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Regular Session, 2014
HOUSE BILL NO. 1033
BY REPRESENTATIVES KLECKLEY, ADAMS, ANDERS, ARMES, ARNOLD,
BADON, BARRAS, BARROW, BERTHELOT, BILLIOT, STUART BISHOP,
WESLEY BISHOP, BROADWATER, BROSSETT, BROWN, BURFORD, HENRY
BURNS, TIM BURNS, BURRELL, CARMODY, CHAMPAGNE, CHANEY, COX,
DANAHAY, DIXON, DOVE, FANNIN, FOIL, FRANKLIN, GISCLAIR, GUINN,
HARRIS, HARRISON, HENSGENS, HOFFMANN, HONORE, HUNTER,
HUVAL, IVEY, KATRINA JACKSON, JAMES, JEFFERSON, NANCY
LANDRY, TERRY LANDRY, LEBAS, LEGER, LEOPOLD, LORUSSO, MACK,
MILLER, NORTON, PIERRE, PONTI, POPE, PRICE, PYLANT, REYNOLDS,
RICHARD, RITCHIE, ROBI DEAUX, SCHEXNAYDER, SEABAUGH,
SHADOIN, SIMON, SMITH, ST. GERMAIN, STOKES, TALBOT, THIBAUT,
THIERRY, THOMPSON, WHITNEY, ALFRED WILLIAMS, PATRICK
WILLIAMS, WILLMOTT, AND WOODRUFF AND SENATOR ALARIO
FUNDS/FUNDING: Provides for enactment of the Workforce and Innovation for a
Stronger Economy (WISE) Fund
AN ACT1
To enact R.S. 17:3138.2, relative to public postsecondary funding to meet workforce needs;2
to establish the Workforce and Innovation for a Stronger Economy Fund; to provide3
for the dedication, deposit, use, and investment of monies in the fund; to provide for4
a statewide workforce demand and gap analysis; to provide for a Workforce and5
Innovation for a Stronger Economy Fund Strategic Planning Council as an6
independent subcommittee of the Board of Regents; to provide for reporting7
requirements; to provide for an effective date; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 17:3138.2 is hereby enacted to read as follows: 10
ยง3138.2. Workforce and Innovation for a Stronger Economy Fund11
A. The "Workforce and Innovation for a Stronger Economy Fund",12
hereinafter referred to in this Section as the "fund", is hereby created within the state13
treasury as a special fund for the purpose of funding degree and certificate14 HLS 14RS-1569 REENGROSSED
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production and research priorities in high demand fields through programs offered1
by Louisiana's public postsecondary education institutions to meet the state's future2
workforce and innovation needs.3
B. Monies in the fund shall be invested in the same manner as monies in the4
general fund. Interest earned on investment of monies in the fund shall be credited5
to the fund. Unexpended and unencumbered monies in the fund at the end of the6
fiscal year shall remain in the fund.7
C. Subject to appropriation of monies into the fund by the legislature, the8
state treasurer is directed to deposit into the fund at the beginning of each fiscal year9
forty million dollars. Monies in the fund shall be appropriated and administered as10
provided in this Section.11
D.(1) Monies in the fund shall be appropriated to the Board of Regents to be12
distributed to and used by postsecondary education institutions in accordance with13
a statewide workforce demand and gap analysis to be developed as provided for in14
this Section.15
(2) The funds distributed pursuant to this Section shall be used by the16
institution towards degree and certificate production pursuant to the workforce17
demand and gap analysis and research priorities according to implementation plans.18
(3) Any funds distributed to any institution that remain unexpended or19
unobligated at the end of the fiscal year shall be available for use in the subsequent20
fiscal year by an institution pursuant to their implementation plan.21
(4) Funding shall be distributed by the Board of Regents only upon receipt22
of certification by the postsecondary education management board on behalf of the23
receiving public postsecondary education institution that a match of no less than24
twenty percent of the amount of funding to be distributed has been guaranteed by a25
private entity. The certification shall detail the type of private match to be provided,26
which shall include cash, in-kind donation of technology, construction materials,27
facility modification or construction, internships, scholarships, sponsorship of staff28
or faculty, faculty endowment, or tangible property. The Workforce and Innovation29 HLS 14RS-1569 REENGROSSED
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for a Stronger Economy Fund Strategic Planning (WISE) Council may authorize a1
match for an institution in types other than those provided for in this Paragraph, upon2
request of the system president.3
E.(1) A Workforce and Innovation for a Stronger Economy Fund Strategic4
Planning Council, to be referred to as the "WISE Council", shall be established as5
an independent subcommittee of the Board of Regents and shall be comprised of the6
president-chancellor of Louisiana State University, the president of the Southern7
University System, the president of the University of Louisiana System, the president8
of the Louisiana Community and Technical College System, the commissioner of9
higher education, the secretary of the Department of Economic Development, the10
executive director of the Louisiana Workforce Commission, and the chairman of the11
Workforce Investment Council, or their successors.12
(2)(a) The WISE Council shall develop a method for the distribution of13
monies in the fund in alignment with the statewide workforce demand and gap14
analysis and research priorities as provided in this Section. The methodology for15
the distribution shall be reevaluated no more than once every three years unless a16
majority of the WISE Council vote to reevaluate the methodology more often.17
(b) The methodology of distribution shall be as follows:18
(i) Eighty percent of funds distributed shall be based on degree and19
certificate production in fields required for Four and Five STAR Jobs, or its20
successor, as defined by the Louisiana Workforce Commission and weighted by cost21
and a prioritization of high demand degree and certificate production based on data22
provided by the Department of Economic Development and the Louisiana Workforce23
Commission.24
(ii) Twenty percent of funds distributed shall be based on federally funded25
research expenditures as defined by the National Science Foundation. 26
(3) The WISE Council shall prepare a statewide workforce demand and gap27
analysis which shall include:28 HLS 14RS-1569 REENGROSSED
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(a) Statewide and regional degree and certificate production and research1
priorities based on an analysis of credential completion at all Louisiana2
postsecondary education institutions and workforce demand.3
(b) A prioritization of high demand degree and certificate production based4
on data provided by the Department of Economic Development and the Louisiana5
Workforce Commission.6
(4) The WISE Council and the Board of Regents shall review and approve7
the statewide workforce demand and gap analysis and research priorities.8
(5) The WISE Council shall review and approve implementation plans9
submitted by institutions. The implementation plans shall include at a minimum a10
plan for expenditure of monies and outcomes expected.11
(6) The system presidents shall report annually to the WISE Council on12
progress towards degree and certificate and research priorities in accordance with the13
implementation plans.14
F. The statewide workforce demand and gap analysis, including any15
revisions to the analysis, distribution of funds, and implementation plans shall be16
posted on the Board of Regents' website.17
G. The WISE Council may create policies and procedures for its own18
management but shall meet no less than two times per year.19
H. The Board of Regents, on behalf of postsecondary education, shall20
provide annual reporting to the Senate Committee on Education, Senate Committee21
on Finance, the House Committee on Education, and the House Committee on22
Appropriations. Such reports shall include the statewide workforce demand and gap23
analysis, including any revisions to the analysis, distribution of funds, and24
implementation plans.25
I. The Board of Regents shall promulgate rules developed jointly and26
collaboratively by the commissioner of higher education and the system presidents27
for the administration of the fund. Prior to final adoption, the rules shall be approved28
by the WISE Council.29 HLS 14RS-1569 REENGROSSED
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J. The fund is in addition to, and separate from, any monies appropriated or1
allocated to any postsecondary education management board. Allocations from this2
fund shall not be included in the Board of Regents' funding formula calculation, nor3
shall it supplant any state general fund allocations provided to institutions. The4
availability of the fund shall not in any way substitute, limit, or otherwise affect the5
allocation of any funds otherwise available to those institutions under state or federal6
laws.7
Section 2. This Act shall become effective upon signature by the governor or, if not8
signed by the governor, upon expiration of the time for bills to become law without signature9
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If10
vetoed by the governor and subsequently approved by the legislature, this Act shall become11
effective on the day following such approval.12
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Kleckley HB No. 1033
Abstract: Establishes the "Workforce and Innovation for a Stronger Economy Fund" for
the funding of degree and certificate production and research priorities in high
demand fields to meet the state's current and future workforce innovation needs.
Proposed law creates the "Workforce and Innovation for a Stronger Economy Fund,"
hereinafter referred to as the "WISE fund", within the state treasury as a special fund for the
purpose of funding degree and certificate production and research priorities in high demand
fields through programs offered by La.'s public postsecondary education institutions to meet
the state's current and future workforce and innovation needs.
Proposed law requires the state treasurer to deposit $40 million into the WISE fund at the
beginning of each fiscal year, subject to appropriation by the legislature.
Proposed law requires that monies in the WISE fund be appropriated to the Board of Regents
(board) to be distributed to and used by postsecondary education institutions in accordance
with a statewide workforce demand and gap analysis to be developed and provided for in
proposed law.
Proposed law requires that funds be used towards the degree and certificate production and
research priorities pursuant to the workforce demand and gap analysis according to
implementation plans.
Proposed law provides that any funding distributed to an institution that is not spent at the
end of a fiscal year shall be available for use by the institution in the next fiscal year. HLS 14RS-1569 REENGROSSED
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are additions.
Proposed law requires that funding only be distributed by the board if the management board
certifies on behalf of the receiving institution that a match of no less than 20% of the amount
to be distributed has been guaranteed by a private entity. Provides that the certification shall
detail the type of private match to be provided; however, the Workforce and Innovation for
a Stronger Economy Fund Strategic Planning (WISE) Council may authorize a match in
types other than provided for in proposed law upon request of the system president.
Proposed law establishes the WISE Council comprised of the president-chancellor of the
Louisiana State University System, the president of the Southern University System, the
president of the University of Louisiana System, the president of the Louisiana Community
and Technical College System, the commissioner of higher education, the secretary of the
Dept. of Economic Development (DED), the executive director of the La. Workforce
Commission (LWC), and the chairman of the La. Workforce Investment Council.
Proposed law provides a method of distribution of funds developed by the WISE Council
as follows:
(1)80% of the funds distributed based on degree and certificate production in fields
required for Four and Five STAR Jobs, or its successor, as defined by the LWC and
weighted by cost.
(2)20% of funds distributed based on federally funded research expenditures as defined
by the National Science Foundation.
Requires the WISE Council to review and approve a statewide workforce demand and gap
analysis which shall be approved by the board.
Proposed law further provides that the methodology for distribution be evaluated no more
than once every three years unless a majority of the WISE Council vote to reevaluate the
methodology more often.
Proposed law requires the WISE Council to develop statewide workforce and gap analysis
to include:
(1)Statewide and regional degree and certificate production and research priorities
based on an analysis of credential completion and workforce demand.
(2)A prioritization of high demand degree and certificate production based on data
provided by DED and the LWC.
Proposed law requires the WISE Council and the Board of Regents to review and approve
the statewide workforce and gap analysis. Proposed law further requires the WISE Council
to review implementation plans submitted by the institutions.
Proposed law requires the system presidents to annually report to the WISE Council on
progress towards degree and certificate and research priorities and implementation plans.
Requires that the board provide annual reports to the senate committees on education and
finance and the house committees on education and appropriations.
Proposed law requires that the statewide workforce demand and gap analysis, including any
revisions of the analysis, distribution of funds, and implementation plans be posted on the
board website.
Proposed law authorizes the WISE Council to create policies and procedures for its own
management. Requires the WISE Council to meet no less than two times per year. HLS 14RS-1569 REENGROSSED
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are additions.
Proposed law authorizes the promulgation of rules developed jointly and collaboratively by
the commissioner of higher education and the system presidents for the administration of the
fund and requires that prior to final adoption, the rules be approved by the WISE Council.
Proposed law provides that the WISE fund shall be in addition to, and separate from, any
monies appropriated or allocated to any postsecondary education management board.
Allocations from the WISE fund shall not be included in the board's funding formula
calculation, nor shall it supplant any state general fund allocations provided to institutions.
Provides that the availability of the WISE fund shall not in any way substitute, limit, or
otherwise affect the allocation of any funds otherwise available to those institutions under
state or federal laws.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 17:3138.2)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Appropriations to the
original bill.
1. Added provision that deposit of monies into the WISE Fund is subject to
appropriation by the legislature.
2. Added language regarding money that is unspent or unobligated at the end of a
fiscal year; provides that it can be used in subsequent fiscal years.
3. Changed those responsible for developing the distribution of the funding from
the president-chancellor of the Louisiana State University System and the
presidents of the Southern University System, the University of Louisiana
System, and of the Community and Technical College System, and the
commissioner of higher education in consultation with the secretary of the
Department of Economic Development (DED), the executive director of the La.
Workforce Commission (LWC), and the chairman of the La. Workforce
Investment Council to all the members of the WISE Council.
4.Added that the method of distribution of the funds to the institutions include that
80% of the funds be distributed based on degree completion and 20% of the
funds be distributed based on research.
5.Added that the statewide workforce and gap analysis is updated no more than
every three years, unless the majority of the council votes to update the analysis
more often.
6. Added review and approval by the WISE Council of an institutions'
implementation plans regarding their use of the funding and the expected
outcomes.
7. Changed the minimum number of times the WISE Council meets from four to
two and provides that the meetings are mandatory rather than permissive.
House Floor Amendments to the engrossed bill.
1. Clarified which items are included in the reports to the legislative committees.