MISSISSIPPI LEGISLATURE

2019 Regular Session

To: Workforce Development

By: Representative Bell (21st)

House Bill 74

AN ACT TO BRING FORWARD SECTIONS 37-153-7, 7-1-355, 7-1-357, 7-1-361, 37-153-9, 37-153-13, 71-5-353 AND 71-5-453, MISSISSIPPI CODE OF 1972, WHICH PROVIDE THE POWERS AND DUTIES OF THE MISSISSIPPI STATE WORKFORCE INVESTMENT BOARD, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 37-153-7, Mississippi Code of 1972, is brought forward as follows:

     37-153-7.  (1)  There is created the Mississippi State Workforce Investment Board.  The Mississippi State Workforce Investment Board shall be composed of forty-one (41) voting members, of which a majority shall be representatives of business and industry in accordance with the federal Workforce Investment Act.

          (a)  The Governor shall appoint the following members of the board to serve a term of four (4) years:

              (i)  The Executive Director of the Mississippi Association of Supervisors, or his/her designee;

              (ii)  The Executive Director of the Mississippi Municipal League;

              (iii)  One (1) elected mayor;

              (iv)  One (1) representative of an apprenticeship program in the state;

              (v)  One (1) representative of labor organizations, who has been nominated by state labor federations;

              (vi)  One (1) representative of individuals and organizations that has experience with respect to youth activities;

              (vii)  One (1) representative of the Mississippi Association of Planning and Development Districts;

              (viii)  One (1) representative from each of the four (4) workforce areas in the state, who has been nominated by the community colleges in each respective area, with the consent of the elected county supervisors within the respective workforce area;

              (ix)  The chair of the Mississippi Association of Community and Junior Colleges; and

              (x)  Twenty-one (21) representatives of business owners nominated by business and industry organizations, which may include representatives of the various planning and development districts in Mississippi.

          (b)  The following state officials shall be members of the board:

              (i)  The Executive Director of the Mississippi Department of Employment Security;

              (ii)  The Executive Director of the Department of Rehabilitation Services;

              (iii)  The State Superintendent of Public Education;

              (iv)  The Executive Director of the Mississippi Development Authority;

              (v)  The Executive Director of the Mississippi Department of Human Services;

              (vi)  The Executive Director of the Mississippi Community College Board; and

              (vii)  The Commissioner of the Institutions of Higher Learning.

          (c)  The Governor, or his designee, shall serve as a member.

          (d)  Four (4) legislators, who shall serve in a nonvoting capacity, two (2) of whom shall be appointed by the Lieutenant Governor from the membership of the Mississippi Senate, and two (2) of whom shall be appointed by the Speaker of the House from the membership of the Mississippi House of Representatives.

          (e)  The membership of the board shall reflect the diversity of the State of Mississippi.

          (f)  The Governor shall designate the Chairman of the Mississippi State Workforce Investment Board from among the voting members of the board, and a quorum of the board shall consist of a majority of the voting members of the board.

          (g)  The voting members of the board who are not state employees shall be entitled to reimbursement of their reasonable expenses incurred in carrying out their duties under this chapter, from any funds available for that purpose.

     (2)  The Mississippi Department of Employment Security shall establish limits on administrative costs for each portion of Mississippi's workforce development system consistent with the federal Workforce Investment Act or any future federal workforce legislation.

     (3)  The Mississippi State Workforce Investment Board shall have the following duties:

          (a)  Develop and submit to the Governor a strategic plan for an integrated state workforce development system that aligns resources and structures the system to more effectively and efficiently meet the demands of Mississippi's employers and job seekers.  This plan will comply with the federal Workforce Investment Act of 1998, as amended, the federal Workforce Innovation and Opportunity Act of 2014 and amendments and successor legislation to these acts;

          (b)  Assist the Governor in the development and continuous improvement of the statewide workforce investment system that shall include:

              (i)  Development of linkages in order to assure coordination and nonduplication among programs and activities; and

              (ii)  Review local workforce development plans that reflect the use of funds from the federal Workforce Investment Act, Workforce Innovation and Opportunity Act, the Wagner-Peyser Act and the amendment or successor legislation to the acts, and the Mississippi Comprehensive Workforce Training and Education Consolidation Act;

          (c)  Recommend the designation of local workforce investment areas as required in Section 116 of the federal Workforce Investment Act of 1998 and the Workforce Innovation and Opportunity Act of 2014.  There shall be four (4) workforce investment areas that are generally aligned with the planning and development district structure in Mississippi.  Planning and development districts will serve as the fiscal agents to manage Workforce Investment Act funds, oversee and support the local workforce investment boards aligned with the area and the local programs and activities as delivered by the one-stop employment and training system.  The planning and development districts will perform this function through the provisions of the county cooperative service districts created under Sections 19-3-101 through 19-3-115; however, planning and development districts currently performing this function under the Interlocal Cooperation Act of 1974, Sections 17-13-1 through 17-13-17, may continue to do so;

          (d)  Assist the Governor in the development of an allocation formula for the distribution of funds for adult employment and training activities and youth activities to local workforce investment areas;

          (e)  Recommend comprehensive, results-oriented measures that shall be applied to all of Mississippi's workforce development system programs;

          (f)  Assist the Governor in the establishment and management of a one-stop employment and training system conforming to the requirements of the federal Workforce Investment Act of 1998 and the Workforce Innovation and Opportunity Act of 2014, as amended, recommending policy for implementing the Governor's approved plan for employment and training activities and services within the state.  In developing this one-stop career operating system, the Mississippi State Workforce Investment Board, in conjunction with local workforce investment boards, shall:

              (i)  Design broad guidelines for the delivery of workforce development programs;

              (ii)  Identify all existing delivery agencies and other resources;

              (iii)  Define appropriate roles of the various agencies to include an analysis of service providers' strengths and weaknesses;

              (iv)  Determine the best way to utilize the various agencies to deliver services to recipients; and

              (v)  Develop a financial plan to support the delivery system that shall, at a minimum, include an accountability system;

          (g)  Assist the Governor in reducing duplication of services by urging the local workforce investment boards to designate the local community/junior college as the operator of the WIN Job Center.  Incentive grants of Two Hundred Thousand Dollars ($200,000.00) from federal Workforce Investment Act funds may be awarded to the local workforce boards where the community/junior college district is designated as the WIN Job Center.  These grants must be provided to the community and junior colleges for the extraordinary costs of coordinating with the Workforce Investment Act, advanced technology centers and advanced skills centers.  In no case shall these funds be used to supplant state resources being used for operation of workforce development programs;

          (h)  To provide authority, in accordance with any executive order of the Governor, for developing the necessary collaboration among state agencies at the highest level for accomplishing the purposes of this chapter;

          (i)  To monitor the effectiveness of the workforce development centers and WIN job centers;

          (j)  To advise the Governor, public schools, community/junior colleges and institutions of higher learning on effective school-to-work transition policies and programs that link students moving from high school to higher education and students moving between community colleges and four-year institutions in pursuit of academic and technical skills training;

          (k)  To work with industry to identify barriers that inhibit the delivery of quality workforce education and the responsiveness of educational institutions to the needs of industry;

          (l)  To provide periodic assessments on effectiveness and results of the overall Mississippi comprehensive workforce development system and district councils; and

          (m)  To assist the Governor in carrying out any other responsibility required by the federal Workforce Investment Act of 1998, as amended and the Workforce Innovation and Opportunity Act, successor legislation and amendments.

     (4)  The Mississippi State Workforce Investment Board shall coordinate all training programs and funds in the State of Mississippi.

     Each state agency director responsible for workforce training activities shall advise the Mississippi State Workforce Investment Board of appropriate federal and state requirements.  Each such state agency director shall remain responsible for the actions of his agency; however, each state agency and director shall work cooperatively, and shall be individually and collectively responsible to the Governor for the successful implementation of the statewide workforce investment system.  The Governor, as the Chief Executive Officer of the state, shall have complete authority to enforce cooperation among all entities within the state that utilize federal or state funding for the conduct of workforce development activities.

     (5)  The State Workforce Investment Board shall establish a Rules Committee.  The Rules Committee, in consultation with the full board, shall be designated as the body with the sole authority to promulgate rules and regulations for distribution of Mississippi Works Funds created in Section 71-5-353.  The State Workforce Investment Board Rules Committee shall develop and submit rules and regulations in accordance with the Mississippi Administrative Procedures Act, within sixty (60) days of March 21, 2016.  The State Workforce Investment Board Rules Committee shall consist of the following State Workforce Investment Board members:

          (a)  The Executive Director of the Mississippi Development Authority;

          (b)  The Executive Director of the Mississippi Department of Employment Security;

          (c)  The Executive Director of the Mississippi Community College Board;

          (d)  The Chair of the Mississippi Association of Community and Junior Colleges;

          (e)  The Chair of the State Workforce Investment Board;

          (f)  A representative from the workforce areas selected by the Mississippi Association of Workforce Areas, Inc.;

          (g)  A business representative currently serving on the board, selected by the Chairman of the State Workforce Investment Board; and 

          (h)  Two (2) legislators, who shall serve in a nonvoting capacity, one (1) of whom shall be appointed by the Lieutenant Governor from the membership of the Mississippi Senate and one (1) of whom shall be appointed by the Speaker of the House of Representatives from the membership of the Mississippi House of Representatives.

     (6)  The Mississippi State Workforce Investment Board shall create and implement performance metrics for the Mississippi Works Fund to determine the added value to the local and state economy and the contribution to the future growth of the state economy.  A report on the performance of the fund shall be made to the Governor, Lieutenant Governor and Speaker of the House of Representatives annually, throughout the life of the fund.

     SECTION 2.  Section 7-1-355, Mississippi Code of 1972, is brought forward as follows:

     7-1-355.  (1)  The Mississippi Department of Employment Security, Office of the Governor, is designated as the sole administrator of all programs for which the state is the prime sponsor under Title 1(B) of Public Law 105-220, Workforce Investment Act of 1998, and the regulations promulgated thereunder, and may take all necessary action to secure to this state the benefits of that legislation.  The Mississippi Department of Employment Security, Office of the Governor, may receive and disburse funds for those programs that become available to it from any source.

     (2)  The Mississippi Department of Employment Security, Office of the Governor, shall establish guidelines on the amount and/or percentage of indirect and/or administrative expenses by the local fiscal agent or the Workforce Development Center operator.  The Mississippi Department of Employment Security, Office of the Governor, shall develop an accountability system and make an annual report to the Legislature before December 31 of each year on Workforce Investment Act activities.  The report shall include, but is not limited to, the following:

          (a)  The total number of individuals served through the Workforce Development Centers and the percentage and number of individuals for which a quarterly follow-up is provided;

          (b)  The number of individuals who receive core services by each center;

          (c)  The number of individuals who receive intensive services by each center;

          (d)  The number of Workforce Investment Act vouchers issued by the Workforce Development Centers including:

              (i)  A list of schools and colleges to which these vouchers were issued and the average cost per school of the vouchers; and

              (ii)  A list of the types of programs for which these vouchers were issued;

          (e)  The number of individuals placed in a job through Workforce Development Centers;

          (f)  The monies and the amount retained for administrative and other costs received from Workforce Investment Act funds for each agency or organization that Workforce Investment Act funds flow through as a percentage and actual dollar amount of all Workforce Investment Act funds received.

     SECTION 3.  Section 7-1-357, Mississippi Code of 1972, is brought forward as follows:

     7-1-357.  The Division of Job Development and Training, Office of the Governor, is hereby authorized to cooperate with or enter into agreements with any agency, official, educational institution or political subdivision of this state, any agency or official of the government of the United States of America, or any private person, firm, partnership or corporation in order to carry out the provisions of Sections 7-1-351 through 7-1-371.

     SECTION 4.  Section 7-1-361, Mississippi Code of 1972, is brought forward as follows:

     7-1-361.  The Division of Job Development and Training, Office of the Governor, is authorized to promulgate such rules and regulations as may be necessary to carry out the provisions of Sections 7-1-351 through 7-1-371.

     SECTION 5.  Section 37-153-9, Mississippi Code of 1972, is brought forward as follows:

     37-153-9.  (1)  In accordance with the federal Workforce Investment Act of 1998, there shall be established, for each of the four (4) state workforce areas prescribed in Section 37-153-3 (2)(c), a local workforce investment board to set policy for the portion of the state workforce investment system within the local area and carry out the provisions of the Workforce Investment Act. 

     (2)  Each community college district shall have an affiliated District Workforce Development Council.  The district council shall be composed of a diverse group of fifteen (15) persons appointed by the board of trustees of the affiliated public community or junior college.  The members of each district council shall be selected from persons recommended by the chambers of commerce, employee groups, industrial foundations, community organizations and local governments located in the community college district of the affiliated community college with one (1) appointee being involved in basic literacy training.  However, at least eight (8) members of each district council shall be chief executive officers, plant managers that are representatives of employers in that district or service sector executives.  The District Workforce Development Council affiliated with each respective community or junior college shall advise the president of the community or junior college on the operation of its workforce development center/one-stop center.

     The Workforce Development Council shall have the following advisory duties:

          (a)  To develop an integrated and coordinated district workforce investment strategic plan that:

              (i)  Identifies workforce investment needs through job and employee assessments of local business and industry;

              (ii)  Sets short-term and long-term goals for industry-specific training and upgrading and for general development of the workforce; and

              (iii)  Provides for coordination of all training programs, including ABE/High School Equivalency Diploma, Skills Enhancement and Industrial Services, and shall work collaboratively with the State Literacy Resource Center;

          (b)  To coordinate and integrate delivery of training as provided by the workforce development plan;

          (c)  To assist business and industry management in the transition to a high-powered, quality organization;

          (d)  To encourage continuous improvement through evaluation and assessment; and

          (e)  To oversee development of an extensive marketing plan to the employer community.

     SECTION 6.  Section 37-153-13, Mississippi Code of 1972, is brought forward as follows:

     37-153-13.  The Mississippi Community College Board is designated as the primary support agency to the workforce development centers.  The Mississippi Community College Board may exercise the following powers:

          (a)  To provide the workforce development centers the assistance necessary to accomplish the purposes of this chapter;

          (b)  To provide the workforce development centers consistent standards and benchmarks to guide development of the local workforce development system and to provide a means by which the outcomes of local services can be measured;

          (c)  To develop the staff capacity to provide, broker or contract for the provision of technical assistance to the workforce development centers, including, but not limited to:

              (i)  Training local staff in methods of recruiting, assessment and career counseling;

              (ii)  Establishing rigorous and comprehensive local preemployment training programs;

              (iii)  Developing local institutional capacity to deliver total quality management training;

              (iv)  Developing local institutional capacity to transfer new technologists into the marketplace;

              (v)  Expanding the Skills Enhancement Program and improving the quality of adult literacy programs; and

              (vi)  Developing data for strategic planning;

          (d)  To collaborate with the Mississippi Development Authority and other economic development organizations to increase the community college systems' economic development potential;

          (e)  To administer presented and approved certification programs by the community colleges for tax credits and partnership funding for corporate training;

          (f)  To create and maintain an evaluation team that examines which kinds of curricula and programs and what forms of quality control of training are most productive so that the knowledge developed at one (1) institution of education can be transferred to others;

          (g)  To develop internal capacity to provide services and to contract for services from universities and other providers directly to local institutions;

          (h)  To develop and administer an incentive certification program;

          (i)  To develop and hire staff and purchase equipment necessary to accomplish the goals set forth in this section; and

          (j)  To collaborate, partner and contract for services with community-based organizations and disadvantaged businesses in the delivery of workforce training and career information especially to youth, as defined by the federal Workforce Investment Act, and to those adults who are in low income jobs or whose individual skill levels are so low as to be unable initially to be aided by a workforce development center.  Community-based organizations and disadvantaged businesses must meet performance-based certification requirements set by the Mississippi Community College Board.

     SECTION 7.  Section 71-5-353, Mississippi Code of 1972, is brought forward as follows:

     71-5-353.  (1)  (a)  Each employer shall pay unemployment insurance contributions equal to five and four-tenths percent (5.4%) of taxable wages paid by him each calendar year, except as may be otherwise provided in Section 71-5-361 and except that each newly subject employer shall pay unemployment insurance contributions at the rate of one percent (1%) of taxable wages, for his first year of liability, one and one-tenth percent (1.1%) of taxable wages for his second year of liability, and one and two-tenths percent (1.2%) of taxable wages for his third and subsequent years of liability unless the employer's experience-rating record has been chargeable throughout at least the twelve (12) consecutive calendar months ending on the most recent computation date at the time the rate for a year is determined; thereafter the employer's contribution rate shall be determined in accordance with the provisions of Section 71-5-355.

          (b)  Notwithstanding the newly subject employer contribution rate provided for in paragraph (a) of this subsection, the contribution rate of all newly subject employers shall be reduced by seven one-hundredths of one percent (.07%) for calendar year 2013 only.  The contribution rate of all newly subject employers shall be reduced by three one-hundredths of one percent (.03%) for calendar year 2014 only.  For purposes of this chapter, "newly subject employers" means employers whose unemployment insurance experience-rating record has not been chargeable throughout at least the twelve (12) consecutive calendar months ending on the most recent computation date at the time the contribution rate for a year is determined.

     (2)  (a)  (i)  There is hereby created in the Treasury of the State of Mississippi special funds to be known as the "Mississippi Workforce Enhancement Training Fund" and the "Mississippi Works Fund" which consist of funds collected pursuant to subsection (3) of this section.

              (ii)  Funds collected shall initially be deposited into the Mississippi Department of Employment Security bank account for clearing contribution collections and subsequently appropriate amounts shall be transferred to the Mississippi Workforce Investment and Training Fund Holding Account described in Section 71-5-453.  In the event any employer pays an amount insufficient to cover the total contributions due, the amounts due shall be satisfied in the following order:

                   1.  Unemployment contributions;

                   2.  Mississippi Workforce Enhancement Training contributions, State Workforce Investment contributions and the Mississippi Works contributions, known collectively as the Mississippi Workforce Investment and Training contributions, on a pro rata basis;

                   3.  Interest and damages; then

                   4.  Legal and processing costs.

     The amount of unemployment insurance contributions due for any period will be the amount due according to the actual computations unless the employer is participating in the MLPP.  In that event, the amount due is the MLPP amount computed by the department.

     Cost of collection and administration of the Mississippi Workforce Enhancement Training contribution, the State Workforce Investment contribution and the Mississippi Works contribution shall be allocated based on a plan approved by the United States Department of Labor (USDOL).  The Mississippi Community College Board shall pay the cost of collecting the Mississippi Workforce Enhancement Training contributions, the State Workforce Investment Board shall pay the cost of collecting the State Workforce Investment contributions and the Mississippi Department of Employment Security shall pay the cost of collecting the Mississippi Works contributions.  Payments shall be made semiannually with the cost allocated to each based on a USDOL approved plan on a pro rata basis, for periods ending in June and December of each year.  Payment shall be made by each organization to the department no later than sixty (60) days after the billing date.  Cost shall be allocated under the USDOL's approved plan and in the same ratio as each contribution type represents to the total authorized by subparagraph (ii)(2) of this paragraph to be collected for the period.

          (b)  Mississippi Workforce Enhancement Training contributions and State Workforce Investment contributions shall be distributed as follows:

              (i)  For calendar year 2014, ninety-four and seventy-five one-hundredths percent (94.75%) shall be distributed to the Mississippi Workforce Enhancement Training Fund and the remainder shall be distributed to the State Workforce Investment Board bank account;

              (ii)  For calendar years subsequent to calendar year 2014, ninety-three and seventy-five one-hundredths percent (93.75%) shall be distributed to the Mississippi Workforce Enhancement Training Fund and the remainder shall be distributed to the State Workforce Investment Board bank account;

              (iii)  Workforce Enhancement Training contributions and State Workforce Investment contributions for calendar years 2014 and 2015 shall be distributed as provided in subparagraphs (i) and (ii) of this paragraph regardless of when the contributions were collected.

          (c)  All contributions collected for the State Workforce Enhancement Training Fund, the State Workforce Investment Fund and the Mississippi Works Fund will be initially deposited into the Mississippi Department of Employment Security bank account for clearing contribution collections and subsequently transferred to the Workforce Investment and Training Holding Account and will be held by the Mississippi Department of Employment Security in such account for a period of not less than thirty (30) days.  After such period, the Mississippi Workforce Enhancement Training contributions shall be transferred to the Mississippi Community College Board Treasury Account, the State Workforce Investment contributions and the Mississippi Works contributions shall be transferred to the Mississippi Department of Employment Security Mississippi Works Treasury Account in the same ratio as each contribution type represents to the total authorized by paragraph (a)(ii)(2) of this subsection to be collected for the period and within the time frame determined by the department; however, except in cases of extraordinary circumstances, these funds shall be transferred within fifteen (15) days.  Interest earnings or interest credits on deposit amounts in the Workforce Investment and Training Holding Account shall be retained in the account to pay the banking costs of the account.  If after the period of twelve (12) months interest earnings less banking costs exceeds Ten Thousand Dollars ($10,000.00), such excess amounts shall be transferred to the respective accounts within thirty (30) days following the end of each calendar year on the basis described in paragraph (b) of this subsection.  Interest earnings and/or interest credits for the State Workforce Investments funds shall be used for the payment of banking costs and excess amounts shall be used in accordance with the rules and regulations of the State Workforce Investment Board expenditure policies.

          (d)  All enforcement procedures for the collection of delinquent unemployment contributions contained in Sections 71-5-363 through 71-5-383 shall be applicable in all respects for collections of delinquent unemployment insurance contributions designated for the Unemployment Compensation Fund, the Mississippi Workforce Enhancement Training Fund, the State Workforce Investment Board Fund and the Mississippi Works Fund.

          (e)  (i)  Except as otherwise provided for in this subparagraph (i), all monies deposited into the Mississippi Workforce Enhancement Training Fund Treasury Account shall be utilized exclusively by the Mississippi Community College Board in accordance with the Workforce Training Act of 1994 (Section 37-153-1 et seq.), policies approved by the Mississippi Community College Board and the annual plan developed by the State Workforce Investment Board for the following purposes:  to provide training at no charge to employers and employees in order to enhance employee productivity.  Such training may be subject to a minimal administrative fee to be paid from the Mississippi Workforce Enhancement Training Fund as established by the State Workforce Investment Board subject to the advice of the Mississippi Community College Board.  The initial priority of these funds shall be for the benefit of existing businesses located within the state.  Employers may request training for existing employees and/or newly hired employees from the Mississippi Community College Board.  The Mississippi Community College Board will be responsible for approving the training.  A portion of the funds collected for the Mississippi Workforce Enhancement Training Fund shall be used for the development of performance measures to measure the effectiveness of the use of the Mississippi Workforce Enhancement Training Fund dollars.  These performance measures shall be uniform for all community colleges and shall be reported to the Governor, Lieutenant Governor and members of the Legislature.  Nothing in this section or elsewhere in law shall be interpreted as giving the State Workforce Investment Board authority to direct the Mississippi Community College Board or individual community or junior colleges on how to expend money for workforce training, whether such money comes from the Mississippi Workforce Enhancement Training Fund, is appropriated by the Legislature to the Mississippi Community College Board for workforce training or comes from other sources.  The Mississippi Community College Board, individual community or junior colleges and the State Workforce Investment Board shall cooperate with each other and with other state agencies to promote effective workforce training in Mississippi.  Any subsequent changes to these performance measures shall also be reported to the Governor, Lieutenant Governor and members of the Legislature.  A performance report for each community college, based upon these measures, shall be submitted annually to the Governor, Lieutenant Governor and members of the Legislature.

              (ii)  Except as otherwise provided in this paragraph (e), all funds deposited into the State Workforce Investment Board bank account shall be used for administration of State Workforce Investment Board business, grants related to training, and other projects as determined appropriate by the State Workforce Investment Board and shall be nonexpiring.  Policies for grants and other projects shall be approved through a majority vote of the State Workforce Investment Board.

              (iii)  All funds deposited into the Mississippi Department of Employment Security Mississippi Works Fund shall be disbursed exclusively by the Executive Director of the Mississippi Department of Employment Security, in accordance with the rules and regulations promulgated by the State Workforce Investment Board Rules Committee in support of workforce training activities approved by the Mississippi Development Authority in support of economic development activities.  Funds allocated by the executive director under this subparagraph (iii) shall only be utilized for the training of unemployed persons, for immediate training needs for the net new jobs created by an employer, for the retention of jobs or to create a work-ready applicant pool of Mississippians with credentials and/or postsecondary education in accordance with the state's Workforce Investment and Opportunity Act plan.  The executive director shall give priority to the training of unemployed persons.  Not more than twenty-five percent (25%) of the funds may be allocated for the retention of jobs and/or creation of a work-ready applicant pool.  Not more than Five Hundred Thousand Dollars ($500,000.00) may be allocated annually for the training needs of any one (1) employer.  The Mississippi Public Community College System and its partners shall be the primary entities to facilitate training.  In no case shall these funds be used to supplant workforce funds available from any other sources, including, but not limited to, local, state or federal sources that are available for workforce training and development.  Training conducted utilizing these Mississippi Works funds may be subject to a minimal administrative fee to be paid from the Mississippi Works Fund as authorized by the Mississippi Department of Employment Security.  All costs associated with the administration of these funds shall be reimbursed to the Mississippi Department of Employment Security from the Mississippi Works Fund.

              (iv)  1.  The Department of Employment Security shall be the fiscal agent for the receipt and disbursement of all funds in the State Workforce Investment Board bank account.

                   2.  In managing the State Workforce Investment Board bank account, the department shall ensure that any funds expended for contractual services rendered to the State Workforce Investment Board shall be paid only to service providers who have been selected on a competitive basis.  Any contract for services entered into using funds from the Workforce Investment Fund bank account shall contain the deliverables stated in terms that allow for the assessment of work performance against measurable performance standards and shall include milestones for completion of each deliverable under the contract.  For each contract for services entered into by the State Workforce Investment Board, the board shall develop a quality assurance surveillance plan that specifies quality control obligations of the contractor as well as measurable inspection and acceptance criteria corresponding to the performance standards contained in the contract's statement of work.

                   3.  Any commodities procured for the board shall be procured in accordance with the provisions of Section 31-7-13.

              (v)  In addition to other expenditures, the department shall expend from the State Workforce Investment Board bank account for the use and benefit of the State Workforce Investment Board, such funds as are necessary to prepare and develop a study of workforce development needs that will consist of the following:

                   1.  An identification of the state's workforce development needs through a well-documented quantitative and qualitative analysis of:

                        a.  The current and projected workforce training needs of existing and identified potential Mississippi industries, with priority given to assessing the needs of existing in-state industry and business.  Where possible, the analysis should include a verification and expansion of existing information previously developed by workforce training and service providers, as well as analysis of existing workforce data, such as the data collected through the Statewide Longitudinal Data System.

                        b.  The needs of the state's workers and residents requiring additional workforce training to improve their work skills in order to compete for better employment opportunities, including a priority-based analysis of the critical factors currently limiting the state's ability to provide a trained and ready workforce.

                        c.  The needs of workforce service and training providers in improving their ability to offer industry-relevant training, including an assessment of the practical limits of keeping training programs on the leading edge and eliminating those programs with marginal workforce relevance.

                   2.  An assessment of Mississippi's current workforce development service delivery structure relative to the needs quantified in this subparagraph, including:

                        a.  Development of a list of strengths/weaknesses/opportunities/threats (SWOT) of the current workforce development delivery system relative to the identified needs;

                        b.  Identification of strategic options for workforce development services based on the results of the SWOT analysis; and

                        c.  Development of results-oriented measures for each option that can be baselined and, if implemented, tracked over time, with quantifiable milestones and goals.

                   3.  Preparation of a report presenting all subjects set out in this subparagraph to be delivered to the Lieutenant Governor, Speaker of the House of Representatives, Chairman of the Senate Finance Committee and Chairman of the House Appropriations Committee no later than February 1, 2015.

                   4.  Following the preparation of the report, the State Workforce Investment Board shall make a recommendation to the House and Senate Appropriations Committees on future uses of funds deposited to the State Workforce Investment Fund account. Such future uses may include:

                        a.  The development of promotion strategies for workforce development programs;

                        b.  Initiatives designed to reduce the state's dropout rate including the development of a statewide career awareness program;

                        c.  The long-term monitoring of the state's workforce development programs to determine whether they are addressing the needs of business, industry, and the workers of the state; and

                        d.  The study of the potential restructuring of the state's workforce programs and delivery systems.

     (3)  (a)  (i)  Mississippi Workforce Enhancement Training contributions and State Workforce Investment contributions shall be collected at the following rates:

                   1.  For calendar year 2014 only, the rate of nineteen one-hundredths of one percent (.19%) based upon taxable wages of which eighteen one-hundredths of one percent (.18%) shall be the Workforce Enhancement Training contribution and one-hundredths of one percent (.01%) shall be the State Workforce Investment contribution; and

                   2.  For calendar year 2015 only, the rate of sixteen one-hundredths of one percent (.16%), based upon taxable wages of which fifteen one-hundredths of one percent (.15%) shall be the Workforce Enhancement Training contribution and one-hundredths of one percent (.01%) shall be the State Workforce Investment contribution.

              (ii)  Mississippi Workforce Enhancement Training contributions, State Workforce Investment contributions and Mississippi Works contributions shall be collected at the following rates:

                   1.  For calendar year 2016 only, at a rate of twenty-four one-hundredths percent (.24%), based upon taxable wages, of which fifteen one-hundredths percent (.15%) shall be the Workforce Enhancement Training contribution, one-hundredths of one percent (.01%) shall be the State Workforce Investment contribution and eight one-hundredths percent (.08%) shall be the Mississippi Works contribution.

                   2.  For calendar years subsequent to calendar year 2016, at a rate of twenty one-hundredths percent (.20%), based upon taxable wages, of which fifteen one-hundredths percent (.15%) shall be the Workforce Enhancement Training contribution, one-hundredths of one percent (.01%) shall be the State Workforce Investment contribution and four one-hundredths percent (.04%) shall be the Mississippi Works contribution.  The Mississippi Works contribution shall be collected for calendar years in which the general experience ratio, adjusted on the basis of the trust fund adjustment factor and reduced by fifty percent (50%), results in a general experience rate of less than two-tenths percent (.2%).  In all other years the Mississippi Works contribution shall not be in effect.

              (iii)  The Mississippi Workforce Enhancement Training Fund contribution, the State Workforce Investment contribution and the Mississippi Works contribution shall be in addition to the general experience rate plus the individual experience rate of all employers but shall not be charged to reimbursing or rate-paying political subdivisions or institutions of higher learning, or reimbursing nonprofit organizations, as described in Sections 71-5-357 and 71-5-359.

          (b)  All Mississippi Workforce Enhancement Training contributions, State Workforce Investment contributions and Mississippi Works contributions collected shall be deposited initially into the Mississippi Department of Employment Security bank account for clearing contribution collections and shall within two (2) business days be transferred to the Workforce Investment and Training Holding Account.  Any Mississippi Workforce Enhancement Training Fund and/or State Workforce Investment Board bank account and/or Mississippi Works Fund transactions from the Mississippi Department of Employment Security bank account for clearing contribution collections that are deposited into the Workforce Investment and Training Fund Holding Account and are not honored by a financial institution will be transferred back to the Mississippi Department of Employment Security bank account for clearing contribution collections out of funds in the Mississippi Workforce Investment and Training Fund Holding Account.

          (c)  Suspension of the Workforce Enhancement Training Fund contributions required pursuant to this chapter shall occur if the insured unemployment rate exceeds an average of five and five-tenths percent (5.5%) for the three (3) consecutive months immediately preceding the effective date of the new rate year following such occurrence and shall remain suspended throughout the duration of that rate year.  Such suspension shall continue until such time as the three (3) consecutive months immediately preceding the effective date of the next rate year that has an insured unemployment rate of less than an average of four and five-tenths percent (4.5%).  Upon such occurrence, reactivation shall be effective upon the first day of the rate year following the event that lifts suspension and shall be in effect for that year and shall continue until such time as a subsequent suspension event as described in this chapter occurs.

     (4)  All collections due or accrued prior to any suspension of the Mississippi Workforce Enhancement Training Fund will be collected based upon the law at the time the contributions accrued, regardless of when they are actually collected.

     SECTION 8.  Section 71-5-453, Mississippi Code of 1972, is brought forward as follows:

     71-5-453.  The department shall be the treasurer and custodian of the fund, and shall administer such fund in accordance with the directions of the department, and shall issue its warrants upon it in accordance with such regulations as the department shall prescribe.  The department shall maintain within the fund three (3) separate accounts:  (a) a clearing account, (b) an unemployment trust fund account, and (c) a benefit payment account.  All monies payable to the fund, upon receipt thereof by the department, shall be immediately deposited in the clearing account.  Refunds payable pursuant to Section 71-5-383 may be paid from the clearing account by the department.  Transfers pursuant to Section 71-5-114 of all interest, penalties and damages collected shall be made to the Special Employment Security Administration Fund as soon as practicable after the end of each calendar quarter.  Workforce Enhancement Training contributions, State Workforce Investment contributions and Mississippi Works contributions shall be deposited into the Workforce Investment and Training Holding Account as described in this section.  All other monies in the clearing account shall be immediately deposited with the Secretary of the Treasury of the United States of America to the Unemployment Trust Fund account for the State of Mississippi, established and maintained pursuant to Section 904 of the Social Security Act, as amended, any provisions of law in this state relating to the deposit, administration, release or disbursement of monies in the possession or custody of this state to the contrary notwithstanding.  The benefit account shall consist of all monies requisitioned from this state's account in the Unemployment Trust Fund.  Except as herein otherwise provided, monies in the clearing and benefit accounts may be deposited by the department, in any bank or public depository in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund.  The department shall be liable for the faithful performance of its duties in connection with the Unemployment Compensation Fund under this chapter.  A Workforce Investment and Training Holding Account shall be established by and maintained under the control of the Mississippi Department of Employment Security.  Contributions collected pursuant to the provisions in this chapter for the Workforce Enhancement Training Fund, State Workforce Investment Fund and the Mississippi Works Fund shall be transferred from the clearing account into the Workforce Investment and Training Holding Account on the same schedule and under the same conditions as funds transferred to the Unemployment Compensation Fund.  Such funds shall remain on deposit in the holding account for a period of thirty (30) days.  After such period, Workforce Enhancement Training contributions shall be transferred to the appropriate Mississippi Community College Board Treasury Account by the department.  The State Workforce Investment contributions shall be transferred to the State Workforce Investment Board bank account established by the department, and the department shall have the authority to deposit and disburse funds from the State Workforce Investment Board bank account as directed by the State Workforce Investment Board.  The Mississippi Works contributions shall be transferred to the Mississippi Department of Employment Security Treasury Account for the Mississippi Works Fund.  Such transfers shall occur within fifteen (15) days after the funds have resided in the Workforce Investment and Training Holding Account for thirty (30) days.  One (1) such transfer shall be made monthly, but the department, in its discretion, may make additional transfers in any month.  In the event such funds transferred are subsequently determined to be erroneously paid or collected, or if deposit of such funds is denied or rejected by the banking institution for any reason, or deposits are unable to clear drawer's account for any reason, the funds must be reimbursed by the recipient of such funds within thirty (30) days of mailing of notice by the department demanding such refund, unless funds are available in the Workforce Investment and Training Holding Account.  In that event such amounts shall be immediately withdrawn from the Workforce Investment and Training Holding Account by the department and redeposited into the clearing account.

     SECTION 9.  This act shall take effect and be in force from and after July 1, 2019.