SB567 (2018) Detail

Relative to workforce development and job training.


SB 567-FN - AS INTRODUCED

 

 

2018 SESSION

18-2943

08/04

 

SENATE BILL 567-FN

 

AN ACT relative to workforce development and job training.

 

SPONSORS: Sen. Feltes, Dist 15; Sen. Bradley, Dist 3; Sen. Cavanaugh, Dist 16; Sen. D'Allesandro, Dist 20; Sen. Fuller Clark, Dist 21; Sen. Hennessey, Dist 5; Sen. Kahn, Dist 10; Sen. Lasky, Dist 13; Sen. Soucy, Dist 18; Sen. Watters, Dist 4; Sen. Woodburn, Dist 1; Rep. Richardson, Coos 4; Rep. Bean, Rock. 21; Rep. D. Sullivan, Hills. 8; Rep. Fothergill, Coos 1; Rep. Rosenwald, Hills. 30

 

COMMITTEE: Commerce

 

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ANALYSIS

 

This bill expands job training programs offered by the department of business and economic affairs.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2943

08/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to workforce development and job training.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Findings.  The general court finds it is in the public interest to recruit, train, and re-employ workers in order to meet New Hampshire's skills gap and worker shortage, efficiently and timely assisting Granite State businesses and Granite Staters looking for work, including those in recovery.

2  Unemployment Fund; Employer Rates.  Amend RSA 282-A:87, IV(a) to read as follows:

IV.(a)(1)  Each employer subject to payment of contributions pursuant to RSA 282-A:69, I shall have its rate reduced by [2/10] 2/5 of one percent beginning in the [second] third quarter of [2007] 2018.  An administrative contribution equal to the amount of this reduction shall be paid by all such employers.

(2)  Commencing [July 1, 2007] September 1, 2018, after deduction of all costs incurred in the collection of the administrative contribution, 1/3 of the quarterly administrative contribution collected, not to exceed [$2,000,000] $6,000,000 annually, shall be deposited each quarter in the fund established by RSA 282-A:138-a and shall be expended only as provided by and for the purposes provided in that section.  The remaining quarterly administrative contribution collected shall be divided so that the proportional share of the quarterly administrative contribution resulting from the increase over 2/10 of one percent shall be deposited in the unemployment compensation fund established under RSA 282-A:103 and the remaining amount deposited in the fund established by RSA 282-A:140 and shall be expended only as provided by and for the purposes provided in that section, and not for any other purpose.

3  Training Fund.  Amend RSA 282-A:138-a, I to read as follows:

I.  There is hereby created in the state treasury a special fund to be known as the training fund.  Commencing January 1, 2002, the moneys in this fund may be used, solely as determined by the commissioner of business and economic affairs in accordance with rules and guidelines adopted by the commissioner of business and economic affairs, after consultation with the governor's state workforce innovation board, for funding training under the job training program for economic growth, established under RSA 12-O:30 through 12-O:37.  Rulemaking authority relative to administration of the grant award process shall be with the commissioner of the department of businesses and economic affairs pursuant to RSA 12-O:33.

4  Training Programs  RSA 12-O:32 is repealed and reenacted to read as follows:

12-O:32  Training Programs.

I.  Training programs may include, but shall not be limited to:

(a)  Structured, on-site laboratory or classroom training.

(b)  Basic skills.

(c)  Technical skills.

(d)  Quality improvement.

(e)  Safety.

(f)  Management and supervision.

(g)  English as a second language.

II.  Pursuant to rules adopted by the commissioner of businesses and economic affairs under RSA 541-A, no more than $500,000 annually may be provided to further support programs offered as of January 1, 2018, and in addition to programs offered as of January 1, 2018, funding shall be provided for:

(a)  Training individuals not otherwise eligible for state or federal training funds available as of January 1, 2018, including the cost of certificate programs and occupational skills training in order to fill current in-demand employment in New Hampshire with employers having immediate employment needs, with a priority for jobs identified through the state’s sector partnership initiative;

(b)  Enhanced support services, including child care and transportation assistance, which would not otherwise be available through any other state, federal, or other programs, with such assistance limited to income eligible individuals with an identified career path and who are determined to be in need of such support services to successfully compete for employment opportunities;

(c)  The WorkReadyNH program established by the community college system of New Hampshire in an amount no more than $500,000 annually, including expanding the WorkReadyNH program to current high school students in grades 10 through 12 on a pilot basis;

(d)  Recruitment for and program availability of certificate programs and occupational skills training opportunities for New Hampshire high school students upon graduation in order to fill current in-demand employment in New Hampshire;  

(e)  Marketing of New Hampshire's workforce development initiatives to employers and business community representatives in New Hampshire; and

(f)  Recruitment and coordination of services provided in this section to populations with higher than average unemployment in New Hampshire, including persons in need of training to change careers, persons with substance use disorders who are in recovery programs, persons with disabilities, inmates transitioning to the general population, senior citizens, legal immigrants and speakers of languages other than English, with priority given to persons with substance use disorders who are in recovery programs.

5  Eligible Costs; Job Training Program.  Amend RSA 12-O:35, IV to read as follows:

IV.  The department may use no more than 10 percent, or [$200,000] $600,000, of any moneys received from the training fund established at RSA 282-A:138-a, whichever is less, to administer this program.  

6  Report; Job Training Program; New Paragraph.  Amend RSA 12-O:37 by inserting after paragraph III the following new paragraph:

IV.  The commissioner shall annually provide a report to the governor's state workforce innovation board, the speaker of the house of representatives, the president of senate, the chairperson of the senate committee with jurisdiction over commerce issues, and the chairperson of the house committee with jurisdiction over labor issues concerning the effectiveness of all job training programs and services.

7  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

18-2943

1/5/18

 

SB 567-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to workforce development and job training.

 

FISCAL IMPACT:      [ X ] State              [ X ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [ X ] General            [    ] Education            [ X ] Highway           [ X ] Other - Unemployment Insurance Trust & Job Training Fund

 

 

 

 

 

COUNTY:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

METHODOLOGY:

This bill increases the administrative contribution paid by employers and expands the job training programs offered by the Department of Business and Economic Affairs.

 

The Department of Employment Security indicates this bill would increase the unemployment compensation administrative contribution paid by employers under RSA 282-A:87, IV (a) (1) from the current rate of 0.2% to 0.4%.  The rate increase would provide an additional $4 million to the Department of Business and Economic Affairs (BEA) to supplement and expand existing workforce development and job training programs funded by the Training Fund established in RSA 282-A:138-a.  The Department states the bill would not initially increase the unemployment insurance tax paid by employers because the administrative contribution is deducted from the employer’s tax rate and added back as an administrative contribution.  Currently, $2 million of the administrative contribution is deposited in the Training Fund and the remainder is reserved to pay for the administrative costs of the Department.  This bill would increase the amount by $4 million to $6 million.  The Department indicates there could be an indirect impact on employers’ tax rates because annual revenue to the unemployment trust fund would decrease by $4 million equal to the increase to the Training Fund.  The Department’s current projection for the Unemployment Trust fund is a balance between $275 and $300 million through 2019 and employers would experience a 1% reduction to their tax rates in the second and third quarters of 2019.  The forecasted impact of this bill is a Trust Fund balance of less than $275 million and a rate reduction of only 0.5% for the second and third quarters.  As a result, employers would pay $9.13 million more in unemployment taxes in the second and third quarters of 2019.  The tax rates are dependent on the balance in the trust fund and future rates would be impacted by revenue going into the fund.  The State and most other governmental entities reimburse the unemployment compensation trust funds for benefits paid and are not subject to the quarterly taxes.  For the remaining governmental entities subject to the tax, the impact in the second and third quarter of 2019 would be less than $10,000.  

 

The Department of Business and Economic Affairs indicates the bill would make additional funds available from the Unemployment Insurance Trust Fund to provide support and training designed to address skill gaps and other barriers to employment for individuals not eligible for other state or federal training funds.  The bill would increase the annual amount transferred from the Job Training fund to the Department by $4 million to an annual amount of $6 million in State Fiscal Year 2019.  The bill increases support for the WorkReadyNH program and makes funds available for marketing, workforce recruitment, and outreach to individuals with higher than average unemployment.  The Department states these activities would be implemented through the Office of Workforce Opportunity.  The Department assumes one additional Administrator I position would be required for management of the additional funds and expansion of the training programs.  The estimated salary and benefit cost for an Administrator I, labor grade 27, position is $83,000 in FY 2019, $87,000 in FY 2020, $92,000 in FY 2021 and $96,000 in FY 2022.

 

The Department of Health and Human Services indicates, on its face, the bill does not appear to impact the Department.  However, the bill provides for training and enhanced support services for individuals not otherwise available through other state or federal programs.  The Department states it is unclear if the Department would be called upon to determine eligibility for additional individuals under the programs currently administered by the Department.

 

AGENCIES CONTACTED:

Departments of Employment Security, Business and Economic Affairs and Health and Human Services

 

Links

SB567 at GenCourtMobile

Action Dates

Date Body Type
Jan. 23, 2018 Senate Hearing

Bill Text Revisions

SB567 Revision: 2934 Date: Jan. 11, 2018, 9:19 a.m.

Docket

Date Status
Jan. 3, 2018 Introduced 01/03/2018 and Referred to Commerce; SJ 2
Jan. 23, 2018 Hearing: 01/23/2018, Room 100, SH, 02:00 pm; SC 4
March 8, 2018 Committee Report: Referred to Interim Study, 03/08/2018; SC 10A
March 8, 2018 Refer to Interim Study, RC 12Y-11N, MA; 03/08/2018; SJ 6