BILL ANALYSIS Ó AB 2060 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2060 ( V. Manuel Pérez) As Amended August 20, 2014 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |77-0 |(May 28, 2014) |SENATE: |36-0 |(August 27, | | | | | | |2014) | ----------------------------------------------------------------- Original Committee Reference: PUB. S. SUMMARY : Establishes the Supervised Population Workforce Training Grant Program. The Senate amendments : 1)Add legislative findings and declarations that the Legislature appropriated funding to the Employment Development Department (EDD) for a recidivism reduction workforce training and development grant program and that it is the intent of the Legislature that the California Workforce Investment Board (CWIB) be responsible for setting the policy of the grant program and that this bill allow EDD to provide funds from its budget appropriation to CWIB. 2)Remove the Recidivism Reduction Fund as the funding source of the Supervised Population Workforce Training Grant Program. AS PASSED BY THE ASSEMBLY , this bill: 1)Established the Supervised Population Workforce Training Grant Program to be administered by CWIB. 2)Require the grant program to be developed and implemented, as specified; and funded, upon appropriation from the Legislature, using money from the Recidivism Reduction Fund. Provides that implementation of the program is contingent upon the CWIB Director notifying the Department of Finance that sufficient moneys have been appropriated for this specific grant program. 3)Require CWIB to administer the grant program as follows: a) Develop criteria for the selection of grant recipients AB 2060 Page 2 through a public application process, including the rating and ranking of applications that meet threshold criteria. b) Design the grant program application process to ensure all of the following occurs: i) There is fairness and competitiveness for smaller counties; ii) There is fair and equitable geographic distribution of grant funds; and, iii) There is greater consideration given to counties that have demonstrated a collaborative working relationship with local workforce investment boards and that currently have in place a workforce training program for the supervised population. 4)Requires the grant program to be competitively awarded through at least two rounds of funding, as specified, and provides that each county is eligible to apply but that a single application may include multiple counties applying jointly. Requires each application to include a partnership agreement between the county or counties and one or more local workforce investment boards that outline the actions each party agrees to undertake as part of the project proposed in the application: 5)Requires, at a minimum, each project proposed in the application to include a provision for an education and training assessment for each individual of the supervised population who participates in the project. 6)Provides that eligible uses of grant funds include, but are not limited to, vocational training, stipends for trainees, and apprenticeship opportunities for the supervised population. States that supportive services and job readiness activities are to serve as bridge activities that lead to enrollment in long-term training programs. 7)Provides that preference is to be awarded to applications for the following: a) An application that proposes matching funds, including, but not limited to, moneys committed by local AB 2060 Page 3 workforce investment boards, local governments, and private foundation funds; b) An application submitted by a county that currently administers or participates in a workforce training program for the supervised population; and, c) An application that proposes participation by one or more nonprofit community based organizations that serve the supervised population. 1)Requires an application to meet the following requirements: a) Set a specific purpose for the use of the grant funds, as well as provide the baseline criteria and metrics by which the overall success of the grant project can be evaluated; b) Define the specific subset of the supervised population, among the eligible supervised population that the grant money will serve; c) Define the industry sector or sectors in which the targeted supervised population will be trained, including the current and projected workforce within the region for those jobs, the range of wage rates, and the training and education requirements within those industry sectors; and, d) Define the general methodology and training methods proposed to be used and explain the manner in which the progress of the targeted supervised population will be monitored during the grant period. 1)Requires a grant recipient, as a condition of receiving funds, to agree to provide information to CWIB in sufficient detail to allow CWIB to meet specified reporting requirements. 2)States that eligible uses of grant funds include, but are not limited to, vocational training, stipends for trainees, and apprenticeship opportunities for the supervised population. 3)Requires grant recipients to report annually to CWIB regarding their use of the funds and workforce training program outcomes upon completion of the grant period. AB 2060 Page 4 4)Requires CWIB to submit a report, as specified, to the Legislature, using the reports from the grant recipients, by January 1, 2018, containing all the following information: a) The overall success of the grant program, as specified; b) An evaluation of the effectiveness of the grant program, as specified; c) A recommendation on the long-term viability of local workforce investment board and county collaborations on workforce training programs for the supervised population; d) A recommendation on the long-term viability of county workforce training programs for the supervised population; and, e) In considering the overall success and effectiveness of the grant program, the report shall include a discussion of all of the following: i) Whether the programs aligned with the workforce needs of high-demand sectors of the state and regional economies; ii) Whether there was an active job market for the skills being developed where the member of the supervised population was likely to be released; iii) Whether the program increased the number of members of the supervised population that obtained a marketable and industry or apprenticeship board-recognized certification, credential, or degree; iv) Whether the program increased the number of the supervised population that successfully completed a job readiness basic skill bridge program and enrolled in a long term training program; v) Whether there were formal or informal networks in the field that support finding employment upon release from custody; and, vi) Whether the program led to employment in occupations AB 2060 Page 5 with a livable wage. 5)Establishes that the provisions of this bill will sunset on January 1, 2021, unless extended. FISCAL EFFECT : According to the Senate Appropriations Committee: 1)Major future cost pressure, likely in the millions to tens of millions of dollars (Special Fund/General Fund) to support a statewide grant program. Implementation of the program is contingent upon the CWIB notifying the Department of Finance (DOF) that sufficient moneys have been appropriated for this specific grant program. 2)Annual costs of about $100,000 (General Fund*) to the CWIB to provide programmatic oversight, administer the grant program through the development of the criteria for selection of grantees, design the grant application process, process and review applications, collection of data from grantees, and submittal of a report to the Legislature. Costs are to be funded from the $1 million RRF appropriated in the 2014 Budget Act for this purpose. 3)Ongoing administrative costs potentially in the range of 5% to 10% of moneys annually appropriated, to the Employment Development Department (EDD) for CWIB to utilize the EDD as its fiscal and administrative agent for tasks such as the obligation of funds, performance of grant closeout activities and grantee compliance audits. *Recidivism Reduction Fund COMMENTS : According to the author, "With orders from the U.S. Supreme Court to reduce its prison population, the state needs smart, effective policies to help local jurisdictions achieve realignment goals and reduce recidivism. Workforce development for the re-entry population is a practical strategy for improving access to a stable job. It helps improve offender outcomes, reduce the likelihood of recidivism, and promote community safety and stability." Please see the policy committee analysis for a full discussion of this bill. AB 2060 Page 6 Analysis Prepared by : Shaun Naidu / PUB. S. / (916) 319-3744 FN: 0005434