Employment Training Panel approves roughly $4.7 million for 15 training projects, raises vendor transparency questions

The Employment Training Panel approved approximately $4.7 million in training contracts at its Feb. 28 panel meeting, funding 15 projects across industries including manufacturing, biotechnology, automotive and construction and approving one delegation order. Panel members also discussed legislative proposals affecting the panel's rainy‑day fund and approved an amendment allowing a small Fresno printing firm to use an out‑of‑state vendor to install and train on specialized equipment.

Panel members said the awards are intended to help employers fund skills development and retention. Laura Campbell, Chief of Program Operations for the Employment Training Panel, told the panel the meeting considered about $4.7 million in funding requests, including one delegation order worth $45,211 and five projects on the consent calendar totaling $867,580. If all proposals were approved the panel would fund 15 projects, Campbell said.

Why it matters: the grants and contracts support employer‑led training tied to jobs in priority industries — manufacturing, life sciences, semiconductors, logistics and construction — and are intended to raise wages and retention for employees while helping employers adopt new equipment and processes.

What the panel approved - Cornerstone Building Brands Services Inc. (ETP key ET25‑0244): $243,712 to train 272 workers at sites in West Sacramento and Vacaville. Rob Spiller, plant manager, said the company expects wage progression tied to training — “with the training and development after about a year, probably a $2 progression would be expected,” he told the panel. Motion approved.

- Agenus West LLC: $127,400 to train 70 workers (first‑time contractor). Motion approved as part of a grouped vote.

- ORIC Pharmaceuticals Inc.: $186,648 to train 101 workers (first‑time contractor). Motion approved as part of a grouped vote.

- Buck Institute for Research on Aging (DBA Buck Institute): $249,760 to train 223 workers (first‑time contractor). Staff corrected a subcontractor payment in the proposal before approval. Motion approved as part of a grouped vote.

- MGM Biopharmaceuticals (ETP250234): $200,200 to train 110 workers (first‑time contractor). Motion approved.

- Alpine Corporation: $89,544 to retrain 39 workers at Los Angeles and Ventura sites. Motion approved.

- Brown's Construction Services Inc. (ETP25‑0239): $98,560 to train 88 workers in Bakersfield, Palmdale, Porterville and Clovis. Panel discussed wage bands and public/private project pay differences; motion approved.

- Crane Aerospace and Electronics (Hydro Air Aerospace Corp.): $599,200 to train about 535 new trainees at Los Angeles facilities. Motion approved.

- Reyes Coca‑Cola Bottling LLC: $599,760 to train 714 workers across multiple California sites. Motion approved.

- Karma Automotive Inc.: $327,600 to train about 260 workers in Orange and Riverside counties. Motion approved.

- Lam Research Corporation (semiconductor equipment manufacturer): $599,760 to train roughly 510 workers in Alameda County. Two abstentions were recorded on the motion; the contract was approved by the panel majority.

- Niagara Bottling LLC: $349,440 to train 312 workers at nine California locations. Motion approved.

- Workforce Development Corporation of Southeast Los Angeles County (contracting organization): $849,981 for statewide training with most activity in Los Angeles and Orange counties. Motion approved.

- Dumont Printing, Inc.: the panel approved an amendment allowing an out‑of‑state vendor (Bindery Machine Repair of Oakdale, Pennsylvania) to provide installation and on‑site training for specialized equipment; staff noted the contract number correction from ET230314 to ET240314. Motion approved.

- Global TechMed Holdings LLC: the panel approved the single remaining item on the consent calendar; Laura Campbell had removed four proposals from consent for separate review. The consent calendar motion (with the four exceptions) was approved by roll call.

Panel members noted application volumes and demand. Laura Campbell reported 92 applications in demand with an established demand of $102.8 million statewide, broken down by single‑employer, small business and multiple‑employer contracts; the panel remains within its fiscal‑year allocation. Campbell also noted that for the current fiscal year ETP had approved 23 delegation orders.

Vendor transparency and subcontractor questions Panel members pressed several first‑time contractors — particularly multiple life‑sciences firms — about reliance on a single subcontractor named in several applications. Chair Rebecca Bettencourt asked the companies to disclose how they learned about ETP and why they chose the same vendor. “We just ask that if using a vendor or a subcontractor to help write [an application], that it's just listed even if the 0 value is there,” Bettencourt said, asking for transparency when the same training provider appears across multiple applications.

Representatives from Agenus, Buck Institute, Aura (Org) Pharmaceuticals and MGM said they learned about the vendor (Hands On LLC) through HR networks such as Biocom or prior experiences; several said they would list subcontractor arrangements with staff if they engage them. Agency staff told the panel that subcontractor costs and the split between training and administrative work should be clearly delineated in applications and contract materials.

Legislative note and public comment Philip Herrera, representing the ETP Coalition for Jobs, told the panel a bill (referred to by coalition speakers as AB 765) seeks to protect the panel's rainy‑day fund from being swept to pay state unemployment insurance debt; he said the coalition sponsored the bill and described legislative interest in protecting ETP funding. ETP staff said the agency is reviewing the proposal and is not taking a formal position on the bill at this time. A commenter also reminded the panel that the governor’s January budget restored $50 million to ETP’s funding in that proposal; speakers urged ongoing stakeholder engagement as the budget and bill process continues.

Out‑of‑state vendor amendment Susan Moore, president of Dumont Printing of Fresno, told the panel that for highly specialized bindery equipment no qualified California installer was available; she asked the panel to allow an out‑of‑state vendor to provide installation and on‑site training. The panel approved the amendment after staff confirmed the vendor is the manufacturer’s recommended installer and that Dumont had pursued in‑state vendors as required.

Procedural and next steps The panel processed routine housekeeping items early in the meeting, approved the January minutes (with one correction to a Carlton Forge Works funding amount) and adopted an adjusted agenda grouping several similar proposals for concurrent consideration. Staff said a memorandum that analyzes newly introduced bills (including the bill that would limit certain uses of the employment training fund) will be provided in the next meeting packet. The panel adjourned at 11:10 a.m.

Votes at a glance (selected items) - Consent calendar (with four items pulled for separate review): approved by roll call. One consent item (Global TechMed Holdings LLC) was funded on consent. - Cornerstone Building Brands Services Inc. (ET25‑0244): approved (roll call). - Agenus West LLC (tab 1): approved (grouped vote). - ORIC Pharmaceuticals Inc. (tab 5): approved (grouped vote). - Buck Institute for Research on Aging (tab 11): approved (grouped vote). - MGM Biopharmaceuticals (tab 4): approved (roll call; $200,200). - Alpine Corporation (tab 6): approved (roll call; $89,544). - Brown's Construction Services Inc. (tab 7): approved (roll call; $98,560). - Crane Aerospace & Electronics (tab 9): approved (roll call; $599,200). - Reyes Coca‑Cola Bottling LLC (tab 10): approved (roll call; $599,760). - Karma Automotive Inc. (tab 12): approved (roll call; $327,600). - Lam Research Corp. (tab 13): approved (roll call; two abstentions recorded). - Niagara Bottling LLC (tab 14): approved (roll call; $349,440). - Workforce Development Corporation of Southeast Los Angeles County (tab 16): approved (roll call; $849,981). - Dumont Printing Inc. (tab 17, amendment to allow out‑of‑state vendor Bindery Machine Repair): amendment approved.

(Full vote records and roll‑call tallies are in the official minutes and the meeting transcript.)

Panel members and staff said they expect routine program updates and a legislative memorandum in the next meeting packet; stakeholders urged continued outreach to first‑time applicants and clarity in subcontractor disclosures to improve procurement transparency and contract administration.

Ending: The Employment Training Panel adjourned after completing its agenda and public comment; the next regular meeting date was not specified in the transcript.