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Regular Session, 2014
SENATE BILL NO. 526
BY SENATOR ALARIO AND REPRESENTATIVE KLECKLEY
FUNDS/FUNDING. Provides for enactment of the Workforce and Innovation for a Stronger
Economy (WISE) Fund. (gov sig)
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 on 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 within13
the state treasury as a special fund for the purpose of funding degree and14
certificate production and research productivity in high demand fields through15
programs offered by Louisiana's public higher education institutions to meet16
the state's current and future workforce needs.17 SB NO. 526
SLS 14RS-846 ORIGINAL
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words in boldface type and underscored are additions.
B. Monies in the fund shall be invested in the same manner as monies1
in the general fund. Interest earned on investment of monies in the fund shall2
be credited to the fund. Unexpended and unencumbered monies in the fund at3
the end of the fiscal year shall remain in the fund.4
C. The state treasurer is directed to deposit into the fund at the5
beginning of each fiscal year no less than forty million dollars. Monies in the6
fund shall be appropriated and administered as provided in Subsections D, E,7
and F of this Section.8
D.(1) Monies in the fund shall be appropriated to the Board of Regents9
to be distributed and used in accordance with a statewide workforce demand10
and gap analysis to be developed and provided in Subsection E and F of this11
Section.12
(2) Funding shall only be distributed by the Board of Regents upon13
receipt of certification by the management board on behalf of the receiving14
institution that a match no less than twenty percent of the amount to be15
distributed has been guaranteed by a private non-state or non-federal entity.16
The certification shall detail the type of private match to be provided, which17
shall include cash, in-kind donation of technology, construction materials,18
facility modification or construction, internships, scholarships, sponsorship of19
staff or faculty, endowed faculty or tangible property. However, the Workforce20
and Innovation for a Stronger Economy Fund Strategic Planning (WISE)21
Council pursuant to Subsection F may waive this Paragraph to allow donation22
types not herein authorized upon request of the system president.23
(3) The funds allocated pursuant to this Section shall be expended24
towards the degree and certificate production and research productivity targets25
pursuant to the workforce demand and gap analysis produced by the WISE26
Council and according to implementation plans which shall be created by each27
system president.28
E.(1) The president-chancellor of the Louisiana State University System,29 SB NO. 526
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president of the Southern University System, president of the University of1
Louisiana System, president of the Community and Technical College System,2
and the commissioner of higher education in consultation with the secretary of3
the Department of Economic Development, executive director of the Louisiana4
Workforce Commission, and the chairman of the Louisiana Workforce5
Investment Council shall develop the distribution and allocation of monies in6
the fund in alignment with the statewide workforce demand and gap analysis7
as provided in Subsection F.8
(2) A method of distribution of funds based on:9
(a) Degree and certificate production in fields required for Four and10
Five Star Jobs, or its successor, as defined by the Louisiana Workforce11
Commission and weighted by cost.12
(b) Federally funded research expenditures as defined by the National13
Science Foundation.14
F.(1) A Workforce and Innovation for a Stronger Economy Fund15
Strategic Planning Council, hereafter referred to as the "WISE Council", shall16
be established as an independent subcommittee of the Board of Regents and17
shall be comprised of the president-chancellor of Louisiana State University, the18
president of the Southern University System, the president of the University of19
Louisiana System, the president of the Community and Technical College20
System, the commissioner of higher education, the secretary of the Department21
of Economic Development, the executive director of the Louisiana Workforce22
Commission, and the chairman of the Workforce Investment Council, or their23
successors.24
(2) The WISE Council shall review and approve a statewide workforce25
demand and gap analysis which shall be approved by the Board of Regents.26
(3) The statewide workforce and gap analysis shall include:27
(a) Statewide and regional degree and certificate production and28
research productivity targets based on an analysis of credential completion and29 SB NO. 526
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workforce demand.1
(b) A prioritization of high demand degree and certificate production2
based on data provided by Department of Economic Development and the3
Louisiana Workforce Commission.4
(4) The system presidents shall report annually to the WISE Council on5
progress towards degree and certificate and research productivity targets and6
implementation plans.7
G. The statewide workforce demand and gap analysis, including any8
revisions, distribution of funds, and implementation plans shall be posted on the9
Board of Regents' website.10
H. The WISE Council may create policies and procedures for its own11
management but may meet no less than four times per year.12
I. The Board of Regents, on behalf of postsecondary education, shall13
provide annual reporting to the Senate Committee on Education, Senate14
Committee on Finance, the House Committee on Education, and the House15
Committee on Appropriation as provided in Subsection G.16
J. The Board of Regents shall promulgate rules developed jointly and17
collaboratively by the commissioner of higher education and the system18
presidents for the administration of the fund. Prior to final adoption, the rules19
shall be approved by the WISE Council.20
K. The fund is in addition to, and separate from, any monies21
appropriated or allocated to any postsecondary management board. Allocations22
from this fund shall not be included in the Board of Regents' funding formula23
calculation, nor shall it supplant any allocations provided to institutions24
through the funding formula. The availability of the fund shall not in any way25
substitute, limit, or otherwise affect the allocation of any funds otherwise26
available to those institutions under state or federal laws. 27
Section 2. This Act shall become effective upon signature by the governor or, if not28
signed by the governor, upon expiration of the time for bills to become law without signature29 SB NO. 526
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by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If1
vetoed by the governor and subsequently approved by the legislature, this Act shall become2
effective on the day following such approval.3
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jerry J. Guillot.
DIGEST
Alario (SB 526)
Proposed law creates the "Workforce and Innovation for a Stronger Economy Fund,"
hereinafter "fund," within the state treasury as a special fund for the purpose of funding
degree and certificate production and research productivity in high demand fields through
programs offered by Louisiana's public higher education institutions to meet the state's
current and future workforce needs. Provides that monies in the fund shall be invested in the
same manner as monies in the general fund. Provides that interest earned on investment of
monies in the fund shall be credited to the fund and that unexpended and unencumbered
monies in the fund at the end of the fiscal year shall remain in the fund.
Directs the state treasurer to deposit into the fund at the beginning of each fiscal year no less
than $40 million. Provides that monies in the fund shall be appropriated and administered
as provided in proposed law.
Provides that monies in the fund shall be appropriated to the Board of Regents (board) to be
distributed and used in accordance with a statewide workforce demand and gap analysis to
be developed and provided in proposed law. Provides that funding shall only be distributed
by the board upon receipt of certification by the management board on behalf of the
receiving institution that a match no less than 25% of the amount to be distributed has been
guaranteed by a private non-state or non-federal entity. Provides that the certification shall
detail the type of private match to be provided, which shall include cash, in-kind donation
of technology, construction materials, facility modification or construction, internships,
scholarships, sponsorship of staff or faculty, endowed faculty or tangible property.
However, the Workforce and Innovation for a Stronger Economy Fund Strategic Planning
(WISE) Council may waive this requirements of proposed law to allow donation types not
authorized by proposed law upon request of the system president.
Provides that funds allocated shall be expended towards the degree and certificate production
and research productivity targets pursuant to the workforce demand and gap analysis
produced by the WISE Council and according to implementation plans which shall be
created by each system president.
Provides that the president-chancellor of the Louisiana State University System, president
of the Southern University System, president of the University of Louisiana System,
president 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), executive director of the La. Workforce Commission (LWC), and the chairman of
the La. Workforce Investment Council shall develop the distribution and allocation of
monies in the fund in alignment with the statewide workforce demand and gap analysis.
Provides a method of distribution of funds based on:
(1)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)Federally funded research expenditures as defined by the National Science SB NO. 526
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words in boldface type and underscored are additions.
Foundation.
Establishes the WISE Council as an independent subcommittee of the Board of Regents
comprised of the president-chancellor of Louisiana State University, the president of the
Southern University System, the president of the University of Louisiana System, the
president of the Community and Technical College System, the commissioner of higher
education, the secretary of the DED, the executive director of the LWC, and the chairman
of the La. Workforce Investment Council, or their successors. Provides that the council shall
review and approve a statewide workforce demand and gap analysis which shall be approved
by the board.
Provides that the statewide workforce and gap analysis shall include:
(1)Statewide and regional degree and certificate production and research productivity
targets 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.
Requires that the system presidents report annually to the WISE Council on progress
towards degree and certificate and research productivity targets and implementation plans.
Requires that the statewide workforce demand and gap analysis, including any revisions,
distribution of funds, and implementation plans be posted on the board website.
Authorizes the WISE Council to create policies and procedures for its own management but
may meet no less than four times per year.
Requires that the board, on behalf of postsecondary education, provide annual reporting to
the Senate Committee on Education, Senate Committee on Finance, the House Committee
on Education, and the House Committee on Appropriation.
Authorizes the board to promulgate 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.
Provides that the fund is in addition to, and separate from, any monies appropriated or
allocated to any postsecondary management board. Allocations from this fund shall not be
included in the board funding formula calculation, nor shall it supplant any allocations
provided to institutions through the funding formula. Provides that the availability of the
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 the governor or lapse of time for gubernatorial action.
(Adds R.S. 17:3138.2)