BILL NUMBER: SB 698 CHAPTERED
BILL TEXT
CHAPTER 497
FILED WITH SECRETARY OF STATE OCTOBER 6, 2011
APPROVED BY GOVERNOR OCTOBER 5, 2011
PASSED THE SENATE JUNE 2, 2011
PASSED THE ASSEMBLY SEPTEMBER 7, 2011
AMENDED IN SENATE MAY 31, 2011
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, 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, standards for certification of
high-performance local workforce investment boards, in accordance
with specified criteria. The bill would also require the Governor and
the Legislature, in consultation with the California Workforce
Investment Board, to reserve specified federal discretionary funds
for high-performance local workforce investment boards. This bill
would also require the California Workforce Investment Board to
establish a policy for the allocation of those funds to those boards.
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
federal Workforce Investment Act of 1998.
(c) The Governor shall establish, through the California Workforce
Investment Board, 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, 2013, and the first certification of
high-performance boards shall occur on or before July 1, 2013.
Certification and recertification of each high-performance local
workforce investment board shall occur thereafter at least once every
two years. In order to meet the standards for certification, a
high-performance local workforce investment 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 of 1998 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 of 1998.
(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 local workforce investment 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) Beginning in the 2013-14 fiscal year, the Governor and the
Legislature, as part of the annual budget process, in consultation
with the California Workforce Investment Board, shall annually
reserve a portion of the 15-percent discretionary fund made available
pursuant to the federal Workforce Investment Act of 1998 for the
purpose of providing performance incentives to high-performance local
workforce investment boards. The remaining discretionary funds shall
continue to be available for other discretionary purposes as
provided for in the federal Workforce Investment Act of 1998.
(e) Only a workforce investment board that is certified as a
high-performance local workforce investment board by the California
Workforce Investment Board shall be eligible to receive any incentive
money reserved for high-performance local workforce investment
boards, as described in subdivision (d). A board that is not
certified as a high-performance local workforce investment board
shall not receive any portion of the money reserved for
high-performance local workforce investment boards, as described in
subdivision (d) or any portion of the state's 15-percent
discretionary fund.
(f) The California Workforce Investment Board shall establish a
policy for the allocation of incentive moneys to high-performance
local workforce investment boards.
(g) The California Workforce Investment Board may consider the
utilization of incentive grants pursuant to the federal Workforce
Investment Act of 1998 (29 U.S.C. Sec. 2864(a)(2)(B)(iii)), for the
purposes of this section.
(h) There shall not be a requirement to set aside federal
Workforce Investment Act of 1998 funds for the purposes of
subdivisions (d), (e), (f), or (g) in years when the federal
government significantly reduces the share of federal Workforce
Investment Act of 1998 funds appropriated to the state for statewide
discretionary purposes below the federal statutory amount of 15
percent.