Section 4410 - Substantial Contributions(a) For retraining projects, every employer must make a substantial contribution toward the cost of training, in the amount of:(1) Not less than 15% of the total training and administrative costs funded by the Panel, exclusive of in-kind contributions, if payment was earned for retraining at the same facility in the amount of $250,000 or more within the previous five years. However, this substantial contribution may not exceed 30%.(2) Not less than 30% of the total training and administrative costs funded by the Panel, exclusive of in-kind contributions, if the employer made a substantial contribution under a prior or active ETP Agreement within the previous five years. However, this substantial contribution may not exceed 50%. Additionally, the Panel may decrease this substantial contribution, to no less than 15%, but only upon a showing of good cause by the employer.(b) The following definitions of terms apply to substantial contributions at all levels: (1) The term "facility" is defined in Section 4400(i).(2) The term "payment earned" is defined in Section 4400(r).(3) The term "ETP Agreement" means a single contract or Multiple Employer Contract (MEC) that sets forth performance standards for payment earned.(4) The term "employer" has the same meaning as in Unemployment Insurance Code Section 10201(a). As used herein, employer includes any "participating employer" under a MEC. The identity of the employer shall be based on the California Employer Account Number (CEAN) assigned by the Employment Development Department for the purpose of Unemployment Insurance tax collection, coupled with the location of the facility at which retraining occurs.(5) The term "previous five years" means a continuous time period beginning on the termination date of the prior ETP Agreement(s), except if the Panel anticipates payment earned of $250,000 or more in an active ETP Agreement as set forth in Subsection (c) below.(c) Payment earned may be based on anticipated performance under an active ETP Agreement at the Panel's discretion, on a case-by-case basis. In exercising discretion, the Panel will consider the following factors:(1) Remaining term of the ETP Agreement;(2) Funding amount as approved or amended;(3) Amount of payment earned to date;(4) Number of trainees with completed retention;(5) Percentage of payment earned relative to approved funding for all ETP Agreements that terminated in the previous five years. In the event payment is not earned as projected, the Panel shall reverse the Substantial Contribution assessment for the subject contract.
(d) There is no substantial contribution requirement when the employer is a small business with 100 or fewer full time employees.(e) The substantial contribution requirement may be modified for a Critical Proposal as set forth in Section 4402.2(b).Cal. Code Regs. Tit. 22, § 4410
1. New section filed 4-12-91; operative 4-12-91 pursuant to Government Code section 11346.2(d) (Register 91, No. 18).
2. Repealer filed 12-1-95; operative 12-1-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 48).
3. New section filed 7-19-96; operative 7-19-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 29).
4. Amendment of subsections (a) and (d)(1) filed 11-26-97; operative 11-26-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 48).
5. Amendment of subsections (a) and (b) filed 7-7-98; operative 7-7-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 28).
6. Amendment of section and NOTE filed 4-18-2008; operative 7-1-2008 (Register 2008, No. 16). Note: Authority cited: Section 10205, Unemployment Insurance Code. Reference: Section 10209(d), Unemployment Insurance Code.
1. New section filed 4-12-91; operative 4-12-91 pursuant to Government Code section 11346.2(d) (Register 91, No. 18).
2. Repealer filed 12-1-95; operative 12-1-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 48).
3. New section filed 7-19-96; operative 7-19-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 29).
4. Amendment of subsections (a) and (d)(1) filed 11-26-97; operative 11-26-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 48).
5. Amendment of subsections (a) and (b) filed 7-7-98; operative 7-7-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 28).
6. Amendment of section and Note filed 4-18-2008; operative 7-1-2008 (Register 2008, No. 16).