(1) As used in this section:

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(a) ‘Community-based organization’ has the meaning given that term in ORS § 660.390.

(b) ‘Community college’ has the meaning given that term in ORS § 341.005.

(c) ‘Workforce service provider’ includes:

(A) Nonprofit and public workforce education, training and career services providers.

(B) Governmental entities that are providers of workforce development services.

(2) There is established in the Higher Education Coordinating Commission a program to award grants to workforce service providers and community-based organizations that administer workforce programs in the health care, manufacturing and technology industry sectors and that prioritize equitable program participation by individuals from priority populations.

(3) The commission shall establish criteria and standards by which a workforce service provider or a community-based organization may submit a proposal to receive a grant under this section. In establishing criteria and standards, the commission shall consider federal nondiscrimination and equal opportunity provisions of the Workforce Innovation and Opportunity Act. The commission shall award grants on a competitive basis, taking into consideration proposals that:

(a) Describe how the workforce service provider or the community-based organization intends to engage with employers in the targeted industry sectors to provide workforce development opportunities to individuals from priority populations.

(b) Demonstrate the workforce service provider’s or the community-based organization’s experience serving individuals from priority populations.

(c) Describe how the workforce service provider or the community-based organization intends to collaborate with one or more of the following entities to increase accessibility for priority populations to workforce programs and opportunities:

(A) Other workforce service providers or community-based organizations;

(B) Kindergarten through grade 12 schools;

(C) Community colleges;

(D) Education and training partners;

(E) Local workforce development boards;

(F) Economic development organizations;

(G) Industry associations; and

(H) Universities, as defined in ORS § 660.350.

(d) Demonstrate that a workforce partner with which a workforce service provider or a community-based organization intends to partner possesses specific qualifications, including the organizational and technical capacity, necessary to carry out the purposes described under subsection (5)(a) to (d) of this section.

(e) Prioritize opportunities to leverage the use of other funding sources, including federal funds and private sector contributions, toward workforce programs and opportunities.

(4) In awarding grants under this section, the commission shall consult with the State Workforce and Talent Development Board and shall incorporate input from local workforce development boards and industry consortia convened under ORS § 660.410.

(5) Grant moneys awarded under this section shall be expended for one or more of the following purposes:

(a) To provide paid work experience, including stipends and wages;

(b) To offer tuition and fee assistance for workforce programs;

(c) To provide wraparound workforce development services;

(d) To develop culturally and linguistically specific career pathways for obtaining certificates, credentials or degrees recognized by targeted industry sectors; and

(e) To fund organizational investments, including, but not limited to:

(A) Hiring staff;

(B) Developing organizational development strategies;

(C) Purchasing equipment, technology or other training-related supplies;

(D) Covering administrative costs; and

(E) Any other activities identified in a grant proposal as necessary to administer workforce programs described under this section.

(6)(a) If a grant recipient expends moneys to provide paid work experience to individuals participating in a workforce program administered by the grant recipient, the grant recipient shall:

(A) Notwithstanding ORS § 653.025, pay wages to individuals participating in the program at a rate that is:

(i) Equivalent to an entry-level training wage as determined by the grant recipient pursuant to paragraph (b) of this subsection; and

(ii) In alignment with the wage progression schedule established by the grant recipient under subparagraph (B) of this paragraph;

(B) Establish a wage progression schedule that includes the step progression requirements and the rate calculation formula upon which the grant recipient shall make determinations about a participating individual’s eligibility to increase the individual’s wage rate from an entry-level training wage to a wage rate that is equivalent to the average area wage standard for an hour’s work in the same trade or occupation in the locality where the labor is performed;

(C) Develop a training plan for individuals participating in the program that includes, at a minimum:

(i) The entry-level training wage that will be paid to the individual;

(ii) A statement that the individual shall be paid according to the wage progression schedule established by the grant recipient entity, along with a description of the requirements that the individual must meet in order to progress to a higher wage rate under the wage progression schedule;

(iii) A statement that the entry-level training wage paid to the individual may not be less than the federal minimum wage rate or the applicable state minimum wage rate, whichever is greater; and

(iv) A statement explaining that the entry-level training wage paid to the individual is a minimum standard and that a higher wage rate shall be paid to the individual if so required under other applicable federal or state laws, regulations or a collective bargaining agreement; and

(D) Provide each individual participating in the program with a copy of the training plan described in subparagraph (C) of this paragraph on the date on which the individual first begins participating in the program.

(b) For purposes of paragraph (a)(A) of this subsection, the entry-level training wage shall be a percentage amount of the average area wage standard for an hour’s work in the same trade or occupation in the locality where the labor is performed, but in no event may the entry-level training wage be less than the applicable state minimum wage rate under ORS § 653.025.

(c) An individual who performs work for grant recipient described in this subsection shall be considered an employee of the grant recipient for purposes of state wage and hour laws and state laws prohibiting employment discrimination and retaliation.

(7) The commission shall compile information from each recipient of a grant under this section regarding the status and use of grant funds to ensure funding is expended for permissible purposes. At a minimum, the information must include, where applicable:

(a) The number of individuals who have registered for or completed a workforce program in health care, manufacturing or technology;

(b) The number of workforce programs developed and administered by a workforce service provider or a community-based organization;

(c) The job placement rate for and income earnings by individuals participating in a workforce program described under this section;

(d) The number of individuals from priority populations who receive services or benefits from workforce programs administered by a workforce service provider or a community-based organization; and

(e) A description of the types and amount of wraparound workforce development services provided by a workforce service provider or a community-based organization.

(8) The commission may adopt any rules necessary for carrying out the provisions of this section. [2022 c.28 § 9; 2023 c.343 § 4]