Establishing the credential-attainment program within the department of workforce development, making appropriations, and including effective date provisions

This bill establishes the credential-attainment program within the department of workforce development. The bill authorizes a community college to enter into an agreement with an employer and a school district to establish a credential-attainment program pursuant to which the community college agrees to provide students who are enrolled in the school district in grades through with access to an educational program that is designed to lead to a credential while the student is enrolled in high school, and the employer agrees to fund part of the program costs and to hire into a high-wage program job all students who complete the educational program, attain the credential, and graduate high school. The bill provides that the credential-attainment program is to be developed by the community college, employer, and school district, and, if a bargaining agreement is in place that covers employees of the employer, a representative of the bargaining unit. The bill requires the community college, employer, and school district to notify the department of revenue if a program agreement is entered into, and the community college is also required to file a copy of the program agreement with the department of workforce development. The bill establishes that the program agreement is required to provide for program costs, and authorizes sources from which program costs may be paid, which include program job credits. The bill establishes other requirements related to the program agreement, including that the program agreement must include a provision that specifies the type and amount of funding sources that will be used to pay for program costs; require program costs to be adjusted on an annual basis; describe program services and schedules for implementation; provide for a specified wage level; and provide employer default procedures. The term of a program agreement cannot exceed five years; provided, however, that a program agreement may be renewed. A program agreement must allow an employer to decline to hire a student if the employer experiences an economic downturn. The bill establishes the method that is required to be used if a program agreement provides that part of the program costs are to be met by receipt of program job credits. Pursuant to that method, program job credits are to be based on the program job positions identified in the program agreement. Eligibility for program job credits is based on certification of program job positions and program job wages by the employer.16 (withholding of income tax at source —— penalties —— interest —— declaration of estimated tax —— bond). The employer receives a credit against all withholding taxes due by the employer regardless of whether the withholding from the employer of current program job wages is less than percent. The employer is required to remit the amount of the credit quarterly in the same manner as withholding payments are reported to the department of revenue to the community college to be allocated to, and when collected, paid into a special fund of the community college to pay, the program costs. The employer is required to certify to the department of revenue that the program job credit is in accordance with the program agreement, and the community college is required to certify to the department of revenue that the amount of the program job credit is in accordance with the program agreement.16.4 million. The bill requires the department of workforce development to maintain an annual record of the proposed credential-attainment program job credits under each program agreement for each fiscal year. The bill requires the department of workforce development to administer the statewide allocation of credential-attainment program job credits and establishes a process related to how the department of workforce development allocates available credential-attainment program job credits. The bill requires all participants in the credential-attainment program to be included in the customer tracking system implemented by the department of workforce development following program completion. The bill establishes a credential-attainment program fund in the state treasury under the control of the department of workforce development. The moneys in the fund are appropriated to the department of workforce development for purposes of funding the cost of credential-attainment program capital projects for vertical infrastructure. The bill provides that if the general assembly appropriates moneys for this purpose, such moneys are required to be allocated equally to each community college. The bill requires the department of workforce development to adopt rules to administer the credential-attainment program and to submit annual reports to the general assembly relating to the credential-attainment program. The bill defines “community college”, “credential”, “credential-attainment program”, “economic downturn”, “employer”, “participant”, “program costs”, “program job”, “program job credit”, “program job position”, “program services”, and “school district”. The bill takes effect July 1, 2027.