Assembly BillPassed first houseUnemployment Insurance
AB 2300: Workforce development: applicable law.
What AB 2300 does, verified August 15, 2026
The bill aims to improve workforce development in California by adding sections to the unemployment insurance code. It provides exemptions for grants awarded by the Employment Development Department to local workforce development boards or their fiscal agents, allowing them to implement workforce development programs without state contract review. The bill also requires that all funds disbursed by the department be subject to federal financial reporting and auditing requirements, and that records be retained in accordance with federal regulations. Additionally, it clarifies that workforce directives and guidance issued by the department are not subject to the rulemaking provisions of the Administrative Procedure Act. If the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs will be made pursuant to the state's reimbu…
Bill journey
✓IntroducedComplete
✓In CommitteeComplete
✓First Chamber FloorComplete
4Second ChamberCurrent
5GovernorPending
6ChapteredPending
Last action: In committee: Held under submission. (2026-08-13)Alert me
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Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions17 total · showing 5
| Aug. 13, 2026 | In committee: Held under submission. |
| Aug. 03, 2026 | In committee: Referred to APPR. suspense file. |
| Jul. 01, 2026 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (July 1). Re-referred to Com. on APPR. |
| Jun. 10, 2026 | Referred to Com. on L., P.E. & R. |
| May. 27, 2026 | In Senate. Read first time. To Com. on RLS. for assignment. |
Latest bill textAmended version, May 18, 2026 · 1,055 words
| Amended IN Assembly May 18, 2026 |
| Amended IN Assembly March 16, 2026 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 2300
| Introduced by Assembly Member Arambula |
February 19, 2026 |
An act to add Sections 14003.5 and 14003.7 to the Unemployment Insurance Code, relating to workforce development.
LEGISLATIVE COUNSEL'S DIGEST
AB 2300, as amended, Arambula. Workforce development: applicable law.
Existing federal law, the Workforce Innovation and Opportunity Act (WIOA), provides for workforce development activities, including activities in which states may participate. Existing state law, the California Workforce Innovation and Opportunity Act (CalWIOA), establishes the California Workforce Development Board to assist the Governor in the development, oversight, and continuous improvement of California’s workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. CalWIOA creates the Consolidated Work Program Fund in the State Treasury, for the receipt of all moneys deposited pursuant to WIOA and requires moneys in the fund to be made available, upon appropriation by the Legislature, to the Employment Development Department for expenditure consistent with the purposes of WIOA, and requires the establishment of a local workforce development board in each local workforce development area of the state to, among other things, plan and oversee the workforce investment system.
This bill would provide that federal- and state-source grants or subgrants, as defined, subgrants awarded by the Employment Development Department to local workforce development boards or the fiscal agents of local workforce development areas, as defined, for the purpose of implementing workforce development programs administered by the department are exempt from specified provisions applicable to state contracts and the State Administrative Manual, and are exempt from the review or approval of any division of the Department of General Services.
This bill would require that all funds disbursed by the department to local workforce development boards or the fiscal agents of local workforce development areas be subject to the same financial reporting, recordkeeping, and auditing requirements applicable to federal funds under WIOA, and that all records related to the disbursement and expenditure of these funds be retained in accordance with specified federal regulations. The bill would require subrecipients to maintain separate accounting for each state grant code and utilize the department’s automated reporting systems. By imposing new requirements on local workforce development boards, this bill would impose a state-mandated local program.
This bill would provide that workforce directives, bulletins, or other written guidance issued by the department to implement, interpret, or make specific the administration of workforce development programs under CalWIOA or federal law are not subject to the rulemaking provisions of the Administrative Procedure Act, and would specified requirements for that guidance issued by the department.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
The people of the State of California do enact as follows:
SECTION 1.
Section 14003.5 is added to the Unemployment Insurance Code, to read:14003.5.
(a) For purposes of this section, the following definitions apply:(1) “Fiscal agent” means the entity designated to serve as a local fiscal agent pursuant to Section 679.420 of Title 20 of the Code of Federal Regulations.
(2)“Grant” has the same definition as “grant agreement or grant” in Section 200.1 of Title 2 of the Code of Federal Regulations.
(3)“Subgrant” has the same definition as “subaward” in Section 200.1 of Title 2 of the Code of Federal Regulations.
(2) “Grants or subgrants” means allocations of both federal- and state-source funds awarded by the Employment Development Department to local workforce development boards or the fiscal agents of local workforce development areas for the purpose of implementing workforce development programs administered by the department, treated as grants or subventions for public purposes.
(b) Grants or subgrants awarded by the Employment Development Department to local workforce development boards or the fiscal agents of local workforce development areas for the purpose of implementing workforce development programs administered by the department are exempt from Article 2 (commencing with Section 10295) of Chapter 2 of Part 2 of Division 2 of the Public Contract Code and the State Administrative Manual, and are exempt from the review or approval of any division of the Department of General Services.
(c) (1) All funds disbursed by the Employment Development Department to local workforce development boards or the fiscal agents of local workforce development areas shall be subject to the same financial reporting, recordkeeping, and auditing requirements applicable to federal funds under the Workforce Innovation and Opportunity Act (WIOA). All records related to the disbursement and expenditure of these funds shall be retained in accordance with Part 200 of Title 2 of the Code of Federal Regulations.
(2) Subrecipients shall maintain separate accounting for each state grant code and utilize the department’s automated reporting systems to ensure full accountability and transparency.
(3) This section shall not be interpreted to limit any reporting, recordkeeping, or auditing requirements imposed by state law applicable to funds disbursed under this division.
SEC. 2.
Section 14003.7 is added to the Unemployment Insurance Code, to read:14003.7.
(a) Workforce directives, bulletins, or other written guidance issued by the Employment Development Department to implement, interpret, or make specific the administration of workforce development programs under this division or federal law are not subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).(b) Guidance issued pursuant to this section shall be publicly available and shall identify the statutory or federal authority upon which it is based.
(c) Guidance issued pursuant to this section may be relied upon by the department and local workforce development boards unless and until superseded by regulations adopted pursuant to the Administrative Procedure Act.
SEC. 3.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.Text of AB 2300 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions