BILL ANALYSIS AB 2696 Page 1 Date of Hearing: April 21, 2010 ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT Sandre Swanson, Chair AB 2696 (Bass) - As Introduced: February 19, 2010 SUBJECT : Green Collar Jobs Council. SUMMARY : Sets forth additional specified duties of the Green Collar Jobs Council (GCJC). Specifically, this bill : 1)Authorizes the California Workforce Investment Board (CWIB) to accept any revenues, moneys, grants, goods, or services from the federal and state public entities, local philanthropic organizations, and other sources, to be used for purposes relating to the administration and implementation of a strategic initiative the GCJC is required to develop. 2)Establishes a Green Collar Jobs Account (Account) in the State Treasury and specifies that: a) All revenue received under these provisions be deposited into the account; and, b) The revenue shall only be expended for the purposes related to administration and implementation of the strategic initiative and for awarding workforce training grants. 3)Requires the GCJC, in addition to its current duties, do the following: a) Assist in identifying and linking green collar jobs opportunities in local workforce investment areas (LWIAs), encouraging regional collaboration to meet regional demand; and, b) Collaborate with community colleges, and other educational institutions, registered apprenticeship programs, business and labor organizations, and community-based and philanthropic organizations to align workforce development services with strategies for regional economic growth. 4)Requires the GCJC to confer with the appropriate state and AB 2696 Page 2 local agencies to coordinate the award of grant funds and green workforce training funds received by the state under the federal American Recovery and Reinvestment Act of 2009. 5)Requires, by April 1, 2011 and annually thereafter, the CWIB to report to the Legislature on the status of GCJC activities, grants awarded, and its development and implementation of green workforce strategic initiative. FISCAL EFFECT : Unknown COMMENTS : This bill is a follow-up to AB 3018 (Nunez) from the 2008 session, which established the Green Collar Jobs Council (GCJC) within the CWIB. AB 3018 specified that the GCJC is comprised of the appropriate representatives from the CWIB's existing membership, including the K-12 representative, the California Community Colleges representative, the Business, Transportation and Housing Agency representative, the Employment Development Department (EDD) representative, and other appropriate members. AB 3018 also required the GCJC to develop a strategic initiative to identify and develop the framework, funding, strategies, programs, policies, partnerships, and opportunities necessary to address the growing need for a highly skilled and well-trained workforce to meet the needs of California's emerging green economy. The GCJC convened for the first time on February 11th, 2009 (and has met regularly thereafter), and adopted the following vision statement: "Over the next 18 to 24 months the Council will identify and facilitate the development of the framework, funding, strategies, programs policies, partnerships and opportunities necessary to address the need for a highly skilled and well-trained workforce in support of California's green businesses and economy. Through its work, the Council will serve as a catalyst for the creation of sustainable regional sector strategies that will be managed through regional partnerships." Following the enactment of the American Recovery and Reinvestment Act of 2009 (ARRA), the GCJC has been focusing some AB 2696 Page 3 of its attention on opportunities for green collar jobs made possible as a result of ARRA. According to the author's office statement, "With California's unemployment rate at an all time high of 10.5%, California needs to develop short and long term goals to put Californians back to work in jobs that provide a wage. We have an opportunity to make an investment in our existing workforce training infrastructure. Under the federal American Recovery and Reinvestment Act of 2009, California is receiving over $400 million in job training funds to be administered through our existing workforce infrastructure. No time is greater than now to form partnerships with state agencies, community colleges, community based organizations, and labor apprenticeship programs to train a highly skilled and well trained workforce to meet the needs of California's growing green economy. According to a recent report by Next 10, titled California Innovation Index 2009 , since 2005 the green collar job has continued to grow by 10% and business establishments by 2%, while job growth in other sectors has been only 1%. With the infusion of federal economic stimulus funds California stands to create thousands of jobs in energy efficiency building retrofits, green building, solar and green technology. The time is now to develop much needed workforce training partnerships to better serve California." PREVIOUS AND RELATED LEGISLATION: AB 1394 (Bass) of 2009 was substantially similar to this bill. AB 1394 was vetoed by the Governor. In his veto message, the governor stated that AB 1394 was unnecessary because the EDD currently administers grants and WIA funding and that GCJC already has the power to consult with the Department of Industrial Relations. REGISTERED SUPPORT / OPPOSITION : Support None on file. Opposition None on file. AB 2696 Page 4 Analysis Prepared by : Shannon McKinley / L. & E. / (916) 319-2091