STATE OF NEW YORK ________________________________________________________________________ 10225 IN ASSEMBLY May 14, 2024 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Rozic) -- read once and referred to the Committee on Economic Development AN ACT to amend the economic development law and the New York state urban development corporation act, in relation to enacting the good jobs guarantee program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The economic development law is amended by adding a new 2 article 28 to read as follows: 3 ARTICLE 28 4 GOOD JOBS GUARANTEE PROGRAM 5 Section 500. Short title. 6 501. Legislative findings. 7 502. Good jobs guarantee program. 8 503. Definitions. 9 504. Program administration. 10 § 500. Short title. This article shall be known and may be cited as 11 the "good jobs guarantee program act". 12 § 501. Legislative findings. For many New Yorkers, there are few path- 13 ways to good jobs, and economic mobility is no longer attainable. Tradi- 14 tional paths are failing, and the system is broken. Over 76% of Ameri- 15 cans, which equates to 218+ million adults, do not have college degrees 16 even though most high-paying jobs require one. At the same time, the 17 United States is burdened by a $1.7 trillion student loan crisis because 18 college financing has decoupled from outcomes. The system is especially 19 stacked against low-income individuals and people of color. In New York 20 State, this problem persists: 60% of adults lack a 4-year degree and 21 degree holders owe $90 billion in loans. College is not the only path to 22 a good job - alternatives for workforce training exist. While these 23 models have high potential, limited funding and frameworks prevent them 24 from confronting this challenge and new models are needed to address the 25 scale. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15190-06-4
A. 10225 2 1 Accordingly, the Good Jobs Guarantee Program Act would establish a 2 program within the Empire State Development Corporation to facilitate 3 the implementation of workforce training for low-income New Yorkers 4 through a public-private partnership capped equity financing framework. 5 Core to the Good Jobs Guarantee program is ensuring that low-income New 6 Yorkers seeking economic opportunity are significantly better off upon 7 completing workforce training than they were before. Individuals who 8 participate in training programs under the Good Jobs Guarantee will not 9 be charged any tuition or upfront costs; they will only incur payment 10 obligations if the program actually succeeds in securing them employment 11 at high, family-sustaining wages. The bill also contains several 12 protections to ensure that participants can receive workforce training 13 for good paying jobs without being saddled by unduly burdensome debt. If 14 at any time after their training a participant is unable to maintain a 15 good job for any reason, the participant's payment obligations will 16 cease. This program shifts the burden away from the job seeker and onto 17 approved workforce training providers to achieve success. By bringing 18 this outcome-based financing model to scale, this bill aims to revolu- 19 tionize workforce training in New York and guarantee good jobs to low- 20 income New Yorkers. 21 § 502. Good jobs guarantee program. There is hereby established a good 22 jobs guarantee program to provide workforce training through approved 23 providers to enable participants to secure higher paying, sustainable 24 jobs with skills gained through the program. 25 § 503. Definitions. As used in this article, the following terms shall 26 have the following meanings: 27 1. "Approved provider" means an entity that is approved by the commis- 28 sioner to provide workforce training to eligible participants to enable 29 such individuals to secure post-training employment at an annual minimum 30 salary of fifty thousand dollars; 31 2. "Eligible participant" means an individual who applies for work- 32 force training offered through approved providers pursuant to this arti- 33 cle who, at the time of application: 34 (a) has a gross annual income of less than forty-five thousand dollars 35 per year; and 36 (b) is either (i) receiving assistance pursuant to section ninety-five 37 or one hundred fifty-eight of the social services law, or (ii) does not 38 possess a college degree. 39 3. "Program administrator" shall mean an individual or business 40 selected by the commissioner through competitive process to oversee the 41 good jobs guarantee program and guarantor fund. Such program administra- 42 tor shall have demonstrated experience in the following areas: (a) rais- 43 ing capital from institutional investors and philanthropic organizations 44 with focus on workforce development goals for low income individuals, 45 (b) implementing financial models to leverage private investment with 46 focus on workforce development goals for low income individuals, (c) 47 providing training with focus on workforce development goals for low 48 income individuals, and (d) any other criteria set by the commissioner. 49 § 504. Program administration. 1. (a) The program administrator may 50 deploy capital to approved providers for workforce training of eligible 51 participants in accordance with the provisions of this article. 52 (b) Approved providers may be in any employment field, subject to the 53 discretion of the program administrator. 54 (c) The program administrator shall deploy capital to an approved 55 provider for workforce training subject to the provisions of this arti-
A. 10225 3 1 cle and any other requirement as the commissioner shall deem necessary 2 and advisable. 3 (d) An approved provider shall secure post-training employment for a 4 participant who completes a workforce training program. 5 (e) An approved provider shall not consider the credit worthiness of 6 any applicant in determining eligibility for participation in the 7 program. 8 2. (a) The approved provider shall enter into contracts with eligible 9 participants which shall stipulate that participants shall only incur 10 payment obligations for the costs of a training program based on such 11 participant's monthly salary following completion of a workforce train- 12 ing program and subsequently securing employment with an annual salary 13 in excess of fifty thousand dollars. 14 (b) For purposes of this subdivision "annual salary" shall not include 15 a spouse's income, retirement pensions and annuities, social security 16 benefits, sources of state and federal aid including, but not limited 17 to, unemployment programs, disaster relief programs, Medicare or Medi- 18 caid benefits, economic impact payments, earned income tax credits, 19 child tax credits, other income excluded as taxable by the federal 20 internal revenue service, passive income not related to the full-time 21 employment, and any other sources as determined by the commissioner. 22 (c) Eligible participants shall not be required to pay tuition or 23 other upfront payments in exchange for receiving training under the good 24 jobs guarantee program, except as otherwise provided in this section. 25 3. (a) Payment obligations, pursuant to contracts entered into under 26 the program, shall be made to the approved provider on a monthly basis 27 at a variable percentage of an eligible participant's salary, but the 28 variable percentage shall not exceed twenty percent of the eligible 29 participant's total annual salary. 30 (b) The maximum repayment period shall not exceed eight years from the 31 start of training, and contracts between approved providers and eligible 32 participants shall stipulate a total payment obligation amount. 33 (c) The program administrator shall establish an allowance for hard- 34 ship exceptions totaling a minimum of three months of late or excused 35 payments. Any fees established for late payments shall not exceed five 36 percent of the monthly payment obligation amount. 37 (d) No interest shall accrue on any obligations due. 38 (e) Payment obligations shall not be structured as an outcome-based 39 financing loan to participants in the program. 40 (f) There shall be no restrictions on the type or field of employment 41 a participant may accept following completion of a workforce training 42 program under this article. 43 § 2. Section 1 of chapter 174 of the laws of 1968, constituting the 44 New York state urban development corporation act, is amended by adding a 45 new section 60 to read as follows: 46 § 60. New York state good jobs program guarantor fund. 1. Definitions. 47 (a) For the purposes of this section the terms "approved provider" and 48 "program administrator" shall have the meanings set forth in article 28 49 of the economic development law. 50 (b) "Guarantor fund" shall mean a fund totaling one hundred million 51 dollars for the purpose of a credit enhancement to attract investment in 52 private markets managed by the program administrator under the good jobs 53 guarantee program. The guarantor fund shall not be used for direct 54 investment to approved providers. 55 (c) "Commissioner" shall mean the commissioner of economic develop- 56 ment.
A. 10225 4 1 2. Good jobs program guarantor fund. The corporation, or its agent, 2 shall establish a good jobs program guarantor fund to provide a minimum 3 loss reserve to act as a credit enhancement for funds raised by the 4 program administrator to assist approved providers offering workforce 5 training pursuant to article 28 of the economic development law. 6 Further, the corporation shall provide approval for the disbursements of 7 the good jobs program guarantor fund by the program administrator. 8 Disbursements from the fund shall only be made if the terms of a good 9 jobs guarantee program contract as agreed to by such program administra- 10 tor and an approved provider cannot be met and shall be subject to the 11 approval of the commissioner. 12 3. Administration of the good jobs program guarantor fund. (a) The 13 corporation is hereby authorized to: 14 (i) enter into a contract with a program administrator to act as an 15 agent of the corporation with respect to the administration of the good 16 jobs guarantee program and guarantor fund, provided that the corporation 17 shall provide approval for disbursements of the guarantor fund; 18 (ii) conduct an annual review and assessment of the performance of 19 such program administrator in its capacity as an agent of the corpo- 20 ration, to determine whether the contract for the services of the 21 program administrator should be renewed. Such review shall be based on 22 whether such program administrator has satisfactorily met the terms and 23 conditions of such contract; 24 (iii) allow such program administrator the opportunity to make correc- 25 tive action where an initial determination has been made that such 26 program administrator's performance is unsatisfactory; and 27 (iv) submit to the speaker of the assembly and the temporary president 28 of the senate the corporation's recommendation to terminate such 29 contract with the program administrator upon a final review of such 30 program administrator's performance and conclusion that such program 31 administrator's performance is unsatisfactory. The corporation shall 32 begin a competitive bid process to select a new program administrator 33 upon the termination of such contract. 34 (b) Any contract entered into pursuant to subparagraph (i) of para- 35 graph (a) of this subdivision shall: 36 (i) be for a period of ten years and shall be renewed for an addi- 37 tional ten-year period subject to the provisions of subparagraph (ii) of 38 paragraph (a) of this subdivision; and 39 (ii) provide for compensation of expenses in accordance with reason- 40 able market standards incurred by the program administrator in 41 connection with such services provided by the program administrator and 42 for such other services as the corporation may deem necessary including, 43 but not limited to, the use of premises, personnel, technical assistance 44 and personal property of such program administrator. 45 4. Duties of the program administrator. The program administrator 46 shall: 47 (a) structure and raise capital from private, philanthropic, and 48 public investors using the guarantor fund as a credit enhancement. Such 49 capital raised shall be used to support workforce training provided 50 under the good jobs guarantee program; 51 (b) enter into contracts with approved providers to deploy capital 52 raised to approved providers to support workforce training under the 53 good jobs guarantee program pursuant to article 28 of the economic 54 development law and manage the investment returns; and 55 (c) perform any other duties as deemed necessary by the commissioner.
A. 10225 5 1 5. Rules and regulations. The commissioner may adopt any rules or 2 regulations necessary to effectuate the purposes of this section. 3 § 3. This act shall take effect on the ninetieth day after it shall 4 have become a law. Effective immediately, the addition, amendment and/or 5 repeal of any rule or regulation necessary for the implementation of 6 this act on its effective date are authorized to be made and completed 7 on or before such effective date.