BILL NUMBER: SB 698	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 6, 2011

INTRODUCED BY   Senator Lieu

                        FEBRUARY 18, 2011

   An act to amend Section 14200 of the Unemployment Insurance Code,
relating to workforce development.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 698, as amended, Lieu. Workforce development: high-performance
boards.
   The federal Workforce Investment Act of 1998 provides for
workforce investment activities, including activities in which states
may participate. Existing law contains various programs for job
training and employment investment, including work incentive
programs, as specified. Existing law requires the local chief elected
officials in a local workforce development area, to form, pursuant
to specified guidelines, a local workforce investment board to plan
and oversee the workforce investment system, and further requires the
Governor to certify one local board for each local area in the state
once every 2 years.
   This bill would require the Governor to establish, through the
California Workforce Investment Board,  a process by which to
delineate high-performance boards and only these boards would be
eligible to receive state discretionary funds and grants, as
specified. The bill would require high-performance boards, among
other things, to meet specified federal performance criteria, meet
state statutory requirements, and develop and implement local
planning processes and workforce initiatives   standards
for certification of high-performance local workforce investment
boards, in accordance with specified criteria. The bill would also
require the Governor to establish the High-Performance Workforce
Investment Board Fund and would require the California Workforce
Investment Board, in consultation with the Governor to allocate
specified federal discretionary funds to high-performance local
workforce investment boards  .
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 14200 of the Unemployment Insurance Code is
amended to read:
   14200.  (a) The local chief elected officials in a local workforce
development area shall form, pursuant to guidelines established by
the Governor and the board, a local workforce investment board to
plan and oversee the workforce investment system.
   (b) The Governor shall certify one local board for each local area
in the state once every two years, following the requirements of the
Workforce Investment Act of 1998.
   (c) The Governor shall establish, through the California Workforce
Investment Board,  a process by which to delineate high
performance boards. Each high performance boards shall do all of the
following:  
   (1) Meet the federal performance criteria for the local workforce
investment Area.  
   (2) Meet the statutory requirements of the California Workforce
Investment Act.  
   (3) Develop and implement a local plan consistent with the state
strategic plan, demonstrating that it has aligned resource use in the
local workforce investment area with the goals and objectives of the
state plan.  
   (4) Demonstrate that its local planning process involves key
stakeholders, including the major employers and industry groups in
the relevant regional economy and organized labor.  

   (5)  Demonstrate that the local planning process takes into
account the entire workforce training pipeline for the relevant
regional economy, including partners in K-12 education, career
technical education, the community college system, other
postsecondary institutions, and other local workforce investment
areas operating in relevant regional economy.  
   (6) Demonstrate that the local planning process and plan are data
driven, and that policy decisions at the local level are evidence
based. High performance boards shall use labor market data to develop
and implement the local plan, taking care to steer resources into
programs and services that are relevant to the needs of each
workforce investment area's relevant regional labor market and
high-wage industry sectors. Local workforce investment areas shall
demonstrate an evidence-based approach to policymaking by
establishing performance benchmarks and targets to measure progress
toward local goals and objectives.  
   (7) Demonstrate investment in workforce initiatives, and,
specifically, training programs that promote skills development and
career ladders relevant to the needs of each workforce investment
area's regional labor market and high-wage industry sectors.
 
   (8) Establish a youth strategy aligned with the needs of each
workforce investment area's regional labor market and high-wage
industry sectors.  
   (d) Only a board that is delineated as a high-performance board by
the California Workforce Investment Board shall be eligible to
receive federal funds, pursuant to the federal Workforce Investment
Act, as state discretionary funds and grants distributed by the
state.   standards for certification of high-performance
local workforce investment boards. The California Workforce
Investment Board shall, in consultation with representatives from
local workforce investment boards, initiate a stakeholder process to
determine the appropriate measurable metrics and standards for
high-performance certification. These standards shall be implemented
on or before January 1, 2012, and the first certification of
high-performance boards shall occur on or before January 1, 2013.
Certification and recertification of each high-performance board
shall occur thereafter at least once every two years. In order to
meet the standards for certification, a high-performance board shall
do all of the following:  
   (1) Consistently meet or exceed negotiated performance goals for
all of the measures in each of the three federal Workforce Investment
Act customer groups, which consist of adults, dislocated workers,
and youth.  
   (2) Consistently meet the statutory requirements of this division.
 
   (3) Develop and implement local policies and a local strategic
plan that meets all of the following requirements:  
   (A) Is separate and apart from the local plan required under the
federal Workforce Investment Act.  
   (B) Is consistent with the California Workforce Investment Board
strategic plan.  
   (C) Describes the actions that the board shall take to implement
local policies in furtherance of its goals. 
   (D) Serves as a written account of intended future courses of
action aimed at achieving the specific goals of the local and state
board within a specific timeframe.  
   (E) Explains what needs to be done, by whom, and when each action
is required to occur in order to meet those goals.
   (4) Demonstrate that the local planning process involves key
stakeholders, including the major employers and industry groups in
the relevant regional economy and organized labor.
   (5) Demonstrate that the local planning process takes into account
the entire workforce training pipeline for the relevant regional
economy, including partners in K-12 education, career technical
education, the community college system, other postsecondary
institutions, and other local workforce investment areas operating in
relevant regional economy.
   (6) Demonstrate that the local planning process and plan are data
driven, and that policy decisions at the local level are evidence
based. Each high-performance board shall use labor market data to
develop and implement the local plan, taking care to steer resources
into programs and services that are relevant to the needs of each
workforce investment area's relevant regional labor market and
high-wage industry sectors. Local workforce investment areas shall
demonstrate an evidence-based approach to policymaking by
establishing performance benchmarks and targets to measure progress
toward local goals and objectives.
   (7) Demonstrate investment in workforce initiatives, and,
specifically, training programs that promote skills development and
career ladders relevant to the needs of each workforce investment
area's regional labor market and high-wage industry sectors.
   (8) Establish a youth strategy aligned with the needs of each
workforce investment area's regional labor market and high-wage
industry sectors.
   (9) Establish a business service plan that integrates local
business involvement with workforce initiatives. This plan at a
minimum shall include all of the following:
   (A) Efforts to partner with businesses to identify the workforce
training and educational barriers to attract jobs in the relevant
regional economy, existing skill gaps reducing the competitiveness of
local businesses in the relevant regional economies, and potential
emerging industries that would likely contribute to job growth in the
relevant regional economy if investments were made for training and
educational programs.
   (B) An electronic system for both businesses and job seekers to
communicate about job opportunities.
   (C) A subcommittee of the local workforce investment board that
further develops and makes recommendations for the business service
plan for each local workforce investment board in an effort to
increase employer involvement in the activities of the local
workforce investment board. The subcommittee members should be
comprised of business representatives on the local workforce
investment board who represent both the leading industries and
employers in the relevant regional economy and potential emerging
sectors that have significant potential to contribute to job growth
in the relevant regional economy if investments were made for
training and educational programs.
   (d) The Governor shall establish the High-Performance Workforce
Investment Board Fund for the purpose of subdivision (c).
   (e) The California Workforce Investment Board, in consultation
with the Governor, shall annually reserve a portion of the federal
Workforce Investment Act's 15-percent discretionary fund for the
High-Performance Workforce Investment Board Fund to be allocated to
high-performance local workforce investment boards for the purposes
of subdivision (c).
   (f) Only a workforce investment board that is certified as a
high-performance board by the California Workforce Investment Board
shall be eligible to receive any money from the High-Performance
Workforce Investment Board Fund or any portion of the state's
15-percent discretionary fund.
   (g) The California Workforce Investment Board shall establish a
policy for the allocation of High-Performance Workforce Investment
Board Fund Moneys among high-performance boards.
   (h) The California Workforce Investment Board may consider the
utilization of incentive grants pursuant to the federal Workforce
Investment Act (29 U.S.C. Sec. 2864(a)(2)(B)(iii)), for the purposes
of this section.