(a)
(1)Beginning program year 2012, an amount equal to at least 25 percent of funds available under Title I of the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) provided to local workforce investment boards for adults and dislocated workers shall be spent on workforce training programs. This minimum may be met either by spending 25 percent of those base formula funds on training or by combining a portion of those base formula funds with leveraged funds as specified in subdivision (b).
(2)
Beginning program year 2016, an amount equal to at least 30 percent of funds available under Title I of the federal Workforce Innovation and Opportunity Act of 2014 (Public Law
113-128) provided to local workforce development boards for adults and dislocated workers shall be spent on workforce training programs. This minimum may be met either by spending 30 percent of those base formula funds on training or by combining a portion of those base formula funds with leveraged funds as specified in subdivision (b).
(3)
Expenditures that shall count toward the minimum percentage of funds shall include only training services as defined in Section 3174(c)(3)(D) of Title 29 of the United States Code and the corresponding sections of the Code of Federal Regulations, including all of the following:
(A)
Occupational skills training, including training for nontraditional employment.
(B)
On-the-job training.
(C)
Programs that combine
workplace training with related instruction, which may include cooperative education programs.
(D)
Training programs operated by the private sector.
(E)
Skill upgrading and retraining.
(F)
Entrepreneurial training.
(G)
Incumbent worker training in accordance with Section 3174(d)(4) of Title 29 of the United States Code.
(H)
Transitional jobs in accordance with Section 3174(d)(5) of Title 29 of the United States Code.
(I)
Job readiness training provided in combination with any of the services described in subparagraphs (A) to (H), inclusive.
(J)
Adult education
and literacy activities provided in combination with services described in any of subparagraphs (A) to (G), inclusive.
(K)
Customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training.
(b)
(1)Local workforce development boards may receive a credit of up to 10 percent of their adult and dislocated worker formula fund base allocations for public education and training funds and private resources from industry and from joint labor-management trusts that are leveraged by a local workforce development board for training services described in paragraph (3) of subdivision (a). This credit may be applied toward the minimum training requirements in paragraphs (1) and (2) of subdivision (a).
(A)
Leveraged funds
that may be applied toward the credit allowed by this subdivision shall only include the following:
(i)
Federal Pell Grants established under Title IV of the federal Higher Education Act of 1965 (20 U.S.C. Sec. 1070 et seq.).
(ii)
Programs authorized by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128).
(iii)Trade adjustment assistance.
(iv)
Department of Labor National Emergency Grants.
(v)
Match funds from employers, industry, and industry associations.
(vi)
Match funds from joint labor-management trusts.
(vii)Employment
training panel grants.
(B)
Credit for leveraged funds shall only be given if the local workforce development board keeps records of all training expenditures it chooses to apply to the credit. Training expenditures may only be applied to the credit if the relevant training costs can be independently verified by the Employment Development Department and training participants must be coenrolled in the federal Workforce Innovation and Opportunity Act of 2014 performance monitoring system.
(2)
The use of leveraged funds to partially meet the training requirements specified in paragraphs (1) and (2) of subdivision (a) is the prerogative of a local workforce development board. Costs arising from the recordkeeping required to demonstrate compliance with the leveraging requirements of this subdivision are the responsibility of the local board.
(c)
Beginning program year 2012, the Employment Development Department shall calculate for each local workforce development board, within six months after the end of the second program year of the two-year period of availability for expenditure of federal Workforce Innovation and Opportunity Act of 2014 funds, whether the local workforce development board met the requirements of subdivision (a). The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the expenditure requirements of subdivision (a).
(d)
A local workforce development area that does not meet the requirements of subdivision (a) shall submit a corrective action plan to the Employment Development Department that provides reasons for not meeting the requirements and describes actions taken to address the identified expenditure deficiencies. A
local workforce development area shall provide a corrective action plan to the Employment Development Department pursuant to this section within 90 days of receiving the calculations described in subdivision (c).
(e)
For the purpose of this section, “program year” has the same meaning as provided in Section 667.100 of Title 20 of the Code of Federal Regulations.