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Stakeholders press for bill to protect ETP reserve as coalition outlines AB 765
Summary
Speakers at the Feb. 28 ETP meeting described AB 765, a bill sponsored by stakeholders to protect the Employment Training Fund’s reserve from being swept to pay unemployment insurance (UI) debt; staff said ETP remains agnostic and is researching the measure.
Philip Herrera, chair of the ETP Coalition for Jobs, used the panel’s public comment period to announce a sponsored bill, AB 765, intended to shield the ETP rainy‑day fund from sweeps to pay unemployment insurance debt. Herrera said legislative staff and the Employment Development Department spoke positively about ETP at a recent subcommittee hearing, and coalition members are working to preserve the fund in the governor’s budget process.
Why it matters: ETP’s reserve has been referenced in recent budget discussions as a potential source for deficit reduction. Stakeholders argue the fund is employer‑financed and used expressly to support employer training, and they urged lawmakers not to reallocate it to other purposes.
What staff said: ETP staff attorney Mike Cable told the panel the agency is agnostic on the bill and is continuing to analyze the legislative language; he said the item will be included in future materials for the panel’s consideration.
What proponents said: Herrera described AB 765 as protective in nature and reported momentum in the legislature, including a governor’s budget restoration of $50 million to ETP in January. He framed the bill as preserving ETP’s ability to support employer‑driven training across California.
Next steps: The bill remains in the legislative process and will be monitored by ETP staff and stakeholders. Panel members and staff will track updates and expect an itemized staff memorandum in a future packet with any recommended positions or analyses.
Direct quote: "We sponsored a bill, AB 765, that will essentially protect ETP's rainy day fund going forward if signed by the governor," said Philip Herrera during public comment.
