BILL NUMBER: SB 1591 CHAPTERED 09/30/02 CHAPTER 1142 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2002 APPROVED BY GOVERNOR SEPTEMBER 30, 2002 PASSED THE SENATE AUGUST 30, 2002 PASSED THE ASSEMBLY AUGUST 29, 2002 AMENDED IN ASSEMBLY AUGUST 24, 2002 AMENDED IN ASSEMBLY JUNE 27, 2002 AMENDED IN SENATE MAY 20, 2002 INTRODUCED BY Senator Burton FEBRUARY 20, 2002 An act to amend Section 15051 of the Unemployment Insurance Code, and to amend Section 11324.6 of the Welfare and Institutions Code, relating to unemployment. LEGISLATIVE COUNSEL'S DIGEST SB 1591, Burton. Unemployment: job and preparation training. Existing unemployment insurance law requires the establishment of regulations and procedures to govern job preparation, training services, and placement. This bill would also require that standards be developed to ensure that no participant in these job preparation and training programs fills a job when any other individual is on layoff from the same or any substantially equivalent job, or when the employer has terminated the employment of any regular employee or otherwise reduced its workforce with the intention of filling the resulting vacancy with a program participant, or, with respect to the construction industry, when the employer has not rehired a seasonal employee with a history of regular seasonal employment. Existing law prohibits the creation of any employment or training program position that results in the displacement of current employees, as specified. This bill would, with respect to the construction industry, prohibit an employer from filling a work assignment if that placement is in lieu of rehiring a seasonal employee with a history of regular seasonal employment. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 15051 of the Unemployment Insurance Code is amended to read: 15051. The department shall establish rules, regulations, and procedures necessary to govern the administration of the provisions of this division and to assure that the legislative purposes and intent are carried out. The regulations shall include to the extent permitted by federal law: (a) Standards and criteria for determining eligibility and services priorities pursuant to Section 15011. These shall include, but are not limited to, standards for insuring that a service delivery area plan gives appropriate priority to public assistance recipients. (b) Standards for determining appropriate and allowable services and training activities, and entities providing services and training. These shall include, but are not limited to, insuring that all occupational skill training correspond to area labor market demand, insuring that any training entity providing services has a demonstrated record of past performances in training and placing persons in unsubsidized private sector employment or offers reasonable assurance that services provided will result in these placements, and prohibiting contracting with entities whose officers have been convicted of fraud or misappropriation of funds within the last two years. (c) Standards and criteria to be used in developing plans. These shall include, but are not limited to, appropriate placement goals and requirements for adequate public notice and opportunity for public involvement in the development of service delivery area plans. (d) Standards, criteria, and procedures to be used by the department in evaluating and approving service delivery area plans. (e) Standards for assuring adequate, efficient service delivery area administration including standards for assuring efficient service delivery area management information and financial accounting systems. (f) Standards and criteria for assuring effective coordination and linkages with other agencies that deliver training and employment-related services. (g) Standards and criteria for assuring that no participant shall be employed or that no job opening shall be filled: (1) When any other individual is on layoff from the same or any substantially equivalent job. (2) When the employer has terminated the employment of any regular employee or otherwise reduced its workforce with the intention of filling the vacancy so created by hiring a participant whose wages are subsidized by the Workforce Investment Act of 1998 (Public Law 105-220), the successor to the Job Training Partnership Act. (3) When the employer has not rehired a seasonal employee who has a history of regular seasonal employment with the employer. This paragraph shall only apply to the construction industry. SEC. 2. Section 11324.6 of the Welfare and Institutions Code is amended to read: 11324.6. Any employment or training program position described in subdivisions (a) to (l), inclusive, of Section 11322.6 or Section 11322.9 or under any county pilot project, shall not be created as a result of, or shall not result in, any of the following: (a) Displacement or partial displacement of current employees, including, but not limited to, a reduction in hours of nonovertime and overtime work, wages, or employment benefits. (b) The filling of positions which would otherwise be promotional opportunities for current employees, except when positions are to be filled through an open process in which recipients are provided equal opportunity to compete. (c) The filling of a position, prior to compliance with applicable personnel procedures or provisions of collective bargaining agreements. (d) The filling of established unfilled public agency positions, unless the positions are unfunded in a public agency budget. (e) The filling of a position created by termination, layoff, or reduction in workforce, caused by the employer's intent to fill the position with a subsidized position pursuant to this article. (f) A strike, lockout, or other bona fide labor dispute, or violation of any existing collective bargaining agreement between employees and employers. (g) The filling of a work assignment customarily performed by a worker in a job classification within a recognized collective bargaining unit in that specific worksite, or the filling of a work assignment in any bargaining unit in which funded positions are vacant or in which regular employees are on layoff. (h) The termination of a contract for services, prior to its expiration date, that results in the displacement or partial displacement of workers performing contracted services, caused by the employer's intent to fill the position with a subsidized position pursuant to this article. (i) The filling of a work assignment that results in not rehiring a seasonal employee who has a history of regular seasonal employment with an employer. The provisions of this subdivision shall apply only to the construction industry. (j) The denial to a participant or employee of protections afforded other workers on the worksite by state and federal laws governing workplace health, safety, and representation. (k) Subdivisions (b), (d), and (g) shall not apply to unsubsidized employment placements.