SLS 17RS-311 ORIGINAL 2017 Regular Session SENATE BILL NO. 102 BY SENATOR JOHNS Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. FUNDS/FUNDING. Creates and provides for Louisiana Educational Workforce Training Fund to provide opportunities for educational training in the Louisiana Community and Technical College System. (8/1/17) 1 AN ACT 2 To enact R.S. 17:1876, relative to the programs in the Louisiana Community and Technical 3 Colleges; to create the Louisiana Educational Workforce Training Fund; to provide 4 for the creation of a fund; to provide for purposes; to provide for sources of funding; 5 to provide for a private match; to provide for distribution of the fund; to provide for 6 the promulgation of policies for the administration of the fund; and to provide for 7 related matters. 8 Be it enacted by the Legislature of Louisiana: 9 Section 1. R.S. 17:1876 is hereby amended and reenacted to read as follows: 10 ยง1876. Louisiana Educational Workforce Training Fund; purpose; program 11 administration 12 A. There is hereby created a fund in the Department of the Treasury 13 which shall be known as the "Louisiana Educational Workforce Training 14 Fund", hereinafter referred to in this Section as the "fund". 15 B.(1) The purpose of the fund shall be to provide the funding of degree 16 and certificate production through workforce training programs offered by 17 Louisiana's public two-year, community, and technical colleges. Page 1 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 102 SLS 17RS-311 ORIGINAL 1 (2) The fund shall be used to prepare more Louisiana citizens, 2 particularly those who are underemployed or have no postsecondary training 3 or credentials, for good-paying careers that are in high demand by employers 4 in Louisiana. 5 C.(1) The sources of money deposited into the fund shall be any monies 6 received by the fund from public or private grants, federal appropriation, or 7 state appropriation. 8 (2) After compliance with the requirements of the Bond Security and 9 Redemption Fund, monies shall be deposited into the fund. 10 (3) Monies in the fund shall be invested in the same manner as monies 11 in the general fund. Interest earned on investment of monies in the fund shall 12 be credited to the fund. Unexpended and unencumbered monies in the fund at 13 the end of the fiscal year shall remain in the fund. 14 D. Subject to an annual appropriation by the legislature, monies in the 15 fund shall be appropriated and administered as provided in this Section. 16 E.(1) Monies in the fund shall be appropriated to the Board of 17 Supervisors of Community and Technical Colleges to be distributed to and used 18 by Louisiana's public two-year, community, and technical colleges in 19 accordance with an outcome-based funding model to be developed by the Board 20 of Supervisors of Community and Technical Colleges as provided for in this 21 Section. This outcome-based funding model shall align with the state's goal of 22 meeting local workforce demand and shall include only completers of 23 short-term, high-demand workforce training programs that lead to 24 industry-based certifications or other credentials of value to employers. 25 (2) Funding shall be distributed by the Board of Supervisors of 26 Community and Technical Colleges only upon receipt of certification that a 27 match of not less than twenty percent of the amount of funding to be distributed 28 has been guaranteed by a private entity. The certification shall detail the type 29 of private match to be provided, which may include but is not limited to: cash; Page 2 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 102 SLS 17RS-311 ORIGINAL 1 in-kind donations of technology, personnel, construction materials, facility 2 modification, or tangible property; internships; scholarships; sponsorship of 3 staff or faculty; or faculty endowment. 4 (3) Any funds distributed to any institution that remain unexpended or 5 unencumbered at the end of the fiscal year shall be available for use in the subsequent 6 fiscal year by an institution pursuant to its implementation plan. 7 F. Monies in the fund shall be used only for workforce training 8 programs to prepare individuals for high-demand careers as defined by the 9 Louisiana Workforce Investment Council. The workforce training program 10 expenses may include recruitment, pre-employment screening, skills assessment, 11 testing, remediation, soft skills instruction, workplace readiness preparation, 12 career and technical training, and scholarships for students enrolled in 13 high-demand workforce training programs when appropriate. 14 G. The Board of Supervisors of Community and Technical Colleges shall 15 administer the fund and shall promulgate policies for the administration of this 16 Section and any other requirements deemed appropriate and necessary to carry 17 out the provisions of this Section. 18 H. The Board of Supervisors of Community and Technical Colleges 19 shall, not less than sixty days before the legislature convenes for each regular 20 session, submit an annual report to the House Committee on Education and the 21 Senate Committee on Education. The report shall include, at a minimum, 22 information on any and all private matches provided for in Subsection E of this 23 Section, training programs funded, the number of students enrolled, the 24 number and type of credentials awarded, and the number and amount of 25 scholarships. 26 I. The fund is in addition to, and separate from, any monies appropriated 27 or allocated to any postsecondary education management board. Allocations 28 from this fund shall not be included in the Board of Regents' funding formula 29 calculation, nor shall it supplant any state general fund allocation provided to Page 3 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 102 SLS 17RS-311 ORIGINAL 1 institutions. The availability of the fund shall not in any way substitute, limit, 2 or otherwise affect the allocation of any funds otherwise available to those 3 institutions under state or federal laws. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Carla S. Roberts. DIGEST SB 102 Original 2017 Regular Session Johns Proposed law creates a fund in the Department of the Treasury which shall be known as the "Louisiana Educational Workforce Training Fund", hereinafter referred to as the "fund." Proposed law provides that the purpose of the fund shall be to provide the funding of degree and certificate production through workforce training programs offered by Louisiana's public two-year, community, and technical colleges. Proposed law provides that the fund shall be used to prepare more Louisiana citizens, particularly those who are underemployed or have no postsecondary training or credentials, for good-paying careers that are in high demand by employers in Louisiana. Proposed law provides that the sources of money deposited into the fund shall be any monies received by the fund from federal appropriation, state appropriation, or public or private grants. Proposed law provides that after compliance with the requirements of the Bond Security and Redemption Fund, monies shall be deposited into the fund. Proposed law requires that monies in the fund be invested in the same manner as monies in the general fund. Interest earned on investment of monies in the fund shall be credited to the fund. Proposed law provides that unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund. Proposed law provides that, subject to an annual appropriation by the legislature, monies in the fund shall be appropriated and administered as provided in proposed law. Proposed law requires that monies in the fund be appropriated to the Board of Supervisors of Community and Technical Colleges to be distributed to and used by Louisiana's public two-year, community, and technical colleges in accordance with an outcome-based funding model to be developed by the Board of Supervisors of Community and Technical Colleges. Proposed law provides that the outcome-based funding model shall align with the state's goal of meeting local workforce demand and shall include only completers of short-term, high-demand workforce training programs that lead to industry-based certifications or other credentials of value to employers. Proposed law provides that funding shall be distributed by the Board of Supervisors of Community and Technical Colleges only upon receipt of certification that a match of not less than 20% of the amount of funding to be distributed has been guaranteed by a private entity. The certification shall detail the type of private match to be provided, which may include but is not limited to: cash; in-kind donations of technology, personnel, construction materials, facility modification, or tangible property; internships; scholarships; sponsorship of staff or faculty; or faculty endowment. Proposed law provides that any funds distributed to any institution that remain unexpended or unencumbered at the end of the fiscal year shall be available for use in the subsequent fiscal year by an institution pursuant to its implementation plan. Page 4 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 102 SLS 17RS-311 ORIGINAL Proposed law provides that monies in the fund shall be used only for workforce training programs to prepare individuals for high-demand careers as defined by the Louisiana Workforce Investment Council. The workforce training program expenses may include recruitment, pre-employment screening, skills assessment, testing, remediation, soft skills instruction, workplace readiness preparation, career and technical training, and scholarships for students enrolled in high-demand workforce training programs when appropriate. Proposed law provides that the Board of Supervisors of Community and Technical Colleges shall administer the fund and shall promulgate policies for the administration of proposed law and any other requirements deemed appropriate and necessary to carry out the provisions of proposed law. Proposed law provides that the Board of Supervisors of Community and Technical Colleges shall, not less than sixty days before the legislature convenes for each regular session, submit an annual report to the House Committee on Education and the Senate Committee on Education. The report shall include, at a minimum, information on any and all private matches, training programs funded, the number of students enrolled, the number and type of credentials awarded, and the number and amount of scholarships. Proposed law provides that the fund is in addition to, and separate from, any monies appropriated or allocated to any postsecondary education management board. Allocations from this fund shall not be included in the Board of Regents' funding formula calculation, nor shall it supplant any state general fund allocation provided to institutions. 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 August 1, 2017. (Adds R.S. 17:1876) Page 5 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.