BILL NUMBER: SB 1566	CHAPTERED
	BILL TEXT

	CHAPTER  544
	FILED WITH SECRETARY OF STATE  SEPTEMBER 15, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 13, 2002
	PASSED THE SENATE  AUGUST 27, 2002
	PASSED THE ASSEMBLY  AUGUST 25, 2002
	AMENDED IN ASSEMBLY  AUGUST 23, 2002
	AMENDED IN ASSEMBLY  JUNE 18, 2002
	AMENDED IN SENATE  APRIL 18, 2002
	AMENDED IN SENATE  APRIL 1, 2002

INTRODUCED BY   Senator Polanco
   (Coauthors:  Senators  O'Connell, Scott, Sher, and Vincent)

                        FEBRUARY 20, 2002

   An act to amend Sections 88500, 88510, 88515, 88520, 88525, 88530,
88531, 88540, 88542, 88543, 88550, and 88551 of, and to amend the
heading of Part 52 (commencing with Section 88500) of, the Education
Code, relating to community colleges.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1566, Polanco.  California Community Colleges Economic and
Workforce Development Program.
   Existing law provides for the California Community Colleges
Economic Development Program.  Existing law provides for the awarding
of grants for this program.  Existing law provides that this program
only be implemented during those fiscal years for which funds are
appropriated for these purposes in the annual Budget Act.  Existing
law establishes the California Community Colleges Business Resource
Assistance and Innovation Network Trust Fund in the State Treasury as
a special fund administered by the Board of Governors of the
California Community Colleges, and authorizes the board of governors
to solicit direct contributions for deposit in the fund from various
nonstate public and private sources for the purpose of funding the
program for allocation upon appropriation by the Legislature.
Existing law provides for the repeal of the program on January 1,
2003.
   This bill would state the intent of the Legislature to reauthorize
the program as the California Community Colleges Economic and
Workforce Development Program, and would make related changes to the
program.  The bill would provide that funds be awarded on a
competitive basis.  The bill would provide that this program only be
implemented during those fiscal years for which funds are
appropriated for these purposes in the annual Budget Act. The bill
would require that the special funds in the California Community
Colleges Business Resource Assistance and Innovation Network Trust
Fund be placed in a surplus money investment account to earn interest
for program purposes.  The bill would require that an annual report
about the program required by existing law to be provided on or about
each January 1 by the Chancellor of the California Community
Colleges instead be provided on or about March 1 of each year.  The
bill would extend the date on which the program is to be repealed to
January 1, 2008.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The Association of American Community Colleges, in its study
"2001 Community Colleges in the Knowledge Economy," found all of the
following:
   (1) The sectors of the economy with the most educated workers are
growing the fastest, increasing the demand for credentials and
degrees.  In 1998, 86 percent of prime-age, high-tech workers had
attended a postsecondary institution, up from more than 60 percent in
1973.  Nineteen percent of high-tech workers in 1998 had coursework
but no degree, while 15 percent had associate degrees and more than
one-half had bachelor's degrees.  Health care, business services, and
related fields have similar requirements.
   (2) Ultimately, successful careers are best guaranteed by degree
education beyond high school and long-term access to general and
job-specific learning.  Community colleges are ideally positioned to
continue to evolve with these trends as both academic and vocational
credentials multiply, and as the line between academic and applied
learning blurs.
   (3) The United States Office of Vocational and Adult Education, in
a study, "Turning Skills into Profit:  Economic Benefits of
Workplace Education Programs," found that more than 40 percent of the
U.S. workforce and more than 50 percent of high school graduates do
not have the basic skills needed to do their jobs.
   (b) The California Economic Strategy Panel has concluded that
California's new economy is an economy of regions, driven by various
industry clusters or concentrations of firms with potential for
creating and sustaining regional wealth.  The panel noted that
regions are not defined by political boundaries, but by common
economic interests.
   (c) The California Community Colleges Economic Development
Program, through its various industry support programs, has
demonstrated its capacity as an essential component of the
region-by-region infrastructure that will be required to sustain the
competitiveness of California's new economy.  This capacity and
positive outcomes have been validated in several consecutive annual
program evaluation reports since the program's inception.
   (d) The California Community Colleges Economic Development
Program, first established by statute in 1991, is an extensive
statewide planning process, utilizing a broad range of
representatives from community colleges, businesses, and workers.
The program resulted in the adoption of a statewide strategic plan
for community college participation in California's economic growth.

   (e) Regional workforce development and business resource
assistance plans, including resources for nonprofits, have been
developed and adopted for each designated region of the state.  These
plans provide an assessment of workforce and business development
needs and rapid response strategies for community colleges.  This
comprehensive program represents a well-planned network of services
focused on meeting the needs of business and the incumbent workforce
in each major economic region of California in a timely and flexible
manner.  The program's initiative areas and short-term grants have
benefited new workforce entrants, current workers, faculty, colleges,
and employers.
   (f) Economic development was added by the Legislature to the
statutory mission of the California Community Colleges by Chapter
1057 of the Statutes of 1996.  The incorporation of economic
development into the mission of California Community Colleges has
increased the system's active support of regional economic
development.
  SEC. 2.  In adding this section, it is the intent of the
Legislature to reauthorize the program as the California Community
Colleges Economic and Workforce Development Program, so as to
maximize the program's capacity and mission to provide critical
support for continuous workforce improvement and economic development
in a manner that is adaptive and responsive to the changing needs of
regional economies.
  SEC. 3.  The heading of Part 52 (commencing with Section 88500) of
the Education Code is amended to read:

      PART 52.  CALIFORNIA COMMUNITY COLLEGES ECONOMIC AND WORKFORCE
DEVELOPMENT PROGRAM

  SEC. 4.  Section 88500 of the Education Code is amended to read:
   88500.  The mission of the economic and workforce development
program, subject to approval and amendment by the Board of Governors
of the California Community Colleges, shall include, but not
necessarily be limited to, all of the following:
   (a) To advance California's economic growth and global
competitiveness through high quality education and services focusing
on continuous workforce improvement, technology deployment, and
business development, consistent with the current needs of the state'
s regional economies.
   (b) To maximize and leverage the resources of the California
Community Colleges to fulfill its role as the primary provider in
fulfilling the vocational education and training needs of California
business and industry.
   (c) To work with representatives of business, labor, and
professional trade associations to explore and develop new
alternatives for assisting incumbent workers.  A key objective is to
enable incumbent workers to become more competitive in their region's
labor market, increase competency, and identify career paths to
economic self-sufficiency and lifelong access to good-paying jobs.
This includes, but is not necessarily limited to, career ladder
approaches.
   (d) To collaborate with other state and local agencies, including
partners under the federal Workforce Investment Act of 1998 (Public
Law 105-220), and the Technology, Trade, and Commerce Agency, to
deliver services that meet statewide and regional workforce, business
development, technology transfer, and trade needs that attract,
retain, and expand businesses.
   (e) To develop, in consultation with the Economic Strategy Panel
of the Technology, Trade, and Commerce Agency, local economic
development agencies, the private sector, and labor and community
groups, innovative solutions, as needed, in identified strategic
priority areas, including, but not necessarily limited to, advanced
transportation, biotechnology, small business, applied competitive
technologies, including computer integrated manufacturing, production
and continuous quality improvement, business and workforce
improvement, environmental technologies, health care delivery,
multimedia/entertainment, international trade,  and workplace
literacy.  Strategic priority areas that may be explored if new or
additional funding becomes available may include information
technology, e-commerce and e-trade, and nanotechnology.
   (f) To identify, acquire, and leverage community college and other
vocational training resources when possible, to support local,
regional, and statewide economic development.
   (g) To create effective logistical, technical, and marketing
infrastructure support for economic development activities within the
California Community Colleges.
   (h) To optimize access to community colleges' economic development
services.
   (i) To develop strategic public and private sector partnerships.
   (j) To assist communities experiencing military base downsizing
and closure.
  SEC. 5.  Section 88510 of the Education Code is amended to read:
   88510.  (a) The Board of Governors of the California Community
Colleges and the Chancellor of the California Community Colleges may
award grants to districts for leadership in accomplishing the mission
and goals of the economic and workforce development program, as
described in Section 88500.
   (b) (1) The board of governors shall establish an advisory
committee for the California Community Colleges Economic and
Workforce Development Program and determine the membership, pursuant
to paragraph (2).  The advisory committee shall guide overall program
development, recommend resource development and deployment, and
recommend strategies for implementation and coordination of regional
business resources.  Based on new funding and information developed
by the Chancellor of the California Community Colleges pursuant to
subdivision (d) and forwarded to the advisory committee, the advisory
committee shall make recommendations to the chancellor and the board
of governors on whether new initiatives should be undertaken, and
whether existing initiatives should continue to be funded at their
existing levels, their funding increased or decreased, or their
funding terminated.
   (2) The membership of the advisory committee shall include
representatives from labor; business; appropriate state agencies,
including the Technology, Trade, and Commerce Agency; a faculty
representative; a classified employee representative; and one
community college chief executive officer representative from each of
the 10 regions of the California Community Colleges Economic and
Workforce Development Program.
   (3) The advisory committee shall be organized so that its work is
workforce and business development driven, each leveraging the other
to achieve economic development.
   (c) The decision criteria for allocating funds to colleges shall
take into account all of the following:
   (1) Regional workforce and business development needs.
   (2) Emerging industries, labor market growth sectors, and gaps in
service provided by the community colleges of a region, as identified
by the current regional business resource, assistance, and
innovation network infrastructure with identified strategic priority
areas.
   (3) Performance of the college or district in the administration
and achievement of proposed results of recently awarded economic
development projects.
   (4) For service delivery projects, the cost of organizing,
administering, and delivering proposed services relative to the
number of clients to be served and the expected benefits.  For
capacity building projects, showing how the capacity of the college
is improved in order to deliver services to employers and students.
   (5) Demonstrated benefit to the college and faculty resulting from
the services provided for in subdivisions (a), (b), (c), (h), and
(j) of Section 88531.
   (d) The chancellor's office shall provide systemwide oversight and
evaluation of the economic and workforce development program.
   (e) The chancellor may establish program requirements and
performance standards in the administration of the economic and
workforce development program and distribute funds as appropriate to
implement the program.
   (f) The chancellor may provide technical assistance to community
colleges for the purpose of improving the competitiveness of their
proposals.
   (g) Funds shall be awarded for the program on a competitive basis.

   (h) The chancellor, in awarding short-term competitive funds,
shall take into account colleges in economically distressed urban and
rural areas, and colleges that have not previously been successful
in the competitive bid process.
  SEC. 6.  Section 88515 of the Education Code is amended to read:
   88515.  This part shall be implemented only during those fiscal
years for which funds are appropriated for the purposes of this part
in the annual Budget Act.
  SEC. 7.  Section 88520 of the Education Code is amended to read:
   88520.  The following definitions govern the construction of this
part:
   (a) "Business Resource Assistance and Innovation Network" means
the network of projects and programs that comprise the California
Community Colleges Economic and Workforce Development Program.
   (b) "California Community Colleges Economic and Workforce
Development Program," "economic and workforce development program,"
and "EDNet Program" mean the program.
   (c) "Center" means a comprehensive program of services offered by
one or more community colleges to an economic region of the state in
accordance with criteria established by the board of governors for
designation as an economic and workforce development program center.
Center services shall be designed to respond to the statewide
strategic priorities pursuant to the mission of the community
colleges' economic and workforce development program, and to be
consistent with programmatic priorities, targeted industries,
identified economic development, vocational education, business
development, and continuous workforce training needs of a region as
identified by regional business resource, assistance, and innovation
network infrastructure plans. Centers shall provide a foundation for
the long-term sustained relationship with businesses, labor, and
colleges in the region.  They shall support, develop, and deliver
direct services to businesses, colleges, labor organizations,
employees, and employers.  Direct services shall include curriculum
development, faculty training, assessment, one-on-one counseling,
seminars, workshops, conferences, training, technology transfer, and
educational services.  Centers shall provide developmental and
delivery support and technical assistance to colleges within their
regions as needed to meet the business and workforce education and
training needs in their districts.
   (d) "Industry cluster" means a geographic concentration or
emerging concentration of interdependent industries with direct
service, supplier, and research relationships, or independent
industries that share common resources and sell a significant portion
of their goods or services outside of the region.
   (e) "Industry-driven regional collaborative" means a regional
public, private, or other community organizational structure that
jointly defines priorities, delivers services across programs,
sectors, and in response to, or driven by, industry needs.  The
industry-driven regional collaborative projects meet the needs and
fill gaps in services that respond to regional business, employee,
and labor needs.  These service-delivery structures offer flexibility
to local communities and partners to meet the identified needs in an
economic development region.  Industry-driven regional
collaboratives are broadly defined to allow maximum local autonomy in
developing projects responding to the needs of business, industry,
and labor.  Industry-driven regional collaborative services respond
to the statewide strategic priority pursuant to the mission of the
community colleges economic and workforce development program, and
are consistent with the programmatic priorities, targeted industries,
identified economic development, vocational education, and
continuous workforce training needs of a region as identified by
regional business resource, assistance, and innovation network
infrastructure plans.
   (f) "Initiative" is an identified strategic priority area that is
organized statewide, but is a regionally based effort to develop and
implement innovative solutions designed to facilitate the
development, implementation, and coordination of community college
economic development and related programs and services.  Each
initiative shall be workforce and business development driven by a
statewide committee made up of community college faculty and
administrators and practitioners and managers from business, labor,
and industry.  Centers, industry-driven regional collaboratives, and
other economic and workforce development programs performing services
as a part of the implementation of an initiative shall coordinate
services statewide and within regions of the state as appropriate.
   (g) "Job development incentive training" means programs that
provide incentives to employers to create entry-level positions in
their businesses, or through their suppliers or prime customers, for
welfare recipients and the working poor.
   (h) "Living wage" means family or personal incomes at or above 250
percent of the poverty level, based on United States Census Bureau
data for the region.  This definition may be amended upon review of
current data and recommendation of the California Community Colleges
Economic and Workforce Development Program Advisory Committee and
approval of the board of governors.
   (i) "Matching resources" means any combination of public or
private resources, either cash or in-kind, derived from sources other
than the economic and workforce development program funds
appropriated by the annual Budget Act, that are determined to be
necessary for the success of the project to which they are applied.
The criteria for in-kind resources shall be developed by the board of
governors, with advice from the chancellor and the California
Community Colleges Economic and Workforce Development Program
Advisory Committee, and shall be consistent with generally accepted
accounting practices for state and federal matching requirements.
The ratio of matching resources to economic and workforce development
program funding shall be determined by the board of governors.
   (j) "Performance improvement training" means training delivered by
a community college that includes all of the following:
   (1) An initial needs assessment process that identifies both
training and nontraining issues that need to be addressed to improve
individual and organizational performance.
   (2) Consultation with employers to develop action plans that
address business or nonprofit performance improvements.
   (3) Training programs that link individual performance
requirements with quantifiable business measures, resulting in
demonstrable productivity gains, and, as appropriate, job retention,
job creation, or improvement in wages or living wages.
   (k) "Region" means a geographic area of the state defined by
economic and labor market factors containing at least one industry
cluster and the cities, counties, or community college districts, or
all of them, in the industry cluster's geographic area.  For the
purposes of this chapter, "California Community College economic
development regions" shall be designated by the board of governors
based on factors, including, but not necessarily limited to, all of
the following:
   (1) Regional economic development and training needs of business
and industry.
   (2) Regional collaboration, as appropriate, among community
colleges and districts, and existing economic development, continuous
workforce improvement, technology deployment, and business
development.
   (3) Other state economic development definitions of regions.
  SEC. 8.  Section 88525 of the Education Code is amended to read:
   88525.  The California Community Colleges Business Resource
Assistance and Innovation Network Trust Fund is hereby established in
the State Treasury as a special fund administered by the board of
governors.  The board of governors may solicit direct contributions
for deposit in the fund from various nonstate public and private
sources for the purpose of funding the California Community Colleges
Economic and Workforce Development Program.  Special funds in the
trust shall be placed in a surplus money investment account to earn
interest.  Interest generated by funds deposited in this trust fund
shall be reinvested in the fund, and may only be used to fund
eligible projects and activities of the economic and workforce
development program and related board of governors initiatives.  Upon
appropriation by the Legislature, the fund may be expended for
purposes of administering grants and contracts for providing
services, through the program, to public and private entities.
  SEC. 9.  Section 88530 of the Education Code is amended to read:
   88530.  (a) It is the intent of the Legislature that the programs
and services provided through the EDNet Program shall be flexible and
responsive to the needs identified through the statewide and
regional planning process.  Services shall be demand-driven, and
delivery structures shall be agile, performance-oriented,
cost-effective, and contribute to regional economic growth and
competitiveness.  The use of economic and workforce development
program centers, local economic development corporations,
industry-driven regional collaboratives, and business networks,
employers, and service providers shall provide a stable and flexible
response mechanism for the identification of training priorities and
to focus resources on short-term intensive projects for high growth
sectors.  These networks shall have the flexibility to meet the
demand for new and emerging growth sectors and be formed, modified,
eliminated, and reformed for short- or long-term responses customized
to the duration of the need.  Programs and projects developed and
implemented at centers and industry-driven regional collaborative
projects may act as catalysts for future vocational education
programs in the system.
   (b) It is the intent of the Legislature that centers shall be
established as the long-term structure of the network's service
delivery system.  Centers shall provide regional sites to efficiently
respond to employer and worker needs, and shall deliver services for
the strategic initiative areas pursuant to the mission of the
community colleges economic and workforce development program.
   (c) It is the intent of the Legislature that industry-driven
regional collaboratives perform services as participants of regional
networks.  Grants by industry-driven regional collaboratives shall
provide flexibility for local projects to assess and define their
individual project needs.  New local programs and equipment shall be
key components of these grants.  Funding shall not be limited per
project, but shall be based on the merit and reasonable cost for the
anticipated outcomes and performance of the project.  Funding for
industry-driven regional collaboratives shall be limited to two
consecutive fiscal years.
  SEC. 10.  Section 88531 of the Education Code is amended to read:
   88531.  Economic and workforce development program centers and
California Community College participation in industry-driven
regional collaboratives may provide any or all of the following
services and perform the following functions as participants of
networks, including, but not necessarily limited to, all of the
following:
   (a) Curriculum development, design, and modification that
contribute to workforce skill development common to industry clusters
within a region.
   (b) Development of instructional packages focusing on the
technical skill specific to emerging occupations in targeted
industries and growing industry clusters.
   (c) Faculty mentorships, faculty and staff development, in-service
training, and worksite experience supporting the new curriculum and
instructional modes responding to identified regional needs.
   (d) Institutional support, professional development, and
transformational activities focused on removing systematic barriers
to the development of new methods, transition to a flexible and more
responsive administration of programs, and the timely and
cost-effective delivery of services.
   (e) The deployment of new methodologies, modes, and technologies
that enhance performance and outcomes and improve cost effectiveness
of service delivery or create new college programs.
   (f) One-on-one counseling, seminars, workshops, and conferences
that contribute to the achievement of the success of existing
business and foster the growth of new business and jobs in emerging
industry clusters.
   (g) The delivery of performance-improvement training, which shall
be provided on a matching basis to employers to benefit workforce
participants.  This will promote continuous workforce improvement in
identified strategic priority areas, identified industry clusters, or
areas targeted in the regional business resource assistance and
innovation network plans.
   (h) Credit and noncredit programs and courses that contribute to
workforce skill development common to industry clusters within a
region or that focus on the technical skills specific to emerging
occupations in targeted industries and growing industry clusters, as
identified by regional needs assessment.
   (i) Subsidized student internships on a cash or in-kind matching
basis for program participants in occupational categories determined
to be consistent with the skill clusters necessary to be successful
in the identified strategic priority areas, identified industry
clusters, or areas targeted by network infrastructure plans.
   (j) Acquisition of equipment to support the eligible activities
and the limited renovation of facilities to accommodate the delivery
of eligible services.
  SEC. 11.  Section 88540 of the Education Code is amended to read:
   88540.  (a) (1) Programs and activities of the Job Development
Incentive Training Program shall include a strong partnership with
state and local economic development entities, workforce development
agencies, community-based organizations, and the private sector.  It
is the intent of the Legislature that this program provide training
on a no-cost or low-cost basis to participating employers who create
employment opportunities at an acceptable wage level for the
attainment of self-sufficiency by both of the following groups:
   (A) Recipients of aid under Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code.

   (B) Clients determined to be eligible because they are employed at
a wage too low to attain self-sufficiency.
   (2) Guidelines for the determination of eligibility under this
subdivision shall be developed by the chancellor's office in
consultation with the appropriate agencies responsible for collecting
appropriate data.  A structured career ladder methodology may be
implemented in this program area.
   (3) Funds received from other eligible programs, including, but
not necessarily limited to, programs under the federal Workforce
Investment Act of 1998 (Public Law 105-220) and other applicable
programs selected by the chancellor, or a combination of programs,
may be used to provide funds to match job development incentive
training funds.
   (b) It is the intent of the Legislature that the expenditure of
funds under this section should lead measurably to the upgrading of
highly skilled and technical workers, upgrade opportunities for those
who are employed at a wage too low to attain self-sufficiency, and
the creation of jobs for new entrants into the workforce.
  SEC. 12.  Section 88542 of the Education Code is amended to read:
   88542.  Matching fund requirements shall be waived for employers
who receive training services through the Job Development Incentive
Training Program and who accomplish either of the following:
   (a) Create employment opportunities for recipients of aid under
Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of
the Welfare and Institutions Code at an acceptable wage level to
attain self-sufficiency.
           (b) Create opportunities for individuals working at a low
wage to upgrade to a wage adequate to attain self-sufficiency.
  SEC. 13.  Section 88543 of the Education Code is amended to read:
   88543.  Each community college that participates in the Job
Development Incentive Training Program shall inventory its local or
regional business community, including nonprofit organizations, and
identify industry-driven needs and employment opportunities with a
goal of attaining self-sufficiency through workforce reentry,
continuous employee training, and skills upgrades.
  SEC. 14.  Section 88550 of the Education Code is amended to read:
   88550.  (a) The chancellor shall implement accountability measures
that provide the Governor, Legislature, and general public with
accountability measurements of the program that quantify both
employer and student outcomes and seek to specifically isolate the
impact of the EDNet Program on participants.
   (b) The chancellor shall submit a report to the Governor and
Legislature on or about March 1 of each year.  Sufficient information
shall be provided in the report to ensure the understanding of the
magnitude of expenditures, by type of expenditure, including those
specified in Section 88525, disaggregated by industry cluster and
region.  The report shall also include the marketing efforts
conducted, the type of services provided to colleges and employers,
and the number of businesses, students, and employees served, and
identify the benchmarks and indicators used to demonstrate the
results achieved.
  SEC. 15.  Section 88551 of the Education Code is amended to read:
   88551.  This part shall remain in effect only until January 1,
2008, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2008, deletes or extends
that date.