AB 1534 (2025) — Federal Workforce Pell Grant program: local workforce development boards: participant training requirement.

AMENDED IN SENATE AUGUST 21, 2026

AMENDED IN SENATE AUGUST 19, 2026

AMENDED IN SENATE JUNE 15, 2026

AMENDED IN ASSEMBLY MARCH 19, 2026

AMENDED IN ASSEMBLY MARCH 5, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

ASSEMBLY BILLNo. 1534

Introduced by Assembly Member Irwin

(Coauthor: Assembly Member Alanis)

January 5, 2026

An act to add Sections 69870.5, 69871.5, and 69873.5 to the Education Code, and to amend, repeal, and add Sections 14017.1 and 14211 of the Unemployment Insurance Code, relating to workforce education and development.

Vote: majority Appropriation: no Fiscal committee: yes Local program: yes

LEGISLATIVE COUNSEL’S DIGEST

(1) Beginning on July 1, 2026, for the financial aid award year of 2026–27 and each award year thereafter, existing federal law establishes the federal Workforce Pell Grant program to award grants to eligible students who are enrolled, or accepted for enrollment, in a short-term educational program that, among other things, provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations, as provided.

Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California.

Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.

This bill would prohibit a postsecondary educational institution from disbursing federal Workforce Pell Grant program funds to students enrolled in the institution’s short-term programs, and advertising, marketing, or informing students about the availability of those funds unless the institution has (A) obtained authorization from the commission, on behalf of the Governor, that the institution meets the requirements of specified provisions related to the federal Workforce Pell Grant program, and (B) obtained approvals and met all requirements set forth by the United States Department of Education.

This bill would prohibit the commission from authorizing a postsecondary educational institution to receive federal Workforce Pell Grant program funds for a short-term program if the institution, among other things, partners, contracts, or affiliates with an entity that is not accredited by a specified accrediting agency, as provided. The bill would authorize the commission to use the California Priority ~~Jobs Credentials~~ Programs List to determine whether a short-term program satisfies specified requirements under the federal Workforce Pell Grant program, as provided.

(2) Existing federal law, the Workforce Innovation and Opportunity Act (WIOA), provides for workforce development activities, including activities in which states may participate. Existing state law, the California Workforce Innovation and Opportunity Act (CalWIOA), establishes the California Workforce Development Board to assist the Governor in the development, oversight, and continuous improvement of California’s workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. CalWIOA creates the Consolidated Work Program Fund in the State Treasury, for the receipt of all moneys deposited pursuant to WIOA and requires moneys in the fund to be made available, upon appropriation by the Legislature, to the Employment Development Department for expenditure consistent with the purposes of WIOA.

Existing law contains various programs for job training and employment investment, including work incentive programs, as specified, and establishes local workforce investment boards to perform duties related to the implementation and coordination of local workforce investment activities. Existing law requires local workforce investment boards to spend a minimum percentage of specified funds for adults and dislocated workers on federally identified workforce training programs and allows the boards to leverage specified funds to meet the funding requirements, as specified. Existing law requires a local workforce development area that does not meet the expenditure requirements to submit a corrective action plan to the Employment Development Department that provides reasons for not meeting the requirements and describes actions taken to address the identified expenditure deficiencies. Existing law also requires the department to calculate for each local workforce development board whether the local workforce development board met the expenditure requirements and make annual reports regarding the training and supportive services expenditures.

This bill, starting July 1, 2028, instead of requiring the local workforce development boards to spend a minimum percentage of specified funds for adults and dislocated workers, would require the boards to ensure that at least 50% of participants enrolled in the adult and dislocated worker programs receive workforce training services, and would prescribe the training services that count toward the participant training requirement. The bill would require a local workforce development area that does not meet the participant training requirement to submit a corrective action plan to the Employment Development Department that provides reasons for not meeting that requirement and describes actions taken to address the identified participant training deficiencies. By imposing new requirements on local workforce development boards, the bill would impose a state-mandated local program. The bill would require the Employment Development Department to calculate for each local workforce development board, among other things, whether the local workforce development board met the participant training requirement and make annual reports regarding the number of participants enrolled in adult and dislocated worker program, the percentage of those enrolled participants receiving training services, and the training expenditures and supportive service expenditures made by local workforce development boards, as specified. The bill would also make nonsubstantive conforming changes.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The people of the State of California do enact as follows:

SECTION 1.

(a) The Legislature finds and declares all of the following:

(1) The federal Workforce Pell Grant program (Public Law 119-21) allows funding to be used for certain short-term workforce training programs that demonstrate positive employment and earnings outcomes.

(2) In implementing the federal Workforce Pell Grant program, states may impose standards to protect students from financially risky, low-quality, or fraudulent short-term programs and to protect students from incurring debt they cannot repay.

(3) Title I of the federal Workforce Innovation and Opportunity Act (WIOA) of 2014 (Public Law 113-128) provides another funding stream for workforce training services for adults and dislocated workers.

(4) A report commissioned by the California Workforce Development Board in 2022 found that California’s WIOA-enrolled participants who received targeted training services were significantly more likely to find employment and earn higher wages compared to those who only received basic career services.

(5) Encouraging more participants to receive training, rather than spending more dollars on training, will increase access to high-quality, no-cost or low-cost workforce training and education offered through community colleges and adult schools, and deepen collaborations between local workforce development boards and community colleges.

(6) A participant training requirement will leverage federal Workforce Pell Grant program funds as a new funding stream to support training that would allow more WIOA dollars to be spent on supports and services to increase participants’ completion and job placement.

(b) It is the intent of the Legislature to expand access to high-quality workforce training opportunities by defining standards for short-term programs to be eligible for the federal Workforce Pell Grant program and requiring an increase in participants that receive workforce training services under Title I of WIOA.

SEC. 2.

Section 69870.5 is added to the Education Code, to read:

69870.5.

A postsecondary educational institution shall not disburse Workforce Pell Grant program funds to students enrolled in the institution’s short-term programs, and shall not advertise, market, or inform students about the availability of those funds, unless the institution has met both of the following:

(a) Obtained authorization from the commission, on behalf of the Governor, pursuant to this article.

(b) Obtained approvals and met all requirements set forth by the United States Department of Education.

SEC. 3.

Section 69871.5 is added to the Education Code, to read:

69871.5.

The commission shall not authorize a postsecondary educational institution to receive Workforce Pell Grant program funds for a short-term program if the institution does any of the following:

(a) Partners, contracts, or affiliates with an entity, including an institution or organization, that is not accredited by an accrediting agency recognized and approved by the United States Department of Education and that provides the instructors for the instruction of the short-term program, unless one of the following applies:

(1) The institution partners, contracts, or affiliates with the entity for the purpose of offering instruction for a registered apprenticeship program.

(2) The short-term program has a contract education agreement with a participating community college and a provider pursuant to Section 78021, provided that both the institution and the short-term program meet all applicable federal Title IV (20 U.S.C. Sec. 1070 et seq.) and Workforce Pell Grant program requirements.

(3) The institution meets all of the following requirements:

(A) Clearly and prominently discloses, and ensures that the entity clearly and prominently discloses, that the entity is a company that is separate from the institution and a description of all of the services that the entity is contracted to provide for the institution in all of the following places:

(i) On the institution’s internet website and any internet website controlled by the entity that is related to the institution’s short-term program.

(ii) In marketing materials used by the institution or the entity about the short-term program.

(iii) In oral communications with prospective students of the short-term program that are made by the institution or the entity.

(B) Ensures the entity is not paid using incentive compensation or tuition sharing with the institution.

(C) Ensures the entity does not exercise authority of any kind over the institution’s governance or decisionmaking processes, including participation in any deliberative or decisionmaking committee, task force, or other body, related to the design or development of course curriculum or instruction, setting of short-term program admission standards, determining enrollment targets, or creation of new short-term programs. The entity may provide consultation or technical assistance in an advisory capacity only, and the institution shall retain sole and independent authority for all final decisions.

(b) Offers or affiliates with a company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.

(c) (1) Charges tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell Grant program funds available for a student in the short-term program, as determined by the Secretary of the United States Department of Education, for the period of time that the program is offered.

(2) Paragraph (1) shall not apply to any portion of tuition and fees that exceeds the maximum Workforce Pell Grant program amount if that excess amount is paid on behalf of the student by an employer, a labor-management partnership, or another third party, provided that the third party is not a lender or an offeror of a private education loan or other credit product for which the student bears any responsibility for repayment.

SEC. 4.

Section 69873.5 is added to the Education Code, to read:

69873.5.

(a) The commission may use the California Priority ~~Jobs Credentials~~ Programs List to determine whether a short-term program satisfies the following requirements under the Workforce Pell Grant program:

(1) Provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations.

(2) Meets the hiring requirements of employers in high-skill, high-wage, or in-demand sectors or occupations.

(3) Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards students with the credential upon completion of the short-term program.

(b) The Labor and Workforce Development Agency may enter into a data-sharing agreement with the Office of Cradle-to-Career Data to the extent it is necessary to establish and maintain the California Priority ~~Jobs Credential~~ Programs List.

SEC. 5.

Section 14017.1 of the Unemployment Insurance Code is amended to read:

14017.1.

(a) To ensure that job training services investments are linked to regional labor market demand and provide opportunities for upward mobility, the board and the Employment Development Department shall work collaboratively to measure and report on training-related job placement outcomes for individuals receiving job training services provided through the workforce system, including all job training services funded by Title I of the federal Workforce Innovation and Opportunity Act (Pub. L. 113-128) and through grants administered by the board, regardless of the source of the moneys.

(b) For purposes of measuring training-related job placement outcomes, gathering data to report, and otherwise fulfilling subdivision (a), the board and the Employment Development Department shall work collaboratively to create a plan to use the existing unemployment insurance tax data collection infrastructure used to secure quarterly wage data from employers, to match relevant employee occupational data, employee place of employment data, and employee hours worked data, to persons who enroll in job training services. The plan shall include timelines, budget, funding constraints, and an outline of any additional recommended or necessary statutory changes to collect relevant data. The plan shall also outline the means for all of the following:

(1) Requiring local workforce development boards and grantees of board-administered grants to collect and report industry and occupation-specific data for all persons who enroll in job training services, including through the use of case management and performance reporting systems deployed for state and federal data collection and reporting.

(2) Developing and implementing a method to measure the second- and fourth-quarter prior earnings of a person, who is enrolled in a job training service, for purposes of measuring the person’s increase in earnings following their participation in and exit from a program.

(3) Developing and implementing a means to measure wage and employment outcomes for a person following that person’s participation in a job training service during the second, fourth, eighth, and twelfth quarters following participation in and exit from a program for purposes of measuring the person’s increase in earnings over time.

(4) Calculating, by region, industry, occupation, and job training service provider, the wages, wage gains, employment rates, and training-related job placement rates at the second, fourth, eighth, and twelfth quarters following a person’s participation in and exit from a program.

(5) Calculating, by region, industry, occupation, and job training service provider, the rate of persons who participated in a job training service and who became employed at a wage at or above a living wage for the region. This calculation shall take into account the cost of living in the regional labor market where the person works or lives. The employment rate calculation shall be calculated at the second, fourth, eighth, and twelfth quarters following a person’s participation in and exit from a program.

(6) Calculating program completion, credential attainment, and measurable skills gains rates by job training service provider, industry, occupation, and region.

(7) Determining, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and measurable skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gain that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person works or lives.

(8) Developing and implementing a means of working with the local workforce development boards to notify, prior to their enrollment in a job training service, a person seeking to enroll in those services of the board’s and Employment Development Department’s findings on the efficacy of those services, particularly with respect to the likelihood of training-related job placement, the likelihood of job placement at or above a regional living wage, and the likelihood of wage gains at the second, fourth, eighth, and twelfth quarters following a person’s participation in and exit from a program. Those findings shall be disaggregated by region, job training services provider, industry, and occupation.

(9) The board and the Employment Development Department shall, in compliance with Section 9795 of the Government Code, submit the plan to the Legislature no later than January 1, 2024.

(c) (1) Upon appropriation by the Legislature, the Employment Development Department and the board shall implement the plan developed pursuant to subdivision (b) to meet the reporting requirements of this chapter. Two years after the appropriation, the Employment Development Department and the board shall summarize and provide to the Legislature an initial report on the status of the implementation plan and the initial findings using the available data in alignment with subdivision (b).

(2) The report and findings required by paragraph (1) shall be provided to the Senate Committee on Business, Professions and Economic Development, Assembly Committee on Business and Professions, Senate Committee on Education, Assembly Committee on Education, Senate Committee on Labor, Public Employment and Retirement, and Assembly Committee on Labor and Employment. The report shall not include any personally identifiable information.

(3) Following the initial report in paragraph (1), the board and Employment Development Department shall annually update and include their findings in the report required to be submitted to the Legislature by subdivision (c) of Section 14211.

(4) If any portion of the reporting requirements of this section cannot be implemented absent further statutory change, the remaining requirements shall continue to be in effect.

(d) For purposes of this section, both of the following definitions shall apply:

(1) “Job training services” has the same meaning as “training services,” as that term is defined in Section 3174(c)(3)(D) of Title 29 of the United States Code and the corresponding sections of the Code of Federal Regulations, and as that term is expanded on in paragraph (3) of subdivision (a) of Section 14211.

(2) “Local workforce development board” means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.

(3) “Participation in a job training service” shall mean participation in, but not necessarily completion of, the service.

(4) “Program” means a program under Title I of the federal Workforce Innovation and Opportunity Act or a grant program administered by the California Workforce Development Board.

(5) “Training-related job placement” means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.

(e) This section shall remain in effect only until July 1, 2028, and as of that date is repealed.

SEC. 6.

Section 14017.1 is added to the Unemployment Insurance Code, to read:

14017.1.

(6) Calculating program completion, credential attainment, and measurable skills gains rates by job training service provider, industry, occupation, and region.

(7) Determining, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and measurable skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gains that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person works or lives.

(9) The board and the Employment Development Department shall, in compliance with Section 9795 of the Government Code, submit the plan to the Legislature no later than January 1, 2024.

(4) If any portion of the reporting requirements of this section cannot be implemented absent further statutory change, the remaining requirements shall continue to be in effect.

(d) For purposes of this section, both of the following definitions shall apply:

(2) “Local workforce development board” means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.

(3) “Participation in a job training service” shall mean participation in, but not necessarily completion of, the service.

(4) “Program” means a program under Title I of the federal Workforce Innovation and Opportunity Act or a grant program administered by the California Workforce Development Board.

(5) “Training-related job placement” means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.

(e) This section shall become operative on July 1, 2028.

SEC. 7.

Section 14211 of the Unemployment Insurance Code is amended to read:

14211.

(a) (1) Beginning program year 2012, an amount equal to at least 25 percent of funds available under Title I of the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) provided to local workforce investment boards for adults and dislocated workers shall be spent on workforce training programs. This minimum may be met either by spending 25 percent of those base formula funds on training or by combining a portion of those base formula funds with leveraged funds as specified in subdivision (b).

(2) Beginning program year 2016 through program year 2027, an amount equal to at least 30 percent of funds available under Title I of the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) provided to local workforce development boards for adults and dislocated workers shall be spent on workforce training programs. This minimum may be met either by spending 30 percent of those base formula funds on training or by combining a portion of those base formula funds with leveraged funds as specified in subdivision (b).

(3) Except as provided in subdivision (b), expenditures that shall count toward the minimum percentage of funds shall include only training services as defined in Section 3174(c)(3)(D) of Title 29 of the United States Code and the corresponding sections of the Code of Federal Regulations, including all of the following:

(A) Occupational skills training, including training for nontraditional employment.

(B) On-the-job training.

(D) Training programs operated by the private sector.

(E) Skills upgrading and retraining.

(F) Entrepreneurial training.

(G) Incumbent worker training in accordance with Section 3174(d)(4) of Title 29 of the United States Code.

(H) Transitional jobs in accordance with Section 3174(d)(5) of Title 29 of the United States Code.

(I) Job readiness training provided in combination with any of the services described in subparagraphs (A) to (H), inclusive.

(J) Adult education and literacy activities provided in combination with services described in any of subparagraphs (A) to (G), inclusive.

(K) Customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training.

(b) (1) Local workforce development boards may receive a credit of up to 10 percent of their adult and dislocated worker formula fund base allocations for public education and training funds and private resources from industry and from joint labor-management trusts that are leveraged by a local workforce development board for expenditure on training and supportive services. This credit may be applied toward the minimum training requirements in paragraphs (1) and (2) of subdivision (a).

(A) Leveraged funds that may be applied toward the credit allowed by this subdivision shall only include the following:

(i) Federal Pell Grants established under Title IV of the federal Higher Education Act of 1965 (20 U.S.C. Sec. 1070 et seq.).

(ii) Programs authorized by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128).

(iii) Trade adjustment assistance.

(iv) Department of Labor National Emergency Grants.

(v) Match funds from employers, industry, and industry associations.

(vi) Match funds from joint labor-management trusts.

(vii) Employment training panel grants.

(viii) Supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, but only for those individuals enrolled in training services for occupations in demand by industry, as defined in Section 3174(c)(3)(D) of Title 29 of the United States Code and the corresponding sections of the Code of Federal Regulations. Supportive services may include, but are not limited to, the costs of trainees’ or students’ books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.

(ix) Temporary Assistance for Needy Families (TANF) funds spent on supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, for TANF enrolled individuals coenrolled in and receiving training services for occupations in demand by industry through the federal Workforce Innovation and Opportunity Act of 2014. Supportive services may include, but are not limited to, the costs of trainees’ or students’ books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.

(x) Temporary Assistance for Needy Families (TANF) funds spent on transitional and subsidized employment for TANF enrolled individuals coenrolled in and receiving training services through the federal Workforce Innovation and Opportunity Act of 2014.

(xi) Any other local, state, or federal funds spent on training or supportive services for individuals enrolled in training, provided the individuals receiving the training are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.

(xii) With the approval of the state board, any other public or private funds source not identified in this subparagraph that is used to provide training or supportive services for individuals who are also enrolled in training provided the individuals receiving the relevant services are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.

(B) Credit for leveraged funds shall only be given if the local workforce development board keeps records of all training and supportive services expenditures it chooses to apply to the credit. Training and supportive services expenditures may only be applied to the credit if the relevant training costs can be independently verified by the Employment Development Department and, without exception, training participants must be coenrolled in the federal Workforce Innovation and Opportunity Act of 2014 performance monitoring system.

(2) The use of leveraged funds to partially meet the training requirements specified in paragraphs (1) and (2) of subdivision (a) is the prerogative of a local workforce development board. A local workforce development board shall annually provide data to the Employment Development Department on the amount of leveraged funds used to partially meet the requirements of subdivision (a). This data shall disaggregate and report separately, the amount spent on both training and supportive services. Costs arising from the recordkeeping required to demonstrate compliance with the leveraging requirements of this subdivision are the responsibility of the local board.

(c) (1) At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the expenditure requirements of this section.

(2) The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the expenditure requirements of this section.

(3) The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the training and supportive services expenditures made by local workforce development boards pursuant to the expenditure requirements of this section.

(4) Consistent with the definitions and regulations of the federal Workforce Innovation and Opportunity Act of 2014, the Employment Development Department shall specify which expenditures qualify as training and supportive services expenditures. The annual report shall specify the total amount of federal funding provided to the state and to each of the local workforce development areas for the adult and dislocated persons programs and the amount of these federal Workforce Innovation and Opportunity Act of 2014 funds expended for training services.

(5) Consistent with calculations required by paragraph (1), the report shall also include, for each local workforce development area, the total amount of leverage funds utilized as training expenditure allowances authorized by subdivision (b) to meet the expenditure requirements of this section. The report shall specify the share of leverage funds that were expended on both training and supportive services for each Local Workforce Development Area.

(6) A report submitted pursuant to this section shall comply with Section 9795 of the Government Code.

(d) A local workforce development area that does not meet the requirements of subdivision (a) shall submit a corrective action plan to the Employment Development Department that provides reasons for not meeting the requirements and describes actions taken to address the identified expenditure deficiencies. A local workforce development area shall provide a corrective action plan to the Employment Development Department pursuant to this section within 90 days of receiving the calculations described in subdivision (c).

(e) For the purpose of this section, “program year” has the same meaning as provided in Section 667.100 of Title 20 of the Code of Federal Regulations.

(f) This section shall remain in effect only until July 1, 2028, and as of that date is repealed.

SEC. 8.

Section 14211 is added to the Unemployment Insurance Code, to read:

14211.

(a) (1) Beginning program year 2028, local workforce development boards shall ensure that at least 50 percent of participants enrolled in the adult and dislocated worker programs funded under Title I of the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) receive workforce training services.

(2) Training services that count toward the participant training requirement set forth in paragraph (1) shall include only the following, as defined in Section 3174(c)(3)(D) of Title 29 of the United States Code and the corresponding sections of the Code of Federal Regulations:

(A) Occupational skills training, including training for nontraditional employment.

(B) On-the-job training.

(D) Training programs operated by the private sector.

(E) Skills upgrading and retraining.

(F) Entrepreneurial training.

(G) Incumbent worker training in accordance with Section 3174(d)(4) of Title 29 of the United States Code.

(H) Job readiness training provided in combination with any of the services described in subparagraphs (A) to (G), inclusive.

(I) Adult education and literacy activities provided in combination with services described in any of subparagraphs (A) to (G), inclusive.

(J) Customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training.

(K) Other leveraged training programs that are not part of Title I of the federal Workforce Innovation and Opportunity Act of 2014.

(b) (1) At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the participant training requirement of this section.

(2) The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the participant training requirement of this section. The Employment Development Department shall also provide to each local workforce development board its individual calculations of the percentage of funds spent on training services.

(3) (A) The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the number of participants enrolled in adult and dislocated worker programs and the percentage of enrolled participants receiving training services.

(B) (i) The Employment Development Department shall separately report, on an annual basis, to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, the training expenditures and supportive service expenditures made by local workforce development boards for each subgrant agreement for which the two-year availability period of funds has ended. The Employment Development Department may explain the differences between the reporting periods and measures used in this report and in the report required pursuant to subparagraph (A).

(ii) (I) The Employment Development Department shall specify the expenditures that qualify as training and supportive services expenditures, consistent with the definitions and regulations of the federal Workforce Innovation and Opportunity Act of 2014, except as provided in subclause (II).

(II) Notwithstanding subclause (I), training expenditures reported pursuant to this subparagraph shall also include expenditures for transitional jobs in accordance with Section 3174(d)(5) of Title 29 of the United States Code.

(iii) The annual expenditure report required pursuant to this subparagraph shall specify the total amount of federal funding provided to the state and to each of the local workforce development areas for the adult and dislocated persons programs and the amount of federal Workforce Innovation and Opportunity Act of 2014 funds expended for training services. The report shall also include, for each local workforce development area, the total amount of leverage funds used and shall specify the share of leverage funds that were expended on both training and supportive services for each local workforce development area. Leverage funds shall be reported separately from the expenditure of funds provided under Title I of the federal Workforce Innovation and Opportunity Act of 2014. If a local workforce development area does not report leverage funds, the report shall indicate that instead of reporting an amount of zero.

(4) A report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.

(c) A local workforce development area that does not meet the requirements of subdivision (a) shall submit a corrective action plan to the Employment Development Department that provides reasons for not meeting the participant training requirement and describes actions taken to address the identified participant training deficiencies. A local workforce development area shall provide a corrective action plan to the Employment Development Department pursuant to this section within 90 days of receiving the calculations described in paragraph (1) of subdivision (b).

(d) For the purpose of this section, “program year” has the same meaning as provided in Section 667.100 of Title 20 of the Code of Federal Regulations.

(e) This section shall become operative on July 1, 2028.

SEC. 9.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.