In this subtitle the following words have the meanings indicated. “Board” means the Governor’s Workforce Development Board. “Division” means the Division of Workforce Development and Adult Learning. “Fund” means the Talent Innovation Fund. “Program” means the Talent Innovation Program.

There is a Talent Innovation Program in the Department. The Division and the Board shall jointly administer the Program. The purpose of the Program is to increase access to high–quality job training by using innovative and sustainable talent financing mechanisms to help meet skill needs in the State’s prominent and emerging industry sectors, including: cybersecurity; health care; biotechnology; manufacturing; and artificial intelligence. The Program may conduct pilots, convene key stakeholders, and conduct research to develop and support new talent financing approaches. The Program shall establish an initial pilot program that focuses on the cybersecurity sector by supporting job training through expansion of regional cyber ranges, which is a recognized method for developing talent and meeting the skill needs of the cybersecurity industry.

There is a Talent Innovation Fund in the Department. The purpose of the Fund is to support the Program. The Secretary shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; grants and donations to the Fund; interest earnings of the Fund; and any money from any other source accepted for the benefit of the Fund. The Department may use the Fund to: provide grants: to entities, including employers, institutions of higher education, tax exempt organizations, public agencies, local workforce development boards, and registered apprenticeship sponsors, and residents of the State; and for costs including support services, subsidized wages, grantees’ administrative costs, and training; provide matching funds to secure donations or grants to the Fund; provide funding for the Program and other talent finance mechanisms approved by the Division and the Board; and pay expenses for administrative, actuarial, legal, and technical services for the Program. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget. Money expended from the Fund for talent innovation fund programs is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for workforce development programs.

The Department may adopt regulations to carry out this subtitle. On or before January 1 each year, beginning in 2025, the Department shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the President of the Senate and the Speaker of the House of Delegates on Program activities and use of the Fund.