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<ns0:Id>20250SB__105998AMD</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-12</ns0:ActionDate>
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<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2026-03-24</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Archuleta</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Archuleta</ns0:Name>
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<ns0:Title> An act to amend Sections 10200 and 10206 of, and to add Sections 10203.5 and 10206.5 to, the Unemployment Insurance Code, relating to employment.</ns0:Title>
<ns0:RelatingClause>employment</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Employment Training Panel.</ns0:Subject>
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<ns0:DigestText>
<html:p>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 declares the intent of the Legislature that the purpose of provisions relating to the panel is to establish an employment training program to promote a healthy labor market in a growing, competitive economy and to fund only projects that meet specified criteria, including, among other things, fostering retention of high-wage, high-skilled jobs in manufacturing, and other industries, as provided.</html:p>
<html:p> Existing law also 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 the panel to allocate moneys in the fund for reimbursement of reasonable training costs, administrative costs incurred by contractors, costs of program administration, and related services.</html:p>
<html:p>This bill would require the panel to modernize project administration, application review, monitoring, and compliance processes by authorizing and encouraging the use of electronic systems for applicant tracking, reporting, and recordkeeping. The bill would authorize contractors and subcontractors under an agreement with the panel to satisfy recordkeeping and documentation requirements through electronic records, provided that those records are complete, accurate, and meet other specified
criteria. The bill would make various other changes in connection with the panel, including requiring it to update regulations, guidance, and program materials to remove outdated nomenclature, paper-based procedures, and obsolete training delivery classifications.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_79C81863-AB19-49E0-886C-1233F103E6C7">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 10200 of the
<ns0:DocName>Unemployment Insurance Code</ns0:DocName>
is amended to read:
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<ns0:Num>10200.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The Legislature finds and declares the following:
</html:p>
<html:p>
(1)
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California’s economy is being challenged by competition from other states and overseas. In order to meet this challenge, California’s employers, workers, labor organizations, and government need to invest in a skilled and productive workforce, and in developing the skills of frontline workers. For purposes of this section,
“frontline worker” means a worker who directly produces or delivers goods or services.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The purpose of this chapter is to establish a strategically designed employment training program to promote a healthy labor market in a growing, competitive economy that shall fund only projects that meet the following criteria:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Foster creation of high-wage, high-skilled jobs, or foster retention of high-wage, high-skilled jobs in manufacturing and other industries that are threatened by out-of-state and global competition, including, but not limited to, those industries in which targeted training resources for California’s small- and medium-sized business suppliers will increase the state’s competitiveness to secure federal, private sector, and other nonstate funds, and, in addition, provide for retraining contracts in companies that make a monetary or in-kind contribution to the funded training enhancements.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Encourage industry-based investment in human resources
development that promotes the competitiveness of California industry through productivity and product quality enhancements.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Result in secure jobs for those who successfully complete training. All training shall be customized to the specific requirements of one or more employers or a discrete industry and shall include general skills, including soft skills, that trainees can use in the future.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Supplement, rather than displace, funds available through existing programs conducted by employers and government-funded training programs, such as the federal Workforce Innovation and Opportunity Act of 2014 (29 U.S.C. Sec. 3101 et seq.), the Carl D. Perkins Vocational Education Act (Public Law 98-524), CalWORKs (Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code), the former Enterprise Zone Act (Chapter 12.8 (commencing with Section 7070) of Division 7 of Title 1 of the Government Code), and the McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.), the California Community Colleges Economic Development Program, or apportionment funds allocated to the community colleges, regional occupational centers and programs, or other local educational agencies.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Employment Training
Panel, also known as ETP, housed within the Employment Development Department, plays a critical role in advancing a healthy labor market in a growing and competitive California economy.
</html:p>
<html:p>
(4)
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Certain statutory and regulatory requirements governing ETP recordkeeping, training delivery nomenclature, and program administration are outdated or no longer reflective of modern workforce training and recordkeeping practices.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Modernizing ETP statutes to expressly authorize electronic recordkeeping, digital training attendance tracking, and updated program terminology will improve clarity, consistency, administrative efficiency, and program performance while reducing unnecessary administrative burden.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
It is the intent of the Legislature to establish an employment training program that promotes a healthy labor market in a growing, competitive economy and that funds be expended only for projects that meet all existing minimum standards under current law.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The ETP, in funding projects that meet the requirements of
paragraph (2) of
subdivision (a), shall give funding priority to those projects that best meet the following goals:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Result in the growth of the California economy by stimulating exports from the state and the production of goods and services that would otherwise be imported from outside the state.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Train new employees of firms locating or expanding in the state that provide high-skilled, high-wage jobs and are committed to an ongoing investment in the training of frontline workers.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Develop workers with skills necessary to work with new technologies or methods.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Train workers who have been displaced, have received notification of impending layoff, or are subject to displacement, because of a plant closure, workforce reduction, changes in
technology, or significantly increasing levels of international and out-of-state competition.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Are jointly developed by business management and worker representatives.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Develop high road, as defined in subdivision (r) of Section 14005, jobs and career ladders for workers with demonstrated wage progression and demonstrate high road training partnership, as defined in subdivision (s) of Section 14005, standards to ensure job quality.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Promote the retention and expansion of the state’s manufacturing workforce.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
Promote the hiring, training, and advancement of disadvantaged, marginalized, and underrepresented workers.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The program established through this chapter is to be coordinated with all existing employment training programs and economic development programs, including, but not limited to, programs such as the federal Workforce Innovation and Opportunity Act of 2014 (29 U.S.C. Sec. 3101 et seq.), the California Community Colleges, the regional occupational programs, vocational education programs, joint labor-management training programs, and related programs under the Employment Development Department, the Governor’s Office of Business and Economic Development,
the California Housing and Homelessness Agency, and the Business and Consumer Services Agency.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Projects funded under this chapter may include programs to provide training through apprenticeship programs that are registered with the Division of Apprenticeship Standards.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 10203.5 is added to the
<ns0:DocName>Unemployment Insurance Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_A3285999-2C33-40AB-8CD0-3C0DCD4C0435">
<ns0:Num>10203.5.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The panel shall modernize project administration, application review, monitoring, and compliance processes by authorizing and encouraging the use of electronic systems for applicant tracking, reporting, and recordkeeping.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Notwithstanding any other law, contractors and subcontractors under an ETP agreement may satisfy recordkeeping and documentation requirements through electronic records, provided that the records are complete, accurate, secure, and accessible for audit and oversight purposes.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The panel shall update regulations, guidance, and program materials to remove outdated nomenclature, paper-based procedures, and obsolete training delivery classifications
that are inconsistent with current workforce training practices.
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 10206 of the
<ns0:DocName>Unemployment Insurance Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_C26839C7-1446-4CC2-BC73-0194A7164437">
<ns0:Num>10206.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The panel may allocate money in the fund for any of the following purposes:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Reimbursement of reasonable training costs, and administrative costs incurred by contractors. In making a determination of costs to be reimbursed under this paragraph, the panel may allocate funds in accordance with any of the following methods:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
For purposes of providing simplified fixed-fee performance contracts, a flat rate per hour for categories of training that are substantially similar with respect to content, methodology, and duration, as determined by the panel, not to exceed the reasonable and normal costs for the training. The panel shall periodically adjust the standardized rates established pursuant
to this paragraph to reflect changes in training costs.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A complete review of the proposal and its costs, including a budget listing the planned costs of training, including personnel, fringe benefits, equipment, supplies, fees for consulting or administrative services, and other costs attributable to training; the services provided by subcontractors; the length and complexity of the training; the method of training; the wages and occupations following training; whether the trainees are new hires or retrainees; and the cost of similar training that the panel has funded previously. The cost of administration shall not exceed 15 percent of the training costs under this paragraph, except that for new hire training the panel may fund administrative costs of up to 25 percent of the training cost.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The panel may modify the specific requirements of this paragraph as they apply to
employers or contractors proposing projects that involve training for a significant number of small employers in the same project.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A contractor is prohibited from utilizing any funds earned or paid as advances or progress payments for the purpose of making payments to any other individual or entity, either directly or indirectly, for costs incurred as a finder’s fee or for other compensation related to the predevelopment or development phase of a training program, which is based on a percentage of the preliminary or final panel award to the contractor for the training project.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Costs of program administration incurred under this chapter. These costs shall be reviewed annually by the Department of Finance and the Legislature and determined through the normal budgetary process.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The
panel’s administrative costs, exclusive of the cost of administering Section 976.6, shall not exceed 15 percent of the total amount annually appropriated for expenditure by the panel. Expenditures for marketing, research, and evaluations provided under the contract to the panel that otherwise would have been provided directly by the panel shall not be included in this limitation.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Service related to the purposes of this chapter provided by the Small Business Development Centers.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For all training contracts, the panel shall establish requirements for in-kind contributions by either the contractor or the employer that reflect a substantial commitment on the part of the contractor or the employer to the value of the training. In developing these requirements, the panel shall take into account the ability of the contractor or the employer, because of size or financial condition,
to make any contribution, and the ability of the Employment Training Fund to meet the demand for training authorized by this chapter. In developing policies regarding in-kind contributions, the panel shall hold public hearings.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The panel shall do both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Adopt electronic recordkeeping and training administration standards consistent with modern digital systems, in accordance with Section 10206.5.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Ensure that all recordkeeping requirements support program accountability while minimizing unnecessary administrative burden on employers and training providers, in accordance with Section 10206.5.
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 10206.5 is added to the
<ns0:DocName>Unemployment Insurance Code</ns0:DocName>
, to read:
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<ns0:Num>10206.5.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The panel shall adopt electronic recordkeeping and training administration standards that include, but are not limited to, the following requirements:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Contractors shall maintain and make available, upon request by the panel or its designee, all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Electronic records that clearly document all aspects of training delivery, trainee participation, and retention outcomes related to the approved training program.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Applicable financial records documenting funds received and disbursed under the ETP agreement.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Payroll and
personnel records related to employees participating in the ETP training agreement.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
All classroom, laboratory, and videoconference training attendance records shall contain, at a minimum, all of the following elements:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Date or dates on which training occurred. For concurrent or continuous training, a start date and end date may be used.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Type of training and course title, as identified in the approved curriculum.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Number of hours the trainee was in attendance per session or course.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Name or names of the trainer or trainers.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Name or names of the trainees.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
All asynchronous, web-based training attendance records shall contain, at a minimum, the following elements:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Date the training system was last accessed for the specific course.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Type of training and course title, as identified in the approved curriculum.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Standard number of hours designated to complete the course.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Percentage of the course completed by the trainee.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Name of the trainee.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Electronic records maintained pursuant to this section shall have the same force and effect as paper records and shall be retained for the period required by the panel.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Structured onsite training (SOST) shall not be considered an eligible training delivery methodology for purposes of reimbursement or approval under the Employment Training Panel program.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The panel shall repeal existing trainer-to-trainer ratio rules for ETP reimbursement for all delivery methodologies.
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<ns0:Num>SEC. 5.</ns0:Num>
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<html:p>The Employment Training Panel shall adopt or amend regulations and guidance as necessary to implement this act, including conforming changes to terminology, application materials, compliance procedures, and audit standards, consistent with the purposes of this act.</html:p>
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