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AB-765 • 2026

Employment Training Fund: federal loan interest payments.

Employment Training Fund: federal loan interest payments.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Flora
Last action
2026-02-02
Official status
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Employment Training Fund: Interest Payments

This law prohibits using money from the Employment Training Fund to pay interest on federal loans for the Unemployment Fund without special permission and a public report.

What This Bill Does

  • Changes rules about using money from the Employment Training Fund.
  • Requires that any use of fund money to pay federal loan interest must get approval from the Legislature first.
  • Needs a public report explaining why the money is needed for this purpose before it can be used.

Who It Names or Affects

  • The Employment Development Department
  • People who manage the Employment Training Fund

Terms To Know

Employment Training Panel
A part of the Employment Development Department that helps with job training programs.
Unemployment Fund
Money set aside to help people who are out of work.

Limits and Unknowns

  • Does not specify what happens if the Legislature does not approve using fund money for interest payments.
  • The bill summary and text do not provide details on how the public report will be made or reviewed.

Bill History

  1. 2026-02-02 California Legislative Information

    From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. 2026-01-31 California Legislative Information

    Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

  3. 2025-04-03 California Legislative Information

    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.

  4. 2025-03-03 California Legislative Information

    Referred to Com. on L. & E.

  5. 2025-02-19 California Legislative Information

    From printer. May be heard in committee March 21.

  6. 2025-02-18 California Legislative Information

    Read first time. To print.

Official Summary Text

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.

Current Bill Text

Read the full stored bill text 
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