Creates within the department of economic development the strategic training alliance program to fund regional skills training programs; repealer

Creates the New York State Strategic Training Alliance Program within the purview of the Department of Economic Development. It proposes to deliver skills training services to strategic alliances, which are defined as networks, associations or other groups of employers within a training area, joined formally or informally for purposes of solving common problems or working cooperatively.

For the purposes of this bill, training providers are defined as community colleges, agricultural and technical colleges, institutions of higher education, local education agencies, community based organizations or strategic alliances. Training areas are defined as geographic areas identified as service delivery areas pursuant to the Job Training Partnership Act or workforce investment areas pursuant to the Workforce Investment Act.

The Department of Economic Development, in cooperation with the UDC, SUNY, CUNY, SED, DOL and any other appropriate State agency, is required to provide assistance to support training activities by eligible applicants who are defined as a strategic alliance, or a consortia of alliances, or a private industry council, or a consortia of councils acting on behalf of one or more strategic alliances. The Department of Economic Development is required to:

-Notify eligible applicants of the availability of funds; -Solicit and accept plans for training from alliances or PICS on behalf of alliances; -Promote the program to the business sector; - Ensure that 50% or more of program funds are used to assist small businesses of under 100 employees; - Ensure that 25% of funds are used to train individuals who are unemployed, economically disadvantaged or economically dislocated. The bill also requires applicants to submit plans that include the following:

-A description of the economy of the training area, highlighting sectors of growth or job loss; -A statement of need for assistance and an identification of other sources of training funds within the area; -A statement of demand for training by occupation; -A commitment by the alliance to provide 50% match in the form of cash or inkind contributions; -The estimated number of individuals to be trained, hired and retained as a result of specific projects developed by businesses in the area; -A description of any high-tech system to be used to disseminate training in partnership with institutions of higher learning; -A description of training projects to be supported in the area. Any positions created as a result of this training program will be filled by unemployed, economically disadvantaged or dislocated persons. In addition, funds will be made available by the department to solicit proposals to design and develop systems for the implementation of an electronically supported system for statewide or regional application. Also, any incumbent worker training proposed to be funded with discretionary Workforce Investment Act funds must conform to the provisions of this act.

Annual reports are required to be submitted by the eligible applicants to the Department of Economic Development and by the department to the Governor and Legislature. An independent biennial evaluation is also required of the department.

§ 2- Repeals § 16-j of § 1 of Chapter 174 of the Laws of 1968, constituting the Urban Development Corporation Act.

§ 3- Effective date.

Effects of present law this bill would alter

This bill adds a new article 8-A to the Economic Development Law.

Justification

The issue of workforce development and skills training has skyrocketed to the top of the list of critical economic development issues. In sector after sector, there are reports of shortages of qualified workers. This phenomenon will likely increase unless we act quickly to address it.

In a recent business Week survey, CEOs identified access to a skilled workforce as the second most important factor in choosing a business location. During the 90' s, identifying and maintaining the skills of the workforce has become one of the most important competitive issues for businesses and the public sector. In the years to come the competitive pressures of a globalization will only increase the importance of maintaining a skilled workforce.

The training services envisioned in this bill would be delivered through strategic alliances, or networks, or consortia of businesses within an industry. Each alliance would shape the training and choose the provider. As a result, workers would have the advantage of being trained to work in any number of firms within an alliance, not just one. In addition, businesses within an alliance would be ensured of a pool of skilled workers in reserve.

This innovative approach to skills training and workforce education can set us on a new path toward making and keeping New York State home to the very best workforce in the world and, thus, have a major impact on the competitiveness of New York State's economy well into the new millenium.

Prior legislative history

2007-2008: A.3119 2005-2006: A.3192 2003-2004: A.3364 2001-2002: A.1002 1999-2000: A.7253

Fiscal implications

Minimal to the State.

Effective date

This act shall take effect immediately.