Creates an employment and training trust fund to provide state funding for employment and training services.   Official Text and Analysis.

Provides that the graduated social cost factor rate will be reduced by 0.10 percent for rate year 2010 only if the employer’s graduated social cost factor rate equals or exceeds 0.10 percent. The substitute directs ESD to disperse workforce training grant funds to the State Board for Community and Technical Colleges, who will review proposals and award grants.

To clarify that the grant program is to be managed by the ESD in consultation with, rather than jointly with, the SBCTC. The substitute further clarifies that persons receiving or who have exhausted unemployment benefits are eligible for worker retraining, regardless of whether they are also receiving training assistance benefits.

To provide that forest industry worker training programs are considered high demand training programs.

To add a section expressing legislative findings and intent. Another section is added establishing education and training incentives. The amount of money in the Administrative Contingency Fund that may be used for incentives is limited to no more than $5 million. The section establishing reporting requirements is modified to provide for one report (instead of three reports) to the Legislature. A section is added requiring the Employment Security Department to bring together specified parties to review development and implementation of the incentives and the training benefits program. The section making certain funds available for use by the State Board for Community and Technical Colleges is deleted. The section making administrative funds under the Workforce Individual Act available for training is deleted.

To remove the emergency clause.

To make a housekeeping change to provide that a particular account is for administrative and other costs of the training benefit program.

Senate doesn't agree to House action.

House removes original amendment and offers new amendment to express the Legislature's intent that certain individuals have the opportunity to enroll in training for high-demand occupations. These individuals are ones who are eligible for services under the WIA Adult and Dislocated Worker programs, or who are receiving or have exhausted entitlement to unemployment compensation benefits. Requires the Employment Security Department (ESD) to distribute certain funds as a match for other funds provided by workforce development councils for education and training in high-demand occupations. Gives priority to education and training in occupations in the aerospace, energy efficiency, forest product, and health care industries, so long as the priority is consistent with federal law, among other things.

Provides that certain funds be used to create incentives for education and training for certain individuals who are enrolled in training for high-demand occupations. Requires that the Employment Security Department (ESD) distribute certain funds as a match for other funds provided by workforce development councils to increase training capacity and provide student financial aid. Requires the ESD to also encourage an increase in education and training through grants and local plan modifications with workforce development councils. Section 4, which allows the Legislature to direct how the Governor's discretionary Workforce Investment Act 10% fund is used, is vetoed.