MISSISSIPPI LEGISLATURE
2020 Regular Session
To: Economic and Workforce Development
By: Senator(s) Parker, DeBar, Blackwell, Jackson (11th), Frazier, Tate, Seymour, Suber, Witherspoon, Butler, Norwood, Branning
AN ACT TO AMEND SECTION 37-153-5, MISSISSIPPI CODE OF 1972, TO DEFINE "OFFICE" AS THE MISSISSIPPI OFFICE OF WORKFORCE DEVELOPMENT; TO AMEND SECTION 37-153-7, MISSISSIPPI CODE OF 1972, TO CREATE THE OFFICE AND PROVIDE THAT THE MISSISSIPPI STATE WORKFORCE INVESTMENT BOARD SHALL SERVE AS THE ADVISORY BOARD FOR THE OFFICE; TO REVISE THE MEMBERSHIP AND DUTIES OF THE MISSISSIPPI STATE WORKFORCE INVESTMENT BOARD; TO REQUIRE EACH STATE AGENCY, DEPARTMENT AND INSTITUTION TO REPORT ANY MONIES RECEIVED FOR WORKFORCE TRAINING ACTIVITIES OR CAREER AND TECHNICAL EDUCATION AND AN ITEMIZATION OF HOW THOSE MONIES WERE SPENT TO THE MISSISSIPPI STATE WORKFORCE INVESTMENT BOARD; TO REQUIRE THE MISSISSIPPI STATE WORKFORCE INVESTMENT BOARD TO COMPILE THE DATA AND PROVIDE A REPORT OF THE MONIES AND EXPENDITURES TO THE CHAIRS OF THE HOUSE AND SENATE APPROPRIATIONS COMMITTEE, THE CHAIR OF THE HOUSE WORKFORCE DEVELOPMENT COMMITTEE AND THE CHAIR OF THE SENATE ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE BY OCTOBER 1 OF EACH YEAR; TO REPLACE THE RULES COMMITTEE OF THE STATE WORKFORCE INVESTMENT BOARD WITH AN EXECUTIVE COMMITTEE, AND TO DETERMINE THE MEMBERSHIP AND DUTIES OF THE EXECUTIVE COMMITTEE; TO PROVIDE THAT THE EXECUTIVE COMMITTEE SHALL SELECT AN EXECUTIVE DIRECTOR OF THE OFFICE, AND TO ESTABLISH THE QUALIFICATIONS AND DUTIES OF THE EXECUTIVE DIRECTOR; TO PROVIDE THAT THE OFFICE SHALL COLLABORATE WITH THE MISSISSIPPI COMMUNITY COLLEGE BOARD IN ADMINISTERING AND OVERSEEING THE MISSISSIPPI WORKFORCE ENHANCEMENT TRAINING FUND AND MISSISSIPPI WORKS FUND; TO REQUIRE THE OFFICE TO FILE AN ANNUAL REPORT WITH THE GOVERNOR, SECRETARY OF STATE AND LEGISLATURE BY OCTOBER 1 OF EACH YEAR REGARDING ALL FUNDS APPROVED TO BE EXPENDED ON WORKFORCE TRAINING DURING THE PRIOR CALENDAR YEAR; TO AMEND SECTIONS 37-153-11, 37-153-13, 71-5-353 AND 71-5-453, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE ABOVE; TO AMEND SECTION 60, CHAPTER 572, LAWS OF 2004, AS LAST AMENDED BY SECTION 58, CHAPTER 451, LAWS OF 2019, WHICH IS THE REPEALER FOR THE CHAPTER, TO EXCLUDE THE SECTIONS OF THE CHAPTER CORRESPONDING TO SECTIONS 37-153-1 THROUGH 37-153-13; TO CREATE NEW SECTION 37-153-17, MISSISSIPPI CODE OF 1972, TO CODIFY THE REPEALER OF SECTIONS 37-153-1 THROUGH 37-153-13, AND TO ADD SECTION 37-153-15 AS SUBJECT TO THE REPEALER; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 37-153-5, Mississippi Code of 1972, is amended as follows:
37-153-5. For purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed in this section unless the context clearly indicates otherwise:
(a) "State
board" or "board" means the Mississippi State Workforce
Investment Board * * *.
(b) "District
councils" means the Local Workforce Development Councils * * *.
(c) "Local workforce investment board" means the board that oversees the workforce development activities of local workforce areas under the federal Workforce Investment Act.
(d) "Office" means the Mississippi Office of Workforce Development, housed at the Department of Finance and Administration.
SECTION 2. Section 37-153-7, Mississippi Code of 1972, is amended as follows:
37-153-7. (1) There is
created the Mississippi Office of Workforce Development and the Mississippi
State Workforce Investment Board, which shall serve as the advisory board
for the office. The Mississippi State Workforce Investment Board shall be
composed of * * * thirty-one (31) voting members, of which a majority
shall be representatives of business and industry in accordance with the
federal Workforce * * * Innovation and Opportunity Act, or any
successive acts.
(2) The members of the State Workforce Investment Board shall include:
(a) The Governor * * *, or his designee;
* * *
(b) Nineteen (19) members, appointed by the Governor, of whom:
(i) A majority shall be representatives of businesses in the state, who:
1. Are owners of businesses, chief executives or operating officers of businesses, or other business executives or employers with optimum policymaking or hiring authority, and who, in addition, may be members of a local board described in Section 3122(b)(2)(A)(i) of the federal Workforce Innovation and Opportunity Act. At least two (2) of the members appointed under this item 1. shall be small business owners, chief executives or operating officers of businesses with less than fifty (50) employees;
2. Represent businesses, including small businesses, or organizations representing businesses, which provide employment opportunities that, at a minimum, include high-quality, work-relevant training and development in high-demand industry sectors or occupations in the state; and
3. Are appointed from among individuals nominated by state business organizations and business trade associations;
(ii) Not less than twenty percent (20%) shall consist of representatives of the workforce within the state, which:
1. Includes labor organization representatives who have been nominated by state labor federations;
2. Includes a labor organization member or training director from an apprenticeship program in the state, which shall be a joint labor-management apprenticeship program if such a program exists in the state;
3. May include representatives of community-based organizations, including organizations serving veterans or providing or supporting competitive, integrated employment for individuals with disabilities, who have demonstrated experience and expertise in addressing employment, training or education needs of individuals with barriers to employment; and
4. May include representatives of organizations, including organizations serving out-of-school youth, who have demonstrated experience or expertise in addressing the employment, training or education needs of eligible youth;
(iii) The balance shall include government representatives, including the lead state officials with primary responsibility for core programs, and chief elected officials (collectively representing both cities and counties, where appropriate);
(c) Two (2) representatives of businesses in the state appointed by the Lieutenant Governor;
(d) Two (2) representatives of businesses in the state appointed by the Governor from a list of three (3) recommendations from the Speaker of the House; and
( * * *e) The following state officials * * *:
(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 Community College Board; * * *
(vi) The President of the Community College Association; and
(vii) The Commissioner of the Institutions of Higher Learning.
* * *
(f) One (1) senator, appointed by the Lieutenant Governor, and one (1) representative, appointed by the Speaker of the House, shall serve on the state board in a nonvoting capacity.
(g) The Governor may appoint additional members if required by the federal Workforce Innovation and Opportunity Act, or any successive acts.
(h) Members of the board shall serve a term of four (4) years, and shall not serve more than three (3) consecutive terms.
( * * *i) The membership of the board shall
reflect the diversity of the State of Mississippi.
( * * *j) The Governor shall designate the
Chairman of the Mississippi State Workforce Investment Board from among the business
and industry voting members of the board, and a quorum of the board shall
consist of a majority of the voting members of the board.
( * * *k) The voting members of the board who
are not state employees shall be entitled to reimbursement of their reasonable
expenses * * * in the manner and amount specified in Section 25-3-41 and
shall be entitled to receive per diem compensation as authorized in Section 25-3-69.
(3) Members of the state board may be recalled by their appointing authority for cause, including a felony conviction, fraudulent or dishonest acts or gross abuse of discretion, failure to meet board member qualifications, or chronic failure to attend board meetings.
( * * *4) 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.
( * * *5) The Mississippi State Workforce
Investment Board shall have the following duties. These duties are intended
to be consistent with the scope of duties provided in the federal Workforce
Innovation and Opportunity Act, amendments and successor legislation to this
act, and other relevant federal law:
(a) Through the office, develop and submit to the Governor, Lieutenant Governor and Speaker of the House 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, Lieutenant Governor and Speaker of the House 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 to the office 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) 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;
( * * *h) To monitor the effectiveness of the
workforce development centers and WIN job centers;
( * * *i) 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;
( * * *j) 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;
( * * *k) To provide periodic assessments on
effectiveness and results of the overall Mississippi comprehensive workforce
development system and district councils; * * *
(l) Develop broad statewide development goals, including a goal to raise the state's labor force participation rate;
(m) Perform a comprehensive review of Mississippi's workforce development efforts, including the amount spent and effectiveness of programs supported by state or federal money; and
( * * *n) 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.
( * * *6) The Mississippi State Workforce
Investment Board shall coordinate all training programs and funds * * * within its
purview, consistent with the federal Workforce Investment Act, Workforce
Innovation and Opportunity Act, amendments and successor legislation to these
acts, and other relevant federal law.
Each state agency director
responsible for workforce training activities shall advise the Mississippi Office
of Workforce Development and the State Workforce Investment Board of
appropriate federal and state requirements. Each state agency, department
and institution shall report any monies received for workforce training
activities or career and technical education and a detailed itemization of how
those monies were spent to the state board. The board shall compile the data
and provide a report of the monies and expenditures to the Chairs of the House
and Senate Appropriations Committee, the Chair of the House Workforce
Development Committee and the Chair of the Senate Economic and Workforce
Development Committee by October 1 of each year. Each such state agency
director shall remain responsible for the actions of his agency; however, each
state agency and director shall work cooperatively * * * to fulfill the state's goals.
( * * *7) The State Workforce Investment
Board shall establish * * * an executive committee * * *,
which shall consist of the following State Workforce Investment Board
members:
(a) The * * * Chair of the State Workforce Investment Board;
(b) * * * Two (2) business representatives currently
serving on the state board selected by the Governor;
(c) * * * The two (2) business representatives currently
serving on the state board appointed by the Lieutenant Governor;
(d) * * * The two (2) business representatives currently
serving on the state board appointed by the Governor from a list of three (3)
recommendations from the Speaker of the House;
* * *
( * * *e) The 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.
* * *
(8) The executive committee shall select an executive director of the Office of Workforce Development, with the advice and consent of a majority of the State Workforce Investment Board. The executive committee shall seek input from economic development organizations across the state when selecting the executive director. The executive director shall:
(a) Be a person with extensive experience in development of economic, human and physical resources, and promotion of industrial and commercial development. The executive director shall have a bachelor's degree from a state-accredited institution and no less than eight (8) years of professional experience related to workforce or economic development;
(b) Perform the functions necessary for the daily operation and administration of the office, with oversight from the executive committee and the State Workforce Investment Board, to fulfill the duties of the state board as described in this act;
(c) Hire staff needed for the performance of his or her duties under this act. The executive director, with approval from the executive committee, shall set the compensation of any hired employees from any funds made available for that purpose;
(d) Enter any part of the Mississippi Community College Board, individual community and junior colleges, or other workforce training facilities operated by the state or its subdivisions;
(e) Serve at the will and pleasure of the executive committee;
(f) Promulgate rules and regulations, subject to oversight by the executive committee, not inconsistent with this chapter, as may be necessary to enforce the provisions in this act; and
(g) Perform any other actions he or she, in consultation with the executive committee, deems necessary to fulfill the duties under this act.
(9) The Office of Workforce Development and Mississippi Community College Board shall collaborate in the administration and oversight of the Mississippi Workforce Enhancement Training Fund and Mississippi Works Fund, as described in Section 71-5-353. The executive director shall maintain complete and exclusive operational control of the office's functions.
(10) The office shall file an annual report with the Governor, Secretary of State, President of the Senate, Secretary of the Senate, Speaker of the House, and Clerk of the House not later than October 1 of each year regarding all funds approved by the office to be expended on workforce training during the prior calendar year. The report shall include:
(a) Information on the performance of the Mississippi Workforce Enhancement Training Fund and the Mississippi Works Fund, in terms of adding value to the local and state economy, the contribution to future growth of the state economy, and movement toward state goals, including increasing the labor force participation rate; and
(b) With respect to specific workforce training projects:
(i) The location of the training;
(ii) The amount allocated to the project;
(iii) The purpose of the project;
(iv) The specific business entity that is the beneficiary of the project; and
(v) The number of employees intended to be trained and actually trained, if applicable, in the course of the project.
(c) All information concerning a proposed project which is provided to the executive director shall be kept confidential. Such confidentiality shall not limit disclosure under the Mississippi Public Records Act of 1983 of records describing the nature, quantity, cost or other pertinent information related to the activities of, or services performed using, the Mississippi Workforce Enhancement Training Fund or the Mississippi Works Fund.
(11) Nothing in this act shall void or otherwise interrupt any contract, lease, grant or other agreement previously entered into by the State Workforce Investment Board, Mississippi Community College Board, individual community or junior colleges, or other entities.
SECTION 3. Section 37-153-11, Mississippi Code of 1972, is amended as follows:
37-153-11. (1) There are created workforce development centers to provide assessment, training and placement services to individuals needing retraining, training and upgrading for small business and local industry. Each workforce development center shall be affiliated with a separate public community or junior college district and shall coordinate with the Office of Workforce Development.
(2) Each workforce development center shall be staffed and organized locally by the affiliated community college. The workforce development center shall serve as staff to the affiliated district council.
(3) Each workforce development center, working in concert with its affiliated district council, shall offer and arrange services to accomplish the purposes of this chapter, including, but not limited to, the following:
(a) For individuals needing training and retraining:
(i) Recruiting, assessing, counseling and referring to training or jobs;
(ii) Preemployment training for those with no experience in the private enterprise system;
(iii) Basic literacy skills training and high school equivalency education;
(iv) Vocational and technical training, full-time or part-time; and
(v) Short-term skills training for educationally and economically disadvantaged adults in cooperation with federally established employment and training programs;
(b) For specific small businesses, industries or firms within the district:
(i) Job analysis, testing and curriculum development;
(ii) Development of specific long-range training plans;
(iii) Industry or firm-related preemployment training;
(iv) Workplace basic skills and literacy training;
(v) Customized skills training;
(vi) Assistance in developing the capacity for total quality management training;
(vii) Technology transfer information and referral services to business of local applications of new research in cooperation with the University Research Center, the state's universities and other laboratories; and
(viii) Development of business plans;
(c) For public schools within the district technical assistance to secondary schools in curriculum coordination, development of tech prep programs, instructional development and resource coordination; and
(d) For economic development, a local forum and resource center for all local industrial development groups to meet and promote regional economic development.
(4) Each workforce development center shall compile and make accessible to the Office of Workforce Development and Mississippi State Workforce Investment Board necessary information for use in evaluating outcomes of its efforts and in improving the quality of programs at each community college, and shall include information on literacy initiatives. Each workforce development center shall, through an interagency management information system, maintain records on new small businesses, placement, length of time on the job after placement and wage rates of those placed in a form containing such information as established by the state council.
(5) The Mississippi Community College Board is authorized to designate one or more workforce development centers at the request of affiliated community or junior colleges to provide skills training to individuals to enhance their ability to be employed in the motion picture industry in this state.
SECTION 4. Section 37-153-13, Mississippi Code of 1972, is amended as follows:
37-153-13. The Mississippi Community College Board, in collaboration with the Office of Workforce Development, is designated as the primary support agency to the workforce development centers. The Mississippi Community College Board, in collaboration with the Office of Workforce Development, 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, Office of Workforce Development,
individual community and junior colleges, and other economic development and
educational organizations and political subdivisions to increase the * * * economic
development potential and the state's labor force participation rate;
(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, in collaboration with the Office of Workforce Development.
SECTION 5. Section 71-5-353, Mississippi Code of 1972, is amended 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, with oversight provided by the
Mississippi Office of Workforce Development, 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 * * * directed by the
Mississippi * * * Office of Workforce Development, in collaboration
with the Mississippi Community College Board, in accordance with the
Workforce Training Act of 1994 (Section 37-153-1 et seq.) * * * and under policies approved by the
Mississippi * * * Office of Workforce Development for the following
purposes: to provide training * * * in collaboration with the
Mississippi Community College Board and individual community and junior
colleges 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 * * * Office of Workforce Development. 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 * * * Office of Workforce
Development. The office, in consultation with 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 * * * training projects
and shall be reported to the Governor, Lieutenant Governor, Speaker of the
House, and members of the Legislature. Nothing in this section or
elsewhere in law shall be interpreted as giving the Office of Workforce
Development or State Workforce Investment Board authority to direct the
Mississippi Community College Board or individual community or junior colleges
on how to expend * * * other funds, aside from funds appropriated to the Mississippi
Workforce Enhancement Training Fund and Mississippi Works Fund, appropriated
or received for workforce training * * *. The Mississippi Office of Workforce Development,
Mississippi Community College Board, individual community or junior
colleges * * *,
State Workforce Investment Board and other agencies implementing or
coordinating state-funded workforce development programs under state law
shall cooperate with each other * * * to promote
effective workforce training in Mississippi, under the direction of the
office. Any subsequent changes to these
performance measures shall also be reported to the Governor, Lieutenant
Governor, Speaker of the House, and members of the Legislature. A
performance report for each training project and community college,
based upon these measures, shall be submitted annually to the Governor,
Lieutenant Governor, Speaker of the House, 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, the Office of Workforce Development, 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 * * * Office of Workforce
Development in support of workforce training activities approved by the
Mississippi * * * Office of Workforce Development 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 of the Office of
Workforce Development 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 Office of Workforce Development, in collaboration with
the Mississippi Public Community College System
and its partners, shall be the primary * * *
entity 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 * * * Office of * * * Workforce
Development. 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, subject to the administrative oversight of the Office of Workforce Development.
2. In
managing the State Workforce Investment Board bank account, the * * * Office of Workforce Development,
in coordination with the Mississippi Department of Employment Security as fiscal
agent, shall ensure that any funds expended for contractual services
rendered to the * * * Office of Workforce Development
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 * * * Office of Workforce Development, the * * * office 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 * * * office shall be procured in
accordance with the provisions of Section 31-7-13.
(v) In addition to
other expenditures, the * * * department Office of Workforce Development shall
expend from the State Workforce Investment Board bank account for the use and
benefit of the * * * Office of Workforce Development,
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 6. Section 71-5-453, Mississippi Code of 1972, is amended 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, with oversight provided by the Mississippi
Office of Workforce Development, 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 7. Section 60, Chapter 572, Laws of 2004, as amended by Section 58, Chapter 30, Laws of the First Extraordinary Session of 2008, as amended by Section 58, Chapter 559, Laws of 2010 Regular Session, as amended by Section 59, Chapter 471, Laws of 2011, as amended by Section 58, Chapter 515, Laws of 2012, as amended by Section 58, Chapter 451, Laws of 2019, is amended as follows:
Section 60. Sections 8 through 59 of this act shall stand repealed on July 1, 2023.
SECTION 8. The following shall be codified as Section 37-153-17, Mississippi Code of 1972:
37-153-17. Sections 37-153-1, 37-153-3, 37-153-5, 37-153-7, 37-153-9, 37-153-11, 37-153-13 and 37-153-15 shall stand repealed on July 1, 2023.
SECTION 9. This act shall take effect and be in force from and after July 1, 2020.