BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1291
                                                                  Page  1

          Date of Hearing:   June 20, 2012

                           ASSEMBLY COMMITTEE ON INSURANCE
                                 Jose Solorio, Chair
                     SB 1291 (Evans) - As Amended:  May 25, 2012

           SENATE VOTE :   25-14
           
          SUBJECT  :   Unemployment Insurance: California Training Benefits 
          Program

           SUMMARY  :   Permits teachers participating in credential 
          preparation programs in math, science, and special education to 
          automatically qualify for the California Training Benefits 
          Program (CTB).  Specifically,  this bill  :   

          1)Permits permanent or probationary public school teachers who 
            have been laid off and participate in a training program to 
            obtain certification in math, science or special education to 
            receive additional unemployment insurance benefits through the 
            CTB.

          2)Delays implementation of this provision until January 1, 2014.

          3)Extends the sunset date for the CTB until January 1, 2019.

           EXISTING LAW  : 

          1)Provides that in order to begin or continue to receive 
            unemployment benefits, an individual must be:

               a)     Actively looking for work, 

               b)     Available to work, and 

               c)     Ready to accept suitable work. 

          2)Establishes CTB which allows eligible unemployed individuals 
            to receive benefits while attending qualifying training 
            programs. 

          3)Requires that qualifying training programs must be authorized 
            by specified state or federal program sponsors. 










                                                                  SB 1291
                                                                  Page  2

          4)Provides for the creation and maintenance of the California 
            Commission on Teacher Credentialing, an independent agency 
            comprised of 15 voting members, 14 of whom are appointed by 
            the governor.  This Commission is comprised of the 
            Superintendent of Public Instruction or a designee, college, 
            high school, and elementary school teachers, and 
            representatives of the public.



          5)Endows this Commission with the power to develop and implement 
            professional standards, assessments, and examinations for 
            entry and advancement in the education profession in the form 
            of teaching credentials.

           FISCAL EFFECT  :   Minor to major annual cost to the School 
          Employees Fund (SEF) depending on claimant participation in the 
          program.  Cost per participant is estimated at $11,700.

           COMMENTS  :   

           1)Purpose  .  According to the author, this bill will help retain 
            thousands of laid off teachers by authorizing unemployment 
            insurance benefits for those who seek certification training 
            and intensive test preparation in the high demand areas of 
            math, science, and special education. This bill will create 
            job opportunities by expanding available training for teachers 
            who wish to stay in the teaching field. In the future, this 
            bill will decrease unemployment benefits and result in cost 
            avoidance in years to come by permanently employing these 
            teachers.

           2)California Training Benefits Program  .  Federal law requires 
            states to approve individuals for any week of UI benefits in 
            which the individuals are in "state-approved" school or 
            training and not to disqualify them for failure to be 
            available for work, actively seeking work, and refusing 
            suitable work.

            In California, state-approved training means training offered 
            under the Federal Workforce Investment Act, the California 
            Employment Training Panel, the Federal Trade Act of 1974, or 
            the California Work Opportunity and Responsibility to Kids 
            Program; the individual is a participant in training with a 
            provider that is certified and on the state's Eligible 








                                                                  SB 1291
                                                                  Page  3

            Training Provider List; or the individual is a journey level 
            union member participating in specified training.  Those would 
            all be considered "automatically" approved training programs, 
            as long as claimants meet all other eligibility criteria.  
            Claimants who do not enter into training under the above 
            circumstances may be eligible for other approved training if 
            they meet other requirements.  

            Claimants determined eligible for the CTB program are exempt 
            from the statutory requirements of being available for work 
            and actively seeking work while attending state-approved 
            training.  Individuals participating in CTB who are otherwise 
            eligible for UI benefits may receive their regular UI benefits 
            during the period of CTB approved training.  There is also a 
            Training Extension claim which provides additional benefits up 
            to a combined maximum of 52 weeks (26 weeks for the regular UI 
            claim plus 26 weeks for the Training Extension claim).  

           3)Teacher Workforce  .  California has the largest teacher 
            workforce in the country, with over 305,000 teachers but only 
            40,000 of these are specialized in mathematics or science.  
            California has faced similar challenges in maintaining an 
            adequate supply of special education teachers.  In order to 
            become a science, mathematics, or special education teacher, 
            an employee must demonstrate competency through exams and 
            other assessment methods specific to the desired teaching 
            specialty in addition to a general assessment on basic 
            educational skills.  As a result, the population of teachers 
            who choose to specialize in a particular subject is scarce 
            relative to those who are only generally credentialed.

            Fiscal conditions have required school districts across the 
            state to dismiss 32,000 teachers since 2007-2008 which has 
            exacerbated the scarcity of specialized teachers.  According 
            to a 2007 study from The Center for the Future of Teaching and 
            Learning, California will face a deficit of 33,000 science and 
            math teachers over the next ten years due to attrition and 
            retirement.  The same study also found that California's 
            current rate of teacher production, particularly in 
            specialized areas, is insufficient to bridge the gap.

           4)Cost  .  Public school districts and community colleges do not 
            pay unemployment insurance taxes.  Instead they contribute to 
            the SEF.  All 72 community college districts and 1,298 county 
            offices of education, public school districts, and charter 








                                                                  SB 1291
                                                                  Page  4

            schools participate in the SEF.  Money deposited in the SEF is 
            used to reimburse the UI Trust Fund for the cost of UI 
            benefits paid to former employees.  The SEF has a projected 
            fund balance of over $300 million as of June 30, 2012.  The 
            costs of paying the additional benefits from this bill will be 
            borne by the SEF.   
             
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Labor Federation
          California Teachers Association
          California Workforce Association (CWA)
          Commission on Teacher Credentialing (Commission)
          Numerous Individuals
           
            Opposition 
           
          None received.

           Analysis Prepared by  :    Paul Riches / INS. / (916) 319-2086