act and applicable state laws, including all of the following:(1)Consistent with Section 3151(d) of Title 29 of the United States Code, and with the agreement of the chief elected official for the local area, designate or certify one-stop operators as described in Section 3151(d)(2)(A) of Title 29 of the United States Code and terminate for cause the eligibility of these operators.(2)Consistent with Section 3153 of Title 29 of the United States Code, identify eligible providers of youth workforce investment activities in the local area by awarding grants or contracts on a competitive basis, except as provided in Section 3153(b) of Title 29 of the United States Code, based on the recommendations of the youth standing committee, if such a committee is established for the local area and terminate for cause the eligibility of these providers.(3)Consistent with Section 3152 of Title 29 of the United States Code and paragraph (4) of subdivision (d) of Section 14020, identify eligible providers of training services in the local area.(4)If the one-stop operator does not provide career services described in Section 3174(c)(2) of Title 29 of the United States Code in a local area, identify eligible providers of those career services in the local area by awarding contracts.(5)Consistent with Section 3152 of Title 29 of the United States Code and paragraphs (2) and (3) of Section 3174(c) of Title 29 of the United States Code, work with the state to ensure there are sufficient numbers and types of providers of career services and training services, including eligible providers with expertise in assisting individuals with disabilities and eligible providers with expertise in assisting adults in need of adult education and literacy activities, serving the local area and providing the services involved in a manner that maximizes consumer choice, as well as providing opportunities that lead to competitive integrated employment for individuals with disabilities.(k)Consistent with the requirements of the Workforce Innovation and Opportunity Act, coordinate activities with education and training providers in the local area, including providers of workforce development activities, providers of adult education and literacy activities under Title II of the Workforce Innovation and Opportunity Act, providers of career and technical education, as defined in Section 2302 of Title 20 of the United States Code, and local agencies administering plans under Title I of the Rehabilitation Act of 1973 (29 U.S.C. Sec. 720 et seq.), other than Section 112 or Part C of that Title (29 U.S.C. Sec. 732, 741).SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because this act implements a federal law or regulation and results only in costs mandated by the federal government, within the meaning of Section 17556 of the Government Code. | |
| 41 | 64 | ||
| 42 | 65 | The people of the State of California do enact as follows: | |
| 43 | 66 | ||
| 44 | 67 | ## The people of the State of California do enact as follows: | |
| 45 | 68 | ||
| 46 | - | SECTION 1. | |
| 69 | + | SECTION 1. It is the intent of the Legislature in enacting this act to provide for tax credits that would serve as an alternative credit that results in at least an equal amount of credit for some of the same taxpayers as under the income tax credits allowed by Sections 17053.73 and 23626 of the Revenue and Taxation Code. | |
| 47 | 70 | ||
| 48 | - | SECTION 1. | |
| 71 | + | SECTION 1. It is the intent of the Legislature in enacting this act to provide for tax credits that would serve as an alternative credit that results in at least an equal amount of credit for some of the same taxpayers as under the income tax credits allowed by Sections 17053.73 and 23626 of the Revenue and Taxation Code. | |
| 49 | 72 | ||
| 50 | - | SECTION 1. | |
| 73 | + | SECTION 1. It is the intent of the Legislature in enacting this act to provide for tax credits that would serve as an alternative credit that results in at least an equal amount of credit for some of the same taxpayers as under the income tax credits allowed by Sections 17053.73 and 23626 of the Revenue and Taxation Code. | |
| 51 | 74 | ||
| 52 | 75 | ### SECTION 1. | |
| 53 | 76 | ||
| 54 | - | (b) The purpose of the California Work Opportunity Tax Credit is to encourage qualified employers to hire employees from targeted groups of individuals who have systematically faced barriers to employment. | |
| 55 | - | ||
| 56 | - | (c) The Legislature finds and declares that the federal Equal Employment Opportunity Commission (EEOC) has considered the questions and forms required for the federal Work Opportunity Tax Credit (WOTC) and found that the proper use of these questions and forms, which is using them solely for purposes of applying for the WOTC, does not violate federal equal employment opportunity laws. Moreover, the proper use of the WOTC benefits those that equal employment opportunity laws seek to protect. However, despite the EEOC approving the WOTC application forms, if an employer were to use the information for purposes other than to apply for the WOTC, for example, to discriminate in a hiring decision, the EEOC declared that the employer would not be protected from liability under equal employment opportunity laws. The Legislature further finds and declares that compliance with the WOTC questions and forms is necessary to ensure proper documentation and certification for employees eligible for the credit allowed by this section. | |
| 57 | - | ||
| 58 | - | SEC. 2. Section 17053.72 is added to the Revenue and Taxation Code, to read:17053.72. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2026, there shall be allowed to a qualified employer as a credit against the net tax, as defined in Section 17039, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee. a California WOTC in an amount equal to an amount determined in accordance with the requirements of the federal WOTC, as applicable for federal tax purposes for the taxable year, except as otherwise provided by this section.(b) For purposes of this section: section, the following terms have the following meanings:(1)Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(1) California WOTC means the California Work Opportunity Tax Credit allowed by this section.(2) Federal WOTC means the federal Work Opportunity Tax Credit allowed by Section 51 of the Internal Revenue Code, relating to amount of credit, as in effect on January 1, 2018. (2)(3) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department. that is subject to, and is required to provide, unemployment insurance to the taxpayers employees pursuant to the Unemployment Insurance Code.(3)Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4)Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c)The(4) Qualified individual means any person who is covered by unemployment insurance by his or her employer pursuant to the Unemployment Insurance Code.(c) The federal WOTC is modified as follows:(1) Section 51(a) of the Internal Revenue Code, relating to determination of amount, is modified to limit the amount of tax credit allowed so as not to exceed two thousand four hundred dollars ($2,400) per qualified individual.(2) Section 51(b) of the Internal Revenue Code, relating to qualified wages defined, is modified as follows:(A) The wages are required to be attributable to an employee from a targeted group, as defined by Section 51(d) of the Internal Revenue Code, relating to members of targeted groups, and as modified by this section, who has worked not less than 500 hours for the qualified employer.(B) The first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period are excluded from the calculation of qualified wages.(3) Section 51(c) of the Internal Revenue Code, relating to wages defined, is modified to exclusively apply to wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(4) Sections 51(d)(1)(D), 51(d)(1)(F), 51(d)(3)(A)(iii), 51(d)(13)(D)(i)(II), and 51(d)(14) of the Internal Revenue Code shall not apply.(5) Section 51(e) of the Internal Revenue Code, relating to qualified second-year wages, shall not apply.(6) Section 51(g) of the Internal Revenue Code, relating to United States employment service to notify employers of availability of credit, is modified to substitute Employment Development Department, in consultation with the Franchise Tax Board in lieu of United States Employment Service, in consultation with the Internal Revenue Service.(7) Section 51(h) of the Internal Revenue Code, relating to special rules for agricultural labor and railway labor, shall not apply.(8) Section 51(i)(3) of the Internal Revenue Code, relating to individuals not meeting minimum employment periods, shall not apply.(9) Section 51(j) of the Internal Revenue Code, relating to election to have work opportunity not apply, is modified to substitute last date prescribed by state law in lieu of last date prescribed by law.(d) (1) Notwithstanding the federal WOTC, the qualified employer shall be allowed the credit California WOTC in the taxable year in which the employer receives the a certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d)In(2) Consistent with the requirements of the federal WOTC, the Employment Development Department shall issue certification of qualified individuals, subject to the modifications provided by this section.(e) Notwithstanding the federal WOTC, in the case where the credit allowed by this section California WOTC exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding nine years if necessary, until the credit California WOTC is exhausted.(e)If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f)For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce.(f) Any deduction otherwise allowed under this part for the qualified wages paid or incurred by the taxpayer upon which the California WOTC is based shall be reduced by the amount of the California WOTC allowed by this section.(g) (1) Upon the effective date of this section, the Department of Finance shall estimate the total dollar amount of credits that will be claimed under this section with respect to each tax year from 201819 fiscal year to the 202425 fiscal year, inclusive.(2) The Franchise Tax Board shall annually provide to the Joint Legislative Budget Committee, by no later than March 1, a report, in accordance with Section 9795 of the Government Code, that includes all of the following:(A) The total dollar amount of the credits claimed under this section with respect to the relevant fiscal year. The report shall compare the total dollar amount of credits claimed under this section with respect to that fiscal year with the departments estimate with respect to that same fiscal year.(B) The number of tax returns claiming the credit.(C) The number of qualified individuals represented on tax returns claiming the credit.(h) (1) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.(2) Notwithstanding paragraph (1), this section shall continue to be operative for taxable years beginning on or after January 1, 2018, but only with respect to qualified individuals who commenced employment with a qualified taxpayer in a taxable year beginning before January 1, 2026. | |
| 77 | + | SEC. 2. Section 17053.72 is added to the Revenue and Taxation Code, to read:17053.72. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the net tax, as defined in Section 17039, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee.(b) For purposes of this section:(1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department.(3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted.(e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce. | |
| 59 | 78 | ||
| 60 | 79 | SEC. 2. Section 17053.72 is added to the Revenue and Taxation Code, to read: | |
| 61 | 80 | ||
| 62 | 81 | ### SEC. 2. | |
| 63 | 82 | ||
| 64 | - | 17053.72. (a) For each taxable year beginning on or after January 1, 2019 | |
| 83 | + | 17053.72. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the net tax, as defined in Section 17039, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee.(b) For purposes of this section:(1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department.(3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted.(e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce. | |
| 65 | 84 | ||
| 66 | - | 17053.72. (a) For each taxable year beginning on or after January 1, 2019 | |
| 85 | + | 17053.72. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the net tax, as defined in Section 17039, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee.(b) For purposes of this section:(1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department.(3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted.(e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce. | |
| 67 | 86 | ||
| 68 | - | 17053.72. (a) For each taxable year beginning on or after January 1, 2019 | |
| 87 | + | 17053.72. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the net tax, as defined in Section 17039, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee.(b) For purposes of this section:(1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department.(3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted.(e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce. | |
| 69 | 88 | ||
| 70 | 89 | ||
| 71 | 90 | ||
| 72 | - | 17053.72. (a) For each taxable year beginning on or after January 1, 2019 | |
| 91 | + | 17053.72. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the net tax, as defined in Section 17039, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee. | |
| 73 | 92 | ||
| 74 | - | (b) For purposes of this section: | |
| 93 | + | (b) For purposes of this section: | |
| 75 | 94 | ||
| 76 | 95 | (1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer. | |
| 77 | 96 | ||
| 78 | - | ||
| 79 | - | ||
| 80 | - | (1) California WOTC means the California Work Opportunity Tax Credit allowed by this section. | |
| 81 | - | ||
| 82 | - | (2) Federal WOTC means the federal Work Opportunity Tax Credit allowed by Section 51 of the Internal Revenue Code, relating to amount of credit, as in effect on January 1, 2018. | |
| 83 | - | ||
| 84 | - | (2) | |
| 85 | - | ||
| 86 | - | ||
| 87 | - | ||
| 88 | - | (3) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department. that is subject to, and is required to provide, unemployment insurance to the taxpayers employees pursuant to the Unemployment Insurance Code. | |
| 97 | + | (2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department. | |
| 89 | 98 | ||
| 90 | 99 | (3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period. | |
| 91 | 100 | ||
| 92 | - | ||
| 93 | - | ||
| 94 | 101 | (4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code. | |
| 95 | 102 | ||
| 103 | + | (c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages. | |
| 96 | 104 | ||
| 97 | - | ||
| 98 | - | (c)The | |
| 99 | - | ||
| 100 | - | ||
| 101 | - | ||
| 102 | - | (4) Qualified individual means any person who is covered by unemployment insurance by his or her employer pursuant to the Unemployment Insurance Code. | |
| 103 | - | ||
| 104 | - | (c) The federal WOTC is modified as follows: | |
| 105 | - | ||
| 106 | - | (1) Section 51(a) of the Internal Revenue Code, relating to determination of amount, is modified to limit the amount of tax credit allowed so as not to exceed two thousand four hundred dollars ($2,400) per qualified individual. | |
| 107 | - | ||
| 108 | - | (2) Section 51(b) of the Internal Revenue Code, relating to qualified wages defined, is modified as follows: | |
| 109 | - | ||
| 110 | - | (A) The wages are required to be attributable to an employee from a targeted group, as defined by Section 51(d) of the Internal Revenue Code, relating to members of targeted groups, and as modified by this section, who has worked not less than 500 hours for the qualified employer. | |
| 111 | - | ||
| 112 | - | (B) The first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period are excluded from the calculation of qualified wages. | |
| 113 | - | ||
| 114 | - | (3) Section 51(c) of the Internal Revenue Code, relating to wages defined, is modified to exclusively apply to wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code. | |
| 115 | - | ||
| 116 | - | (4) Sections 51(d)(1)(D), 51(d)(1)(F), 51(d)(3)(A)(iii), 51(d)(13)(D)(i)(II), and 51(d)(14) of the Internal Revenue Code shall not apply. | |
| 117 | - | ||
| 118 | - | (5) Section 51(e) of the Internal Revenue Code, relating to qualified second-year wages, shall not apply. | |
| 119 | - | ||
| 120 | - | (6) Section 51(g) of the Internal Revenue Code, relating to United States employment service to notify employers of availability of credit, is modified to substitute Employment Development Department, in consultation with the Franchise Tax Board in lieu of United States Employment Service, in consultation with the Internal Revenue Service. | |
| 121 | - | ||
| 122 | - | (7) Section 51(h) of the Internal Revenue Code, relating to special rules for agricultural labor and railway labor, shall not apply. | |
| 123 | - | ||
| 124 | - | (8) Section 51(i)(3) of the Internal Revenue Code, relating to individuals not meeting minimum employment periods, shall not apply. | |
| 125 | - | ||
| 126 | - | (9) Section 51(j) of the Internal Revenue Code, relating to election to have work opportunity not apply, is modified to substitute last date prescribed by state law in lieu of last date prescribed by law. | |
| 127 | - | ||
| 128 | - | (d) (1) Notwithstanding the federal WOTC, the qualified employer shall be allowed the credit California WOTC in the taxable year in which the employer receives the a certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages. | |
| 129 | - | ||
| 130 | - | (d)In | |
| 131 | - | ||
| 132 | - | ||
| 133 | - | ||
| 134 | - | (2) Consistent with the requirements of the federal WOTC, the Employment Development Department shall issue certification of qualified individuals, subject to the modifications provided by this section. | |
| 135 | - | ||
| 136 | - | (e) Notwithstanding the federal WOTC, in the case where the credit allowed by this section California WOTC exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding nine years if necessary, until the credit California WOTC is exhausted. | |
| 105 | + | (d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted. | |
| 137 | 106 | ||
| 138 | 107 | (e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section. | |
| 139 | 108 | ||
| 140 | - | ||
| 141 | - | ||
| 142 | 109 | (f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce. | |
| 143 | 110 | ||
| 144 | - | ||
| 145 | - | ||
| 146 | - | (f) Any deduction otherwise allowed under this part for the qualified wages paid or incurred by the taxpayer upon which the California WOTC is based shall be reduced by the amount of the California WOTC allowed by this section. | |
| 147 | - | ||
| 148 | - | (g) (1) Upon the effective date of this section, the Department of Finance shall estimate the total dollar amount of credits that will be claimed under this section with respect to each tax year from 201819 fiscal year to the 202425 fiscal year, inclusive. | |
| 149 | - | ||
| 150 | - | (2) The Franchise Tax Board shall annually provide to the Joint Legislative Budget Committee, by no later than March 1, a report, in accordance with Section 9795 of the Government Code, that includes all of the following: | |
| 151 | - | ||
| 152 | - | (A) The total dollar amount of the credits claimed under this section with respect to the relevant fiscal year. The report shall compare the total dollar amount of credits claimed under this section with respect to that fiscal year with the departments estimate with respect to that same fiscal year. | |
| 153 | - | ||
| 154 | - | (B) The number of tax returns claiming the credit. | |
| 155 | - | ||
| 156 | - | (C) The number of qualified individuals represented on tax returns claiming the credit. | |
| 157 | - | ||
| 158 | - | (h) (1) This section shall remain in effect only until December 1, 2026, and as of that date is repealed. | |
| 159 | - | ||
| 160 | - | (2) Notwithstanding paragraph (1), this section shall continue to be operative for taxable years beginning on or after January 1, 2018, but only with respect to qualified individuals who commenced employment with a qualified taxpayer in a taxable year beginning before January 1, 2026. | |
| 161 | - | ||
| 162 | - | SEC. 3. Section 23672 is added to the Revenue and Taxation Code, to read:23672. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2026, there shall be allowed to a qualified employer as a credit against the tax, as defined in Section 23036, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee. a California WOTC in an amount equal to an amount determined in accordance with the requirements of the federal WOTC, as applicable for federal tax purposes for the taxable year, except as otherwise provided by this section.(b) For purposes of this section: section, the following terms have the following meanings:(1)Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(1) California WOTC means the California Work Opportunity Tax Credit allowed by this section.(2) Federal WOTC means the federal Work Opportunity Tax Credit allowed by Section 51 of the Internal Revenue Code, relating to amount of credit, as in effect on January 1, 2018. (2)(3) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department. is subject to, and is required to provide, unemployment insurance to the taxpayers employees pursuant to the Unemployment Insurance Code.(3)Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4)Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c)The(4) Qualified individual means any person who is covered by unemployment insurance by his or her employer pursuant to the Unemployment Insurance Code.(c) The federal WOTC is modified as follows:(1) Section 51(a) of the Internal Revenue Code, relating to determination of amount, is modified to limit the amount of tax credit allowed so as not to exceed two thousand four hundred dollars ($2,400) per qualified individual.(2) Section 51(b) of the Internal Revenue Code, relating to qualified wages defined, is modified as follows:(A) The wages are required to be attributable to an employee from a targeted group, as defined by Section 51(d) of the Internal Revenue Code, relating to members of targeted groups, and as modified by this section, who has worked not less than 500 hours for the qualified employer.(B) The first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period are excluded from the calculation of qualified wages.(3) Section 51(c) of the Internal Revenue Code, relating to wages defined, is modified to exclusively apply to wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(4) Sections 51(d)(1)(D), 51(d)(1)(F), 51(d)(3)(A)(iii), 51(d)(13)(D)(i)(II), and 51(d)(14) of the Internal Revenue Code shall not apply.(5) Section 51(e) of the Internal Revenue Code, relating to qualified second-year wages, shall not apply.(6) Section 51(g) of the Internal Revenue Code, relating to United States employment service to notify employers of availability of credit, is modified to substitute Employment Development Department, in consultation with the Franchise Tax Board in lieu of United States Employment Service, in consultation with the Internal Revenue Service.(7) Section 51(h) of the Internal Revenue Code, relating to special rules for agricultural labor and railway labor, shall not apply.(8) Section 51(i)(3) of the Internal Revenue Code, relating to individuals not meeting minimum employment periods, shall not apply.(9) Section 51(j) of the Internal Revenue Code, relating to election to have work opportunity not apply, is modified to substitute last date prescribed by state law in lieu of last date prescribed by law.(d) (1) Notwithstanding the federal WOTC, the qualified employer shall be allowed the credit California WOTC in the taxable year in which the employer receives the a certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(2) Consistent with the requirements of the federal WOTC, the Employment Development Department shall issue certification of qualified individuals, subject to the modifications provided by this section. (d)In(e) Notwithstanding the federal WOTC, in the case where the credit allowed by this section California WOTC exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding nine years if necessary, until the credit California WOTC is exhausted.(e)If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f)For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce.(f) Any deduction otherwise allowed under this part for the qualified wages paid or incurred by the taxpayer upon which the California WOTC is based shall be reduced by the amount of the California WOTC allowed by this section.(g) (1) Upon the effective date of this section, the Department of Finance shall estimate the total dollar amount of credits that will be claimed under this section with respect to each tax year from 201819 fiscal year to the 202425 fiscal year, inclusive.(2) The Franchise Tax Board shall annually provide to the Joint Legislative Budget Committee, by no later than March 1, a report, in accordance with Section 9795 of the Government Code, that includes all of the following:(A) The total dollar amount of the credits claimed under this section with respect to the relevant fiscal year. The report shall compare the total dollar amount of credits claimed under this section with respect to that fiscal year with the departments estimate with respect to that same fiscal year.(B) The number of tax returns claiming the credit.(C) The number of qualified individuals represented on tax returns claiming the credit.(h) (1) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.(2) Notwithstanding paragraph (1), this section shall continue to be operative for taxable years beginning on or after January 1, 2018, but only with respect to qualified individuals who commenced employment with a qualified taxpayer in a taxable year beginning before January 1, 2026. | |
| 111 | + | SEC. 3. Section 23672 is added to the Revenue and Taxation Code, to read:23672. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the tax, as defined in Section 23036, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee.(b) For purposes of this section:(1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department.(3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted.(e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce. | |
| 163 | 112 | ||
| 164 | 113 | SEC. 3. Section 23672 is added to the Revenue and Taxation Code, to read: | |
| 165 | 114 | ||
| 166 | 115 | ### SEC. 3. | |
| 167 | 116 | ||
| 168 | - | 23672. (a) For each taxable year beginning on or after January 1, 2019 | |
| 117 | + | 23672. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the tax, as defined in Section 23036, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee.(b) For purposes of this section:(1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department.(3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted.(e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce. | |
| 169 | 118 | ||
| 170 | - | 23672. (a) For each taxable year beginning on or after January 1, 2019 | |
| 119 | + | 23672. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the tax, as defined in Section 23036, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee.(b) For purposes of this section:(1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department.(3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted.(e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce. | |
| 171 | 120 | ||
| 172 | - | 23672. (a) For each taxable year beginning on or after January 1, 2019 | |
| 121 | + | 23672. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the tax, as defined in Section 23036, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee.(b) For purposes of this section:(1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer.(2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department.(3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period.(4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages.(d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted.(e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section.(f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce. | |
| 173 | 122 | ||
| 174 | 123 | ||
| 175 | 124 | ||
| 176 | - | 23672. (a) For each taxable year beginning on or after January 1, 2019 | |
| 125 | + | 23672. (a) For each taxable year beginning on or after January 1, 2019, there shall be allowed to a qualified employer as a credit against the tax, as defined in Section 23036, an amount equal to 40 percent of the qualified first-year wages paid or incurred by a qualified employer to a qualified employee during the taxable year, not to exceed two thousand four hundred dollars ($2,400) per qualified employee. | |
| 177 | 126 | ||
| 178 | - | (b) For purposes of this section: | |
| 127 | + | (b) For purposes of this section: | |
| 179 | 128 | ||
| 180 | 129 | (1) Qualified employee means an employee who is a member of a targeted group, as defined in subdivision (d) of Section 51 of the Internal Revenue Code, relating to members of targeted groups, and who has worked 500 or more hours for the qualified employer. | |
| 181 | 130 | ||
| 131 | + | (2) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department. | |
| 182 | 132 | ||
| 133 | + | (3) Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period. | |
| 183 | 134 | ||
| 184 | - | ( | |
| 135 | + | (4) Qualified wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code. | |
| 185 | 136 | ||
| 186 | - | ( | |
| 137 | + | (c) The qualified employer shall be allowed the credit in the taxable year in which the employer receives the certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages. | |
| 187 | 138 | ||
| 188 | - | (2) | |
| 139 | + | (d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding nine years if necessary, until the credit is exhausted. | |
| 140 | + | ||
| 141 | + | (e) If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section. | |
| 142 | + | ||
| 143 | + | (f) For purposes of complying with Section 41, the Legislature finds and declares that many Californians struggle to find work due to their personal history. As such, this credit would provide businesses with credits and an incentive to hire individuals who have employment barriers in the workforce. | |
| 144 | + | ||
| 145 | + | SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 146 | + | ||
| 147 | + | SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 148 | + | ||
| 149 | + | SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 150 | + | ||
| 151 | + | ### SEC. 4. | |
| 189 | 152 | ||
| 190 | 153 | ||
| 191 | 154 | ||
| 192 | - | (3) Qualified employer means a taxpayer that is an employer that qualifies for a federal Work Opportunity Tax Credit, pursuant to Section 51 of the Internal Revenue Code, relating to amount of credit, as certified by the Employment Development Department. is subject to, and is required to provide, unemployment insurance to the taxpayers employees pursuant to the Unemployment Insurance Code. | |
| 193 | 155 | ||
| 194 | - | (3)Qualified first-year wages means, with respect to any qualified employee, qualified wages attributable to service rendered during the one-year period beginning with the day the qualified employee begins work for the qualified employer. Qualified first-year wages does not include the first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period. | |
| 156 | + | ||
| 157 | + | (a)The Legislature finds and declares that, in order for California to remain prosperous and globally competitive, it needs to have a well-educated and highly skilled workforce. | |
| 195 | 158 | ||
| 196 | 159 | ||
| 197 | 160 | ||
| 198 | - | ( | |
| 161 | + | (b)The Legislature finds and declares that the following principles shall guide the states workforce investment system: | |
| 199 | 162 | ||
| 200 | 163 | ||
| 201 | 164 | ||
| 202 | - | ( | |
| 165 | + | (1)Workforce investment programs and services shall be responsive to the needs of employers, workers, and students by accomplishing the following: | |
| 203 | 166 | ||
| 204 | 167 | ||
| 205 | 168 | ||
| 206 | - | (4) Qualified individual means any person who is covered by unemployment insurance by his or her employer pursuant to the Unemployment Insurance Code. | |
| 207 | - | ||
| 208 | - | (c) The federal WOTC is modified as follows: | |
| 209 | - | ||
| 210 | - | (1) Section 51(a) of the Internal Revenue Code, relating to determination of amount, is modified to limit the amount of tax credit allowed so as not to exceed two thousand four hundred dollars ($2,400) per qualified individual. | |
| 211 | - | ||
| 212 | - | (2) Section 51(b) of the Internal Revenue Code, relating to qualified wages defined, is modified as follows: | |
| 213 | - | ||
| 214 | - | (A) The wages are required to be attributable to an employee from a targeted group, as defined by Section 51(d) of the Internal Revenue Code, relating to members of targeted groups, and as modified by this section, who has worked not less than 500 hours for the qualified employer. | |
| 215 | - | ||
| 216 | - | (B) The first five thousand dollars ($5,000) of wages attributable to service rendered during that one-year period are excluded from the calculation of qualified wages. | |
| 217 | - | ||
| 218 | - | (3) Section 51(c) of the Internal Revenue Code, relating to wages defined, is modified to exclusively apply to wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code. | |
| 219 | - | ||
| 220 | - | (4) Sections 51(d)(1)(D), 51(d)(1)(F), 51(d)(3)(A)(iii), 51(d)(13)(D)(i)(II), and 51(d)(14) of the Internal Revenue Code shall not apply. | |
| 221 | - | ||
| 222 | - | (5) Section 51(e) of the Internal Revenue Code, relating to qualified second-year wages, shall not apply. | |
| 223 | - | ||
| 224 | - | (6) Section 51(g) of the Internal Revenue Code, relating to United States employment service to notify employers of availability of credit, is modified to substitute Employment Development Department, in consultation with the Franchise Tax Board in lieu of United States Employment Service, in consultation with the Internal Revenue Service. | |
| 225 | - | ||
| 226 | - | (7) Section 51(h) of the Internal Revenue Code, relating to special rules for agricultural labor and railway labor, shall not apply. | |
| 227 | - | ||
| 228 | - | (8) Section 51(i)(3) of the Internal Revenue Code, relating to individuals not meeting minimum employment periods, shall not apply. | |
| 229 | - | ||
| 230 | - | (9) Section 51(j) of the Internal Revenue Code, relating to election to have work opportunity not apply, is modified to substitute last date prescribed by state law in lieu of last date prescribed by law. | |
| 231 | - | ||
| 232 | - | (d) (1) Notwithstanding the federal WOTC, the qualified employer shall be allowed the credit California WOTC in the taxable year in which the employer receives the a certification from the Employment Development Department or in the taxable year in which the qualified employer paid or incurred the qualified first year wages. | |
| 233 | - | ||
| 234 | - | (2) Consistent with the requirements of the federal WOTC, the Employment Development Department shall issue certification of qualified individuals, subject to the modifications provided by this section. | |
| 235 | - | ||
| 236 | - | (d)In | |
| 169 | + | (A)Preparing Californias students and workers with the skills necessary to successfully compete in the global economy. | |
| 237 | 170 | ||
| 238 | 171 | ||
| 239 | 172 | ||
| 240 | - | (e) Notwithstanding the federal WOTC, in the case where the credit allowed by this section California WOTC exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding nine years if necessary, until the credit California WOTC is exhausted. | |
| 241 | - | ||
| 242 | - | (e)If Section 51 of the Internal Revenue Code, relating to amount of credit, is repealed, the Employment Development Department shall continue to issue certifications pursuant to the requirements of Section 51 of the Internal Revenue Code, relating to amount of credit, for the purposes of this section. | |
| 173 | + | (B)Producing greater numbers of individuals who obtain industry-recognized certificates and career-oriented degrees in competitive and emerging industry sectors and filling critical labor market skills gaps. | |
| 243 | 174 | ||
| 244 | 175 | ||
| 245 | 176 | ||
| 246 | - | ( | |
| 177 | + | (C)Adapting to rapidly changing local and regional labor markets as specific workforce skill requirements change over time. | |
| 247 | 178 | ||
| 248 | 179 | ||
| 249 | 180 | ||
| 250 | - | ( | |
| 181 | + | (D)Preparing workers for good-paying jobs that foster economic security and upward mobility. | |
| 251 | 182 | ||
| 252 | - | (g) (1) Upon the effective date of this section, the Department of Finance shall estimate the total dollar amount of credits that will be claimed under this section with respect to each tax year from 201819 fiscal year to the 202425 fiscal year, inclusive. | |
| 253 | 183 | ||
| 254 | - | (2) The Franchise Tax Board shall annually provide to the Joint Legislative Budget Committee, by no later than March 1, a report, in accordance with Section 9795 of the Government Code, that includes all of the following: | |
| 255 | 184 | ||
| 256 | - | ( | |
| 185 | + | (E)Aligning employment programs, resources, and planning efforts regionally around industry sectors that drive regional employment to connect services and training directly to jobs. | |
| 257 | 186 | ||
| 258 | - | (B) The number of tax returns claiming the credit. | |
| 259 | 187 | ||
| 260 | - | (C) The number of qualified individuals represented on tax returns claiming the credit. | |
| 261 | 188 | ||
| 262 | - | ( | |
| 189 | + | (2)State and local workforce development boards are encouraged to collaborate with other public and private institutions, including businesses, unions, nonprofit organizations, kindergarten and grades 1 to 12, inclusive, career technical education programs, adult career technical education and basic skills programs, apprenticeships, community college career technical education and basic skills programs, entrepreneurship training programs, where appropriate, the California Community Colleges Economic and Workforce Development Program, the Employment Training Panel, and county-based social and employment services, to better align resources across workforce, training, education, and social service delivery systems and build a well-articulated workforce investment system by accomplishing the following: | |
| 263 | 190 | ||
| 264 | - | (2) Notwithstanding paragraph (1), this section shall continue to be operative for taxable years beginning on or after January 1, 2018, but only with respect to qualified individuals who commenced employment with a qualified taxpayer in a taxable year beginning before January 1, 2026. | |
| 265 | 191 | ||
| 266 | - | SEC. 4. (a) In accordance with Section 41 of the Revenue and Taxation Code, the purpose of the California Work Opportunity Credit, as added to the Revenue and Taxation Code by Sections 17053.72 and 23672 of this bill, is to encourage employers to hire individuals from targeted groups which have been found to face systemic barriers to employment. To measure whether the credit achieves its intended purpose the Employment Development Department shall annually prepare a written report on the following:(1) The number of employers, based on employer IDs, who filed for certification.(2) The number and percentage of employees for which certification was granted.(3) The distribution of newly hired employees over the eight eligible targeted groups.(4) The distribution of employers based on industry sectors.(5) The distribution of employees based on industry sectors.(b) On or before October 1, 2019, and annually thereafter while Sections 17053.72 and 23672 of the Revenue and Taxation Code are in effect, the Employment Development Department shall post on its Internet Web site the written report required by subdivision (a). A letter indicating that the report is posted shall be delivered to the Assembly and Senate Desks within four calendar days of the report being posted on the website of the Employment Development Department. The Assembly and Senate Desks shall distribute the notice, as the respective Desk deems appropriate. | |
| 267 | 192 | ||
| 268 | - | ||
| 193 | + | (A)Adopting local and regional training and education strategies which include workplace-based earn and learn programs that build on the strengths and fill the gaps in the education and workforce development pipeline in order to address the needs of job seekers, workers, and employers within regional labor markets by supporting sector strategies. | |
| 269 | 194 | ||
| 270 | - | SEC. 4. (a) In accordance with Section 41 of the Revenue and Taxation Code, the purpose of the California Work Opportunity Credit, as added to the Revenue and Taxation Code by Sections 17053.72 and 23672 of this bill, is to encourage employers to hire individuals from targeted groups which have been found to face systemic barriers to employment. To measure whether the credit achieves its intended purpose the Employment Development Department shall annually prepare a written report on the following: | |
| 271 | 195 | ||
| 272 | - | ### SEC. 4. | |
| 273 | 196 | ||
| 274 | - | ( | |
| 197 | + | (B)Leveraging resources across education and workforce training delivery systems to build career pathways and fill critical skills gaps. | |
| 275 | 198 | ||
| 276 | - | (2) The number and percentage of employees for which certification was granted. | |
| 277 | 199 | ||
| 278 | - | (3) The distribution of newly hired employees over the eight eligible targeted groups. | |
| 279 | 200 | ||
| 280 | - | ( | |
| 201 | + | (3)Workforce investment programs and services shall be data driven and evidence based when setting priorities, investing resources, and adopting practices. | |
| 281 | 202 | ||
| 282 | - | (5) The distribution of employees based on industry sectors. | |
| 283 | 203 | ||
| 284 | - | (b) On or before October 1, 2019, and annually thereafter while Sections 17053.72 and 23672 of the Revenue and Taxation Code are in effect, the Employment Development Department shall post on its Internet Web site the written report required by subdivision (a). A letter indicating that the report is posted shall be delivered to the Assembly and Senate Desks within four calendar days of the report being posted on the website of the Employment Development Department. The Assembly and Senate Desks shall distribute the notice, as the respective Desk deems appropriate. | |
| 285 | 204 | ||
| 286 | - | ||
| 205 | + | (4)Workforce investment programs and services shall develop strong partnerships with the private sector, ensuring industry involvement in needs assessment, planning, and program evaluation. | |
| 287 | 206 | ||
| 288 | - | SEC. 4.SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 289 | 207 | ||
| 290 | - | SEC. 4.SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 291 | 208 | ||
| 292 | - | ### SEC. 4.SEC. 5. | |
| 209 | + | (A)Workforce investment programs and services shall encourage industry involvement by developing strong partnerships with an industrys employers and the unions that represent the industrys workers. | |
| 210 | + | ||
| 211 | + | ||
| 212 | + | ||
| 213 | + | (B)Workforce investment programs and services may consider the needs of employers and businesses of all sizes, including large, medium, small, and microenterprises, and sole proprietorships when setting priorities, investing resources, and adopting practices. | |
| 214 | + | ||
| 215 | + | ||
| 216 | + | ||
| 217 | + | (5)Workforce investment programs and services shall be outcome oriented and accountable, measuring results for program participants, including, but not limited to, outcomes related to program completion, employment, and earnings. | |
| 218 | + | ||
| 219 | + | ||
| 220 | + | ||
| 221 | + | (6)Programs and services shall be accessible to employers, the self-employed, workers, and students who may benefit from their operation, including individuals with employment barriers, such as persons with economic, physical, or other barriers to employment. | |
| 222 | + | ||
| 223 | + | ||
| 224 | + | ||
| 225 | + | ||
| 226 | + | ||
| 227 | + | ||
| 228 | + | ||
| 229 | + | Consistent with the requirements of the Workforce Innovation and Opportunity Act, the local board shall do all of the following: | |
| 230 | + | ||
| 231 | + | ||
| 232 | + | ||
| 233 | + | (a)In partnership with the chief elected official for the local area involved, develop and submit a local plan to the Governor that meets the requirements of the Workforce Innovation and Opportunity Act. If the local area is part of a planning region that includes other local areas, the local board shall collaborate with the other local boards and chief elected officials from such other local areas in the preparation and submission of a regional plan as described in the Workforce Innovation and Opportunity Act. | |
| 234 | + | ||
| 235 | + | ||
| 236 | + | ||
| 237 | + | (b)In order to assist in the development and implementation of the local plan, the local board shall do all of the following: | |
| 238 | + | ||
| 239 | + | ||
| 240 | + | ||
| 241 | + | (1)Carry out analyses of the economic conditions in the region, the needed knowledge and skills for the region, the workforce in the region, and workforce development activities, including education and training, in the region described in Section 3123(b)(1)(D) of Title 29 of the United States Code, and regularly update that information. | |
| 242 | + | ||
| 243 | + | ||
| 244 | + | ||
| 245 | + | (2)Assist the Governor in developing the statewide workforce and labor market information system described in Section 15(e) of the Wagner-Peyser Act (29 U.S.C. Sec. 49l2(e)), specifically in the collection, analysis, and utilization of workforce and labor market information for the region. | |
| 246 | + | ||
| 247 | + | ||
| 248 | + | ||
| 249 | + | (3)Conduct such other research, data collection, and analysis related to the workforce needs of the regional economy as the board, after receiving input from a wide array of stakeholders, determines to be necessary to carry out its functions. | |
| 250 | + | ||
| 251 | + | ||
| 252 | + | ||
| 253 | + | (c)Convene local workforce development system stakeholders to assist in the development of the local plan under Section 3123 of Title 29 of the United States Code and in identifying nonfederal expertise and resources to leverage support for workforce development activities. The local board, including standing committees, may engage such stakeholders in carrying out the functions described in this subdivision. | |
| 254 | + | ||
| 255 | + | ||
| 256 | + | ||
| 257 | + | (d)Lead efforts to engage with a diverse range of employers and with entities in the region involved to do all of the following: | |
| 258 | + | ||
| 259 | + | ||
| 260 | + | ||
| 261 | + | (1)Promote business representation, particularly representatives with optimal policymaking or hiring authority from employers whose employment opportunities reflect existing and emerging employment opportunities in the region, on the local board. | |
| 262 | + | ||
| 263 | + | ||
| 264 | + | ||
| 265 | + | (2)Develop effective linkages, including the use of intermediaries, with employers in the region to support employer utilization of the local workforce development system and to support local workforce investment activities. | |
| 266 | + | ||
| 267 | + | ||
| 268 | + | ||
| 269 | + | (3)Ensure that workforce investment activities meet the needs of employers and support economic growth in the region, by enhancing communication, coordination, and collaboration among employers, economic development entities, and service providers. | |
| 270 | + | ||
| 271 | + | ||
| 272 | + | ||
| 273 | + | (4)Develop and implement proven or promising strategies for meeting the employment and skill needs of workers and employers, like the establishment of industry and sector partnerships, that provide the skilled workforce needed by employers in the region, and that expand employment and career advancement opportunities for workforce development system participants in in-demand industry sectors or occupations. | |
| 274 | + | ||
| 275 | + | ||
| 276 | + | ||
| 277 | + | (e)With representatives of secondary and postsecondary education programs, lead efforts in the local area to develop and implement career pathways within the local area by aligning the employment, training, education, and supportive services that are needed by adults and youth, particularly individuals with barriers to employment. | |
| 278 | + | ||
| 279 | + | ||
| 280 | + | ||
| 281 | + | (f)Lead efforts in the local area to accomplish all of the following: | |
| 282 | + | ||
| 283 | + | ||
| 284 | + | ||
| 285 | + | (1)Identify and promote proven and promising strategies and initiatives for meeting the needs of employers, and workers and jobseekers, including individuals with barriers to employment, in the local workforce development system, including providing physical and programmatic accessibility, in accordance with Section 3248 of Title 29 of the United States Code, if applicable, and applicable provisions of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), to the one-stop delivery system. | |
| 286 | + | ||
| 287 | + | ||
| 288 | + | ||
| 289 | + | (2)Identify and disseminate information on proven and promising practices carried out in other local areas for meeting these needs. | |
| 290 | + | ||
| 291 | + | ||
| 292 | + | ||
| 293 | + | (3)Identify and promote sector strategies, career pathways, and earn-and-learn training models that support new ways of working, including, but not limited to, programs and investments that meet the needs of social benefit corporations, worker cooperatives, and social enterprises. | |
| 294 | + | ||
| 295 | + | ||
| 296 | + | ||
| 297 | + | (g)Develop strategies for using technology to maximize the accessibility and effectiveness of the local workforce development system for employers, and workers and jobseekers, by doing all of the following: | |
| 298 | + | ||
| 299 | + | ||
| 300 | + | ||
| 301 | + | (1)Facilitating connections among the intake and case management information systems of the one-stop partner programs to support a comprehensive workforce development system in the local area. | |
| 302 | + | ||
| 303 | + | ||
| 304 | + | ||
| 305 | + | (2)Facilitating access to services provided through the one-stop delivery system involved, including facilitating the access in remote areas. | |
| 306 | + | ||
| 307 | + | ||
| 308 | + | ||
| 309 | + | (3)Identifying strategies for better meeting the needs of individuals with barriers to employment, including strategies that augment traditional service delivery, and increase access to services and programs of the one-stop delivery system, such as improving digital literacy skills. | |
| 310 | + | ||
| 311 | + | ||
| 312 | + | ||
| 313 | + | (4)Leveraging resources and capacity within the local workforce development system, including resources and capacity for services for individuals with barriers to employment. | |
| 314 | + | ||
| 315 | + | ||
| 316 | + | ||
| 317 | + | (h)In partnership with the chief elected official for the local area, shall conduct oversight for local youth workforce investment activities as required under the federal Workforce Innovation and Opportunity Act, ensure the appropriate use and management of the funds as required under the Workforce Innovation and Opportunity Act, and, for workforce development activities, ensure the appropriate use, management, and investment of funds to maximize performance outcomes as required under the federal Workforce Innovation and Opportunity Act. | |
| 318 | + | ||
| 319 | + | ||
| 320 | + | ||
| 321 | + | (i)Negotiate and reach agreement on local performance accountability measures, as described in Section 3141(c) of Title 29 of the United States Code, with the chief elected official and the Governor. | |
| 322 | + | ||
| 323 | + | ||
| 324 | + | ||
| 325 | + | (j)Select and provide access to system operators, service providers, trainers, and educators, in a manner consistent with the requirements of the Workforce Innovation and Opportunity Act and applicable state laws, including all of the following: | |
| 326 | + | ||
| 327 | + | ||
| 328 | + | ||
| 329 | + | (1)Consistent with Section 3151(d) of Title 29 of the United States Code, and with the agreement of the chief elected official for the local area, designate or certify one-stop operators as described in Section 3151(d)(2)(A) of Title 29 of the United States Code and terminate for cause the eligibility of these operators. | |
| 330 | + | ||
| 331 | + | ||
| 332 | + | ||
| 333 | + | (2)Consistent with Section 3153 of Title 29 of the United States Code, identify eligible providers of youth workforce investment activities in the local area by awarding grants or contracts on a competitive basis, except as provided in Section 3153(b) of Title 29 of the United States Code, based on the recommendations of the youth standing committee, if such a committee is established for the local area and terminate for cause the eligibility of these providers. | |
| 334 | + | ||
| 335 | + | ||
| 336 | + | ||
| 337 | + | (3)Consistent with Section 3152 of Title 29 of the United States Code and paragraph (4) of subdivision (d) of Section 14020, identify eligible providers of training services in the local area. | |
| 338 | + | ||
| 339 | + | ||
| 340 | + | ||
| 341 | + | (4)If the one-stop operator does not provide career services described in Section 3174(c)(2) of Title 29 of the United States Code in a local area, identify eligible providers of those career services in the local area by awarding contracts. | |
| 342 | + | ||
| 343 | + | ||
| 344 | + | ||
| 345 | + | (5)Consistent with Section 3152 of Title 29 of the United States Code and paragraphs (2) and (3) of Section 3174(c) of Title 29 of the United States Code, work with the state to ensure there are sufficient numbers and types of providers of career services and training services, including eligible providers with expertise in assisting individuals with disabilities and eligible providers with expertise in assisting adults in need of adult education and literacy activities, serving the local area and providing the services involved in a manner that maximizes consumer choice, as well as providing opportunities that lead to competitive integrated employment for individuals with disabilities. | |
| 346 | + | ||
| 347 | + | ||
| 348 | + | ||
| 349 | + | (k)Consistent with the requirements of the Workforce Innovation and Opportunity Act, coordinate activities with education and training providers in the local area, including providers of workforce development activities, providers of adult education and literacy activities under Title II of the Workforce Innovation and Opportunity Act, providers of career and technical education, as defined in Section 2302 of Title 20 of the United States Code, and local agencies administering plans under Title I of the Rehabilitation Act of 1973 (29 U.S.C. Sec. 720 et seq.), other than Section 112 or Part C of that Title (29 U.S.C. Sec. 732, 741). | |
| 350 | + | ||
| 351 | + | ||
| 352 | + | ||
| 353 | + | ||
| 354 | + | ||
| 355 | + | No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because this act implements a federal law or regulation and results only in costs mandated by the federal government, within the meaning of Section 17556 of the Government Code. |