GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2015

S 1

SENATE BILL 538

Short Title: NCWorks/Enhance Workforce Development.		(Public)
Sponsors:	Senators Barefoot (Primary Sponsor); Clark, D. Davis, and Waddell.
Referred to:	Rules and Operations of the Senate.

March 30, 2015

A BILL TO BE ENTITLED

AN ACT to establish the NCWorks Commission to enhance workforce development in north carolina.

The General Assembly of North Carolina enacts:

SECTION 1. G.S. 143B‑438.10 reads as rewritten:

"§ 143B‑438.10. ~~Commission on Workforce Development.~~NCWorks Commission.

(a) Creation and Duties. – There is created within the Department of Commerce the ~~North Carolina Commission on Workforce Development.~~NCWorks Commission. The Commission shall have the following powers and duties:

(1) To develop strategies to produce a skilled, competitive workforce that meets the needs of the State's changing economy.

(2) To advise the Governor, the General Assembly, State and local agencies, and the business sector regarding policies and programs to enhance the State's workforce by submitting annually a comprehensive report on workforce development initiatives in the State.

(3) To coordinate and develop strategies for cooperation between the academic, governmental, and business sectors.

(4) To establish, develop, and provide ongoing oversight of the "One‑Stop Delivery System" for employment and training services in the State.

(5) To develop a unified State plan for workforce training and development.

(6) To review and evaluate the plans and programs of agencies, boards, and organizations operating federally funded or State‑funded workforce development programs for effectiveness, duplication, fiscal accountability, and coordination.

(7) To develop and continuously improve performance measures to assess the effectiveness of workforce training and employment in the State. The Commission shall assess and report on the performance of workforce development programs administered by the Department of Commerce, the Department of Health and Human Services, the Community Colleges System Office, the Department of Administration, and the Department of Public Instruction in a manner that addresses at least all of the following:

a. Actual performance and costs of State and local workforce development programs.

b. Expected performance levels for State and local workforce development programs based on attainment of program goals and objectives.

c. Program outcomes, levels of employer participation, and satisfaction with employment and training services.

d. Information already tracked through the common follow‑up information management system created pursuant to G.S. 96‑32, such as demographics, program enrollment, and program completion.

(7a) To issue annual reports that, at a minimum, include the information listed in sub‑subdivisions a. through d. of subdivision (7) of this section on the performance of workforce development programs administered by the entities listed in that subdivision. The first annual report shall be delivered to the General Assembly by January 15, 2014.

(8) To submit to the Governor and to the General Assembly by April 1, 2000, and biennially thereafter, a comprehensive Workforce Development Plan that shall include at least the following:

a. Goals and objectives for the biennium.

b. An assessment of current workforce programs and policies.

c. An assessment of the delivery of employment and training services to special populations, such as youth and dislocated workers.

d. Recommendations for policy, program, or funding changes.

(9) To serve as the State's Workforce Investment Board for purposes of the federal ~~Workforce Investment Act of 1998.~~Workforce Innovation and Opportunity Act of 2014.

(10) To take the lead role in developing the memorandum of understanding for workforce development programs with the Department of Commerce, the Department of Health and Human Services, the Community Colleges System Office, and the Department of Administration. The memorandum of understanding must be reviewed at least every five years.

(11) To coordinate the activities of workforce development work groups formed under this Part.

(12) To collaborate with the Department of Commerce on the common follow‑up information management system.

(13) To develop performance accountability measures for local workforce development boards consistent with the requirements of Section 116 of the Workforce Innovation and Opportunity Act of 2014, and to recommend to the Governor sanctions against local workforce development boards that fail to meet such performance accountability measures.

(14) To develop fiscal control and fund accounting procedures for local workforce development boards consistent with the requirements of Section 184 of the Workforce Innovation and Opportunity Act of 2014, and to recommend to the Governor sanctions against local workforce development boards that fail to meet such fiscal control and fund accounting procedures.

(b) ~~Membership; Terms. – Effective January 1, 2013, the~~Membership. – The Commission ~~on Workforce Development~~ shall consist of 25 29 members appointed as follows:

(1) By virtue of their offices, the following ~~department and agency heads or their respective designees~~individual shall serve on the Commission: the Secretary of the Department of Administration, the Secretary of the Department of Health and Human Services, the Superintendent of Public Instruction, the President of the Community Colleges System Office, the Commissioner of the Department of Labor, and the Secretary of the Department of Commerce.

a. The Governor.

b. The Secretary of the Department of Administration.

c. The Secretary of the Department of Commerce.

d. The Secretary of the Department of Health and Human Services.

e. The Superintendent of Public Instruction.

f. The President of the Community Colleges System Office.

g. The President of The University of North Carolina.

(2) ~~The~~ In accordance with Section 101 of the Workforce Innovation and Opportunity Act of 2014, the Governor shall appoint 22 members, including 16 members representing business and industry and six members representing labor and the workforce.~~19 members as follows:~~

a. ~~Two members representing public, postsecondary, and vocational education.~~

b. ~~One member representing community‑based organizations.~~

c. ~~Three members representing labor.~~

d. ~~Thirteen members representing business and industry.~~

~~(3)~~ ~~The terms of the members appointed by the Governor shall be for four years.~~

(b1) Terms. – The members shall serve staggered terms of office of four years. At the expiration of each member's term, the appointing authority shall reappoint or replace the member with a new member of like qualification as specified in subsection (b) of this section.

(b2) Vacancies. – In the event of a vacancy arising otherwise than by expiration of term, the appointing authority shall appoint a successor of like qualification as specified in subsection (b) of this section who shall then serve the remainder of the vacating's member's term.

(c) Appointment of Chair; Meetings. – The Governor shall appoint the Chair of the Commission from among the business and industry members, and that person shall serve at the pleasure of the Governor. The Commission shall meet at least quarterly upon the call of the Chair.

(d) Staff; Funding. – The clerical and professional staff to the Commission shall be provided by the Department of Commerce. Funding for the Commission shall derive from State and federal resources as allowable and from the partner agencies to the Commission. Members of the Commission shall receive necessary travel and subsistence in accordance with State law.

(e) Agency Cooperation; Reporting. – Each State agency, department, institution, local political subdivision of the State, and any other State‑supported entity identified by or subject to review by the Commission in carrying out its duties under subdivision (6) of subsection (a) of this section must participate fully in the development of performance measures for workforce development programs and shall provide to the Commission all data and information available to or within the agency or entity's possession that is requested by the Commission for its review. Further, each agency or entity required to report information and data to the Commission under this section shall maintain true and accurate records of the information and data requested by the Commission. The records shall be open to the Commission's inspection and copying at reasonable times and as often as necessary.

(f) Confidentiality. – At the request of the Commission, each agency or entity subject to this section shall provide it with sworn or unsworn reports with respect to persons employed or trained by the agency or entity, as deemed necessary by the Commission to carry out its duties pursuant to this section. The information obtained from an agency or entity pursuant to this subsection (i) is not a public record subject to the provisions of Chapter 132 of the General Statutes and (ii) shall be held by the Commission as confidential, unless it is released in a manner that protects the identity and privacy of individual persons and employers referenced in the information.

(g) Advisory Work Group. – The Commission shall appoint an Advisory Work Group composed of representatives from the State and local entities engaged in workforce development activities to assist the Commission with the development of performance measures."

SECTION 2. Transition of Membership of the Commission. – (a) Except as otherwise provided in this section, the terms of all members of the Commission shall expire when this act becomes law. A new Commission of 33 members shall be appointed in the manner provided by G.S. 143B‑438.10(b), as enacted by Section 1 of this act and this section. Members appointed in the manner provided by G.S. 143B‑438.10(b), as enacted by Section 1 of this act, shall be appointed no later than June 30, 2015.

(b) Six of the members of the Commission whose qualifications are described by sub‑subdivision (2)a. of G.S. 143B‑438.10(b), and two of the members of the Commission whose qualifications are described by sub‑subdivision (2)b. of G.S. 143B‑438.10(b), as enacted by Section 1 of this act, shall be appointed for an initial term of one year and subsequent appointments shall be for four‑year terms thereafter. Six of the members of the Commission whose qualifications are described by sub‑subdivision (2)a. of G.S. 143B‑438.10(b), and two of the members of the Commission whose qualifications are described by sub‑subdivision (2)b. of G.S. 143B‑438.10(b), as enacted by Section 1 of this act, shall be appointed for an initial term of two years and subsequent appointments shall be for four‑year terms thereafter. Five of the members of the Commission whose qualifications are described by sub‑subdivision (2)a. of G.S. 143B‑438.10(b), and three of the members of the Commission whose qualifications are described by sub‑subdivision (2)b. of G.S. 143B‑438.10(b), as enacted by Section 1 of this act, shall be appointed for an initial term of one year and subsequent appointments shall be for four‑year terms thereafter. Members of the Commission whose qualifications are described by subdivision (1) of G.S. 143B‑438.10(b), as enacted by Section 1 of this act, shall be appointed for initial terms of four years. Initial terms shall expire on June 30 of the year of expiration.

SECTION 3. G.S. 143B‑438.11 reads as rewritten:

"§ 143B‑438.11. Local Workforce Development Boards.

(a) Duties. – Local Workforce Development Boards shall have the following powers and duties:

(1) To develop policy and act as the governing body for local workforce development.

(2) To provide planning, oversight, and evaluation of local workforce development programs, including the local One‑Stop Delivery System.

(3) To provide advice regarding workforce policy and programs to local elected officials, employers, education and employment training agencies, and citizens.

(4) To develop a local plan in coordination with the appropriate community partners to address the workforce development needs of the service area.

(5) To develop linkages with economic development efforts and activities in the service area and promote cooperation and coordination among public organizations, education agencies, and private businesses.

(6) To review local agency plans and grant applications for workforce development programs for coordination and achievement of local goals and needs.

(7) To serve as the Workforce Investment Board for the designated substate area for the purpose of the federal ~~Workforce Investment Act of 1998.~~Workforce Innovation and Opportunity Act of 2014.

(7a) To designate through a competitive selection process, by no later than July 1, 2014, the providers of adult and dislocated worker services authorized in the ~~Workforce Investment Act of 1998.~~Workforce Innovation and Opportunity Act of 2014.

(8) To provide the appropriate guidance and information to ~~Workforce Investment Act~~Workforce Innovation and Opportunity Act consumers to ensure that they are prepared and positioned to make informed choices in selecting a training provider. Each local Workforce Development Board shall ensure that consumer choice is properly maintained in the one‑stop centers and that consumers are provided the full array of public and private training provider information.

(9) To provide coordinated regional workforce development planning and labor market data sharing.

(10) To comply with the performance accountability measures established by the NCWorks Commission in accordance with Section 116 of the Workforce Innovation and Opportunity Act of 2014.

(11) To comply with the fiscal control and fund accounting procedures established by the NCWorks Commission in accordance with Section 184 of the Workforce Innovation and Opportunity Act of 2014.

(b) Members. – Members of local Workforce Development Boards shall be appointed by local elected officials in accordance with criteria established by the Governor and with provisions of the federal ~~Workforce Investment Act.~~ Workforce Innovation and Opportunity Act. The local Workforce Development Boards shall have a majority of business members and shall also include representation of workforce and education providers, labor organizations, community‑based organizations, and economic development boards as determined by local elected officials. The Chairs of the local Workforce Development Boards shall be selected from among the business members.

(c) Assistance. – The North Carolina Commission on Workforce Development and the Department of Commerce shall provide programmatic, technical, and other assistance to any local Workforce Development Board that realigns its service area with the boundaries of a local regional council of governments established pursuant to G.S. 160A‑470."

SECTION 4. G.S. 143B‑438.12 reads as rewritten:

"§ 143B‑438.12. Federal Program Administration.

(a) Federal ~~Workforce Investment Act. –~~ Workforce Innovation and Opportunity Act. – In accordance with the federal ~~Workforce Investment Act,~~ Workforce Innovation and Opportunity Act, the Commission on Workforce Development shall develop a Five‑Year Strategic Plan to be submitted to the U.S. Secretary of Labor. The Strategic Plan shall describe the workforce development activities to be undertaken in the State to implement the federal ~~Workforce Investment Act~~ Workforce Innovation and Opportunity Act and how special populations shall be served.

(b) Other Workforce Grant Applications. – The Commission on Workforce Development may submit grant applications for workforce development initiatives and may manage the initiatives and demonstration projects."

SECTION 5. G.S. 143B‑438.13 reads as rewritten:

"§ 143B‑438.13. Employment and Training Grant Program.

(a) Employment and Training Grant Program. – There is established in the Department of Commerce, Division of ~~Employment and Training,~~ Workforce Solutions, an Employment and Training Grant Program. Grant funds shall be allocated to local Workforce Development Boards for the purposes of enabling recipient agencies to implement local employment and training programs in accordance with existing resources, local needs, local goals, and selected training occupations. The State program of workforce performance standards shall be used to measure grant program outcomes.

(b) Use of Grant Funds. – Local agencies may use funds received under this section for the purpose of providing services, such as training, education, placement, and supportive services. Local agencies may use grant funds to provide services only to individuals who are (i) 18 years of age or older and meet the federal ~~Workforce Investment Act,~~ Workforce Innovation and Opportunity Act, title I adult eligibility definitions, or meet the federal ~~Workforce Investment Act,~~ Workforce Innovation and Opportunity Act, title I dislocated worker eligibility definitions, or (ii) incumbent workers with annual family incomes at or below two hundred percent (200%) of poverty guidelines established by the federal Department of Health and Human Services.

(c) Allocation of Grants. – The Department of Commerce may reserve and allocate up to ten percent (10%) of the funds available to the Employment and Training Grant Program for State and local administrative costs to implement the Program. The Division of ~~Employment and Training~~Workforce Solutions shall allocate employment and training grant funds to local Workforce Development Boards serving federal ~~Workforce Investment Act~~ Workforce Innovation and Opportunity Act local workforce investment areas based on the following formula:

(1) One‑half of the funds shall be allocated on the basis of the relative share of the local workforce investment area's share of federal ~~Workforce Investment Act,~~Workforce Innovation and Opportunity Act, title I adult funds as compared to the total of all local areas adult shares under the federal Workforce Investment Act, title I.

(2) One‑half of the funds shall be allocated on the basis of the relative share of the local workforce investment area's share of federal ~~Workforce Investment Act,~~Workforce Innovation and Opportunity Act, title I dislocated worker funds as compared to the total of all local areas dislocated worker shares under the federal Workforce Investment Act, title I.

(3) Local workforce investment area adult and dislocated shares shall be calculated using the current year's allocations to local areas under the federal Workforce Investment Act, title I.

(d) Repealed by Session Laws 2009‑451, s. 14.5(d), effective July 1, 2009.

(e) Nonreverting Funds. – Funds appropriated to the Department of Commerce for the Employment and Training Grant Program that are not expended at the end of the fiscal year shall not revert to the General Fund, but shall remain available to the Department for the purposes established in this section."

SECTION 6. Modification of References. – The Revisor of Statutes shall delete any references in the General Statutes to the "North Carolina Commission on Workforce Development" (or any derivatives thereof) and substitute references to the "NCWorks Commission" (or the appropriate derivative thereof) to effectuate the renaming set forth in this section wherever conforming changes are necessary.

SECTION 7. G.S. 115C‑64.15 is repealed.

SECTION 8. G.S. 115C‑64.16 is repealed.

SECTION 9. Part 3B of Article 10 of Chapter 143B of the General Statutes is amended by adding a new section to read:

"§ 143B‑438.13A. NCWorks Innovation Program.

(a) Program Establishment. – There is established the NCWorks Innovation Program (Program) to foster innovation in education that will lead to more students graduating career‑ and college‑ready. Funds appropriated to the Program shall be used to award competitive grants to an individual school, a local school administrative unit, or a regional partnership of more than one local school administrative unit to advance comprehensive, high‑quality education that equips teachers with the knowledge and skill required to succeed with all students. Before receiving a grant, applicants must meet all of the following conditions:

(1) Form a partnership, for the purposes of the grant, with either a public or private university or a community college.

(2) Form a partnership, for the purposes of the grant, with regional businesses and business leaders.

(3) Demonstrate the ability to sustain innovation once grant funding ends.

(b) Applicant Categories and Specific Requirements. –

(1) Individual schools. – Individual public schools must demonstrate all of the following in their applications:

a. Partnerships with business and industry to determine the skills and competencies needed for students' transition into growth sectors of the regional economy.

b. Aligned pathways to employment, including students' acquisition of college credit or industry‑recognized credentials.

c. Development of systems, infrastructure, capacity, and culture to enable teachers and school leaders to continuously focus on improving individual student achievement.

(2) Local school administrative units. – Local school administrative units must demonstrate all of the following in their applications:

a. Implementation of comprehensive reform and innovation.

b. Appointment of a senior leader to manage and sustain the change process with a specific focus on providing parents with a portfolio of meaningful options among schools.

(3) Regional partnerships of two or more local school administrative units. – Partnerships of two or more local school administrative units must demonstrate all of the following in their applications:

a. Implementation of resources of partnered local school administrative units in creating a tailored workforce development system for the regional economy and fostering innovation in each of the partnered local school administrative units.

b. Promotion of the development of knowledge and skills in career clusters of critical importance to the region.

c. Benefits of the shared strengths of local businesses and higher education.

d. Usage of technology to deliver instruction over large geographic regions and build networks with industry.

e. Implementation of comprehensive reform and innovation that can be replicated in other local school administrative units.

(c) Consideration of Factors in Awarding of Grants. – All applications must include information on at least the following in order to be considered for a grant:

(1) Describe the aligned pathways from school to high‑growth careers in regional economies.

(2) Leverage technology to efficiently and effectively drive teacher and principal development, connect students and teachers to online courses and resources, and foster virtual learning communities among faculty, higher education partners, and business partners.

(3) Establish a comprehensive approach to enhancing the knowledge and skills of teachers and administrators to successfully implement the proposed innovative program and to graduate all students ready for work and college.

(4) Link to a proven provider of professional development services for teachers and administrators capable of providing evidence‑based training and tools aligned with the goals of the proposed innovative program.

(5) Form explicit partnerships with businesses and industry, which may include business advisory councils, internship programs, and other customized projects aligned with relevant workforce skills.

(6) Partner with community colleges or public or private universities to enable communities to challenge every student to graduate with workplace credentials or college credit.

(7) Align K‑12 and postsecondary instruction and performance expectations to reduce the need for college remediation courses.

(8) Secure input from parents to foster broad ownership for school choice options and to foster greater understanding of the need for continued education beyond high school.

(9) Provide a description of the funds that will be used and a proposed budget for five years.

(10) Describe the source of matching funds required in subsection (d) of this section.

(11) Establish a strategy to achieve meaningful analysis of program outcomes due to the receipt of grant funds under this section.

(d) Matching Private and Local Funds. – All grant applicants must match fifty percent (50%) of all State dollars. Matching funds shall not include other State funds. Matching funds may include in‑kind contributions.

(e) Grants. – Any grants awarded by the Commission may be spent over a five‑year period from the initial award. Grants may be awarded for new or existing projects.

(f) Reporting Requirements. – No later than September 1 of each year, a grant recipient shall submit to the Commission an annual report for the preceding grant year that describes the academic progress made by the students and the implementation of program initiatives.

(g) Nonreverting Funds. – Funds appropriated to the Department of Commerce for the NCWorks Innovation Program that are not expended at the end of the fiscal year shall not revert to the General Fund, but shall remain available to the Department for the purposes established in this section."

SECTION 10. Modification of References. – The Revisor of Statutes shall delete any references in the General Statutes to the "Education and Workforce Innovation Program" (or any derivatives thereof) and substitute references to the "NCWorks Innovation Program" (or the appropriate derivative thereof) to effectuate the renaming set forth in this section wherever conforming changes are necessary.

SECTION 11. Funds appropriated to the Office of the Governor in Section 15.20(a) of S.L. 2014‑100 for the 2014‑2015 fiscal year that are unexpended and unencumbered as of June 30, 2015, shall not revert to the General Fund on June 30, 2015, but shall remain available for use consistent with the purposes of that fund. The Office of State Budget and Management, in conjunction with the Office of the State Controller and the Office of the Governor, shall transfer the unencumbered cash balance of the Education and Workforce Innovation Program funds budget code to the NCWorks Innovation Program fund budget code.

SECTION 12. The funds appropriated to the Office of the Governor for the 2015‑2016 fiscal year and the 2016‑2017 fiscal year for the Education and Workforce Innovation Program shall be transferred to the NCWorks Innovation Program established in G.S. 143B‑438.13A for use consistent with the purposes of that fund. The Office of State Budget and Management, in conjunction with the Office of the State Controller and the Office of the Governor, shall transfer the unencumbered cash balance of the Education and Workforce Innovation Program fund budget code to the NCWorks Innovation Program fund budget code.

SECTION 13. This act becomes effective July 1, 2015.