1. (a) In Kind Contributions may be monetary or non-monetary but they must be in addition to the training costs reimbursed by ETP. In-Kind Contributions must demonstrate a commitment to the successful outcome of the retraining project.
2. (b) A Single Employer Contractor must contribute at least 100 percent of the approved amount of ETP funding, except in the case of a small business with 100 or fewer full-time employees where the contribution must be at least 50 percent of the approved amount.
3. (c) A Multiple Employer Contractor must contribute at least 50 percent of the approved amount of ETP funding based on the sum of all participating employer contributions to the retraining project as a whole, as well as any contributions that may be made by the Multiple Employer Contractor.

4. (d) In-Kind Contributions may consist of wages and benefits paid to trainees during the hours of ETP-funded training. They may include out-of-pocket costs, such as one or more of the following:

   1. (1) One-time or ongoing assessment of training needs/results
   2. (2) Development of the retraining proposal or curriculum
   3. (3) Costs or fees that exceed the amount reimbursed by ETP
   4. (4) Facility and equipment usage directly attributable to the retraining project
   5. (5) Training textbooks, programs, aids and supplies
   6. (6) Lost production time during the hours of training

   7. (7) Wages paid to “replacement workers” during the hours of training

      In-Kind Contributions may also include the cost of training non-eligible participants, and conducting on-the-job training in the same or similar curriculum. They may not include costs paid by, or fees absorbed by, a subcontractor.

5. (e) In-Kind Contributions may not include costs that result from a legal mandate. Nor may they include costs that are incurred in the course of complying with standards imposed by the law, or otherwise, such as one or more of the following:

   1. (1) professional or vocational licensing or certification
   2. (2) Job-related physical examination or drug screening
   3. (3) vocational safety training

   4. (4) equal employment opportunity training

      In-Kind Contributions may not include substantial contributions within the meaning of Section 4410. In addition, they may not include refundable “deposits” charged by the Contractor to a participating employer(s) in order to ensure trainee participation or retention.

The Contractor must make In-Kind Contributions toward the cost of retraining. This requirement does not apply to new hire training. The Contractor is solely responsible for reporting In-Kind Contributions to ETP.

Note: Authority cited: Section 10205(m), Unemployment Insurance Code. Reference: Sections 10200(a)(1) and 10206(b), Unemployment Insurance Code.

History

1. New section filed 6-28-2006; operative 7-28-2006 (Register 2006, No. 26).