SLS 17RS-311 REENGROSSED 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. (gov sig) 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 exclusion of certain funds; to provide for an effective date; 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 enacted to read as follows: 10 ยง1876. Louisiana Educational Workforce Training Fund; purpose; program 11 administration 12 A. There is hereby created in the state treasury, as a special fund, the 13 "Louisiana Educational Workforce Training Fund", hereinafter referred to as 14 the "fund". 15 B.(1) The purpose of the fund shall be to provide funding for degree and 16 certificate production through workforce training programs offered by 17 Louisiana's public two-year, community, and technical colleges. Page 1 of 6 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 REENGROSSED 1 (2) The fund shall be used to prepare Louisiana citizens, particularly 2 those who are underemployed or have no postsecondary training or credentials, 3 in high-wage, high-skill, and high-demand career fields. 4 C. After compliance with the requirements of Article VII, Section 9(B) 5 of the Constitution of Louisiana relative to the Bond Security and Redemption 6 Fund, monies received from public or private grants, federal appropriation, or 7 state appropriation shall be deposited into the fund. Monies in the fund shall be 8 invested in the same manner as monies in the general fund. Interest earned on 9 investment of monies in the fund shall be credited to the fund. Unexpended and 10 unencumbered monies in the fund at the end of the fiscal year shall remain in 11 the fund, following compliance with the requirements of Article VII, Section 12 9(B) of the Constitution of Louisiana. 13 D.(1) Subject to an annual appropriation by the legislature, monies in the 14 fund shall be appropriated to the Board of Supervisors of Community and 15 Technical Colleges to be used for workforce training programs to prepare 16 individuals for high-demand careers as defined by the Louisiana Workforce 17 Investment Council. Distribution of the monies in the fund shall be based on an 18 outcome-based distribution model. The distribution model shall allocate funds 19 based on short-term, high-demand workforce training completer programs that 20 lead to industry-based certifications or other credentials of value to employers. 21 (2) Funding shall be distributed by the Board of Supervisors of 22 Community and Technical Colleges only upon receipt of certification that a 23 match of not less than twenty percent of the amount of funding to be distributed 24 has been guaranteed by a private entity. The certification shall detail the type 25 of private match to be provided, which may include but is not limited to: cash; 26 in-kind donations of technology, personnel, construction materials, facility 27 modification, or corporal property; internships; scholarships; sponsorship of 28 staff or faculty; or faculty endowment. 29 (3) The use of private matching funds shall comply with expressed donor Page 2 of 6 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 REENGROSSED 1 intent. Any private matching funds shall remain with the institution as provided 2 for by the donor. 3 (4) Any funds distributed to an institution that remain unexpended or 4 unencumbered at the end of the fiscal year shall be available for use in the 5 subsequent fiscal year by the institution pursuant to its implementation plan. 6 E. The fund is in addition to, and separate from, any monies 7 appropriated or allocated to any postsecondary education management board. 8 Allocations from this fund shall not be included in the Board of Regents' 9 funding formula calculation, nor shall it supplant any state general fund 10 allocation provided to institutions. The availability of the fund shall not in any 11 way substitute, limit, or otherwise affect the allocation of any funds otherwise 12 available to those institutions under state or federal laws. 13 F. Notwithstanding the provisions herein and pursuant to the provisions 14 of R.S. 23:34 and R.S. 23:1514, all federal-appropriated Workforce Innovation 15 and Opportunity Act funding shall be excluded from the Louisiana Educational 16 Workforce Training Fund and shall be exclusively administered by the 17 Louisiana Workforce Commission. 18 G. Notwithstanding the provisions herein and pursuant to the provisions 19 of R.S. 23:1514, R.S. 23:1291.1, and R.S. 23:1377, all state-appropriated 20 Incumbent Working Training Account funds, workers' compensation funds, 21 and Workers' Compensation Second Injury Fund funds shall be excluded from 22 the Louisiana Educational Workforce Training Fund and shall be exclusively 23 administered by the Louisiana Workforce Commission. 24 H. The Board of Supervisors of Community and Technical Colleges 25 shall, not less than sixty days before the legislature convenes for each regular 26 session, submit an annual report to the House Committee on Education and the 27 Senate Committee on Education. The report shall include, at a minimum, 28 information on any and all private matches provided for in Subsection D of this 29 Section, training programs funded, the number of students enrolled, the Page 3 of 6 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 REENGROSSED 1 number and type of credentials awarded, and the number and amount of 2 scholarships. 3 Section 2. This Act shall become effective upon signature by the governor or, if not 4 signed by the governor, upon expiration of the time for bills to become law without signature 5 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 6 vetoed by the governor and subsequently approved by the legislature, this Act shall become 7 effective on the day following such approval. The original instrument was prepared by Carla S. Roberts. The following digest, which does not constitute a part of the legislative instrument, was prepared by Cheryl M. Serrett. DIGEST SB 102 Reengrossed 2017 Regular Session Johns Proposed law creates as a special fund in the state treasury, 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 funding for 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 Louisiana citizens, particularly those who are underemployed or have no postsecondary training or credentials in high-wage, high-skill, and high-demand career fields. Proposed law provides that after compliance with the requirements of the Bond Security and Redemption Fund, monies received from public or private grants, federal appropriation, or state appropriation, 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, following compliance with the requirements of Art. VII, Sec. 9(B) of the La. Constitution. 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 to the Board of Supervisors of Community and Technical Colleges to be used for workforce training programs to prepare individuals for high-demand careers as defined by the La. Workforce Investment Council. Distribution of monies in the fund shall be based on an outcome-based funding distribution model. The distribution model shall allocate funds based on short-term, high-demand workforce training completer 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 corporeal property; internships; scholarships; sponsorship of staff or faculty; or faculty endowment. Page 4 of 6 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 REENGROSSED Proposed law provides that the use of private matching funds shall comply with expressed donor intent and shall remain with the institution as provided by the donor. Proposed law provides that any funds distributed to the 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. 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. Proposed law provides that all federal-appropriated Workforce Innovation and Opportunity Act funding shall be excluded from the fund and shall be exclusively administered by the La. Workforce Commission. Proposed law further provides that all state-appropriated Incumbent Working Training Account funds, workers' compensation funds, and Workers' Compensation Second Injury Fund funds shall be excluded from the fund and shall be exclusively administered by the La. Workforce Commission. Proposed law provides that the Board of Supervisors of Community and Technical Colleges shall, not less than 60 days before the legislature convenes for each regular session, submit an annual report to the house and senate committees 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. Effective upon signature of the governor or lapse of time for gubernatorial action. (Adds R.S. 17:1876) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Finance to the original bill 1. Clarifies that the fund is created in the state treasury as a special fund. 2. Provides that distribution of the monies in the fund are to be based on an outcome-based distribution model, which shall allocate funds based on short-term, high-demand workforce training completer programs. 3. Excludes all federal Workforce Innovation and Opportunity Act funding from the fund. 4. Excludes all state-appropriated Incumbent Working Training Account funds, workers' compensation funds, and Workers' Compensation Second Injury Fund funds from the fund. 5. Makes technical changes. 6. Provides the effective date of the Act shall be upon signature of the governor. Page 5 of 6 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 REENGROSSED Senate Floor Amendments to engrossed bill 1. Makes Legislative Bureau technical changes. 2. Provides donor intent shall guide the use of private matching funds and that the funds shall remain with the institution as provided for by the donor. Page 6 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.