Federal Workforce Pell Grant program: local workforce development boards: participant training requirement.

Removed the word 'public' from references to postsecondary educational institutions in Sections 69870.5 and 69871.5, extending Workforce Pell Grant restrictions (on disbursing funds, advertising, and commission authorization) from only UC, CSU, and California Community Colleges to all postsecondary institutions including private ones.

Renamed 'California Priority Jobs Credentials List' to 'California Priority Jobs Credentials Programs List' in Section 69873.5.

In Section 69871.5(a)(3), changed the requirement from 'the entity and institution meet all of the following requirements' to 'the institution meets all of the following requirements,' narrowing the compliance obligation to the institution alone rather than both the institution and its partner entity.

In Section 69871.5(a)(3)(C), removed the phrase 'participate in, or' before 'exercise authority of any kind over,' narrowing the governance restriction to only actual exercise of authority rather than mere participation in deliberative bodies.

Consolidated the duplicated Section 14017.1 (previously both amended and added) into a single addition, and changed the operative clause from 'shall remain in effect only until July 1, 2028, and as of that date is repealed' to 'shall become operative on July 1, 2028,' removing the sunset and making the workforce outcomes reporting provision permanent.

Corrected a cross-reference in Section 14017.1(c)(3) from 'subdivision (c) of Section 14211' to 'subdivision (b) of Section 14211' for the annual report submission.

Made minor text corrections including changing 'wage gain' to 'wage gains' and 'training related' to 'training-related' in multiple locations.

The prohibition on disbursing Workforce Pell Grant funds now applies only to public postsecondary institutions (UC, CSU, California Community Colleges). Private postsecondary educational institutions and independent institutions of higher education that receive state financial assistance are no longer covered.

The requirement for the Governor to consult with the Labor and Workforce Development Agency and a newly established advisory board before authorizing a public institution is removed. The related open-meeting constitutional findings are also removed.

Disclosure requirements for third-party entities partnering with public colleges are expanded: both the institution and the entity must now disclose their separate relationship, and disclosure must appear on any internet website controlled by the entity related to the short-term program, not just the institution's website. Marketing materials used by either party are covered.

Governance restrictions on third-party entities are strengthened with explicit language that the entity may only provide consultation or technical assistance in an advisory capacity, and the institution retains sole and independent authority for all final decisions. Specific examples of prohibited governance participation are added, including deliberative committees, task forces, and other bodies.

Annual reporting requirements under Section 14211 are expanded to include training expenditures and supportive service expenditures made by local workforce development boards, in addition to existing reporting on participant enrollment and training receipt rates.

The urgency clause is removed, meaning the bill will no longer take effect immediately upon enactment but will follow the standard January 1 effective date.

The vote threshold required to pass the bill changes from a two-thirds majority to a simple majority.

The state-mandated local program designation changes from 'no' to 'yes,' meaning the bill now triggers state reimbursement obligations to local workforce development boards for costs imposed by the new participant training requirement.

The Workforce Pell Grant eligibility restrictions are now limited to public postsecondary educational institutions only, removing private and independent institutions from the direct prohibition in Sections 69870.5 and 69871.5.

Authorization authority shifts from the Governor directly to the Student Aid Commission acting on behalf of the Governor, changing who reviews and approves short-term programs for Workforce Pell Grant eligibility.

New Section 14017.1 of the Unemployment Insurance Code requires the California Workforce Development Board and EDD to create a plan using existing UI tax data infrastructure to match employee occupational, employment location, and hours data to job training participants, and to report training-related job placement outcomes at 2, 4, 8, and 12 quarters post-program.

Starting July 1, 2028, local workforce development boards must ensure at least 50% of participants enrolled in adult and dislocated worker programs receive workforce training services, replacing the prior minimum spending percentage requirement. This is designated as a state-mandated local program.

New Section 69873.5 authorizes the Student Aid Commission to use the California Priority Jobs Credentials List to determine whether a short-term program satisfies Workforce Pell Grant alignment requirements for high-skill, high-wage, or in-demand occupations.

New exceptions allow institutions to partner with non-accredited entities for registered apprenticeship programs or contract education agreements with community colleges under Section 78021, provided federal Title IV and Workforce Pell Grant requirements are met.

A new exception allows tuition above the maximum Workforce Pell Grant amount if the excess is paid by an employer, labor-management partnership, or other third party that is not a lender or private education loan offeror.

The state-mandated local program designation changes from 'no' to 'yes,' triggering potential state reimbursement obligations to local agencies under the California Constitution for costs mandated by the new participant training requirement.

All references to the previously blank 'authorized state entity' are replaced with 'the Governor,' making the Governor personally responsible for determining program eligibility, authorizing institutions, revoking approvals, and entering data-sharing agreements. This centralizes oversight in the executive branch rather than delegating it to an agency.

Assembly Member Alanis is added as a coauthor of the bill.

An urgency clause (new Section 3) is added, declaring the bill necessary for immediate preservation of public peace, health, or safety so it takes effect immediately upon the Governor's signature rather than on January 1 of the following year. The stated rationale is to implement Workforce Pell Grant protections by July 1, 2026.

The phrase 'under penalty of perjury' is removed from the certification requirement in Section 69872(b)(2). This eliminates the expansion of the crime of perjury that was present in the prior version and removes the basis for the state-mandated local program finding.

The fiscal note changes 'State-mandated local program' from 'yes' to 'no,' and the old Section 2 (which stated no reimbursement was required because the act created a new crime related to perjury) is deleted entirely. This follows from removing the perjury language.

The vote requirement changes from 'majority' to 'majority 2/3,' likely necessitated by the urgency clause or the public records limitation findings.

The separate definition of 'participating institution' (a Workforce Pell Grant-eligible institution offering a short-term program in-state or enrolling in-state students) is removed. The bill now uses only 'postsecondary educational institution' throughout, simplifying the definitional framework.

The bill now explicitly applies to participating postsecondary educational institutions 'with or without a physical presence in the state,' extending regulatory reach to out-of-state schools that enroll California residents in short-term programs.

The previously blank 'authorized state entity' is identified as the Governor throughout the bill, while the Labor and Workforce Development Agency (LWDA) is given rulemaking authority under Section 69875. The term 'participating institution' is replaced with 'participating postsecondary educational institution' for precision.

Section 69872(b)(1) now enumerates four specific program requirements instead of simply referencing federal law: (A) alignment with high-skill, high-wage occupations under the Carl D. Perkins Act or in-demand industries; (B) meeting employer hiring requirements in those sectors; (C) leading to a stackable and portable credential across multiple employers; and (D) ensuring academic credit transfer toward related certificates or degrees.

A new certification requirement (Section 69872(b)(2)(C)) requires that for the 12 months preceding the application date, the institution must have actually offered the program and it must have met all of the enumerated program requirements - establishing a track record prerequisite.

The consultation requirement before authorization now requires the Governor to consult with both the Labor and Workforce Development Agency AND the advisory board (previously only the advisory board). The Governor is also given explicit authority to 'consult with relevant entities' when making determinations.

Confidential student information may now be disclosed to 'the authorized state entity or relevant state entities' rather than solely to the authorized state entity, broadening the circle of agencies that can access sensitive student data.

Student-level data collection is now described as 'as determined by the Governor, including, but not limited to' the listed categories, giving the Governor discretion to require additional data beyond demographics and financial aid information.

The fiscal note changes the state-mandated local program designation from 'yes' to 'no,' indicating the amendment resolved concerns about unfunded mandates on local agencies.