20250AB__153496AMD INTRODUCED 2026-01-05 AMENDED_ASSEMBLY 2026-03-05 AMENDED_ASSEMBLY 2026-03-19 AMENDED_SENATE 2026-06-15 2025 AB AMD Introduced by Assembly Member Irwin (Coauthor: Assembly Member Alanis) LEAD_AUTHOR ASSEMBLY Irwin COAUTHOR ASSEMBLY Alanis

An act to add Sections 69870.5, 69871.5, and 69873.5 to the Education Code, and to amend, repeal, and add Sections 14017.1 and of the Unemployment Insurance Code, relating to workforce education and development. workforce education and development Federal Workforce Pell Grant program: local workforce development boards: participant training requirement. Beginning</xhtml:p>"?>

(1) Beginning on July 1, 2026, for the financial aid award year of 2026–27 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 from disbursing federal Workforce Pell Grant program funds to students enrolled in the institution’s 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.

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.</xhtml:p><xhtml:p>This bill would make legislative findings to that effect.</xhtml:p><xhtml:p>This bill would declare that it is to take effect immediately as an urgency statute.</xhtml:p>"?>

(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 California’s 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. MAJORITY NO YES YES NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1. (

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 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.

(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.

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 institution’s 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.

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 institution’s 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 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. (

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.

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.

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 person’s 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 person’s 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 person’s 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 person’s 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 person’s 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 board’s and Employment Development Department’s 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 person’s 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 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 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.

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 person’s 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 person’s 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 person’s 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 person’s 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 person’s 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 board’s and Employment Development Department’s 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 person’s 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 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 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 of the Unemployment Insurance Code is amended to read: 14211. (a)

(1) Beginning program year 2012, an amount equal to at least 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 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 through program year 2027, an amount equal to at least 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 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 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 of the United States Code. (

H) Transitional jobs in accordance with

Section 3174(d)(5) of Title 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 of Title of the Government Code. <caml:Num>SECTION 1.</caml:Num><caml:ActionLine action="IS_ADDED" xlink:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'42.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'17.'%5D)" xlink:label="fractionType: LAW_SPREAD||commencingWith: 69870" xlink:type="locator">Article 17 (commencing with

Section 69870) is added to

Chapter of Part of Division of Title of the <caml:DocName>Education Code</caml:DocName>, to read:</caml:ActionLine><caml:Fragment><caml:LawHeading id="id_051BA3D7-21B0-44BF-B783-C6FBE95D578F" type="ARTICLE"><caml:Num>17.</caml:Num><caml:LawHeadingVersion id="id_3E445BE6-A870-4FCC-855F-F4C423BBB045"><caml:LawHeadingText>Federal Workforce Pell Grant Program</caml:LawHeadingText></caml:LawHeadingVersion><caml:LawSection id="id_20784B37-E237-465F-99F3-F592D8C3730F"><caml:Num>69870.</caml:Num><caml:LawSectionVersion id="id_346DC985-BA4C-4C3F-9A4B-2CEC0498FEA6"><caml:Content><xhtml:p>For purposes of this article, the following

definitions apply:</xhtml:p><xhtml:p>(a)<xhtml:span class="EnSpace"/>“Advisory board” means the California Workforce Pell Grant Advisory Board established pursuant to

Section 69873.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>“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.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>“Short-term program” means an educational program offered by a postsecondary educational institution that includes to 599, inclusive, hours of instruction, or an equivalent number of credit hours, over to weeks, inclusive.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>“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.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_7FE82CB9-998E-4D58-8FBE-A24D1E33FD49"><caml:Num>69871.</caml:Num><caml:LawSectionVersion id="id_8BC281AA-9E6D-454B-A2B1-B5AE00154590"><caml:Content><xhtml:p>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 institution’s 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:</xhtml:p><xhtml:p>(a)<xhtml:span class="EnSpace"/>Obtained authorization from the Governor pursuant to this article.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Obtained approvals and met all requirements set forth by the United States Department of Education.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_7A06ED58-8576-46C5-9080-E51C1B1EA47C"><caml:Num>69872.</caml:Num><caml:LawSectionVersion id="id_9296C870-5AB2-413A-B12B-D7899ACA2031"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>The Governor shall determine whether a postsecondary educational institution’s short-term program meets the requirements established pursuant to this article.

The Governor may consult with relevant entities to make that determination.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>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:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>Documentation that the short-term program meets all of the following requirements:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>The hiring requirements of employers in the sectors or occupations identified pursuant to subparagraph (A).</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(D)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>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:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>A completion rate of at least percent, within percent of the normal time for completion of the program, verified by an independent auditor.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>A job placement rate of at least percent, measured within days after completion of the program, verified in a manner determined by the Governor.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>For the 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).</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>Data requested by the Governor related to the short-term program, which shall include, but not be limited to, all of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Program-level data, including all of the following:</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>The name of the short-term program.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>The Classification of Instructional Programs code and title.</xhtml:p><xhtml:p>(iii)<xhtml:span class="EnSpace"/>(I)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(II)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(iv)<xhtml:span class="EnSpace"/>The total cost of attendance, including tuition and fees, and the average cost of the short-term program.</xhtml:p><xhtml:p>(v)<xhtml:span class="EnSpace"/>Any information requested by the Governor that will enable the Governor to calculate the median earnings and percentage of graduates who are employed.</xhtml:p><xhtml:p>(vi)<xhtml:span class="EnSpace"/>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 program’s field of study, if available.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Student-level data, as determined by the Governor, including, but not limited to, both of the following:</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>Demographic information, including student identifiers, names, dates of birth, and race or ethnicity.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>Financial aid information, including dependency status, family income, aid amounts, including federal, state, and institutional aid, Pell Grant status, net cost, tuition, and fees.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>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:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>The Governor has consulted with the Labor and Workforce Development Agency and the advisory board.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>The postsecondary educational institution has met the requirements of subdivision (b).</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>The postsecondary educational institution does not do any of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>The short-term program is offered using only credit-bearing courses that are reviewed by the postsecondary educational institution’s accrediting agency.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>The Governor shall revoke the approval of a postsecondary educational institution related to the Workforce Pell Grant program if either of the following occurs:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The postsecondary educational institution fails to annually meet the requirements of subdivision (b).</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(e)<xhtml:span class="EnSpace"/>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:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>Standard Occupational Classification codes and titles.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>North American Industry Classification System codes and titles.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>Preenrollment and postenrollment employment status and employer.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>Preenrollment and postenrollment earnings data.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_A6E43546-BD78-4A1C-94FC-A9EAC9620BB1"><caml:Num>69873.</caml:Num><caml:LawSectionVersion id="id_29249693-6168-4F2D-B0E1-F14F05A8F8E8"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The advisory board shall consist of all of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>A representative from the Labor and Workforce Development Agency.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A representative from the California Workforce Development Board.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>A representative from the Employment Training Panel.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>A representative from the Employment Development Department.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>A representative from the Division of Apprenticeship Standards.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>The President of the University of California.</xhtml:p><xhtml:p>(7)<xhtml:span class="EnSpace"/>The Chancellor of the California State University.</xhtml:p><xhtml:p>(8)<xhtml:span class="EnSpace"/>The Chancellor of the California Community Colleges.</xhtml:p><xhtml:p>(9)<xhtml:span class="EnSpace"/>A representative from the Student Aid Commission.</xhtml:p><xhtml:p>(10)<xhtml:span class="EnSpace"/>A representative from the Bureau for Private Postsecondary Education.</xhtml:p><xhtml:p>(11)<xhtml:span class="EnSpace"/>A representative from the Association of Independent California Colleges and Universities.</xhtml:p><xhtml:p>(12)<xhtml:span class="EnSpace"/>A representative from the State Department of Education.</xhtml:p><xhtml:p>(13)<xhtml:span class="EnSpace"/>A representative from the California Health and Human Services Agency.</xhtml:p><xhtml:p>(14)<xhtml:span class="EnSpace"/>A representative from the Governor’s Office of Business and Economic Development.</xhtml:p><xhtml:p>(15)<xhtml:span class="EnSpace"/>A representative from the Office of Cradle-to-Career Data.</xhtml:p><xhtml:p>(16)<xhtml:span class="EnSpace"/>Industry leaders.</xhtml:p><xhtml:p>(17)<xhtml:span class="EnSpace"/>Nonprofit leaders.</xhtml:p><xhtml:p>(18)<xhtml:span class="EnSpace"/>Other representatives designated by the Governor.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_52944950-2252-4BE6-9938-035B14D5436D"><caml:Num>69874.</caml:Num><caml:LawSectionVersion id="id_5AF735CF-114E-4380-BBD3-963806BA551E"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>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.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_F3E28B33-EC84-44EF-BA2E-8190DB1424A9"><caml:Num>69875.</caml:Num><caml:LawSectionVersion id="id_8049EEB4-DB86-43BB-A9BD-DF1B12AD55F4"><caml:Content><xhtml:p>The Labor and Workforce Development Agency may adopt rules and regulations for the implementation of this

article as it deems necessary.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_529C3F67-B363-4753-84DB-535C83371268"><caml:Num>69876.</caml:Num><caml:LawSectionVersion id="id_80C57D09-7541-4E51-8EC3-05889AC198B1"><caml:Content><xhtml:p>This

article shall take effect on July 1, 2026.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:LawHeading></caml:Fragment></caml:BillSection><caml:BillSection id="id_16CE1580-8665-4D2F-95EB-65AFE331418C"><caml:Num>SEC. 2.</caml:Num><caml:Content><xhtml:p>The Legislature finds and declares that

Section of this act, which adds

Section to the Education Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of

Section 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:</xhtml:p><xhtml:p>To ensure access and use of federal Workforce Pell Grant program funds, which serve the state’s economic interests, the privacy of student data submitted to institutions on a confidential basis must be maintained.</xhtml:p></caml:Content></caml:BillSection><caml:BillSection id="id_FBD96491-E51F-458C-82D1-0BF31ABCEBAD"><caml:Num>SEC. 3.</caml:Num><caml:Content><xhtml:p>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:</xhtml:p><xhtml:p>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.</xhtml:p></caml:Content></caml:BillSection>"?>