Funding Limitations

• Adult Entertainment – This includes the design, manufacture, distribution, servicing, management or sale of products or services in the adult entertainment.
• Commission Sales occupations in Retail Trade
• Gambling
• Mortgage Banking – This includes financial and collections institutes.
• Car Dealerships
• Multi-Level Marketing
• Training for employees of Training Agencies
• Truck driving schools
• Partners & Principals in Professional Firms – This includes legal, architectural, engineering, accounting, and tax advising firms.

• Vendor/Subcontractor Limitation – (eliminated Broker Model Policy) – The Vendor Limitation prohibits any vendor/subcontractor from providing both training – and project development or administration. This limitation applies to all ETP contractors and training vendors, with the following exceptions for a training vendor: Western Association of Schools and Colleges (WASC) approved; Accrediting Commission for Community and Junior Colleges (ACCJC ) approved; Bureau of Private Post-Secondary Education (BPPE) approved; or, A vendor that has received an exemption from Executive Staff.

• Repeat Contractor Rule (Pilot) – 
  • Contractors may have 2 contracts without any waiting period.
  • After the end of 2^nd contract term, contractor must wait 9 months before applying (Pre-Application) for 3^rd contract.
  • If performance on any contract is below 75%, the amount of the new contract will be no more than the amount earned under prior the contract.
  • Repeat Contractor Rule described above starts over with 3^rd contract.
  • Contractor may earn a maximum of $2.5 M over 4 contracts.
  • Critical Proposals, Alternatively Funded Projects, Small Business Projects, and MECs are exempt from the Repeat Contractor Rule. Any Contractor desiring exemption from the rule may request an exemption with Executive Staff.

• Substantial Contribution (SC) – Substantial Contribution is a reduction in reimbursement amount and can be applied by the Panel. The Panel has flexibility to set the % on case by case basis.

• Support Costs – Multiple Employer Contract (MEC) support costs will default to the highest percentage (8% of training costs for retraining and 12% for new hire training). Applicants must justify the need for and amount of support costs, case-by-case.

• Employer Demand in a MEC – Multiple Employer Contractors requesting funds for retraining must demonstrate participating employer demand for training, based on the MEC’s prior performance. If prior performance is 80% or more, the MEC must demonstrate 60% demand. If prior performance is less than 80%, the MEC must demonstrate 80% demand.

Employment Training Panel Awards More Than $13 million to Train 9,000 Workers

The State of California’s Employment Training Panel approved 41 contracts worth more than $13 million to train nearly 9,000 workers. The panel awarded nearly $895,000 to Applied Materials, Inc. in Santa Clara to train 710 workers in the manufacturing of semiconductor chips for electronics and other technologies. Applied Materials uses nano-manufacturing equipment, machines and tools to make input products for semiconductor wafers and chips, flat panel displays, high-density batteries, solar photo-voltaic cells and modules, and other electronics.

The Employment Training Panel has adopted guidelines to be used in making eligibility determinations for funding training by private post-secondary schools (Training Agencies). See summary of Training Agency Certification guidelines.

The determination of funding eligibility will be made by ETP during pre-application, with reference to these guidelines. (See also Unemployment Insurance Code Section 10210 and Title 22, California Code of Regulations Section 4400(z).