Bill > AB765

This bill addresses the use of the Employment Training Fund (ETF), which supports workforce development and job training programs in California. Currently, the fund can be used to pay interest on federal loans to the Unemployment Fund, but this bill would prohibit such use without specific legislative approval and a public justification. The bill emphasizes that diverting money from the Employment Training Fund undermines its primary purpose of supporting workforce training and economic competitiveness. Specifically, the legislation modifies Section 1611 of the Unemployment Insurance Code to ensure that the ETF can only be used for its intended purpose of job training and related administrative costs. The bill includes legislative findings that highlight the importance of the Employment Training Panel in helping employers and workers develop skills, and asserts that using these funds to pay loan interest would hinder the state's ability to maintain a skilled workforce. The proposed changes would require any potential diversion, transfer, or use of the fund for loan interest to be explicitly approved by the Legislature through a statute, accompanied by a public report explaining the necessity of such action.

Business and Industry, Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB765