BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 698|
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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
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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)
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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
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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
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