AB 400

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. A claimant who is enrolled in

approved training is not subject to certain benefit denials or reductions that would

otherwise preclude the claimant from claiming UI benefits while enrolled in

approved 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

placements of UI claimants of up to six weeks for periods of not more than 40 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 period that includes a 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 receiving special occupational training, except that

a claimant is exempt from the requirement under the UI law to search for work for

each week the claimant receives at least 20 hours of occupational training under the

program and is not required to accept other suitable work under the UI law if there

is a reasonable expectation that the claimant will receive a job offer from the

employer providing 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

employer providing the training for purposes of worker's compensation benefits.

The program created by the bill sunsets two years after the bill's effective date.

The bill directs DWD to report to the legislature and the governor no later than 22

months after the bill's effective date concerning the effectiveness of the program and

DWD's recommendations for extension of the program or changes to the program to