BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 698| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 698 Author: Lieu (D) Amended: 5/31/11 Vote: 21 SENATE LABOR & INDUSTRIAL REL. COMMITTEE : 7-0, 4/13/11 AYES: Lieu, Wyland, DeSaulnier, Leno, Padilla, Runner, Yee SENATE APPROPRIATIONS COMMITTEE : 8-0, 5/26/11 AYES: Kehoe, Walters, Alquist, Lieu, Pavley, Price, Runner, Steinberg NO VOTE RECORDED: Emmerson SUBJECT : Workforce development: high-performance boards SOURCE : California Labor Federation California Manufacturers and Technology Association State Building and Constructions Trades Council DIGEST : This bill, beginning in 2013-2014, as part of the annual budget process, and in consultation with the California Workforce Investment Board (WIB), allocates a portion of the federal Workforce Investment Act's 15 percent discretionary fund for the purpose of providing performance incentives to high-performance local workforce investment boards, requires the Governor to establish the High-Performance Workforce Investment Board Fund, and requires the WIB, in consultation with the Governor to CONTINUED SB 698 Page 2 allocate specified federal discretionary funds to high-performance local workforce investment boards. ANALYSIS : The federal Workforce Investment Act of 1998 (WIA) 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 two years. This bill, beginning in 2013-2014, as part of the annual budget process, and in consultation with the WIB, allocates a portion of the federal WIA's 15 percent discretionary fund for the purpose of providing performance incentives to high-performance local workforce investment boards, requires the Governor to establish the High-Performance Workforce Investment Board Fund, and requires the WIB, in consultation with the Governor to allocate specified federal discretionary funds to high-performance local workforce investment boards. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee: Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Establishment of high Potential annual redirection of funds Federal performance local workforce investment boards SUPPORT : (Verified 5/31/11) SB 698 Page 3 California Labor Federation (co-source) California Manufacturers and Technology Association (co-source) State Building and Constructions Trades Council (co-source) California Conference Board of the Amalgamated Transit Union California Conference of Machinists California Teachers Association California Teamsters Public Affairs Council Engineers and Scientists of California International Longshore and Warehouse Union Professional and Technical Engineers, Local 21 United Food and Commercial Workers Union, Western States Council UNITE HERE! ARGUMENTS IN SUPPORT : According to the author, workers in California are experiencing a recession like never before that has left us with a shattered job market and a record setting unemployment rate. Nonetheless, proponents argue that employers will soon need a skilled workforce to replace the retiring baby boomer generation and meet the demands of new emerging industries. According to the author and proponents, now more than ever, it is crucial that every dollar of federal workforce funds that our state receives is invested in high quality employment services that connect workers to good paying jobs. According to proponents, federal law provides Governors the authority to certify local WIBs every two years, however, this certification must be granted as long as local WIBs meet minimum federal requirements for performance and board composition. Proponents argue that federal performance measures are largely inadequate for ensuring that local WIA dollars provide quality service that lead workers to good jobs. In addition, proponents argue that the performance of California's local WIBs has been inconsistent throughout the state and lacks a unified goal. Proponent believe that this bill raises the bar statewide for performance and quality outcomes for California's federally funded workforce investment system by outlining a high performance standard that the local WIBs can strive for in order to be eligible for additional funding. In SB 698 Page 4 addition, proponents argue that it is essential that there be a direct correlation between the training workers receive and the jobs available. According to proponents, this bill creates an incentive by which local WIBs can strive to meet a high performance standard which meets federal performance criteria, develops stronger local workforce initiatives, and establishes a business service plan that together can create a unified goal to provide quality services that connect workers to good paying jobs. PQ:kc 5/31/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****