MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Workforce Development
By: Representative Hines
AN ACT TO AMEND SECTION 71-5-353, MISSISSIPPI CODE OF 1972, TO REVISE CERTAIN PROVISIONS OF LAW REGARDING WORKFORCE ENHANCEMENT TRAINING TO PROVIDE THAT THE COMMISSION ON PROPRIETARY SCHOOL AND COLLEGE REGISTRATION SHALL BE RESPONSIBLE FOR APPROVING TRAINING OF SCHOOLS AND COLLEGES UNDER THE COMMISSION; TO BRING FORWARD SECTIONS 37-153-5 THROUGH 37-153-13, MISSISSIPPI CODE OF 1972, WHICH REGARD WORKFORCE INVESTMENT BOARDS AND DEVELOPMENT CENTERS, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 71-5-353, Mississippi Code of 1972, is amended as follows:
71-5-353. (1) Each employer shall pay 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 contributions at the rate of two and four-tenths percent (2.4%) of taxable wages through December 31, 2010, and thereafter 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.
(2) From and after January 1, 2005, through December 31, 2009, contribution rates assigned to employers by the department, as determined pursuant to Sections 71-5-351, 71-5-353 and 71-5-355, shall be reduced by three-tenths of one percent (.3%). Such reduction shall only apply to employers whose contribution rate, determined in accordance with Sections 71-5-353 and 71-5-355, is equal to or less than five and four-tenths percent (5.4%), and shall include a three-tenths of one percent (.3%) reduction to the rate as a result of violation of provisions of this chapter. The reduction in rates provided for herein shall not apply to state boards, instrumentalities and political subdivisions of the State of Mississippi referred to in Sections 71-5-357 and 71-5-359, or to nonprofit employers providing reimbursement to the department for the unemployment fund pursuant to Section 71-5-357(a).
(3) (a) From and after January 1, 2005, through December 31, 2009, the workforce enhancement contributions shall be applied at a rate of three-tenths of one percent (.3%) upon the taxable wages, however, the workforce enhancement contribution shall not be applied to state boards, instrumentalities and political subdivisions of the State of Mississippi referred to in Sections 71-5-357 and 71-5-359, or to nonprofit employers providing reimbursement to the department for the unemployment fund pursuant to Section 71-5-357(a).
(b) There is hereby created in the Treasury of the State of Mississippi a special fund to be known as the "Mississippi Workforce Enhancement Training Fund," which consists of funds collected pursuant to this subsection (3) and subsection (4) of this section. Funds collected shall initially be deposited into the Mississippi Department of Employment Security tax bank account for clearing contribution collections and subsequently transferred to the Mississippi Workforce Enhancement 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:
(i) Unemployment contributions;
(ii) Workforce enhancement training contributions;
(iii) Interest and damages; then
(iv) Legal and processing costs.
The amount of 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 workforce enhancement training contribution shall be allocated based on a plan approved by the United States Department of Labor (USDOL) and shall be paid to the Mississippi Department of Employment Security semiannually by the State Board for Community and Junior Colleges for periods ending in December and June of each year. Payment shall be made to the department no later than sixty (60) days after the billing date.
(c) All monies collected will be initially deposited into the Mississippi Department of Employment Security bank account for clearing contribution collections and subsequently transferred to the Mississippi Workforce Enhancement Training Fund holding account and will be held by the Mississippi Department of Employment Security in such account for a period of not less than sixty (60) days. After such period, funds shall be transferred within thirty (30) days to the Mississippi Workforce Enhancement Training Fund in a manner determined by the department. Interest earnings or interest credits on deposit amounts shall be retained in the holding 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 Mississippi Workforce Enhancement Training Fund treasury account within thirty (30) days. Such transfers shall occur once annually, during the month of January.
(d) All enforcement procedures for the collection of delinquent contributions contained in Sections 71-5-363 through 71-5-383 shall be applicable in all respects for collections of delinquent contributions designated for the Unemployment Compensation Fund and the Mississippi Workforce Enhancement Training Fund.
(e) All monies deposited into the Mississippi Workforce Enhancement Training Fund shall be utilized exclusively by the State Board for Community and Junior Colleges in accordance with the Workforce Training Act of 1994 (Section 37-153-1 et seq.) 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 State Board for Community and Junior Colleges. 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 State Board for Community and Junior Colleges. The State Board for Community and Junior Colleges will be responsible for approving the training; however, the Commission on Proprietary School and College Registration shall be responsible for approving the training of schools and colleges under the commission.
(4) The following procedure shall apply for tax years subsequent to December 31, 2009:
(a) Workforce enhancement training contributions shall be collected at a rate of three-tenths of one percent (.3%) through December 31, 2010, based upon taxable wages, and at a rate of fifteen one-hundredths of one percent (.15%) thereafter, based upon taxable wages. Training contributions shall be reduced by the amount necessary to prevent any employer from having a combined rate greater than five and four-tenths percent (5.4%).
(b) All workforce enhancement training 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 Enhancement Training Fund holding account. Any workforce enhancement training contribution transactions from the Mississippi Department of Employment Security account for clearing contribution collections that are deposited into the Workforce Enhancement Training Fund holding account and are not honored by a financial institution will be transferred back to the Mississippi Department of Employment Security account for clearing contribution collections out of funds in the Workforce Enhancement Training Fund holding account.
(c) For rate years subsequent to December 31, 2009, suspension of the workforce enhancement training contributions required pursuant to this subsection (4) 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 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 any subsequent rate year has an insured unemployment rate of less than an average of four and five-tenths percent (4.5%).
(5) All collections due or accrued prior to any suspension of the Workforce Enhancement Training Fund will be collected based upon the law at the time the contributions accrued, regardless of when they are actually due or collected.
SECTION 2. Section 37-153-5, Mississippi Code of 1972, is brought forward 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" 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.
SECTION 3. 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 thirty-nine (39) 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) elected county supervisor;
(v) Two (2) representatives of labor organizations, who have been nominated by state labor federations;
(vi) Two (2) representatives of individuals and organizations that have 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; and
(ix) Nineteen (19) 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 State Board for Community and Junior Colleges.
(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.
(h) The Mississippi Department of Employment Security shall be responsible for providing necessary administrative, clerical and budget support for the State Workforce Investment Board.
(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.
(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, Wagner-Peyser Act 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. 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 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, 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.
(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.
SECTION 4. 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/GED, 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 5. Section 37-153-11, Mississippi Code of 1972, is brought forward 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.
(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 Mississippi 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.
SECTION 6. Section 37-153-13, Mississippi Code of 1972, is brought forward as follows:
37-153-13. The State Board for Community and Junior Colleges is designated as the primary support agency to the workforce development centers. The State Board for Community and Junior Colleges 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 State Board for Community and Junior Colleges.
SECTION 7. This act shall take effect and be in force from and after July 1, 2012.