AB 765: Employment Training Fund: federal loan interest payments.

Existing law establishes the Employment Training Panel within the Employment Development Department and sets forth its powers and duties with respect to certain employment training programs. Existing law establishes the Employment Training Fund in the State Treasury, and requires that moneys in the fund be expended only for the purposes of the Employment Training Panel, except as provided. Existing law authorizes, with the approval of the Legislature, the fund or contributions to it to be used to pay interest charged on federal loans to the Unemployment Fund.

This bill would instead prohibit moneys in the fund from being diverted, transferred, or otherwise used to pay interest charged on federal loans to the Unemployment Fund, or related liabilities, without the approval of the Legislature by statute and a public report justifying the necessity for the diversion, transfer, or use. The bill would also make related findings and declarations.