BEFORE THE DEPARTMENT OF LABOR AND INDUSTRY

                                              STATE OF MONTANA

 

In the matter of the amendment of ARM 24.22.327, 24.22.331, and 24.22.335 pertaining to incumbent worker training

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NOTICE OF AMENDMENT

 

TO: All Concerned Persons

 

            1. On March 24, 2023, the Department of Labor and Industry (department) published MAR Notice No. 24-22-400 regarding the public hearing on the proposed changes to the above-stated rules, at page 223 of the 2023 Montana Administrative Register, Issue No. 6.

 

            2. On April 13, 2023, a public hearing was held on the proposed changes to the above-stated rules via the videoconference and telephonic platform. Comments were received by the deadline.

 

            3. The agency has thoroughly considered the comments received. A summary of the comments and the agency responses are as follows:

 

COMMENT 1: A commenter objected to the provision of ARM 24.22.335(1)(a) which does not begin employer size breakdown or permit applications from employers larger than 50 until October 1, 2023.

 

RESPONSE 1: House Bill 41 (HB 41) specifies employer size distribution for incumbent worker training (IWT) awards.  It further permits applications from employers larger than 50.  The bill did not specify an effective date.  As a result, the effective date is October 1.  1-2-201, MCA.  As a result, the department is unable to adopt rules pertaining to the provisions of HB 41 which take effect prior to October 1.

 

COMMENT 2: A commenter objected to ARM 24.22.335(1)(a) to the extent it specifies funding assigned to the IWT program will not carry forward across fiscal years.  The commenter believes this to be inconsistent with HB 41 at Section 3(2)(b).

 

RESPONSE 2: The department disagrees with the comment.  The cited subsection requires money to be carried forward across quarters to be distributed among other-sized employers.  The bill does not require carry forward of funding across fiscal years.  Moreover, there is no statutory appropriation for the IWT program.  The department allocates money to the program based upon available funding.  Because there is not an appropriation, the department is not permitted to retain money for the program across fiscal years.  In a subsequent fiscal year, the department will assign new money to the program so that grants may be awarded.  Moreover, the department does not expect to have allocated funding left at the end of a fiscal year.  For example, in fiscal year 2023, all money assigned had been awarded by April of 2023.

 

COMMENT 3: A commenter noted that he did not object to the requirement that training be live, as required by ARM 24.22.327(6).

 

RESPONSE 3: The comment is noted.

 

            4. The department additionally received comment from the bill sponsor.  First, the sponsor objected on the same basis as Comment 1.  The department's response is the same.

            Second, the sponsor expressed concern regarding the requirement that training include "direct, live access to the trainer," and that multiple applications from a single employer might be deferred.  No substantive changes were proposed with regard to these subjects in the rulemaking.  As such, though noted, the comments are outside the scope of the rulemaking.  They may be considered for future rulemaking.  In short, these rules have been in place for multiple years and ensure that training meets the purpose of the program.  Additionally, permitting deferral of multiple applications from a single employer ensures that one employer is not able to receive the totality of available funding to the program.  This is in keeping with the purpose of the IWT grant as set forth at 53-2-1215, MCA.

            Third, the sponsor expressed concern that ARM 24.22.335(7) limited grant availability to workers working more than 35 hours per week.  This is outside the scope of the present rulemaking.  Section (7) in whole simply notes a distinction in the amount of available grant funding for those working 20 to 34 hours and those working 35 or more hours.

            Finally, it must be noted that none of the sponsor's concerns were addressed in HB 41.  As such, the rule changes proposed by the sponsor do not follow from the bill.  The department will consider the changes for its rulemaking for IWT for fiscal year 2025.

 

            5. The agency has amended ARM 24.22.327, 24.22.331, and 24.22.335 as proposed, effective July 1, 2023.

/s/ QUINLAN L. O'CONNOR Quinlan L. O'Connor Rule Reviewer	/s/ LAURIE ESAU Laurie Esau, Commissioner DEPARTMENT OF LABOR AND INDUSTRY

 

 

            Certified to the Secretary of State June 13, 2023.