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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Heaton

 

DATE TYPED:

3/4/03

 

HB

24/aHBIC

 

SHORT TITLE:

Amend Development Training Program

 

SB

 

 

 

ANALYST:

Collard

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

See Narrative

$150.0

Recurring

OSF

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to House Bill 8 and House Bill 15

 

SOURCES OF INFORMATION

 

Responses Received From

Economic Development Department

 

SUMMARY

 

     Synopsis of HBIC Amendment

 

The House Business and Industry Committee amends House Bill 24 to state that no more than ten percent of the payments for training hours are for part-time positions.

 

     Synopsis of Original Bill

 

House Bill 24 amends the Industrial Development Training Program for the purpose of using training funds for part-time employees and to provide for training funds for full-time-equivalent employees.

 

     Significant Issues

 

The Industrial Development Training Program (IDTP) currently offers funding for full-time employees because companies offer benefits to those positions.  In most cases, benefits are not offered to part-time employees.  The Economic Development Department is concerned that more companies will opt to hire part-time positions, rather than full-time positions, because of the benefits.  Therefore, if enacted, the IDTP board would enact a policy to require that benefits be offered to part-time employees in order to qualify for training monies.

 

FISCAL IMPLICATIONS

 

There is no appropriation associated with this bill.  However, if it is enacted, IDTP will request $150.0 for administrative costs.

 

ADMINISTRATIVE IMPLICATIONS

 

The Economic Development Department indicates administrative responsibilities would increase due to the number of part-time employees the department would have to track. 

 

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

 

This bill is related to House Bill 8 and House Bill 15, both of which appropriate general fund dollars to the IDTP program, more commonly known as in-plant training.

 

POSSIBLE QUESTIONS

 

  1. What are the benefits and downfalls of incorporating part-time employees in the IDTP program?
  2. Does the department feel strongly about incorporating part-time employees in the program ?

 

KBC/njw:yr