CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 382Introduced by Senator BeckerFebruary 09, 2023 An act to add Division 7.5 (commencing with Section 14540) to the Unemployment Insurance Code, relating to workforce development. LEGISLATIVE COUNSEL'S DIGESTSB 382, as introduced, Becker. California Workforce Pay for Success Act.Existing law establishes the Labor and Workforce Development Agency in state government under the supervision of an executive officer known as the Secretary of Labor and Workforce Development. Existing law charges the agency with various duties relating to coordinating workforce programs and overseeing specified departments, boards, and panels, including the Employment Development Department and the California Workforce Development Board.Prior law, which was repealed on January 1, 2022, established the Social Innovation Financing Program, which was administered by the Board of State and Community Corrections, to award grants to 3 counties selected by the board, for the purpose of entering into a social innovation financing contract, also known as a pay for success contract, pursuant to which private investors agreed to provide financing to service providers to achieve social outcomes agreed upon in advance and the government agency that was a party to the contractual agreement agreed to pay a return on the investment to the investors if successful programmatic outcomes were achieved by the service provider. This bill would establish the California Workforce Pay for Success Program to assist workers facing economic, social, and structural barriers to employment and career advancement, upon appropriation by the Legislature for these purposes. The bill would require the program to enter into workforce pay for success contracts, as defined, with eligible organizations that serve qualified participants. The bill would establish the Workforce Pay for Success Program Board within the Labor and Workforce Development Agency, consisting of specified members appointed by the Governor, the Speaker of the Assembly, and the Senate Rules Committee. The bill would require the board to establish a selection process for the program and solicit proposals from eligible organizations. The bill would also require the Labor and Workforce Development Agency or its designated division to convene a workgroup to advise the board on program design. Upon appropriation of funds by the Legislature, the bill would create the Workforce Pay for Success Program Fund for purposes of the program, and would require the board, on or before January 1, 2026, to submit a report to the Department of Finance and the Legislature regarding the implementation of the program. The bill would include related legislative findings. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) California has a vibrant economy, which ranks as the fourth largest in the world.(b) Yet, it has one of the highest levels of income inequality in the county.(c) The unemployment rate in California historically has exceeded the rate for the nation as a whole.(d) Nearly 800,000 Californians are unemployed and a large number of Californians are underemployed. (e) Despite increasing rates of higher education following the Great Recession, social mobility has stalled.(f) The Future of Work Commission found one of Californias main tasks is to build jobs for the future.(g) The commission further stated that a critical challenge that lies ahead is to ensure that displaced workers from shrinking occupations are retrained with the appropriate skills and matched to growing occupations. Many workers who need to switch employers or change occupations will need to be connected to training opportunities.(h) California has an untapped resource of workers from underserved populations, including refugees and immigrants who could help fill the shortages that currently exist in certain industries.(i) However, on both sides of the political spectrum, there is skepticism about the effectiveness of many job training programs.(j) Therefore, it is critical to support job training programs delivering the best results.(k) It is also critical to continue supporting efforts that measure the effectiveness of job training programs in order to make continual improvements to those programs.(l) This is crucial when, for example, a global pandemic hits; or, less dramatically, when a recession or a major policy change occurs.(m) Now is the time for California to support programs that effectively pay for workforce success, by creating an innovative mechanism for programs delivering the best results, while continuing to support efforts to measure and continually improve all programs.(n) In order to achieve this goal, it is necessary to engage community-based organizations that have a proven track record of working with the unemployed and underemployed in partnership with government that can respond quickly to trends in the economy, including the predicted downturn.(o) Thus, it is the intent of the Legislature to create an effective framework for social investment partnerships in this state through the enactment of the California Workforce Pay for Success Act.SEC. 2. Division 7.5 (commencing with Section 14540) is added to the Unemployment Insurance Code, to read:DIVISION 7.5. California Workforce Pay for Success Act14540. This division shall be known, and may be cited, as the California Workforce Pay for Success Act.14541. For purposes of this division, the following definitions apply: (a) Board means the Workforce Pay for Success Program Board established pursuant to this division.(b) Eligible organization means a nonprofit organization, as described in Section 501(c)(3) of the Internal Revenue Code, that provides job training and workforce services, including, but not limited to, occupational skills training, on-the-job training, workplace training and cooperative education programs, skills upgrade and retraining, entrepreneurial training, job readiness training, adult education, and literacy activities combined with training, and customized training.(c) Participant means an individual with employment barriers, as defined in subdivision (j) of Section 14005, who qualifies for participation in the program.(d) Program means the California Workforce Pay for Success Program established pursuant to this division.(e) (1) Workforce pay for success contract, also known as a social innovation financing contract or contract, means a contractual agreement, which meets the criteria set forth in paragraphs (2) and (3), between government agencies, service providers, or other intermediaries in which government agencies agree to pay commensurate with successful programmatic outcomes achieved by the service provider.(2) For purposes of paragraph (1), a workforce pay for success contract is a contract that includes a set of innovative outcomes-based financing and funding tools that directly and measurably improve lives by driving resources toward results.(3) For purposes of paragraph (2), innovative outcomes-based financing and funding tools includes all of the following elements:(A) Clearly-defined outcomes.(B) Data-driven decisionmaking.(C) Outcomes-based payment.(D) Strong governance and accountability. (f) Workforce Pay for Success Program Fund means the fund established pursuant to Section 14545.14542. (a) On and after January 1, 2024, and contingent upon an appropriation by the Legislature in the annual Budget Act or another statute, the Workforce Pay for Success Program is hereby established to assist workers facing economic, social, and structural barriers to employment and career advancement.(b) The program shall enter into workforce pay for success contracts with eligible organizations that serve qualified participants.(c) The board shall establish a selection process for the program and solicit proposals from eligible organizations. (d) In selecting recipients, the board shall consider the following, which each applicant shall provide in a format prescribed by the board:(1) A description of the proposed social program.(2) A description of the eligible organizations experience in providing the proposed social program.(3) A description of the financial stability of the organization.(4) An identification of each component of the social program to be provided.(5) A description of the manner in which the social program will be provided.(6) The proposed quantifiable results upon which success of the social program will be measured.(7) An estimated budget for service delivery under the contract.(8) An overview of all potential parties to the proposed contract, and key supporters.(9) A description of the ways in which the proposal plans to reduce outcome disparities for priority populations, including racial and ethnic minorities. (e) Each contract shall include all of the following:(1) A requirement that the payment be conditioned on specific outcomes based upon defined performance targets.(2) An objective process to determine whether performance targets have been achieved. This process shall include defined performance metrics and a monitoring plan.(3) A calculation of the amount and timing of payments that would be earned during each year of the agreement if performance targets are achieved.(4) A determination by the board that the contract is likely to result in significant benefits for program participants.(5) A clear description of the recruitment and selection process, as applicable, for participants in the program. 14543. (a) The Workforce Pay For Success Program Board is hereby established in the Labor and Workforce Development Agency.(b) (1) The board shall consist of the following members:(A) Two members from the labor sector.(B) Two members from the business sector.(C) Two members from state and local government.(D) One member from a nonprofit organization.(E) One ex-officio executive director who reports directly to the Secretary of Labor and Workforce Development.(2) The Governor shall appoint the members of the board from the labor sector, from state and local government, and the ex-officio executive director, subject to the approval of the Senate. The Speaker of the Assembly and the Senate Rules Committee shall jointly appoint the members from the business sector and a nonprofit organization.(c) The appointments shall be at the will of each appointing power and each member of the board shall serve for a term of four years except that all terms shall end on the date this section becomes inoperative. All terms that end prior to the date that this section becomes inoperative shall end on January 1. Vacancies occurring prior to the expiration of the term shall be filled by appointment for the unexpired term. A member shall not serve more than two consecutive terms. (d) Each member of the board shall receive one hundred dollars ($100) for each day of their actual attendance at meetings of the board and other official business of the board, in addition to their actual necessary traveling expenses incurred in the performance of their duty as a member.(e) The boards purpose shall be to administer the program, including allocating funds in a manner that creates job opportunities for participants with employers that provide high quality-jobs, opportunities for economic mobility and career advancement, and promote wealth and asset building for program participants.14544. The Labor and Workforce Development Agency or its designated division shall convene a workgroup to advise the board on program design, including, but not limited to, the following elements: service provider eligibility, participant eligibility, collection of program data on services provided, demographics of individuals and target populations served, labor market outcomes participants, performance-based funding of services and claw back mechanisms, fund sustainability mechanisms, including possible employer match and pay-it-forward elements for successful participants, program evaluation, outreach, and awareness.14545. Upon appropriation of funds by the Legislature, the Workforce Pay for Success Program Fund is hereby created as a special fund in the State Treasury, separate and apart from all other public money or funds of the state, for the purposes of this division. The moneys and assets of this fund shall be held by the board and administered exclusively for the purposes of this division. 14546. On or before January 1, 2026, and subject to appropriation of funds for purposes of this division, the board shall submit a report to the Department of Finance and the Legislature, in compliance with Section 9795, regarding the implementation the program pursuant to this division. The report shall include, but is not limited to, all of the following:(a) An evaluation of the program as compared to other similar outcomes-based programs.(b) An evaluation of the overall success achieved through funds distributed under the program.(c) Detailed information about the quantity, monetary value, geographic distribution, and categories of funds distributed under the program.(d) Detailed information about the sources and amounts of funds appropriated or granted to the program.(e) Detailed information about any barriers encountered under the program.(f) Any other information necessary or convenient to evaluate the program.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 382Introduced by Senator BeckerFebruary 09, 2023 An act to add Division 7.5 (commencing with Section 14540) to the Unemployment Insurance Code, relating to workforce development. LEGISLATIVE COUNSEL'S DIGESTSB 382, as introduced, Becker. California Workforce Pay for Success Act.Existing law establishes the Labor and Workforce Development Agency in state government under the supervision of an executive officer known as the Secretary of Labor and Workforce Development. Existing law charges the agency with various duties relating to coordinating workforce programs and overseeing specified departments, boards, and panels, including the Employment Development Department and the California Workforce Development Board.Prior law, which was repealed on January 1, 2022, established the Social Innovation Financing Program, which was administered by the Board of State and Community Corrections, to award grants to 3 counties selected by the board, for the purpose of entering into a social innovation financing contract, also known as a pay for success contract, pursuant to which private investors agreed to provide financing to service providers to achieve social outcomes agreed upon in advance and the government agency that was a party to the contractual agreement agreed to pay a return on the investment to the investors if successful programmatic outcomes were achieved by the service provider. This bill would establish the California Workforce Pay for Success Program to assist workers facing economic, social, and structural barriers to employment and career advancement, upon appropriation by the Legislature for these purposes. The bill would require the program to enter into workforce pay for success contracts, as defined, with eligible organizations that serve qualified participants. The bill would establish the Workforce Pay for Success Program Board within the Labor and Workforce Development Agency, consisting of specified members appointed by the Governor, the Speaker of the Assembly, and the Senate Rules Committee. The bill would require the board to establish a selection process for the program and solicit proposals from eligible organizations. The bill would also require the Labor and Workforce Development Agency or its designated division to convene a workgroup to advise the board on program design. Upon appropriation of funds by the Legislature, the bill would create the Workforce Pay for Success Program Fund for purposes of the program, and would require the board, on or before January 1, 2026, to submit a report to the Department of Finance and the Legislature regarding the implementation of the program. The bill would include related legislative findings. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Senate Bill
No. 382
Introduced by Senator BeckerFebruary 09, 2023
Introduced by Senator Becker
February 09, 2023
An act to add Division 7.5 (commencing with Section 14540) to the Unemployment Insurance Code, relating to workforce development.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 382, as introduced, Becker. California Workforce Pay for Success Act.
Existing law establishes the Labor and Workforce Development Agency in state government under the supervision of an executive officer known as the Secretary of Labor and Workforce Development. Existing law charges the agency with various duties relating to coordinating workforce programs and overseeing specified departments, boards, and panels, including the Employment Development Department and the California Workforce Development Board.Prior law, which was repealed on January 1, 2022, established the Social Innovation Financing Program, which was administered by the Board of State and Community Corrections, to award grants to 3 counties selected by the board, for the purpose of entering into a social innovation financing contract, also known as a pay for success contract, pursuant to which private investors agreed to provide financing to service providers to achieve social outcomes agreed upon in advance and the government agency that was a party to the contractual agreement agreed to pay a return on the investment to the investors if successful programmatic outcomes were achieved by the service provider. This bill would establish the California Workforce Pay for Success Program to assist workers facing economic, social, and structural barriers to employment and career advancement, upon appropriation by the Legislature for these purposes. The bill would require the program to enter into workforce pay for success contracts, as defined, with eligible organizations that serve qualified participants. The bill would establish the Workforce Pay for Success Program Board within the Labor and Workforce Development Agency, consisting of specified members appointed by the Governor, the Speaker of the Assembly, and the Senate Rules Committee. The bill would require the board to establish a selection process for the program and solicit proposals from eligible organizations. The bill would also require the Labor and Workforce Development Agency or its designated division to convene a workgroup to advise the board on program design. Upon appropriation of funds by the Legislature, the bill would create the Workforce Pay for Success Program Fund for purposes of the program, and would require the board, on or before January 1, 2026, to submit a report to the Department of Finance and the Legislature regarding the implementation of the program. The bill would include related legislative findings.
Existing law establishes the Labor and Workforce Development Agency in state government under the supervision of an executive officer known as the Secretary of Labor and Workforce Development. Existing law charges the agency with various duties relating to coordinating workforce programs and overseeing specified departments, boards, and panels, including the Employment Development Department and the California Workforce Development Board.
Prior law, which was repealed on January 1, 2022, established the Social Innovation Financing Program, which was administered by the Board of State and Community Corrections, to award grants to 3 counties selected by the board, for the purpose of entering into a social innovation financing contract, also known as a pay for success contract, pursuant to which private investors agreed to provide financing to service providers to achieve social outcomes agreed upon in advance and the government agency that was a party to the contractual agreement agreed to pay a return on the investment to the investors if successful programmatic outcomes were achieved by the service provider.
This bill would establish the California Workforce Pay for Success Program to assist workers facing economic, social, and structural barriers to employment and career advancement, upon appropriation by the Legislature for these purposes. The bill would require the program to enter into workforce pay for success contracts, as defined, with eligible organizations that serve qualified participants. The bill would establish the Workforce Pay for Success Program Board within the Labor and Workforce Development Agency, consisting of specified members appointed by the Governor, the Speaker of the Assembly, and the Senate Rules Committee. The bill would require the board to establish a selection process for the program and solicit proposals from eligible organizations. The bill would also require the Labor and Workforce Development Agency or its designated division to convene a workgroup to advise the board on program design. Upon appropriation of funds by the Legislature, the bill would create the Workforce Pay for Success Program Fund for purposes of the program, and would require the board, on or before January 1, 2026, to submit a report to the Department of Finance and the Legislature regarding the implementation of the program. The bill would include related legislative findings.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) California has a vibrant economy, which ranks as the fourth largest in the world.(b) Yet, it has one of the highest levels of income inequality in the county.(c) The unemployment rate in California historically has exceeded the rate for the nation as a whole.(d) Nearly 800,000 Californians are unemployed and a large number of Californians are underemployed. (e) Despite increasing rates of higher education following the Great Recession, social mobility has stalled.(f) The Future of Work Commission found one of Californias main tasks is to build jobs for the future.(g) The commission further stated that a critical challenge that lies ahead is to ensure that displaced workers from shrinking occupations are retrained with the appropriate skills and matched to growing occupations. Many workers who need to switch employers or change occupations will need to be connected to training opportunities.(h) California has an untapped resource of workers from underserved populations, including refugees and immigrants who could help fill the shortages that currently exist in certain industries.(i) However, on both sides of the political spectrum, there is skepticism about the effectiveness of many job training programs.(j) Therefore, it is critical to support job training programs delivering the best results.(k) It is also critical to continue supporting efforts that measure the effectiveness of job training programs in order to make continual improvements to those programs.(l) This is crucial when, for example, a global pandemic hits; or, less dramatically, when a recession or a major policy change occurs.(m) Now is the time for California to support programs that effectively pay for workforce success, by creating an innovative mechanism for programs delivering the best results, while continuing to support efforts to measure and continually improve all programs.(n) In order to achieve this goal, it is necessary to engage community-based organizations that have a proven track record of working with the unemployed and underemployed in partnership with government that can respond quickly to trends in the economy, including the predicted downturn.(o) Thus, it is the intent of the Legislature to create an effective framework for social investment partnerships in this state through the enactment of the California Workforce Pay for Success Act.SEC. 2. Division 7.5 (commencing with Section 14540) is added to the Unemployment Insurance Code, to read:DIVISION 7.5. California Workforce Pay for Success Act14540. This division shall be known, and may be cited, as the California Workforce Pay for Success Act.14541. For purposes of this division, the following definitions apply: (a) Board means the Workforce Pay for Success Program Board established pursuant to this division.(b) Eligible organization means a nonprofit organization, as described in Section 501(c)(3) of the Internal Revenue Code, that provides job training and workforce services, including, but not limited to, occupational skills training, on-the-job training, workplace training and cooperative education programs, skills upgrade and retraining, entrepreneurial training, job readiness training, adult education, and literacy activities combined with training, and customized training.(c) Participant means an individual with employment barriers, as defined in subdivision (j) of Section 14005, who qualifies for participation in the program.(d) Program means the California Workforce Pay for Success Program established pursuant to this division.(e) (1) Workforce pay for success contract, also known as a social innovation financing contract or contract, means a contractual agreement, which meets the criteria set forth in paragraphs (2) and (3), between government agencies, service providers, or other intermediaries in which government agencies agree to pay commensurate with successful programmatic outcomes achieved by the service provider.(2) For purposes of paragraph (1), a workforce pay for success contract is a contract that includes a set of innovative outcomes-based financing and funding tools that directly and measurably improve lives by driving resources toward results.(3) For purposes of paragraph (2), innovative outcomes-based financing and funding tools includes all of the following elements:(A) Clearly-defined outcomes.(B) Data-driven decisionmaking.(C) Outcomes-based payment.(D) Strong governance and accountability. (f) Workforce Pay for Success Program Fund means the fund established pursuant to Section 14545.14542. (a) On and after January 1, 2024, and contingent upon an appropriation by the Legislature in the annual Budget Act or another statute, the Workforce Pay for Success Program is hereby established to assist workers facing economic, social, and structural barriers to employment and career advancement.(b) The program shall enter into workforce pay for success contracts with eligible organizations that serve qualified participants.(c) The board shall establish a selection process for the program and solicit proposals from eligible organizations. (d) In selecting recipients, the board shall consider the following, which each applicant shall provide in a format prescribed by the board:(1) A description of the proposed social program.(2) A description of the eligible organizations experience in providing the proposed social program.(3) A description of the financial stability of the organization.(4) An identification of each component of the social program to be provided.(5) A description of the manner in which the social program will be provided.(6) The proposed quantifiable results upon which success of the social program will be measured.(7) An estimated budget for service delivery under the contract.(8) An overview of all potential parties to the proposed contract, and key supporters.(9) A description of the ways in which the proposal plans to reduce outcome disparities for priority populations, including racial and ethnic minorities. (e) Each contract shall include all of the following:(1) A requirement that the payment be conditioned on specific outcomes based upon defined performance targets.(2) An objective process to determine whether performance targets have been achieved. This process shall include defined performance metrics and a monitoring plan.(3) A calculation of the amount and timing of payments that would be earned during each year of the agreement if performance targets are achieved.(4) A determination by the board that the contract is likely to result in significant benefits for program participants.(5) A clear description of the recruitment and selection process, as applicable, for participants in the program. 14543. (a) The Workforce Pay For Success Program Board is hereby established in the Labor and Workforce Development Agency.(b) (1) The board shall consist of the following members:(A) Two members from the labor sector.(B) Two members from the business sector.(C) Two members from state and local government.(D) One member from a nonprofit organization.(E) One ex-officio executive director who reports directly to the Secretary of Labor and Workforce Development.(2) The Governor shall appoint the members of the board from the labor sector, from state and local government, and the ex-officio executive director, subject to the approval of the Senate. The Speaker of the Assembly and the Senate Rules Committee shall jointly appoint the members from the business sector and a nonprofit organization.(c) The appointments shall be at the will of each appointing power and each member of the board shall serve for a term of four years except that all terms shall end on the date this section becomes inoperative. All terms that end prior to the date that this section becomes inoperative shall end on January 1. Vacancies occurring prior to the expiration of the term shall be filled by appointment for the unexpired term. A member shall not serve more than two consecutive terms. (d) Each member of the board shall receive one hundred dollars ($100) for each day of their actual attendance at meetings of the board and other official business of the board, in addition to their actual necessary traveling expenses incurred in the performance of their duty as a member.(e) The boards purpose shall be to administer the program, including allocating funds in a manner that creates job opportunities for participants with employers that provide high quality-jobs, opportunities for economic mobility and career advancement, and promote wealth and asset building for program participants.14544. The Labor and Workforce Development Agency or its designated division shall convene a workgroup to advise the board on program design, including, but not limited to, the following elements: service provider eligibility, participant eligibility, collection of program data on services provided, demographics of individuals and target populations served, labor market outcomes participants, performance-based funding of services and claw back mechanisms, fund sustainability mechanisms, including possible employer match and pay-it-forward elements for successful participants, program evaluation, outreach, and awareness.14545. Upon appropriation of funds by the Legislature, the Workforce Pay for Success Program Fund is hereby created as a special fund in the State Treasury, separate and apart from all other public money or funds of the state, for the purposes of this division. The moneys and assets of this fund shall be held by the board and administered exclusively for the purposes of this division. 14546. On or before January 1, 2026, and subject to appropriation of funds for purposes of this division, the board shall submit a report to the Department of Finance and the Legislature, in compliance with Section 9795, regarding the implementation the program pursuant to this division. The report shall include, but is not limited to, all of the following:(a) An evaluation of the program as compared to other similar outcomes-based programs.(b) An evaluation of the overall success achieved through funds distributed under the program.(c) Detailed information about the quantity, monetary value, geographic distribution, and categories of funds distributed under the program.(d) Detailed information about the sources and amounts of funds appropriated or granted to the program.(e) Detailed information about any barriers encountered under the program.(f) Any other information necessary or convenient to evaluate the program.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:(a) California has a vibrant economy, which ranks as the fourth largest in the world.(b) Yet, it has one of the highest levels of income inequality in the county.(c) The unemployment rate in California historically has exceeded the rate for the nation as a whole.(d) Nearly 800,000 Californians are unemployed and a large number of Californians are underemployed. (e) Despite increasing rates of higher education following the Great Recession, social mobility has stalled.(f) The Future of Work Commission found one of Californias main tasks is to build jobs for the future.(g) The commission further stated that a critical challenge that lies ahead is to ensure that displaced workers from shrinking occupations are retrained with the appropriate skills and matched to growing occupations. Many workers who need to switch employers or change occupations will need to be connected to training opportunities.(h) California has an untapped resource of workers from underserved populations, including refugees and immigrants who could help fill the shortages that currently exist in certain industries.(i) However, on both sides of the political spectrum, there is skepticism about the effectiveness of many job training programs.(j) Therefore, it is critical to support job training programs delivering the best results.(k) It is also critical to continue supporting efforts that measure the effectiveness of job training programs in order to make continual improvements to those programs.(l) This is crucial when, for example, a global pandemic hits; or, less dramatically, when a recession or a major policy change occurs.(m) Now is the time for California to support programs that effectively pay for workforce success, by creating an innovative mechanism for programs delivering the best results, while continuing to support efforts to measure and continually improve all programs.(n) In order to achieve this goal, it is necessary to engage community-based organizations that have a proven track record of working with the unemployed and underemployed in partnership with government that can respond quickly to trends in the economy, including the predicted downturn.(o) Thus, it is the intent of the Legislature to create an effective framework for social investment partnerships in this state through the enactment of the California Workforce Pay for Success Act.
SECTION 1. The Legislature finds and declares all of the following:(a) California has a vibrant economy, which ranks as the fourth largest in the world.(b) Yet, it has one of the highest levels of income inequality in the county.(c) The unemployment rate in California historically has exceeded the rate for the nation as a whole.(d) Nearly 800,000 Californians are unemployed and a large number of Californians are underemployed. (e) Despite increasing rates of higher education following the Great Recession, social mobility has stalled.(f) The Future of Work Commission found one of Californias main tasks is to build jobs for the future.(g) The commission further stated that a critical challenge that lies ahead is to ensure that displaced workers from shrinking occupations are retrained with the appropriate skills and matched to growing occupations. Many workers who need to switch employers or change occupations will need to be connected to training opportunities.(h) California has an untapped resource of workers from underserved populations, including refugees and immigrants who could help fill the shortages that currently exist in certain industries.(i) However, on both sides of the political spectrum, there is skepticism about the effectiveness of many job training programs.(j) Therefore, it is critical to support job training programs delivering the best results.(k) It is also critical to continue supporting efforts that measure the effectiveness of job training programs in order to make continual improvements to those programs.(l) This is crucial when, for example, a global pandemic hits; or, less dramatically, when a recession or a major policy change occurs.(m) Now is the time for California to support programs that effectively pay for workforce success, by creating an innovative mechanism for programs delivering the best results, while continuing to support efforts to measure and continually improve all programs.(n) In order to achieve this goal, it is necessary to engage community-based organizations that have a proven track record of working with the unemployed and underemployed in partnership with government that can respond quickly to trends in the economy, including the predicted downturn.(o) Thus, it is the intent of the Legislature to create an effective framework for social investment partnerships in this state through the enactment of the California Workforce Pay for Success Act.
SECTION 1. The Legislature finds and declares all of the following:
### SECTION 1.
(a) California has a vibrant economy, which ranks as the fourth largest in the world.
(b) Yet, it has one of the highest levels of income inequality in the county.
(c) The unemployment rate in California historically has exceeded the rate for the nation as a whole.
(d) Nearly 800,000 Californians are unemployed and a large number of Californians are underemployed.
(e) Despite increasing rates of higher education following the Great Recession, social mobility has stalled.
(f) The Future of Work Commission found one of Californias main tasks is to build jobs for the future.
(g) The commission further stated that a critical challenge that lies ahead is to ensure that displaced workers from shrinking occupations are retrained with the appropriate skills and matched to growing occupations. Many workers who need to switch employers or change occupations will need to be connected to training opportunities.
(h) California has an untapped resource of workers from underserved populations, including refugees and immigrants who could help fill the shortages that currently exist in certain industries.
(i) However, on both sides of the political spectrum, there is skepticism about the effectiveness of many job training programs.
(j) Therefore, it is critical to support job training programs delivering the best results.
(k) It is also critical to continue supporting efforts that measure the effectiveness of job training programs in order to make continual improvements to those programs.
(l) This is crucial when, for example, a global pandemic hits; or, less dramatically, when a recession or a major policy change occurs.
(m) Now is the time for California to support programs that effectively pay for workforce success, by creating an innovative mechanism for programs delivering the best results, while continuing to support efforts to measure and continually improve all programs.
(n) In order to achieve this goal, it is necessary to engage community-based organizations that have a proven track record of working with the unemployed and underemployed in partnership with government that can respond quickly to trends in the economy, including the predicted downturn.
(o) Thus, it is the intent of the Legislature to create an effective framework for social investment partnerships in this state through the enactment of the California Workforce Pay for Success Act.
SEC. 2. Division 7.5 (commencing with Section 14540) is added to the Unemployment Insurance Code, to read:DIVISION 7.5. California Workforce Pay for Success Act14540. This division shall be known, and may be cited, as the California Workforce Pay for Success Act.14541. For purposes of this division, the following definitions apply: (a) Board means the Workforce Pay for Success Program Board established pursuant to this division.(b) Eligible organization means a nonprofit organization, as described in Section 501(c)(3) of the Internal Revenue Code, that provides job training and workforce services, including, but not limited to, occupational skills training, on-the-job training, workplace training and cooperative education programs, skills upgrade and retraining, entrepreneurial training, job readiness training, adult education, and literacy activities combined with training, and customized training.(c) Participant means an individual with employment barriers, as defined in subdivision (j) of Section 14005, who qualifies for participation in the program.(d) Program means the California Workforce Pay for Success Program established pursuant to this division.(e) (1) Workforce pay for success contract, also known as a social innovation financing contract or contract, means a contractual agreement, which meets the criteria set forth in paragraphs (2) and (3), between government agencies, service providers, or other intermediaries in which government agencies agree to pay commensurate with successful programmatic outcomes achieved by the service provider.(2) For purposes of paragraph (1), a workforce pay for success contract is a contract that includes a set of innovative outcomes-based financing and funding tools that directly and measurably improve lives by driving resources toward results.(3) For purposes of paragraph (2), innovative outcomes-based financing and funding tools includes all of the following elements:(A) Clearly-defined outcomes.(B) Data-driven decisionmaking.(C) Outcomes-based payment.(D) Strong governance and accountability. (f) Workforce Pay for Success Program Fund means the fund established pursuant to Section 14545.14542. (a) On and after January 1, 2024, and contingent upon an appropriation by the Legislature in the annual Budget Act or another statute, the Workforce Pay for Success Program is hereby established to assist workers facing economic, social, and structural barriers to employment and career advancement.(b) The program shall enter into workforce pay for success contracts with eligible organizations that serve qualified participants.(c) The board shall establish a selection process for the program and solicit proposals from eligible organizations. (d) In selecting recipients, the board shall consider the following, which each applicant shall provide in a format prescribed by the board:(1) A description of the proposed social program.(2) A description of the eligible organizations experience in providing the proposed social program.(3) A description of the financial stability of the organization.(4) An identification of each component of the social program to be provided.(5) A description of the manner in which the social program will be provided.(6) The proposed quantifiable results upon which success of the social program will be measured.(7) An estimated budget for service delivery under the contract.(8) An overview of all potential parties to the proposed contract, and key supporters.(9) A description of the ways in which the proposal plans to reduce outcome disparities for priority populations, including racial and ethnic minorities. (e) Each contract shall include all of the following:(1) A requirement that the payment be conditioned on specific outcomes based upon defined performance targets.(2) An objective process to determine whether performance targets have been achieved. This process shall include defined performance metrics and a monitoring plan.(3) A calculation of the amount and timing of payments that would be earned during each year of the agreement if performance targets are achieved.(4) A determination by the board that the contract is likely to result in significant benefits for program participants.(5) A clear description of the recruitment and selection process, as applicable, for participants in the program. 14543. (a) The Workforce Pay For Success Program Board is hereby established in the Labor and Workforce Development Agency.(b) (1) The board shall consist of the following members:(A) Two members from the labor sector.(B) Two members from the business sector.(C) Two members from state and local government.(D) One member from a nonprofit organization.(E) One ex-officio executive director who reports directly to the Secretary of Labor and Workforce Development.(2) The Governor shall appoint the members of the board from the labor sector, from state and local government, and the ex-officio executive director, subject to the approval of the Senate. The Speaker of the Assembly and the Senate Rules Committee shall jointly appoint the members from the business sector and a nonprofit organization.(c) The appointments shall be at the will of each appointing power and each member of the board shall serve for a term of four years except that all terms shall end on the date this section becomes inoperative. All terms that end prior to the date that this section becomes inoperative shall end on January 1. Vacancies occurring prior to the expiration of the term shall be filled by appointment for the unexpired term. A member shall not serve more than two consecutive terms. (d) Each member of the board shall receive one hundred dollars ($100) for each day of their actual attendance at meetings of the board and other official business of the board, in addition to their actual necessary traveling expenses incurred in the performance of their duty as a member.(e) The boards purpose shall be to administer the program, including allocating funds in a manner that creates job opportunities for participants with employers that provide high quality-jobs, opportunities for economic mobility and career advancement, and promote wealth and asset building for program participants.14544. The Labor and Workforce Development Agency or its designated division shall convene a workgroup to advise the board on program design, including, but not limited to, the following elements: service provider eligibility, participant eligibility, collection of program data on services provided, demographics of individuals and target populations served, labor market outcomes participants, performance-based funding of services and claw back mechanisms, fund sustainability mechanisms, including possible employer match and pay-it-forward elements for successful participants, program evaluation, outreach, and awareness.14545. Upon appropriation of funds by the Legislature, the Workforce Pay for Success Program Fund is hereby created as a special fund in the State Treasury, separate and apart from all other public money or funds of the state, for the purposes of this division. The moneys and assets of this fund shall be held by the board and administered exclusively for the purposes of this division. 14546. On or before January 1, 2026, and subject to appropriation of funds for purposes of this division, the board shall submit a report to the Department of Finance and the Legislature, in compliance with Section 9795, regarding the implementation the program pursuant to this division. The report shall include, but is not limited to, all of the following:(a) An evaluation of the program as compared to other similar outcomes-based programs.(b) An evaluation of the overall success achieved through funds distributed under the program.(c) Detailed information about the quantity, monetary value, geographic distribution, and categories of funds distributed under the program.(d) Detailed information about the sources and amounts of funds appropriated or granted to the program.(e) Detailed information about any barriers encountered under the program.(f) Any other information necessary or convenient to evaluate the program.
SEC. 2. Division 7.5 (commencing with Section 14540) is added to the Unemployment Insurance Code, to read:
### SEC. 2.
DIVISION 7.5. California Workforce Pay for Success Act14540. This division shall be known, and may be cited, as the California Workforce Pay for Success Act.14541. For purposes of this division, the following definitions apply: (a) Board means the Workforce Pay for Success Program Board established pursuant to this division.(b) Eligible organization means a nonprofit organization, as described in Section 501(c)(3) of the Internal Revenue Code, that provides job training and workforce services, including, but not limited to, occupational skills training, on-the-job training, workplace training and cooperative education programs, skills upgrade and retraining, entrepreneurial training, job readiness training, adult education, and literacy activities combined with training, and customized training.(c) Participant means an individual with employment barriers, as defined in subdivision (j) of Section 14005, who qualifies for participation in the program.(d) Program means the California Workforce Pay for Success Program established pursuant to this division.(e) (1) Workforce pay for success contract, also known as a social innovation financing contract or contract, means a contractual agreement, which meets the criteria set forth in paragraphs (2) and (3), between government agencies, service providers, or other intermediaries in which government agencies agree to pay commensurate with successful programmatic outcomes achieved by the service provider.(2) For purposes of paragraph (1), a workforce pay for success contract is a contract that includes a set of innovative outcomes-based financing and funding tools that directly and measurably improve lives by driving resources toward results.(3) For purposes of paragraph (2), innovative outcomes-based financing and funding tools includes all of the following elements:(A) Clearly-defined outcomes.(B) Data-driven decisionmaking.(C) Outcomes-based payment.(D) Strong governance and accountability. (f) Workforce Pay for Success Program Fund means the fund established pursuant to Section 14545.14542. (a) On and after January 1, 2024, and contingent upon an appropriation by the Legislature in the annual Budget Act or another statute, the Workforce Pay for Success Program is hereby established to assist workers facing economic, social, and structural barriers to employment and career advancement.(b) The program shall enter into workforce pay for success contracts with eligible organizations that serve qualified participants.(c) The board shall establish a selection process for the program and solicit proposals from eligible organizations. (d) In selecting recipients, the board shall consider the following, which each applicant shall provide in a format prescribed by the board:(1) A description of the proposed social program.(2) A description of the eligible organizations experience in providing the proposed social program.(3) A description of the financial stability of the organization.(4) An identification of each component of the social program to be provided.(5) A description of the manner in which the social program will be provided.(6) The proposed quantifiable results upon which success of the social program will be measured.(7) An estimated budget for service delivery under the contract.(8) An overview of all potential parties to the proposed contract, and key supporters.(9) A description of the ways in which the proposal plans to reduce outcome disparities for priority populations, including racial and ethnic minorities. (e) Each contract shall include all of the following:(1) A requirement that the payment be conditioned on specific outcomes based upon defined performance targets.(2) An objective process to determine whether performance targets have been achieved. This process shall include defined performance metrics and a monitoring plan.(3) A calculation of the amount and timing of payments that would be earned during each year of the agreement if performance targets are achieved.(4) A determination by the board that the contract is likely to result in significant benefits for program participants.(5) A clear description of the recruitment and selection process, as applicable, for participants in the program. 14543. (a) The Workforce Pay For Success Program Board is hereby established in the Labor and Workforce Development Agency.(b) (1) The board shall consist of the following members:(A) Two members from the labor sector.(B) Two members from the business sector.(C) Two members from state and local government.(D) One member from a nonprofit organization.(E) One ex-officio executive director who reports directly to the Secretary of Labor and Workforce Development.(2) The Governor shall appoint the members of the board from the labor sector, from state and local government, and the ex-officio executive director, subject to the approval of the Senate. The Speaker of the Assembly and the Senate Rules Committee shall jointly appoint the members from the business sector and a nonprofit organization.(c) The appointments shall be at the will of each appointing power and each member of the board shall serve for a term of four years except that all terms shall end on the date this section becomes inoperative. All terms that end prior to the date that this section becomes inoperative shall end on January 1. Vacancies occurring prior to the expiration of the term shall be filled by appointment for the unexpired term. A member shall not serve more than two consecutive terms. (d) Each member of the board shall receive one hundred dollars ($100) for each day of their actual attendance at meetings of the board and other official business of the board, in addition to their actual necessary traveling expenses incurred in the performance of their duty as a member.(e) The boards purpose shall be to administer the program, including allocating funds in a manner that creates job opportunities for participants with employers that provide high quality-jobs, opportunities for economic mobility and career advancement, and promote wealth and asset building for program participants.14544. The Labor and Workforce Development Agency or its designated division shall convene a workgroup to advise the board on program design, including, but not limited to, the following elements: service provider eligibility, participant eligibility, collection of program data on services provided, demographics of individuals and target populations served, labor market outcomes participants, performance-based funding of services and claw back mechanisms, fund sustainability mechanisms, including possible employer match and pay-it-forward elements for successful participants, program evaluation, outreach, and awareness.14545. Upon appropriation of funds by the Legislature, the Workforce Pay for Success Program Fund is hereby created as a special fund in the State Treasury, separate and apart from all other public money or funds of the state, for the purposes of this division. The moneys and assets of this fund shall be held by the board and administered exclusively for the purposes of this division. 14546. On or before January 1, 2026, and subject to appropriation of funds for purposes of this division, the board shall submit a report to the Department of Finance and the Legislature, in compliance with Section 9795, regarding the implementation the program pursuant to this division. The report shall include, but is not limited to, all of the following:(a) An evaluation of the program as compared to other similar outcomes-based programs.(b) An evaluation of the overall success achieved through funds distributed under the program.(c) Detailed information about the quantity, monetary value, geographic distribution, and categories of funds distributed under the program.(d) Detailed information about the sources and amounts of funds appropriated or granted to the program.(e) Detailed information about any barriers encountered under the program.(f) Any other information necessary or convenient to evaluate the program.
DIVISION 7.5. California Workforce Pay for Success Act14540. This division shall be known, and may be cited, as the California Workforce Pay for Success Act.14541. For purposes of this division, the following definitions apply: (a) Board means the Workforce Pay for Success Program Board established pursuant to this division.(b) Eligible organization means a nonprofit organization, as described in Section 501(c)(3) of the Internal Revenue Code, that provides job training and workforce services, including, but not limited to, occupational skills training, on-the-job training, workplace training and cooperative education programs, skills upgrade and retraining, entrepreneurial training, job readiness training, adult education, and literacy activities combined with training, and customized training.(c) Participant means an individual with employment barriers, as defined in subdivision (j) of Section 14005, who qualifies for participation in the program.(d) Program means the California Workforce Pay for Success Program established pursuant to this division.(e) (1) Workforce pay for success contract, also known as a social innovation financing contract or contract, means a contractual agreement, which meets the criteria set forth in paragraphs (2) and (3), between government agencies, service providers, or other intermediaries in which government agencies agree to pay commensurate with successful programmatic outcomes achieved by the service provider.(2) For purposes of paragraph (1), a workforce pay for success contract is a contract that includes a set of innovative outcomes-based financing and funding tools that directly and measurably improve lives by driving resources toward results.(3) For purposes of paragraph (2), innovative outcomes-based financing and funding tools includes all of the following elements:(A) Clearly-defined outcomes.(B) Data-driven decisionmaking.(C) Outcomes-based payment.(D) Strong governance and accountability. (f) Workforce Pay for Success Program Fund means the fund established pursuant to Section 14545.14542. (a) On and after January 1, 2024, and contingent upon an appropriation by the Legislature in the annual Budget Act or another statute, the Workforce Pay for Success Program is hereby established to assist workers facing economic, social, and structural barriers to employment and career advancement.(b) The program shall enter into workforce pay for success contracts with eligible organizations that serve qualified participants.(c) The board shall establish a selection process for the program and solicit proposals from eligible organizations. (d) In selecting recipients, the board shall consider the following, which each applicant shall provide in a format prescribed by the board:(1) A description of the proposed social program.(2) A description of the eligible organizations experience in providing the proposed social program.(3) A description of the financial stability of the organization.(4) An identification of each component of the social program to be provided.(5) A description of the manner in which the social program will be provided.(6) The proposed quantifiable results upon which success of the social program will be measured.(7) An estimated budget for service delivery under the contract.(8) An overview of all potential parties to the proposed contract, and key supporters.(9) A description of the ways in which the proposal plans to reduce outcome disparities for priority populations, including racial and ethnic minorities. (e) Each contract shall include all of the following:(1) A requirement that the payment be conditioned on specific outcomes based upon defined performance targets.(2) An objective process to determine whether performance targets have been achieved. This process shall include defined performance metrics and a monitoring plan.(3) A calculation of the amount and timing of payments that would be earned during each year of the agreement if performance targets are achieved.(4) A determination by the board that the contract is likely to result in significant benefits for program participants.(5) A clear description of the recruitment and selection process, as applicable, for participants in the program. 14543. (a) The Workforce Pay For Success Program Board is hereby established in the Labor and Workforce Development Agency.(b) (1) The board shall consist of the following members:(A) Two members from the labor sector.(B) Two members from the business sector.(C) Two members from state and local government.(D) One member from a nonprofit organization.(E) One ex-officio executive director who reports directly to the Secretary of Labor and Workforce Development.(2) The Governor shall appoint the members of the board from the labor sector, from state and local government, and the ex-officio executive director, subject to the approval of the Senate. The Speaker of the Assembly and the Senate Rules Committee shall jointly appoint the members from the business sector and a nonprofit organization.(c) The appointments shall be at the will of each appointing power and each member of the board shall serve for a term of four years except that all terms shall end on the date this section becomes inoperative. All terms that end prior to the date that this section becomes inoperative shall end on January 1. Vacancies occurring prior to the expiration of the term shall be filled by appointment for the unexpired term. A member shall not serve more than two consecutive terms. (d) Each member of the board shall receive one hundred dollars ($100) for each day of their actual attendance at meetings of the board and other official business of the board, in addition to their actual necessary traveling expenses incurred in the performance of their duty as a member.(e) The boards purpose shall be to administer the program, including allocating funds in a manner that creates job opportunities for participants with employers that provide high quality-jobs, opportunities for economic mobility and career advancement, and promote wealth and asset building for program participants.14544. The Labor and Workforce Development Agency or its designated division shall convene a workgroup to advise the board on program design, including, but not limited to, the following elements: service provider eligibility, participant eligibility, collection of program data on services provided, demographics of individuals and target populations served, labor market outcomes participants, performance-based funding of services and claw back mechanisms, fund sustainability mechanisms, including possible employer match and pay-it-forward elements for successful participants, program evaluation, outreach, and awareness.14545. Upon appropriation of funds by the Legislature, the Workforce Pay for Success Program Fund is hereby created as a special fund in the State Treasury, separate and apart from all other public money or funds of the state, for the purposes of this division. The moneys and assets of this fund shall be held by the board and administered exclusively for the purposes of this division. 14546. On or before January 1, 2026, and subject to appropriation of funds for purposes of this division, the board shall submit a report to the Department of Finance and the Legislature, in compliance with Section 9795, regarding the implementation the program pursuant to this division. The report shall include, but is not limited to, all of the following:(a) An evaluation of the program as compared to other similar outcomes-based programs.(b) An evaluation of the overall success achieved through funds distributed under the program.(c) Detailed information about the quantity, monetary value, geographic distribution, and categories of funds distributed under the program.(d) Detailed information about the sources and amounts of funds appropriated or granted to the program.(e) Detailed information about any barriers encountered under the program.(f) Any other information necessary or convenient to evaluate the program.
DIVISION 7.5. California Workforce Pay for Success Act
DIVISION 7.5. California Workforce Pay for Success Act
14540. This division shall be known, and may be cited, as the California Workforce Pay for Success Act.
14540. This division shall be known, and may be cited, as the California Workforce Pay for Success Act.
14541. For purposes of this division, the following definitions apply: (a) Board means the Workforce Pay for Success Program Board established pursuant to this division.(b) Eligible organization means a nonprofit organization, as described in Section 501(c)(3) of the Internal Revenue Code, that provides job training and workforce services, including, but not limited to, occupational skills training, on-the-job training, workplace training and cooperative education programs, skills upgrade and retraining, entrepreneurial training, job readiness training, adult education, and literacy activities combined with training, and customized training.(c) Participant means an individual with employment barriers, as defined in subdivision (j) of Section 14005, who qualifies for participation in the program.(d) Program means the California Workforce Pay for Success Program established pursuant to this division.(e) (1) Workforce pay for success contract, also known as a social innovation financing contract or contract, means a contractual agreement, which meets the criteria set forth in paragraphs (2) and (3), between government agencies, service providers, or other intermediaries in which government agencies agree to pay commensurate with successful programmatic outcomes achieved by the service provider.(2) For purposes of paragraph (1), a workforce pay for success contract is a contract that includes a set of innovative outcomes-based financing and funding tools that directly and measurably improve lives by driving resources toward results.(3) For purposes of paragraph (2), innovative outcomes-based financing and funding tools includes all of the following elements:(A) Clearly-defined outcomes.(B) Data-driven decisionmaking.(C) Outcomes-based payment.(D) Strong governance and accountability. (f) Workforce Pay for Success Program Fund means the fund established pursuant to Section 14545.
14541. For purposes of this division, the following definitions apply:
(a) Board means the Workforce Pay for Success Program Board established pursuant to this division.
(b) Eligible organization means a nonprofit organization, as described in Section 501(c)(3) of the Internal Revenue Code, that provides job training and workforce services, including, but not limited to, occupational skills training, on-the-job training, workplace training and cooperative education programs, skills upgrade and retraining, entrepreneurial training, job readiness training, adult education, and literacy activities combined with training, and customized training.
(c) Participant means an individual with employment barriers, as defined in subdivision (j) of Section 14005, who qualifies for participation in the program.
(d) Program means the California Workforce Pay for Success Program established pursuant to this division.
(e) (1) Workforce pay for success contract, also known as a social innovation financing contract or contract, means a contractual agreement, which meets the criteria set forth in paragraphs (2) and (3), between government agencies, service providers, or other intermediaries in which government agencies agree to pay commensurate with successful programmatic outcomes achieved by the service provider.
(2) For purposes of paragraph (1), a workforce pay for success contract is a contract that includes a set of innovative outcomes-based financing and funding tools that directly and measurably improve lives by driving resources toward results.
(3) For purposes of paragraph (2), innovative outcomes-based financing and funding tools includes all of the following elements:
(A) Clearly-defined outcomes.
(B) Data-driven decisionmaking.
(C) Outcomes-based payment.
(D) Strong governance and accountability.
(f) Workforce Pay for Success Program Fund means the fund established pursuant to Section 14545.
14542. (a) On and after January 1, 2024, and contingent upon an appropriation by the Legislature in the annual Budget Act or another statute, the Workforce Pay for Success Program is hereby established to assist workers facing economic, social, and structural barriers to employment and career advancement.(b) The program shall enter into workforce pay for success contracts with eligible organizations that serve qualified participants.(c) The board shall establish a selection process for the program and solicit proposals from eligible organizations. (d) In selecting recipients, the board shall consider the following, which each applicant shall provide in a format prescribed by the board:(1) A description of the proposed social program.(2) A description of the eligible organizations experience in providing the proposed social program.(3) A description of the financial stability of the organization.(4) An identification of each component of the social program to be provided.(5) A description of the manner in which the social program will be provided.(6) The proposed quantifiable results upon which success of the social program will be measured.(7) An estimated budget for service delivery under the contract.(8) An overview of all potential parties to the proposed contract, and key supporters.(9) A description of the ways in which the proposal plans to reduce outcome disparities for priority populations, including racial and ethnic minorities. (e) Each contract shall include all of the following:(1) A requirement that the payment be conditioned on specific outcomes based upon defined performance targets.(2) An objective process to determine whether performance targets have been achieved. This process shall include defined performance metrics and a monitoring plan.(3) A calculation of the amount and timing of payments that would be earned during each year of the agreement if performance targets are achieved.(4) A determination by the board that the contract is likely to result in significant benefits for program participants.(5) A clear description of the recruitment and selection process, as applicable, for participants in the program.
14542. (a) On and after January 1, 2024, and contingent upon an appropriation by the Legislature in the annual Budget Act or another statute, the Workforce Pay for Success Program is hereby established to assist workers facing economic, social, and structural barriers to employment and career advancement.
(b) The program shall enter into workforce pay for success contracts with eligible organizations that serve qualified participants.
(c) The board shall establish a selection process for the program and solicit proposals from eligible organizations.
(d) In selecting recipients, the board shall consider the following, which each applicant shall provide in a format prescribed by the board:
(1) A description of the proposed social program.
(2) A description of the eligible organizations experience in providing the proposed social program.
(3) A description of the financial stability of the organization.
(4) An identification of each component of the social program to be provided.
(5) A description of the manner in which the social program will be provided.
(6) The proposed quantifiable results upon which success of the social program will be measured.
(7) An estimated budget for service delivery under the contract.
(8) An overview of all potential parties to the proposed contract, and key supporters.
(9) A description of the ways in which the proposal plans to reduce outcome disparities for priority populations, including racial and ethnic minorities.
(e) Each contract shall include all of the following:
(1) A requirement that the payment be conditioned on specific outcomes based upon defined performance targets.
(2) An objective process to determine whether performance targets have been achieved. This process shall include defined performance metrics and a monitoring plan.
(3) A calculation of the amount and timing of payments that would be earned during each year of the agreement if performance targets are achieved.
(4) A determination by the board that the contract is likely to result in significant benefits for program participants.
(5) A clear description of the recruitment and selection process, as applicable, for participants in the program.
14543. (a) The Workforce Pay For Success Program Board is hereby established in the Labor and Workforce Development Agency.(b) (1) The board shall consist of the following members:(A) Two members from the labor sector.(B) Two members from the business sector.(C) Two members from state and local government.(D) One member from a nonprofit organization.(E) One ex-officio executive director who reports directly to the Secretary of Labor and Workforce Development.(2) The Governor shall appoint the members of the board from the labor sector, from state and local government, and the ex-officio executive director, subject to the approval of the Senate. The Speaker of the Assembly and the Senate Rules Committee shall jointly appoint the members from the business sector and a nonprofit organization.(c) The appointments shall be at the will of each appointing power and each member of the board shall serve for a term of four years except that all terms shall end on the date this section becomes inoperative. All terms that end prior to the date that this section becomes inoperative shall end on January 1. Vacancies occurring prior to the expiration of the term shall be filled by appointment for the unexpired term. A member shall not serve more than two consecutive terms. (d) Each member of the board shall receive one hundred dollars ($100) for each day of their actual attendance at meetings of the board and other official business of the board, in addition to their actual necessary traveling expenses incurred in the performance of their duty as a member.(e) The boards purpose shall be to administer the program, including allocating funds in a manner that creates job opportunities for participants with employers that provide high quality-jobs, opportunities for economic mobility and career advancement, and promote wealth and asset building for program participants.
14543. (a) The Workforce Pay For Success Program Board is hereby established in the Labor and Workforce Development Agency.
(b) (1) The board shall consist of the following members:
(A) Two members from the labor sector.
(B) Two members from the business sector.
(C) Two members from state and local government.
(D) One member from a nonprofit organization.
(E) One ex-officio executive director who reports directly to the Secretary of Labor and Workforce Development.
(2) The Governor shall appoint the members of the board from the labor sector, from state and local government, and the ex-officio executive director, subject to the approval of the Senate. The Speaker of the Assembly and the Senate Rules Committee shall jointly appoint the members from the business sector and a nonprofit organization.
(c) The appointments shall be at the will of each appointing power and each member of the board shall serve for a term of four years except that all terms shall end on the date this section becomes inoperative. All terms that end prior to the date that this section becomes inoperative shall end on January 1. Vacancies occurring prior to the expiration of the term shall be filled by appointment for the unexpired term. A member shall not serve more than two consecutive terms.
(d) Each member of the board shall receive one hundred dollars ($100) for each day of their actual attendance at meetings of the board and other official business of the board, in addition to their actual necessary traveling expenses incurred in the performance of their duty as a member.
(e) The boards purpose shall be to administer the program, including allocating funds in a manner that creates job opportunities for participants with employers that provide high quality-jobs, opportunities for economic mobility and career advancement, and promote wealth and asset building for program participants.
14544. The Labor and Workforce Development Agency or its designated division shall convene a workgroup to advise the board on program design, including, but not limited to, the following elements: service provider eligibility, participant eligibility, collection of program data on services provided, demographics of individuals and target populations served, labor market outcomes participants, performance-based funding of services and claw back mechanisms, fund sustainability mechanisms, including possible employer match and pay-it-forward elements for successful participants, program evaluation, outreach, and awareness.
14544. The Labor and Workforce Development Agency or its designated division shall convene a workgroup to advise the board on program design, including, but not limited to, the following elements: service provider eligibility, participant eligibility, collection of program data on services provided, demographics of individuals and target populations served, labor market outcomes participants, performance-based funding of services and claw back mechanisms, fund sustainability mechanisms, including possible employer match and pay-it-forward elements for successful participants, program evaluation, outreach, and awareness.
14545. Upon appropriation of funds by the Legislature, the Workforce Pay for Success Program Fund is hereby created as a special fund in the State Treasury, separate and apart from all other public money or funds of the state, for the purposes of this division. The moneys and assets of this fund shall be held by the board and administered exclusively for the purposes of this division.
14545. Upon appropriation of funds by the Legislature, the Workforce Pay for Success Program Fund is hereby created as a special fund in the State Treasury, separate and apart from all other public money or funds of the state, for the purposes of this division. The moneys and assets of this fund shall be held by the board and administered exclusively for the purposes of this division.
14546. On or before January 1, 2026, and subject to appropriation of funds for purposes of this division, the board shall submit a report to the Department of Finance and the Legislature, in compliance with Section 9795, regarding the implementation the program pursuant to this division. The report shall include, but is not limited to, all of the following:(a) An evaluation of the program as compared to other similar outcomes-based programs.(b) An evaluation of the overall success achieved through funds distributed under the program.(c) Detailed information about the quantity, monetary value, geographic distribution, and categories of funds distributed under the program.(d) Detailed information about the sources and amounts of funds appropriated or granted to the program.(e) Detailed information about any barriers encountered under the program.(f) Any other information necessary or convenient to evaluate the program.
14546. On or before January 1, 2026, and subject to appropriation of funds for purposes of this division, the board shall submit a report to the Department of Finance and the Legislature, in compliance with Section 9795, regarding the implementation the program pursuant to this division. The report shall include, but is not limited to, all of the following:
(a) An evaluation of the program as compared to other similar outcomes-based programs.
(b) An evaluation of the overall success achieved through funds distributed under the program.
(c) Detailed information about the quantity, monetary value, geographic distribution, and categories of funds distributed under the program.
(d) Detailed information about the sources and amounts of funds appropriated or granted to the program.
(e) Detailed information about any barriers encountered under the program.
(f) Any other information necessary or convenient to evaluate the program.