California Legislature—2013–14 Regular Session

Assembly Bill No. 285

Introduced by Assembly Member Brown

February 11, 2013

An act to amend Section 18000 of the Business and Professions Code, and to amend Section 14013 of, and to add Sections 14001 and 14013.2 to, the Unemployment Insurance Code, relating to microenterprises.

LEGISLATIVE COUNSEL’S DIGEST

AB 285, as introduced, Brown. Microenterprises: economic development.

(1) Existing law encourages local governments as well as California communities and the public agencies that serve them to promote development of a microenterprise, as defined.

This bill would revise the definition of a microenterprise.

(2) The federal Workforce Investment Act of 1998 provides for workforce investment activities, including activities in which states may participate. Under existing law, the California Workforce Investment Board is responsible for assisting the Governor in the development, oversight, and continuous improvement of California’s workforce investment system. Existing law requires the board, among other things, to assist the Governor with promoting the development of a well-educated and highly skilled workforce and developing the State Workforce Investment Plan.

This bill would express findings and declarations of the Legislature with respect to the self-employment workforce in the state, and the importance of all Californians having the opportunity to receive the training for entrepreneurial and self-employment provided for under the federal act.

This bill would additionally require the board to assist the Governor by developing specified guidelines for certain high-wage industry sectors and making recommendations on how to target resources to specified high-wage industry sectors, and by recommending policy and providing technical assistance on entrepreneurial training opportunities that could be made available through local workforce investment board programs as authorized under the federal act.

(3) The bill would also require the board, by January 1, 2015, to develop and distribute guidelines, or provide other assistance to, local workforce investment boards to help them implement entrepreneurial and self-employment training programs.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 18000 of the Business and Professions
Code is amended to read:

18000.  

(a)  begin delete (1) end delete begin delete   end delete For purposes of this part, “microenterprise”
means a sole proprietorship, partnership, begin insert limited liability company, end insert
or corporation that meets all of the following requirements:

begin delete

(A)

end delete

begin insert (1) end insert  Has begin delete fewer than end delete five begin insert or fewer end insert employees, including the begin delete owner. end delete
begin insert owner, who may be employed end insert

begin delete (B) end delete begin delete   end delete begin delete Is end delete part time or full time.

begin delete

(C)

end delete

begin insert (2) end insert  Generally lacks begin insert sufficient end insert access to conventional loans,
equity, or other banking services.

begin delete

(2) Microenterprises are distinct from small businesses or
microbusinesses and include, but are not limited to, businesses
that provide child development services, businesses that provide
landscaping services, businesses that provide building maintenance,
businesses that provide personal and business services, businesses
that provide specialty food products, and home-based businesses.

end delete

(b) For purposes of this part, “microenterprise development
provider” means a nonprofit begin insert organization end insert or public agency that
provides self-employment training, technical assistance, and access
to microloans to begin delete individuals end delete begin insert an individual end insert seeking to become
self-employed or to begin insert a microbusiness seeking end insert expand begin delete their end delete begin insert its end insert
current business.

SEC. 2.  

Section 14001 is added to the Unemployment Insurance
Code, to read:

14001.  

The Legislature finds and declares the following:

(a) Nearly one-third of California’s workforce is comprised of
independent and self-employed workers, including entrepreneurs,
contractors, independent consultants, and home-based businesses.

(b) The self-employed workforce in California has grown by
over 100 percent in the last 15 years.

(c) The federal Workforce Investment Act of 1998 (29 U.S.C.
Sec. 2801 et seq.) provides that states should offer training and
workforce development services through state and local workforce
investment boards. In fulfilling these duties, it is important that
all Californians have the opportunity to receive entrepreneurial
and self-employment training, as well as other training that can
help them successfully work for others.

(d) It is the policy of the State of California, to the extent
feasible, to provide individuals with the opportunity to learn skills
needed to pursue self-employment opportunities in order to provide
a stable income for them and their families.

SEC. 3.  

Section 14013 of the Unemployment Insurance Code
is amended to read:

14013.  

The board shall assist the Governor in the following:

(a) Promoting the development of a well-educated and highly
skilled workforce.

(b) Developing the State Workforce Investment Plan.

(c) Developing guidelines for the continuous improvement and
operation of the workforce investment system, including:

(1) Developing policies to guide the one-stop system.

(2) Providing technical assistance for the continuous
improvement of the one-stop system.

(3) Recommending state investments in the one-stop system.

begin delete

(4) Targeting resources to high-wage industry sectors that are
either high-growth sectors or critical to California’s economy, or
both.

end delete begin insert

(4) Providing guidance to ensure services reflect the needs of
high-wage industry sectors.

end insert

(d) Developing and continuously improving the statewide
workforce investment system as delivered via the one-stop delivery
system, including:

(1) Developing linkages in order to begin delete assure end delete begin insert ensure end insert coordination
and nonduplication among workforce programs and activities.

(2) Reviewing local workforce investment plans.

begin delete

(3) Providing guidance to ensure services reflect the needs of
high-wage industry sectors.

end delete begin insert

(3) Making recommendations on how to target resources to
high-wage industry sectors that are either high-growth sectors or
critical to California’s economy, or both.

end insert

(e) Commenting, at least once annually, on the measures taken
pursuant to the Carl D. Perkins Vocational and Applied Technology
Education Act Amendments of 1990 begin delete ( Public end delete begin insert (Public end insert Law 101-392;
20 U.S.C. Sec. 2301 et seq.).

(f) Designating local workforce investment areas within the
state based on information derived from all of the following:

(1) Consultations with the begin delete Governor end delete begin insert board end insert .

(2) Consultations with the chief local elected officials.

(3) Consideration of comments received through the public
comment process, as described in Section 112(b)(9) of the federal
Workforce Investment Act of 1998 begin insert (29 U.S.C. Sec. 2822(b)(9)) end insert .

(g) Developing and modifying allocation formulas, as necessary,
for the distribution of funds for adult employment and training
activities, for youth activities to local workforce investment areas,
and dislocated worker employment and training activities, as
permitted by federal law.

(h) Coordinating the development and continuous improvement
of comprehensive state performance measures, including state
adjusted levels of performance, to assess the effectiveness of the
workforce investment activities in the state.

(i) Preparing the annual report to the United States Secretary of
Labor.

(j) Recommending policy for the development of the statewide
employment statistics system, including workforce and economic
data, as described in Section 15 of Title 29 of the United States
Code, and using, to the fullest extent possible, the Employment
Development Department’s existing labor market information
systems.

(k) Recommending strategies to the Governor for strategic
training investments of the Governor’s 15-percent discretionary
funds.

(l) Developing and recommending waivers, in conjunction with
local workforce investment boards, to the Governor as provided
for in the federal Workforce Investment Act of 1998.

(m) Recommending policy to the Governor for the use of the
25-percent rapid response funds, as authorized under the federal
Workforce Investment Act of 1998.

(n) Developing an application to the United States Department
of Labor for an incentive grant under Section 9273 of Title 20 of
the United States Code.

begin insert

(o) Recommending policy and providing technical assistance
on entrepreneurial training opportunities that could be made
available through programs of local workforce investment boards
as authorized under the federal Workforce Investment Act of 1998
(29 U.S.C. Sec. 2801 et seq.).

end insert

SEC. 4.  

Section 14013.2 is added to the Unemployment
Insurance Code, to read:

14013.2.  

By January 1, 2015, the California Workforce
Investment Board shall develop and distribute guidelines or provide
other assistance, or both, to local workforce investment boards to
help them implement entrepreneurial and self-employment training
programs. In the development of these guidelines or other
assistance, the board may consult with state agencies and small
business-related associations, as appropriate.