Assembly BillFailedUnemployment Insurance
AB 765: Employment Training Fund: federal loan interest payments.
What AB 765 does, verified February 3, 2026
The bill aims to amend the unemployment insurance code to prevent diversion of funds from the employment training fund. The fund can only be used for its intended purposes, and any interest on federal loans to the unemployment fund must be paid with legislative approval and a public report justifying the need. The bill makes related findings and declarations to ensure transparency and accountability in the management of the fund.
Bill journey
✓IntroducedComplete
2In CommitteeCurrent
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. (2026-02-02)Alert me
Author and sponsors
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| Feb. 02, 2026 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
| Jan. 31, 2026 | Died pursuant to Art. IV, Sec. 10(c) of the Constitution. |
| Apr. 03, 2025 | From committee: Do pass and re-refer to Com. on INS. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (April 2). Re-referred to Com. on INS. |
| Mar. 03, 2025 | Referred to Com. on L. & E. |
| Feb. 19, 2025 | From printer. May be heard in committee March 21. |
Latest bill textIntroduced version, February 18, 2025 · 665 words
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 765
| Introduced by Assembly Member Flora |
February 18, 2025 |
An act to amend Section 1611 of the Unemployment Insurance Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 765, as introduced, Flora. Employment Training Fund: federal loan interest payments.
Existing law establishes the Employment Training Panel within the Employment Development Department and sets forth its powers and duties with respect to certain employment training programs. Existing law establishes the Employment Training Fund in the State Treasury, and requires that moneys in the fund be expended only for the purposes of the Employment Training Panel, except as provided. Existing law authorizes, with the approval of the Legislature, the fund or contributions to it to be used to pay interest charged on federal loans to the Unemployment Fund.
This bill would instead prohibit moneys in the fund from being diverted, transferred, or otherwise used to pay interest charged on federal loans to the Unemployment Fund, or related liabilities, without the approval of the Legislature by statute and a public report justifying the necessity for the diversion, transfer, or use. The bill would also make related findings and declarations.
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:(a) The Employment Training Panel is vital for workforce development and supports California’s economic competitiveness by addressing employer and worker needs for training and upskilling.
(b) The use of the Employment Training Fund to pay down interest on federal loans undermines the Employment Training Panel’s purpose and hinders the state’s ability to foster a skilled workforce.
(c) It is in the best interest of the state to ensure that Employment Training Panel funds are preserved exclusively for their intended purpose.
SEC. 2.
Section 1611 of the Unemployment Insurance Code is amended to read:1611.
(a) Moneys in the Employment Training Fund shall be expended only for the purposes of Chapter 3.5 (commencing with Section 10200) of Part 1 of Division 3, and for the costs of administering this article and Section 976.6, except those moneys may be used for any of the following:(a)With the approval of the Legislature, the fund or contributions to it may be used to pay interest charged on federal loans to the Unemployment Fund.
(b)
(1)
Commencing with allocations made to the Employment Training Panel in the 1992–93 fiscal year, any moneys allocated to the panel in a fiscal year that are not encumbered by the panel in that fiscal year shall revert to the Unemployment Insurance Fund.(c)
(2)
It is the intent of the Legislature that the panel shall closely monitor program performance and expenditures for employment training programs administered by the panel, and that the panel shall expeditiously disencumber funds that are not needed for employment training program completion. Commencing with the 1992–93 fiscal year, those moneys that are disencumbered during the fiscal year that are not reencumbered during the same fiscal year shall revert to the Unemployment Insurance Fund.(d)
(3)
Notwithstanding any other law, the Controller may use the moneys in the Employment Training Fund for loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code. However, interest shall be paid on all moneys loaned to the General Fund from the Employment Training Fund. Interest payable shall be computed at a rate determined by the Pooled Money Investment Board to be the current earning rate of the fund from which loaned. This subdivision does not authorize any transfer that will interfere with the carrying out of the object for which the Employment Training Fund was created.(b) Moneys in the fund shall not be diverted, transferred, or otherwise used to pay interest charged on federal loans to the Unemployment Fund, or related liabilities, without the approval of the Legislature by statute and a public report justifying the necessity for the diversion, transfer, or use.
Text of AB 765 as introduced, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions