Louisiana 2017 2017 Regular Session

Louisiana Senate Bill SB102 Comm Sub / Analysis

                    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.
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.
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.