House Bill No. 5001
Public Act No. 19-198
AN ACT REQUIRING A S TUDY OF WORKFORCE TR AINING
NEEDS IN THE STATE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 31-11hh of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2019):
As used in this section and sections 31-11ii and 31-11jj, as amended
by this act:
(1) "Administrative costs" means the costs paid or incurred by the
administrator, including, but not limited to, peer review costs,
professional fees, allocated staff costs and other out-of-pocket costs
attributable to the administration and operation of the Workforce
Training Authority Fund;
(2) "Administrator" means the [Department of] Labor
Commissioner;
(3) "Board" means the Workforce Training Authority established
pursuant to section 31-11ii, as amended by this act; and
(4) "Eligible recipient" means a [business] public or private entity [,
including, but not limited to, those businesses in the bioscience, House Bill No. 5001
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insurance, financial services, advanced manufacturing, digital media,
green technology and tourism industry sectors] seeking to develop a
workforce training program, either to grow an existing business or, in
the case of a public entity, as part of partnership with business entities
that have made a commitment to hire successful trainees from the
workforce training program funded by the authority created by section
31-11ii, as amended by this act.
Sec. 2. Section 31-11ii of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2019):
(a) There is established a Workforce Training Authority [that]
within the Labor Department whose purpose is to oversee the grant
program described in section 31-11jj, as amended by this act. The
Workforce Training Authority shall be composed of a board that:
(1) Until September 30, 2019, shall consist of the following members:
[(1)] (A) Four appointed by the Governor; [(2)] (B) one appointed by
the president pro tempore of the Senate; [(3)] (C) one appointed by the
Senate Republican president pro tempore; [(4)] (D) one appointed by
the speaker of the House of Representatives; [(5)] (E) one appointed by
the majority leader of the Senate; [(6)] (F) one appointed by the
majority leader of the House of Representatives; [(7)] (G) one
appointed by the minority leader of the Senate; [(8)] (H) one appointed
by the minority leader of the House of Representatives; [(9)] (I) the
Labor Commissioner, or the commissioner's designee, who shall serve
as the chairperson of the board; [(10)] (J) the Commissioner of [the
Department of] Economic and Commun ity Development, or the
commissioner's designee; [(11)] (K) the president of the Connecticut
State Colleges and Universities, or the president's designee; [(12)] (L)
the president of The University of Connecticut, or the president's
designee; and [(13)] (M) the Commissioner of Correction, or the
commissioner's designee. [Each legislatively appointed member shall
have skill, knowledge or experience in industries and sciences related House Bill No. 5001
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to insurance, financial services, bioscience, advance manufacturing,
digital media, green technology, and tourism. All initial appointments
to the board pursuant to this subsection shall be made not later than
October 1, 2017. Appointed members shall each serve a term that is
coterminous with the respective appointing authority. Each member
shall hold office until a successor is appointed. Any vacancy occurring
on the board, other than by expiration of term, shall be filled in the
same manner as the original appointment for the balance of the
unexpired term.] The term of any member appointed under this
subdivision shall terminate on September 30, 2019;
(2) On and after October 1, 2019, shall consist of the following
members: (A) Four appointed by the Governor, one of whom is a
representative of a community college, one of whom is a
representative of a state university, one of whom is a representative of
The University of Connecticut and one of whom is a representative of
the independent colleges; (B) two appointed by the president pro
tempore of the Senate, one of whom is a formerly incarcerated
individual or someone who helps formerly incarcerated individuals
find employment and one of whom is a representative of the
Connecticut AFL-CIO; (C) two appointed by the majority leader of the
Senate, one of whom is a representative of a workforce investment
board and one of whom is a representative of the Connecticut State
Building and Construction Trades Council; (D) two appointed by the
speaker of the House of Representatives, one of whom is a
representative of The University of Connecticut Health Center and one
of whom is a representative from a Connecticut affiliate of the National
Urban League or the National Association for the Advancement of
Colored People; (E) two appointed by the majority leader of the House
of Representatives, one of whom is a representative of the Connecticut
Center for Advanced Technology and one of whom is a representative
of a Connecticut chamber of the United States Hispanic Chamber of
Commerce; (F) two appointed by the minority leader of the Senate, one House Bill No. 5001
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of whom has skill, knowledge or expertise in the workforce needs of
the financial services industry and one of whom is a representative
from the Connecticut Business and Industry Association
Manufacturers Advisory Council; (G) two appointed by the minority
leader of the House of Representatives, one of whom is a
representative from the Connecticut Association of Public School
Superintendents and one of whom has skill, knowledge and expertise
in the workforce needs of the digital media industry; (H) the Labor
Commissioner, or the commissioner's designee, who shall serve as
chairperson of the board; (I) the Commissioner of Economic and
Community Development, or the commissioner's designee; (J) the
Commissioner of Correction, or the commissioner's designee; (K) the
superintendent of the Technical Education and Career System, or the
superintendent's designee; and (L) the Commissioner of Agriculture,
or the commissioner's designee.
(b) All initial appointments to the board pursuant to subdivision (2)
of subsection (a) of this section shall be made not later than October 1,
2019. Appointed members shall each serve a term that is coterminous
with the respective appointing authority. Each member shall hold
office until a successor is appointed. Any vacancy occurring on the
board, other than by expiration of term, shall be filled in the same
manner as the original appointment for the balance of the unexpired
term.
[(b)] (c) The chairperson shall call the first meeting of the board
appointed under subdivision (2) of subsection (a) of this section not
later than December 1, [2017] 2019. The board shall meet at such times
as the chairperson deems necessary.
[(c)] (d) No member of the board shall receive compensation for
such member's services.
[(d)] (e) A majority of the members of said board shall constitute a House Bill No. 5001
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quorum for the transaction of any business or the exercise of any
power of the board. The board may act by a majority of the members
present at any meeting at which a quorum is in attendance for the
transaction of any business or the exercise of any power of the board,
except as otherwise provided in this section.
[(e)] (f) Notwithstanding any provision of the general statutes, it
shall not constitute a conflict of interest for a trustee, director, partner,
officer, manager, shareholder, proprietor, counsel, public official acting
in his or her official capacity or employee of an eligible recipient, or
any individual with a financial interest in an eligible recipient, to serve
as a member of the board, provided such trustee, director, partner,
officer, manager, shareholder, proprietor, counsel, employee or
individual shall abstain from deliberation, action or vote by the board
concerning any matter relating to such eligible recipient, except such
public official acting in his or her official capacity shall be permitted to
engage in such deliberation.
[(f)] (g) The board may develop industry-specific advisory councils
to provide guidance on job market trends and develop connections
with the business community.
Sec. 3. Section 31-11jj of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2019):
(a) There is established the Workforce Training Authority Fund,
which shall be an account [in the Department of] within the Labor
Department. The following moneys shall be deposited in the fund: (1)
Any moneys received as part of a memorandum of understanding
with the Workforce Training Authority; (2) all private contributions,
gifts, grants, donations, bequests or devises received by the fund; and
(3) to the extent not otherwise prohibited by state or federal law, any
local, state or federal funds received by the fund. House Bill No. 5001
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(b) The Workforce Training Authority Fund shall be used by the
administrator: (1) To provide training assistance to eligible recipients
as may be approved by the Workforce Training Authority pursuant to
subsection (e) of this section, and (2) to pay or reimburse the
administrator for administrative costs pursuant to subsection [(c)] (h)
of this section. Such training assistance shall be awarded for the
purpose of: Developing and implementing training programs for the
recruitment of businesses to the state and the training or retraining of
persons in the state to achieve the workforce goals established by the
Connecticut Employment and Training Commission and the relevant
sections of the strategic master plan for higher education developed
pursuant to section 10a-11b. Training assistance shall target job growth
in the areas of construction, health care, early childhood education,
insurance, financial services, bioscience, advance manufacturing,
digital media, green technology, and tourism.
(c) All expenditures from the Workforce Training Authority Fund,
except for administrative costs reimbursed to the administrator
pursuant to subsection (h) of this section, shall be approved by the
board, provided the board may delegate to staff of the administrator
the approval of transactions not greater than one hundred thousand
dollars. Any such approval by the board shall be (1) specific to an
individual expenditure to be made; (2) for budgeted expenditures with
such variations as the board may authorize at the time of such budget
approval; or (3) for training assistance programs to be administered by
staff of the administrator, subject to limits, eligibility requirements and
other conditions established by the Workforce Training Authority at
the time of such program approval.
(d) The administrator shall provide any necessary staff, office space,
office systems and administrative support for the operation of the
Workforce Training Authority Fund in accordance with this section. In
acting as administrator of the fund, the Labor [Department] House Bill No. 5001
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Commissioner shall have and may exercise all of the powers set forth
in the general statutes, provided expenditures from the fund shall be
approved by the Workforce Training Authority pursuant to subsection
(c) of this section.
(e) The Workforce Training Authority shall establish an application
and approval process with guidelines and terms for the development
and implementation of training programs and training assistance
awarded by the administrator from the Workforce Training Authority
Fund to any eligible recipient. Such guidelines and terms shall include:
(1) A requirement that any applicant for training assistance operate in
the state or propose to relocate operations to the state, in whole or in
part, as a condition of such training assistance; (2) eligibility
requirements for training, including a requirement for applicants to
obtain [matching] funds or in-kind services from nonstate sources; (3)
a process for preliminary review of applications for strength and
eligibility by the administrator before such applications are presented
to the board for consideration; (4) return on investment objectives,
including, but not limited to, job growth and leveraged investment
opportunities; (5) a requirement that any [business] entity that receives
assistance [must] first consider applicants who have completed the
universal intake form; and (6) such other guidelines and terms as the
board determines to be necessary and appropriate in furtherance of the
objectives of this section. In developing such guidelines, the board
shall include considerations for the size of such businesses and the
number of workers employed by such businesses. Additionally, the
board shall give consideration to developing training programs and
creating career pathways for women, minorities and soon to be
released and formerly incarcerated individuals.
(f) Training assistance awarded to eligible recipients from the
Workforce Training Authority Fund [to eligible recipients] shall be
used for costs related to facilities, necessary furniture, fixtures and House Bill No. 5001
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equipment, development of programs, implementation of training
programs, materials and supplies, compensation, apprenticeship and
such other costs that the Workforce Training Authority [Board]
determines [pursuant to subsection (e) of this section] to be eligible for
training assistance within the purposes of this section pursuant to
subsection (e) of this section.
(g) On July 1, 2018, and prior to [each] the commencement of the
next fiscal year thereafter, the administrator shall prepare a plan of
operations and an operating and capital budget for the Workforce
Training Authority Fund, provided not later than ninety days prior to
the start of each fiscal year, the administrator shall submit such plan
and budget to the board of the Workforce Training Authority [Board]
for its review and approval.
(h) Administrative costs shall be paid or reimbursed to the
administrator from the Workforce Training Authority Fund, provided
the total of such administrative costs in any fiscal year shall not exceed
five per cent of the total amount of the allotted funding for such fiscal
year, as determined in the operating budget prepared pursuant to
subsection (g) of this section. Nothing in this section shall be [deemed]
construed to require the administrator to risk or expend the funds of
the Labor Department in connection with the administration of the
Workforce Training Authority Fund.
(i) On January 1, 2019, and annually thereafter, the administrator
shall provide a report of the [activities] expenditures of the Workforce
Training Authority Fund to the Workforce Training Authority for the
board's review and approval. Upon such approval, the board shall
provide such report, in accordance with the provisions of section 11-4a,
to the joint standing committees of the General Assembly having
cognizance of matters relating to labor, commerce and employment
advancement. Such report shall contain available information on the
status and progress of the operations of the programs funded by and House Bill No. 5001
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[funding] resources of the Workforce Training Authority Fund and the
types, amounts and recipients of financial assistance awarded.
(j) The administrator shall consult with the office of apprenticeship
training, the Connecticut Employment and Training Commission, the
Planning Commission on Higher Education and the administrator of
the Connecticut Manufacturing Innovation Fund to ensure
coordination and compatibility of the development and
implementation of training programs awarded by the Workforce
Training Authority. [Fund.]
Sec. 4. (Effective July 1, 2019) (a) Not later than October 1, 2019, the
Labor Department, in collaboration with workforce development
boards within the state, shall conduct a study of programs offered to
individuals seeking employment within the state. The topics of such
study shall include, but not be limited to:
(1) The location, ownership and management of workforce
development board offices within the state;
(2) The number of employees dedicated to assisting individuals
seeking employment in each American Job Center office;
(3) The number of individuals seeking employment who are served
through each American Job Center office and by which program on an
annual basis;
(4) The number of employers, classified by industry, that utilize
workforce development boards throughout the state;
(5) The number of individuals who successfully find employment
through the American Job Centers and the nature of that employment,
classified by industry;
(6) The number of individuals who successfully found employment, House Bill No. 5001
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then lost that employment, who re-enrolled in an American Job Center
program;
(7) The type of training programs;
(8) Whether activities offered by individual workforce development
boards are planned in conjunction with the department to maximize
efficiency and avoid duplication of resources;
(9) The funding sources for each workforce development board and
any in-kind contributions offered by the state including, but not
limited to, office space, utilities and equipment;
(10) Whether an individual seeking employment can simultaneously
participate in a state-operated employment program through the
department and a workforce development board program;
(11) The methods by which the department and workforce
development boards coordinate employment programs in each region
of the state; and
(12) The methods by which workforce development boards report to
the department and whether the resources currently allocated to the
workforce development boards by the department are adequate for the
operation of the programs offered by the workforce development
boards.
(b) Not later than January 1, 2020, the department shall submit, in
accordance with the provisions of section 11-4a of the general statutes,
a report to the joint standing committee of the General Assembly
having cognizance of matters relating to labor detailing the findings of
the study conducted pursuant to subsection (a) of this section.
Sec. 5. (NEW) (Effective from passage) Not later than December 31,
2019, the Labor Commissioner shall post on the eRegulations System a House Bill No. 5001
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notice of intent to adopt regulations, in accordance with the provisions
of chapter 54 of the general statutes, concerning allowances for
gratuities permitted or applied as part of the minimum fair wage
pursuant to sections 31-58 and 31-60 of the general statutes. The Labor
Commissioner shall consult with representatives of the restaurant
industry prior to posting such notice and shall consider the provisions
of the Fair Labor Standards Act, 29 USC 203(m)(2) and 29 CFR 531.56,
and include guidance provided by the United States Department of
Labor Wage and Hour Division in Field Assistance Bulletin No. 2019-2,
dated February 15, 2019, and in Wage and Hour Division Opinion
Letter FLSA 2018-27, dated November 8, 2018, regarding such
allowances.
Sec. 6. (Effective from passage) Not later than October 1, 2019, the
Secretary of the State shall update the official compilation of the
regulations of Connecticut state agencies posted on the eRegulations
System to comply with the provisions of chapter 54 of the general
statutes and section 7 of this act.
Sec. 7. (Effective from passage and applicable to actions pending on or filed
on or after said date) Notwithstanding the provisions of chapter 54 of the
general statutes, section 31-62-E4 of the regulations of Connecticut
state agencies is repealed.