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