Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 240 Second Substitute (2017GS)

Sponsor

Rep. Schultz, M.

Final action

Governor Signed 3/22/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• creates a restricted account called the Employability to Careers Program Restricted Account;
• creates the Employability to Careers Program Board within the Governor's Office of Management and Budget;
• authorizes the board to enter into a results-based contract with a fiscal intermediary;
• requires the Governor's Office of Management and Budget to staff the board;
• describes the components of an education, employability training, and workforce placement program that may be funded by money from the restricted account;
• authorizes the board to obtain the services of a programmatic intermediary to assist the board with validating the feasibility of entering into a results-based contract;
• requires an independent evaluation of the performance outcomes of the Employability to Careers Program; and
• authorizes payments from the restricted account to the fiscal intermediary if certain benchmarks are met by a service provider.

Every vote on this bill

Bill text

EMPLOYABILITY TO CAREERS PROGRAM
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Mike Schultz
Senate Sponsor: 
Allen M. Christensen
Cosponsors:
Carl R. Albrecht
Bruce R. Cutler
Brad M. Daw
Steve Eliason
Gage Froerer
Adam Gardiner
Francis D. Gibson
Timothy D. Hawkes
Lynn N. Hemingway
Eric K. Hutchings
John Knotwell
A. Cory Maloy
Kelly B. Miles
Derrin R. Owens
Lee B. Perry
Jeremy A. Peterson
Dixon M. Pitcher
Tim Quinn
Paul Ray
Norman K Thurston
Logan Wilde
Brad R. Wilson
Mike Winder
LONG TITLE
General Description:
This bill creates the Employability to Careers Program within the Governor's Office of
Management and Budget.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ creates a restricted account called the Employability to Careers Program Restricted
Account;
▸ creates the Employability to Careers Program Board within the Governor's Office of
Management and Budget;
▸ authorizes the board to enter into a results-based contract with a fiscal intermediary;
▸ requires the Governor's Office of Management and Budget to staff the board;
▸ describes the components of an education, employability training, and workforce
placement program that may be funded by money from the restricted account;
▸ authorizes the board to obtain the services of a programmatic intermediary to assist
the board with validating the feasibility of entering into a results-based contract;
▸ requires an independent evaluation of the performance outcomes of the
Employability to Careers Program; and
▸ authorizes payments from the restricted account to the fiscal intermediary if certain
benchmarks are met by a service provider.
Money Appropriated in this Bill:
This bill appropriates:
▸ to the General Fund Restricted -- Employability to Careers Program Restricted
Account, as a one-time appropriation:
• from the General Fund, $1,000,000; and
▸ to the Governor's Office of Management and Budget, as a one-time appropriation:
• from the General Fund Restricted -- Employability to Careers Program
Restricted Account, $1,000,000.
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63J-1-602.4
, as last amended by Laws of Utah 2016, Chapters 193 and 240
ENACTS:
63J-4-701
, Utah Code Annotated 1953
63J-4-702
, Utah Code Annotated 1953
63J-4-703
, Utah Code Annotated 1953
63J-4-704
, Utah Code Annotated 1953
63J-4-705
, Utah Code Annotated 1953
63J-4-706
, Utah Code Annotated 1953
63J-4-707
, Utah Code Annotated 1953
63J-4-708
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63J-1-602.4
 is amended to read:
63J-1-602.4.
List of nonlapsing funds and accounts -- Title 61 through Title 63N.
(1) Funds paid to the Division of Real Estate for the cost of a criminal background
check for a mortgage loan license, as provided in Section 
61-2c-202
.
(2) Funds paid to the Division of Real Estate for the cost of a criminal background
check for principal broker, associate broker, and sales agent licenses, as provided in Section
61-2f-204
.
(3) Certain funds donated to the Department of Human Services, as provided in
Section 
62A-1-111
.
(4) Appropriations from the National Professional Men's Basketball Team Support of
Women and Children Issues Restricted Account created in Section 
62A-1-202
.
(5) Certain funds donated to the Division of Child and Family Services, as provided in
Section 
62A-4a-110
.
(6) Appropriations from the Choose Life Adoption Support Restricted Account created
in Section 
62A-4a-608
.
(7) Appropriations to the Division of Services for People with Disabilities, as provided
in Section 
62A-5-102
.
(8) Appropriations to the Division of Fleet Operations for the purpose of upgrading
underground storage tanks under Section 
63A-9-401
.
(9) A portion of the funds appropriated to the Utah Seismic Safety Commission, as
provided in Section 
63C-6-104
.
(10) Funds appropriated or collected for publishing the Office of Administrative Rules'
publications, as provided in Section 
63G-3-402
.
(11) The Immigration Act Restricted Account created in Section 
63G-12-103
.
(12) Money received by the military installation development authority, as provided in
Section 
63H-1-504
.
 (13) The Employability to Careers Program Restricted Account created in Section
63J-4-703
. 
[
(13)
] 
(14)
 Appropriations to the Utah Science Technology and Research Initiative
created in Section 
63M-2-301
.
[
(14)
] 
(15)
 Appropriations to fund the Governor's Office of Economic Development's
Enterprise Zone Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
[
(15)
] 
(16)
 The Motion Picture Incentive Account created in Section 
63N-8-103
.
[
(16)
] 
(17)
 Certain money payable for commission expenses of the Pete Suazo Utah
Athletic Commission, as provided under Section 
63N-10-301
.
Section 2. Section 
63J-4-701
 is enacted to read:
Part 7. Employability to Careers Program
 63J-4-701.
Definitions.
As used in this part:
(1) "Board" means the Employability to Careers Program Board created in Section
63J-4-702
.
(2) "Education, employability training, and workforce placement program" means a
pay-for-success program that helps adults earn a high school diploma and obtain a full-time job
with benefits in a career path through integrated employability skills development.
(3) "Eligible participant" means an individual who at the time of enrollment in an
education, employability training, and workforce placement program:
(a) is between 18 and 50 years of age;
(b) does not have a high school diploma or the equivalent;
(c) is enrolled in a public assistance program; and
(d) is unemployed or underemployed.
(4) "Eligible program provider" means an organization or group of organizations with
the demonstrated capability of operating an education, employability training, and workforce
placement program.
(5) "Employability programs and services" means programs that assist adults in
developing job skills, attaining education, obtaining employment, increasing income, and
realizing self-sufficiency.
(6) "Employability skills" means technical, professional, and life skills that are
necessary for success in the labor market, which may include verbal and written
communication, time management, problem solving, professionalism, and teamwork.
(7) "Fiscal intermediary" means a nonprofit community foundation located in the state
that establishes and manages charitable funds and that has the necessary experience to
coordinate the funding and management of a results-based contract and related program.
(8) "Multitiered system of supports" means a systemic, continuous improvement
framework in which data-based problem solving and decision making is practiced for
supporting participants.
(9) "Performance outcome measure" means an education or workforce placement
outcome for an eligible participant, including earning an accredited high school diploma,
employment placement, job retention, and wage advancement within a career path, which
results in a demonstrated benefit to the state through increased tax revenue or lower state
expenditures for public assistance programs.
(10) "Programmatic intermediary" means a nonprofit entity or academic institution that
has the necessary experience in results-based financing and evidence-based policy to:
(a) validate a feasibility analysis of an eligible program provider;
(b) structure the terms and conditions of results-based contracts by developing
cost-benefit financial models, performance outcome measures, payment schedules, and
performance thresholds; and
(c) raise the private investment capital necessary to fund program services related to a
results-based contract.
(11) "Restricted account" means the Employability to Careers Program Restricted
Account created in Section 
63J-4-703
.
(12) "Results-based contract" means a contract entered into between the board, a fiscal
intermediary, and an eligible program provider that will result in repayment to the fiscal
intermediary if certain performance outcome measures are achieved.
Section 3. Section 
63J-4-702
 is enacted to read:
 63J-4-702.
 Employability to Careers Program Board.
(1) There is created within the office the Employability to Careers Program Board
composed of the following members:
(a) the executive director of the Department of Workforce Services or the executive
director's designee;
(b) the executive director of the Department of Human Services or the executive
director's designee; and
(c) three members appointed by the governor with the consent of the Senate as follows:
(i) one member from the private or nonprofit sector with expertise in finance;
(ii) one member from the private or nonprofit sector chosen from among two
individuals recommended by the president of the Senate; and
(iii) one member from the private or nonprofit sector chosen from among two
individuals recommended by the speaker of the House of Representatives.
(2) (a) An appointed member of the board shall serve for a term of three years, but may
be reappointed for one additional term.
(b) If a vacancy occurs in the board for any reason, the governor with the consent of the
Senate shall appoint a replacement to serve the remainder of the board member's term.
(3) The board shall elect a chair from among the board's membership.
(4) The board shall meet at least quarterly upon the call of the chair.
(5) Four members of the board constitute a quorum.
(6) Action by a majority present constitutes the action of the board.
(7) A board member may not receive compensation or benefits for the member's
service, but a member may receive per diem and travel expenses in accordance with:
(a) Section 
63A-3-106
;
(b) Section 
63A-3-107
; and
(c) rules made by the Division of Finance pursuant to Sections 
63A-3-106
 and
63A-3-107
.
(8) The office shall provide staff support to the board.
Section 4. Section 
63J-4-703
 is enacted to read:
 63J-4-703.
 Employability to Careers Program Restricted Account.
(1) There is created in the General Fund a restricted account known as the
"Employability to Careers Program Restricted Account."
(2) The restricted account consists of:
(a) money appropriated to the restricted account by the Legislature;
(b) income and interest derived from the deposit and investment of money in the
account; and
(c) private donations.
(3) Subject to legislative appropriations, money in the restricted account may be used
for the following purposes:
(a) to contract with a fiscal intermediary for the management of a results-based
contract;
(b) to contract with a programmatic intermediary to validate a feasibility analysis and
structure the terms and conditions of a results-based contract, including developing cost-benefit
financial models, performance outcome measures, payment schedules, and success thresholds;
(c) to contract with an independent evaluator as described in Section 
63J-4-704
;
(d) to pay for office expenses related to administering the Employability to Careers
Program and providing staff support to the board;
(e) to make payments to a fiscal intermediary that has entered into a results-based
contract with the board as described in Section 
63J-4-704
, if the independent evaluator selected
by the board determines that the performance-based results have been met; and
(f) to contract for other services as necessary to implement the Employability to
Careers Program.
Section 5. Section 
63J-4-704
 is enacted to read:
 63J-4-704.
Results-based contracts -- Board duties.
(1) (a) The board may negotiate and enter into a results-based contract with a fiscal
intermediary to provide payments to the fiscal intermediary upon the successful achievement of
specific outcome measures in accordance with Subsection 
63J-4-706
(2)(i) and the other
requirements of this part.
(b) The board may not issue a results-based contract that would cause the total
outstanding obligations under this part to exceed $15,000,000.
(2) A results-based contract shall include:
(a) a requirement that the repayment to the fiscal intermediary be conditioned on
specific performance outcome measures described in the results-based contract and in
accordance with this part;
(b) a requirement for an independent evaluator to determine whether the performance
outcome measures have been achieved; and
(c) a provision that payment to the program intermediary is:
(i) based upon available money in the restricted account at the time of payment; and
(ii) subject to legislative appropriation.
(3) The board shall select an independent program evaluator that:
(a) is a research organization;
(b) has experience conducting research in labor economics;
(c) has experience in conducting experimental or quasi-experimental design or other
research methodologies as described in Subsection 
63J-4-706
(2)(j) that allow for the strongest
possible causal inferences to determine whether the initiative has met the initiative's proposed
outcomes; and
(d) has access to state data required to implement the evaluation design.
(4) (a) In accordance with timelines established in a results-based contract, the
independent evaluator shall implement an experimental or quasi-experimental evaluation
design to determine whether the performance outcome measures set in the results-based
contract have been met.
(b) If the independent evaluator determines under Subsection (4)(a) that the
performance outcome measures have been met, the board shall pay the fiscal intermediary
according to the terms of a results-based contract.
(5) (a) The eligible program provider described in Section 
63J-4-705
 shall ensure that
each participant in a program funded in a results-based contract has given written permission
and signed an acknowledgment that the participant's data may be shared with a fiscal
intermediary, an independent evaluator, and the office for evaluation and reporting purposes.
(b) The board shall maintain a record of each written permission and signed
acknowledgment described in Subsection (5)(a).
(6) As further described in Section 
63J-4-705
, for an education, employability training,
and workforce placement program funded under this part, the board shall:
(a) select an eligible program provider;
(b) consider the recommendations of the programmatic intermediary in selecting an
eligible program provider; and
(c) engage the services of the programmatic intermediary to complete a feasibility
analysis in accordance with Section 
63J-4-706
 to assess the viability of the board entering into
a results-based contract with the selected eligible program provider.
(7) The board, with the assistance of the office and other state agencies that provide
services to eligible participants, may cooperate with an eligible program provider to identify
and refer eligible participants for the program.
Section 6. Section 
63J-4-705
 is enacted to read:
 63J-4-705.
Employability to Careers Program.
(1) There is created the Employability to Careers Program to provide funding for the
implementation of a results-based education, employability training, and workforce placement
program for eligible participants.
(2) With the assistance of the programmatic intermediary, the board shall establish
evaluation criteria for selecting an eligible program provider and shall consider
recommendations from the programmatic intermediary in evaluating and selecting an eligible
program provider.
(3) The board and the programmatic intermediary shall consider the following
requirements and criteria for selecting an eligible program provider:
(a) the potential eligible program provider's capacity to effectively implement the
components of an education, employability training, and workforce placement program as
described in Section 
63J-4-707
;
(b) the potential eligible program provider's experience in enrolling and serving the
eligible participants the program intends to serve, including participants who are economically
disadvantaged;
(c) the potential eligible program provider's ability to access state collaborative partner
networks and community resources;
(d) the potential eligible program provider's ability to address labor market needs and
workforce demands;
(e) the potential eligible program provider's ability to demonstrate that performance
outcome measures for the education, employability training, and workforce placement program
can be measured through an experimental or quasi-experimental design;
(f) the potential eligible program provider's ability to attract private or philanthropic
investors;
(g) the potential eligible program provider's strategy to implement the components of
an education, employability skills, and workforce placement program; and
(h) the potential eligible program provider's ability to provide the necessary data to a
programmatic intermediary for the feasibility analysis described in Section 
63J-4-706
.
(4) To be selected as an eligible program provider under this part, the eligible program
provider shall agree to:
(a) allow the evaluator, chosen in accordance with Section 
63J-4-704
, to review data
from the provider to ensure that the components described in Section 
63J-4-707
 are
implemented; and
(b) assign a unique identifier to each eligible participant enrolled in an education,
employability training, and workforce placement program with the eligible program provider
and maintain records of the performance outcome measures achieved by each eligible
participant.
Section 7. Section 
63J-4-706
 is enacted to read:
 63J-4-706.
Feasibility analysis.
(1) The board shall engage a programmatic intermediary to complete, within two
months of selecting an eligible program provider in accordance with Section 
63J-4-705
, a
feasibility analysis that assesses the ability of the potential eligible program provider to provide
a program that will successfully achieve performance outcome measures that are cost effective
and will result in cost savings or increased tax revenue to the state.
(2) The feasibility analysis shall include:
(a) assessing the size and characteristics of the eligible population in the state that
could benefit from the employment programs and services funded through the Employability to
Careers Program;
(b) assessing the eligible program provider's capacity to make effective use of funding
supplied through the Employability to Careers Program and with the likelihood to meet
predefined and measurable outcomes based on the following factors:
(i) the economic feasibility of the programs and services provided;
(ii) the capacity of the program to serve an increased customer base; and
(iii) the degree to which the program and services will help individuals attain
self-sufficiency;
(c) developing a viable expansion plan and determining how much the expansion plan
will cost;
(d) projecting the impact of the expansion plan on outcomes to the community;
(e) projecting the financial value of the improvements that may result from the
Employability to Careers Program investment, including projected public sector savings and
projected returns to investors;
(f) developing a cost-benefit analysis of the program;
(g) determining feasible results-based contract terms and financing structures;
(h) determining the potential pool of investors likely to invest both in and outside the
state;
(i) developing performance measures to project and measure financial and social
outcomes;
(j) ensuring an experimental or quasi-experimental research design can be used to
measure the attained performance measures attributable to the intervention;
(k) estimating how many eligible participants the potential eligible program provider
plans to serve;
(l) preparing a financial model, including the proposed payment terms, the
methodology used to calculate outcome payments, the payment schedule, and performance
thresholds; and
(m) reviewing the project budget and timeline.
Section 8. Section 
63J-4-707
 is enacted to read:
 63J-4-707.
Components of an education, employability training, and workforce
placement program.
(1) In addition to the other requirements of this part, an education, employability
training, and workforce placement program approved under this part may include the following
components:
(a) an employability skills certification program;
(b) resilience intervention for eligible participants;
(c) a multitiered system of supports for eligible participants; and
(d) a learning and employability plan for each eligible participant.
(2) Subject to legislative appropriations, and in accordance with the contract between
the board and the fiscal intermediary, a separate payment shall be made by the board from the
restricted account to the fiscal intermediary in a specific amount for each successful result in
accordance with the terms and conditions of the results-based contract.
Section 9. Section 
63J-4-708
 is enacted to read:
 63J-4-708.
Reporting.
(1) On or before October 1, the board shall provide an annual written report to the
Social Services Appropriations Subcommittee and the Economic Development and Workforce
Services Interim Committee.
(2) The written report shall include:
(a) information regarding the fiscal intermediary, the programmatic intermediary, the
eligible program provider, and the independent evaluator that have been selected;
(b) the results of the feasibility analysis conducted in accordance with Section
63J-4-706
;
(c) information regarding how many eligible participants have been served by the
education, employability training, and workforce placement program;
(d) a description of program expenses, including what payments have been made to the
intermediary and the cost to the state for each successful eligible participant outcome; and
(e) recommendations to the Legislature on any potential improvements to the
Employability to Careers Program, including whether the program should continue to receive
funding from the state.
Section 10. 
Appropriation.
The following sums of money are appropriated for the fiscal year beginning July 1,
2017, and ending June 30, 2018. These are additions to amounts previously appropriated for
fiscal year 2018. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
Act, the Legislature appropriates the following sums of money from the funds or accounts
indicated for the use and support of the government of the state of Utah.
ITEM 1
To Restricted Fund and Account Transfers -- General Fund Restricted --
 Employability to Careers Program Restricted Account
From General Fund, One-time
$1,000,000
Schedule of Programs:
General Fund Restricted -- Employability to
Careers Program Restricted Account $1,000,000
ITEM 2
To Governor's Office of Management and Budget -- Operations and Policy
From General Fund Restricted -- Employability to Careers Program
Restricted Account, One-time
$1,000,000
Schedule of Programs:
Employability to Careers Program $1,000,000
The Legislature intends that:
(1) under Subsection 
63J-1-601
(2), appropriations provided under this section not
lapse; and
(2) the use of any nonlapsing funds be limited to the purposes described in Section
63J-4-703
.