Panel Priorities & Limitations

The Panel has approved the following industries sectors as “Priority Industry” as defined by their NAICS Codes (North American Industry Classification System). Click here for more information on specific priority NAICS.

Priority Industries: 

• Agriculture
• Allied Healthcare
• Biotechnology and Life Sciences
• Construction
• Green/Clean Technology
• Goods Movement and Transportation Logistics
• Information Technology Services
• Manufacturing/Food Production
• Multimedia/Entertainment
• Technical Services

Within these industries, the Panel also supports the following priority initiatives and programs:

• Job Creation Priorities
• Projects Serving Veteran Trainees
• Small Business Projects
• Critical Proposals – GO-BIZ Referrals
• Clean Transportation Program (CTP under the AB118)
• Drought – RESPOND
• Pilots and Guidelines

• 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.
• 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.
• Non-Priority Industry –  Non-Priority Industry Single Employers (including Small Business), as designated by EDD assigned NAICS code, with the exception of non-Priority Industry companies that fall under the COVID-19 Response Plan expedited listing or under the COVID Pilot eligible NAICS code listing.

• Amendment Limitations:
  • Single Employers:
    • There may be a maximum of two amendments adding funding to any contract.
    • This additional funding may not bring the project above its relevant project cap.
    • Amendments may only be requested once a contractor has earned 70% on their contract. Earned = final payment has been approved by fiscal.
    • Amendments may be for Phase II funding only; and,
    • Panel may reduce the requested Amendment amount.

• Contract Limitations:
  • MECs:
    • All MECs are limited to 1 contract per Fiscal Year

• Car Dealerships
  • Limited to training mechanics Only for Core Funding

• 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.