Maryland  H 1128  (Talent Innovation Program and Fund )

Summary

Establishes the Talent Innovation Program in the Maryland Department of Labor to increase access to high-quality job training, with a focus on industries such as artificial intelligence.

Creates the Talent Innovation Fund as a special, nonlapsing fund to support the program, including job training and talent financing mechanisms.

Requires the program to conduct pilots, research, and stakeholder engagement to develop sustainable talent financing approaches.

Mandates an initial pilot program focused on the cybersecurity sector to expand regional cyber ranges for job training.

Authorizes the Department to provide grants and funding to various entities and individuals for training and support services.

Directs the State Treasurer to invest the fund's money, with interest earnings credited to the fund.

Compels the Department to adopt regulations and report annually on program activities and fund utilization to state leadership.

Establishes the Talent Innovation Program and Fund to enhance job training access in Maryland.

AN ACT concerning Labor and Employment – Workforce Development – Talent Innovation Program and Fund FOR the purpose of establishing the Talent Innovation Program in the Maryland Department of Labor to increase access to high–quality job training; establishing the Talent Innovation Fund as a special, nonlapsing fund; requiring interest earnings of the Fund to be credited to the Fund; and generally relating to the Talent Innovation Program and Talent Innovation Fund. BY adding to Article – Labor and Employment Section 11–1601 through 11–1604 to be under the new subtitle “Subtitle 16. Talent Innovation Program and Fund” Annotated Code of Maryland (2016 Replacement Volume and 2023 Supplement) BY repealing and reenacting, without amendments, Article – State Finance and Procurement Section 6–226(a)(2)(i) Annotated Code of Maryland (2021 Replacement Volume and 2023 Supplement) BY repealing and reenacting, with amendments, Article – State Finance and Procurement Section 6–226(a)(2)(ii)189. and 190. Annotated Code of Maryland (2021 Replacement Volume and 2023 Supplement) BY adding to Article – State Finance and Procurement Section 6–226(a)(2)(ii)191. Annotated Code of Maryland (2021 Replacement Volume and 2023 Supplement)

Defines key terms for Maryland's Talent Innovation Program and Fund, including "Board," "Division," "Fund," and "Program."

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Labor and Employment SUBTITLE 16. TALENT INNOVATION PROGRAM AND FUND. 11–1601. (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (B) “BOARD” MEANS THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD. (C) “DIVISION” MEANS THE DIVISION OF WORKFORCE DEVELOPMENT AND ADULT LEARNING. (D) “FUND” MEANS THE TALENT INNOVATION FUND. (E) “PROGRAM” MEANS THE TALENT INNOVATION PROGRAM.

Establishes a Talent Innovation Program to enhance job training using innovative financing in key sectors.

11–1602. (A) (1) THERE IS A TALENT INNOVATION PROGRAM IN THE DEPARTMENT. (2) THE DIVISION AND THE BOARD SHALL JOINTLY ADMINISTER THE PROGRAM. (3) THE PURPOSE OF THE PROGRAM IS TO INCREASE ACCESS TO HIGH–QUALITY JOB TRAINING BY USING INNOVATIVE AND SUSTAINABLE TALENT FINANCING MECHANISMS TO HELP MEET SKILL NEEDS IN THE STATE’S PROMINENT AND EMERGING INDUSTRY SECTORS, INCLUDING: (I) CYBERSECURITY; (II) HEALTH CARE; (III) BIOTECHNOLOGY; (IV) MANUFACTURING; AND (V) ARTIFICIAL INTELLIGENCE. (B) THE PROGRAM MAY CONDUCT PILOTS, CONVENE KEY STAKEHOLDERS, AND CONDUCT RESEARCH TO DEVELOP AND SUPPORT NEW TALENT FINANCING APPROACHES. (C) THE PROGRAM SHALL ESTABLISH AN INITIAL PILOT PROGRAM THAT FOCUSES ON THE CYBERSECURITY SECTOR BY SUPPORTING JOB TRAINING THROUGH EXPANSION OF REGIONAL CYBER RANGES, WHICH IS A RECOGNIZED METHOD FOR DEVELOPING TALENT AND MEETING THE SKILL NEEDS OF THE CYBERSECURITY INDUSTRY.

Establishes a Talent Innovation Fund to support programs, administered by the Secretary and held separately.

11–1603. (A) THERE IS A TALENT INNOVATION FUND IN THE DEPARTMENT. (B) THE PURPOSE OF THE FUND IS TO SUPPORT THE PROGRAM. (C) THE SECRETARY SHALL ADMINISTER THE FUND. (D) (1) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. (2) THE TREASURER SHALL HOLD THE FUND SEPARATELY, AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. (E) THE FUND CONSISTS OF: (1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; (2) GRANTS AND DONATIONS TO THE FUND; (3) INTEREST EARNINGS OF THE FUND; AND (4) ANY MONEY FROM ANY OTHER SOURCE ACCEPTED FOR THE BENEFIT OF THE FUND.

Allows the department to provide grants, matching funds, program funding, and cover administrative expenses.

(F) THE DEPARTMENT MAY USE THE FUND TO: (1) PROVIDE GRANTS: (I) TO ENTITIES, INCLUDING EMPLOYERS, INSTITUTIONS OF HIGHER EDUCATION, TAX EXEMPT ORGANIZATIONS, PUBLIC AGENCIES, LOCAL WORKFORCE DEVELOPMENT BOARDS, AND REGISTERED APPRENTICESHIP SPONSORS, AND RESIDENTS OF THE STATE; AND (II) FOR COSTS INCLUDING SUPPORT SERVICES, SUBSIDIZED WAGES, GRANTEES’ ADMINISTRATIVE COSTS, AND TRAINING; (2) PROVIDE MATCHING FUNDS TO SECURE DONATIONS OR GRANTS TO THE FUND; (3) PROVIDE FUNDING FOR THE PROGRAM AND OTHER TALENT FINANCE MECHANISMS, SUCH AS A PAY–IT–FORWARD PROGRAM, APPROVED BY THE DIVISION AND THE BOARD; AND (4) PAY EXPENSES FOR ADMINISTRATIVE, ACTUARIAL, LEGAL, AND TECHNICAL SERVICES FOR THE PROGRAM. (G) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO THE FUND. (H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE WITH THE STATE BUDGET. (I) MONEY EXPENDED FROM THE FUND FOR TALENT INNOVATION FUND PROGRAMS IS SUPPLEMENTAL TO AND IS NOT INTENDED TO TAKE THE PLACE OF FUNDING THAT OTHERWISE WOULD BE APPROPRIATED FOR WORKFORCE DEVELOPMENT PROGRAMS.

Allows the department to adopt regulations and mandates annual reporting to state officials.

11–1604. (A) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THIS SUBTITLE. (B) ON OR BEFORE JANUARY 1 EACH YEAR, BEGINNING IN 2025, THE DEPARTMENT SHALL REPORT TO THE GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF DELEGATES ON PROGRAM ACTIVITIES AND USE OF THE FUND.

Mandates net interest on state funds accrue to General Fund, exempting specific funds, effective July 1, 2024.

Article – State Finance and Procurement 6–226. (a) (2) (i) Notwithstanding any other provision of law, and unless inconsistent with a federal law, grant agreement, or other federal requirement or with the terms of a gift or settlement agreement, net interest on all State money allocated by the State Treasurer under this section to special funds or accounts, and otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of the State. (ii) The provisions of subparagraph (i) of this paragraph do not apply to the following funds: 189. the Teacher Retention and Development Fund; [and] 190. the Protecting Against Hate Crimes Grant Fund; AND 191. THE TALENT INNOVATION FUND. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1, 2024.