ASSEMBLY, No. 2011

STATE OF NEW JERSEY

INTRODUCED MAY 13, 1996

By Assemblyman COHEN and Assemblywoman FRISCIA

An Act concerning customized job training grants to businesses and amending P.L.1992, c.43.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 5 of P.L.1992, c.43 (C.34:15D-5) is amended to read as follows:

    5. a. There is hereby established, as part of the Workforce Development Partnership Program, the Office of Customized Training. Moneys allocated to the office from the fund shall be used to provide employment and training services to eligible applicants approved by the commissioner.

    b. An applicant shall be eligible for customized training services if it is one of the following:

    (1) An individual employer that seeks the customized training services to create, upgrade or retain jobs in a labor demand occupation;

    (2) An individual employer that seeks customized training services to upgrade or retain jobs in an occupation which is not a labor demand occupation, if the commissioner determines that the services are necessary to prevent the likely loss of the jobs or that the services are being provided to employees at a facility which is being relocated from another state into New Jersey;

    (3) An employer organization, labor organization or community-based organization seeking the customized training services to provide training in labor demand occupations in a particular industry; or

    (4) A consortium made up of one or more educational institutions and one or more eligible individual employers or labor, employer or community-based organizations that seeks the customized training services to provide training in labor demand occupations in a particular industry.

    c. Each applicant seeking customized training services shall submit an application to the commissioner in a form and manner prescribed in regulations adopted by the commissioner. The application shall be accompanied by a business plan of each employer which will receive customized training services if the application is approved. The business plan shall include:

    (1) A justification of the need for the services and funding from the office, including information sufficient to demonstrate to the satisfaction of the commissioner that the applicant will provide significantly less of the services if the requested funding is not provided by the office;

    (2) A comprehensive long-term human resource development plan which:

    (a) Extends significantly beyond the period of time in which the services are funded by the office; [and]

    (b) Significantly enhances the productivity and competitiveness of the employer operations located in the State and the employment security of workers employed by the employer in the State; and

    (c) States the number of jobs which will be created or retained as a result of the grant and the plan;

    (3) Evidence, if the training sought is for an occupation which is not a labor demand occupation, that the customized training services are needed to prevent job loss caused by obsolete skills, technological change or national or global competition or that the services are being provided to employees at a facility which is being relocated from another state into New Jersey;

    (4) Information demonstrating that most of the individuals receiving the services will be trained primarily for work in the direct production of goods or services; [and]

    (5) A commitment to provide the information needed by the commissioner to evaluate the success of the grant and the plan in creating and retaining jobs; and

    (6) Any other information which the commissioner deems appropriate.

    The commissioner may provide whatever assistance he deems appropriate in the preparation of the application and business plan, which may include labor market information, projections of occupational demand and information and advice on alternative training and education strategies.

    d. Each employer that receives customized training services shall contribute a minimum of 40% of the total cost of the customized training services, except that the commissioner shall set a higher [or lower minimum] contribution by an employer, if warranted by the size and economic resources of the employer or other factors deemed appropriate by the commissioner, and the commissioner may set a lower minimum contribution by any employer who agrees to return all amounts provided by the State for customized training if the employer relocates out of State or otherwise eliminates the jobs for which the training was provided during a period agreed to by the employer and the commissioner, which may not be less than five years following the ending date of the training.

    e. Each employer receiving customized training services shall hire or retain in permanent employment each worker who successfully completes the training and education provided under the customized training. The employer shall be entitled to select the qualified employed, disadvantaged or displaced workers who will participate in the customized training, except that if any collective bargaining unit represents a qualified employed worker, the selection shall be conducted in a manner acceptable to both the employer and the collective bargaining unit. The commissioner shall provide for the withholding, for a time period he deems appropriate, of whatever portion he deems appropriate of program funding as a final payment for customized training services, contingent upon the hiring and retention of a program completer as required pursuant to this section. The employer shall return all amounts provided by the State for customized training if:

    (1) The employer relocates the jobs for which the training was provided out of State within three years following the ending date of the customized training; or

    (2) The employer relocates out of State or otherwise eliminates the jobs within a period agreed to by the employer and the commissioner pursuant to subsection d. of this section.

    f. The customized training services provided to an approved applicant may include any combination of employment and training services or any single employment and training service approved by the commissioner, including remedial education provided to upgrade workplace literacy. Each service may be provided by a separate approved service provider.

    g. Customized training services shall include any remedial education determined necessary pursuant to section 7 of this act. Applications for customized training services shall include estimates of the total need for remedial education determined in a manner deemed appropriate by the commissioner.

    h. Any business seeking customized training services shall, in the manner prescribed by the commissioner, participate in the development of a plan to provide the services. Any business seeking customized training services for workers represented by a collective bargaining unit shall notify the collective bargaining unit and permit it to participate in developing the plan. No customized training services shall be provided to a business employing workers represented by a collective bargaining unit without the written consent of both the business and the collective bargaining unit.

    i. Any business receiving customized training services shall be responsible for providing workers' compensation coverage for any worker participating in the customized training.

(cf: P.L.1992, c.43, s.5)

    2. This act shall take effect immediately.

STATEMENT

    This bill requires any employer receiving a customized training grant under the provisions of the "1992 New Jersey Employment and Workforce Development Act," P.L.1992, c.43 (C.34:15D-1 et seq.), to repay the entire amount of the grant if the employer relocates the jobs for which the training was provided out of State within three years following the ending date of the training or if the employer relocates out of State or otherwise eliminates the jobs within a longer period agreed to by the employer and the Commissioner of Labor in connection with a reduced employer contribution for the training.

    The bill changes the circumstances under which an employer is permitted to provide less than 40% of the total cost of customized training. Currently, the commissioner may set an employer contribution lower than 40% if warranted by the size and economic resources of the employer or other factors accepted by the commissioner. The bill permits the commissioner to set a lower contribution only if the employer agrees to repay the entire amount of the grant if the employer relocates out of State or otherwise eliminates the jobs during a period, agreed to by the employer and the commissioner, which is not less than five years following the ending date of the training.

    The bill also requires each applicant for a grant to state the number of jobs which will be created or retained as a result of the grant and make a commitment to provide the information needed by the commissioner to evaluate the success of the grant in creating and retaining jobs.