AB 1534: Federal Workforce Pell Grant program: local workforce development boards: participant training requirement.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2026-09-27
Current Status:
Passed
(2026-09-27: Chaptered by Secretary of State - Chapter 519, Statutes of 2026.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
(1)Beginning on July 1, 2026, for the financial aid award year of 202627 and each award year thereafter, existing federal law establishes the federal Workforce Pell Grant program to award grants to eligible students who are enrolled, or accepted for enrollment, in a short-term educational program that, among other things, provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations, as provided.
Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California.
Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.
This bill would prohibit a postsecondary educational institution from disbursing federal Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and advertising, marketing, or informing students about the availability of those funds unless the institution has (A) obtained authorization from the commission, on behalf of the Governor, that the institution meets the requirements of specified provisions related to the federal Workforce Pell Grant program, and (B) obtained approvals and met all requirements set forth by the United States Department of Education.
This bill would prohibit the commission from authorizing a postsecondary educational institution to receive federal Workforce Pell Grant program funds for a short-term program if the institution, among other things, partners, contracts, or affiliates with an entity that is not accredited by a specified accrediting agency, as provided. The bill would authorize the commission to use the California Priority Programs List to determine whether a short-term program satisfies specified requirements under the federal Workforce Pell Grant program, as provided.
(2)Existing federal law, the Workforce Innovation and Opportunity Act (WIOA), provides for workforce development activities, including activities in which states may participate. Existing state law, the California Workforce Innovation and Opportunity Act (CalWIOA), establishes the California Workforce Development Board to assist the Governor in the development, oversight, and continuous improvement of Californias workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. CalWIOA creates the Consolidated Work Program Fund in the State Treasury, for the receipt of all moneys deposited pursuant to WIOA and requires moneys in the fund to be made available, upon appropriation by the Legislature, to the Employment Development Department for expenditure consistent with the purposes of WIOA.
Existing law contains various programs for job training and employment investment, including work incentive programs, as specified, and establishes local workforce investment boards to perform duties related to the implementation and coordination of local workforce investment activities. Existing law requires local workforce investment boards to spend a minimum percentage of specified funds for adults and dislocated workers on federally identified workforce training programs and allows the boards to leverage specified funds to meet the funding requirements, as specified. Existing law requires a local workforce development area that does not meet the expenditure requirements to 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. Existing law also requires the department to calculate for each local workforce development board whether the local workforce development board met the expenditure requirements and make annual reports regarding the training and supportive services expenditures.
This bill, starting July 1, 2028, instead of requiring the local workforce development boards to spend a minimum percentage of specified funds for adults and dislocated workers, would require the boards to ensure that at least 50% of participants enrolled in the adult and dislocated worker programs receive workforce training services, and would prescribe the training services that count toward the participant training requirement. The bill would require a local workforce development area that does not meet the participant training requirement to submit a corrective action plan to the Employment Development Department that provides reasons for not meeting that requirement and describes actions taken to address the identified participant training deficiencies. By imposing new requirements on local workforce development boards, the bill would impose a state-mandated local program. The bill would require the Employment Development Department to calculate for each local workforce development board, among other things, whether the local workforce development board met the participant training requirement and make annual reports regarding the number of participants enrolled in adult and dislocated worker program, the percentage of those enrolled participants receiving training services, and the training expenditures and supportive service expenditures made by local workforce development boards, as specified. The bill would also make nonsubstantive conforming changes.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Beginning on July 1, 2026, for the financial aid award year of 202627 and each award year thereafter, existing federal law establishes the federal Workforce Pell Grant program to award grants to eligible students who are enrolled, or accepted for enrollment, in a short-term educational program that, among other things, provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations, as provided.
Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California.
Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.
This bill would prohibit a postsecondary educational institution from disbursing federal Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and advertising, marketing, or informing students about the availability of those funds unless the institution has (A) obtained authorization from the commission, on behalf of the Governor, that the institution meets the requirements of specified provisions related to the federal Workforce Pell Grant program, and (B) obtained approvals and met all requirements set forth by the United States Department of Education.
This bill would prohibit the commission from authorizing a postsecondary educational institution to receive federal Workforce Pell Grant program funds for a short-term program if the institution, among other things, partners, contracts, or affiliates with an entity that is not accredited by a specified accrediting agency, as provided. The bill would authorize the commission to use the California Priority Programs List to determine whether a short-term program satisfies specified requirements under the federal Workforce Pell Grant program, as provided.
(2)Existing federal law, the Workforce Innovation and Opportunity Act (WIOA), provides for workforce development activities, including activities in which states may participate. Existing state law, the California Workforce Innovation and Opportunity Act (CalWIOA), establishes the California Workforce Development Board to assist the Governor in the development, oversight, and continuous improvement of Californias workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. CalWIOA creates the Consolidated Work Program Fund in the State Treasury, for the receipt of all moneys deposited pursuant to WIOA and requires moneys in the fund to be made available, upon appropriation by the Legislature, to the Employment Development Department for expenditure consistent with the purposes of WIOA.
Existing law contains various programs for job training and employment investment, including work incentive programs, as specified, and establishes local workforce investment boards to perform duties related to the implementation and coordination of local workforce investment activities. Existing law requires local workforce investment boards to spend a minimum percentage of specified funds for adults and dislocated workers on federally identified workforce training programs and allows the boards to leverage specified funds to meet the funding requirements, as specified. Existing law requires a local workforce development area that does not meet the expenditure requirements to 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. Existing law also requires the department to calculate for each local workforce development board whether the local workforce development board met the expenditure requirements and make annual reports regarding the training and supportive services expenditures.
This bill, starting July 1, 2028, instead of requiring the local workforce development boards to spend a minimum percentage of specified funds for adults and dislocated workers, would require the boards to ensure that at least 50% of participants enrolled in the adult and dislocated worker programs receive workforce training services, and would prescribe the training services that count toward the participant training requirement. The bill would require a local workforce development area that does not meet the participant training requirement to submit a corrective action plan to the Employment Development Department that provides reasons for not meeting that requirement and describes actions taken to address the identified participant training deficiencies. By imposing new requirements on local workforce development boards, the bill would impose a state-mandated local program. The bill would require the Employment Development Department to calculate for each local workforce development board, among other things, whether the local workforce development board met the participant training requirement and make annual reports regarding the number of participants enrolled in adult and dislocated worker program, the percentage of those enrolled participants receiving training services, and the training expenditures and supportive service expenditures made by local workforce development boards, as specified. The bill would also make nonsubstantive conforming changes.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Beginning on July 1, 2026, for the financial aid award year of 202627 and each award year thereafter, existing federal law establishes the federal Workforce Pell Grant program to award grants to eligible students who are enrolled, or accepted for enrollment, in a short-term educational program that, among other things, provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations, as provided.
Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California.
Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.
This bill would prohibit a postsecondary educational institution from disbursing federal Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and advertising, marketing, or informing students about the availability of those funds unless the institution has (A) obtained authorization from the commission, on behalf of the Governor, that the institution meets the requirements of specified provisions related to the federal Workforce Pell Grant program, and (B) obtained approvals and met all requirements set forth by the United States Department of Education.
This bill would prohibit the commission from authorizing a postsecondary educational institution to receive federal Workforce Pell Grant program funds for a short-term program if the institution, among other things, partners, contracts, or affiliates with an entity that is not accredited by a specified accrediting agency, as provided. The bill would authorize the commission to use the California Priority Jobs Credentials Programs List to determine whether a short-term program satisfies specified requirements under the federal Workforce Pell Grant program, as provided.
(2)Existing federal law, the Workforce Innovation and Opportunity Act (WIOA), provides for workforce development activities, including activities in which states may participate. Existing state law, the California Workforce Innovation and Opportunity Act (CalWIOA), establishes the California Workforce Development Board to assist the Governor in the development, oversight, and continuous improvement of Californias workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. CalWIOA creates the Consolidated Work Program Fund in the State Treasury, for the receipt of all moneys deposited pursuant to WIOA and requires moneys in the fund to be made available, upon appropriation by the Legislature, to the Employment Development Department for expenditure consistent with the purposes of WIOA.
Existing law contains various programs for job training and employment investment, including work incentive programs, as specified, and establishes local workforce investment boards to perform duties related to the implementation and coordination of local workforce investment activities. Existing law requires local workforce investment boards to spend a minimum percentage of specified funds for adults and dislocated workers on federally identified workforce training programs and allows the boards to leverage specified funds to meet the funding requirements, as specified. Existing law requires a local workforce development area that does not meet the expenditure requirements to 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. Existing law also requires the department to calculate for each local workforce development board whether the local workforce development board met the expenditure requirements and make annual reports regarding the training and supportive services expenditures.
This bill, starting July 1, 2028, instead of requiring the local workforce development boards to spend a minimum percentage of specified funds for adults and dislocated workers, would require the boards to ensure that at least 50% of participants enrolled in the adult and dislocated worker programs receive workforce training services, and would prescribe the training services that count toward the participant training requirement. The bill would require a local workforce development area that does not meet the participant training requirement to submit a corrective action plan to the Employment Development Department that provides reasons for not meeting that requirement and describes actions taken to address the identified participant training deficiencies. By imposing new requirements on local workforce development boards, the bill would impose a state-mandated local program. The bill would require the Employment Development Department to calculate for each local workforce development board, among other things, whether the local workforce development board met the participant training requirement and make annual reports regarding the number of participants enrolled in adult and dislocated worker program, the percentage of those enrolled participants receiving training services, and the training expenditures and supportive service expenditures made by local workforce development boards, as specified. The bill would also make nonsubstantive conforming changes.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Beginning on July 1, 2026, for the financial aid award year of 202627 and each award year thereafter, existing federal law establishes the federal Workforce Pell Grant program to award grants to eligible students who are enrolled, or accepted for enrollment, in a short-term educational program that, among other things, provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations, as provided.
Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California.
Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.
This bill would prohibit a campus of the University of California, the California State University, or the California Community Colleges postsecondary educational institution from disbursing federal Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and advertising, marketing, or informing students about the availability of those funds unless the institution has (A) obtained authorization from the commission, on behalf of the Governor, that the institution meets the requirements of specified provisions related to the federal Workforce Pell Grant program, and (B) obtained approvals and met all requirements set forth by the United States Department of Education.
This bill would prohibit the commission from authorizing a public postsecondary educational institution to receive federal Workforce Pell Grant program funds for a short-term program if the institution, among other things, partners, contracts, or affiliates with an entity that is not accredited by a specified accrediting agency, as provided. The bill would authorize the commission to use the California Priority Jobs Credentials List to determine whether a short-term program satisfies specified requirements under the federal Workforce Pell Grant program, as provided.
(2)Existing federal law, the Workforce Innovation and Opportunity Act (WIOA), provides for workforce development activities, including activities in which states may participate. Existing state law, the California Workforce Innovation and Opportunity Act (CalWIOA), establishes the California Workforce Development Board to assist the Governor in the development, oversight, and continuous improvement of Californias workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. CalWIOA creates the Consolidated Work Program Fund in the State Treasury, for the receipt of all moneys deposited pursuant to WIOA and requires moneys in the fund to be made available, upon appropriation by the Legislature, to the Employment Development Department for expenditure consistent with the purposes of WIOA.
Existing law contains various programs for job training and employment investment, including work incentive programs, as specified, and establishes local workforce investment boards to perform duties related to the implementation and coordination of local workforce investment activities. Existing law requires local workforce investment boards to spend a minimum percentage of specified funds for adults and dislocated workers on federally identified workforce training programs and allows the boards to leverage specified funds to meet the funding requirements, as specified. Existing law requires a local workforce development area that does not meet the expenditure requirements to 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. Existing law also requires the department to calculate for each local workforce development board whether the local workforce development board met the expenditure requirements and make annual reports regarding the training and supportive services expenditures.
This bill, starting July 1, 2028, instead of requiring the local workforce development boards to spend a minimum percentage of specified funds for adults and dislocated workers, would require the boards to ensure that at least 50% of participants enrolled in the adult and dislocated worker programs receive workforce training services, and would prescribe the training services that count toward the participant training requirement. The bill would require a local workforce development area that does not meet the participant training requirement to submit a corrective action plan to the Employment Development Department that provides reasons for not meeting that requirement and describes actions taken to address the identified participant training deficiencies. By imposing new requirements on local workforce development boards, the bill would impose a state-mandated local program. The bill would require the Employment Development Department to calculate for each local workforce development board board, among other things, whether the local workforce development board met the participant training requirement and make annual reports regarding the aggregate number of participants enrolled in adult and dislocated worker programs and program, the percentage of those enrolled participants receiving training services. services, and the training expenditures and supportive service expenditures made by local workforce development boards, as specified. The bill would also make nonsubstantive conforming changes.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Beginning on July 1, 2026, for the financial aid award year of 202627 and each award year thereafter, existing federal law establishes the federal Workforce Pell Grant program to award grants to eligible students who are enrolled, or accepted for enrollment, in a short-term educational program that, among other things, provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations, as provided.
Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California.
Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.
This bill, beginning on July 1, 2026, bill would prohibit a campus of the University of California, the California State University, or the California Community Colleges, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance Colleges from disbursing federal Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and advertising, marketing, or informing students about the availability of those funds unless the institution has (1) (A) obtained authorization from the Governor commission, on behalf of the Governor, that the institution meets the requirements of specified provisions related to the federal Workforce Pell Grant program, and (2) (B) obtained approvals and met all requirements set forth by the United States Department of Education. The bill would require a postsecondary educational institution seeking a determination that one or more of its short-term programs meets the requirements of the federal Workforce Pell Grant program to provide to the Governor, among other things, certification with any applicable verification required by the Governor that is sufficient to demonstrate that for each federal aid award year, the short-term program meets specified criteria related to its short-term program, as provided.
This bill would prohibit the Governor commission from authorizing a public postsecondary educational institution to receive federal Workforce Pell Grant program funds for a short-term program unless, among other things, the Governor determines that the short-term program meets the requirements of the above-described federal provisions and the Governor consults with the Labor and Workforce Development Agency and an advisory board, which the bill would establish. The bill would require a postsecondary educational institution to ensure that any confidential student information collected for purposes of the bill is only disclosed to the Governor or relevant state entities. The bill would authorize the Labor and Workforce Development Agency to adopt rules and regulations to implement the bill as it deems necessary. if the institution, among other things, partners, contracts, or affiliates with an entity that is not accredited by a specified accrediting agency, as provided. The bill would authorize the commission to use the California Priority Jobs Credentials List to determine whether a short-term program satisfies specified requirements under the federal Workforce Pell Grant program, as provided.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.This bill would declare that it is to take effect immediately as an urgency statute.(2)Existing federal law, the Workforce Innovation and Opportunity Act (WIOA), provides for workforce development activities, including activities in which states may participate. Existing state law, the California Workforce Innovation and Opportunity Act (CalWIOA), establishes the California Workforce Development Board to assist the Governor in the development, oversight, and continuous improvement of Californias workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. CalWIOA creates the Consolidated Work Program Fund in the State Treasury, for the receipt of all moneys deposited pursuant to WIOA and requires moneys in the fund to be made available, upon appropriation by the Legislature, to the Employment Development Department for expenditure consistent with the purposes of WIOA.
Existing law contains various programs for job training and employment investment, including work incentive programs, as specified, and establishes local workforce investment boards to perform duties related to the implementation and coordination of local workforce investment activities. Existing law requires local workforce investment boards to spend a minimum percentage of specified funds for adults and dislocated workers on federally identified workforce training programs and allows the boards to leverage specified funds to meet the funding requirements, as specified. Existing law requires a local workforce development area that does not meet the expenditure requirements to 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. Existing law also requires the department to calculate for each local workforce development board whether the local workforce development board met the expenditure requirements and make annual reports regarding the training and supportive services expenditures.
This bill, starting July 1, 2028, instead of requiring the local workforce development boards to spend a minimum percentage of specified funds for adults and dislocated workers, would require the boards to ensure that at least 50% of participants enrolled in the adult and dislocated worker programs receive workforce training services, and would prescribe the training services that count toward the participant training requirement. The bill would require a local workforce development area that does not meet the participant training requirement to submit a corrective action plan to the Employment Development Department that provides reasons for not meeting that requirement and describes actions taken to address the identified participant training deficiencies. By imposing new requirements on local workforce development boards, the bill would impose a state-mandated local program. The bill would require the Employment Development Department to calculate for each local workforce development board whether the local workforce development board met the participant training requirement and make annual reports regarding the aggregate number of participants enrolled in adult and dislocated worker programs and the percentage of those enrolled participants receiving training services. The bill would also make nonsubstantive conforming changes.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Beginning on July 1, 2026, for the financial aid award year of 202627 and each award year thereafter, existing federal law establishes the federal Workforce Pell Grant program to award grants to eligible students who are enrolled, or accepted for enrollment, in a short-term educational program that, among other things, provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations, as provided.
Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California.
This bill, beginning on July 1, 2026, would prohibit a campus of the University of California, the California State University, or the California Community Colleges, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance from disbursing federal Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and advertising, marketing, or informing students about the availability of those funds unless the institution has (1) obtained authorization from the Governor that the institution meets the requirements of the federal Workforce Pell Grant program, and (2) obtained approvals and met all requirements set forth by the United States Department of Education. The bill would require a postsecondary educational institution seeking a determination that one or more of its short-term programs meets the requirements of the federal Workforce Pell Grant program to provide to the Governor, among other things, certification with any applicable verification required by the Governor that is sufficient to demonstrate that for each federal aid award year, the short-term program meets specified criteria related to its short-term program, as provided.
This bill would prohibit the Governor from authorizing a postsecondary educational institution to receive federal Workforce Pell Grant program funds for a short-term program unless, among other things, the Governor determines that the short-term program meets the requirements of the above-described federal provisions and the Governor consults with the Labor and Workforce Development Agency and an advisory board, which the bill would establish. The bill would require a postsecondary educational institution to ensure that any confidential student information collected for purposes of the bill is only disclosed to the Governor or relevant state entities. The bill would authorize the Labor and Workforce Development Agency to adopt rules and regulations to implement the bill as it deems necessary.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
This bill would declare that it is to take effect immediately as an urgency statute.
Beginning on July 1, 2026, for the financial aid award year of 202627 and each award year thereafter, existing federal law establishes the federal Workforce Pell Grant program to award grants to eligible students who are enrolled, or accepted for enrollment, in a short-term educational program that, among other things, provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations, as provided.
Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California.
This bill, beginning on July 1, 2026, would prohibit a campus of the University of California, the California State University, or the California Community Colleges, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance from disbursing federal Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and advertising, marketing, or informing students about the availability of those funds unless the institution has (1) obtained authorization from an unspecified state entity the Governor that the institution meets the requirements of the federal Workforce Pell Grant program, and (2) obtained approvals and met all requirements set forth by the United States Department of Education. The bill would require a participating postsecondary educational institution seeking a determination that one or more of its short-term programs meets the requirements of the federal Workforce Pell Grant program to provide to the unspecified state entity, Governor, among other things, certification under penalty of perjury with any applicable verification required by the unspecified state entity Governor that is sufficient to demonstrate that for each federal aid award year, the short-term program meets specified criteria related to its short-term program, as provided. By expanding the crime of perjury, the bill would impose a state-mandated local program.
This bill would prohibit the unspecified state entity Governor from authorizing a participating postsecondary educational institution to receive federal Workforce Pell Grant program funds for a short-term program unless, among other things, the unspecified state entity Governor determines that the short-term program meets the requirements of the above-described federal provisions and the unspecified state entity Governor consults with the Labor and Workforce Development Agency and an advisory board, which the bill would establish. The bill would require a participating postsecondary educational institution to ensure that any confidential student information collected for purposes of the bill is only disclosed to the unspecified state entity. Governor or relevant state entities. The bill would authorize the unspecified state entity Labor and Workforce Development Agency to adopt rules and regulations to implement the bill as it deems necessary.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Beginning on July 1, 2026, for the financial aid award year of 202627 and each award year thereafter, existing federal law establishes the federal Workforce Pell Grant program to award grants to eligible students who are enrolled, or accepted for enrollment, in a short-term educational program that, among other things, provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations, as provided.
This bill, beginning on July 1, 2026, would prohibit a campus of the University of California, the California State University, or the California Community Colleges, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance from disbursing federal Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and advertising, marketing, or informing students about the availability of those funds unless the institution has (1) obtained authorization from an unspecified state entity that the institution meets the requirements of the federal Workforce Pell Grant program, and (2) obtained approvals and met all requirements set forth by the United States Department of Education. The bill would require a participating institution seeking a determination that one or more of its short-term programs meets the requirements of the federal Workforce Pell Grant program to provide to the unspecified state entity, among other things, certification under penalty of perjury with any applicable verification required by the unspecified state entity that is sufficient to demonstrate that for each federal aid award year, the short-term program meets specified criteria related to its short-term program, as provided. By expanding the crime of perjury, the bill would impose a state-mandated local program.
This bill would prohibit the unspecified state entity from authorizing a participating institution to receive federal Workforce Pell Grant program funds for a short-term program unless, among other things, the unspecified state entity determines that the short-term program meets the requirements of the above-described federal provisions and the unspecified state entity consults with an advisory board, which the bill would establish. The bill would require a participating institution to ensure that any confidential student information collected for purposes of the bill is only disclosed to the unspecified state entity. The bill would authorize the unspecified state entity to adopt rules and regulations to implement the bill as it deems necessary.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
(a)The Legislature finds and declares all of the following:
(1)The federal Workforce Pell Grant program (Public Law 119-21) allows funding to be used for certain short-term workforce training programs that demonstrate positive employment and earnings outcomes.
(2)In implementing the federal Workforce Pell Grant program, states may impose standards to protect students from financially risky, low-quality, or fraudulent short-term programs and to protect students from incurring debt they cannot repay.
(3)Title I of the federal Workforce Innovation and Opportunity Act (WIOA) of 2014 (Public Law 113-128) provides another funding stream for workforce training services for adults and dislocated workers.
(4)A report commissioned by the California Workforce Development Board in 2022 found that Californias WIOA-enrolled participants who received targeted training services were significantly more likely to find employment and earn higher wages compared to those who only received basic career services.
(5)Encouraging more participants to receive training, rather than spending more dollars on training, will increase access to high-quality, no-cost or low-cost workforce training and education offered through community colleges and adult schools, and deepen collaborations between local workforce development boards and community colleges.
(6)A participant training requirement will leverage federal Workforce Pell Grant program funds as a new funding stream to support training that would allow more WIOA dollars to be spent on supports and services to increase participants completion and job placement.
(b)It is the intent of the Legislature to expand access to high-quality workforce training opportunities by defining standards for short-term programs to be eligible for the federal Workforce Pell Grant program and requiring an increase in participants that receive workforce training services under Title I of WIOA.
SEC. 2.Section 69870.5 is added to the Education Code, to read:69870.5.A postsecondary educational institution shall not disburse Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and shall not advertise, market, or inform students about the availability of those funds, unless the institution has met both of the following:
(a)Obtained authorization from the commission, on behalf of the Governor, pursuant to this article.
(b)Obtained approvals and met all requirements set forth by the United States Department of Education.
SEC. 3.Section 69871.5 is added to the Education Code, to read:69871.5.The commission shall not authorize a postsecondary educational institution to receive Workforce Pell Grant program funds for a short-term program if the institution does any of the following:
(a)Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the United States Department of Education and that provides the instructors for the instruction of the short-term program, unless one of the following applies:
(1)The institution partners, contracts, or affiliates with the entity for the purpose of offering instruction for a registered apprenticeship program.
(2)The short-term program has a contract education agreement with a participating community college and a provider pursuant to Section 78021, provided that both the institution and the short-term program meet all applicable federal Title IV (20 U.S.C. Sec. 1070 et seq.) and Workforce Pell Grant program requirements.
(3)The institution meets all of the following requirements:
(A)Clearly and prominently discloses, and ensures that the entity clearly and prominently discloses, that the entity is a company that is separate from the institution and a description of all of the services that the entity is contracted to provide for the institution in all of the following places:
(i)On the institutions internet website and any internet website controlled by the entity that is related to the institutions short-term program.
(ii)In marketing materials used by the institution or the entity about the short-term program.
(iii)In oral communications with prospective students of the short-term program that are made by the institution or the entity.
(B)Ensures the entity is not paid using incentive compensation or tuition sharing with the institution.
(C)Ensures the entity does not exercise authority of any kind over the institutions governance or decisionmaking processes, including participation in any deliberative or decisionmaking committee, task force, or other body, related to the design or development of course curriculum or instruction, setting of short-term program admission standards, determining enrollment targets, or creation of new short-term programs. The entity may provide consultation or technical assistance in an advisory capacity only, and the institution shall retain sole and independent authority for all final decisions.
(b)Offers or affiliates with a company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.
(c)(1)Charges tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant program funds available for a student in the short-term program, as determined by the Secretary of the United States Department of Education, for the period of time that the program is offered.
(2)Paragraph (1) shall not apply to any portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount if that excess amount is paid on behalf of the student by an employer, a labor-management partnership, or another third party, provided that the third party is not a lender or an offeror of a private education loan or other credit product for which the student bears any responsibility for repayment.
SEC. 4.Section 69873.5 is added to the Education Code, to read:69873.5.(a)The commission may use the California Priority Programs List to determine whether a short-term program satisfies the following requirements under the Workforce Pell Grant program:
(1)Provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations.
(2)Meets the hiring requirements of employers in high-skill, high-wage, or in-demand sectors or occupations.
(3)Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards students with the credential upon completion of the short-term program.
(b)The Labor and Workforce Development Agency may enter into a data-sharing agreement with the Office of Cradle-to-Career Data to the extent it is necessary to establish and maintain the California Priority Programs List.
SEC. 5.Section 14017.1 of the Unemployment Insurance Code is amended to read:14017.1.(a)To ensure that job training services investments are linked to regional labor market demand and provide opportunities for upward mobility, the board and the Employment Development Department shall work collaboratively to measure and report on training-related job placement outcomes for individuals receiving job training services provided through the workforce system, including all job training services funded by Title I of the federal Workforce Innovation and Opportunity Act (Pub. L. 113-128) and through grants administered by the board, regardless of the source of the moneys.
(b)For purposes of measuring training-related job placement outcomes, gathering data to report, and otherwise fulfilling subdivision (a), the board and the Employment Development Department shall work collaboratively to create a plan to use the existing unemployment insurance tax data collection infrastructure used to secure quarterly wage data from employers, to match relevant employee occupational data, employee place of employment data, and employee hours worked data, to persons who enroll in job training services. The plan shall include timelines, budget, funding constraints, and an outline of any additional recommended or necessary statutory changes to collect relevant data. The plan shall also outline the means for all of the following:
(1)Requiring local workforce development boards and grantees of board-administered grants to collect and report industry and occupation-specific data for all persons who enroll in job training services, including through the use of case management and performance reporting systems deployed for state and federal data collection and reporting.
(2)Developing and implementing a method to measure the second- and fourth-quarter prior earnings of a person, who is enrolled in a job training service, for purposes of measuring the persons increase in earnings following their participation in and exit from a program.
(3)Developing and implementing a means to measure wage and employment outcomes for a person following that persons participation in a job training service during the second, fourth, eighth, and twelfth quarters following participation in and exit from a program for purposes of measuring the persons increase in earnings over time.
(4)Calculating, by region, industry, occupation, and job training service provider, the wages, wage gains, employment rates, and training-related job placement rates at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(5)Calculating, by region, industry, occupation, and job training service provider, the rate of persons who participated in a job training service and who became employed at a wage at or above a living wage for the region. This calculation shall take into account the cost of living in the regional labor market where the person works or lives. The employment rate calculation shall be calculated at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(6)Calculating program completion, credential attainment, and measurable skills gains rates by job training service provider, industry, occupation, and region.
(7)Determining, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and measurable skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gain that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person works or lives.
(8)Developing and implementing a means of working with the local workforce development boards to notify, prior to their enrollment in a job training service, a person seeking to enroll in those services of the boards and Employment Development Departments findings on the efficacy of those services, particularly with respect to the likelihood of training-related job placement, the likelihood of job placement at or above a regional living wage, and the likelihood of wage gains at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program. Those findings shall be disaggregated by region, job training services provider, industry, and occupation.
(9)The board and the Employment Development Department shall, in compliance with Section 9795 of the Government Code, submit the plan to the Legislature no later than January 1, 2024.
(c)(1)Upon appropriation by the Legislature, the Employment Development Department and the board shall implement the plan developed pursuant to subdivision (b) to meet the reporting requirements of this chapter. Two years after the appropriation, the Employment Development Department and the board shall summarize and provide to the Legislature an initial report on the status of the implementation plan and the initial findings using the available data in alignment with subdivision (b).
(2)The report and findings required by paragraph (1) shall be provided to the Senate Committee on Business, Professions and Economic Development, Assembly Committee on Business and Professions, Senate Committee on Education, Assembly Committee on Education, Senate Committee on Labor, Public Employment and Retirement, and Assembly Committee on Labor and Employment. The report shall not include any personally identifiable information.
(3)Following the initial report in paragraph (1), the board and Employment Development Department shall annually update and include their findings in the report required to be submitted to the Legislature by subdivision (c) of Section 14211.
(4)If any portion of the reporting requirements of this section cannot be implemented absent further statutory change, the remaining requirements shall continue to be in effect.
(d)For purposes of this section, both of the following definitions shall apply:
(1)Job training services has the same meaning as training services, as that term is 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, and as that term is expanded on in paragraph (3) of subdivision (a) of Section 14211.
(2)Local workforce development board means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.
(3)Participation in a job training service shall mean participation in, but not necessarily completion of, the service.
(4)Program means a program under Title I of the federal Workforce Innovation and Opportunity Act or a grant program administered by the California Workforce Development Board.
(5)Training-related job placement means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.
(e)This section shall remain in effect only until July 1, 2028, and as of that date is repealed.
SEC. 6.Section 14017.1 is added to the Unemployment Insurance Code, to read:14017.1.(a)To ensure that job training services investments are linked to regional labor market demand and provide opportunities for upward mobility, the board and the Employment Development Department shall work collaboratively to measure and report on training-related job placement outcomes for individuals receiving job training services provided through the workforce system, including all job training services funded by Title I of the federal Workforce Innovation and Opportunity Act (Pub. L. 113-128) and through grants administered by the board, regardless of the source of the moneys.
(b)For purposes of measuring training-related job placement outcomes, gathering data to report, and otherwise fulfilling subdivision (a), the board and the Employment Development Department shall work collaboratively to create a plan to use the existing unemployment insurance tax data collection infrastructure used to secure quarterly wage data from employers, to match relevant employee occupational data, employee place of employment data, and employee hours worked data, to persons who enroll in job training services. The plan shall include timelines, budget, funding constraints, and an outline of any additional recommended or necessary statutory changes to collect relevant data. The plan shall also outline the means for all of the following:
(1)Requiring local workforce development boards and grantees of board-administered grants to collect and report industry and occupation-specific data for all persons who enroll in job training services, including through the use of case management and performance reporting systems deployed for state and federal data collection and reporting.
(2)Developing and implementing a method to measure the second- and fourth-quarter prior earnings of a person, who is enrolled in a job training service, for purposes of measuring the persons increase in earnings following their participation in and exit from a program.
(3)Developing and implementing a means to measure wage and employment outcomes for a person following that persons participation in a job training service during the second, fourth, eighth, and twelfth quarters following participation in and exit from a program for purposes of measuring the persons increase in earnings over time.
(4)Calculating, by region, industry, occupation, and job training service provider, the wages, wage gains, employment rates, and training-related job placement rates at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(5)Calculating, by region, industry, occupation, and job training service provider, the rate of persons who participated in a job training service and who became employed at a wage at or above a living wage for the region. This calculation shall take into account the cost of living in the regional labor market where the person works or lives. The employment rate calculation shall be calculated at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(6)Calculating program completion, credential attainment, and measurable skills gains rates by job training service provider, industry, occupation, and region.
(7)Determining, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and measurable skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gains that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person works or lives.
(8)Developing and implementing a means of working with the local workforce development boards to notify, prior to their enrollment in a job training service, a person seeking to enroll in those services of the boards and Employment Development Departments findings on the efficacy of those services, particularly with respect to the likelihood of training-related job placement, the likelihood of job placement at or above a regional living wage, and the likelihood of wage gains at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program. Those findings shall be disaggregated by region, job training services provider, industry, and occupation.
(9)The board and the Employment Development Department shall, in compliance with Section 9795 of the Government Code, submit the plan to the Legislature no later than January 1, 2024.
(c)(1)Upon appropriation by the Legislature, the Employment Development Department and the board shall implement the plan developed pursuant to subdivision (b) to meet the reporting requirements of this chapter. Two years after the appropriation, the Employment Development Department and the board shall summarize and provide to the Legislature an initial report on the status of the implementation plan and the initial findings using the available data in alignment with subdivision (b).
(2)The report and findings required by paragraph (1) shall be provided to the Senate Committee on Business, Professions and Economic Development, Assembly Committee on Business and Professions, Senate Committee on Education, Assembly Committee on Education, Senate Committee on Labor, Public Employment and Retirement, and Assembly Committee on Labor and Employment. The report shall not include any personally identifiable information.
(3)Following the initial report in paragraph (1), the board and Employment Development Department shall annually update and include their findings in the report required to be submitted to the Legislature by subdivision (b) of Section 14211.
(4)If any portion of the reporting requirements of this section cannot be implemented absent further statutory change, the remaining requirements shall continue to be in effect.
(d)For purposes of this section, both of the following definitions shall apply:
(1)Job training services has the same meaning as training services, as that term is 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, and as that term is expanded on in paragraph (2) of subdivision (a) of Section 14211.
(2)Local workforce development board means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.
(3)Participation in a job training service shall mean participation in, but not necessarily completion of, the service.
(4)Program means a program under Title I of the federal Workforce Innovation and Opportunity Act or a grant program administered by the California Workforce Development Board.
(5)Training-related job placement means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.
(e)This section shall become operative on July 1, 2028.
SEC. 7.Section 14211 of the Unemployment Insurance Code is amended to read:14211.(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 through program year 2027, 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)Except as provided in subdivision (b), 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)Skills 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 expenditure on training and supportive services. 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.
(viii)Supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, but only for those individuals enrolled in training services for occupations in demand by industry, 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. Supportive services may include, but are not limited to, the costs of trainees or students books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.
(ix)Temporary Assistance for Needy Families (TANF) funds spent on supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, for TANF enrolled individuals coenrolled in and receiving training services for occupations in demand by industry through the federal Workforce Innovation and Opportunity Act of 2014. Supportive services may include, but are not limited to, the costs of trainees or students books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.
(x)Temporary Assistance for Needy Families (TANF) funds spent on transitional and subsidized employment for TANF enrolled individuals coenrolled in and receiving training services through the federal Workforce Innovation and Opportunity Act of 2014.
(xi)Any other local, state, or federal funds spent on training or supportive services for individuals enrolled in training, provided the individuals receiving the training are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.
(xii)With the approval of the state board, any other public or private funds source not identified in this subparagraph that is used to provide training or supportive services for individuals who are also enrolled in training provided the individuals receiving the relevant services are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.
(B)Credit for leveraged funds shall only be given if the local workforce development board keeps records of all training and supportive services expenditures it chooses to apply to the credit. Training and supportive services expenditures may only be applied to the credit if the relevant training costs can be independently verified by the Employment Development Department and, without exception, 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. A local workforce development board shall annually provide data to the Employment Development Department on the amount of leveraged funds used to partially meet the requirements of subdivision (a). This data shall disaggregate and report separately, the amount spent on both training and supportive services. Costs arising from the recordkeeping required to demonstrate compliance with the leveraging requirements of this subdivision are the responsibility of the local board.
(c)(1)At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the expenditure requirements of this section.
(2)The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the expenditure requirements of this section.
(3)The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the training and supportive services expenditures made by local workforce development boards pursuant to the expenditure requirements of this section.
(4)Consistent with the definitions and regulations of the federal Workforce Innovation and Opportunity Act of 2014, the Employment Development Department shall specify which expenditures qualify as training and supportive services expenditures. The annual report shall specify the total amount of federal funding provided to the state and to each of the local workforce development areas for the adult and dislocated persons programs and the amount of these federal Workforce Innovation and Opportunity Act of 2014 funds expended for training services.
(5)Consistent with calculations required by paragraph (1), the report shall also include, for each local workforce development area, the total amount of leverage funds utilized as training expenditure allowances authorized by subdivision (b) to meet the expenditure requirements of this section. The report shall specify the share of leverage funds that were expended on both training and supportive services for each Local Workforce Development Area.
(6)A report submitted pursuant to this section shall comply with Section 9795 of the Government Code.
(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.
(f)This section shall remain in effect only until July 1, 2028, and as of that date is repealed.
SEC. 8.Section 14211 is added to the Unemployment Insurance Code, to read:14211.(a)(1)Beginning program year 2028, local workforce development boards shall ensure that at least 50 percent of participants enrolled in the adult and dislocated worker programs funded under Title I of the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) receive workforce training services.
(2)Training services that count toward the participant training requirement set forth in paragraph (1) shall include only the following, 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:
(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)Skills 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)Job readiness training provided in combination with any of the services described in subparagraphs (A) to (G), inclusive.
(I)Adult education and literacy activities provided in combination with services described in any of subparagraphs (A) to (G), inclusive.
(J)Customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training.
(K)Other leveraged training programs that are not part of Title I of the federal Workforce Innovation and Opportunity Act of 2014.
(b)(1)At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the participant training requirement of this section.
(2)The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the participant training requirement of this section. The Employment Development Department shall also provide to each local workforce development board its individual calculations of the percentage of funds spent on training services.
(3)(A)The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the number of participants enrolled in adult and dislocated worker programs and the percentage of enrolled participants receiving training services.
(B)(i)The Employment Development Department shall separately report, on an annual basis, to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, the training expenditures and supportive service expenditures made by local workforce development boards for each subgrant agreement for which the two-year availability period of funds has ended. The Employment Development Department may explain the differences between the reporting periods and measures used in this report and in the report required pursuant to subparagraph (A).
(ii)(I)The Employment Development Department shall specify the expenditures that qualify as training and supportive services expenditures, consistent with the definitions and regulations of the federal Workforce Innovation and Opportunity Act of 2014, except as provided in subclause (II).
(II)Notwithstanding subclause (I), training expenditures reported pursuant to this subparagraph shall also include expenditures for transitional jobs in accordance with Section 3174(d)(5) of Title 29 of the United States Code.
(iii)The annual expenditure report required pursuant to this subparagraph shall specify the total amount of federal funding provided to the state and to each of the local workforce development areas for the adult and dislocated persons programs and the amount of federal Workforce Innovation and Opportunity Act of 2014 funds expended for training services. The report shall also include, for each local workforce development area, the total amount of leverage funds used and shall specify the share of leverage funds that were expended on both training and supportive services for each local workforce development area. Leverage funds shall be reported separately from the expenditure of funds provided under Title I of the federal Workforce Innovation and Opportunity Act of 2014. If a local workforce development area does not report leverage funds, the report shall indicate that instead of reporting an amount of zero.
(4)A report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
(c)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 participant training requirement and describes actions taken to address the identified participant training 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 paragraph (1) of subdivision (b).
(d)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.
(e)This section shall become operative on July 1, 2028.
SEC. 9.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)The Legislature finds and declares all of the following:
(1)The federal Workforce Pell Grant program (Public Law 119-21) allows funding to be used for certain short-term workforce training programs that demonstrate positive employment and earnings outcomes.
(2)In implementing the federal Workforce Pell Grant program, states may impose standards to protect students from financially risky, low-quality, or fraudulent short-term programs and to protect students from incurring debt they cannot repay.
(3)Title I of the federal Workforce Innovation and Opportunity Act (WIOA) of 2014 (Public Law 113-128) provides another funding stream for workforce training services for adults and dislocated workers.
(4)A report commissioned by the California Workforce Development Board in 2022 found that Californias WIOA-enrolled participants who received targeted training services were significantly more likely to find employment and earn higher wages compared to those who only received basic career services.
(5)Encouraging more participants to receive training, rather than spending more dollars on training, will increase access to high-quality, no-cost or low-cost workforce training and education offered through community colleges and adult schools, and deepen collaborations between local workforce development boards and community colleges.
(6)A participant training requirement will leverage federal Workforce Pell Grant program funds as a new funding stream to support training that would allow more WIOA dollars to be spent on supports and services to increase participants completion and job placement.
(b)It is the intent of the Legislature to expand access to high-quality workforce training opportunities by defining standards for short-term programs to be eligible for the federal Workforce Pell Grant program and requiring an increase in participants that receive workforce training services under Title I of WIOA.
SEC. 2.Section 69870.5 is added to the Education Code, to read:69870.5.A postsecondary educational institution shall not disburse Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and shall not advertise, market, or inform students about the availability of those funds, unless the institution has met both of the following:
(a)Obtained authorization from the commission, on behalf of the Governor, pursuant to this article.
(b)Obtained approvals and met all requirements set forth by the United States Department of Education.
SEC. 3.Section 69871.5 is added to the Education Code, to read:69871.5.The commission shall not authorize a postsecondary educational institution to receive Workforce Pell Grant program funds for a short-term program if the institution does any of the following:
(a)Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the United States Department of Education and that provides the instructors for the instruction of the short-term program, unless one of the following applies:
(1)The institution partners, contracts, or affiliates with the entity for the purpose of offering instruction for a registered apprenticeship program.
(2)The short-term program has a contract education agreement with a participating community college and a provider pursuant to Section 78021, provided that both the institution and the short-term program meet all applicable federal Title IV (20 U.S.C. Sec. 1070 et seq.) and Workforce Pell Grant program requirements.
(3)The institution meets all of the following requirements:
(A)Clearly and prominently discloses, and ensures that the entity clearly and prominently discloses, that the entity is a company that is separate from the institution and a description of all of the services that the entity is contracted to provide for the institution in all of the following places:
(i)On the institutions internet website and any internet website controlled by the entity that is related to the institutions short-term program.
(ii)In marketing materials used by the institution or the entity about the short-term program.
(iii)In oral communications with prospective students of the short-term program that are made by the institution or the entity.
(B)Ensures the entity is not paid using incentive compensation or tuition sharing with the institution.
(C)Ensures the entity does not exercise authority of any kind over the institutions governance or decisionmaking processes, including participation in any deliberative or decisionmaking committee, task force, or other body, related to the design or development of course curriculum or instruction, setting of short-term program admission standards, determining enrollment targets, or creation of new short-term programs. The entity may provide consultation or technical assistance in an advisory capacity only, and the institution shall retain sole and independent authority for all final decisions.
(b)Offers or affiliates with a company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.
(c)(1)Charges tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant program funds available for a student in the short-term program, as determined by the Secretary of the United States Department of Education, for the period of time that the program is offered.
(2)Paragraph (1) shall not apply to any portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount if that excess amount is paid on behalf of the student by an employer, a labor-management partnership, or another third party, provided that the third party is not a lender or an offeror of a private education loan or other credit product for which the student bears any responsibility for repayment.
SEC. 4.Section 69873.5 is added to the Education Code, to read:69873.5.(a)The commission may use the California Priority Programs List to determine whether a short-term program satisfies the following requirements under the Workforce Pell Grant program:
(1)Provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations.
(2)Meets the hiring requirements of employers in high-skill, high-wage, or in-demand sectors or occupations.
(3)Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards students with the credential upon completion of the short-term program.
(b)The Labor and Workforce Development Agency may enter into a data-sharing agreement with the Office of Cradle-to-Career Data to the extent it is necessary to establish and maintain the California Priority Programs List.
SEC. 5.Section 14017.1 of the Unemployment Insurance Code is amended to read:14017.1.(a)To ensure that job training services investments are linked to regional labor market demand and provide opportunities for upward mobility, the board and the Employment Development Department shall work collaboratively to measure and report on training-related job placement outcomes for individuals receiving job training services provided through the workforce system, including all job training services funded by Title I of the federal Workforce Innovation and Opportunity Act (Pub. L. 113-128) and through grants administered by the board, regardless of the source of the moneys.
(b)For purposes of measuring training-related job placement outcomes, gathering data to report, and otherwise fulfilling subdivision (a), the board and the Employment Development Department shall work collaboratively to create a plan to use the existing unemployment insurance tax data collection infrastructure used to secure quarterly wage data from employers, to match relevant employee occupational data, employee place of employment data, and employee hours worked data, to persons who enroll in job training services. The plan shall include timelines, budget, funding constraints, and an outline of any additional recommended or necessary statutory changes to collect relevant data. The plan shall also outline the means for all of the following:
(1)Requiring local workforce development boards and grantees of board-administered grants to collect and report industry and occupation-specific data for all persons who enroll in job training services, including through the use of case management and performance reporting systems deployed for state and federal data collection and reporting.
(2)Developing and implementing a method to measure the second- and fourth-quarter prior earnings of a person, who is enrolled in a job training service, for purposes of measuring the persons increase in earnings following their participation in and exit from a program.
(3)Developing and implementing a means to measure wage and employment outcomes for a person following that persons participation in a job training service during the second, fourth, eighth, and twelfth quarters following participation in and exit from a program for purposes of measuring the persons increase in earnings over time.
(4)Calculating, by region, industry, occupation, and job training service provider, the wages, wage gains, employment rates, and training-related job placement rates at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(5)Calculating, by region, industry, occupation, and job training service provider, the rate of persons who participated in a job training service and who became employed at a wage at or above a living wage for the region. This calculation shall take into account the cost of living in the regional labor market where the person works or lives. The employment rate calculation shall be calculated at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(6)Calculating program completion, credential attainment, and measurable skills gains rates by job training service provider, industry, occupation, and region.
(7)Determining, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and measurable skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gain that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person works or lives.
(8)Developing and implementing a means of working with the local workforce development boards to notify, prior to their enrollment in a job training service, a person seeking to enroll in those services of the boards and Employment Development Departments findings on the efficacy of those services, particularly with respect to the likelihood of training-related job placement, the likelihood of job placement at or above a regional living wage, and the likelihood of wage gains at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program. Those findings shall be disaggregated by region, job training services provider, industry, and occupation.
(9)The board and the Employment Development Department shall, in compliance with Section 9795 of the Government Code, submit the plan to the Legislature no later than January 1, 2024.
(c)(1)Upon appropriation by the Legislature, the Employment Development Department and the board shall implement the plan developed pursuant to subdivision (b) to meet the reporting requirements of this chapter. Two years after the appropriation, the Employment Development Department and the board shall summarize and provide to the Legislature an initial report on the status of the implementation plan and the initial findings using the available data in alignment with subdivision (b).
(2)The report and findings required by paragraph (1) shall be provided to the Senate Committee on Business, Professions and Economic Development, Assembly Committee on Business and Professions, Senate Committee on Education, Assembly Committee on Education, Senate Committee on Labor, Public Employment and Retirement, and Assembly Committee on Labor and Employment. The report shall not include any personally identifiable information.
(3)Following the initial report in paragraph (1), the board and Employment Development Department shall annually update and include their findings in the report required to be submitted to the Legislature by subdivision (c) of Section 14211.
(4)If any portion of the reporting requirements of this section cannot be implemented absent further statutory change, the remaining requirements shall continue to be in effect.
(d)For purposes of this section, both of the following definitions shall apply:
(1)Job training services has the same meaning as training services, as that term is 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, and as that term is expanded on in paragraph (3) of subdivision (a) of Section 14211.
(2)Local workforce development board means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.
(3)Participation in a job training service shall mean participation in, but not necessarily completion of, the service.
(4)Program means a program under Title I of the federal Workforce Innovation and Opportunity Act or a grant program administered by the California Workforce Development Board.
(5)Training-related job placement means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.
(e)This section shall remain in effect only until July 1, 2028, and as of that date is repealed.
SEC. 6.Section 14017.1 is added to the Unemployment Insurance Code, to read:14017.1.(a)To ensure that job training services investments are linked to regional labor market demand and provide opportunities for upward mobility, the board and the Employment Development Department shall work collaboratively to measure and report on training-related job placement outcomes for individuals receiving job training services provided through the workforce system, including all job training services funded by Title I of the federal Workforce Innovation and Opportunity Act (Pub. L. 113-128) and through grants administered by the board, regardless of the source of the moneys.
(b)For purposes of measuring training-related job placement outcomes, gathering data to report, and otherwise fulfilling subdivision (a), the board and the Employment Development Department shall work collaboratively to create a plan to use the existing unemployment insurance tax data collection infrastructure used to secure quarterly wage data from employers, to match relevant employee occupational data, employee place of employment data, and employee hours worked data, to persons who enroll in job training services. The plan shall include timelines, budget, funding constraints, and an outline of any additional recommended or necessary statutory changes to collect relevant data. The plan shall also outline the means for all of the following:
(1)Requiring local workforce development boards and grantees of board-administered grants to collect and report industry and occupation-specific data for all persons who enroll in job training services, including through the use of case management and performance reporting systems deployed for state and federal data collection and reporting.
(2)Developing and implementing a method to measure the second- and fourth-quarter prior earnings of a person, who is enrolled in a job training service, for purposes of measuring the persons increase in earnings following their participation in and exit from a program.
(3)Developing and implementing a means to measure wage and employment outcomes for a person following that persons participation in a job training service during the second, fourth, eighth, and twelfth quarters following participation in and exit from a program for purposes of measuring the persons increase in earnings over time.
(4)Calculating, by region, industry, occupation, and job training service provider, the wages, wage gains, employment rates, and training-related job placement rates at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(5)Calculating, by region, industry, occupation, and job training service provider, the rate of persons who participated in a job training service and who became employed at a wage at or above a living wage for the region. This calculation shall take into account the cost of living in the regional labor market where the person works or lives. The employment rate calculation shall be calculated at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(6)Calculating program completion, credential attainment, and measurable skills gains rates by job training service provider, industry, occupation, and region.
(7)Determining, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and measurable skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gains that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person works or lives.
(8)Developing and implementing a means of working with the local workforce development boards to notify, prior to their enrollment in a job training service, a person seeking to enroll in those services of the boards and Employment Development Departments findings on the efficacy of those services, particularly with respect to the likelihood of training-related job placement, the likelihood of job placement at or above a regional living wage, and the likelihood of wage gains at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program. Those findings shall be disaggregated by region, job training services provider, industry, and occupation.
(9)The board and the Employment Development Department shall, in compliance with Section 9795 of the Government Code, submit the plan to the Legislature no later than January 1, 2024.
(c)(1)Upon appropriation by the Legislature, the Employment Development Department and the board shall implement the plan developed pursuant to subdivision (b) to meet the reporting requirements of this chapter. Two years after the appropriation, the Employment Development Department and the board shall summarize and provide to the Legislature an initial report on the status of the implementation plan and the initial findings using the available data in alignment with subdivision (b).
(2)The report and findings required by paragraph (1) shall be provided to the Senate Committee on Business, Professions and Economic Development, Assembly Committee on Business and Professions, Senate Committee on Education, Assembly Committee on Education, Senate Committee on Labor, Public Employment and Retirement, and Assembly Committee on Labor and Employment. The report shall not include any personally identifiable information.
(3)Following the initial report in paragraph (1), the board and Employment Development Department shall annually update and include their findings in the report required to be submitted to the Legislature by subdivision (b) of Section 14211.
(4)If any portion of the reporting requirements of this section cannot be implemented absent further statutory change, the remaining requirements shall continue to be in effect.
(d)For purposes of this section, both of the following definitions shall apply:
(1)Job training services has the same meaning as training services, as that term is 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, and as that term is expanded on in paragraph (2) of subdivision (a) of Section 14211.
(2)Local workforce development board means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.
(3)Participation in a job training service shall mean participation in, but not necessarily completion of, the service.
(4)Program means a program under Title I of the federal Workforce Innovation and Opportunity Act or a grant program administered by the California Workforce Development Board.
(5)Training-related job placement means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.
(e)This section shall become operative on July 1, 2028.
SEC. 7.Section 14211 of the Unemployment Insurance Code is amended to read:14211.(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 through program year 2027, 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)Except as provided in subdivision (b), 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)Skills 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 expenditure on training and supportive services. 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.
(viii)Supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, but only for those individuals enrolled in training services for occupations in demand by industry, 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. Supportive services may include, but are not limited to, the costs of trainees or students books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.
(ix)Temporary Assistance for Needy Families (TANF) funds spent on supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, for TANF enrolled individuals coenrolled in and receiving training services for occupations in demand by industry through the federal Workforce Innovation and Opportunity Act of 2014. Supportive services may include, but are not limited to, the costs of trainees or students books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.
(x)Temporary Assistance for Needy Families (TANF) funds spent on transitional and subsidized employment for TANF enrolled individuals coenrolled in and receiving training services through the federal Workforce Innovation and Opportunity Act of 2014.
(xi)Any other local, state, or federal funds spent on training or supportive services for individuals enrolled in training, provided the individuals receiving the training are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.
(xii)With the approval of the state board, any other public or private funds source not identified in this subparagraph that is used to provide training or supportive services for individuals who are also enrolled in training provided the individuals receiving the relevant services are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.
(B)Credit for leveraged funds shall only be given if the local workforce development board keeps records of all training and supportive services expenditures it chooses to apply to the credit. Training and supportive services expenditures may only be applied to the credit if the relevant training costs can be independently verified by the Employment Development Department and, without exception, 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. A local workforce development board shall annually provide data to the Employment Development Department on the amount of leveraged funds used to partially meet the requirements of subdivision (a). This data shall disaggregate and report separately, the amount spent on both training and supportive services. Costs arising from the recordkeeping required to demonstrate compliance with the leveraging requirements of this subdivision are the responsibility of the local board.
(c)(1)At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the expenditure requirements of this section.
(2)The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the expenditure requirements of this section.
(3)The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the training and supportive services expenditures made by local workforce development boards pursuant to the expenditure requirements of this section.
(4)Consistent with the definitions and regulations of the federal Workforce Innovation and Opportunity Act of 2014, the Employment Development Department shall specify which expenditures qualify as training and supportive services expenditures. The annual report shall specify the total amount of federal funding provided to the state and to each of the local workforce development areas for the adult and dislocated persons programs and the amount of these federal Workforce Innovation and Opportunity Act of 2014 funds expended for training services.
(5)Consistent with calculations required by paragraph (1), the report shall also include, for each local workforce development area, the total amount of leverage funds utilized as training expenditure allowances authorized by subdivision (b) to meet the expenditure requirements of this section. The report shall specify the share of leverage funds that were expended on both training and supportive services for each Local Workforce Development Area.
(6)A report submitted pursuant to this section shall comply with Section 9795 of the Government Code.
(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.
(f)This section shall remain in effect only until July 1, 2028, and as of that date is repealed.
SEC. 8.Section 14211 is added to the Unemployment Insurance Code, to read:14211.(a)(1)Beginning program year 2028, local workforce development boards shall ensure that at least 50 percent of participants enrolled in the adult and dislocated worker programs funded under Title I of the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) receive workforce training services.
(2)Training services that count toward the participant training requirement set forth in paragraph (1) shall include only the following, 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:
(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)Skills 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)Job readiness training provided in combination with any of the services described in subparagraphs (A) to (G), inclusive.
(I)Adult education and literacy activities provided in combination with services described in any of subparagraphs (A) to (G), inclusive.
(J)Customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training.
(K)Other leveraged training programs that are not part of Title I of the federal Workforce Innovation and Opportunity Act of 2014.
(b)(1)At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the participant training requirement of this section.
(2)The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the participant training requirement of this section. The Employment Development Department shall also provide to each local workforce development board its individual calculations of the percentage of funds spent on training services.
(3)(A)The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the number of participants enrolled in adult and dislocated worker programs and the percentage of enrolled participants receiving training services.
(B)(i)The Employment Development Department shall separately report, on an annual basis, to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, the training expenditures and supportive service expenditures made by local workforce development boards for each subgrant agreement for which the two-year availability period of funds has ended. The Employment Development Department may explain the differences between the reporting periods and measures used in this report and in the report required pursuant to subparagraph (A).
(ii)(I)The Employment Development Department shall specify the expenditures that qualify as training and supportive services expenditures, consistent with the definitions and regulations of the federal Workforce Innovation and Opportunity Act of 2014, except as provided in subclause (II).
(II)Notwithstanding subclause (I), training expenditures reported pursuant to this subparagraph shall also include expenditures for transitional jobs in accordance with Section 3174(d)(5) of Title 29 of the United States Code.
(iii)The annual expenditure report required pursuant to this subparagraph shall specify the total amount of federal funding provided to the state and to each of the local workforce development areas for the adult and dislocated persons programs and the amount of federal Workforce Innovation and Opportunity Act of 2014 funds expended for training services. The report shall also include, for each local workforce development area, the total amount of leverage funds used and shall specify the share of leverage funds that were expended on both training and supportive services for each local workforce development area. Leverage funds shall be reported separately from the expenditure of funds provided under Title I of the federal Workforce Innovation and Opportunity Act of 2014. If a local workforce development area does not report leverage funds, the report shall indicate that instead of reporting an amount of zero.
(4)A report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
(c)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 participant training requirement and describes actions taken to address the identified participant training 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 paragraph (1) of subdivision (b).
(d)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.
(e)This section shall become operative on July 1, 2028.
SEC. 9.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)The Legislature finds and declares all of the following:
(1)The federal Workforce Pell Grant program (Public Law 119-21) allows funding to be used for certain short-term workforce training programs that demonstrate positive employment and earnings outcomes.
(2)In implementing the federal Workforce Pell Grant program, states may impose standards to protect students from financially risky, low-quality, or fraudulent short-term programs and to protect students from incurring debt they cannot repay.
(3)Title I of the federal Workforce Innovation and Opportunity Act (WIOA) of 2014 (Public Law 113-128) provides another funding stream for workforce training services for adults and dislocated workers.
(4)A report commissioned by the California Workforce Development Board in 2022 found that Californias WIOA-enrolled participants who received targeted training services were significantly more likely to find employment and earn higher wages compared to those who only received basic career services.
(5)Encouraging more participants to receive training, rather than spending more dollars on training, will increase access to high-quality, no-cost or low-cost workforce training and education offered through community colleges and adult schools, and deepen collaborations between local workforce development boards and community colleges.
(6)A participant training requirement will leverage federal Workforce Pell Grant program funds as a new funding stream to support training that would allow more WIOA dollars to be spent on supports and services to increase participants completion and job placement.
(b)It is the intent of the Legislature to expand access to high-quality workforce training opportunities by defining standards for short-term programs to be eligible for the federal Workforce Pell Grant program and requiring an increase in participants that receive workforce training services under Title I of WIOA.
SEC. 2.Section 69870.5 is added to the Education Code, to read:69870.5.A postsecondary educational institution shall not disburse Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and shall not advertise, market, or inform students about the availability of those funds, unless the institution has met both of the following:
(a)Obtained authorization from the commission, on behalf of the Governor, pursuant to this article.
(b)Obtained approvals and met all requirements set forth by the United States Department of Education.
SEC. 3.Section 69871.5 is added to the Education Code, to read:69871.5.The commission shall not authorize a postsecondary educational institution to receive Workforce Pell Grant program funds for a short-term program if the institution does any of the following:
(a)Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the United States Department of Education and that provides the instructors for the instruction of the short-term program, unless one of the following applies:
(1)The institution partners, contracts, or affiliates with the entity for the purpose of offering instruction for a registered apprenticeship program.
(2)The short-term program has a contract education agreement with a participating community college and a provider pursuant to Section 78021, provided that both the institution and the short-term program meet all applicable federal Title IV (20 U.S.C. Sec. 1070 et seq.) and Workforce Pell Grant program requirements.
(3)The institution meets all of the following requirements:
(A)Clearly and prominently discloses, and ensures that the entity clearly and prominently discloses, that the entity is a company that is separate from the institution and a description of all of the services that the entity is contracted to provide for the institution in all of the following places:
(i)On the institutions internet website and any internet website controlled by the entity that is related to the institutions short-term program.
(ii)In marketing materials used by the institution or the entity about the short-term program.
(iii)In oral communications with prospective students of the short-term program that are made by the institution or the entity.
(B)Ensures the entity is not paid using incentive compensation or tuition sharing with the institution.
(C)Ensures the entity does not exercise authority of any kind over the institutions governance or decisionmaking processes, including participation in any deliberative or decisionmaking committee, task force, or other body, related to the design or development of course curriculum or instruction, setting of short-term program admission standards, determining enrollment targets, or creation of new short-term programs. The entity may provide consultation or technical assistance in an advisory capacity only, and the institution shall retain sole and independent authority for all final decisions.
(b)Offers or affiliates with a company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.
(c)(1)Charges tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant program funds available for a student in the short-term program, as determined by the Secretary of the United States Department of Education, for the period of time that the program is offered.
(2)Paragraph (1) shall not apply to any portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount if that excess amount is paid on behalf of the student by an employer, a labor-management partnership, or another third party, provided that the third party is not a lender or an offeror of a private education loan or other credit product for which the student bears any responsibility for repayment.
SEC. 4.Section 69873.5 is added to the Education Code, to read:69873.5.(a)The commission may use the California Priority Jobs Credentials Programs List to determine whether a short-term program satisfies the following requirements under the Workforce Pell Grant program:
(1)Provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations.
(2)Meets the hiring requirements of employers in high-skill, high-wage, or in-demand sectors or occupations.
(3)Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards students with the credential upon completion of the short-term program.
(b)The Labor and Workforce Development Agency may enter into a data-sharing agreement with the Office of Cradle-to-Career Data to the extent it is necessary to establish and maintain the California Priority Jobs Credential Programs List.
SEC. 5.Section 14017.1 of the Unemployment Insurance Code is amended to read:14017.1.(a)To ensure that job training services investments are linked to regional labor market demand and provide opportunities for upward mobility, the board and the Employment Development Department shall work collaboratively to measure and report on training-related job placement outcomes for individuals receiving job training services provided through the workforce system, including all job training services funded by Title I of the federal Workforce Innovation and Opportunity Act (Pub. L. 113-128) and through grants administered by the board, regardless of the source of the moneys.
(b)For purposes of measuring training-related job placement outcomes, gathering data to report, and otherwise fulfilling subdivision (a), the board and the Employment Development Department shall work collaboratively to create a plan to use the existing unemployment insurance tax data collection infrastructure used to secure quarterly wage data from employers, to match relevant employee occupational data, employee place of employment data, and employee hours worked data, to persons who enroll in job training services. The plan shall include timelines, budget, funding constraints, and an outline of any additional recommended or necessary statutory changes to collect relevant data. The plan shall also outline the means for all of the following:
(1)Requiring local workforce development boards and grantees of board-administered grants to collect and report industry and occupation-specific data for all persons who enroll in job training services, including through the use of case management and performance reporting systems deployed for state and federal data collection and reporting.
(2)Developing and implementing a method to measure the second- and fourth-quarter prior earnings of a person, who is enrolled in a job training service, for purposes of measuring the persons increase in earnings following their participation in and exit from a program.
(3)Developing and implementing a means to measure wage and employment outcomes for a person following that persons participation in a job training service during the second, fourth, eighth, and twelfth quarters following participation in and exit from a program for purposes of measuring the persons increase in earnings over time.
(4)Calculating, by region, industry, occupation, and job training service provider, the wages, wage gains, employment rates, and training-related job placement rates at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(5)Calculating, by region, industry, occupation, and job training service provider, the rate of persons who participated in a job training service and who became employed at a wage at or above a living wage for the region. This calculation shall take into account the cost of living in the regional labor market where the person works or lives. The employment rate calculation shall be calculated at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(6)Calculating program completion, credential attainment, and measurable skills gains rates by job training service provider, industry, occupation, and region.
(7)Determining, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and measurable skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gain that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person works or lives.
(8)Developing and implementing a means of working with the local workforce development boards to notify, prior to their enrollment in a job training service, a person seeking to enroll in those services of the boards and Employment Development Departments findings on the efficacy of those services, particularly with respect to the likelihood of training-related job placement, the likelihood of job placement at or above a regional living wage, and the likelihood of wage gains at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program. Those findings shall be disaggregated by region, job training services provider, industry, and occupation.
(9)The board and the Employment Development Department shall, in compliance with Section 9795 of the Government Code, submit the plan to the Legislature no later than January 1, 2024.
(c)(1)Upon appropriation by the Legislature, the Employment Development Department and the board shall implement the plan developed pursuant to subdivision (b) to meet the reporting requirements of this chapter. Two years after the appropriation, the Employment Development Department and the board shall summarize and provide to the Legislature an initial report on the status of the implementation plan and the initial findings using the available data in alignment with subdivision (b).
(2)The report and findings required by paragraph (1) shall be provided to the Senate Committee on Business, Professions and Economic Development, Assembly Committee on Business and Professions, Senate Committee on Education, Assembly Committee on Education, Senate Committee on Labor, Public Employment and Retirement, and Assembly Committee on Labor and Employment. The report shall not include any personally identifiable information.
(3)Following the initial report in paragraph (1), the board and Employment Development Department shall annually update and include their findings in the report required to be submitted to the Legislature by subdivision (c) of Section 14211.
(4)If any portion of the reporting requirements of this section cannot be implemented absent further statutory change, the remaining requirements shall continue to be in effect.
(d)For purposes of this section, both of the following definitions shall apply:
(1)Job training services has the same meaning as training services, as that term is 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, and as that term is expanded on in paragraph (3) of subdivision (a) of Section 14211.
(2)Local workforce development board means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.
(3)Participation in a job training service shall mean participation in, but not necessarily completion of, the service.
(4)Program means a program under Title I of the federal Workforce Innovation and Opportunity Act or a grant program administered by the California Workforce Development Board.
(5)Training-related job placement means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.
(e)This section shall remain in effect only until July 1, 2028, and as of that date is repealed.
SEC. 6.Section 14017.1 is added to the Unemployment Insurance Code, to read:14017.1.(a)To ensure that job training services investments are linked to regional labor market demand and provide opportunities for upward mobility, the board and the Employment Development Department shall work collaboratively to measure and report on training-related job placement outcomes for individuals receiving job training services provided through the workforce system, including all job training services funded by Title I of the federal Workforce Innovation and Opportunity Act (Pub. L. 113-128) and through grants administered by the board, regardless of the source of the moneys.
(b)For purposes of measuring training-related job placement outcomes, gathering data to report, and otherwise fulfilling subdivision (a), the board and the Employment Development Department shall work collaboratively to create a plan to use the existing unemployment insurance tax data collection infrastructure used to secure quarterly wage data from employers, to match relevant employee occupational data, employee place of employment data, and employee hours worked data, to persons who enroll in job training services. The plan shall include timelines, budget, funding constraints, and an outline of any additional recommended or necessary statutory changes to collect relevant data. The plan shall also outline the means for all of the following:
(1)Requiring local workforce development boards and grantees of board-administered grants to collect and report industry and occupation-specific data for all persons who enroll in job training services, including through the use of case management and performance reporting systems deployed for state and federal data collection and reporting.
(2)Developing and implementing a method to measure the second- and fourth-quarter prior earnings of a person, who is enrolled in a job training service, for purposes of measuring the persons increase in earnings following their participation in and exit from a program.
(3)Developing and implementing a means to measure wage and employment outcomes for a person following that persons participation in a job training service during the second, fourth, eighth, and twelfth quarters following participation in and exit from a program for purposes of measuring the persons increase in earnings over time.
(4)Calculating, by region, industry, occupation, and job training service provider, the wages, wage gains, employment rates, and training-related job placement rates at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(5)Calculating, by region, industry, occupation, and job training service provider, the rate of persons who participated in a job training service and who became employed at a wage at or above a living wage for the region. This calculation shall take into account the cost of living in the regional labor market where the person works or lives. The employment rate calculation shall be calculated at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(6)Calculating program completion, credential attainment, and measurable skills gains rates by job training service provider, industry, occupation, and region.
(7)Determining, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and measurable skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gains that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person works or lives.
(8)Developing and implementing a means of working with the local workforce development boards to notify, prior to their enrollment in a job training service, a person seeking to enroll in those services of the boards and Employment Development Departments findings on the efficacy of those services, particularly with respect to the likelihood of training-related job placement, the likelihood of job placement at or above a regional living wage, and the likelihood of wage gains at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program. Those findings shall be disaggregated by region, job training services provider, industry, and occupation.
(9)The board and the Employment Development Department shall, in compliance with Section 9795 of the Government Code, submit the plan to the Legislature no later than January 1, 2024.
(c)(1)Upon appropriation by the Legislature, the Employment Development Department and the board shall implement the plan developed pursuant to subdivision (b) to meet the reporting requirements of this chapter. Two years after the appropriation, the Employment Development Department and the board shall summarize and provide to the Legislature an initial report on the status of the implementation plan and the initial findings using the available data in alignment with subdivision (b).
(2)The report and findings required by paragraph (1) shall be provided to the Senate Committee on Business, Professions and Economic Development, Assembly Committee on Business and Professions, Senate Committee on Education, Assembly Committee on Education, Senate Committee on Labor, Public Employment and Retirement, and Assembly Committee on Labor and Employment. The report shall not include any personally identifiable information.
(3)Following the initial report in paragraph (1), the board and Employment Development Department shall annually update and include their findings in the report required to be submitted to the Legislature by subdivision (b) of Section 14211.
(4)If any portion of the reporting requirements of this section cannot be implemented absent further statutory change, the remaining requirements shall continue to be in effect.
(d)For purposes of this section, both of the following definitions shall apply:
(1)Job training services has the same meaning as training services, as that term is 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, and as that term is expanded on in paragraph (2) of subdivision (a) of Section 14211.
(2)Local workforce development board means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.
(3)Participation in a job training service shall mean participation in, but not necessarily completion of, the service.
(4)Program means a program under Title I of the federal Workforce Innovation and Opportunity Act or a grant program administered by the California Workforce Development Board.
(5)Training-related job placement means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.
(e)This section shall become operative on July 1, 2028.
SEC. 7.Section 14211 of the Unemployment Insurance Code is amended to read:14211.(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 through program year 2027, 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)Except as provided in subdivision (b), 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)Skills 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 expenditure on training and supportive services. 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.
(viii)Supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, but only for those individuals enrolled in training services for occupations in demand by industry, 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. Supportive services may include, but are not limited to, the costs of trainees or students books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.
(ix)Temporary Assistance for Needy Families (TANF) funds spent on supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, for TANF enrolled individuals coenrolled in and receiving training services for occupations in demand by industry through the federal Workforce Innovation and Opportunity Act of 2014. Supportive services may include, but are not limited to, the costs of trainees or students books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.
(x)Temporary Assistance for Needy Families (TANF) funds spent on transitional and subsidized employment for TANF enrolled individuals coenrolled in and receiving training services through the federal Workforce Innovation and Opportunity Act of 2014.
(xi)Any other local, state, or federal funds spent on training or supportive services for individuals enrolled in training, provided the individuals receiving the training are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.
(xii)With the approval of the state board, any other public or private funds source not identified in this subparagraph that is used to provide training or supportive services for individuals who are also enrolled in training provided the individuals receiving the relevant services are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.
(B)Credit for leveraged funds shall only be given if the local workforce development board keeps records of all training and supportive services expenditures it chooses to apply to the credit. Training and supportive services expenditures may only be applied to the credit if the relevant training costs can be independently verified by the Employment Development Department and, without exception, 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. A local workforce development board shall annually provide data to the Employment Development Department on the amount of leveraged funds used to partially meet the requirements of subdivision (a). This data shall disaggregate and report separately, the amount spent on both training and supportive services. Costs arising from the recordkeeping required to demonstrate compliance with the leveraging requirements of this subdivision are the responsibility of the local board.
(c)(1)At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the expenditure requirements of this section.
(2)The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the expenditure requirements of this section.
(3)The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the training and supportive services expenditures made by local workforce development boards pursuant to the expenditure requirements of this section.
(4)Consistent with the definitions and regulations of the federal Workforce Innovation and Opportunity Act of 2014, the Employment Development Department shall specify which expenditures qualify as training and supportive services expenditures. The annual report shall specify the total amount of federal funding provided to the state and to each of the local workforce development areas for the adult and dislocated persons programs and the amount of these federal Workforce Innovation and Opportunity Act of 2014 funds expended for training services.
(5)Consistent with calculations required by paragraph (1), the report shall also include, for each local workforce development area, the total amount of leverage funds utilized as training expenditure allowances authorized by subdivision (b) to meet the expenditure requirements of this section. The report shall specify the share of leverage funds that were expended on both training and supportive services for each Local Workforce Development Area.
(6)A report submitted pursuant to this section shall comply with Section 9795 of the Government Code.
(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.
(f)This section shall remain in effect only until July 1, 2028, and as of that date is repealed.
SEC. 8.Section 14211 is added to the Unemployment Insurance Code, to read:14211.(a)(1)Beginning program year 2028, local workforce development boards shall ensure that at least 50 percent of participants enrolled in the adult and dislocated worker programs funded under Title I of the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) receive workforce training services.
(2)Training services that count toward the participant training requirement set forth in paragraph (1) shall include only the following, 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:
(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)Skills 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)Job readiness training provided in combination with any of the services described in subparagraphs (A) to (G), inclusive.
(I)Adult education and literacy activities provided in combination with services described in any of subparagraphs (A) to (G), inclusive.
(J)Customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training.
(K)Other leveraged training programs that are not part of Title I of the federal Workforce Innovation and Opportunity Act of 2014.
(b)(1)At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the participant training requirement of this section.
(2)The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the participant training requirement of this section. The Employment Development Department shall also provide to each local workforce development board its individual calculations of the percentage of funds spent on training services.
(3)(A)The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the number of participants enrolled in adult and dislocated worker programs and the percentage of enrolled participants receiving training services.
(B)(i)The Employment Development Department shall separately report, on an annual basis, to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, the training expenditures and supportive service expenditures made by local workforce development boards for each subgrant agreement for which the two-year availability period of funds has ended. The Employment Development Department may explain the differences between the reporting periods and measures used in this report and in the report required pursuant to subparagraph (A).
(ii)(I)The Employment Development Department shall specify the expenditures that qualify as training and supportive services expenditures, consistent with the definitions and regulations of the federal Workforce Innovation and Opportunity Act of 2014, except as provided in subclause (II).
(II)Notwithstanding subclause (I), training expenditures reported pursuant to this subparagraph shall also include expenditures for transitional jobs in accordance with Section 3174(d)(5) of Title 29 of the United States Code.
(iii)The annual expenditure report required pursuant to this subparagraph shall specify the total amount of federal funding provided to the state and to each of the local workforce development areas for the adult and dislocated persons programs and the amount of federal Workforce Innovation and Opportunity Act of 2014 funds expended for training services. The report shall also include, for each local workforce development area, the total amount of leverage funds used and shall specify the share of leverage funds that were expended on both training and supportive services for each local workforce development area. Leverage funds shall be reported separately from the expenditure of funds provided under Title I of the federal Workforce Innovation and Opportunity Act of 2014. If a local workforce development area does not report leverage funds, the report shall indicate that instead of reporting an amount of zero.
(4)A report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
(c)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 participant training requirement and describes actions taken to address the identified participant training 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 paragraph (1) of subdivision (b).
(d)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.
(e)This section shall become operative on July 1, 2028.
SEC. 9.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)The Legislature finds and declares all of the following:
(1)The federal Workforce Pell Grant program (Public Law 119-21) allows funding to be used for certain short-term workforce training programs that demonstrate positive employment and earnings outcomes.
(2)In implementing the federal Workforce Pell Grant program, states may impose standards to protect students from financially risky, low-quality, or fraudulent short-term programs and to protect students from incurring debt they cannot repay.
(3)Title I of the federal Workforce Innovation and Opportunity Act (WIOA) of 2014 (Public Law 113-128) provides another funding stream for workforce training services for adults and dislocated workers.
(4)A report commissioned by the California Workforce Development Board in 2022 found that Californias WIOA-enrolled participants who received targeted training services were significantly more likely to find employment and earn higher wages compared to those who only received basic career services.
(5)Encouraging more participants to receive training, rather than spending more dollars on training, will increase access to high-quality, no-cost or low-cost workforce training and education offered through community colleges and adult schools, and deepen collaborations between local workforce development boards and community colleges.
(6)A participant training requirement will leverage federal Workforce Pell Grant program funds as a new funding stream to support training that would allow more WIOA dollars to be spent on supports and services to increase participants completion and job placement.
(b)It is the intent of the Legislature to expand access to high-quality workforce training opportunities by defining standards for short-term programs to be eligible for the federal Workforce Pell Grant program and requiring an increase in participants that receive workforce training services under Title I of WIOA.
SEC. 2.Section 69870.5 is added to the Education Code, to read:69870.5.A public postsecondary educational institution shall not disburse Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and shall not advertise, market, or inform students about the availability of those funds, unless the institution has met both of the following:
(a)Obtained authorization from the commission, on behalf of the Governor, pursuant to this article.
(b)Obtained approvals and met all requirements set forth by the United States Department of Education.
SEC. 3.Section 69871.5 is added to the Education Code, to read:69871.5.The commission shall not authorize a public postsecondary educational institution to receive Workforce Pell Grant program funds for a short-term program if the institution does any of the following:
(a)Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the United States Department of Education to provide, or offer to provide, and that provides the instructors for the instruction for of the short-term program, unless one of the following applies:
(1)The institution partners, contracts, or affiliates with the entity for the purpose of offering instruction for a registered apprenticeship program.
(2)The short-term program has a contract education agreement with a participating community college and a provider pursuant to Section 78021, provided that both the institution and the short-term program meet all applicable federal Title IV (20 U.S.C. Sec. 1070 et seq.) and Workforce Pell Grant program requirements.
(3)The entity and institution meet meets all of the following requirements:
(A)Clearly and prominently discloses discloses, and ensures that the entity clearly and prominently discloses, that the entity is a company that is separate from the institution and describes a description of all of the services that the entity is contracted to provide for the institution in all of the following places:
(i)On the institutions internet website. website and any internet website controlled by the entity that is related to the institutions short-term program.
(ii)In marketing materials used by the institution or the entity about the short-term program.
(iii)In oral communications with prospective students of the short-term program that are made by the institution. institution or the entity.
(B)The Ensures the entity is not paid using incentive compensation or tuition sharing with the institution.
(C)The Ensures the entity does not participate in, or exercise authority over, of any kind over the institutions governance or decisionmaking processes on factors, including, but not limited to, processes, including participation in any deliberative or decisionmaking committee, task force, or other body, related to the design or development of course curriculum or instruction, setting of short-term program admission standards, determining enrollment targets, or creation of new short-term programs. The entity may provide consultation or technical assistance in an advisory capacity only, and the institution shall retain sole and independent authority for all final decisions.
(b)Offers or affiliates with a company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.
(c)(1)Charges tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant program funds available for a student in the short-term program, as determined by the Secretary of the United States Department of Education, for the period of time that the program is offered.
(2)Paragraph (1) shall not apply to any portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount if that excess amount is paid on behalf of the student by an employer, a labor-management partnership, or another third party, provided that the third party is not a lender or an offeror of a private education loan or other credit product for which the student bears any responsibility for repayment.
SEC. 4.Section 69873.5 is added to the Education Code, to read:69873.5.(a)The commission may use the California Priority Jobs Credentials List to determine whether a short-term program satisfies the following requirements under the Workforce Pell Grant program:
(1)Provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations.
(2)Meets the hiring requirements of employers in high-skill, high-wage, or in-demand sectors or occupations.
(3)Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards students with the credential upon completion of the short-term program.
(b)The Labor and Workforce Development Agency may enter into a data-sharing agreement with the Office of Cradle-to-Career Data to the extent it is necessary to establish and maintain the California Priority Jobs Credential List.
SEC. 5.Section 14017.1 of the Unemployment Insurance Code is amended to read:14017.1.(a)To ensure that job training services investments are linked to regional labor market demand and provide opportunities for upward mobility, the board and the Employment Development Department shall work collaboratively to measure and report on training-related job placement outcomes for individuals receiving job training services provided through the workforce system, including all job training services funded by Title I of the federal Workforce Innovation and Opportunity Act (Pub. L. 113-128) and through grants administered by the board, regardless of the source of the moneys.
(b)For purposes of measuring training-related job placement outcomes, gathering data to report, and otherwise fulfilling subdivision (a), the board and the Employment Development Department shall work collaboratively to create a plan to use the existing unemployment insurance tax data collection infrastructure used to secure quarterly wage data from employers, to match relevant employee occupational data, employee place of employment data, and employee hours worked data, to persons who enroll in job training services. The plan shall include timelines, budget, funding constraints, and an outline of any additional recommended or necessary statutory changes to collect relevant data. The plan shall also outline the means for all of the following:
(1)Requiring local workforce development boards and grantees of board-administered grants to collect and report industry and occupation-specific data for all persons who enroll in job training services, including through the use of case management and performance reporting systems deployed for state and federal data collection and reporting.
(2)Developing and implementing a method to measure the second- and fourth-quarter prior earnings of a person, who is enrolled in a job training service, for purposes of measuring the persons increase in earnings following their participation in and exit from a program.
(3)Developing and implementing a means to measure wage and employment outcomes for a person following that persons participation in a job training service during the second, fourth, eighth, and twelfth quarters following participation in and exit from a program for purposes of measuring the persons increase in earnings over time.
(4)Calculating, by region, industry, occupation, and job training service provider, the wages, wage gains, employment rates, and training-related job placement rates at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(5)Calculating, by region, industry, occupation, and job training service provider, the rate of persons who participated in a job training service and who became employed at a wage at or above a living wage for the region. This calculation shall take into account the cost of living in the regional labor market where the person works or lives. The employment rate calculation shall be calculated at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(6)Calculating program completion, credential attainment, and measurable skills gains rates by job training service provider, industry, occupation, and region.
(7)Determining, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and measurable skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gain that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person works or lives.
(8)Developing and implementing a means of working with the local workforce development boards to notify, prior to their enrollment in a job training service, a person seeking to enroll in those services of the boards and Employment Development Departments findings on the efficacy of those services, particularly with respect to the likelihood of training related training-related job placement, the likelihood of job placement at or above a regional living wage, and the likelihood of wage gains at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program. Those findings shall be disaggregated by region, job training services provider, industry, and occupation.
(9)The board and the Employment Development Department shall, in compliance with Section 9795 of the Government Code, submit the plan to the Legislature no later than January 1, 2024.
(c)(1)Upon appropriation by the Legislature, the Employment Development Department and the board shall implement the plan developed pursuant to subdivision (b) to meet the reporting requirements of this chapter. Two years after the appropriation, the Employment Development Department and the board shall summarize and provide to the Legislature an initial report on the status of the implementation plan and the initial findings using the available data in alignment with subdivision (b).
(2)The report and findings required by paragraph (1) shall be provided to the Senate Committee on Business, Professions and Economic Development, Assembly Committee on Business and Professions, Senate Committee on Education, Assembly Committee on Education, Senate Committee on Labor, Public Employment and Retirement, and Assembly Committee on Labor and Employment. The report shall not include any personally identifiable information.
(3)Following the initial report in paragraph (1), the board and Employment Development Department shall annually update and include their findings in the report required to be submitted to the Legislature by subdivision (c) of Section 14211.
(4)If any portion of the reporting requirements of this section cannot be implemented absent further statutory change, the remaining requirements shall continue to be in effect.
(d)For purposes of this section, both of the following definitions shall apply:
(1)Job training services has the same meaning as training services, as that term is 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, and as that term is expanded on in paragraph (3) of subdivision (a) of Section 14211.
(2)Local workforce development board means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.
(3)Participation in a job training service shall mean participation in, but not necessarily completion of, the service.
(4)Program means a program under Title I of the federal Workforce Innovation and Opportunity Act or a grant program administered by the California Workforce Development Board.
(5)Training-related job placement means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.
(e)This section shall remain in effect only until July 1, 2028, and as of that date is repealed.
SEC. 6.Section 14017.1 is added to the Unemployment Insurance Code, to read:14017.1.(a)To ensure that job training services investments are linked to regional labor market demand and provide opportunities for upward mobility, the board and the Employment Development Department shall work collaboratively to measure and report on training-related job placement outcomes for individuals receiving job training services provided through the workforce system, including all job training services funded by Title I of the federal Workforce Innovation and Opportunity Act (Pub. L. 113-128) and through grants administered by the board, regardless of the source of the moneys.
(b)For purposes of measuring training-related job placement outcomes, gathering data to report, and otherwise fulfilling subdivision (a), the board and the Employment Development Department shall work collaboratively to create a plan to use the existing unemployment insurance tax data collection infrastructure used to secure quarterly wage data from employers, to match relevant employee occupational data, employee place of employment data, and employee hours worked data, to persons who enroll in job training services. The plan shall include timelines, budget, funding constraints, and an outline of any additional recommended or necessary statutory changes to collect relevant data. The plan shall also outline the means for all of the following:
(1)Requiring local workforce development boards and grantees of board-administered grants to collect and report industry and occupation-specific data for all persons who enroll in job training services, including through the use of case management and performance reporting systems deployed for state and federal data collection and reporting.
(2)Developing and implementing a method to measure the second- and fourth-quarter prior earnings of a person, who is enrolled in a job training service, for purposes of measuring the persons increase in earnings following their participation in and exit from a program.
(3)Developing and implementing a means to measure wage and employment outcomes for a person following that persons participation in a job training service during the second, fourth, eighth, and twelfth quarters following participation in and exit from a program for purposes of measuring the persons increase in earnings over time.
(4)Calculating, by region, industry, occupation, and job training service provider, the wages, wage gains, employment rates, and training-related job placement rates at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(5)Calculating, by region, industry, occupation, and job training service provider, the rate of persons who participated in a job training service and who became employed at a wage at or above a living wage for the region. This calculation shall take into account the cost of living in the regional labor market where the person works or lives. The employment rate calculation shall be calculated at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(6)Calculating program completion, credential attainment, and measurable skills gains rates by job training service provider, industry, occupation, and region.
(7)Determining, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and measurable skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gain gains that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person works or lives.
(8)Developing and implementing a means of working with the local workforce development boards to notify, prior to their enrollment in a job training service, a person seeking to enroll in those services of the boards and Employment Development Departments findings on the efficacy of those services, particularly with respect to the likelihood of training related training-related job placement, the likelihood of job placement at or above a regional living wage, and the likelihood of wage gains at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program. Those findings shall be disaggregated by region, job training services provider, industry, and occupation.
(9)The board and the Employment Development Department shall, in compliance with Section 9795 of the Government Code, submit the plan to the Legislature no later than January 1, 2024.
(c)(1)Upon appropriation by the Legislature, the Employment Development Department and the board shall implement the plan developed pursuant to subdivision (b) to meet the reporting requirements of this chapter. Two years after the appropriation, the Employment Development Department and the board shall summarize and provide to the Legislature an initial report on the status of the implementation plan and the initial findings using the available data in alignment with subdivision (b).
(2)The report and findings required by paragraph (1) shall be provided to the Senate Committee on Business, Professions and Economic Development, Assembly Committee on Business and Professions, Senate Committee on Education, Assembly Committee on Education, Senate Committee on Labor, Public Employment and Retirement, and Assembly Committee on Labor and Employment. The report shall not include any personally identifiable information.
(3)Following the initial report in paragraph (1), the board and Employment Development Department shall annually update and include their findings in the report required to be submitted to the Legislature by subdivision (b) of Section 14211.
(4)If any portion of the reporting requirements of this section cannot be implemented absent further statutory change, the remaining requirements shall continue to be in effect.
(d)For purposes of this section, both of the following definitions shall apply:
(1)Job training services has the same meaning as training services, as that term is 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, and as that term is expanded on in paragraph (2) of subdivision (a) of Section 14211.
(2)Local workforce development board means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.
(3)Participation in a job training service shall mean participation in, but not necessarily completion of, the service.
(4)Program means a program under Title I of the federal Workforce Innovation and Opportunity Act or a grant program administered by the California Workforce Development Board.
(5)Training-related job placement means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.
(e)This section shall become operative on July 1, 2028.
SEC. 7.Section 14211 of the Unemployment Insurance Code is amended to read:14211.(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 through program year 2027, 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)Except as provided in subdivision (b), 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)Skills 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 expenditure on training and supportive services. 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.
(viii)Supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, but only for those individuals enrolled in training services for occupations in demand by industry, 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. Supportive services may include, but are not limited to, the costs of trainees or students books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.
(ix)Temporary Assistance for Needy Families (TANF) funds spent on supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, for TANF enrolled individuals coenrolled in and receiving training services for occupations in demand by industry through the federal Workforce Innovation and Opportunity Act of 2014. Supportive services may include, but are not limited to, the costs of trainees or students books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.
(x)Temporary Assistance for Needy Families (TANF) funds spent on transitional and subsidized employment for TANF enrolled individuals coenrolled in and receiving training services through the federal Workforce Innovation and Opportunity Act of 2014.
(xi)Any other local, state, or federal funds spent on training or supportive services for individuals enrolled in training, provided the individuals receiving the training are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.
(xii)With the approval of the state board, any other public or private funds source not identified in this subparagraph that is used to provide training or supportive services for individuals who are also enrolled in training provided the individuals receiving the relevant services are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.
(B)Credit for leveraged funds shall only be given if the local workforce development board keeps records of all training and supportive services expenditures it chooses to apply to the credit. Training and supportive services expenditures may only be applied to the credit if the relevant training costs can be independently verified by the Employment Development Department and, without exception, 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. A local workforce development board shall annually provide data to the Employment Development Department on the amount of leveraged funds used to partially meet the requirements of subdivision (a). This data shall disaggregate and report separately, the amount spent on both training and supportive services. Costs arising from the recordkeeping required to demonstrate compliance with the leveraging requirements of this subdivision are the responsibility of the local board.
(c)(1)At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the expenditure requirements of this section.
(2)The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the expenditure requirements of this section.
(3)The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the training and supportive services expenditures made by local workforce development boards pursuant to the expenditure requirements of this section.
(4)Consistent with the definitions and regulations of the federal Workforce Innovation and Opportunity Act of 2014, the Employment Development Department shall specify which expenditures qualify as training and supportive services expenditures. The annual report shall specify the total amount of federal funding provided to the state and to each of the local workforce development areas for the adult and dislocated persons programs and the amount of these federal Workforce Innovation and Opportunity Act of 2014 funds expended for training services.
(5)Consistent with calculations required by paragraph (1), the report shall also include, for each local workforce development area, the total amount of leverage funds utilized as training expenditure allowances authorized by subdivision (b) to meet the expenditure requirements of this section. The report shall specify the share of leverage funds that were expended on both training and supportive services for each Local Workforce Development Area.
(6)A report submitted pursuant to this section shall comply with Section 9795 of the Government Code.
(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.
(f)This section shall remain in effect only until July 1, 2028, and as of that date is repealed.
SEC. 8.Section 14211 is added to the Unemployment Insurance Code, to read:14211.(a)(1)Beginning program year 2028, local workforce development boards shall ensure that at least 50 percent of participants enrolled in the adult and dislocated worker programs funded under Title I of the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) receive workforce training services.
(2)Training services that count toward the participant training requirement set forth in paragraph (1) shall include only the following, 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:
(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)Skills 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)Job readiness training provided in combination with any of the services described in subparagraphs (A) to (G), inclusive.
(I)Adult education and literacy activities provided in combination with services described in any of subparagraphs (A) to (G), inclusive.
(J)Customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training.
(K)Other leveraged training programs that are not part of Title I of the federal Workforce Innovation and Opportunity Act of 2014.
(b)(1)At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the participant training requirement of this section.
(2)The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the participant training requirement of this section. The Employment Development Department shall also provide to each local workforce development board its individual calculations of the percentage of funds spent on training services.
(3)(A)The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the aggregate number of participants enrolled in adult and dislocated worker programs across all local workforce development areas and the aggregate percentage of enrolled participants receiving training services.
(B)(i)The Employment Development Department shall separately report, on an annual basis, to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, the training expenditures and supportive service expenditures made by local workforce development boards for each subgrant agreement for which the two-year availability period of funds has ended. The Employment Development Department may explain the differences between the reporting periods and measures used in this report and in the report required pursuant to subparagraph (A).
(ii)(I)The Employment Development Department shall specify the expenditures that qualify as training and supportive services expenditures, consistent with the definitions and regulations of the federal Workforce Innovation and Opportunity Act of 2014, except as provided in subclause (II).
(II)Notwithstanding subclause (I), training expenditures reported pursuant to this subparagraph shall also include expenditures for transitional jobs in accordance with Section 3174(d)(5) of Title 29 of the United States Code.
(iii)The annual expenditure report required pursuant to this subparagraph shall specify the total amount of federal funding provided to the state and to each of the local workforce development areas for the adult and dislocated persons programs and the amount of federal Workforce Innovation and Opportunity Act of 2014 funds expended for training services. The report shall also include, for each local workforce development area, the total amount of leverage funds used and shall specify the share of leverage funds that were expended on both training and supportive services for each local workforce development area. Leverage funds shall be reported separately from the expenditure of funds provided under Title I of the federal Workforce Innovation and Opportunity Act of 2014. If a local workforce development area does not report leverage funds, the report shall indicate that instead of reporting an amount of zero.
(4)A report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.(c)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 participant training requirement and describes actions taken to address the identified participant training 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 paragraph (1) of subdivision (b).
(d)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.
(e)This section shall become operative on July 1, 2028.
SEC. 9.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)The Legislature finds and declares all of the following:
(1)The federal Workforce Pell Grant program (Public Law 119-21) allows funding to be used for certain short-term workforce training programs that demonstrate positive employment and earnings outcomes.
(2)In implementing the federal Workforce Pell Grant program, states may impose standards to protect students from financially risky, low-quality, or fraudulent short-term programs and to protect students from incurring debt they cannot repay.
(3)Title I of the federal Workforce Innovation and Opportunity Act (WIOA) of 2014 (Public Law 113-128) provides another funding stream for workforce training services for adults and dislocated workers.
(4)A report commissioned by the California Workforce Development Board in 2022 found that Californias WIOA-enrolled participants who received targeted training services were significantly more likely to find employment and earn higher wages compared to those who only received basic career services.
(5)Encouraging more participants to receive training, rather than spending more dollars on training, will increase access to high-quality, no-cost or low-cost workforce training and education offered through community colleges and adult schools, and deepen collaborations between local workforce development boards and community colleges.
(6)A participant training requirement will leverage federal Workforce Pell Grant program funds as a new funding stream to support training that would allow more WIOA dollars to be spent on supports and services to increase participants completion and job placement.
(b)It is the intent of the Legislature to expand access to high-quality workforce training opportunities by defining standards for short-term programs to be eligible for the federal Workforce Pell Grant program and requiring an increase in participants that receive workforce training services under Title I of WIOA.
SEC. 2.Section 69870.5 is added to the Education Code, to read:69870.5.A public postsecondary educational institution shall not disburse Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and shall not advertise, market, or inform students about the availability of those funds, unless the institution has met both of the following:
(a)Obtained authorization from the commission, on behalf of the Governor, pursuant to this article.
(b)Obtained approvals and met all requirements set forth by the United States Department of Education.
SEC. 3.Section 69871.5 is added to the Education Code, to read:69871.5.The commission shall not authorize a public postsecondary educational institution to receive Workforce Pell Grant program funds for a short-term program if the institution does any of the following:
(a)Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the United States Department of Education to provide, or offer to provide, instruction for the short-term program, unless one of the following applies:
(1)The institution partners, contracts, or affiliates with the entity for the purpose of offering instruction for a registered apprenticeship program.
(2)The short-term program has a contract education agreement with a participating community college and a provider pursuant to Section 78021, provided that both the institution and the short-term program meet all applicable federal Title IV (20 U.S.C. Sec. 1070 et seq.) and Workforce Pell Grant program requirements.
(3)The entity and institution meet all of the following requirements:
(A)Clearly and prominently discloses that the entity is a company that is separate from the institution and describes all of the services that the entity is contracted to provide for the institution in all of the following places:
(i)On the institutions internet website.
(ii)In marketing materials used by the institution about the short-term program.
(iii)In oral communications with prospective students of the short-term program that are made by the institution.
(B)The entity is not paid using incentive compensation or tuition sharing with the institution.
(C)The entity does not participate in, or exercise authority over, the institutions governance or decisionmaking processes on factors, including, but not limited to, the design or development of course curriculum or instruction, setting of short-term program admission standards, determining enrollment targets, or creation of new short-term programs.
(b)Offers or affiliates with a company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.
(c)(1)Charges tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant program funds available for a student in the short-term program, as determined by the Secretary of the United States Department of Education, for the period of time that the program is offered.
(2)Paragraph (1) shall not apply to any portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount if that excess amount is paid on behalf of the student by an employer, a labor-management partnership, or another third party, provided that the third party is not a lender or an offeror of a private education loan or other credit product for which the student bears any responsibility for repayment.
SEC. 4.Section 69873.5 is added to the Education Code, to read:69873.5.(a)The commission may use the California Priority Jobs Credentials List to determine whether a short-term program satisfies the following requirements under the Workforce Pell Grant program:
(1)Provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations.
(2)Meets the hiring requirements of employers in high-skill, high-wage, or in-demand sectors or occupations.
(3)Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards students with the credential upon completion of the short-term program.
(b)The Labor and Workforce Development Agency may enter into a data-sharing agreement with the Office of Cradle-to-Career Data to the extent it is necessary to establish and maintain the California Priority Jobs Credential List.
SEC. 5.Section 14017.1 of the Unemployment Insurance Code is amended to read:14017.1.(a)To ensure that job training services investments are linked to regional labor market demand and provide opportunities for upward mobility, the board and the Employment Development Department shall work collaboratively to measure and report on training-related job placement outcomes for individuals receiving job training services provided through the workforce system, including all job training services funded by Title I of the federal Workforce Innovation and Opportunity Act (Pub. L. 113-128) and through grants administered by the board, regardless of the source of the moneys.
(b)For purposes of measuring training-related job placement outcomes, gathering data to report, and otherwise fulfilling subdivision (a), the board and the Employment Development Department shall work collaboratively to create a plan to use the existing unemployment insurance tax data collection infrastructure used to secure quarterly wage data from employers, to match relevant employee occupational data, employee place of employment data, and employee hours worked data, to persons who enroll in job training services. The plan shall include timelines, budget, funding constraints, and an outline of any additional recommended or necessary statutory changes to collect relevant data. The plan shall also outline the means for all of the following:
(1)Requiring local workforce development boards and grantees of board-administered grants to collect and report industry and occupation-specific data for all persons who enroll in job training services, including through the use of case management and performance reporting systems deployed for state and federal data collection and reporting.
(2)Developing and implementing a method to measure the second- and fourth-quarter prior earnings of a person, who is enrolled in a job training service, for purposes of measuring the persons increase in earnings following their participation in and exit from a program.
(3)Developing and implementing a means to measure wage and employment outcomes for a person following that persons participation in a job training service during the second, fourth, eighth, and twelfth quarters following participation in and exit from a program for purposes of measuring the persons increase in earnings over time.
(4)Calculating, by region, industry, occupation, and job training service provider, the wages, wage gains, employment rates, and training-related job placement rates at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(5)Calculating, by region, industry, occupation, and job training service provider, the rate of persons who participated in a job training service and who became employed at a wage at or above a living wage for the region. This calculation shall take into account the cost of living in the regional labor market where the person works or lives. The employment rate calculation shall be calculated at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(6)Calculating program completion, credential attainment, and measurable skills gains rates by job training service provider, industry, occupation, and region.
(7)Determining, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and measurable skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gain that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person works or lives.
(8)Developing and implementing a means of working with the local workforce development boards to notify, prior to their enrollment in a job training service, a person seeking to enroll in those services of the boards and Employment Development Departments findings on the efficacy of those services, particularly with respect to the likelihood of training related job placement, the likelihood of job placement at or above a regional living wage, and the likelihood of wage gains at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program. Those findings shall be disaggregated by region, job training services provider, industry, and occupation.
(9)The board and the Employment Development Department shall, in compliance with Section 9795 of the Government Code, submit the plan to the Legislature no later than January 1, 2024.
(c)(1)Upon appropriation by the Legislature, the Employment Development Department and the board shall implement the plan developed pursuant to subdivision (b) to meet the reporting requirements of this chapter. Two years after the appropriation, the Employment Development Department and the board shall summarize and provide to the Legislature an initial report on the status of the implementation plan and the initial findings using the available data in alignment with subdivision (b).
(2)The report and findings required by paragraph (1) shall be provided to the Senate Committee on Business, Professions and Economic Development, Assembly Committee on Business and Professions, Senate Committee on Education, Assembly Committee on Education, Senate Committee on Labor, Public Employment and Retirement, and Assembly Committee on Labor and Employment. The report shall not include any personally identifiable information.
(3)Following the initial report in paragraph (1), the board and Employment Development Department shall annually update and include their findings in the report required to be submitted to the Legislature by subdivision (c) of Section 14211.
(4)If any portion of the reporting requirements of this section cannot be implemented absent further statutory change, the remaining requirements shall continue to be in effect.
(d)For purposes of this section, both of the following definitions shall apply:
(1)Job training services has the same meaning as training services, as that term is 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, and as that term is expanded on in paragraph (3) of subdivision (a) of Section 14211.
(2)Local workforce development board means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.
(3)Participation in a job training service shall mean participation in, but not necessarily completion of, the service.
(4)Program means a program under Title I of the federal Workforce Innovation and Opportunity Act or a grant program administered by the California Workforce Development Board.
(5)Training-related job placement means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.
(e)This section shall remain in effect only until July 1, 2028, and as of that date is repealed.
SEC. 6.Section 14017.1 is added to the Unemployment Insurance Code, to read:14017.1.(a)To ensure that job training services investments are linked to regional labor market demand and provide opportunities for upward mobility, the board and the Employment Development Department shall work collaboratively to measure and report on training-related job placement outcomes for individuals receiving job training services provided through the workforce system, including all job training services funded by Title I of the federal Workforce Innovation and Opportunity Act (Pub. L. 113-128) and through grants administered by the board, regardless of the source of the moneys.
(b)For purposes of measuring training-related job placement outcomes, gathering data to report, and otherwise fulfilling subdivision (a), the board and the Employment Development Department shall work collaboratively to create a plan to use the existing unemployment insurance tax data collection infrastructure used to secure quarterly wage data from employers, to match relevant employee occupational data, employee place of employment data, and employee hours worked data, to persons who enroll in job training services. The plan shall include timelines, budget, funding constraints, and an outline of any additional recommended or necessary statutory changes to collect relevant data. The plan shall also outline the means for all of the following:
(1)Requiring local workforce development boards and grantees of board-administered grants to collect and report industry and occupation-specific data for all persons who enroll in job training services, including through the use of case management and performance reporting systems deployed for state and federal data collection and reporting.
(2)Developing and implementing a method to measure the second- and fourth-quarter prior earnings of a person, who is enrolled in a job training service, for purposes of measuring the persons increase in earnings following their participation in and exit from a program.
(3)Developing and implementing a means to measure wage and employment outcomes for a person following that persons participation in a job training service during the second, fourth, eighth, and twelfth quarters following participation in and exit from a program for purposes of measuring the persons increase in earnings over time.
(4)Calculating, by region, industry, occupation, and job training service provider, the wages, wage gains, employment rates, and training-related job placement rates at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(5)Calculating, by region, industry, occupation, and job training service provider, the rate of persons who participated in a job training service and who became employed at a wage at or above a living wage for the region. This calculation shall take into account the cost of living in the regional labor market where the person works or lives. The employment rate calculation shall be calculated at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program.
(6)Calculating program completion, credential attainment, and measurable skills gains rates by job training service provider, industry, occupation, and region.
(7)Determining, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and measurable skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gain that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person works or lives.
(8)Developing and implementing a means of working with the local workforce development boards to notify, prior to their enrollment in a job training service, a person seeking to enroll in those services of the boards and Employment Development Departments findings on the efficacy of those services, particularly with respect to the likelihood of training related job placement, the likelihood of job placement at or above a regional living wage, and the likelihood of wage gains at the second, fourth, eighth, and twelfth quarters following a persons participation in and exit from a program. Those findings shall be disaggregated by region, job training services provider, industry, and occupation.
(9)The board and the Employment Development Department shall, in compliance with Section 9795 of the Government Code, submit the plan to the Legislature no later than January 1, 2024.
(c)(1)Upon appropriation by the Legislature, the Employment Development Department and the board shall implement the plan developed pursuant to subdivision (b) to meet the reporting requirements of this chapter. Two years after the appropriation, the Employment Development Department and the board shall summarize and provide to the Legislature an initial report on the status of the implementation plan and the initial findings using the available data in alignment with subdivision (b).
(2)The report and findings required by paragraph (1) shall be provided to the Senate Committee on Business, Professions and Economic Development, Assembly Committee on Business and Professions, Senate Committee on Education, Assembly Committee on Education, Senate Committee on Labor, Public Employment and Retirement, and Assembly Committee on Labor and Employment. The report shall not include any personally identifiable information.
(3)Following the initial report in paragraph (1), the board and Employment Development Department shall annually update and include their findings in the report required to be submitted to the Legislature by subdivision (b) of Section 14211.
(4)If any portion of the reporting requirements of this section cannot be implemented absent further statutory change, the remaining requirements shall continue to be in effect.
(d)For purposes of this section, both of the following definitions shall apply:
(1)Job training services has the same meaning as training services, as that term is 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, and as that term is expanded on in paragraph (2) of subdivision (a) of Section 14211.
(2)Local workforce development board means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.
(3)Participation in a job training service shall mean participation in, but not necessarily completion of, the service.
(4)Program means a program under Title I of the federal Workforce Innovation and Opportunity Act or a grant program administered by the California Workforce Development Board.
(5)Training-related job placement means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.
(e)This section shall become operative on July 1, 2028.
SEC. 7.Section 14211 of the Unemployment Insurance Code is amended to read:14211.(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, 2016 through program year 2027, 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)Except as provided in subdivision (b), 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)Skills 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 expenditure on training and supportive services. 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.
(viii)Supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, but only for those individuals enrolled in training services for occupations in demand by industry, 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. Supportive services may include, but are not limited to, the costs of trainees or students books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.
(ix)Temporary Assistance for Needy Families (TANF) funds spent on supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, for TANF enrolled individuals coenrolled in and receiving training services for occupations in demand by industry through the federal Workforce Innovation and Opportunity Act of 2014. Supportive services may include, but are not limited to, the costs of trainees or students books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.
(x)Temporary Assistance for Needy Families (TANF) funds spent on transitional and subsidized employment for TANF enrolled individuals coenrolled in and receiving training services through the federal Workforce Innovation and Opportunity Act of 2014.
(xi)Any other local, state, or federal funds spent on training or supportive services for individuals enrolled in training, provided the individuals receiving the training are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.
(xii)With the approval of the state board, any other public or private funds source not identified in this subparagraph that is used to provide training or supportive services for individuals who are also enrolled in training provided the individuals receiving the relevant services are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.
(B)Credit for leveraged funds shall only be given if the local workforce development board keeps records of all training and supportive services expenditures it chooses to apply to the credit. Training and supportive services expenditures may only be applied to the credit if the relevant training costs can be independently verified by the Employment Development Department and, without exception, 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. A local workforce development board shall annually provide data to the Employment Development Department on the amount of leveraged funds used to partially meet the requirements of subdivision (a). This data shall disaggregate and report separately, the amount spent on both training and supportive services. Costs arising from the recordkeeping required to demonstrate compliance with the leveraging requirements of this subdivision are the responsibility of the local board.
(c)(1)At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the expenditure requirements of this section.
(2)The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the expenditure requirements of this section.
(3)The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the training and supportive services expenditures made by local workforce development boards pursuant to the expenditure requirements of this section.
(4)Consistent with the definitions and regulations of the federal Workforce Innovation and Opportunity Act of 2014, the Employment Development Department shall specify which expenditures qualify as training and supportive services expenditures. The annual report shall specify the total amount of federal funding provided to the state and to each of the local workforce development areas for the adult and dislocated persons programs and the amount of these federal Workforce Innovation and Opportunity Act of 2014 funds expended for training services.
(5)Consistent with calculations required by paragraph (1), the report shall also include, for each local workforce development area, the total amount of leverage funds utilized as training expenditure allowances authorized by subdivision (b) to meet the expenditure requirements of this section. The report shall specify the share of leverage funds that were expended on both training and supportive services for each Local Workforce Development Area.
(6)A report submitted pursuant to this section shall comply with Section 9795 of the Government Code.
(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.
(f)This section shall remain in effect only until July 1, 2028, and as of that date is repealed.
SEC. 8.Section 14211 is added to the Unemployment Insurance Code, to read:14211.(a)(1)Beginning program year 2028, local workforce development boards shall ensure that at least 50 percent of participants enrolled in the adult and dislocated worker programs funded under Title I of the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) receive workforce training services.
(2)Training services that count toward the participant training requirement set forth in paragraph (1) shall include only the following, 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:
(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)Skills 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)Job readiness training provided in combination with any of the services described in subparagraphs (A) to (G), inclusive.
(I)Adult education and literacy activities provided in combination with services described in any of subparagraphs (A) to (G), inclusive.
(J)Customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training.
(K)Other leveraged training programs that are not part of Title I of the federal Workforce Innovation and Opportunity Act of 2014.
(b)(1)At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the participant training requirement of this section.
(2)The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the participant training requirement of this section.
(3)The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the aggregate number of participants enrolled in adult and dislocated worker programs across all local workforce development areas and the aggregate percentage of enrolled participants receiving training services.
(4)A report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
(c)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 participant training requirement and describes actions taken to address the identified participant training 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 paragraph (1) of subdivision (b).
(d)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.
(e)This section shall become operative on July 1, 2028.
SEC. 9.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.Article 17 (commencing with Section 69870) is added to Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, to read:17.Federal Workforce Pell Grant Program69870.For purposes of this article, the following definitions apply:(a)Advisory board means the California Workforce Pell Grant Advisory Board established pursuant to Section 69873.(b)Postsecondary educational institution means a campus of the University of California, the California State University, or the California Community Colleges, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance.(c)Short-term program means an educational program offered by a postsecondary educational institution that includes 150 to 599, inclusive, hours of instruction, or an equivalent number of credit hours, over 8 to 14 weeks, inclusive.(d)Workforce Pell Grant program means the federal program established pursuant to the One Big Beautiful Bill Act (Public Law 119-21), under which federal Workforce Pell Grants may be awarded to students enrolled in a short-term program at a postsecondary educational institution.69871.A postsecondary educational institution with or without a physical presence in the state shall not disburse Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and shall not advertise, market, or inform students about the availability of those funds unless the institution has met both of the following:(a)Obtained authorization from the Governor pursuant to this article.(b)Obtained approvals and met all requirements set forth by the United States Department of Education.69872.(a)The Governor shall determine whether a postsecondary educational institutions short-term program meets the requirements established pursuant to this article. The Governor may consult with relevant entities to make that determination.(b)A postsecondary educational institution seeking a determination that one or more of its short-term programs meets the requirements of the Workforce Pell Grant program shall provide all of the following to the Governor:(1)Documentation that the short-term program meets all of the following requirements:(A)Provides an education aligned with the requirements of a high-skill, high-wage occupation as identified by the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006 (Public Law 109-270) or aligned with the requirements of an in-demand industry or occupation.(B)The hiring requirements of employers in the sectors or occupations identified pursuant to subparagraph (A).(C)Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards students with the credential upon completion of the short-term program.(D)Prepares students to pursue one or more certificates or degrees at the postsecondary educational institution by ensuring that upon completion of the short-term program and enrollment in a related certificate or degree program, a student will receive academic credit that the institution will accept toward that certificate or degree and that the academic credit will be accepted toward meeting the certificate or degree program requirements.(2)Certification with any applicable verification required by the Governor that is sufficient to demonstrate that for each federal aid award year, the short-term program meets all of the following:(A)A completion rate of at least 70 percent, within 150 percent of the normal time for completion of the program, verified by an independent auditor.(B)A job placement rate of at least 70 percent, measured within 180 days after completion of the program, verified in a manner determined by the Governor.(C)For the 12 months preceding the date that the postsecondary educational institution applied for approval, the institution offered the short-term program and the short-term program met the requirements of subparagraphs (A) to (D), inclusive, of paragraph (1).(3)Data requested by the Governor related to the short-term program, which shall include, but not be limited to, all of the following:(A)Program-level data, including all of the following:(i)The name of the short-term program.(ii)The Classification of Instructional Programs code and title.(iii)(I)For a postsecondary educational institution with a physical presence in the state, the total number of students that enrolled in the short-term program during the previously completed federal financial aid award year, the students state of residence, and the number of those students that completed the short-term program.(II)For a postsecondary educational institution without a physical presence in the state, the total number of students living in the state that enrolled in the short-term program during the previously completed federal financial aid award year and the number of those students that completed the short-term program.(iv)The total cost of attendance, including tuition and fees, and the average cost of the short-term program.(v)Any information requested by the Governor that will enable the Governor to calculate the median earnings and percentage of graduates who are employed.(vi)The number of students who completed the short-term program that are employed in a position related to the short-term program and a list of the positions and employers that are considered to be in the programs field of study, if available.(B)Student-level data, as determined by the Governor, including, but not limited to, both of the following:(i)Demographic information, including student identifiers, names, dates of birth, and race or ethnicity.(ii)Financial aid information, including dependency status, family income, aid amounts, including federal, state, and institutional aid, Pell Grant status, net cost, tuition, and fees.(c)The Governor shall not authorize a postsecondary educational institution to receive Workforce Pell Grant program funds for a short-term program unless all of the following have been met:(1)The Governor determines that the short-term program meets the requirements set forth in Section 83002(b) of the One Big Beautiful Bill Act, or in any applicable federal or state law or regulation.(2)The Governor has consulted with the Labor and Workforce Development Agency and the advisory board.(3)The postsecondary educational institution has met the requirements of subdivision (b).(4)The postsecondary educational institution does not do any of the following:(A)Partner, affiliate, contract, or use any institution, company, or service provider to offer instruction for the short-term program that is not accredited by an accrediting agency recognized and approved by the United States Department of Education.(B)Offer or affiliate with any company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.(C)Charge tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant funds available for a student in the short-term program, as determined by the Secretary of the United States Department of Education, for the period of time that the program is offered.(5)The postsecondary educational institution is accredited by an accrediting agency recognized and approved by the United States Department of Education and that reviews and provides approval for short-term programs.(6)The short-term program is offered using only credit-bearing courses that are reviewed by the postsecondary educational institutions accrediting agency.(d)The Governor shall revoke the approval of a postsecondary educational institution related to the Workforce Pell Grant program if either of the following occurs:(1)The postsecondary educational institution fails to annually meet the requirements of subdivision (b).(2)The postsecondary educational institution is determined by a court to have engaged in unlawful, unfair, or fraudulent business acts or practices, including unfair, deceptive, untrue, or misleading statements related to the short-term program.(e)The Governor may enter into a data-sharing agreement with the Labor and Workforce Development Agency to match program and student data in order to obtain any of the following:(1)Standard Occupational Classification codes and titles.(2)North American Industry Classification System codes and titles.(3)Preenrollment and postenrollment employment status and employer.(4)Preenrollment and postenrollment earnings data.69873.(a)The California Workforce Pell Grant Advisory Board is hereby established for purposes of reviewing short-term programs that may be eligible for Workforce Pell Grant funds and recommending to postsecondary educational institutions, or the Governor, necessary processes and policies, including, but not limited to, data collecting and reporting, program approval and denials, managing student transitions when programs are deemed ineligible for funding, and designating an entity to manage student complaints.(b)The advisory board shall consist of all of the following:(1)A representative from the Labor and Workforce Development Agency.(2)A representative from the California Workforce Development Board.(3)A representative from the Employment Training Panel.(4)A representative from the Employment Development Department.(5)A representative from the Division of Apprenticeship Standards.(6)The President of the University of California.(7)The Chancellor of the California State University.(8)The Chancellor of the California Community Colleges.(9)A representative from the Student Aid Commission.(10)A representative from the Bureau for Private Postsecondary Education.(11)A representative from the Association of Independent California Colleges and Universities.(12)A representative from the State Department of Education.(13)A representative from the California Health and Human Services Agency.(14)A representative from the Governors Office of Business and Economic Development.(15)A representative from the Office of Cradle-to-Career Data.(16)Industry leaders.(17)Nonprofit leaders.(18)Other representatives designated by the Governor.69874.(a)A postsecondary educational institution shall ensure that any confidential student information collected for purposes of this article is only disclosed to the Governor or relevant state entities.(b)A postsecondary educational institution shall separately identify any confidential information submitted to the Governor or relevant state entities pursuant to this article. Any information that is not identified as confidential information shall be considered public information and subject to disclosure.69875.The Labor and Workforce Development Agency may adopt rules and regulations for the implementation of this article as it deems necessary.69876.This article shall take effect on July 1, 2026.SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Section 69874 to the Education Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To ensure access and use of federal Workforce Pell Grant program funds, which serve the states economic interests, the privacy of student data submitted to institutions on a confidential basis must be maintained.SEC. 3.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:In order to effectively implement the expansion of the Pell Grant program for students enrolled in short-term programs by July 1, 2026, it is essential to safeguard Californians from depleting their limited lifetime Pell Grant eligibility on low-quality, overly expensive, or fraudulent programs that fail to provide genuine opportunities for economic mobility and allow quality short-term programs the ability to provide Pell Grants so more students may access and benefit from career training, and therefore, it is necessary for this act to take effect immediately.For purposes of this article, the following definitions apply:
(a)Advisory board means the California Workforce Pell Grant Advisory Board established pursuant to Section 69873.
(b)Postsecondary educational institution means a campus of the University of California, the California State University, or the California Community Colleges, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance.
(c)Short-term program means an educational program offered by a postsecondary educational institution that includes 150 to 599, inclusive, hours of instruction, or an equivalent number of credit hours, over 8 to 14 weeks, inclusive.
(d)Workforce Pell Grant program means the federal program established pursuant to the One Big Beautiful Bill Act (Public Law 119-21), under which federal Workforce Pell Grants may be awarded to students enrolled in a short-term program at a postsecondary educational institution.
69871.A postsecondary educational institution with or without a physical presence in the state shall not disburse Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and shall not advertise, market, or inform students about the availability of those funds unless the institution has met both of the following:
(a)Obtained authorization from the Governor pursuant to this article.
(b)Obtained approvals and met all requirements set forth by the United States Department of Education.
69872.(a)The Governor shall determine whether a postsecondary educational institutions short-term program meets the requirements established pursuant to this article. The Governor may consult with relevant entities to make that determination.
(b)A postsecondary educational institution seeking a determination that one or more of its short-term programs meets the requirements of the Workforce Pell Grant program shall provide all of the following to the Governor:
(1)Documentation that the short-term program meets all of the following requirements:
(A)Provides an education aligned with the requirements of a high-skill, high-wage occupation as identified by the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006 (Public Law 109-270) or aligned with the requirements of an in-demand industry or occupation.
(B)The hiring requirements of employers in the sectors or occupations identified pursuant to subparagraph (A).
(C)Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards students with the credential upon completion of the short-term program.
(D)Prepares students to pursue one or more certificates or degrees at the postsecondary educational institution by ensuring that upon completion of the short-term program and enrollment in a related certificate or degree program, a student will receive academic credit that the institution will accept toward that certificate or degree and that the academic credit will be accepted toward meeting the certificate or degree program requirements.
(2)Certification with any applicable verification required by the Governor that is sufficient to demonstrate that for each federal aid award year, the short-term program meets all of the following:
(A)A completion rate of at least 70 percent, within 150 percent of the normal time for completion of the program, verified by an independent auditor.
(B)A job placement rate of at least 70 percent, measured within 180 days after completion of the program, verified in a manner determined by the Governor.
(C)For the 12 months preceding the date that the postsecondary educational institution applied for approval, the institution offered the short-term program and the short-term program met the requirements of subparagraphs (A) to (D), inclusive, of paragraph (1).
(3)Data requested by the Governor related to the short-term program, which shall include, but not be limited to, all of the following:
(A)Program-level data, including all of the following:
(i)The name of the short-term program.
(ii)The Classification of Instructional Programs code and title.
(iii)(I)For a postsecondary educational institution with a physical presence in the state, the total number of students that enrolled in the short-term program during the previously completed federal financial aid award year, the students state of residence, and the number of those students that completed the short-term program.
(II)For a postsecondary educational institution without a physical presence in the state, the total number of students living in the state that enrolled in the short-term program during the previously completed federal financial aid award year and the number of those students that completed the short-term program.
(iv)The total cost of attendance, including tuition and fees, and the average cost of the short-term program.
(v)Any information requested by the Governor that will enable the Governor to calculate the median earnings and percentage of graduates who are employed.
(vi)The number of students who completed the short-term program that are employed in a position related to the short-term program and a list of the positions and employers that are considered to be in the programs field of study, if available.
(B)Student-level data, as determined by the Governor, including, but not limited to, both of the following:
(i)Demographic information, including student identifiers, names, dates of birth, and race or ethnicity.
(ii)Financial aid information, including dependency status, family income, aid amounts, including federal, state, and institutional aid, Pell Grant status, net cost, tuition, and fees.
(c)The Governor shall not authorize a postsecondary educational institution to receive Workforce Pell Grant program funds for a short-term program unless all of the following have been met:
(1)The Governor determines that the short-term program meets the requirements set forth in Section 83002(b) of the One Big Beautiful Bill Act, or in any applicable federal or state law or regulation.
(2)The Governor has consulted with the Labor and Workforce Development Agency and the advisory board.
(3)The postsecondary educational institution has met the requirements of subdivision (b).
(4)The postsecondary educational institution does not do any of the following:
(A)Partner, affiliate, contract, or use any institution, company, or service provider to offer instruction for the short-term program that is not accredited by an accrediting agency recognized and approved by the United States Department of Education.
(B)Offer or affiliate with any company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.
(C)Charge tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant funds available for a student in the short-term program, as determined by the Secretary of the United States Department of Education, for the period of time that the program is offered.
(5)The postsecondary educational institution is accredited by an accrediting agency recognized and approved by the United States Department of Education and that reviews and provides approval for short-term programs.
(6)The short-term program is offered using only credit-bearing courses that are reviewed by the postsecondary educational institutions accrediting agency.
(d)The Governor shall revoke the approval of a postsecondary educational institution related to the Workforce Pell Grant program if either of the following occurs:
(1)The postsecondary educational institution fails to annually meet the requirements of subdivision (b).
(2)The postsecondary educational institution is determined by a court to have engaged in unlawful, unfair, or fraudulent business acts or practices, including unfair, deceptive, untrue, or misleading statements related to the short-term program.
(e)The Governor may enter into a data-sharing agreement with the Labor and Workforce Development Agency to match program and student data in order to obtain any of the following:
(1)Standard Occupational Classification codes and titles.
(2)North American Industry Classification System codes and titles.
(3)Preenrollment and postenrollment employment status and employer.
(4)Preenrollment and postenrollment earnings data.
69873.(a)The California Workforce Pell Grant Advisory Board is hereby established for purposes of reviewing short-term programs that may be eligible for Workforce Pell Grant funds and recommending to postsecondary educational institutions, or the Governor, necessary processes and policies, including, but not limited to, data collecting and reporting, program approval and denials, managing student transitions when programs are deemed ineligible for funding, and designating an entity to manage student complaints.
(b)The advisory board shall consist of all of the following:
(1)A representative from the Labor and Workforce Development Agency.
(2)A representative from the California Workforce Development Board.
(3)A representative from the Employment Training Panel.
(4)A representative from the Employment Development Department.
(5)A representative from the Division of Apprenticeship Standards.
(6)The President of the University of California.
(7)The Chancellor of the California State University.
(8)The Chancellor of the California Community Colleges.
(9)A representative from the Student Aid Commission.
(10)A representative from the Bureau for Private Postsecondary Education.
(11)A representative from the Association of Independent California Colleges and Universities.
(12)A representative from the State Department of Education.
(13)A representative from the California Health and Human Services Agency.
(14)A representative from the Governors Office of Business and Economic Development.
(15)A representative from the Office of Cradle-to-Career Data.
(16)Industry leaders.
(17)Nonprofit leaders.
(18)Other representatives designated by the Governor.
69874.(a)A postsecondary educational institution shall ensure that any confidential student information collected for purposes of this article is only disclosed to the Governor or relevant state entities.
(b)A postsecondary educational institution shall separately identify any confidential information submitted to the Governor or relevant state entities pursuant to this article. Any information that is not identified as confidential information shall be considered public information and subject to disclosure.
69875.The Labor and Workforce Development Agency may adopt rules and regulations for the implementation of this article as it deems necessary.
69876.This article shall take effect on July 1, 2026.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Section 69874 to the Education Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
To ensure access and use of federal Workforce Pell Grant program funds, which serve the states economic interests, the privacy of student data submitted to institutions on a confidential basis must be maintained.
SEC. 3.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to effectively implement the expansion of the Pell Grant program for students enrolled in short-term programs by July 1, 2026, it is essential to safeguard Californians from depleting their limited lifetime Pell Grant eligibility on low-quality, overly expensive, or fraudulent programs that fail to provide genuine opportunities for economic mobility and allow quality short-term programs the ability to provide Pell Grants so more students may access and benefit from career training, and therefore, it is necessary for this act to take effect immediately.
REVISIONS: HeadingLine 2.For purposes of this article, the following definitions apply:
(a)Advisory board means the California Workforce Pell Grant Advisory Board established pursuant to Section 69873.
(b)Authorized state entity means ____.(c)Participating institution means a federal Workforce Pell Grant-eligible postsecondary educational institution that offers a short-term program in the state or enrolls students living in the state in a short-term program.(d)(b)Postsecondary educational institution means a campus of the University of California, the California State University, or the California Community Colleges, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance.
(e)(c)Short-term program means an educational program offered by a participating postsecondary educational institution that includes 150 to 599, inclusive, hours of instruction, or an equivalent number of credit hours, over 8 to 14 weeks, inclusive.
(f)(d)Workforce Pell Grant program means the federal program established pursuant to the One Big Beautiful Bill Act (Public Law 119-21), under which federal Workforce Pell Grants may be awarded to students enrolled in a short-term program at a participating postsecondary educational institution.
69871.A participating postsecondary educational institution with or without a physical presence in the state shall not disburse Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and shall not advertise, market, or inform students about the availability of those funds unless the institution has met both of the following:
(a)Obtained authorization from the authorized state entity Governor pursuant to this article.
(b)Obtained approvals and met all requirements set forth by the United States Department of Education.
69872.(a)The authorized state entity Governor shall determine whether a participating postsecondary educational institutions short-term program meets the requirements established pursuant to this article. The Governor may consult with relevant entities to make that determination.
(b)A participating postsecondary educational institution seeking a determination that one or more of its short-term programs meets the requirements of the Workforce Pell Grant program shall provide all of the following to the authorized state entity: Governor:
(1)Documentation that the short-term program meets all requirements set forth in Section 83002(b) of the One Big Beautiful Bill Act (Public Law 119-21) and any applicable federal or state law or regulation. of the following requirements:
(A)Provides an education aligned with the requirements of a high-skill, high-wage occupation as identified by the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006 (Public Law 109-270) or aligned with the requirements of an in-demand industry or occupation.
(B)The hiring requirements of employers in the sectors or occupations identified pursuant to subparagraph (A).
(C)Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards students with the credential upon completion of the short-term program.
(D)Prepares students to pursue one or more certificates or degrees at the postsecondary educational institution by ensuring that upon completion of the short-term program and enrollment in a related certificate or degree program, a student will receive academic credit that the institution will accept toward that certificate or degree and that the academic credit will be accepted toward meeting the certificate or degree program requirements.
(2)Certification under penalty of perjury with any applicable verification required by the authorized state entity Governor that is sufficient to demonstrate that for each federal aid award year, the short-term program meets both all of the following:
(A)A completion rate of at least 70 percent, within 150 percent of the normal time for completion of the program, verified by an independent auditor.
(B)A job placement rate of at least 70 percent, measured within 180 days after completion of the program, verified in a manner determined by the authorized state entity. Governor.
(C)For the 12 months preceding the date that the postsecondary educational institution applied for approval, the institution offered the short-term program and the short-term program met the requirements of subparagraphs (A) to (D), inclusive, of paragraph (1).
(3)Data requested by the authorized state entity Governor related to the short-term program, which shall include, but not be limited to, all of the following:
(A)Program-level data, including all of the following:
(i)The name of the short-term program.
(ii)The Classification of Instructional Programs code and title.
(iii)(I)For a participating postsecondary educational institution with a physical presence in the state, the total number of students that enrolled in the short-term program during the previously completed federal financial aid award year, the students state of residence, and the number of those students that completed the short-term program.
(II)For a participating postsecondary educational institution without a physical presence in the state, the total number of students living in the state that enrolled in the short-term program during the previously completed federal financial aid award year and the number of those students that completed the short-term program.
(iv)The total cost of attendance, including tuition and fees, and the average cost of the short-term program.
(v)Any information requested by the authorized state entity Governor that will enable the entity Governor to calculate the median earnings and percentage of graduates who are employed.
(vi)The number of students who completed the short-term program that are employed in a position related to the short-term program and a list of the positions and employers that are considered to be in the programs field of study, if available.
(B)Student-level data, including all as determined by the Governor, including, but not limited to, both of the following:
(i)Demographic information, including student identifiers, names, dates of birth, and race or ethnicity.
(ii)Financial aid information, including dependency status, family income, aid amounts, including federal, state, and institutional aid, Pell Grant status, net cost, tuition, and fees.
(c)The authorized state entity Governor shall not authorize a participating postsecondary educational institution to receive Workforce Pell Grant program funds for a short-term program unless all of the following have been met:
(1)The authorized state entity Governor determines that the short-term program meets the requirements set forth in Section 83002(b) of the One Big Beautiful Bill Act, or in any applicable federal or state law or regulation.
(2)The authorized state entity Governor has consulted with the Labor and Workforce Development Agency and the advisory board.
(3)The participating postsecondary educational institution has met the requirements of subdivision (b).
(4)The participating postsecondary educational institution does not do any of the following:
(A)Partner, affiliate, contract, or use any institution, company, or service provider to offer instruction for the short-term program that is not accredited by an accrediting agency recognized and approved by the United States Department of Education.
(B)Offer or affiliate with any company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.
(C)Charge tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant funds available for a student in the short-term program, as determined by the Secretary of the United States Department of Education, for the period of time that the program is offered.
(5)The participating postsecondary educational institution is accredited by an accrediting agency recognized and approved by the United States Department of Education and that reviews and provides approval for short-term programs.
(6)The short-term program is offered using only credit-bearing courses that are reviewed by the participating postsecondary educational institutions accrediting agency.
(7)The short-term program has been offered by the participating institution for at least one year before the date that the participating institution submitted its application for approval pursuant to this article.(d)The authorized state entity Governor shall revoke the approval of a participating postsecondary educational institution related to the Workforce Pell Grant program if either of the following occurs:
(1)The participating postsecondary educational institution fails to annually meet the requirements of subdivision (b).
(2)The participating postsecondary educational institution is determined by a court to have engaged in unlawful, unfair, or fraudulent business acts or practices, including unfair, deceptive, untrue, or misleading statements related to the short-term program.
(e)The authorized state entity Governor may enter into a data-sharing agreement with the Labor and Workforce Development Agency to match program and student data in order to obtain any of the following:
(1)Standard Occupational Classification codes and titles.
(2)North American Industry Classification System codes and titles.
(3)Preenrollment and postenrollment employment status and employer.
(4)Preenrollment and postenrollment earnings data.
69873.(a)The California Workforce Pell Grant Advisory Board is hereby established for purposes of reviewing short-term programs that may be eligible for Workforce Pell Grant funds and recommending to participating postsecondary educational institutions, or the authorized state entity, Governor, necessary processes and policies, including, but not limited to, data collecting and reporting, program approval and denials, managing student transitions when programs are deemed ineligible for funding, and designating an entity to manage student complaints.
(b)The advisory board shall consist of all of the following:
(1)A representative from the Labor and Workforce Development Agency.
(2)A representative from the California Workforce Development Board.
(3)A representative from the Employment Training Panel.
(4)A representative from the Employment Development Department.
(5)A representative from the Division of Apprenticeship Standards.
(6)The President of the University of California.
(7)The Chancellor of the California State University.
(8)The Chancellor of the California Community Colleges.
(9)A representative from the Student Aid Commission.
(10)A representative from the Bureau for Private Postsecondary Education.
(11)A representative from the Association of Independent California Colleges and Universities.
(12)A representative from the State Department of Education.
(13)A representative from the California Health and Human Services Agency.
(14)A representative from the Governors Office of Business and Economic Development.
(15)A representative from the Office of Cradle-to-Career Data.
(16)Industry leaders.
(17)Nonprofit leaders.
(18)Other representatives designated by the Governor.
69874.(a)A participating postsecondary educational institution shall ensure that any confidential student information collected for purposes of this article is only disclosed to the authorized state entity. Governor or relevant state entities.
(b)A participating postsecondary educational institution shall separately identify any confidential information submitted to the authorized state entity Governor or relevant state entities pursuant to this article. Any information that is not identified as confidential information shall be considered public information and subject to disclosure.
69875.The authorizing state entity Labor and Workforce Development Agency may adopt rules and regulations for the implementation of this article as it deems necessary.
69876.This article shall take effect on July 1, 2026.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SEC. 3.SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Section 69874 to the Education Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
To ensure access and use of federal Workforce Pell Grant program funds, which serve the states economic interests, the privacy of student data submitted to institutions on a confidential basis must be maintained.
For purposes of this article, the following definitions apply:
(a)Advisory board means the California Workforce Pell Grant Advisory Board established pursuant to Section 69873.
(b)Authorized state entity means ____.
(c)Participating institution means a federal Workforce Pell Grant-eligible postsecondary educational institution that offers a short-term program in the state or enrolls students living in the state in a short-term program.
(d)Postsecondary educational institution means a campus of the University of California, the California State University, or the California Community Colleges, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance.
(e)Short-term program means an educational program offered by a participating institution that includes 150 to 599, inclusive, hours of instruction, or an equivalent number of credit hours, over 8 to 14 weeks, inclusive.
(f)Workforce Pell Grant program means the federal program established pursuant to the One Big Beautiful Bill Act (Public Law 119-21), under which federal Workforce Pell Grants may be awarded to students enrolled in a short-term program at a participating institution.
69871.A participating institution shall not disburse Workforce Pell Grant program funds to students enrolled in the institutions short-term programs, and shall not advertise, market, or inform students about the availability of those funds unless the institution has met both of the following:
(a)Obtained authorization from the authorized state entity pursuant to this article.
(b)Obtained approvals and met all requirements set forth by the United States Department of Education.
69872.(a)The authorized state entity shall determine whether a participating institutions short-term program meets the requirements established pursuant to this article.
(b)A participating institution seeking a determination that one or more of its short-term programs meets the requirements of the Workforce Pell Grant program shall provide all of the following to the authorized state entity:
(1)Documentation that the short-term program meets all requirements set forth in Section 83002(b) of the One Big Beautiful Bill Act (Public Law 119-21) and any applicable federal or state law or regulation.
(2)Certification under penalty of perjury with any applicable verification required by the authorized state entity that is sufficient to demonstrate that for each federal aid award year, the short-term program meets both of the following:
(A)A completion rate of at least 70 percent, within 150 percent of the normal time for completion of the program, verified by an independent auditor.
(B)A job placement rate of at least 70 percent, measured within 180 days after completion of the program, verified in a manner determined by the authorized state entity.
(3)Data requested by the authorized state entity related to the short-term program, which shall include, but not be limited to, all of the following:
(A)Program-level data, including all of the following:
(i)The name of the short-term program.
(ii)The Classification of Instructional Programs code and title.
(iii)(I)For a participating institution with a physical presence in the state, the total number of students that enrolled in the short-term program during the previously completed federal financial aid award year, the students state of residence, and the number of those students that completed the short-term program.
(II)For a participating institution without a physical presence in the state, the total number of students living in the state that enrolled in the short-term program during the previously completed federal financial aid award year and the number of those students that completed the short-term program.
(iv)The total cost of attendance, including tuition and fees, and the average cost of the short-term program.
(v)Any information requested by the authorized state entity that will enable the entity to calculate the median earnings and percentage of graduates who are employed.
(vi)The number of students who completed the short-term program that are employed in a position related to the short-term program and a list of the positions and employers that are considered to be in the programs field of study, if available.
(B)Student-level data, including all of the following:
(i)Demographic information, including student identifiers, names, dates of birth, and race or ethnicity.
(ii)Financial aid information, including dependency status, family income, aid amounts, including federal, state, and institutional aid, Pell Grant status, net cost, tuition, and fees.
(c)The authorized state entity shall not authorize a participating institution to receive Workforce Pell Grant program funds for a short-term program unless all of the following have been met:
(1)The authorized state entity determines that the short-term program meets the requirements set forth in Section 83002(b) of the One Big Beautiful Bill Act, or in any applicable federal or state law or regulation.
(2)The authorized state entity has consulted with the advisory board.
(3)The participating institution has met the requirements of subdivision (b).
(4)The participating institution does not do any of the following:
(A)Partner, affiliate, contract, or use any institution, company, or service provider to offer instruction for the short-term program that is not accredited by an accrediting agency recognized and approved by the United States Department of Education.
(B)Offer or affiliate with any company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.
(C)Charge tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant funds available for a student in the short-term program, as determined by the Secretary of the United States Department of Education, for the period of time that the program is offered.
(5)The participating institution is accredited by an accrediting agency recognized and approved by the United States Department of Education and that reviews and provides approval for short-term programs.
(6)The short-term program is offered using only credit-bearing courses that are reviewed by the participating institutions accrediting agency.
(7)The short-term program has been offered by the participating institution for at least one year before the date that the participating institution submitted its application for approval pursuant to this article.
(d)The authorized state entity shall revoke the approval of a participating institution related to the Workforce Pell Grant program if either of the following occurs:
(1)The participating institution fails to annually meet the requirements of subdivision (b).
(2)The participating institution is determined by a court to have engaged in unlawful, unfair, or fraudulent business acts or practices, including unfair, deceptive, untrue, or misleading statements related to the short-term program.
(e)The authorized state entity may enter into a data-sharing agreement with the Labor and Workforce Development Agency to match program and student data in order to obtain any of the following:
(1)Standard Occupational Classification codes and titles.
(2)North American Industry Classification System codes and titles.
(3)Preenrollment and postenrollment employment status and employer.
(4)Preenrollment and postenrollment earnings data.
69873.(a)The California Workforce Pell Grant Advisory Board is hereby established for purposes of reviewing short-term programs that may be eligible for Workforce Pell Grant funds and recommending to participating institutions, or the authorized state entity, necessary processes and policies, including, but not limited to, data collecting and reporting, program approval and denials, managing student transitions when programs are deemed ineligible for funding, and designating an entity to manage student complaints.
(b)The advisory board shall consist of all of the following:
(1)A representative from the Labor and Workforce Development Agency.
(2)A representative from the California Workforce Development Board.
(3)A representative from the Employment Training Panel.
(4)A representative from the Employment Development Department.
(5)A representative from the Division of Apprenticeship Standards.
(6)The President of the University of California.
(7)The Chancellor of the California State University.
(8)The Chancellor of the California Community Colleges.
(9)A representative from the Student Aid Commission.
(10)A representative from the Bureau for Private Postsecondary Education.
(11)A representative from the Association of Independent California Colleges and Universities.
(12)A representative from the State Department of Education.
(13)A representative from the California Health and Human Services Agency.
(14)A representative from the Governors Office of Business and Economic Development.
(15)A representative from the Office of Cradle-to-Career Data.
(16)Industry leaders.
(17)Nonprofit leaders.
(18)Other representatives designated by the Governor.
69874.(a)A participating institution shall ensure that any confidential student information collected for purposes of this article is only disclosed to the authorized state entity.
(b)A participating institution shall separately identify any confidential information submitted to the authorized state entity pursuant to this article. Any information that is not identified as confidential information shall be considered public information and subject to disclosure.
69875.The authorizing state entity may adopt rules and regulations for the implementation of this article as it deems necessary.
69876.This article shall take effect on July 1, 2026.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3.The Legislature finds and declares that Section 1 of this act, which adds Section 69874 to the Education Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
To ensure access and use of federal Workforce Pell Grant program funds, which serve the states economic interests, the privacy of student data submitted to institutions on a confidential basis must be maintained.
|
Date
|
Status
|
|---|---|
| Sep 27, 2026 | Chaptered by Secretary of State - Chapter 519, Statutes of 2026. |
| Sep 27, 2026 | Approved by the Governor. |
| Sep 8, 2026 | Enrolled and presented to the Governor at 3:30 p.m. |
| Aug 28, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0.). |
| Aug 28, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 6787.). |
| Aug 27, 2026 | In Assembly. Concurrence in Senate amendments pending. |
| Aug 27, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.). |
| Aug 24, 2026 | Read second time. Ordered to third reading. |
| Aug 21, 2026 | Read third time and amended. Ordered to second reading. |
| Aug 20, 2026 | Read second time. Ordered to third reading. |
| Aug 19, 2026 | Read third time and amended. Ordered to second reading. |
| Aug 13, 2026 | Read second time. Ordered to third reading. |
| Aug 13, 2026 | From committee: Do pass. (Ayes 7. Noes 0.) (August 13). |
| Aug 3, 2026 | In committee: Referred to APPR. suspense file. |
| Jul 1, 2026 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (July 1). Re-referred to Com. on APPR. |
| Jun 25, 2026 | From committee: Do pass and re-refer to Com. on L., P.E. & R. (Ayes 7. Noes 0.) (June 24). Re-referred to Com. on L., P.E. & R. |
| Jun 15, 2026 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on ED. |
| Jun 3, 2026 | Referred to Coms. on ED. and L., P.E. & R. |
| May 21, 2026 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 21, 2026 | Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 61. Noes 10.). |
| May 21, 2026 | Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 61. Noes 10. Page 5185.). |
| May 18, 2026 | Read second time. Ordered to third reading. |
| May 14, 2026 | From committee: Do pass. (Ayes 12. Noes 1.) (May 14). |
| May 6, 2026 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 23, 2026 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 22). Re-referred to Com. on APPR. |
| Apr 23, 2026 | Coauthors revised. |
| Mar 23, 2026 | Re-referred to Com. on L. & E. |
| Mar 19, 2026 | Read second time and amended. |
| Mar 18, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on L. & E. (Ayes 8. Noes 2.) (March 17). |
| Mar 9, 2026 | Re-referred to Com. on HIGHER ED. |
| Mar 5, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on HIGHER ED. Read second time and amended. |
| Feb 9, 2026 | Referred to Coms. on HIGHER ED. and L. & E. |
| Jan 6, 2026 | From printer. May be heard in committee February 5. |
| Jan 5, 2026 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 28, 2026 | AB 1534 Irwin Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 27, 2026 | Assembly 3rd Reading AB1534 Irwin et al. By Pérez | Senate Floor |
Passed |
|
| Aug 13, 2026 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 3, 2026 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 1, 2026 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Labor, Public Employment and Retirement |
Passed |
|
| Jun 24, 2026 | Do pass, but first be re-referred to the Committee on [Labor, Public Employment and Retirement ] | Senate Standing Committee on Education |
Passed |
|
| May 21, 2026 | AB 1534 Irwin Third Reading Urgency | Assembly Floor |
Passed |
|
| May 14, 2026 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 22, 2026 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Labor and Employment |
Passed |
|
| Mar 17, 2026 | Do pass as amended and be re-referred to the Committee on [Labor and Employment] | Assembly Standing Committee on Higher Education |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| 2u, INC. | ** Against | |
| AllCampus | ** Against | |
| Allcampus Pb LLC | ** Against | |
| BLU Educational Foundation | ** Support | |
| CA Edge Coalition | ** Support | |
| California Competes: Higher Education for a Strong Economy | ** Support | |
| California EDGE Coalition | ** Support | |
| california opportunity youth network | ** Support | |
| Campaign For College Opportunity | ** Support | |
| Century Foundation | ** Support | |
| Children Now | ** Support | |
| Coast Community College District | ** Against | |
| County Of Kern | ** Support | |
| EdTrust-West | ** Support | |
| JobTrain | ** Support | |
| John Burton Advocates for Youth | ** Support | |
| Prismatic Research & Strategy | ** Support | |
| Protect Borrowers | ** Support | |
| Public Advocates | ** Support | |
| Rancho Santiago Community College District | ** Support | |
| San Bernardino Community College District | ** Support | |
| San Jose-Evergreen Community College District | ** Support | |
| Southern California College Attainment Network | ** Support | |
| The Century Foundation | ** Support | |
| The Institute for College Access & Success | ** Support | |
| The Institute for College Access & Success (sponsor) | ** Support | |
| Tipping Point Community | ** Support | |
| Tri County Chamber Alliance | ** Support | |
| uAspire | ** Support | |
| Unite-LA | ** Support | |
| Young Invincibles | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1534
Author:(Irwin)
As Amended Ver:August 21, 2026
Majority vote
SUMMARY
Establishes state consumer protection standards for public and private postsecondary institutions seeking to participate in the federal Workforce Pell Grant program for short-term workforce training programs; and modifies Workforce Innovation and Opportunity Act (WIOA) requirements by requiring local workforce development boards to ensure that at least 50% of participants receive workforce training services commencing in 2028.
Senate Amendments
- Remove the urgency clause.
- Modify the prohibition of public and private higher education institutions from disbursing Workforce Pell Grant program funds to students enrolled in the institution's short-term programs, and from advertising, marketing, or informing students about the availability of those funds, unless the institution has met both of the following:
- Obtained authorization from California Student Aid Commission (CSAC), on behalf of the Governor, as prescribed; and,
- Obtain approvals and meet all federal requirements.
- Prohibit CSAC from authorizing public and private higher education institutions to receive Workforce Pell Grant program funds for a short program, as specified.
- Authorize CSAC to use the California Priority Programs List to determine whether a short-term program satisfies the following requirement:
- Provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations;
- Meets the hiring requirements of employers in high-skill, high-wage, or in-demand industry sectors or occupations; and,
- Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards the credential upon completion.
- Authorize the Labor and Workforce Development Agency (LWDA) to enter into a data-sharing agreement with the Office of Cradle to Career Data (C2C) to the extent it is necessary to establish and maintain the California Priority Jobs Credential List.
- Modify various provisions to the federal WIOA Adult and Dislocated Worker program, effective July 1, 2028, as specified.
- Ensure eligible institutions and unaccredited entities must both adhere to disclosure requirements and that the eligible institution is the responsible party for ensuring the unaccredited entity is adhering to the law.
- Clarify that decision making authority over various factors, as specified, remains with the eligible institutions.
- Provide guardrails for programs when eligible entities provide instruction.
- Specify the retention of existing WIOA expenditure reporting, requires separate WIOA participant reporting requirements, and clarifies the Employee Development Department (EDD) reporting process in the event a local area does not report leverage funds.
- Update the title of the California Priority Jobs Credentials List to the California Priority Programs List.
- Add additional Legislative findings and declarations.
- Make clarifying, conforming, and technical changes.
COMMENTS
Workforce Pell. The Congress enacted H.R. 1, in the Summer of 2025. Among the many provisions contained in the measure is a section that expands Pell Grant eligibility to students enrolled in short-term, career-focused training programs that meet defined quality requirements and lead to industry-recognized credentials. The workforce training programs tend to be between 8 and 14 weeks in length and are intended to provide rapid pathways to employment in high-demand industries. This expansion is commonly referred to as "Short-Term Pell" or "Workforce Pell."
According to the National Governors Association and America Achieves, in their Workforce Pell: An Overview for Governors March 2026 policy memo, "the Congressional Budget Office estimates that over the next ten years, the federal government will invest approximately $1.5 billion in Workforce Pell Grants of about $2,200 per recipient, although awards will vary as they are prorated based on program length and student need. However, research on such short-term programs demonstrates that while some programs deliver strong labor market returns, many do not. This new funding stream represents an opportunity for Governors to drive resources to the strongest programs to address critical workforce development needs and better align postsecondary training to high-skill, high-wage, and in-demand jobs through their implementation decisions."
The Workforce Pell goes into effect on July 1, 2026, the United States Department of Education (USDE) proposed regulations in March 2026, and is expected to finalize regulations later this Spring. Presently, the draft regulations leave Governors with considerable leeway in the details of implementation.
This measure seeks to establish a state-level approval process for institutions seeking to offer programs eligible for these funds.
Consumer protection provisions. This measure contains several provisions intended to protect students, including restrictions on tuition levels, limitations on private financing arrangements, and requirements that programs be offered through accredited institutions using credit-bearing coursework. Specifically, this measure prohibits institutions from charging tuition and fees that exceed the maximum available Workforce Pell award, unless the excess amount is paid by an employer, labor-management partnership, or another third-party that does not require repayment by the student. It also prohibits participation by institutions that offer or affiliate with providers of private education loans, income share agreements, or similar credit products.
Additionally, the measure requires CSAC to deny authorization to institutions that do not satisfy specified requirements. The proponents of this measure argue that restricting tuition levels limits reliance on private educational loans and income share agreements, and that imposing requirements for third-party partnerships and alignment with workforce needs helps ensure students are participating in quality programs that will lead to meaningful employment opportunities related to their field of study/training.
Third-Party providers and tuition-sharing arrangements. Provisions in this measure prohibit higher education institutions from receiving authorization to participate in the Workforce Pell if the institutions compensate a third-party provider through tuition sharing or incentive compensation arrangements. This measure does not prohibit institutions from partnering with online program managers (OPM) or other third-party providers. Rather, it restricts certain compensation arrangements and limits the role third-party entities may play in academic and institutional decision-making. Institutions may continue to contract with third-party providers if the partnership satisfies the specified conditions contained in the measure. Further, the measure preserves the institution's responsibility for academic decision-making by prohibiting third-party entities from exercising authority over curriculum development, admissions standards, enrollment targets, or the creation of new short-term programs.
According to the Author
According to the author, "Californians looking to gain new skills or advance in their careers by enrolling in short-term workforce training programs may be eligible for new financial assistance. Starting in July [2026], the federal government is set to begin rolling out Workforce Pell Grants for eligible Californians seeking to enroll in short-term programs lasting eight to 15 weeks. These programs will lead to industry-recognized credentials in sectors like healthcare, IT and skilled trades, and will train participants for high-wage and in-demands jobs."
The author contends that, "while Pell Grant assistance has historically been limited to students seeking an undergraduate degree, these new grants will be available for entry-level to mid-career adults wishing to upskill and move up in their careers. Legislation is necessary for the state to create an approval process to ensure only the highest quality programs are offered to prospective students. This ensures students use their limited Pell Grant eligibility on programs that deliver real opportunities for them and their families, and prevent them from wasting resources on unproductive or fraudulent programs."
Lastly, the author states that, "this type of investment in our workforce will strengthen California's economy by ensuring workers have the skills to meet the demands of employers, and businesses can continue to evolve in a 21st century market."
Arguments in Support
According to the Century Foundation (TCF), "AB 1524 establishes a framework for California to implement the expansion of federal Pell Grant eligibility to short-term workforce training programs. The expansion of Pell Grants to short-term workforce programs has the potential to create meaningful new opportunities for students to pursue job training, but it also poses significant risks."
Further, TCF states that, "short-term workforce programs include programs offered by for-profit providers, and have a mixed track record when it comes to student outcomes. While some programs lead to positive outcomes, others fail to provide upward economic mobility and even worse, may leave students with debt. In addition, Workforce Pell programs count toward students' limited Pell Grant eligibility, and students are at risk of using this eligibility for low-quality, expensive, or even fraudulent programs. As a result, it is critical that California establish strong safeguards that protect both students and public investment in the program. AB 1534 does just that."
Lastly, according to TCF, "the bill includes important student protections, including a provision that will help ensure that program instruction is provided by accredited institutions, rather than outsourced to unaccredited providers. The bill also prohibits participating programs from charging tuition and fees above the maximum amount of Workforce Pell Grant funds available and prohibits institutions from entering into arrangements with private lenders to offer loans to students. These provisions will help to protect students from taking on debt while also helping to ensure that these programs remain affordable. California remains a national leader in expanding college access while maintaining strong consumer protections for students. AB 1534 lays the groundwork for an approach to Workforce Pell that would prioritize quality, affordability, and protecting students from taking on risky debts."
Arguments in Opposition
None based on the most recent version of this measure.
FISCAL COMMENTS
According to the Senate Committee on Appropriations:
- The Chancellor's Office for the California Community Colleges estimates one-time Proposition 98 General Fund costs in the low tens of thousands of dollars for each participating district to develop an implementation plan necessary to participate in the federal Workforce Pell Grant Program. Participation in the program is voluntary, therefore the exact cost would depend on the number of community college districts that elect to pursue Workforce Pell eligibility. The Chancellor's Office also estimates one-time General Fund workload costs of $12,000 to $24,000 to develop and distribute a guidance memo and provide technical assistance to the field.
- The California Student Aid Commission (CSAC), Office of Cradle to Career Data (C2C) and the EDD each indicate that the costs to implement this bill would be minor and absorbable. The 2026 Budget Act includes $1.3 million in General Fund for the C2C for workload related to the federal Workforce Pell Grant Program.
- This bill could result in additional costs for local workforce development areas to submit corrective actions plans to the EDD for not meeting the bill's participant training requirements. The extent of these costs is unknown and could be deemed to be reimbursable by the Commission on State Mandates.
VOTES:
ASM HIGHER EDUCATION: 8-2-0
YES: Fong, Boerner, Jeff Gonzalez, Jackson, Kalra, Muratsuchi, Patel, Sharp-Collins
NO: DeMaio, Tangipa
ASM LABOR AND EMPLOYMENT: 7-0-0
YES: Ortega, Alanis, Chen, Elhawary, Kalra, Lee, Ward
ASM APPROPRIATIONS: 12-1-2
YES: Wicks, Hoover, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache
NO: Dixon
ABS, ABST OR NV: Ta, Tangipa
ASSEMBLY FLOOR: 61-10-9
YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Davies, Elhawary, Fong, Gabriel, Gipson, Jeff Gonzalez, Mark González, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NO: DeMaio, Dixon, Ellis, Gallagher, Hadwick, Johnson, Macedo, Patterson, Sanchez, Tangipa
ABS, ABST OR NV: Arambula, Castillo, Chen, Flora, Garcia, Lackey, Ramos, Celeste Rodriguez, Ta
UPDATED
VERSION: August 21, 2026
CONSULTANT: Jeanice Warden / HIGHER ED. / (916) 319-3960 FN: 0004382
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 1534 |
THIRD READING
Bill No: AB 1534
Author: Irwin (D), et al.
Amended: 8/21/26 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE: 7-0, 6/24/26
AYES: Pérez, Ochoa Bogh, Cabaldon, Choi, Cortese, Gonzalez, Reyes
SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 7/1/26
AYES: Smallwood-Cuevas, Strickland, Cortese, Durazo, Laird
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/13/26
AYES: Cervantes, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab
ASSEMBLY FLOOR: 61-10, 5/21/26 - See last page for vote
SUBJECT: Federal Workforce Pell Grant program: local workforce development boards: participant training requirement
SOURCE: The Institute for College Access & Success
DIGEST:
This bill 1) establishes state consumer protection standards for public and private postsecondary institutions seeking to participate in the federal Workforce Pell Grant program for short-term workforce training programs; and 2) modifies Workforce Innovation and Opportunity Act (WIOA) requirements by requiring local workforce development boards to ensure that at least 50% of participants receive workforce training services beginning in 2028.
Senate floor amendments of 8/21/26 update the title of the California Priority Jobs Credentials List to the California Priority Programs List.
ANALYSIS:
Existing federal law:
- Establishes the federal Pell Grant to provide aid to students who demonstrate financial need. The Pell Grant award can be used for tuition and fees, books, and supplies, transportation, and living expenses for the equivalent of up to six years of full-time enrollment. The maximum Pell Grant for the 2025-26 academic year (which covers the period from July 1, 2025 – June 30, 2026) is $7,395. The minimum Pell Grant award for the same time frame is $740. (United States Code (USC) Title 20 § 1070)
- Establishes the federal Workforce Pell Grant program (via H.R. 1, Public Law 119-21), beginning July 1, 2026, to provide federal Pell Grant funding for eligible students enrolled in short-term workforce training programs aligned with high-skill, high-wage, or in-demand industries.
Existing state law:
- Establishes the Donahoe Higher Education Act, setting forth the mission of the University of California (UC), the California State University (CSU), and the California Community Colleges (CCC); and, defines “independent institutions of higher education” as nonpublic higher education institutions that grant undergraduate degrees, graduate degrees, or both, and that are formed as nonprofit corporations in California and are accredited by an agency recognized by the United States Department of Education (USDE). Specifies that for purposes of any code or statute, a national or regional accrediting agency recognized by the USDE as of January 1, 2025, shall retain that recognition until July 1, 2029, provided that the accrediting agency continues to operate in substantially the same manner as it did on January 1, 2025. (Education Code (EC) § 66010, et seq.)
- Establishes California Student Aid Commission (CSAC) as the state agency charged with administering state financial aid programs to qualifying students enrolled in qualifying institutions of higher education throughout the State. Existing law requires CSAC to prescribe the use of standardized student financial aid applications for California. (EC § 69433 and § 69510, et seq.)
- Establishes the Labor and Workforce Development Agency to coordinate workforce development programs and support workforce policy in California. (Government Code § 15550, et seq.)
4) Provides for implementation of the federal Workforce Pell program, including alignment of the Cal Grant C program and other conforming changes. (EC § 69870)
This bill:
- Prohibits a public and private higher education institutions from disbursing Workforce Pell Grant program funds to students enrolled in the institution’s short-term programs, and from advertising, marketing, or informing students about the availability of those funds, unless the institution has met both of the following:
- Obtained authorization from CSAC, on behalf of the Governor, as prescribed.
- Obtain approvals and meet all federal requirements.
- Prohibits CSAC from authorizing public and private higher education institutions to receive Workforce Pell Grant program funds for a short program if it does any of the following:
- Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the USDE, and that provides the instructors for the instruction of the short-term program, unless one of the following applies:
- The institution partners, contracts, or affiliates with the entity for the purpose of offering instruction for a registered apprenticeship program.
- The short-term program has a contract education agreement with a participating community college that meets the specified requirements.
- The institution meets all of the following requirements:
- Discloses and ensures that the entity is a company that is separate from the institution and a description of all of the services that the entity is contracted to provide for the institution in the manner specified.
- Ensures the entity is not paid using incentive compensation or tuition sharing with the institution.
- Ensures the entity does not exercise authority of any kind over the institution’s governance or decision-making processes, including participation in any deliberative or decision-making committee, task force, or other body, related to the design or development of core curriculum or instruction, admission standards, determining enrollment targets, or creation of new short-term programs. The entity may provide consultation or technical assistance in an advisory capacity only, and the institution shall retain sole and independent authority for all final decisions.
- Offers or affiliates with a company that offers financing for the short-term program using a private educational loan, including the specified types of financing.
- Charges tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant program funds available for a student in the short-term program. The prohibition does not apply if the portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount is paid on behalf of the student by the specified third parties.
- Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the USDE, and that provides the instructors for the instruction of the short-term program, unless one of the following applies:
- Authorizes CSAC to use the California Priority Programs List to determine whether a short-term program satisfies the following requirement:
- Provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations.
- Meets the hiring requirements of employers in high-skill, high-wage, or in-demand industry sectors or occupations.
- Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards the credential upon completion.
- Authorizes the Labor and Workforce Development Agency to enter into a data-sharing agreement with the Office of Cradle to Career Data to the extent it is necessary to establish and maintain the California Priority Jobs Credential List.
- Modifies the following provisions to the WIOA Adult and Dislocated Worker program, effective July 1, 2028:
- Requires local workforce development boards, instead of spending a minimum of 30% of specified funds for adults and dislocated workers, to ensure that at least 50% of participants enrolled in the adult and dislocated worker program receive workforce training services.
- Prescribes the training services that count toward the participant training requirements, as specified.
- Requires local workforce development boards, instead of spending a minimum of 30% of specified funds for adults and dislocated workers, to ensure that at least 50% of participants enrolled in the adult and dislocated worker program receive workforce training services.
- Retains the existing WIOA expenditure reporting, requires separate WIOA participant reporting requirements, and clarifies the Employee Development Department (EDD) reporting process in the event a local area does not report leverage funds.
- Makes other conforming and technical changes.
- States various findings and declarations related to the federal Workforce Pell Grant program and workforce training opportunities.
- States that it is the Legislature’s intent to expand access to high-quality workforce training opportunities by defining standards for short-term programs to be eligible for the federal Workforce Pell Grant program and requiring an increase in participants that receive workforce training services under the federal WIOA program.
Comments
Need for the bill. According to the author, “Californians looking to gain new skills or advance in their careers by enrolling in short-term workforce training programs may be eligible for new financial assistance. The federal government is set to begin rolling out Workforce Pell Grants for eligible Californians seeking to enroll in short-term programs lasting eight to 15 weeks. These programs will lead to industry-recognized credentials in sectors like healthcare, IT and skilled trades, and will train participants for high-wage and in-demand jobs.
“As states prepare to implement this historic expansion of aid, proper safeguards are necessary to ensure these programs deliver real opportunities for students and their families and prevent them from wasting their lifetime-limited Pell Grant eligibility. AB 1534 includes important consumer protection measures that protect students from risky private loans and require programs to charge reasonable costs and fully disclose partnerships with unaccredited organizations.”
Federal Workforce Pell program. Congress enacted H.R. 1, in the Summer of 2025. Among the many provisions contained in the measure is a section that expands Pell Grant eligibility to students enrolled in short-term, career-focused training programs that meet defined quality requirements and lead to industry-recognized credentials. The workforce training programs tend to be between 8 and 14 weeks in length and are intended to provide rapid pathways to employment in high-demand industries. This expansion is commonly referred to as “Short-Term Pell” or “Workforce Pell.”
According to the National Governors Association and America Achieves, in their Workforce Pell: An Overview for Governors March 2026 policy memo, “the Congressional Budget Office estimates that over the next ten years, the federal government will invest approximately $1.5 billion in Workforce Pell Grants of about $2,200 per recipient, although awards will vary as they are prorated based on program length and student need. However, research on such short-term programs demonstrates that while some programs deliver strong labor market returns, many do not. This new funding stream represents an opportunity for Governors to drive resources to the strongest programs to address critical workforce development needs and better align postsecondary training to high-skill, high-wage, and in-demand jobs through their implementation decisions.”
The Workforce Pell goes into effect on July 1, 2026, the USDE proposed regulations in March 2026, and is expected to finalize regulations later this Spring. Presently, the draft regulations leave Governors with considerable leeway in the details of implementation.
Workforce Pell and existing state financial aid programs. As mentioned, Workforce Pell is designed to support short-term workforce training programs that may be completed in as little as eight weeks and can be up to 15 weeks in duration. California’s primary state financial aid programs under Cal Grant generally support students enrolled in degree and longer-term certificate programs. Specifically, Cal Grant C supports occupational and technical training programs that are at least four months in length. To that end, Workforce Pell is filling a gap in student aid not covered under the Cal Grant program. This bill establishes additional state participation standards for Workforce Pell but does not modify eligibility for existing state financial aid programs.
Consumer protection measures. This bill aims to create state-level consumer protection standards intended to protect Workforce Pell recipients enrolling in short-term programs. The proposed requirements are applicable to public and private higher education institutions physically located in this state seeking to participate in the Workforce Pell program. Among other provisions, this bill restricts tuition and fee levels, limits the use of certain private financial arrangements, establishes conditions governing third-party partnerships, and requires participating programs to demonstrate alignment with workforce needs. Specifically, this measure prohibits institutions from charging tuition and fees that exceed the maximum available Workforce Pell award, unless the excess amount is paid by an employer, labor-management partnership, or another third-party that does not require repayment by the student. It also prohibits participation by institutions that offer or affiliate with providers of private education loans, income share agreements, or similar credit products. This bill also requires CSAC to deny authorization to institutions that do not satisfy specified requirements. The proponents of this measure argue that restricting tuition levels limits reliance on private educational loans and income share agreements, and that imposing requirements for third-party partnerships and alignment with workforce needs helps ensure students are participating in quality programs that will lead to meaningful employment opportunities related to their field of study/training.
Third-Party providers and tuition-sharing arrangements. This bill further prohibits higher education institutions from receiving authorization to participate in the Workforce Pell if it compensates a third-party provider through tuition sharing or incentive compensation arrangements. The sponsors of this bill argue that these compensation models may create incentives to prioritize enrollment growth over student outcomes and can blur the lines between higher education institutions and for-profit education providers. Proponents point to recent disputes involving online program manager (OPM) partnerships with public and private institutions, including the University of Southern California and 2U, and Caltech and Simplilearn, and a 2023 State Auditor review of UC’s use of OPMs as issues that may arise from these types of partnerships. A UC audit identified 52 UC contracts with OPMs in effect at that time, none of which involved undergraduate programs. Of those contracts, 30 were with five UC campuses, of which 15 pertained to continuing education provided through campus extension units. This bill does not prohibit institutions from partnering with OPMs or other third-party providers. Rather, it restricts certain compensation arrangements and limits the role third-party entities may play in academic and institutional decision-making. Institutions may continue to contract with third-party providers if the partnership satisfies the bill’s specified conditions. This bill also preserves the institution’s responsibility for academic decision-making by prohibiting third-party entities from exercising authority over curriculum development, admissions standards, enrollment targets, or the creation of new short-term programs.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee analysis, this bill would have the following fiscal impact:
- The Chancellor’s Office for the California Community Colleges estimates one-time Proposition 98 General Fund costs in the low tens of thousands of dollars for each participating district to develop an implementation plan necessary to participate in the federal Workforce Pell Grant Program. Participation in the program is voluntary, therefore the exact cost would depend on the number of community college districts that elect to pursue Workforce Pell eligibility. The Chancellor’s Office also estimates one-time General Fund workload costs of $12,000 to $24,000 to develop and distribute a guidance memo and provide technical assistance to the field.
- The California Student Aid Commission (CSAC), Office of Cradle to Career Data (C2C) and the Employee Development Department (EDD) each indicate that the costs to implement this bill would be minor and absorbable. The 2026 Budget Act includes $1.3 million in General Fund for the C2C for workload related to the federal Workforce Pell Grant Program.
- This bill could result in additional costs for local workforce development areas to submit corrective actions plans to the EDD for not meeting the bill’s participant training requirements. The extent of these costs is unknown and could be deemed to be reimbursable by the Commission on State Mandates.
SUPPORT: (Verified 8/24/26)
The Institute for College Access & Success (source)
CA EDGE Coalition
California Competes: Higher Education for a Strong Economy
Campaign for College Opportunity
Children Now
County of Kern
EdTrust-West
JobTrain
Prismatic Research & Strategy
Public Advocates
San Bernardino Community College District
San Jose-Evergreen Community College District
Southern California College Attainment Network
Tipping Point Community
uAspire
Young Invincibles
OPPOSITION: (Verified 8/24/26)
AllCampus
ASSEMBLY FLOOR: 61-10, 5/21/26
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Davies, Elhawary, Fong, Gabriel, Gipson, Jeff Gonzalez, Mark González, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NOES: DeMaio, Dixon, Ellis, Gallagher, Hadwick, Johnson, Macedo, Patterson, Sanchez, Tangipa
NO VOTE RECORDED: Arambula, Castillo, Chen, Flora, Garcia, Lackey, Ramos, Celeste Rodriguez, Ta
Prepared by: Olgalilia Ramirez / ED. / (916) 651-4105
8/24/26 12:19:56
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 1534 |
THIRD READING
Bill No: AB 1534
Author: Irwin (D), et al.
Amended: 8/19/26 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE: 7-0, 6/24/26
AYES: Pérez, Ochoa Bogh, Cabaldon, Choi, Cortese, Gonzalez, Reyes
SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 7/1/26
AYES: Smallwood-Cuevas, Strickland, Cortese, Durazo, Laird
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/13/26
AYES: Cervantes, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab
ASSEMBLY FLOOR: 61-10, 5/21/26 - See last page for vote
SUBJECT: Federal Workforce Pell Grant program: local workforce development boards: participant training requirement
SOURCE: The Institute for College Access & Success
DIGEST:
This bill 1) establishes state consumer protection standards for public postsecondary institutions seeking to participate in the federal Workforce Pell Grant program for short-term workforce training programs; and 2) modifies Workforce Innovation and Opportunity Act (WIOA) requirements by requiring local workforce development boards to ensure that at least 50% of participants receive workforce training services beginning in 2028.
Senate Floor Amendments of 8/19/26 retain the existing WIOA expenditure reporting, require separate WIOA participant reporting requirements, and clarify the Employment Development Department’s (EDD) reporting process in the event a local area does not report leverage funds. The amendments further include private institutions to align with newly adopted Workforce Pell provisions and add clarifying language around guardrails for programs that outsource instruction related to decision-making authority and compensation and make institutions responsible for ensuring the outside entity complies with those provisions.
ANALYSIS:
Existing federal law:
- Establishes the federal Pell Grant to provide aid to students who demonstrate financial need. The Pell Grant award can be used for tuition and fees, books, and supplies, transportation, and living expenses for the equivalent of up to six years of full-time enrollment. The maximum Pell Grant for the 2025-26 academic year (which covers the period from July 1, 2025 – June 30, 2026) is $7,395. The minimum Pell Grant award for the same time frame is $740. (United States Code (USC) Title 20 § 1070)
- Establishes the federal Workforce Pell Grant program (via H.R. 1, Public Law 119-21), beginning July 1, 2026, to provide federal Pell Grant funding for eligible students enrolled in short-term workforce training programs aligned with high-skill, high-wage, or in-demand industries.
Existing state law:
- Establishes the Donahoe Higher Education Act, setting forth the mission of the University of California (UC), the California State University (CSU), and the California Community Colleges (CCC); and, defines “independent institutions of higher education” as nonpublic higher education institutions that grant undergraduate degrees, graduate degrees, or both, and that are formed as nonprofit corporations in California and are accredited by an agency recognized by the United States Department of Education (USDE). Specifies that for purposes of any code or statute, a national or regional accrediting agency recognized by the USDE as of January 1, 2025, shall retain that recognition until July 1, 2029, provided that the accrediting agency continues to operate in substantially the same manner as it did on January 1, 2025. (Education Code (EC) § 66010, et seq.)
- Establishes California Student Aid Commission (CSAC) as the state agency charged with administering state financial aid programs to qualifying students enrolled in qualifying institutions of higher education throughout the State. Existing law requires CSAC to prescribe the use of standardized student financial aid applications for California. (EC § 69433 and § 69510, et seq.)
- Establishes the Labor and Workforce Development Agency to coordinate workforce development programs and support workforce policy in California. (Government Code § 15550, et seq.)
4) Provides for implementation of the federal Workforce Pell program, including alignment of the Cal Grant C program and other conforming changes. (EC § 69870)
This bill:
- Prohibits a public and private higher education institutions from disbursing Workforce Pell Grant program funds to students enrolled in the institution’s short-term programs, and from advertising, marketing, or informing students about the availability of those funds, unless the institution has met both of the following:
- Obtained authorization from CSAC, on behalf of the Governor, as prescribed.
- Obtain approvals and meet all federal requirements.
- Prohibits CSAC from authorizing public and private higher education institutions to receive Workforce Pell Grant program funds for a short program if it does any of the following:
- Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the USDE, and that provides the instructors for the instruction of the short-term program, unless one of the following applies:
- The institution partners, contracts, or affiliates with the entity for the purpose of offering instruction for a registered apprenticeship program.
- The short-term program has a contract education agreement with a participating community college that meets the specified requirements.
- The institution meets all of the following requirements:
- Discloses and ensures that the entity is a company that is separate from the institution and a description of all of the services that the entity is contracted to provide for the institution in the manner specified.
- Ensures the entity is not paid using incentive compensation or tuition sharing with the institution.
- Ensures the entity does not exercise authority of any kind over the institution’s governance or decision-making processes, including participation in any deliberative or decision-making committee, task force, or other body, related to the design or development of core curriculum or instruction, admission standards, determining enrollment targets, or creation of new short-term programs. The entity may provide consultation or technical assistance in an advisory capacity only, and the institution shall retain sole and independent authority for all final decisions.
- Offers or affiliates with a company that offers financing for the short-term program using a private educational loan, including the specified types of financing.
- Charges tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant program funds available for a student in the short-term program. The prohibition does not apply if the portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount is paid on behalf of the student by the specified third parties.
- Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the USDE, and that provides the instructors for the instruction of the short-term program, unless one of the following applies:
- Authorizes CSAC to use the California Priority Jobs Credentials List to determine whether a short-term program satisfies the following requirement:
- Provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations.
- Meets the hiring requirements of employers in high-skill, high-wage, or in-demand industry sectors or occupations.
- Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards the credential upon completion.
- Authorizes the Labor and Workforce Development Agency to enter into a data-sharing agreement with the Office of Cradle to Career Data to the extent it is necessary to establish and maintain the California Priority Jobs Credential List.
- Modifies the following provisions to the WIOA Adult and Dislocated Worker program, effective July 1, 2028:
- Requires local workforce development boards, instead of spending a minimum of 30% of specified funds for adults and dislocated workers, to ensure that at least 50% of participants enrolled in the adult and dislocated worker program receive workforce training services.
- Prescribes the training services that count toward the participant training requirements, as specified.
- Requires local workforce development boards, instead of spending a minimum of 30% of specified funds for adults and dislocated workers, to ensure that at least 50% of participants enrolled in the adult and dislocated worker program receive workforce training services.
- Retains the existing WIOA expenditure reporting, requires separate WIOA participant reporting requirements, and clarifies the EDD reporting process in the event a local area does not report leverage funds.
- Makes other conforming and technical changes.
- States various findings and declarations related to the federal Workforce Pell Grant program and workforce training opportunities.
- States that it is the Legislature’s intent to expand access to high-quality workforce training opportunities by defining standards for short-term programs to be eligible for the federal Workforce Pell Grant program and requiring an increase in participants that receive workforce training services under the federal WIOA program.
Comments
Need for the bill. According to the author, “Californians looking to gain new skills or advance in their careers by enrolling in short-term workforce training programs may be eligible for new financial assistance. The federal government is set to begin rolling out Workforce Pell Grants for eligible Californians seeking to enroll in short-term programs lasting eight to 15 weeks. These programs will lead to industry-recognized credentials in sectors like healthcare, IT and skilled trades, and will train participants for high-wage and in-demand jobs.
“As states prepare to implement this historic expansion of aid, proper safeguards are necessary to ensure these programs deliver real opportunities for students and their families and prevent them from wasting their lifetime-limited Pell Grant eligibility. AB 1534 includes important consumer protection measures that protect students from risky private loans and require programs to charge reasonable costs and fully disclose partnerships with unaccredited organizations.”
Federal Workforce Pell program. Congress enacted H.R. 1, in the Summer of 2025. Among the many provisions contained in the measure is a section that expands Pell Grant eligibility to students enrolled in short-term, career-focused training programs that meet defined quality requirements and lead to industry-recognized credentials. The workforce training programs tend to be between 8 and 14 weeks in length and are intended to provide rapid pathways to employment in high-demand industries. This expansion is commonly referred to as “Short-Term Pell” or “Workforce Pell.”
According to the National Governors Association and America Achieves, in their Workforce Pell: An Overview for Governors March 2026 policy memo, “the Congressional Budget Office estimates that over the next ten years, the federal government will invest approximately $1.5 billion in Workforce Pell Grants of about $2,200 per recipient, although awards will vary as they are prorated based on program length and student need. However, research on such short-term programs demonstrates that while some programs deliver strong labor market returns, many do not. This new funding stream represents an opportunity for Governors to drive resources to the strongest programs to address critical workforce development needs and better align postsecondary training to high-skill, high-wage, and in-demand jobs through their implementation decisions.”
The Workforce Pell goes into effect on July 1, 2026, the USDE proposed regulations in March 2026, and is expected to finalize regulations later this Spring. Presently, the draft regulations leave Governors with considerable leeway in the details of implementation.
Workforce Pell and existing state financial aid programs. As mentioned, Workforce Pell is designed to support short-term workforce training programs that may be completed in as little as eight weeks and can be up to 15 weeks in duration. California’s primary state financial aid programs under Cal Grant generally support students enrolled in degree and longer-term certificate programs. Specifically, Cal Grant C supports occupational and technical training programs that are at least four months in length. To that end, Workforce Pell is filling a gap in student aid not covered under the Cal Grant program. This bill establishes additional state participation standards for Workforce Pell but does not modify eligibility for existing state financial aid programs.
Consumer protection measures. This bill aims to create state-level consumer protection standards intended to protect Workforce Pell recipients enrolling in short-term programs. The proposed requirements are applicable to public and private higher education institutions physically located in this state seeking to participate in the Workforce Pell program. Among other provisions, this bill restricts tuition and fee levels, limits the use of certain private financial arrangements, establishes conditions governing third-party partnerships, and requires participating programs to demonstrate alignment with workforce needs. Specifically, this measure prohibits institutions from charging tuition and fees that exceed the maximum available Workforce Pell award, unless the excess amount is paid by an employer, labor-management partnership, or another third-party that does not require repayment by the student. It also prohibits participation by institutions that offer or affiliate with providers of private education loans, income share agreements, or similar credit products. This bill also requires CSAC to deny authorization to institutions that do not satisfy specified requirements. The proponents of this measure argue that restricting tuition levels limits reliance on private educational loans and income share agreements, and that imposing requirements for third-party partnerships and alignment with workforce needs helps ensure students are participating in quality programs that will lead to meaningful employment opportunities related to their field of study/training.
Third-Party providers and tuition-sharing arrangements. This bill further prohibits higher education institutions from receiving authorization to participate in the Workforce Pell if it compensates a third-party provider through tuition sharing or incentive compensation arrangements. The sponsors of this bill argue that these compensation models may create incentives to prioritize enrollment growth over student outcomes and can blur the lines between higher education institutions and for-profit education providers. Proponents point to recent disputes involving online program manager (OPM) partnerships with public and private institutions, including the University of Southern California and 2U, and Caltech and Simplilearn, and a 2023 State Auditor review of UC’s use of OPMs as issues that may arise from these types of partnerships. A UC audit identified 52 UC contracts with OPMs in effect at that time, none of which involved undergraduate programs. Of those contracts, 30 were with five UC campuses, of which 15 pertained to continuing education provided through campus extension units. This bill does not prohibit institutions from partnering with OPMs or other third-party providers. Rather, it restricts certain compensation arrangements and limits the role third-party entities may play in academic and institutional decision-making. Institutions may continue to contract with third-party providers if the partnership satisfies the bill’s specified conditions. This bill also preserves the institution’s responsibility for academic decision-making by prohibiting third-party entities from exercising authority over curriculum development, admissions standards, enrollment targets, or the creation of new short-term programs.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee analysis, this bill would have the following fiscal impact:
- The Chancellor’s Office for the California Community Colleges estimates one-time Proposition 98 General Fund costs in the low tens of thousands of dollars for each participating district to develop an implementation plan necessary to participate in the federal Workforce Pell Grant Program. Participation in the program is voluntary, therefore the exact cost would depend on the number of community college districts that elect to pursue Workforce Pell eligibility. The Chancellor’s Office also estimates one-time General Fund workload costs of $12,000 to $24,000 to develop and distribute a guidance memo and provide technical assistance to the field.
- The California Student Aid Commission (CSAC), Office of Cradle to Career Data (C2C) and the Employee Development Department (EDD) each indicate that the costs to implement this bill would be minor and absorbable. The 2026 Budget Act includes $1.3 million in General Fund for the C2C for workload related to the federal Workforce Pell Grant Program.
This bill could result in additional costs for local workforce development areas to submit corrective actions plans to the EDD for not meeting the bill’s participant training requirements. The extent of these costs is unknown and could be deemed to be reimbursable by the Commission on State Mandates.
SUPPORT: (Verified 8/20/26)
The Institute for College Access & Success (source)
CA EDGE Coalition
California Competes: Higher Education for a Strong Economy
Campaign for College Opportunity
Children Now
County of Kern
EdTrust-West
JobTrain
Prismatic Research & Strategy
Public Advocates
San Bernardino Community College District
San Jose-Evergreen Community College District
Southern California College Attainment Network
Tipping Point Community
uAspire
Young Invincibles
OPPOSITION: (Verified 8/20/26)
AllCampus
ASSEMBLY FLOOR: 61-10, 5/21/26
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Davies, Elhawary, Fong, Gabriel, Gipson, Jeff Gonzalez, Mark González, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NOES: DeMaio, Dixon, Ellis, Gallagher, Hadwick, Johnson, Macedo, Patterson, Sanchez, Tangipa
NO VOTE RECORDED: Arambula, Castillo, Chen, Flora, Garcia, Lackey, Ramos, Celeste Rodriguez, Ta
Prepared by: Olgalilia Ramirez / ED. / (916) 651-4105
8/20/26 11:07:28
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 1534 |
THIRD READING
Bill No: AB 1534
Author: Irwin (D), et al.
Amended: 6/15/26 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE: 7-0, 6/24/26
AYES: Pérez, Ochoa Bogh, Cabaldon, Choi, Cortese, Gonzalez, Reyes
SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 7/1/26
AYES: Smallwood-Cuevas, Strickland, Cortese, Durazo, Laird
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/13/26
AYES: Cervantes, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab
ASSEMBLY FLOOR: 61-10, 5/21/26 - See last page for vote
SUBJECT: Federal Workforce Pell Grant program: local workforce development boards: participant training requirement
SOURCE: The Institute for College Access & Success
DIGEST:
This bill establishes state consumer protection standards for public postsecondary institutions seeking to participate in the federal Workforce Pell Grant program for short-term workforce training programs. It further modifies Workforce Innovation and Opportunity Act (WIOA) requirements by requiring local workforce development boards to ensure that at least 50% of participants receive workforce training services beginning in 2028.
ANALYSIS:
Existing federal law:
1) Establishes the federal Pell Grant to provide aid to students who demonstrate financial need. The Pell Grant award can be used for tuition and fees, books, and supplies, transportation, and living expenses for the equivalent of up to six years of full-time enrollment. The maximum Pell Grant for the 2025-26 academic year (which covers the period from July 1, 2025 – June 30, 2026) is $7,395. The minimum Pell Grant award for the same time frame is $740. (United States Code (USC) Title 20 § 1070)
2) Establishes the federal Workforce Pell Grant program (via H.R. 1, Public Law 119-21), beginning July 1, 2026, to provide federal Pell Grant funding for eligible students enrolled in short-term workforce training programs aligned with high-skill, high-wage, or in-demand industries.
Existing state law:
1) Establishes the Donahoe Higher Education Act, setting forth the mission of the University of California (UC), the California State University (CSU), and the California Community Colleges (CCC); and, defines “independent institutions of higher education” as nonpublic higher education institutions that grant undergraduate degrees, graduate degrees, or both, and that are formed as nonprofit corporations in California and are accredited by an agency recognized by the United States Department of Education (USDE). Specifies that for purposes of any code or statute, a national or regional accrediting agency recognized by the USDE as of January 1, 2025, shall retain that recognition until July 1, 2029, provided that the accrediting agency continues to operate in substantially the same manner as it did on January 1, 2025. (Education Code (EC) § 66010, et seq.)
2) Establishes California Student Aid Commission (CSAC) as the state agency charged with administering state financial aid programs to qualifying students enrolled in qualifying institutions of higher education throughout the State. Existing law requires CSAC to prescribe the use of standardized student financial aid applications for California. (EC § 69433 and § 69510, et seq.)
3) Establishes the Labor and Workforce Development Agency to coordinate workforce development programs and support workforce policy in California. (Government Code § 15550, et seq.)
This bill:
- Prohibits a public postsecondary educational institution from disbursing Workforce Pell Grant program funds to students enrolled in the institution’s short-term programs, and from advertising, marketing, or informing students about the availability of those funds, unless the institution has met both of the following:
- Obtained authorization from CSAC, on behalf of the Governor, as prescribed.
- Obtain approvals and meet all federal requirements.
- Prohibits CSAC from authorizing public postsecondary educational institutions to receive Workforce Pell Grant program funds for a short program if it does any of the following:
- Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the USDE to provide, or offer to provide, instruction for the short-term program, unless one of the following applies:
- The institution partners, contracts, or affiliates with the entity for the purpose of offering instruction for a registered apprenticeship program.
- The short-term program has a contract education agreement with a participating community college that meet the specified requirements.
- The entity and institution disclose that the entity is a company that is separate from the institution and describes all of the services that the entity is contracted to provide for the institutions in the manner specified.
- The entity is not paid using incentive compensation or tuition sharing with the institution.
- The entity does not participate in, or exercise authority over, the institution’s governance or decision-making process on factors including the design or development of core curriculum or instruction, admission standards, determining enrollment targets, or creation of new short-term programs.
- Offers or affiliates with a company that offers financing for the short-term program using a private educational loan, including the specified types of financing.
- Charges tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant program funds available for a student in the short-term program. The prohibition does not apply if the portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount is paid on behalf of the student by the specified third parties.
- Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the USDE to provide, or offer to provide, instruction for the short-term program, unless one of the following applies:
- Authorizes CSAC to use the California Priority Jobs Credentials List to determine whether a short-term program satisfies the following requirement:
- Provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations.
- Meets the hiring requirements of employers in high-skill, high-wage, or in-demand industry sectors or occupations.
- Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards the credential upon completion.
- Authorizes the Labor and Workforce Development Agency to enter into a data-sharing agreement with the Office of Cradle to Career Data to the extent it is necessary to establish and maintain the California Priority Jobs Credential List.
- Modifies the following provisions to the WIOA Adult and Dislocated Worker program, effective July 1, 2028:
- Requires local workforce development boards, instead of spending a minimum of 30% of specified funds for adults and dislocated workers, to ensure that at least 50% of participants enrolled in the adult and dislocated worker program receive workforce training services.
- Prescribes the training services that count toward the participant training requirements, as specified.
- Requires the Employment Development Department (EDD) at the end of each program year to calculate for each local workforce development board whether the local workforce development board met the participant training requirement and annually report regarding the aggregate number of participants enrolled in adult and dislocated worker programs and the aggregate percentage of those enrolled participants receiving training services.
- Requires a local workforce development area that does not meet the participant training requirement to submit a corrective action plan to EDD that provides reasons for not meeting the participant training requirement and describes actions taken to address the identified participant training deficiencies.
- Requires local workforce development boards, instead of spending a minimum of 30% of specified funds for adults and dislocated workers, to ensure that at least 50% of participants enrolled in the adult and dislocated worker program receive workforce training services.
- Makes other conforming and technical changes.
- State various findings and declarations related to the federal Workforce Pell Grant program and workforce training opportunities.
- States that it is the Legislature’s intent to expand access to high-quality workforce training opportunities by defining standards for short-term programs to be eligible for the federal Workforce Pell Grant program and requiring an increase in participants that receive workforce training services under the federal WIOA program.
Comments
- Need for the bill. According to the author, “Californians looking to gain new skills or advance in their careers by enrolling in short-term workforce training programs may be eligible for new financial assistance. The federal government is set to begin rolling out Workforce Pell Grants for eligible Californians seeking to enroll in short-term programs lasting eight to 15 weeks. These programs will lead to industry-recognized credentials in sectors like healthcare, IT and skilled trades, and will train participants for high-wage and in-demand jobs.
“As states prepare to implement this historic expansion of aid, proper safeguards are necessary to ensure these programs deliver real opportunities for students and their families and prevent them from wasting their lifetime-limited Pell Grant eligibility. AB 1534 includes important consumer protection measures that protect students from risky private loans and require programs to charge reasonable costs and fully disclose partnerships with unaccredited organizations.”
- Federal Workforce Pell program. Congress enacted H.R. 1, in the Summer of 2025. Among the many provisions contained in the measure is a section that expands Pell Grant eligibility to students enrolled in short-term, career-focused training programs that meet defined quality requirements and lead to industry-recognized credentials. The workforce training programs tend to be between 8 and 14 weeks in length and are intended to provide rapid pathways to employment in high-demand industries. This expansion is commonly referred to as “Short-Term Pell” or “Workforce Pell.”
According to the National Governors Association and America Achieves, in their Workforce Pell: An Overview for Governors March 2026 policy memo, “the Congressional Budget Office estimates that over the next ten years, the federal government will invest approximately $1.5 billion in Workforce Pell Grants of about $2,200 per recipient, although awards will vary as they are prorated based on program length and student need. However, research on such short-term programs demonstrates that while some programs deliver strong labor market returns, many do not. This new funding stream represents an opportunity for Governors to drive resources to the strongest programs to address critical workforce development needs and better align postsecondary training to high-skill, high-wage, and in-demand jobs through their implementation decisions.”
The Workforce Pell goes into effect on July 1, 2026, the USDE proposed regulations in March 2026, and is expected to finalize regulations later this Spring. Presently, the draft regulations leave Governors with considerable leeway in the details of implementation.
- Workforce Pell and existing state financial aid programs. As mentioned, Workforce Pell is designed to support short-term workforce training programs that may be completed in as little as eight weeks and can be up to 15 weeks in duration. California’s primary state financial aid programs under Cal Grant generally support students enrolled in degree and longer-term certificate programs. Specifically, Cal Grant C supports occupational and technical training programs that are at least four months in length. To that end, Workforce Pell is filling a gap in student aid not covered under the Cal Grant program. This bill establishes additional state participation standards for Workforce Pell but does not modify eligibility for existing state financial aid programs.
- Consumer protection measures. This bill aims to create state-level consumer protection standards intended to protect Workforce Pell recipients enrolling in short-term programs. The proposed requirements are applicable to UC, CSU, and CCCs seeking to participate in the Workforce Pell program. Among other provisions, this bill restricts tuition and fee levels, limits the use of certain private financial arrangements, establishes conditions governing third-party partnerships, and requires participating programs to demonstrate alignment with workforce needs. Specifically, this measure prohibits institutions from charging tuition and fees that exceed the maximum available Workforce Pell award, unless the excess amount is paid by an employer, labor-management partnership, or another third-party that does not require repayment by the student. It also prohibits participation by institutions that offer or affiliate with providers of private education loans, income share agreements, or similar credit products. This bill also requires CSAC to deny authorization to institutions that do not satisfy specified requirements. The proponents of this measure argue that restricting tuition levels limits reliance on private educational loans and income share agreements, and that imposing requirements for third-party partnerships and alignment with workforce needs helps ensure students are participating in quality programs that will lead to meaningful employment opportunities related to their field of study/training.
- Third-Party providers and tuition-sharing arrangements. This bill further prohibits UC, CSU, and CCCs from receiving authorization to participate in the Workforce Pell if it compensates a third-party provider through tuition sharing or incentive compensation arrangements. The sponsors of this bill argue that these compensation models may create incentives to prioritize enrollment growth over student outcomes and can blur the lines between public institutions and for-profit education providers. Proponents point to recent disputes involving online program manager (OPM) partnerships with public and private institutions, including the University of Southern California and 2U, and Caltech and Simplilearn, and a 2023 State Auditor review of UC’s use of OPMs as issues that may arise from these types of partnerships. The UC audit identified 52 UC contracts with OPMs in effect at that time, none of which involved undergraduate programs. Of those contracts, 30 were with five UC campuses, of which 15 pertained to continuing education provided through campus extension units. This bill does not prohibit institutions from partnering with OPMs or other third-party providers. Rather, it restricts certain compensation arrangements and limits the role third-party entities may play in academic and institutional decision-making. Institutions may continue to contract with third-party providers if the partnership satisfies the bill’s specified conditions. This bill also preserves the institution’s responsibility for academic decision-making by prohibiting third-party entities from exercising authority over curriculum development, admissions standards, enrollment targets, or the creation of new short-term programs.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee analysis, this bill would have the following fiscal impact:
- The Chancellor’s Office for the California Community Colleges estimates one-time Proposition 98 General Fund costs in the low tens of thousands of dollars for each participating district to develop an implementation plan necessary to participate in the federal Workforce Pell Grant Program. Participation in the program is voluntary, therefore the exact cost would depend on the number of community college districts that elect to pursue Workforce Pell eligibility. The Chancellor’s Office also estimates one-time General Fund workload costs of $12,000 to $24,000 to develop and distribute a guidance memo and provide technical assistance to the field.
- The California Student Aid Commission (CSAC), Office of Cradle to Career Data (C2C) and the Employee Development Department (EDD) each indicate that the costs to implement this bill would be minor and absorbable. The 2026 Budget Act includes $1.3 million in General Fund for the C2C for workload related to the federal Workforce Pell Grant Program.
- This bill could result in additional costs for local workforce development areas to submit corrective actions plans to the EDD for not meeting the bill’s participant training requirements. The extent of these costs is unknown and could be deemed to be reimbursable by the Commission on State Mandates.
SUPPORT: (Verified 8/14/26)
The Institute for College Access & Success (source)
CA EDGE Coalition
California Competes: Higher Education for a Strong Economy
Campaign for College Opportunity
Children Now
EdTrust-West
JobTrain
Prismatic Research & Strategy
Public Advocates
San Bernardino Community College District
San Jose-Evergreen Community College District
Southern California College Attainment Network
Tipping Point Community
uAspire
Young Invincibles
OPPOSITION: (Verified 8/14/26)
AllCampus
ASSEMBLY FLOOR: 61-10, 5/21/26
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Davies, Elhawary, Fong, Gabriel, Gipson, Jeff Gonzalez, Mark González, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NOES: DeMaio, Dixon, Ellis, Gallagher, Hadwick, Johnson, Macedo, Patterson, Sanchez, Tangipa
NO VOTE RECORDED: Arambula, Castillo, Chen, Flora, Garcia, Lackey, Ramos, Celeste Rodriguez, Ta
Prepared by: Olgalilia Ramirez / ED. / (916) 651-4105
8/15/26 12:56:12
**** END ****
SENATE COMMITTEE ON
Senator Sabrina Cervantes, Chair
2025 - 2026 Regular Session
AB 1534 (Irwin) - Federal Workforce Pell Grant program: local workforce development boards: participant training requirement
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
This bill establishes state consumer protection standards for public postsecondary institutions seeking to participate in the federal Workforce Pell Grant program for short-term workforce training programs. It further modifies Workforce Innovation and Opportunity Act (WIOA) requirements by requiring local workforce development boards to ensure that at least 50 percent of participants receive workforce training services beginning in 2028.
Fiscal Impact:
- The Chancellor’s Office for the California Community Colleges estimates one-time Proposition 98 General Fund costs in the low tens of thousands of dollars for each participating district to develop an implementation plan necessary to participate in the federal Workforce Pell Grant Program. Participation in the program is voluntary, therefore the exact cost would depend on the number of community college districts that elect to pursue Workforce Pell eligibility. The Chancellor’s Office also estimates one-time General Fund workload costs of $12,000 to $24,000 to develop and distribute a guidance memo and provide technical assistance to the field.
- The California Student Aid Commission (CSAC), Office of Cradle to Career Data (C2C) and the Employee Development Department (EDD) each indicate that the costs to implement this bill would be minor and absorbable. The 2026 Budget Act includes $1.3 million in General Fund for the C2C for workload related to the federal Workforce Pell Grant Program.
- This bill could result in additional costs for local workforce development areas to submit corrective actions plans to the EDD for not meeting the bill’s participant training requirements. The extent of these costs is unknown and could be deemed to be reimbursable by the Commission on State Mandates.
Background:
Existing federal law establishes the federal Pell Grant to provide aid to students who demonstrate financial need. The Pell Grant award can be used for tuition and fees, books, and supplies, transportation, and living expenses for the equivalent of up to six years of full-time enrollment. The maximum Pell Grant for the 2025-26 academic year is $7,395, while the minimum award is $740.
Existing federal law establishes the federal Workforce Pell Grant program (via H.R. 1, Public Law 119-21), beginning July 1, 2026, to provide federal Pell Grant funding for eligible students enrolled in short-term workforce training programs aligned with high-skill, high-wage, or in-demand industries.
Proposed Law:
This bill prohibits a public postsecondary educational institution from disbursing Workforce Pell Grant program funds to students enrolled in the institution’s short-term programs, and from advertising, marketing, or informing students about the availability of those funds, unless the institution has met both of the following: obtained authorization from CSAC, on behalf of the Governor, as prescribed, and obtained approvals and meet all federal requirements.
This bill prohibits CSAC from authorizing public postsecondary educational institutions to receive Workforce Pell Grant program funds for a short program if it does any of the following:
- Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the USDE to provide, or offer to provide, instruction for the short-term program, unless one of several conditions apply, as specified, including the institution partners, contracts, or affiliates with the entity for the purpose of offering instruction for a registered apprenticeship program and the short-term program has a contract education agreement with a participating community college that meet the specified requirements.
- Offers or affiliates with a company that offers financing for the short-term program using a private educational loan, including the specified types of financing.
- Charges tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant programs funds available for a student in the short-term program. The prohibition does not apply if the portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount is paid on behalf of the student by the specified third parties.
This bill authorizes CSAC to use the California Priority Jobs Credentials List to determine whether a short-term program satisfies the following requirements:
- Provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations.
- Meets the hiring requirements of employers in high-skill, high-wage, or in-demand industry sectors or occupations.
- Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards the credential upon completion.
This bill authorizes the Labor and Workforce Development Agency to enter into a data-sharing agreement with the Office of Cradle to Career Data to the extent it is necessary to establish and maintain the California Priority Jobs Credential List.
This bill modifies WIOA Adult and Dislocated Worker program provisions by providing that at least 30 percent of funds be spent on training services to at least 50 percent of enrolled participants receiving training services, effective 2028. This bill would require a local workforce development area that does not meet the participant training requirement to submit a corrective action plan to the EDD that provides reasons for not meeting the requirement and describes actions taken to address the training deficiencies.
Staff Comments:
Congress enacted H.R. 1, in the Summer of 2025 which includes a provision that expands Pell Grant eligibility to students enrolled in short-term, career-focused training programs that meet defined quality requirements and lead to industry-recognized credentials. The workforce training programs tend to be between 8 and 14 weeks in length and are intended to provide rapid pathways to employment in high-demand industries. This expansion is commonly referred to as “Short-Term Pell” or “Workforce Pell” and went into effect on July 1, 2026. This bill establishes additional state participation standards for Workforce Pell and seeks to create state-level consumer protection standards intended to protect Workforce Pell recipients enrolling in short-term programs. The proposed requirements are applicable to the University of California, the California State University, and California Community Colleges seeking to participate in the Workforce Pell program. Specifically, the bill restricts tuition and fee levels, limits the use of certain private financial arrangements, establishes conditions governing third-party partnerships, and requires participating programs to demonstrate alignment with workforce needs. This measure would prohibit institutions from charging tuition and fees that exceed the maximum available Workforce Pell award unless the excess amount is paid by an employer, labor-management partnership, or another third-party that does not require repayment by the student. The bill would also prohibit participation by institutions that offer or affiliate with providers of private education loans, income share agreements, or similar credit products. Further, the bill would also require CSAC to deny authorization to institutions that do not satisfy specified requirements.
According to the author, “Californians looking to gain new skills or advance in their careers by enrolling in short-term workforce training programs may be eligible for new financial assistance. The federal government is set to begin rolling out Workforce Pell Grants for eligible Californians seeking to enroll in short-term programs lasting eight to 15 weeks. These programs will lead to industry-recognized credentials in sectors like healthcare, IT and skilled trades, and will train participants for high-wage and in-demand jobs. As states prepare to implement this historic expansion of aid, proper safeguards are necessary to ensure these programs deliver real opportunities for students and their families and prevent them from wasting their lifetime-limited Pell Grant eligibility. AB 1534 includes important consumer protection measures that protect students from risky private loans and require programs to charge reasonable costs and fully disclose partnerships with unaccredited organizations.”
-- END --
SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT
Senator Lola Smallwood-Cuevas, Chair
2025 - 2026 Regular
Bill No: AB 1534 Hearing Date: July 1, 2026
Author: | Irwin | ||
Version: | June 15, 2026 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Jazmin Marroquin | ||
SUBJECT: Federal Workforce Pell Grant program: local workforce development boards: participant training requirement
KEY ISSUE
This bill establishes state consumer protection standards for public postsecondary institutions seeking to participate in the federal Workforce Pell Grant program for short-term workforce training programs, as specified. This bill also modifies the Workforce Innovation and Opportunity Act (WIOA) requirements by requiring local workforce development boards (LWDBs) to ensure that at least 50% of participants receive workforce training services beginning in 2028.
ANALYSIS
Existing federal law:
- Establishes the federal Pell Grant to provide aid to students who demonstrate financial need. The Pell Grant award can be used for tuition and fees, books, and supplies, transportation, and living expenses for the equivalent of up to six years of full-time enrollment. The maximum Pell Grant for the 2025-26 academic year (which covers the period from July 1, 2025 – June 30, 2026) is $7,395. The minimum Pell Grant award for the same time frame is $740. (20 USC §1070)
- Establishes the federal Workforce Pell Grant program beginning July 1, 2026, to provide federal Pell Grant funding for eligible students enrolled in short-term workforce training programs aligned with high-skill, high-wage, or in-demand industries. (20 USC §1070a (k), Public Law 119-21, 139 STAT. 350)
- Establishes the Workforce Innovation and Opportunity Act (WIOA) to help job seekers access employment, education, training, and support services to succeed in the labor market and to match employers with the skilled workers they need to compete in the global economy. (29 USC §3101-3361)
Existing state law:
- Establishes the Donahoe Higher Education Act, setting forth the mission of the University of California (UC), the California State University (CSU), and the California Community Colleges (CCC); and, defines “independent institutions of higher education” as nonpublic higher education institutions that grant undergraduate degrees, graduate degrees, or both, and that are formed as nonprofit corporations in California and are accredited by an agency recognized by the United States Department of Education (USDE). Specifies that for purposes of any code or statute, a national or regional accrediting agency recognized by the USDE as of January 1, 2025, shall retain that recognition until July 1, 2029, provided that the accrediting agency continues to operate in substantially the same manner as it did on January 1, 2025. (Education Code §66010 et seq.)
- Establishes California Student Aid Commission (CSAC) as the state agency charged with administering state financial aid programs to qualifying students enrolled in qualifying institutions of higher education throughout the State. Existing law requires CSAC to prescribe the use of standardized student financial aid applications for California. (EC § 69433 and § 69510, et seq.)
- Establishes the Employment Development Department (EDD) within the Labor and Workforce Development Agency (LWDA) and makes it responsible for administering the state's unemployment insurance, disability insurance, and workforce development programs. (Unemployment Insurance Code § 301 et seq.)
- Creates the California Workforce Innovation and Opportunity Act to make programs and services available to individuals with employment barriers. (Unemployment Insurance Code §14000 et seq.)
- Establishes the California Workforce Development Board (CWDB), under the purview of the LWDA, as the body responsible for assisting the Governor in the development, oversight, and continuous improvement of California’s workforce system, including its alignment to the needs of the economy and the workforce. (Unemployment Insurance Code §14010 et seq.)
- Establishes the Consolidated Work Program Fund in the State Treasury, for the receipt of all moneys deposited pursuant to the federal WIOA, and requires moneys in the fund to be made available, upon appropriation by the Legislature, to EDD for expenditure consistent with the purposes of the federal WIOA and the State Plan. (Unemployment Insurance Code §14004.5 et seq.)
- Requires the establishment of a local workforce development board (LWDB) in each local workforce development area of the state to, among other things, plan and oversee the workforce investment system. (Unemployment Insurance Code §§14200-14211)
- Requires LWDBs to spend an amount equal to at least 30% of funds available under Title I of the federal WIOA provided to LWDBs for adults and dislocated workers on workforce training programs. Provides that this minimum may be met either by spending 30% of those base formula funds on training or by combining a portion of those base formula funds with leveraged funds, as specified. Prescribes the training services that count toward the minimum percentage of funds, as specified. (Unemployment Insurance Code §14211)
- Requires EDD to, at the end of each program year, to calculate for each LWDB whether the LWDB met the expenditure requirements of this section, as specified. Requires EDD to report annually to the Governor, the Legislature, and CWDB regarding the training and supportive services expenditures made by LWDBs pursuant to the expenditure requirements of this section.
- Requires a local workforce development area that does not meet the specified requirements to submit a corrective action plan to EDD that provides reasons for not meeting the requirements and describes actions taken to address the identified expenditure deficiencies. A local workforce development area must provide a corrective action plan to EDD pursuant to this section within 90 days of receiving the calculations, as specified.
This bill:
- Prohibits a public postsecondary educational institution from disbursing Workforce Pell Grant program funds to students enrolled in the institution’s short-term programs, and from advertising, marketing, or informing students about the availability of those funds, unless the institution has met both of the following:
- Obtained authorization from the California Student Aid Commission (CSAC), as specified.
- Obtained approvals and met all requirements set forth by the USDE.
- Prohibits CSAC from authorizing a public postsecondary educational institution to receive Workforce Pell Grant program funds for a short-term program if the institution does any of the following:
- Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the USDE to provide, or offer to provide, instruction for the short-term program, unless one of the following applies:
- The institution partners, contracts, or affiliates with the entity for the purpose of offering instruction for a registered apprenticeship program.
- The short-term program has a contract education agreement with a participating community college and a provider, as specified.
- The entity and institution meet all of the following requirements:
- Clearly and prominently discloses that the entity is a company that is separate from the institution and describes all of the services that the entity is contracted to provide for the institution, as specified.
- The entity is not paid using incentive compensation or tuition sharing with the institution.
- The entity does not participate in, or exercise authority over, the institution’s governance or decisionmaking processes on factors, including, but not limited to, the design or development of course curriculum or instruction, setting of short-term program admission standards, determining enrollment targets, or creation of new short-term programs.
- Offers or affiliates with a company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.
- Charges tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant program funds available for a student in the short-term program, as determined by the Secretary of the USDE, for the period of time that the program is offered.
- This prohibition does not apply to any portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount if that excess amount is paid on behalf of the student by an employer, a labor-management partnership, or another third party, provided that the third party is not a lender or an offeror of a private education loan or other credit product for which the student bears any responsibility for repayment.
- Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the USDE to provide, or offer to provide, instruction for the short-term program, unless one of the following applies:
- Authorizes CSAC to use the California Priority Jobs Credentials List to determine whether a short-term program satisfies the following requirements under the Workforce Pell Grant program:
- Provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations.
- Meets the hiring requirements of employers in high-skill, high-wage, or in-demand sectors or occupations.
- Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards students with the credential upon completion of the short-term program.
- Authorizes LWDA to enter into a data-sharing agreement with the Office of Cradle-to-Career Data to the extent it is necessary to establish and maintain the California Priority Jobs Credential List.
- Modifies the following provisions to the WIOA Adult and Dislocated Worker program, effective July 1, 2028:
- Requires LWDBs, instead of spending a minimum of 30% of specified funds for adults and dislocated workers, to ensure that at least 50% of participants enrolled in the adult and dislocated worker program receive workforce training services.
- Prescribes the training services that count toward the participant training requirements, as specified.
- Requires EDD at the end of each program year to calculate for each LWDB whether the LWDB met the participant training requirement and annually report regarding the aggregate number of participants enrolled in adult and dislocated worker programs and the aggregate percentage of those enrolled participants receiving training services.
- Requires a local workforce development area that does not meet the participant training requirement to submit a corrective action plan to EDD that provides reasons for not meeting the participant training requirement and describes actions taken to address the identified participant training deficiencies.
- Requires LWDBs, instead of spending a minimum of 30% of specified funds for adults and dislocated workers, to ensure that at least 50% of participants enrolled in the adult and dislocated worker program receive workforce training services.
- Makes specified conforming and technical changes.
- Finds and declares the following:
- The federal Workforce Pell Grant program (Public Law 119-21) allows funding to be used for certain short-term workforce training programs that demonstrate positive employment and earnings outcomes.
- In implementing the federal Workforce Pell Grant program, states may impose standards to protect students from financially risky, low-quality, or fraudulent short-term programs and to protect students from incurring debt they cannot repay.
- Title I of the federal Workforce Innovation and Opportunity Act (WIOA) of 2014 (Public Law 113-128) provides another funding stream for workforce training services for adults and dislocated workers.
- A report commissioned by the California Workforce Development Board in 2022 found that California’s WIOA-enrolled participants who received targeted training services were significantly more likely to find employment and earn higher wages compared to those who only received basic career services.
- Encouraging more participants to receive training, rather than spending more dollars on training, will increase access to high-quality, no-cost or low-cost workforce training and education offered through community colleges and adult schools, and deepen collaborations between local workforce development boards and community colleges.
- A participant training requirement will leverage federal Workforce Pell Grant program funds as a new funding stream to support training that would allow more WIOA dollars to be spent on supports and services to increase participants’ completion and job placement.
- Declares that it is the intent of the Legislature to expand access to high-quality workforce training opportunities by defining standards for short-term programs to be eligible for the federal Workforce Pell Grant program and requiring an increase in participants that receive workforce training services under Title I of WIOA.
COMMENTS
1. Background:
[NOTE: This analysis is limited to the bill’s provisions modifying the Workforce Innovation and Opportunity Act (WIOA) requirements. Please see the Senate Education Committee analysis for detailed background on CSAC, public postsecondary educational institutions, and the Workforce Pell Grant program.]
Federal Workforce Pell program
According to the Senate Education Committee, “Congress enacted H.R. 1, in the Summer of 2025. Among the many provisions contained in the measure is a section that expands Pell Grant eligibility to students enrolled in short-term, career-focused training programs that meet defined quality requirements and lead to industry-recognized credentials. The workforce training programs tend to be between 8 and 14 weeks in length and are intended to provide rapid pathways to employment in high-demand industries. This expansion is commonly referred to as ‘Short-Term Pell’ or ‘Workforce Pell.’
According to the National Governors Association and America Achieves, in their Workforce Pell: An Overview for Governors March 2026 policy memo, ‘the Congressional Budget Office estimates that over the next ten years, the federal government will invest approximately $1.5 billion in Workforce Pell Grants of about $2,200 per recipient, although awards will vary as they are prorated based on program length and student need. However, research on such short-term programs demonstrates that while some programs deliver strong labor market returns, many do not. This new funding stream represents an opportunity for Governors to drive resources to the strongest programs to address critical workforce development needs and better align postsecondary training to high-skill, high-wage, and in-demand jobs through their implementation decisions.’
The Workforce Pell goes into effect on July 1, 2026, the USDE proposed regulations in March 2026, and is expected to finalize regulations later this Spring. Presently, the draft regulations leave Governors with considerable leeway in the details of implementation. […]
Trailer bill language to the 2026-27 Budget Act includes a proposal related to implementation of the federal Workforce Pell Grant program. The proposal would establish a process for CSAC, in consultation with CWDB, to determine whether short-term programs offered by UC, CSU, and CCCs meet federal and state eligibility requirements for participation in Workforce Pell. The proposal would also require participating institutions to report program and student outcome data and would establish various oversight and reporting requirements.
This bill attempts to address the same federal Workforce Pell Grant programs but would establish additional requirements related to institutional participation, student protections, and certain contractual and financial arrangements. […]. With regard to CSAC responsibilities, this bill would not create a separate approval process but instead would establish additional standards and conditions that CSAC would be required to apply when making authorization determinations.”
Workforce development
The California Workforce Development Board (CWDB) is the state entity tasked with assisting the Governor in the development, oversight, and continuous improvement of California’s workforce investment system. Among other things, the CWDB is tasked with developing, implementing, and modifying California’s Unified Strategic State Plan (State Plan) to serve as the comprehensive framework and coordinated plan for the aligned investment of all federal and state workforce training and employment services funding streams and programs. CWDB works closely with local workforce development boards (LWDBs) to ensure statewide workforce efforts align with regional priorities and community needs.
The State has 45 LWDBs, each with their unique local context. Members of private sector business, organized labor, community-based organizations, local government agencies, and local education agencies comprise a LWDB’s membership. EDD, in partnership with LWDBs, oversee America’s Job Center of California (AJCC). AJCC is a one-stop shop for no-cost job and training services that helps connect employers with job openings to people who are looking for work. The AJCC is a network of local and state organizations, as well as private and public groups, working together to provide these services at no cost. Adults and displaced workers receive an initial assessment, job search and placement assistance, and career counseling at LWDBs.
WIOA Adult and Dislocated Worker program
In 2014, the federal WIOA was signed into law, which was designed to help job seekers access employment, education, training, and support services to succeed in the labor market and to match employers with the skilled workers they need to compete in the global economy. WIOA-funded services include job search assistance, workforce preparation, career development services, and training services including both classroom and work-based learning opportunities. In addition to supporting job seekers, these programs help businesses find the skilled workers they need by referring qualified job seekers and filling job orders, and through tailored work-based learning strategies.
According to the Department of Labor, workforce services for eligible adults are available through one of the six core programs authorized by WIOA. For instance, the WIOA Title I Adult and Dislocated Worker program funding streams pay for career services and training services. The Adult program serves individuals and helps employers meet their workforce needs. It enables workers to obtain good jobs by providing them with job search assistance and training opportunities. The Dislocated Worker program is designed to help workers get back to work as quickly as possible and overcome barriers to employment. Current law requires LWDBs to spend at least 30% of WIOA Adult and Dislocated Worker program funds on training services.
This bill, AB 1534, changes the requirement in existing law that at least 30% of WIOA Adult and Dislocated Worker program funds be spent on training services to a requirement that at least 50% of enrolled participants in WIOA Adult and Dislocated Worker programs receive training services, effective on July 1, 2028. According to the author, the current law requires 30% of funds to be spent on training, which has incentivized local boards to put fewer people into higher-cost trainings. Changing the rule to a requirement that 50% of WIOA participants receive training services is aimed to ensure that more individuals get training.
This bill still requires EDD to annually report whether the LWDBs met the participant training requirement and requires local workforce development areas that don’t meet the participant training requirement to submit a corrective action plan to EDD that provides reasons for not meeting the requirements and describes actions taken to address this.
The author may wish to consider adding additional data collection and reporting requirements, at a minimum, to ensure that WIOA expenditures are properly spent and accounted for, guaranteeing people receive both quality training and supportive services while enrolled in training.
2. Need for this bill?
According to the author, “Under the 2025 federal reconciliation bill, enacted as the One Big Beautiful Bill Act (OBBBA), “Workforce Pell Grants” were created to provide financial aid to students seeking to enroll in short-term workforce training programs. To satisfy OBBBA’s requirement for state governors to determine institutions seeking Workforce Pell meet certain criteria[1], legislation is required to align state policy with the implementation needs in OBBBA.
Currently proposed budget trailer bill language borrows much of the language from AB 1534 to set up an implementation process that meets minimum federal requirements set out in HR 1 and rulemaking[2]. However, states have the authority to go beyond minimum requirements to provide additional guardrails intended to safeguard students from bad actors.
AB 1534 includes additional safeguards for students while the proposed trailer bill will cover the state’s basic implementation structure. Safeguards will:
- Ban disbursing or marketing the availability of WF Pell funds unless the institution has received state and federal approvals.
- Prohibit WF Pell approval if an institution offers financing using private loans, including income share agreements, unless they charge 0% interest.
- Prohibit WF Pell approval if the program, when partnering with an unaccredited entity to provide instruction up to the allowable limit set out in federal rules, does not provide clear disclosures, does not use incentive compensation and does not exercise authority over program design and administration.
- Limit the cost of programs to no more than the maximum amount of a grant based on length of program, with an exception for excess costs that are covered by an employer or labor-management partnership, or similar third-party.
Additionally, on workforce development:
- Allow the California Student Aid Commission (CSAC) — the state entity authorized to approve programs in the proposed trailer bill — to use the California Priority Jobs Credential List to determine if a program meets several federal criteria required of all programs
- Changes the requirement in existing law that at least 30% of WIOA Adult and Dislocated Worker program funds be spent on training services to a requirement that at least 50% of enrolled participants in WIOA Adult and Dislocated Worker programs receive training services, effective 2028.”
3. Proponent Arguments:
According to the sponsors, The Institute for College Access and Success (TICAS), “As California develops a framework to approve shorter-term workforce training programs under the federal Workforce Pell Grant via the proposed Trailer Bill Language, AB 1534 (Irwin) provides important complementary safeguards for students and details on how California will determine which programs will qualify under the expansion. By establishing clear accountability standards and connections to increase access to education and training for WIOA participants, this bill helps ensure that expanded aid eligibility supports students going into affordable and high-quality programs that deliver value.”
4. Opponent Arguments:
According to 2U, “Specifically, as currently drafted, AB 1534 will severely limit California institutions’ abilities with private sector partners to develop, launch, and offer Workforce Pell (WFP) programs. And, without a sizable number of programs, AB 1534 will limit Californian’s options to benefit from WFP. Furthermore, AB 1534 establishes a concerning precedent limiting public-private partnerships, as well expanding the state’s regulatory authority over third parties supporting California institutes of higher education.”
5. Double Referral:
This bill has been double referred and was previously heard and passed by the Senate Education Committee.
6. Prior Legislation:
SB 135 (Committee on Budget and Fiscal Review, 2026) requires CSAC to determine whether a short-term program offered by postsecondary educational institution, as defined, meets specified requirements in order to receive federal Workforce Pell Grant program funds for students enrolled in the short-term program, as specified. Among other things, the bill requires CSAC to consult with CDWB and LWDA on the process for making those determinations and the short-term programs that the commission is proposing to approve, as specified. The bill would require EDD to provide a list of high-skill, high-wage, and in-demand industry sectors and occupations to LWDA, as specified. The bill would require the LWDA, after presenting the list to CWDB, to provide the list to CSAC for their consideration in determining whether to approve a short-term program. This bill is pending in the Assembly Budget Committee.
SUPPORT
The Institute for College Access & Success (Sponsor)
Blu Educational Foundation
California Competes: Higher Education for a Strong Economy
California Edge Coalition
California Opportunity Youth Network
Campaign for College Opportunity
Children Now
County of Kern
EdTrust-West
JobTrain
John Burton Advocates for Youth
Prismatic Research & Strategy
Protect Borrowers (formerly Student Borrower Protection Center)
Public Advocates
Rancho Santiago Community College District
San Bernardino Community College District
San Jose-Evergreen Community College District
Southern California College Attainment Network
The Century Foundation
Tipping Point Community
Tri County Chamber Alliance
UAspire
Unite-LA
Young Invincibles
OPPOSITION
2u, INC.
Allcampus Pb LLC
Coast Community College District
-- END --
Sec. 83002 of OBBBA details the program: https://www.congress.gov/bill/119th-congress/house-bill/1/text ↑
Final federal rules: https://www.federalregister.gov/documents/2026/05/19/2026-10013/accountability-in-higher-education-and-access-through-demand-driven-workforce-pell-pell-grant ↑
SENATE COMMITTEE ON EDUCATION
Senator Sasha Renée Pérez, Chair
2025 - 2026 Regular
Bill No: Hearing Date: June 24, 2026
Author: | |||
Version: |
| ||
Urgency: | No | Fiscal: | |
Consultant: | |||
Subject: Federal Workforce Pell Grant program: local workforce development boards: participant training requirement.
NOTE: This bill has been referred to the Committees on Education and Labor, Public Employment and Retirement. A “do pass” motion should include referral to the Committee on Labor, Public Employment and Retirement.
SUMMARY
This bill establishes state consumer protection standards for public postsecondary institutions seeking to participate in the federal Workforce Pell Grant program for short-term workforce training programs. It further modifies Workforce Innovation and Opportunity Act (WIOA) requirements by requiring local workforce development boards to ensure that at least 50 percent of participants receive workforce training services beginning in 2028.
BACKGROUND
Existing federal law:
1) Establishes the federal Pell Grant to provide aid to students who demonstrate financial need. The Pell Grant award can be used for tuition and fees, books, and supplies, transportation, and living expenses for the equivalent of up to six years of full-time enrollment. The maximum Pell Grant for the 2025-26 academic year (which covers the period from July 1, 2025 – June 30, 2026) is $7,395. The minimum Pell Grant award for the same time frame is $740. (United States Code (USC) Title 20 § 1070)
2) Establishes the federal Workforce Pell Grant program (via H.R. 1, Public Law 119-21), beginning July 1, 2026, to provide federal Pell Grant funding for eligible students enrolled in short-term workforce training programs aligned with high-skill, high-wage, or in-demand industries.
Existing state law:
1) Establishes the Donahoe Higher Education Act, setting forth the mission of the University of California (UC), the California State University (CSU), and the California Community Colleges (CCC); and, defines “independent institutions of higher education” as nonpublic higher education institutions that grant undergraduate degrees, graduate degrees, or both, and that are formed as nonprofit corporations in California and are accredited by an agency recognized by the United States Department of Education (USDE). Specifies that for purposes of any code or statute, a national or regional accrediting agency recognized by the USDE as of January 1, 2025, shall retain that recognition until July 1, 2029, provided that the accrediting agency continues to operate in substantially the same manner as it did on January 1, 2025. (Education Code (EC) § 66010, et seq.)
2) Establishes California Student Aid Commission (CSAC) as the state agency charged with administering state financial aid programs to qualifying students enrolled in qualifying institutions of higher education throughout the State. Existing law requires CSAC to prescribe the use of standardized student financial aid applications for California. (EC § 69433 and § 69510, et seq.)
3) Establishes the Labor and Workforce Development Agency to coordinate workforce development programs and support workforce policy in California. (Government Code § 15550, et seq.)
ANALYSIS
This bill:
- Prohibits a public postsecondary educational institution from disbursing Workforce Pell Grant program funds to students enrolled in the institution’s short-term programs, and from advertising, marketing, or informing students about the availability of those funds, unless the institution has met both of the following:
- Obtained authorization from CSAC, on behalf of the Governor, as
prescribed.
- Obtain approvals and meet all federal requirements.
- Prohibits CSAC from authorizing public postsecondary educational institutions to receive Workforce Pell Grant program funds for a short program if it does any of the following:
- Partners, contracts, or affiliates with an entity, including an institution or
organization, that is not accredited by an accrediting agency recognized and approved by the USDE to provide, or offer to provide, instruction for the short-term program, unless one of the following applies:
- The institution partners, contracts, or affiliates with the entity for the
purpose of offering instruction for a registered apprenticeship program.
- The short-term program has a contract education agreement with a
participating community college that meet the specified
requirements.
- The entity and institution disclose that the entity is a company that
is separate from the institution and describes all of the services that the entity is contracted to provide for the institutions in the manner specified.
- The entity is not paid using incentive compensation or tuition
sharing with the institution.
- The entity does not participate in, or exercise authority over, the
institution’s governance or decision-making process on factors
including the design or development of core curriculum or
instruction, admission standards, determining enrollment targets, or
creation of new short-term programs.
- Offers or affiliates with a company that offers financing for the short-term
program using a private educational loan, including the specified types of
financing.
- Charges tuition and fees to a student for the short-term program that is
more than the maximum amount of Workforce Pell Grant programs funds available for a student in the short-term program. The prohibition does not apply if the portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount is paid on behalf of the student by the specified third parties.
California Priority Jobs Credentials List
- Authorizes CSAC to use the California Priority Jobs Credentials List to determine whether a short-term program satisfies the following requirement:
- Provides an education aligned with the requirements of high-skill, high-
wage, or in-demand industry sectors or occupations.
- Meets the hiring requirements of employers in high-skill, high-wage, or in-
demand industry sectors or occupations.
- Leads to a recognized postsecondary credential that is stackable and
portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards the credential upon completion.
- Authorizes the Labor and Workforce Development Agency to enter into a data-sharing agreement with the Office of Cradle to Career Data to the extent it is necessary to establish and maintain the California Priority Jobs Credential List.
- Modifies WIOA Adult and Dislocated Worker program provisions by changing the requirement for at least 30 percent of funds to be spent on training services to at least 50 percent of enrolled participants receiving training services, effective 2028.
- Makes other conforming and technical changes.
- State various findings and declarations related to the federal Workforce Pell Grant program and workforce training opportunities.
- States that it is the Legislature’s intent to expand access to high-quality workforce training opportunities by defining standards for short-term programs to be eligible for the federal Workforce Pell Grant program and requiring an increase in participants that receive workforce training services under the federal WIOA program.
STAFF COMMENTS
- Need for the bill. According to the author, “Californians looking to gain new skills or advance in their careers by enrolling in short-term workforce training programs may be eligible for new financial assistance. The federal government is set to begin rolling out Workforce Pell Grants for eligible Californians seeking to enroll in short-term programs lasting eight to 15 weeks. These programs will lead to industry-recognized credentials in sectors like healthcare, IT and skilled trades, and will train participants for high-wage and in-demand jobs.
“As states prepare to implement this historic expansion of aid, proper safeguards are necessary to ensure these programs deliver real opportunities for students and their families and prevent them from wasting their lifetime-limited Pell Grant eligibility. AB 1534 includes important consumer protection measures that protect students from risky private loans and require programs to charge reasonable costs and fully disclose partnerships with unaccredited organizations.”
- Federal Workforce Pell program. The Congress enacted H.R. 1, in the Summer of 2025. Among the many provisions contained in the measure is a section that expands Pell Grant eligibility to students enrolled in short-term, career-focused training programs that meet defined quality requirements and lead to industry-recognized credentials. The workforce training programs tend to be between 8 and 14 weeks in length and are intended to provide rapid pathways to employment in high-demand industries. This expansion is commonly referred to as “Short-Term Pell” or “Workforce Pell.”
According to the National Governors Association and America Achieves, in their Workforce Pell: An Overview for Governors March 2026 policy memo, “the Congressional Budget Office estimates that over the next ten years, the federal government will invest approximately $1.5 billion in Workforce Pell Grants of about $2,200 per recipient, although awards will vary as they are prorated based on program length and student need. However, research on such short-term programs demonstrates that while some programs deliver strong labor market returns, many do not. This new funding stream represents an opportunity for Governors to drive resources to the strongest programs to address critical workforce development needs and better align postsecondary training to high-skill, high-wage, and in-demand jobs through their implementation decisions.”
The Workforce Pell goes into effect on July 1, 2026, the USDE proposed regulations in March 2026, and is expected to finalize regulations later this Spring. Presently, the draft regulations leave Governors with considerable leeway in the details of implementation.
- Workforce Pell and existing state financial aid programs. As mentioned, Workforce Pell is designed to support short-term workforce training programs that may be completed in as little as eight weeks and can be up to 15 weeks in duration. California’s primary state financial aid programs under Cal Grant generally support students enrolled in degree and longer-term certificate programs. Specifically, Cal Grant C supports occupational and technical training programs that are at least four months in length. To that end, Workforce Pell is filling a gap in student aid not covered under the Cal Grant program. This bill establishes additional state participation standards for Workforce Pell but does not modify eligibility for existing state financial aid programs.
- Consumer protection measures. This bill aims to create state-level consumer protection standards intended to protect Workforce Pell recipients enrolling in short-term programs. The proposed requirements are applicable to UC, CSU, and CCCs seeking to participate in the Workforce Pell program. Among other provisions, the bill restricts tuition and fee levels, limits the use of certain private financial arrangements, establishes conditions governing third-party partnerships, and requires participating programs to demonstrate alignment with workforce needs. Specifically, this measure prohibits institutions from charging tuition and fees that exceed the maximum available Workforce Pell award, unless the excess amount is paid by an employer, labor-management partnership, or another third-party that does not require repayment by the student. It also prohibits participation by institutions that offer or affiliate with providers of private education loans, income share agreements, or similar credit products. The bill would also require CSAC to deny authorization to institutions that do not satisfy specified requirements. The proponents of this measure argue that restricting tuition levels limits reliance on private educational loans and income share agreements, and that imposing requirements for third-party partnerships and alignment with workforce needs helps ensure students are participating in quality programs that will lead to meaningful employment opportunities related to their field of study/training.
- Third-Party providers and tuition-sharing arrangements. This bill further prohibits UC, CSU, and CCCs from receiving authorization to participate in the Workforce Pell if it compensates a third-party provider through tuition sharing or incentive compensation arrangements. The sponsors of the bill argue that these compensation models may create incentives to prioritize enrollment growth over student outcomes and can blur the lines between public institutions and for-profit education providers. Proponents point to recent disputes involving online program manager (OPM) partnerships with public and private institutions, including the University of Southern California and 2U, and Caltech and Simplilearn, and a 2023 State Auditor review of UC’s use of OPMs as issues that may arise from these types of partnerships. The UC audit identified 52 UC contracts with OPMs in effect at that time, none of which involved undergraduate programs. Of those contracts, 30 were with five UC campuses, of which 15 pertained to continuing education provided through campus extension units. This bill does not prohibit institutions from partnering with OPMs or other third-party providers. Rather, it restricts certain compensation arrangements and limits the role third-party entities may play in academic and institutional decision-making. Institutions may continue to contract with third-party providers if the partnership satisfies the bill’s specified conditions. This bill also preserves the institution’s responsibility for academic decision-making by prohibiting third-party entities from exercising authority over curriculum development, admissions standards, enrollment targets, or the creation of new short-term programs.
- Related budget activity. Trailer bill language to the 2026-27 Budget Act includes a proposal related to implementation of the federal Workforce Pell Grant program. The proposal would establish a process for CSAC, in consultation with the California Workforce Development Board, to determine whether short-term programs offered by UC, CSU, and CCCs meet federal and state eligibility requirements for participation in Workforce Pell. The proposal would also require participating institutions to report program and student outcome data and would establish various oversight and reporting requirements.
This bill attempts to address the same federal Workforce Pell Grant programs but would establish additional requirements related to institutional participation, student protections, and certain contractual and financial arrangements. Committee staff understands, and at the time this analysis was drafted, that conversations around trailer bill language are still ongoing. As currently drafted, both the budget proposal and this bill apply only to programs offered by the CCCs, CSU, and UCs. With regard to CSAC responsibilities, this bill would not create a separate approval process but instead would establish additional standards and conditions that CSAC would be required to apply when making authorization determinations.
SUPPORT
The Institute for College Access & Success (sponsor)
California Competes: Higher Education for a Strong Economy
Campaign for College Opportunity
Children Now
EdTrust-West
San Jose-Evergreen Community College District
OPPOSITION
None received
-- END --
SENATE COMMITTEE ON EDUCATION
Senator Sasha Renée Pérez, Chair
2025 - 2026 Regular
Bill No: Hearing Date: June 24, 2026
Author: | |||
Version: |
| ||
Urgency: | Fiscal: | ||
Consultant: | |||
Subject: Federal Workforce Pell Grant program: local workforce development boards: participant training requirement.
NOTE: This bill has been referred to the Committees on Education and Labor, Public Employment and Retirement. A “do pass” motion should include referral to the Committee on Labor, Public Employment and Retirement.
SUMMARY
This bill, an urgency measure, establishes state consumer protection standards for public postsecondary institutions seeking to participate in the federal Workforce Pell Grant program for short-term workforce training programs. It further modifies Workforce Innovation and Opportunity Act (WIOA) requirements by requiring local workforce development boards to ensure that at least 50 percent of participants receive workforce training services beginning in 2028.
BACKGROUND
Existing federal law:
1) Establishes the federal Pell Grant to provide aid to students who demonstrate financial need. The Pell Grant award can be used for tuition and fees, books, and supplies, transportation, and living expenses for the equivalent of up to six years of full-time enrollment. The maximum Pell Grant for the 2025-26 academic year (which covers the period from July 1, 2025 – June 30, 2026) is $7,395. The minimum Pell Grant award for the same time frame is $740. (United States Code (USC) Title 20 § 1070)
2) Establishes the federal Workforce Pell Grant program (via H.R. 1, Public Law 119-21), beginning July 1, 2026, to provide federal Pell Grant funding for eligible students enrolled in short-term workforce training programs aligned with high-skill, high-wage, or in-demand industries.
Existing state law:
1) Establishes the Donahoe Higher Education Act, setting forth the mission of the University of California (UC), the California State University (CSU), and the California Community Colleges (CCC); and, defines “independent institutions of higher education” as nonpublic higher education institutions that grant undergraduate degrees, graduate degrees, or both, and that are formed as nonprofit corporations in California and are accredited by an agency recognized by the United States Department of Education (USDE). Specifies that for purposes of any code or statute, a national or regional accrediting agency recognized by the USDE as of January 1, 2025, shall retain that recognition until July 1, 2029, provided that the accrediting agency continues to operate in substantially the same manner as it did on January 1, 2025. (Education Code (EC) § 66010, et seq.)
2) Establishes California Student Aid Commission (CSAC) as the state agency charged with administering state financial aid programs to qualifying students enrolled in qualifying institutions of higher education throughout the State. Existing law requires CSAC to prescribe the use of standardized student financial aid applications for California. (EC § 69433 and § 69510, et seq.)
3) Establishes the Labor and Workforce Development Agency to coordinate workforce development programs and support workforce policy in California. (Government Code § 15550, et seq.)
ANALYSIS
This bill:
- Prohibits a public postsecondary educational institution from disbursing Workforce Pell Grant program funds to students enrolled in the institution’s short-term programs, and from advertising, marketing, or informing students about the availability of those funds, unless the institution has met both of the following:
- Obtained authorization from CSAC, on behalf of the Governor, as
prescribed.
- Obtain approvals and meet all federal requirements.
- Prohibits CSAC from authorizing public postsecondary educational institutions to receive Workforce Pell Grant program funds for a short program if it does any of the following:
- Partners, contracts, or affiliates with an entity, including an institution or
organization, that is not accredited by an accrediting agency recognized and approved by the USDE to provide, or offer to provide, instruction for the short-term program, unless one of the following applies:
- The institution partners, contracts, or affiliates with the entity for the
purpose of offering instruction for a registered apprenticeship program.
- The short-term program has a contract education agreement with a
participating community college that meet the specified
requirements.
- The entity and institution disclose that the entity is a company that
is separate from the institution and describes all of the services that the entity is contracted to provide for the institutions in the manner specified.
- The entity is not paid using incentive compensation or tuition
sharing with the institution.
- The entity does not participate in, or exercise authority over, the
institution’s governance or decision-making process on factors
including the design or development of core curriculum or
instruction, admission standards, determining enrollment targets, or
creation of new short-term programs.
- Offers or affiliates with a company that offers financing for the short-term
program using a private educational loan, including the specified types of
financing.
- Charges tuition and fees to a student for the short-term program that is
more than the maximum amount of Workforce Pell Grant programs funds available for a student in the short-term program. The prohibition does not apply if the portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount is paid on behalf of the student by the specified third parties.
California Priority Jobs Credentials List
- Authorizes CSAC to use the California Priority Jobs Credentials List to determine whether a short-term program satisfies the following requirement:
- Provides an education aligned with the requirements of high-skill, high-
wage, or in-demand industry sectors or occupations.
- Meets the hiring requirements of employers in high-skill, high-wage, or in-
demand industry sectors or occupations.
- Leads to a recognized postsecondary credential that is stackable and
portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards the credential upon completion.
- Authorizes the Labor and Workforce Development Agency to enter into a data-sharing agreement with the Office of Cradle to Career Data to the extent it is necessary to establish and maintain the California Priority Jobs Credential List.
- Modifies WIOA Adult and Dislocated Worker program provisions by changing the requirement for at least 30 percent of funds to be spent on training services to at least 50 percent of enrolled participants receiving training services, effective 2028.
- Makes other conforming and technical changes.
- State various findings and declarations related to the federal Workforce Pell Grant program and workforce training opportunities.
- States that it is the Legislature’s intent to expand access to high-quality workforce training opportunities by defining standards for short-term programs to be eligible for the federal Workforce Pell Grant program and requiring an increase in participants that receive workforce training services under the federal WIOA program.
STAFF COMMENTS
- Need for the bill. According to the author, “Californians looking to gain new skills or advance in their careers by enrolling in short-term workforce training programs may be eligible for new financial assistance. The federal government is set to begin rolling out Workforce Pell Grants for eligible Californians seeking to enroll in short-term programs lasting eight to 15 weeks. These programs will lead to industry-recognized credentials in sectors like healthcare, IT and skilled trades, and will train participants for high-wage and in-demand jobs.
“As states prepare to implement this historic expansion of aid, proper safeguards are necessary to ensure these programs deliver real opportunities for students and their families and prevent them from wasting their lifetime-limited Pell Grant eligibility. AB 1534 includes important consumer protection measures that protect students from risky private loans and require programs to charge reasonable costs and fully disclose partnerships with unaccredited organizations.”
- Federal Workforce Pell program. The Congress enacted H.R. 1, in the Summer of 2025. Among the many provisions contained in the measure is a section that expands Pell Grant eligibility to students enrolled in short-term, career-focused training programs that meet defined quality requirements and lead to industry-recognized credentials. The workforce training programs tend to be between 8 and 14 weeks in length and are intended to provide rapid pathways to employment in high-demand industries. This expansion is commonly referred to as “Short-Term Pell” or “Workforce Pell.”
According to the National Governors Association and America Achieves, in their Workforce Pell: An Overview for Governors March 2026 policy memo, “the Congressional Budget Office estimates that over the next ten years, the federal government will invest approximately $1.5 billion in Workforce Pell Grants of about $2,200 per recipient, although awards will vary as they are prorated based on program length and student need. However, research on such short-term programs demonstrates that while some programs deliver strong labor market returns, many do not. This new funding stream represents an opportunity for Governors to drive resources to the strongest programs to address critical workforce development needs and better align postsecondary training to high-skill, high-wage, and in-demand jobs through their implementation decisions.”
The Workforce Pell goes into effect on July 1, 2026, the USDE proposed regulations in March 2026, and is expected to finalize regulations later this Spring. Presently, the draft regulations leave Governors with considerable leeway in the details of implementation.
- Workforce Pell and existing state financial aid programs. As mentioned, Workforce Pell is designed to support short-term workforce training programs that may be completed in as little as eight weeks and can be up to 15 weeks in duration. California’s primary state financial aid programs under Cal Grant generally support students enrolled in degree and longer-term certificate programs. Specifically, Cal Grant C supports occupational and technical training programs that are at least four months in length. To that end, Workforce Pell is filling a gap in student aid not covered under the Cal Grant program. This bill establishes additional state participation standards for Workforce Pell but does not modify eligibility for existing state financial aid programs.
- Consumer protection measures. This bill aims to create state-level consumer protection standards intended to protect Workforce Pell recipients enrolling in short-term programs. The proposed requirements are applicable to UC, CSU, and CCCs seeking to participate in the Workforce Pell program. Among other provisions, the bill restricts tuition and fee levels, limits the use of certain private financial arrangements, establishes conditions governing third-party partnerships, and requires participating programs to demonstrate alignment with workforce needs. Specifically, this measure prohibits institutions from charging tuition and fees that exceed the maximum available Workforce Pell award, unless the excess amount is paid by an employer, labor-management partnership, or another third-party that does not require repayment by the student. It also prohibits participation by institutions that offer or affiliate with providers of private education loans, income share agreements, or similar credit products. The bill would also require CSAC to deny authorization to institutions that do not satisfy specified requirements. The proponents of this measure argue that restricting tuition levels limits reliance on private educational loans and income share agreements, and that imposing requirements for third-party partnerships and alignment with workforce needs helps ensure students are participating in quality programs that will lead to meaningful employment opportunities related to their field of study/training.
- Third-Party providers and tuition-sharing arrangements. This bill further prohibits UC, CSU, and CCCs from receiving authorization to participate in the Workforce Pell if it compensates a third-party provider through tuition sharing or incentive compensation arrangements. The sponsors of the bill argue that these compensation models may create incentives to prioritize enrollment growth over student outcomes and can blur the lines between public institutions and for-profit education providers. Proponents point to recent disputes involving online program manager (OPM) partnerships with public and private institutions, including the University of Southern California and 2U, and Caltech and Simplilearn, and a 2023 State Auditor review of UC’s use of OPMs as issues that may arise from these types of partnerships. The UC audit identified 52 UC contracts with OPMs in effect at that time, none of which involved undergraduate programs. Of those contracts, 30 were with five UC campuses, of which 15 pertained to continuing education provided through campus extension units. This bill does not prohibit institutions from partnering with OPMs or other third-party providers. Rather, it restricts certain compensation arrangements and limits the role third-party entities may play in academic and institutional decision-making. Institutions may continue to contract with third-party providers if the partnership satisfies the bill’s specified conditions. This bill also preserves the institution’s responsibility for academic decision-making by prohibiting third-party entities from exercising authority over curriculum development, admissions standards, enrollment targets, or the creation of new short-term programs.
- Related budget activity. Trailer bill language to the 2026-27 Budget Act includes a proposal related to implementation of the federal Workforce Pell Grant program. The proposal would establish a process for CSAC, in consultation with the California Workforce Development Board, to determine whether short-term programs offered by UC, CSU, and CCCs meet federal and state eligibility requirements for participation in Workforce Pell. The proposal would also require participating institutions to report program and student outcome data and would establish various oversight and reporting requirements.
This bill attempts to address the same federal Workforce Pell Grant programs but would establish additional requirements related to institutional participation, student protections, and certain contractual and financial arrangements. Committee staff understands, and at the time this analysis was drafted, that conversations around trailer bill language are still ongoing. As currently drafted, both the budget proposal and this bill apply only to programs offered by the CCCs, CSU, and UCs. With regard to CSAC responsibilities, this bill would not create a separate approval process but instead would establish additional standards and conditions that CSAC would be required to apply when making authorization determinations.
SUPPORT
The Institute for College Access & Success (sponsor)
California Competes: Higher Education for a Strong Economy
Campaign for College Opportunity
Children Now
EdTrust-West
San Jose-Evergreen Community College District
OPPOSITION
None received
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 1534
Author:(Irwin)
As Amended Ver:March 19, 2026
2/3 vote
SUMMARY
Establishes a state approval and oversight process for California postsecondary institutions seeking to participate in the federal Workforce Pell Grant program
Major Provisions
- Prohibits a campus of the University of California (UC), the California State University (CSU), the California Community Colleges (CCC), a private postsecondary educational institution, or an independent institution of higher education receiving state financial assistance from disbursing federal Workforce Pell Grant funds or advertising their availability unless the institution has:
- Obtained authorization from the Governor; and,
- Received all required approvals and met all requirements established by the United States Department of Education (USDE).
- Requires institutions seeking approval for a short-term program to submit documentation demonstrating that the program meets federal Workforce Pell Grant requirements, including alignment with high-skill, high-wage, or in-demand occupations.
- Requires institutions to certify, under penalty of perjury, that the program meets specified outcomes, including:
- A completion rate of at least 70%; and,
- A job placement rate of at least 70% within 180 days of completion.
- Requires postsecondary educational institutions to provide program-level and student-level data related to enrollment, costs, completion, and employment outcomes.
- Prohibits authorization for programs unless additional conditions are met, including accreditation requirements, credit-bearing instruction, and program operation for at least one year prior to approval.
- Prohibits institutions from:
- Contracting with unaccredited instructional providers;
- Offering certain private financing arrangements, including income share agreements; and,
- Charging tuition exceeding the maximum Workforce Pell Grant amount.
- Establishes the California Workforce Pell Grant Advisory Board to provide guidance on program approval, data collection, and student protections. Stipulates that the advisory board must consist of all of the following:
- A representative from the Labor and Workforce Development Agency;
- A representative from the California Workforce Development Board;
- A representative from the Employment Training Panel;
- A representative from the Employment Development Department;
- A representative from the Division of Apprenticeship Standards;
- The UC President;
- The CSU Chancellor;
- The CCC Chancellor;
- A representative from the California Student Aid Commission (CSAC);
- A representative from the Bureau for Private Postsecondary Education;
- A representative from the Association of Independent California Colleges and Universities;
- A representative from the State Department of Education;
- A representative from the California Health and Human Services Agency;
- A representative from the Governor's Office of Business and Economic Development;
- A representative from the Office of Cradle-to-Career Data;
- Industry leaders;
- Nonprofit leaders; and,
- Other representatives designated by the Governor.
- Authorizes the state to enter into data-sharing agreements with the Labor and Workforce Development Agency to evaluate employment outcomes.
- Requires institutions to protect confidential student data submitted under the program.
- Authorizes the Labor and Workforce Development Agency to adopt rules and regulations necessary to implement the program.
- Defines the following for purposes of this measure:
- "Advisory board" means the California Workforce Pell Grant Advisory Board;
- "Postsecondary educational institution" means a campus of the UC, CSU, or the CCC, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance;
- "Short-term program" means an educational program offered by a postsecondary educational institution that includes 150 to 599 inclusive hours of instruction, or an equivalent number of credit hours, over 8 to 14 weeks, inclusive; and,
- "Workforce Pell Grant program" means the federal program established pursuant H.R. 1 (Public Law 119-21), under which federal Workforce Pell Grants may be awarded to students enrolled in a short-term program at a postsecondary educational institution.
COMMENTS
Urgency clause. The Workforce Pell goes into effect on July 1, 2026, the USDE released proposed regulations in April of 2026, and is expected to finalize regulations later this Spring. In order for California to have its students benefit from the Workforce Pell, this measure contains an urgency clause.
Workforce Pell. The Congress enacted H.R. 1, in the Summer of 2025. Among the many provisions contained in the measure is a section that expands Pell Grant eligibility to students enrolled in short-term, career-focused training programs that meet defined quality requirements and lead to industry-recognized credentials. The workforce training programs tend to be between 8 and 14 weeks in length and are intended to provide rapid pathways to employment in high-demand industries. This expansion is commonly referred to as "Short-Term Pell" or "Workforce Pell."
According to the National Governors Association and America Achieves, in their Workforce Pell: An Overview for Governors March 2026 policy memo, "the Congressional Budget Office estimates that over the next ten years, the federal government will invest approximately $1.5 billion in Workforce Pell Grants of about $2,200 per recipient, although awards will vary as they are prorated based on program length and student need. However, research on such short-term programs demonstrates that while some programs deliver strong labor market returns, many do not. This new funding stream represents an opportunity for Governors to drive resources to the strongest programs to address critical workforce development needs and better align postsecondary training to high-skill, high-wage, and in-demand jobs through their implementation decisions."
The Workforce Pell goes into effect on July 1, 2026, the USDE proposed regulations in March 2026, and is expected to finalize regulations later this Spring. Presently, the draft regulations leave Governors with considerable leeway in the details of implementation.
This measure seeks to establish a state-level approval process for institutions seeking to offer programs eligible for these funds.
Program accountability. This measure requires participating institutions to demonstrate measurable outcomes, including minimum completion and job placement rates. Institutions must also provide program and student-level data to enable the state to evaluate program performance and workforce outcomes.
Consumer protection provisions. This measure contains several provisions intended to protect students, including restrictions on tuition levels, limitations on private financing arrangements, and requirements that programs be offered through accredited institutions using credit-bearing coursework.
Advisory board. This measure establishes the California Workforce Pell Grant Advisory Board, composed of representatives from higher education systems, workforce agencies, and industry stakeholders. The advisory board is tasked with providing recommendations related to program approval, data reporting, and student transition policies.
Data collection and workforce alignment. This measure authorizes data sharing between the designated state entity and the California Labor and Workforce Development Agency to evaluate employment outcomes, including occupation, industry, and earnings data. These data are intended to inform program oversight and workforce development policy.
Student privacy. Provisions are included in this measure to protect confidential student information submitted to the state and requires institutions to designate such information accordingly. Legislative findings note that protecting student privacy is necessary to support program administration while safeguarding sensitive information.
According to the Author
According to the author, "Californians looking to gain new skills or advance in their careers by enrolling in short-term workforce training programs may be eligible for new financial assistance. Starting in July [2026], the federal government is set to begin rolling out Workforce Pell Grants for eligible Californians seeking to enroll in short-term programs lasting eight to 15 weeks. These programs will lead to industry-recognized credentials in sectors like healthcare, IT and skilled trades, and will train participants for high-wage and in-demands jobs."
The author contends that, "while Pell Grant assistance has historically been limited to students seeking an undergraduate degree, these new grants will be available for entry-level to mid-career adults wishing to upskill and move up in their careers. Legislation is necessary for the state to create an approval process to ensure only the highest quality programs are offered to prospective students. This ensures students use their limited Pell Grant eligibility on programs that deliver real opportunities for them and their families, and prevent them from wasting resources on unproductive or fraudulent programs."
Lastly, the author states that, "this type of investment in our workforce will strengthen California's economy by ensuring workers have the skills to meet the demands of employers, and businesses can continue to evolve in a 21st century market."
Arguments in Support
According to the Century Foundation (TCF), "AB 1524 establishes a framework for California to implement the expansion of federal Pell Grant eligibility to short-term workforce training programs. The expansion of Pell Grants to short-term workforce programs has the potential to create meaningful new opportunities for students to pursue job training, but it also poses significant risks."
Further, TCF states that, "short-term workforce programs include programs offered by for-profit providers, and have a mixed track record when it comes to student outcomes. While some programs lead to positive outcomes, others fail to provide upward economic mobility and even worse, may leave students with debt. In addition, Workforce Pell programs count toward students' limited Pell Grant eligibility, and students are at risk of using this eligibility for low-quality, expensive, or even fraudulent programs. As a result, it is critical that California establish strong safeguards that protect both students and public investment in the program. AB 1534 does just that."
Lastly, according to TCF, "the bill includes important student protections, including a provision that will help ensure that program instruction is provided by accredited institutions, rather than outsourced to unaccredited providers. The bill also prohibits participating programs from charging tuition and fees above the maximum amount of Workforce Pell Grant funds available and prohibits institutions from entering into arrangements with private lenders to offer loans to students. These provisions will help to protect students from taking on debt while also helping to ensure that these programs remain affordable. California remains a national leader in expanding college access while maintaining strong consumer protections for students. AB 1534 lays the groundwork for an approach to Workforce Pell that would prioritize quality, affordability, and protecting students from taking on risky debts."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Committee on Appropriations:
- One-time Proposition 98 General Fund costs of approximately $20 million to $40 million, roughly $15 million of which would be ongoing annual costs, for community college districts (CCDs), collectively statewide, establish the necessary infrastructure to participate in the Workforce Pell Grant program.
There are 72 CCDs and this estimate assumes an average one-time cost of $276,000 to $513,000 per CCD.
- One-time General Fund costs of an unknown amount, at least in the tens of thousands of dollars, for the California Community Colleges Chancellor's Office (CCCCO) to develop systemwide procedures, update information management systems for required reporting, and provide technical assistance.
- The CCCCO also indicates ongoing General Fund costs between $100,000 and $250,000 annually to continue to provide technical assistance, coordinate with the Governor's Office and Labor and Workforce Development (LWDA) and manage data-sharing processes.
- Ongoing General Fund costs of approximately $1.3 million annually for the California Cradle-to-Career Data System to hire additional staff and expand capacity for data collection and matching to perform the calculation of return on investment of specific training and education programs.
- One-time General Fund costs of $167,000 and $100,000 ongoing annually for the California Workforce Development Board to support implementation of the bill.
- Ongoing General Fund costs in the tens of thousands of dollars annually for the Employment Training panel to support implementation of the bill.
The Legislative Analyst's Office recently warned of General Fund structural deficits of around $35 billion per year in the 2027-28 fiscal year and ongoing.
VOTES
ASM HIGHER EDUCATION: 8-2-0
YES: Fong, Boerner, Jeff Gonzalez, Jackson, Kalra, Muratsuchi, Patel, Sharp-Collins
NO: DeMaio, Tangipa
ASM LABOR AND EMPLOYMENT: 7-0-0
YES: Ortega, Alanis, Chen, Elhawary, Kalra, Lee, Ward
ASM APPROPRIATIONS: 12-1-2
YES: Wicks, Hoover, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache
NO: Dixon
ABS, ABST OR NV: Ta, Tangipa
UPDATED
VERSION: March 19, 2026
CONSULTANT: Jeanice Warden / HIGHER ED. / (916) 319-3960 FN: 0003020
Date of Hearing: May 6, 2026
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 1534
Author:(Irwin) – As Amended Ver:March 19, 2026
Policy Committee: | Higher Education | Vote: | 8 - 2 |
Labor and Employment | 7 - 0 | ||
|
|
Urgency: Yes State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill prohibits a postsecondary educational institution offering short-term programs from disbursing federal Workforce Pell Grant program funds to students unless the institution receives authorization from the Governor and necessary approvals by the United States Department of Education (USDE). The bill also establishes the California Workforce Pell Grant Advisory Board to review short-term programs potentially eligible for Workforce Pell Grant funds and make recommendations to postsecondary educational institutions, or the Governor, regarding necessary processes and policies for programs deemed ineligible for funds.
FISCAL EFFECT:
- One-time Proposition 98 General Fund costs of approximately $20 million to $40 million, roughly $15 million of which would be ongoing annual costs, for community college districts (CCDs), collectively statewide, establish the necessary infrastructure to participate in the Workforce Pell Grant program.
There are 72 CCDs and this estimate assumes an average one-time cost of $276,000 to $513,000 per CCD.
- One-time General Fund costs of an unknown amount, at least in the tens of thousands of dollars, for the California Community Colleges Chancellor’s Office (CCCCO) to develop systemwide procedures, update information management systems for required reporting, and provide technical assistance.
The CCCCO also indicates ongoing General Fund costs between $100,000 and $250,000 annually to continue to provide technical assistance, coordinate with the Governor’s Office and Labor and Workforce Development (LWDA) and manage data-sharing processes.
- Ongoing General Fund costs of approximately $1.3 million annually for the California Cradle-to-Career Data System to hire additional staff and expand capacity for data collection and matching to perform the calculation of return on investment of specific training and education programs.
- One-time General Fund costs of $167,000 and $100,000 ongoing annually for the California Workforce Development Board to support implementation of the bill.
- Ongoing General Fund costs in the tens of thousands of dollars annually for the Employment Training panel to support implementation of the bill.
The Legislative Analyst’s Office recently warned of General Fund structural deficits of around $35 billion per year in the 2027-28 fiscal year and ongoing.
COMMENTS:
Given the recent enactment of H.R. 1 by Congress, the federal government will begin implementing the Workforce Pell Grant program on July 1, 2026, to provide financial assistance to students enrolling in short-term programs lasting eight to 15 weeks at eligible postsecondary educational institutions. The USDE proposed draft regulations in March 2026 and leave considerable discretion to participating states. Therefore, according to the author:
While Pell Grant assistance has historically been limited to students seeking an undergraduate degree, these new grants will be available for entry-level to mid-career adults wishing to upskill and move up in their careers. Legislation is necessary for the state to create an approval process to ensure only the highest quality programs are offered to prospective students.
This bill, as an urgency measure, proposes several consumer protection provisions to protect participating students and their privacy, establishes an advisory board comprised of representatives from California’s higher education system, workforce agencies, and industry to make recommendations regarding program approval and oversight, and requires data sharing to facilitate evaluation of student outcomes and workforce benefit.
Analysis Prepared by: Aaron Heredia / APPR. / (916) 319-2081
Date of Hearing: April 22, 2026
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Liz Ortega, Chair
ABPCA Bill Id:AB 1534 (
Author:Irwin) – As Amended Ver:March 19, 2026
SUBJECT: Student financial aid: federal Workforce Pell Grant program
SUMMARY: Establishes a state approval and oversight process for California postsecondary educational institutions seeking to participate in the federal Workforce Pell Grant program. Specifically, this bill:
- Prohibits a postsecondary educational institution, with or without a physical presence in the state, from disbursing federal Workforce Pell Grant program funds or advertising their availability to students unless the institution has:
- Obtained authorization from the Governor; and,
- Received all required approvals and met all requirements established by the United States Department of Education (USDE).
- Requires the Governor to determine whether a postsecondary educational institution’s short-term program meets the requirements established pursuant to this measure, and authorizes the Governor to consult with relevant entities to make that determination.
- Requires a postsecondary educational institution seeking approval for a short-term program to provide specified documentation to the Governor, including:
- Documentation demonstrating that the program meets specified requirements, including alignment with high-skill, high-wage, or in-demand occupations, as specified, as well as leads to a recognized postsecondary credential that is stackable and portable.
- Certification that the program meets all of the following:
- A completion rate of at least 70 percent within 150 percent of the normal time for completion of the program; and
- A job placement rate of at least 70 percent within 180 days of completion.
- For the 12 months preceding the date that the institution applied for approval, the institution offered the short-term program and it met the requirements in (3)(a) above.
- Program-level and student-level data related to enrollment, costs, completion, and employment outcomes, and any other data requested by the Governor related to the short-term program.
- Prohibits the Governor from authorizing a postsecondary educational institution to receive Workforce Pell Grant program funds unless additional conditions are met, including:
- The Governor determines that the short-term program meets the federal Workforce Pell Grant program requirements.
- The Governor has consulted with the Labor and Workforce Development Agency (LWDA) and the advisory board.
- The postsecondary educational institution has met the requirements of (3) above.
- The postsecondary educational institution does not do any of the following:
- Partner, affiliate, contract, or use any institution, company, or service provider to offer instruction for the short-term program that is not accredited by an accrediting agency recognized and approved by the USDE.
- Offer or affiliate with any company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.
- Charge tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant funds available for a student in the short-term program, as specified.
- The postsecondary educational institution is accredited by an accrediting agency recognized and approved by the USDE and that reviews and provides approval for short-term programs.
- The short-term program is offered using only credit-bearing courses that are reviewed by the postsecondary educational institution’s accrediting agency.
- Requires the Governor to revoke the approval of a postsecondary educational institution related to the Workforce Pell Grant program if it fails to annually meet the requirements of (3) above, or if there is a court determination that the institution engaged in unlawful, unfair, or fraudulent business acts or practices.
- Authorizes the Governor to enter into data-sharing agreements with the LWDA to evaluate employment outcomes.
- Establishes the California Workforce Pell Grant Advisory Board to provide guidance on program approval, data collection, and student protections. Provides that the advisory board must consist of all of the following:
- A representative from the LWDA;
- A representative from the California Workforce Development Board;
- A representative from the Employment Training Panel;
- A representative from the Employment Development Department;
- A representative from the Division of Apprenticeship Standards (DAS);
- The University of California (UC) President;
- The California State University (CSU) Chancellor;
- The California Community Colleges (CCC) Chancellor;
- A representative from the Student Aid Commission (CSAC);
- A representative from the Bureau for Private Postsecondary Education;
- A representative from the Association of Independent California Colleges and Universities;
- A representative from the State Department of Education;
- A representative from the California Health and Human Services Agency;
- A representative from the Governor’s Office of Business and Economic Development;
- A representative from the Office of Cradle-to-Career Data;
- Industry leaders;
- Nonprofit leaders; and,
- Other representatives designated by the Governor.
- Requires postsecondary educations institutions to protect confidential student data submitted under the program, as specified.
- Authorizes the LWDA to adopt rules and regulations necessary to implement the program.
- Adds an urgency clause and provides that the measure takes effect on July 1, 2026.
- Defines the following for purposes of this measure:
- “Advisory board” to mean the California Workforce Pell Grant Advisory Board.
- “Postsecondary educational institution” to mean a campus of the UC, the CSU, the CCC, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance.
- “Short-term program” to mean an educational program offered by a postsecondary educational institution that includes 150 to 599 inclusive hours of instruction, or an equivalent number of credit hours, over 8 to 14 weeks, inclusive.
- “Workforce Pell Grant program” to mean the federal program established pursuant HR 1 (Public Law 119-21), under which federal Workforce Pell Grants may be awarded to students enrolled in a short-term program at a postsecondary educational institution.
EXISTING FEDERAL LAW:
- Establishes the federal Pell Grant to provide aid to students who demonstrate financial need and authorizes the Pell Grant award to be used for tuition and fees, books, and supplies, transportation, and living expenses for the equivalent of up to six years of full-time enrollment. 20 U.S.C. § 1070(a) et seq.
- Establishes the federal Workforce Pell Grant program, beginning July 1, 2026, to provide federal Pell Grant funding for eligible students enrolled in short-term workforce training programs aligned with high-skill, high-wage, or in-demand industries. 20 U.S.C. § 1070(k).
EXISTING STATE LAW:
- Establishes the LWDA to coordinate workforce development programs and support workforce policy in California. Government Code § 15550 et seq.
- Establishes the Donahoe Higher Education Act, setting forth the mission of the UC, CSU, and CCC; defines "independent institutions of higher education" to mean nonpublic higher education institutions that grant undergraduate degrees, graduate degrees, or both, and that are formed as nonprofit corporations in California and are accredited by an agency recognized by the USDE. Specifies that, for purposes of any code or statute, a national or regional accrediting agency recognized by the USDE as of January 1, 2025, shall retain that recognition until July 1, 2029, provided that the accrediting agency continues to operate in substantially the same manner as it did on January 1, 2025. Education Code § 66010 et seq.
- Establishes the CSAC as the state agency charged with administering state financial aid programs to qualifying students enrolled in qualifying institutions of higher education throughout the State; requires the CSAC to prescribe the use of standardized student financial aid applications for California. Education Code §§ 69433 and 69510, et seq.
FISCAL EFFECT: Unknown
COMMENTS:
The federal Workforce Pell Grant program established by HR 1 (Public Law 119-21):
As stated in the Assembly Higher Education Committee’s analysis of this bill:
“The Congress enacted H.R. 1, in the Summer of 2025. Among the many provisions contained in the measure is a section that expands Pell Grant eligibility to students enrolled in short-term, career-focused training programs that meet defined quality requirements and lead to industry-recognized credentials. The workforce training programs tend to be between 8 and 15 weeks in length and are intended to provide rapid pathways to employment in high-demand industries. This expansion is commonly referred to as “Short-Term Pell” or “Workforce Pell.”
According to the National Governors Association and America Achieves, in their Workforce Pell: An Overview for Governors March 2026 policy memo, ‘the Congressional Budget Office estimates that over the next ten years, the federal government will invest approximately $1.5 billion in Workforce Pell Grants of about $2,200 per recipient, although awards will vary as they are prorated based on program length and student need. However, research on such short-term programs demonstrates that while some programs deliver strong labor market returns, many do not. This new funding stream represents an opportunity for Governors to drive resources to the strongest programs to address critical workforce development needs and better align postsecondary training to high-skill, high-wage, and in-demand jobs through their implementation decisions.’
The Workforce Pell goes into effect on July 1, 2026, the USDE proposed regulations in March 2026, and is expected to finalize regulations later this Spring. Presently, the draft regulations leave Governors with considerable leeway in the details of implementation.”
Existing state processes for approving workforce training programs:
Registered preapprenticeship and apprenticeship programs
Apprenticeship is a system of training in a trade or profession that combines both classroom study and on-the-job training. The DAS within the Department of Industrial Relations administers California apprenticeship law and establishes apprenticeship standards for wages, hours, working conditions and the specific skills required for state certification. It promotes apprenticeship training, consults with program sponsors, and monitors programs to ensure high standards for on-the-job training and supplemental classroom instruction. Although “traditional” apprenticeship programs are in the building and construction trades, registered apprenticeship programs now exist in a wide variety of industries, including healthcare, technology, advanced manufacturing, public service and more.
Preapprenticeship programs also exist and in many cases are registered by the DAS. These programs are geared toward preparing enrollees to subsequently enter into a registered apprenticeship program.
Employment Training Provider List (ETPL)
The federal Workforce Innovation and Opportunity Act (WIOA) requires states to establish and maintain a list of training providers that are eligible to receive WIOA funds for training services, including classes, online courses, apprenticeships and more. This list is known as the ETPL. There is a statewide California ETPL as well as local ETPLs. The goal of the ETPL is to ensure that federal workforce training funds only support programs with strong employment outcomes.
Author’s Statements:
According to the author, “Californians looking to gain new skills or advance in their careers by enrolling in short-term workforce training programs may be eligible for new financial assistance. Starting in July, the federal government is set to begin rolling out Workforce Pell Grants for eligible Californians seeking to enroll in short-term programs lasting 8 to 15 weeks. These programs will lead to industry-recognized credentials in sectors like healthcare, IT and skilled trades, and will train participants for high-wage and in-demands jobs.
While Pell Grant assistance has historically been limited to students seeking an undergraduate degree, these new grants will be available for entry-level to mid-career adults wishing to upskill and move up in their careers.
Legislation is necessary for the state to create an approval process to ensure only the highest quality programs are offered to prospective students. This ensures students use their limited Pell Grant eligibility on programs that deliver real opportunities for them and their families, and prevent them from wasting resources on unproductive or fraudulent programs.
This type of investment in our workforce will strengthen California’s economy by ensuring workers have the skills to meet the demands of employers, and businesses can continue to evolve in a 21st century market.”
The author adds that the measure promotes equity, per HR 39 (Gipson, 2021) in that “traditional Workforce Pell Grants have historically excluded short-term programs. These programs often serve working adults and students who cannot afford multi-year degree pathways. This bill ensures low-income students who qualify for Pell Grants will have access to training that leads to high-demand, high-wage jobs, providing them and their families stability and economic security. Since Workforce Pell will apply to programs 8 to 15 weeks in length, underrepresented students will likely need to borrow less, minimizing financial risk.
Some short-term programs have been marred by deceptive and fraudulent practices that target vulnerable, underrepresented students desperate for career advancement. This bill includes robust quality assurance measures that ensure underrepresented students are only accessing high-quality education that will advance their careers and economic security.”
Committee Comments:
There is some concern that the language in Section 69872(c)(4)(C) prohibiting the approval of short-term programs that cost more than the maximum Workforce Pell Grant awards could exclude some important programs such as trucking, welding, and heating, ventilation, and air conditioning (HVAC). However, the sponsor conveys that this language is intended to discourage institutions from artificially inflating tuition now that federal grant dollars are available. Given that the aforementioned types of programs that could potentially be excluded have historically resulted in positive employment outcomes, Committee staff recommends the author continue to engage with interested stakeholders on the issue.
Additionally, the multicraft core curriculum (MC3) – a comprehensive pre-apprenticeship training curriculum developed and approved by the Building Trades National Apprenticeship and Training Committee – would currently be excluded under the language of this bill due to the shorter duration of the program. The MC3 is 120 hours, but the minimum number of hours for a program eligible for the Workforce Pell Grant is 150 hours. However, this minimum hour requirement was established in the federal law so it is unclear if there is any ability for the state to authorize eligibility for shorter programs.
Lastly, given the state’s vast efforts to bolster registered apprenticeship programs, it might make sense to somehow expedite approval for these already-vetted programs.
Arguments in Support
The Institute for College Access & Success writes in support that “while federal implementation of Workforce Pell is still evolving through negotiated rulemaking, AB 1534 (Irwin) provides a strong policy framework that can be refined as federal guidance becomes clearer. At the same time, it is critical for California to begin building the state-level infrastructure needed to responsibly implement this major expansion of federal financial aid. This bill builds on federal requirements by establishing important guardrails to ensure Workforce Pell-eligible programs in California are high quality and aligned with student success. The bill strengthens institutional accountability and accreditation safeguards, protects students against predatory financing, promotes program affordability, prohibits schools from partnering or contracting with unaccredited companies related to the instruction, and establishes data collection and transparency to evaluate program outcomes. These guardrails are especially important since research shows that many individuals with short-term certificates earn $30,000 or less annually, and Black and Latino workers often see lower earnings than White workers with similar credentials.”
Arguments in Opposition
None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
Blu Educational Foundation
California Competes: Higher Education for a Strong Economy
California Opportunity Youth Network
Campaign for College Opportunity
Children Now
John Burton Advocates for Youth
Public Advocates
Rancho Santiago Community College District
The Century Foundation
The Institute for College Access & Success
Tri County Chamber Alliance
Unite-LA
Opposition
None on file.
Analysis Prepared by: Erin Hickey / L. & E. /
Date of Hearing: March 17, 2026
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Mike Fong, Chair
ABPCA Bill Id:AB 1534 (
Author:Irwin) – As Amended Ver:March 5, 2026
[Note: This bill is double referred to the Assembly Committee on Labor and Employment and will be heard by that Committee as it relates to issues under its jurisdiction.]
SUBJECT: Student financial aid: federal Workforce Pell Grant program.
SUMMARY: Establishes a state approval and oversight process for California postsecondary institutions seeking to participate in the federal Workforce Pell Grant program. Specifically, this bill:
- Prohibits a campus of the University of California (UC), the California State University (CSU), the California Community Colleges (CCC), a private postsecondary educational institution, or an independent institution of higher education receiving state financial assistance from disbursing federal Workforce Pell Grant funds or advertising their availability unless the institution has:
- Obtained authorization from the Governor; and,
- Received all required approvals and met all requirements established by the United States Department of Education (USDE).
- Requires institutions seeking approval for a short-term program to submit documentation demonstrating that the program meets federal Workforce Pell Grant requirements, including alignment with high-skill, high-wage, or in-demand occupations.
- Requires institutions to certify, under penalty of perjury, that the program meets specified outcomes, including:
- A completion rate of at least 70%; and,
- A job placement rate of at least 70% within 180 days of completion.
- Requires postsecondary educational institutions to provide program-level and student-level data related to enrollment, costs, completion, and employment outcomes.
- Prohibits authorization for programs unless additional conditions are met, including accreditation requirements, credit-bearing instruction, and program operation for at least one year prior to approval.
- Prohibits institutions from:
- Contracting with unaccredited instructional providers;
- Offering certain private financing arrangements, including income share agreements; and,
- Charging tuition exceeding the maximum Workforce Pell Grant amount.
- Establishes the California Workforce Pell Grant Advisory Board to provide guidance on program approval, data collection, and student protections. Stipulates that the advisory board must consist of all of the following:
- A representative from the Labor and Workforce Development Agency;
- A representative from the California Workforce Development Board;
- A representative from the Employment Training Panel;
- A representative from the Employment Development Department;
- A representative from the Division of Apprenticeship Standards;
- The UC President;
- The CSU Chancellor;
- The CCC Chancellor;
- A representative from the California Student Aid Commission (CSAC);
- A representative from the Bureau for Private Postsecondary Education;
- A representative from the Association of Independent California Colleges and Universities;
- A representative from the State Department of Education;
- A representative from the California Health and Human Services Agency;
- A representative from the Governor’s Office of Business and Economic Development;
- A representative from the Office of Cradle-to-Career Data;
- Industry leaders;
- Nonprofit leaders; and,
- Other representatives designated by the Governor.
- Authorizes the state to enter into data-sharing agreements with the Labor and Workforce Development Agency to evaluate employment outcomes.
- Requires institutions to protect confidential student data submitted under the program.
- Authorizes the Labor and Workforce Development Agency to adopt rules and regulations necessary to implement the program.
- Defines the following for purposes of this measure:
- “Advisory board” means the California Workforce Pell Grant Advisory Board;
- “Postsecondary educational institution” means a campus of the UC, CSU, or the CCC, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance;
- “Short-term program” means an educational program offered by a postsecondary educational institution that includes 150 to 599 inclusive hours of instruction, or an equivalent number of credit hours, over 8 to 14 weeks, inclusive; and,
- “Workforce Pell Grant program” means the federal program established pursuant H.R. 1 (Public Law 119-21), under which federal Workforce Pell Grants may be awarded to students enrolled in a short-term program at a postsecondary educational institution;
EXISTING LAW:
Federal.
- Establishes the federal Pell Grant to provide aid to students who demonstrate financial need. The Pell Grant award can be used for tuition and fees, books, and supplies, transportation, and living expenses for the equivalent of up to six years of full-time enrollment. The maximum Pell Grant for the 2025-26 academic year (which covers the period from July 1, 2025 – June 30, 2026) is $7,395. The minimum Pell Grant award for the same time frame is $740 (20 U.S.C. Section 1070).
- Establishes the federal Workforce Pell Grant program (via H.R. 1, Public Law 119-21), beginning July 1, 2026, to provide federal Pell Grant funding for eligible students enrolled in short-term workforce training programs aligned with high-skill, high-wage, or in-demand industries.
State.
- Establishes the Donahoe Higher Education Act, setting forth the mission of the UC, CSU, and CCC; and, defines "independent institutions of higher education" as nonpublic higher education institutions that grant undergraduate degrees, graduate degrees, or both, and that are formed as nonprofit corporations in California and are accredited by an agency recognized by the United States Department of Education. Specifies that for purposes of any code or statute, a national or regional accrediting agency recognized by the USDE as of January 1, 2025, shall retain that recognition until July 1, 2029, provided that the accrediting agency continues to operate in substantially the same manner as it did on January 1, 2025. (Education Code (EC) Section 66010, et seq.).
- Establishes CSAC as the state agency charged with administering state financial aid programs to qualifying students enrolled in qualifying institutions of higher education throughout the State. Existing law requires CSAC to prescribe the use of standardized student financial aid applications for California (EC Section 69433 and Section 69510, et seq.).
- Establishes the Labor and Workforce Development Agency to coordinate workforce development programs and support workforce policy in California (Government Code Section 15550, et seq.).
FISCAL EFFECT: Unknown
COMMENTS: Purpose of the measure. According to the author, “Californians looking to gain new skills or advance in their careers by enrolling in short-term workforce training programs may be eligible for new financial assistance. Starting in July [2026], the federal government is set to begin rolling out Workforce Pell Grants for eligible Californians seeking to enroll in short-term programs lasting 8 to 15 weeks. These programs will lead to industry-recognized credentials in sectors like healthcare, IT and skilled trades, and will train participants for high-wage and in-demands jobs.”
The author contends that, “while Pell Grant assistance has historically been limited to students seeking an undergraduate degree, these new grants will be available for entry-level to mid-career adults wishing to upskill and move up in their careers. Legislation is necessary for the state to create an approval process to ensure only the highest quality programs are offered to prospective students. This ensures students use their limited Pell Grant eligibility on programs that deliver real opportunities for them and their families, and prevent them from wasting resources on unproductive or fraudulent programs.”
Lastly, the author states that, “this type of investment in our workforce will strengthen California’s economy by ensuring workers have the skills to meet the demands of employers, and businesses can continue to evolve in a 21st century market.”
Workforce Pell. The Congress enacted H.R. 1, in the Summer of 2025. Among the many provisions contained in the measure is a section that expands Pell Grant eligibility to students enrolled in short-term, career-focused training programs that meet defined quality requirements and lead to industry-recognized credentials. The workforce training programs tend to be between 8 and 14 weeks in length and are intended to provide rapid pathways to employment in high-demand industries. This expansion is commonly referred to as “Short-Term Pell” or “Workforce Pell.”
According to the National Governors Association and America Achieves, in their Workforce Pell: An Overview for Governors March 2026 policy memo, “the Congressional Budget Office estimates that over the next ten years, the federal government will invest approximately $1.5 billion in Workforce Pell Grants of about $2,200 per recipient, although awards will vary as they are prorated based on program length and student need. However, research on such short-term programs demonstrates that while some programs deliver strong labor market returns, many do not. This new funding stream represents an opportunity for Governors to drive resources to the strongest programs to address critical workforce development needs and better align postsecondary training to high-skill, high-wage, and in-demand jobs through their implementation decisions.”
The Workforce Pell goes into effect on July 1, 2026, the USDE proposed regulations in March 2026, and is expected to finalize regulations later this Spring. Presently, the draft regulations leave Governors with considerable leeway in the details of implementation.
This measure seeks to establish a state-level approval process for institutions seeking to offer programs eligible for these funds.
Program accountability. This measure requires participating institutions to demonstrate measurable outcomes, including minimum completion and job placement rates. Institutions must also provide program and student-level data to enable the state to evaluate program performance and workforce outcomes.
Consumer protection provisions. This measure contains several provisions intended to protect students, including restrictions on tuition levels, limitations on private financing arrangements, and requirements that programs be offered through accredited institutions using credit-bearing coursework.
Advisory board. This measure establishes the California Workforce Pell Grant Advisory Board, composed of representatives from higher education systems, workforce agencies, and industry stakeholders. The advisory board is tasked with providing recommendations related to program approval, data reporting, and student transition policies.
Data collection and workforce alignment. This measure authorizes data sharing between the designated state entity and the California Labor and Workforce Development Agency to evaluate employment outcomes, including occupation, industry, and earnings data. These data are intended to inform program oversight and workforce development policy.
Student privacy. Provisions are included in this measure to protect confidential student information submitted to the state and requires institutions to designate such information accordingly. Legislative findings note that protecting student privacy is necessary to support program administration while safeguarding sensitive information.
Committee comments and amendments. Committee Staff understands that some stakeholders are concerned that the language in this measure could prohibit the approval of short-term programs that cost more than the maximum Workforce Pell awards; if the State ties the maximum tuition to Workforce Pell, it may prohibit some short-term programs, from being approved. Some of these programs could include, trucking, welding, and heating, ventilation, and air conditioning (HVAC) programs.
Committee Staff further understands that other stakeholders believe that tying tuition to Workforce Pell eligible programs to the maximum Pell Grant amount is intended to discourage institutions from artificially inflating tuition simply because federal grant dollars are now available. Students who enroll in these short-term programs and get a Workforce Pell cannot access other forms of federal aid such as loans, so the only option to bridge costs will be private loans.
According to the Institute for College Access & Success (TICAS), “the ceiling is also meant to ensure that students with the greatest financial need can complete the program without needing to take on debt. Because these short-term programs draw from students’ limited lifetime Pell eligibility, we do not want students to exhaust that aid on expensive programs that may not deliver strong returns.”
Further, TICAS states that, “federal statute itself already tries to address pricing indirectly. One of the federal eligibility requirements is that median earnings gains for program completers must exceed the program’s tuition and fees. The state-level pricing provision essentially tries to accomplish a similar consumer protection goal more directly on the front end.”
Keeping the aforementioned concerns in mind, moving forward, the author may wish to continue to work with all stakeholders in order to ensure that, to the extent feasible, all concerns are addressed.
Additionally, this measure establishes the California Workforce Pell Grant Advisory Board that is currently comprised of at least 18 specified entities; however, a representative from the recently created, California Education Interagency Counsel, which will bring together TK-12 education, higher education, and state economic and workforce development agencies to improve planning and coordination across state government, is not included. Further, the composition of many of the advisory board members allows for a representative of the specified entity; but not for the UC President, CSU Chancellor, or CCC Chancellor.
Moving forward, the author may wish to include a representative from the interagency counsel to the advisory board. The author may also wish to consider authorizing a representative from the Offices of the UC President, CSU Chancellor, and CCC Chancellor to be part of the advisory board, or allow the UC President, CSU Chancellor, and CCC Chancellor to name a designee.
Lastly, the Workforce Pell goes into effect on July 1, 2026, the USDE released proposed regulations this month and is expected to finalize regulations later this Spring. In order for California to have its students benefit from the Workforce Pell, this measure needs to contain an urgency clause. The Committee recommends, and the author has agreed to accept, the following amendment:
SEC. 3. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to effectively implement the expansion of the Pell Grant program for students enrolled in short-term programs by July 1, 2026, it is essential to safeguard Californians from depleting their limited lifetime Pell Grant eligibility on low-quality, overly expensive, or fraudulent programs that fail to provide genuine opportunities for economic mobility and allow quality short-term programs the ability to provide Pell Grants so more students may access and benefit from career training, and therefore, it is necessary for this act to take effect immediately.
Arguments in support. According to the Century Foundation (TCF), “AB 1524 establishes a framework for California to implement the expansion of federal Pell Grant eligibility to short-term workforce training programs. The expansion of Pell Grants to short-term workforce programs has the potential to create meaningful new opportunities for students to pursue job training, but it also poses significant risks.”
Further, TCF states that, “short-term workforce programs include programs offered by for-profit providers, and have a mixed track record when it comes to student outcomes. While some programs lead to positive outcomes, others fail to provide upward economic mobility and even worse, may leave students with debt. In addition, Workforce Pell programs count toward students’ limited Pell Grant eligibility, and students are at risk of using this eligibility for low-quality, expensive, or even fraudulent programs. As a result, it is critical that California establish strong safeguards that protect both students and public investment in the program. AB 1534 does just that.”
Lastly, according to TCF, “the bill includes important student protections, including a provision that will help ensure that program instruction is provided by accredited institutions, rather than outsourced to unaccredited providers. The bill also prohibits participating programs from charging tuition and fees above the maximum amount of Workforce Pell Grant funds available and prohibits institutions from entering into arrangements with private lenders to offer loans to students. These provisions will help to protect students from taking on debt while also helping to ensure that these programs remain affordable. California remains a national leader in expanding college access while maintaining strong consumer protections for students. AB 1534 lays the groundwork for an approach to Workforce Pell that would prioritize quality, affordability, and protecting students from taking on risky debts.”
REGISTERED SUPPORT / OPPOSITION:
Support
BLU Educational Foundation
California Competes: Higher Education for a Strong Economy
Campaign for College Opportunity
Children Now
John Burton Advocates for Youth
Public Advocates
The Century Foundation
The Institute for College Access & Success
UNITE-LA
Young Invincibles
Opposition
None on file.
Analysis Prepared by: Jeanice Warden / HIGHER ED. / (916) 319-3960
Discussed in Hearing
53SEC
Assembly Floor
2MIN
Senate Floor
42SEC
Senate Standing Committee on Appropriations
7MIN
Senate Standing Committee on Labor, Public Employment and Retirement
38MIN
Senate Standing Committee on Education
2MIN
Assembly Floor
5MIN
Assembly Standing Committee on Labor and Employment
17MIN
Assembly Standing Committee on Higher Education
Bill Author
Bill Co-Author(s):
