AB 450

Currently, unemployment insurance (UI) benefits may not be denied to an

otherwise eligible individual because the individual is enrolled in a vocational

training course or a basic education course that is a prerequisite to such training

("approved training") under certain conditions. Current law also permits a claimant

who has exhausted all rights to benefits and is enrolled in an approved training

course that meets certain qualifications to potentially qualify to receive up to 26

weeks of additional benefits while enrolled in that training ("extended training"). A

claimant who is enrolled in approved or extended training is not subject to certain

benefit denials or reductions that would otherwise preclude the claimant from

claiming benefits while enrolled in approved or extended training.

This bill creates a pilot program of special occupational training that is not

approved training. The bill directs the Department of Workforce Development

(DWD) to designate three areas served by local workforce development boards in

which the program shall be offered. Under the bill, DWD must offer the program

throughout each designated area. Under the bill, the training consists of voluntary

six-week placements of UI claimants for 20 to 24 hours per week with employers who

elect to offer the training directly. A trainee may not be an employee of the employer

offering the training. The bill directs DWD to accept applications from employers

who wish to offer the training and to place claimants who wish to participate in

available openings. On the application, an employer must affirm that it currently

has one job opening for each training participant that it seeks in a position that a

successful participant would potentially qualify to fill. Under the bill, no claimant

may receive more than two placements during a benefit year (period during which

benefits are payable). In addition, no claimant may receive a placement for any week

beginning after the end of the first 26 weeks of the claimant's benefit year. The bill

provides that a claimant who receives special occupational training is not

disqualified from receiving UI benefits solely as a result of participating in the

training. The bill requires each claimant to maintain eligibility for UI benefits while

participating in the training. Under the bill, a claimant who participates in special

occupational training receives a stipend of $75 from DWD for each week in which the

claimant participates in the training. The bill appropriates general purpose revenue

to make the payments. The bill also provides that a claimant who is participating

in special occupational training is considered an employee of the state for purposes

of worker's compensation benefits and prohibits such a claimant from making a

claim or brining on action in tort against the employer that provided the special

occupational training. The program created by the bill does not apply after June 30,

2015.

The bill directs DWD to report to the legislature no later than December 31,

2014, concerning the effectiveness of the program and DWD's recommendations for

extension of the program or changes to the program to enhance its effectiveness.