The Florida Senate BILL ANALYSIS AND FISCAL IMPACT STATEMENT (This document is based on the provisions contained in the legislation as of the latest date listed below.) Prepared By: The Professional Staff of the Committee on Education Pre-K -12 BILL: SB 742 INTRODUCER: Senator Simon SUBJECT: Workforce Development DATE: March 24, 2025 ANALYST STAFF DIRECTOR REFERENCE ACTION 1. Brick Bouck ED Pre-meeting 2. AHE 3. FP I. Summary: SB 742 allows charter schools to directly access funding through the Workforce Development Capitalization Incentive Grant Program. This funding may be used to cover some or all costs associated with the creation or expansion of career and technical education programs that lead to industry certifications included on the CAPE Industry Certification Funding List. Additionally, the bill increases from three to six the number of programs for which each career center and Florida College System institution must offer a money-back guarantee. The bill takes effect July 1, 2025. II. Present Situation: Workforce Development Capitalization Incentive Grant Program The Workforce Development Capitalization Incentive Grant Program (CAP Grant) provides grants to school districts and Florida College System (FCS) institutions to support the creation or expansion of career and technical education programs leading to industry certifications included on the CAPE Industry Certification Funding List. 1 These programs may serve secondary students or postsecondary students, provided the postsecondary career and technical education program also serves secondary students. 2 1 The CAPE Industry Certification Funding List (Funding List) is the list of industry certifications and certificates adopted by the State Board of Education for implementation of the Florida Career and Professional Education (CAPE) Act. Certifications and certificates identified on the Funding List are assigned additional full-time equivalent (FTE) membership funding. Rule 6A-6.0576, F.A.C. 2 Section 1011.801, F.S. REVISED: BILL: SB 742 Page 2 Grant funds may be used for instructional equipment, laboratory equipment, supplies, personnel, student services, or other expenses related to the establishment or expansion of career and technical education programs serving secondary students. Expansion may include increasing program enrollment or adding new areas of specialization. However, grant funds may not be used for recurring instructional costs or institutions’ indirect costs. 3 The Department of Education administers the program, and the State Board of Education is authorized to adopt rules for its administration. When ranking applications, the State Board of Education must consider the statewide geographic dispersion of grant funds and prioritize applications from education agencies that maximize workforce development funding by offering high-performing, high-demand programs. 4 In both 2023 5 and 2024, 6 the Legislature provided $100 million for the CAP Grant. Money-back Guarantee Program The Money-back Guarantee Program aims to help individuals achieve self-sufficiency by requiring each school district and FCS institution to refund tuition costs for students who fail to secure employment in their trained field within six months of successfully completing an eligible workforce education program. These programs must prepare students for in-demand, middle- to high-wage occupations. 7 Each school district and FCS institution must offer a money-back guarantee for at least three programs and establish student eligibility criteria, which may include: 8 • Student attendance. • Program performance. • Career Service or Career Day attendance. • Internship or work-study participation. • Job search documentation. • Development of a career plan with the institution’s career services department. Two school districts do not meet the three-program requirement because they only operate two qualifying programs under the Money-back Guarantee Program. 9 A total of 3,872 students have enrolled in an eligible program, including 790 students at FCS institutions and 3,082 students at school districts. To date, no students have requested refunds for any program. 10 3 Section 1011.801(1), F.S. 4 Section 1011.801(2), F.S. 5 Section 51, ch. 2023-81, L.O.F. 6 Specific Appropriation 120, s. 2, ch. 2024-231, L.O.F. 7 Section 1011.803(1), F.S. 8 Section 1011.803(2), F.S. 9 The school districts offering two money-back guarantee programs are Baker, Brevard, DeSoto, Dixie and Sumter County Schools. Florida Department of Education, 2024 Money Back Guarantee Program Report (November 2024), at 11. 10 Florida Department of Education, 2024 Money Back Guarantee Program Report (November 2024), at 4. BILL: SB 742 Page 3 III. Effect of Proposed Changes: SB 742 amends s. 1011.801, F.S., to allow charter schools to directly access funding through the Workforce Development Capitalization Incentive Grant Program. This funding may be used to cover costs associated with the creation or expansion of career and technical education programs that lead to industry certifications included on the CAPE Industry Certification Funding List. Additionally, the bill amends s. 1011.803, F.S., to increase from three to six the number of programs for which each career center and Florida College System institution must offer a money-back guarantee. The bill takes effect July 1, 2025. IV. Constitutional Issues: A. Municipality/County Mandates Restrictions: None. B. Public Records/Open Meetings Issues: None. C. Trust Funds Restrictions: None. D. State Tax or Fee Increases: None. E. Other Constitutional Issues: None. V. Fiscal Impact Statement: A. Tax/Fee Issues: None. B. Private Sector Impact: None. BILL: SB 742 Page 4 C. Government Sector Impact: While the bill does not directly appropriate funds, requiring additional programs under the Money-back Guarantee Program may result in increased costs for school districts and FCS institutions. VI. Technical Deficiencies: None. VII. Related Issues: None. VIII. Statutes Affected: This bill substantially amends the following sections of the Florida Statutes: 1011.801 and 1011.803. IX. Additional Information: A. Committee Substitute – Statement of Changes: (Summarizing differences between the Committee Substitute and the prior version of the bill.) None. B. Amendments: None. This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.