SB 118, as amended, Lieu. Unemployment insurance: education and workforce investment systems.
Existing law provides that 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 further provides that the board must assist the Governor in targeting resources to specified high-wage industry sectors and providing guidance to ensure that services reflect the needs of those sectors.
This bill would provide that the board is also responsible for assisting the Governor in the alignment of the education and workforce investment systems to the needs of the 21st century workforce and the promotion
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development of a well-educated and highly skilled 21st century economy and workforce. This bill would require the board to assist the Governor in targeting resources to specified industry clusters that provide economic security and leverage state and federal funds to ensure that resources are invested in activities that meet the needs of specified industry sectors and advance the education and employment of students and workers so they can meet the specified needs of the state, its regional economies, and leading industry sectors.
Existing law requires the board, in collaboration with specified state and local partners, and the local workforce investment boards to develop a specified strategic workforce plan, updated at least every 5 years, to address the state’s economic, demographic, and workplace needs and to meet the single state plan requirement of the Workforce Investment Act of 1998.
This bill would require, as part of the strategic workforce plan, the creation of a California Industry Sector Initiative that will accomplish specified tasks, including aligning and leveraging federal, state, and local Workforce Investment Act funding streams, identifying specified industry sectors and clusters, providing skills-gap analysis, and establishing specified eligibility criteria for the Workforce Investment Act eligible training provider list.
This bill would also make related changes.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 14000 of the Unemployment Insurance
2Code is amended to read:
(a) The Legislature finds and declares that, in order
4for California to remain prosperous and globally competitive, it
5needs to have a well-educated and highly skilled workforce.
6(b) The Legislature finds and declares that the following
7principles shall guide the state’s workforce investment system:
8(1) Workforce investment programs and services shall be
9responsive to the needs of employers, workers, and students by
10accomplishing the following:
11(A) Preparing California’s students and workers with the skills
12necessary to successfully compete in the global economy.
13(B) Producing greater numbers of individuals who obtain
14industry-recognized certificates and degrees in competitive and
P3 1emerging industry sectors and filling critical labor market skills
3(C) Adapting to rapidly changing local and regional labor
4markets as specific workforce skill requirements change over time.
5(D) Preparing workers for good-paying jobs that foster economic
6security and upward mobility.
7(2) State and local workforce investment boards are encouraged
8to collaborate with other public and private institutions, including
9businesses, unions, nonprofit organizations, kindergarten and
10grades 1 to 12, inclusive, career technical education programs,
11adult career technical education and basic skills programs,
12community college career technical education and basic skills
14 the California Community Colleges Economic and Workforce
15Development Program, and the Employment Training Panel, to
16better align resources across workforce education and training
17service delivery systems and build a well-articulated workforce
18investment system by accomplishing the following:
19(A) Adopting local and regional training and education strategies
20that build on the strengths and fill the gaps in the education and
21workforce development pipeline in order to address the needs of
22job seekers, workers, and employers within regional labor markets
23by supporting sector strategies.
24(B) Leveraging resources across education and workforce
25training delivery systems to build career pathways and fill critical
27(3) Workforce investment programs and services shall be data
28driven and evidence based when setting priorities, investing
29resources, and adopting practices.
30(4) Workforce investment programs and services shall develop
31strong partnerships with the private sector, ensuring industry
32involvement in needs assessment, planning, and program
34(A) Workforce investment programs and services shall
35encourage industry involvement by developing strong partnerships
36with an industry’s employers and the unions that represent the
38(B) Workforce investment programs and services may consider
39the needs of employers of all sizes, including large,
P4 1medium, small, and
begin delete microenterprise employers,end delete
2 when setting priorities, investing resources, and adopting practices.
3(5) Workforce investment programs and services shall be
4outcome oriented and accountable, measuring results for program
5participants, including, but not limited to, outcomes related to
6program completion, employment, and earnings.
7(6) Programs and services shall be accessible to employers, workers, and students who may benefit from their
9operation, including individuals with employment barriers, such
10as persons with economic, physical, or other barriers to
Section 14005 of the Unemployment Insurance Code
13 is amended to read:
For purposes of this division:
begin delete shall meanend delete the California Workforce
17(b) “Agency” means the Labor and Workforce Development
19(c) “Career pathways,” “career ladders,” or “career lattices”
20mean an identified series of positions, work experiences, or
21educational benchmarks or credentials with multiple access points
22that offer occupational and financial advancement within a
23specified career field or related fields over time.
24(d) “Cluster-based sector strategies” means methods of focusing
25workforce and economic development on those sectors that have
26demonstrated a capacity for economic growth and job creation in
27a particular geographic area.
28(e) “Data driven” means a process of making decisions about
29investments and policies based on systematic analysis of data,
30which may include data pertaining to labor markets.
31(f) “Economic security” means, with respect to a worker, earning
32a wage sufficient to support a family adequately, and, over time,
33to save for emergency expenses and adequate retirement income,
34based on factors such as household size, the cost of living in the
35worker’s community, and other factors that may vary by region.
36(g) “Evidence-based” means making use of policy research as
37a basis for determining best policy practices. Evidence-based
38policymakers adopt policies that research has shown to produce
39positive outcomes, in a variety of settings, for a variety of
40populations over time. Successful, evidence-based programs deliver
P5 1quantifiable and sustainable results. Evidence-based practices
2differ from approaches that are based on tradition, belief,
3convention, or anecdotal evidence.
4(h) “High-priority occupations” mean occupations
that have a
5significant presence in a targeted industry sector or industry cluster,
6are in demand by employers, and pay or lead to payment of a wage
7that provides economic security.
8(i) “Individual with employment barriers” means an individual
9with any characteristic that substantially limits an individual’s
10ability to obtain employment, including indicators of poor work
11history, lack of work experience, or access to employment in
12nontraditional occupations, long-term unemployment, lack of
13educational or occupational skills attainment, dislocation from
14high-wage and high-benefit employment, low levels of literacy or
15English proficiency, disability status, or welfare dependency.
16(j) “Industry cluster” means a geographic concentration
17emerging concentration of interdependent industries with direct
18service, supplier, and research relationships, or independent
19industries that share common resources in a given regional
20economy or labor market. An industry cluster is a group of
21employers closely linked by common product or services,
22workforce needs, similar technologies, and supply chains in a given
23regional economy or labor market.
24(k) (1) “Industry or sector partnership” means a workforce
25collaborative that organizes key stakeholders in a targeted industry
26cluster into a working group that focuses on the workforce needs
27of the targeted industry cluster. An industry or sector partnership
28organizes the stakeholders connected with a specific local or
29regional industry--multiple firms, labor groups, education and
30training providers, and workforce and education systems--to
31develop workforce development strategies within the industry.
32Successful sector partnerships leverage partner resources to address
33both short-term and long-term human capital needs of a particular
34sector, including by analyzing current labor markets and identifying
35barriers to employment within the industry, developing cross-firm
36skill standards, curricula, and training programs, and developing
37occupational career ladders to ensure workers of all skill levels
38can advance within the industry.
39(2) Industry or sector partnerships include, at the appropriate
40stage of development of the partnership, all of the following:
P6 1(A) Representatives of multiple firms or employers in the
2targeted industry cluster, including small-sized and medium-sized
3employers when practicable.
4(B) One or more representatives of state labor organizations,
5central labor coalitions, or other labor organizations, except in
6instances where no labor representations exists.
7(C) One or more representatives of local workforce investment
9(D) One or more representatives of kindergarten and grades 1
10to 12, inclusive, and postsecondary educational institutions or other
11training providers, including, but not limited to, career technical
13(E) One or more
representatives of state workforce agencies or
14other entities providing employment services.
15(3) An industry or sector partnership may also include
16representatives from the following:
17(A) State or local government.
18(B) State or local economic development agencies.
19(C) Other state or local agencies.
20(D) Chambers of commerce.
21(E) Nonprofit organizations.
22(F) Philanthropic organizations.
23(G) Economic development organizations.
24(H) Industry associations.
25(I) Other organizations, as determined necessary by the members
26comprising the industry or sector partnership.
27(l) “Industry sector” means those firms that produce similar
28products or provide similar services using somewhat similar
29business processes, and are closely linked by workforce needs,
30within a regional labor market.
31(m) “Local labor federation” means a central labor council that
32is an organization of local unions affiliated with the California
33Labor Federation or a local building and construction trades council
34affiliated with the State Building and Construction Trades Council.
35(n) “Sector strategies” means methods of prioritizing
36investments in competitive and emerging industry sectors and
37industry clusters on the basis of labor market and other economic
38data indicating strategic growth potential, especially with regard
39to jobs and income, and exhibit the following characteristics:
P7 1(1) Focus workforce investment in education and workforce
2training programs that are likely to lead to jobs providing economic
3security or to an entry-level job with a well-articulated career
4pathway into a job providing economic security.
5(2) Effectively boost labor productivity or reduce business
6barriers to growth and expansion stemming from workforce supply
7problems, including skills gaps and occupational shortages by
8directing resources and making investments to plug skills gaps
9and provide education and training programs for high-priority
11(3) May be implemented using articulated career pathways or
12lattices and a system of stackable credentials.
13(4) May target underserved communities, disconnected youths,
14incumbent workers, and recently separated military veterans.
15(5) Frequently are implemented using industry or sector
17(6) Typically are implemented at the regional level where sector
18firms, those employers described in subdivisions (j) and (l), often
19share a common labor market and supply chains. However, sector
20strategies may also be implemented at the state or local level
21depending on sector needs and labor market conditions.
22(o) “Workforce Investment Act of 1998” means the federal act
23enacted as Public Law 105-220.
Section 14010 of the Unemployment Insurance Code
25 is amended to read:
The California Workforce Investment Board is the body
27responsible for assisting the Governor in the development,
28oversight, and continuous improvement of California’s workforce
29investment system and the alignment of the education and
30workforce investment systems to the needs of the 21st century
31economy and workforce.
Section 14013 of the Unemployment Insurance Code
33 is amended to read:
The board shall assist the Governor in the following:
35(a) Promoting the development of a well-educated and highly
36skilled 21st century workforce.
37(b) Developing the State Workforce Investment Plan.
38(c) Developing guidelines for the continuous improvement and
39operation of the workforce investment system, including:
40(1) Developing policies to guide the one-stop system.
P8 1(2) Providing technical assistance for the continuous
2improvement of the one-stop system.
3(3) Recommending state investments in the one-stop system.
4(4) Targeting resources to competitive and emerging industry
5sectors and industry clusters that provide economic security and
6are either high-growth sectors or critical to California’s economy,
7or both. These industry sectors and clusters shall have significant
8economic impacts on the state and its regional and workforce
begin delete neds,end delete and have documented career
11(5) To the extent permissible under state and federal laws,
12recommending youth policies and strategies that support linkages
13between kindergarten and grades 1 to 12, inclusive, and community
14college educational systems and youth training opportunities in
15order to help youth secure educational and career advancement.
16These policies and strategies may be implemented using a sector
17strategies framework and should ultimately lead to placement in
18a job providing economic security or job placement in an
19entry-level job that has a well-articulated career pathway or career
20ladder to a job providing economic security.
21(6) To the extent permissible under state and federal law,
22 recommending adult and dislocated worker training policies and
23investments that offer a variety of career opportunities while
24upgrading the skills of California’s workforce. These may include
25training policies and investments pertaining to any of the following:
26(A) Occupational skills training, including training for
28(B) On-the-job training.
29(C) Programs that combine workplace training with related
30instruction, which may include cooperative education programs.
31(D) Training programs operated by the private sector.
32(E) Skill upgrading and retraining.
33(F) Entrepreneurial training.
34(G) Job readiness training.
35(H) Adult education and literacy activities provided in
36combination with any of the services described in this paragraph.
37(I) Customized training conducted with a commitment by an
38employer or group of employers to employ an individual upon
39successful completion of the training.
P9 1(d) Developing and continuously improving
2workforce investment system as delivered via the one-stop delivery
3 system and via other programs and services supported by funding
4from the federal Workforce Investment Act of 1998, including:
5(1) Developing linkages in order to ensure coordination and
6nonduplication among workforce programs and activities.
7(2) Reviewing local workforce investment plans.
8(3) Leveraging state and federal funds to ensure that resources
9are invested in activities that meet the needs of the state’s
10competitive and emerging industry sectors and advance the
11education and employment needs of students and workers so they
12can keep pace with the education and skill needs of the state, its
13regional economies, and leading industry sectors.
14(e) Commenting, at least once annually, on the measures taken
15pursuant to the Carl D. Perkins Vocational and Applied Technology
16Education Act Amendments of 1990 (Public Law 101-392; 20
17U.S.C. Sec. 2301 et seq.).
18(f) Designating local workforce investment areas within the
19state based on information derived from all of the following:
20(1) Consultations with the Governor.
21(2) Consultations with the chief local elected officials.
22(3) Consideration of comments received through the public
23comment process, as described in Section 112(b)(9) of the federal
24Workforce Investment Act of 1998.
25(g) Developing and modifying allocation formulas, as necessary,
26for the distribution of funds for adult employment and training
27activities, for youth activities to local workforce investment areas,
28and dislocated worker employment and training activities, as
29permitted by federal law.
30(h) Coordinating the development and continuous improvement
31of comprehensive state performance measures, including state
32adjusted levels of performance, to assess the effectiveness of the
33workforce investment activities in the state.
34(i) Preparing the annual report to the United States Secretary of
36(j) Recommending policy for the development of the statewide
37employment statistics system, including workforce and economic
38data, as described in Section 15 of Title 29 of the United States
39Code, and using, to the fullest extent possible, the Employment
P10 1Development Department’s existing labor market information
3(k) Recommending strategies to the Governor for strategic
4training investments of the Governor’s 15-percent discretionary
6(l) Developing and recommending waivers, in conjunction with
7local workforce investment boards, to the Governor as provided
8for in the federal Workforce Investment Act of 1998.
9(m) Recommending policy to the Governor for the use of the
1025-percent rapid response funds, as authorized under the federal
11Workforce Investment Act of 1998.
12(n) Developing an application to the United States Department
13of Labor for an incentive grant under Section 9273 of Title 20 of
14the United States Code.
The board shall assist the Governor in the following:
18(a) Promoting the development of a well-educated and highly
20(b) Developing the State Workforce Investment Plan.
21(c) Developing guidelines for the continuous improvement and
22operation of the workforce investment system, including:
23(1) Developing policies to guide the one-stop system.
technical assistance for the continuous
25improvement of the one-stop system.
26(3) Recommending state investments in the one-stop system.
27(4) Targeting resources to
begin delete high-wageend delete
28 industry sectors
begin delete thatend delete are either high-growth sectors or critical to
30California’s economy, or both.
25(d) Developing and continuously improving the statewide
26workforce investment system as delivered via the one-stop delivery
begin delete system,end delete
30(1) Developing linkages in order to
begin delete assureend delete coordination
31and nonduplication among workforce programs and activities.
32(2) Reviewing local workforce investment plans.
33(3) Providing guidance to ensure services reflect the needs of
34high-wage industry sectors.
4(e) Commenting, at least once annually, on the measures taken
5pursuant to the Carl D. Perkins Vocational and Applied Technology
6Education Act Amendments of 1990
begin delete ( Publicend delete Law 101-392;
720 U.S.C. Sec. 2301 et seq.).
8(f) Designating local workforce investment areas within the
9state based on information derived from all of the following:
10(1) Consultations with the
begin delete Governorend delete.
11(2) Consultations with the chief local elected officials.
12(3) Consideration of comments received through the public
13comment process, as described in Section 112(b)(9) of the federal
14Workforce Investment Act of 1998.
15(g) Developing and modifying allocation formulas, as necessary,
16for the distribution of funds for adult employment and training
17activities, for youth activities to local workforce investment areas,
18and dislocated worker employment and training activities, as
19permitted by federal law.
20(h) Coordinating the development and continuous improvement
21of comprehensive state performance measures, including state
22adjusted levels of performance, to assess the effectiveness of the
23workforce investment activities in the state.
24(i) Preparing the annual report to the United States Secretary of
26(j) Recommending policy for the development of the statewide
27employment statistics system, including workforce and economic
28 data, as described in Section 15 of Title 29 of the United States
29Code, and using, to the fullest extent possible, the Employment
30Development Department’s existing labor market information
32(k) Recommending strategies to the Governor for strategic
33training investments of the Governor’s 15-percent discretionary
35(l) Developing and recommending waivers, in conjunction with
36local workforce investment boards, to the Governor as provided
37for in the federal Workforce Investment Act of 1998.
38(m) Recommending policy to the Governor for the use of the
3925-percent rapid response funds, as authorized under the federal
40Workforce Investment Act of 1998.
P13 1(n) Developing an application to the United States Department
2of Labor for an incentive grant under Section 9273 of Title 20 of
3the United States Code.
Section 14020 of the Unemployment Insurance Code
10 is amended to read:
(a) The California Workforce Investment Board, in
12collaboration with state and local partners, including the Chancellor
13of the California Community Colleges, the State Department of
14Education, other appropriate state agencies, and local workforce
15investment boards, shall develop a strategic workforce plan to
16serve as a framework for the development of public policy, fiscal
17investment, and operation of all state labor exchange, workforce
18education, and training programs to address the state’s economic,
19demographic, and workforce needs. The strategic workforce plan
20shall also serve as the framework for the single state plan required
21by the federal Workforce Investment Act of 1998. The plan shall
22be updated at least every five years.
23(b) The state shall develop a California Industry Sector Initiative
24that will serve as the cornerstone of the state plan and provide a
25framework for state workforce investments and support for sector
27(c) The California Workforce Investment Board shall work
28collaboratively with state and local partners to identify ways to
29eliminate systemwide barriers and better align and leverage federal,
30state, and local Workforce Investment Act funding streams and
31policies to develop, support, and sustain regional alliances of
32employers and workforce and education professionals who are
33working to improve the educational pipeline, establish
34well-articulated career pathways, provide industry-recognized
35credentials and certificates, and address the career advancement
36needs of current and future workers in competitive and emergent
37industry sectors and clusters. The California Workforce Investment
38Board and its partners shall work collaboratively to maximize state
39and local investments and pursue other resources to address the
P14 1skills-gap needs identified pursuant to paragraph (3) of subdivision
3(d) In order to support the requirement of the plans in
4subdivision (a), the California Workforce Investment Board shall
5do the following:
6(1) Annually identify industry sectors and industry clusters that
7have a competitive economic advantage and demonstrated
8economic importance to the state and its regional economies. In
9developing this analysis, the California Workforce Investment
10Board shall consider the expertise of local workforce investment
11boards in the state’s respective regional economies and shall
12encourage the local workforce investment boards to identify
13industry sectors and industry clusters that have a competitive
14economic advantage and demonstrated economic importance in
15their respective local workforce investment areas.
16(2) Annually identify new dynamic emergent industry sectors
17and industry clusters with substantial potential to generate new
18jobs and income growth for the state and its regional economies.
19In developing this analysis, the California Workforce Investment
20Board shall consider the expertise of local workforce investment
21boards in the state’s respective regional economies and shall
22encourage the local workforce investment boards to identify new
23dynamic emergent industry sectors and industry clusters with
24substantial potential to generate new jobs and income growth in
25their respective local workforce investment areas.
26(3) Provide an annual skills-gap analysis enumerating
27occupational and skills shortages in the industry sectors and
28industry clusters identified as having strategic importance to the
29state’s economy and its regional economies. In developing this
30analysis, the California Workforce Investment Board shall consider
31the expertise of local workforce investment boards in the state’s
32respective regional economies and shall encourage the local
33workforce investment boards to conduct skills-gap analysis for
34their respective local workforce investment areas. Skills-gap
35analysis for the state and its regional economies shall use labor
36 market data to specify a list of high-priority, in-demand occupations
37for the state and its regional economies. This list shall be used to
38inform investment decisions and eligible training provider policies.
39(4) Establish, with input from local workforce investment boards
40and other stakeholders, initial and subsequent eligibility criteria
P15 1for the federal Workforce Investment Act of 1998 eligible training
2provider list that effectively directs training resources into training
3programs leading to employment in high-demand, high-priority,
4and occupations that provide economic security, particularly those
5facing a shortage of skilled workers. The subsequent eligibility
6criteria, to the extent feasible, shall use performance and outcome
7measures to determine whether a provider is qualified to remain
8on the list. At a minimum, initial and subsequent eligibility criteria
9shall consider the following:
10(A) The relevance of the training program to the workforce
11needs of the state’s strategic industry sectors and industry clusters.
12(B) The need to plug skills gaps and skills shortages in the
13economy, including skills gaps and skills shortages at the state and
15(C) The need to plug skills gaps and skills shortages in local
16workforce investment areas.
17(D) The likelihood that the training program will lead to job
18placement in a job providing economic security or job placement
19in an entry-level job that has a well-articulated career pathway or
20career ladder to a job providing economic security.
21(E) The need for basic skills and bridge training programs that
22provide access to occupational skills training for individuals with
23barriers to employment and those who would otherwise be unable
24to enter occupational skills training.
25(F) To the extent feasible, utilize criteria that measure training
26and education provider performance, including, but not limited to,
28(i) Measures of skills or competency attainment.
29(ii) Measures relevant to program completion, including
30measures of course, certificate, degree, licensure, and program of
31study rate of completion.
32(iii) For those entering the labor market, measures of
33employment placement and retention.
34(iv) For those continuing in training or education, measures of
35educational or training progression.
36(v) For those who have entered the labor market, measures of
37income, including wage measures.
38(G) The division of labor for making initial and subsequent
39eligibility determinations under this division shall be modeled on
40the division of labor envisioned in the federal Workforce
P16 1Investment Act of 1998 in that the state board shall establish, with
2input from local workforce investment boards and other
3stakeholders, the initial and subsequent eligibility procedures and
4criteria utilized by local workforce investment boards to assess
5training provider performance. The local boards shall have the
6authority to place and retain training providers on the list, and shall
7provide relevant performance data pertaining to the training
8provider criteria established pursuant to this division to a state
9agency designated by the Governor. The relevant state agency
10shall also have the authority to remove training providers for
11nonperformance, provided they do not meet the performance
12criteria established pursuant to this division.
13(H) If the state
receives a waiver from the federal subsequent
14eligibility provisions specified in the federal Workforce Investment
15Act of 1998, the state workforce investment board shall establish
16its own subsequent eligibility criteria that take into account all of
17the criteria specified in subparagraphs (A) to (G), inclusive.