A 8988: Enacts the "workforce development consolidation act" which transfers the office of strategic workforce development from the department of economic development to the department of labor; repeals provisions relating to such transfer.

  
  STATE OF NEW YORK ________________________________________________________________________ 8988 2025-2026 Regular Sessions  IN ASSEMBLY August 13, 2025 ___________ Introduced by M. of A. SLATER -- read once and referred to the Committee on Economic Development AN ACT to amend the labor law, in relation to the office of strategic workforce development; to repeal section 100-b of the economic devel- opment law, relating thereto; and in relation to transferring the office of strategic workforce development from the department of economic development to the department of labor The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "workforce development consolidation act of 2025". 3 § 2. Legislative findings and intent. The legislature finds that a 4 fragmented approach to workforce development across multiple state agen- 5 cies has led to inefficiencies, duplication of services, and a lack of 6 alignment with the evolving needs of New York's economy. The current 7 system presents challenges for job seekers and employers alike. The 8 legislature further finds that consolidating workforce development 9 programs under a single, strategic office will streamline adminis- 10 tration, improve accessibility, enhance accountability, and better align 11 training with the demands of high-growth industries. It is the intent of 12 the legislature to consolidate all workforce development programs 13 currently administered by various New York state agencies into the 14 office of strategic workforce development that will now be part of the 15 department of labor, thereby modernizing and strengthening New York 16 state's workforce development system. 17 § 3. Section 100-b of the economic development law is REPEALED. 18 § 4. Transfer of functions. Notwithstanding the provisions of any law 19 to the contrary, all of the duties, functions and powers of the office 20 of strategic workforce development are hereby transferred, assigned to, 21 and assumed by the department of labor and the commissioner thereof as 22 may be applicable. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11571-02-5 
 A. 8988 2 1 § 5. Transfer of employees. Notwithstanding any other provision of 2 law, rule, or regulation to the contrary, upon the transfer of functions 3 from the department of economic development to the department of labor 4 pursuant to this act, all employees of the office of strategic workforce 5 development shall be transferred to the department of labor to be 6 retained within the office of strategic workforce development. Employees 7 transferred pursuant to this section shall be transferred without 8 further examination or qualification and shall retain their respective 9 civil service classifications, status, and collective bargaining unit 10 designations and collective bargaining agreements. No individual trans- 11 ferred pursuant to this act shall suffer a reduction in salary. 12 § 6. Transfer of facilities, records, and equipment. The commissioner 13 of economic development shall transfer and deliver to the commissioner 14 of labor all facilities, vehicles, books, papers, records, and equipment 15 of the office of strategic workforce development to the department of 16 labor so as to enable the department of labor to carry out the trans- 17 ferred functions of the office set out in section four of this act. 18 § 7. Completion of unfinished business. Any business or other matter 19 undertaken or commenced by the department of economic development 20 pertaining to or connected with the functions, powers, obligations, and 21 duties transferred and assigned pursuant to this act to the department 22 of labor, and pending on the effective date of this act, may be 23 conducted and completed by the department of labor in the same manner 24 and under the same terms and conditions and with the same effect as if 25 conducted and completed by the department of economic development. 26 § 8. Continuation of rules and regulations. All rules, regulations, 27 acts, orders, determinations, and decisions of the office of strategic 28 workforce development or the department of economic development pertain- 29 ing to the functions and powers transferred and assigned pursuant to 30 this act, in force at the time of such transfer and assumption, shall 31 continue in force and effect as rules, regulations, acts, orders, deter- 32 minations, and decisions of the department of labor until duly modified 33 or abrogated by the commissioner of labor. 34 § 9. Terms occurring in laws, contracts, and other documents. Whenever 35 the office of strategic workforce development is referred to or desig- 36 nated in any law, contract, or document pertaining to the functions, 37 powers, obligations, and duties transferred and assigned pursuant to 38 this act, such reference or designation shall be deemed to refer to the 39 office of strategic workforce development as continued in the department 40 of labor. 41 § 10. Pending actions or proceedings. No action or proceeding pending 42 at the time when this act shall take effect, brought by or against the 43 office of strategic workforce development shall be affected by this act, 44 but the same may be prosecuted or defended in the name of the commis- 45 sioner of labor or the office. If the department of economic development 46 is a party in any such actions and proceedings, the commissioner of 47 labor or the office, upon application to the court, shall be substituted 48 as party. 49 § 11. Transfer of appropriations. All appropriations made to the 50 department of economic development relating to the office of strategic 51 workforce development, to the extent of remaining unexpended balances, 52 shall be transferred by the comptroller to and made available for use by 53 the department of labor, subject to the approval of the director of the 54 budget, for the payment of liabilities previously incurred by the func- 55 tions transferred pursuant to this act. Payments for liabilities for 56 expenses of personal service, maintenance, and operation previously 
 A. 8988 3 1 incurred by the transfer of functions and for liabilities incurred and 2 to be incurred shall be made on vouchers or certificates approved by the 3 commissioner of labor on audit and warrant of the comptroller. 4 § 12. Transfer of assets and liabilities. All assets and liabilities 5 of the office of strategic workforce development as part of the depart- 6 ment of economic development shall be transferred to and assumed by the 7 office as part of the department of labor. 8 § 13. Transfer of workforce development programs. All existing work- 9 force development programs shall be transferred and administered by the 10 office of strategic workforce development within sixty days of the 11 effective date of this section. 12 § 14. The labor law is amended by adding a new article 24-B to read as 13 follows: 14 ARTICLE 24-B 15 OFFICE OF STRATEGIC WORKFORCE DEVELOPMENT 16 Section 855. Definitions. 17 855-a. Responsibilities of the office. 18 855-b. Transition task force. 19 855-c. Annual reporting. 20 § 855. Definitions. For the purposes of this section, the following 21 terms shall have the following meanings: 22 1. "Workforce development program" means any program administered by a 23 New York state agency or public authority that provides training, educa- 24 tion, job placement assistance, or related services to individuals seek- 25 ing employment or to employers seeking to train or upskill employees. 26 2. "Office" means the office of strategic workforce development. 27 § 855-a. Responsibilities of the office. The office of strategic work- 28 force development shall: 29 1. administer all consolidated workforce development programs and 30 associated funding; 31 2. conduct a comprehensive review of existing workforce training 32 programs to identify redundancies, inefficiencies, and opportunities for 33 improvement, and to ensure compliance with the federal workforce inno- 34 vation and opportunity act, pursuant to chapter thirty-two of title 35 twenty-nine of the United States code within six months of the effective 36 date of this section; 37 3. develop and implement a streamlined, unified application system for 38 all workforce development programs to simplify access for applicants; 39 4. implement and maintain an applicant tracking system to monitor 40 applicant progress from submission through program completion and job 41 placement. Such applicant tracking system shall be utilized to collect 42 and analyze data on program participation, demographics, training 43 outcomes, and employment rates; 44 5. establish and utilize standardized performance metrics to evaluate 45 the effectiveness of all workforce development programs. Such metrics 46 shall include, but are not limited to, job placement rates, wage levels, 47 retention rates, and skill attainment; 48 6. launch and maintain a statewide public awareness campaign to 49 educate residents of the state of New York about the consolidation of 50 workforce development programs, the services available, and how to 51 access those services. Such campaign shall utilize various communication 52 channels, including but not limited to online resources, social media, 53 community outreach, and partnerships with employers and community organ- 54 izations; 55 7. prioritize training programs in high-growth industries, including 56 but not limited to technology, healthcare, manufacturing, and green 
 A. 8988 4 1 energy, in alignment with local, regional and statewide economic devel- 2 opment priorities; and 3 8. coordinate closely with regional economic development councils to 4 ensure that workforce training programs meet local labor market needs 5 and support regional economic development strategies. 6 § 855-b. Transition task force. A transition task force shall be 7 established within thirty days of the effective date of this section to 8 oversee the transition of the office to the department of labor pursuant 9 to the chapter of the laws of two thousand twenty-five which added this 10 article. Such task force shall be composed of representatives from the 11 office, the department of labor, the department of education, the 12 department of health, empire state development, and other relevant agen- 13 cies and stakeholders, as necessary. 14 § 855-c. Annual reporting. The department shall submit a report to the 15 governor, the temporary president of the senate, and the speaker of the 16 assembly no later than December thirty-first of each year. In preparing 17 the report, the department shall coordinate with the department of 18 education, the state university of New York, the city university of New 19 York, the office of temporary and disability assistance, the office of 20 children and family services, the urban development corporation and its 21 subsidiaries, and any other relevant agency or entity. Such report shall 22 include, but need not be limited to: aggregate totals for each economic 23 development program administered directly by the office, and aggregate 24 totals for related programs in other agencies wherein such program funds 25 are appropriated within the office, the number of awards made since the 26 last report as well as the number of awards made to date, the number of 27 business partners secured through such awards, the dollar total of such 28 awards, regional distribution of such awards, the identified statewide 29 and regional priority sectors as identified by the urban development 30 corporation with input from the regional economic development councils 31 including a description of each such sector, the number of trainees 32 assisted through such awards, leveraged matching funds associated with 33 awards, program participation rates, industry trends, and any other 34 information deemed necessary by the commissioner. 35 § 15. This act shall take effect immediately.