MISSISSIPPI LEGISLATURE

2022 Regular Session

To: Economic and Workforce Development; Appropriations

By: Senator(s) Parker, Moran

Senate Bill 2721

AN ACT TO CREATE THE AMERICAN RESCUE PLAN ACT (ARPA) WORKFORCE DEVELOPMENT PROGRAM; TO STATE LEGISLATIVE FINDINGS AND INTENT; TO PROVIDE THAT THE PROGRAM SHALL BE DIRECTED BY THE OFFICE OF WORKFORCE DEVELOPMENT FOR THE PURPOSE OF PROVIDING EDUCATION AND TRAINING TO CITIZENS SEEKING EMPLOYMENT IN HIGH-DEMAND, HIGH-WAGE INDUSTRIES IN THE STATE WHICH WERE IMPACTED BY THE DISRUPTION TO THE ECONOMY AND WORKFORCE CAUSED BY COVID-19; TO PROVIDE THAT, SUBJECT TO APPROPRIATION BY THE LEGISLATURE, ALLOCATIONS TO RECIPIENTS SHALL BE AWARDED BY THE OFFICE THROUGH AN APPLICATION PROCESS; TO SPECIFY REQUIREMENTS FOR APPLICANTS; TO SPECIFY THE RESPONSIBILITIES OF THE OFFICE OF WORKFORCE DEVELOPMENT IN ADMINISTERING THE PROGRAM; TO CREATE AS A SPECIAL FUND IN THE STATE TREASURY THE AMERICAN RESCUE PLAN ACT WORKFORCE DEVELOPMENT PROGRAM FUND, FROM WHICH THE GRANTS AUTHORIZED BY THIS ACT SHALL BE DISBURSED BY THE OFFICE; TO REQUIRE THE OFFICE TO CERTIFY TO THE DEPARTMENT OF FINANCE AND ADMINISTRATION THAT EACH EXPENDITURE OF APPROPRIATED FUNDS UNDER THIS ACT IS IN COMPLIANCE WITH THE UNITED STATES TREASURY GUIDELINES; TO SPECIFY THAT THE USE OF FUNDS ALLOCATED UNDER THE GRANT PROGRAM SHALL BE SUBJECT TO FEDERAL AND STATE AUDIT, AND THAT RECIPIENTS FOUND TO BE FULLY OR PARTIALLY NONCOMPLIANT WITH THE REQUIREMENTS OF THIS ACT SHALL RETURN TO THE STATE ALL OR A PORTION OF THE FUNDS RECEIVED; TO REQUIRE THE OFFICE OF WORKFORCE DEVELOPMENT TO PROVIDE A COMPREHENSIVE REPORT ON THE USE AND EFFECTIVENESS OF FUNDS DISTRIBUTED UNDER THE GRANT PROGRAM, TO THE GOVERNOR AND LEGISLATURE BY OCTOBER 1 EACH YEAR OF THE EXISTENCE OF THE PROGRAM; AND FOR RELATED PURPOSES.

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

     SECTION 1.  This act shall be known and may be cited as the "American Rescue Plan Act (ARPA) Workforce Development Program."

     SECTION 2.  (1)  The Mississippi Legislature finds the following:

          (a)  The public health crisis related to COVID-19 resulted in a temporary or permanent closure of some businesses in the state and a general disruption in the Mississippi economy and workforce;

          (b)  Shortages exist in a number of high-wage, high-demand Mississippi industries, as determined and documented by the Office of Workforce Development, including, but not limited to, healthcare facilities, particularly in the nursing and allied health fields;

          (c)  Certain sectors of the citizen population were impacted more severely by the economic actions taken to mitigate the spread of COVID-19, including underemployed individuals, individuals currently underrepresented in the workforce, and workers with limited education, skills and training; and

          (d)  The availability of unprecedented federal funding to mitigate the impact of COVID-19 on the workforce and economy has created a unique opportunity for the Office of Workforce Development, working with community colleges, institutions of higher learning and employers, to provide education and

training to help Mississippians find employment in high-demand fields.

     (2)  Therefore, the intent of the Mississippi Legislature is:

          (a)  To provide funding for outreach efforts to connect citizens seeking employment with the education and training required to obtain necessary skills for high-demand jobs in the state;

          (b)  To provide funding for new and increased capacity in existing workforce development and training programs, to include any required equipment or supplies, at community colleges and institutions of higher learning across the state;

          (c)  To provide funding to employers for on-the-job training and wage assistance for high-skill, high-wage jobs;

          (d)  To provide funding to the Office of Workforce Development to administer programs authorized by this act; and

          (e)  To gauge the effectiveness of these programs by gathering data related to participation and wage and employment outcomes in order to replicate successful efforts in future workforce development programs.

     SECTION 3.  For purposes of this act, the following words shall have the meanings ascribed herein unless the context otherwise requires:

          (a)  "Grant program" means the workforce development and training programs administered under this act using federal COVID-19 relief funds.

          (b)  "Office" means the Office of Workforce Development as established in Section 37-153-7.

          (c)  "Recipient" means a community college, institution of higher learning, employer, institutional recipient or trainee recipient of grant funding.

          (d)  "Trainee" means an individual receiving training or other services through programs under this act with the goal of becoming employed in a high-wage, high-demand industry.

          (e)  "COVID-19" means the Coronavirus Disease 2019.

          (f)  "Federal COVID-19 Relief Funds" means funds allocated to the State of Mississippi from the Coronavirus State Fiscal Recovery Fund in Section 9901 of the American Rescue Plan Act of 2021 (Public Law No. 117-2).

          (g)  "High-wage, high-demand industry" means those industries paying above Mississippi's median annual income and prioritized by the office and the four (4) local workforce areas.

          (h)  "Eligible expenses" means a cost incurred by a recipient, pursuant to this act, to include:

               (i)  Necessary equipment or other supplies;

               (ii)  Curricula or other academic or training materials;

               (iii)  Remote learning or other classroom technology;

               (iv)  Stipends for teaching staff or faculty for workforce development programs;

               (v)  On-the-job training or wage assistance;

               (vi)  Trainee support, including tuition expenses and childcare or transportation assistance;

               (vii)  Coaching or mentoring services;

               (viii)  Job placement services;

               (ix)  Apprenticeship programs; and

               (x)  Recruitment programs.

     SECTION 4.  (1)  There is established the American Rescue Plan Act Workforce Development Program which shall be directed by the office for the purpose of providing education and training to citizens seeking employment in high-wage, high-demand industries in the state which were impacted by the disruption to the economy and workforce caused by COVID-19.

     (2)  The Department of Employment Security shall serve as fiscal agent in administering the funds.

     (3)  Subject to appropriation by the Legislature, allocations to recipients shall be awarded by the office through an application process, which shall require the applicant to provide:

          (a)  A detailed explanation of the program the applicant intends to use awarded funds to create or expand, to include:

               (i)  A description of the high-wage, high-demand field or workforce shortage area the program is intended to address;

               (ii)  The number of trainees who will be served by the program; and

               (iii)  The average wage rate for trainees receiving employment after completing the program;

          (b)  A proposed budget on how awarded funds will be expended, including a plan to consistently report expenditures to the office throughout the funding commitment;

          (c)  A plan to provide data on participation and outcomes of the program, including a plan to report outcomes to the office throughout the funding commitment; and

          (d)  Other relevant information as determined appropriate by the office.

     (4)  Applicants agreeing to commit a portion of their federal COVID-19 relief funds, if they received federal COVID-19 relief funds directly, or other state, federal or private funds as supplemental matching funds to offset the total cost of the approved program will be prioritized for approval.

     SECTION 5.  (1)  The office shall:

          (a)  Inform each recipient of its portion of the funds appropriated to the grant program;

          (b)  Develop regulations and procedures to govern the administration of the grant program;

          (c)  Prioritize high-wage, high-skill industries, including, but not limited to, jobs within the healthcare field; and

          (d)  Coordinate with the Department of Employment Security to share information to identify individuals who were furloughed, unemployed, underemployed or otherwise displaced due to COVID-19.

     (2)  The office may use a maximum of three percent (3%) of funds allocated under this act for the administration of the grant program, to the extent permissible under federal law.

     SECTION 6.  (1)  (a)  There is created a special fund in the State Treasury, to be known as the "American Rescue Plan Act Workforce Development Program Fund," from which the grants authorized by this act shall be disbursed by the office.  All monies shall be disbursed from the fund in compliance with the guidelines, guidance, rules, regulations and other criteria, as may be amended from time to time, by the United States Department of the Treasury regarding the use of monies from the American Rescue Plan Act.  If, on January, 1, 2026, there are unobligated monies in the fund, including any investment earnings or interest earned on amounts in the grant program fund, those monies shall lapse into the Budget Contingency Fund for further appropriation by the Legislature.

          (b)  If, on December 20, 2026, there are unexpended American Rescue Plan Act monies remaining in the fund, those monies shall lapse into the Budget Contingency Fund, to be transferred by the State Fiscal Officer into the Unemployment Compensation Fund on or before December 30, 2026.

     (2)  (a)  The office shall certify to the Department of Finance and Administration that each expenditure of appropriated funds under this act is in compliance with the guidelines, guidance, rules, regulations and other criteria, as may be amended from time to time, of the United States Department of the Treasury regarding the use of monies from the State Coronavirus State Fiscal Recovery Fund in Section 9901 of the American Rescue Plan Act of 2021 (Public Law No. 117-2).

          (b)  The use of funds allocated under the grant program shall be subject to audit by the United States Department of the Treasury's Office of Inspector General and the Mississippi Office of the State Auditor.  Each recipient of funds under the grant program found to be fully or partially noncompliant with the requirements of this act shall return to the state all or a portion of the funds received.

     SECTION 7.  The office shall provide a comprehensive report on the use and effectiveness of funds distributed under the grant program, to include wage data and employment outcomes for trainees, to the Governor, Lieutenant Governor, Speaker of the House of Representatives, and Chairs of the Senate and House Appropriations Committees, Chair of the Senate Economic and Workforce Development Committee, and Chair of the House Workforce Development Committee by October 1 each year of the existence of the program.

     SECTION 8.  If any section, paragraph, sentence, clause, phrase or part of this act is declared to be in conflict with federal law, or if for any reason is declared to be invalid or of no effect, the remaining sections, paragraphs, sentences, clauses, phrases or parts thereof shall be in no matter affected thereby but shall remain in full force and effect.

     SECTION 9.  This act shall take effect and be in force from and after its passage.