Amended in Senate July 2, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 285

Introduced by Assembly Member Brown

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(Coauthor: Assembly Member Medina)

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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 amended, 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.

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(4) This bill would incorporate additional changes to Section 14013 of the Unemployment Insurance Code proposed by Senate Bill 118 that would become operative if this bill and Senate Bill 118 are enacted and this bill is enacted last.

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

(1) Has five or fewer employees, including the owner, who may
be employed part time or full time.

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

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

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

(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 ensure coordination and
nonduplication among workforce programs and activities.

(2) Reviewing local workforce investment plans.

(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.

(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 (Public 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 board.

(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 (29 U.S.C. Sec. 2822(b)(9)).

(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.

(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.).

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begin insert SEC. 3.5. end insert   

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

14013.  

The board shall assist the Governor in the following:

(a) Promoting the development of a well-educated and highly
skilled begin insert 21st century end insert 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.

(4) Targeting resources to begin delete high-wage end delete begin insert competitive and emerging end insert
industry sectors begin delete that end delete begin insert and industry clusters that provide economic
security and end insert are either high-growth sectors or critical to
California’s economy, or both. begin insert These industry sectors and clusters
shall have significant economic impacts on the state and its
regional and workforce development needs, and have documented
career opportunities. end insert

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

end insert begin insert

(6) To the extent permissible under state and federal laws,
recommending youth policies and strategies that support linkages
between kindergarten and grades 1 to 12, inclusive, and community
college educational systems and youth training opportunities in
order to help youth secure educational and career advancement.
These policies and strategies may be implemented using a sector
strategies framework and should ultimately lead to placement in
a job providing economic security or job placement in an
entry-level job that has a well-articulated career pathway or career
ladder to a job providing economic security.

end insert begin insert

(7) To the extent permissible under state and federal law,
recommending adult and dislocated worker training policies and
investments that offer a variety of career opportunities while
upgrading the skills of California’s workforce. These may include
training policies and investments pertaining to any of the following:

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(A) Occupational skills training, including training for
nontraditional employment.

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(B) On-the-job training.

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(C) Programs that combine workplace training with related
instruction, which may include cooperative education programs.

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(D) Training programs operated by the private sector.

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(E) Skill upgrading and retraining.

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(F) Entrepreneurial training.

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(G) Job readiness training.

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(H) Adult education and literacy activities provided in
combination with any of the services described in this paragraph.

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(I) Customized training conducted with a commitment by an
employer or group of employers to employ an individual upon
successful completion of the training.

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(d) Developing and continuously improving the statewide
workforce investment system as delivered via the one-stop delivery
begin delete system, end delete begin insert system and via other programs and services supported by
funding from the federal Workforce Investment Act of 1998, end insert
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) Leveraging state and federal funds to ensure that resources
are invested in activities that meet the needs of the state’s
competitive and emerging industry sectors and advance the
education and employment needs of students and workers so they
can keep pace with the education and skill needs of the state, its
regional economies, and leading industry sectors.

end insert begin insert

(4) 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.

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(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.

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begin insert SEC. 5. end insert   

Section 3.5 of this bill incorporates amendments to
Section 14013 of the Unemployment Insurance Code proposed by
both this bill and Senate Bill 118. It shall only become operative
if (1) both bills are enacted and become effective on or before
January 1, 2014, (2) each bill amends Section 14013 of the
Unemployment Insurance Code, and (3) this bill is enacted after
Senate Bill 118, in which case Section 3 of this bill shall not
become operative.

end insert