BILL ANALYSIS �
SB 118
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SENATE THIRD READING
SB 118 (Lieu)
As Amended August 13, 2013
Majority vote
SENATE VOTE :35-3
LABOR & EMPLOYMENT 7-0 ECONOMIC DEVELOPMENT 8-0
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|Ayes:|Roger Hern�ndez, Morrell, |Ayes:|Medina, Mansoor, Campos, |
| |Alejo, Chau, Gomez, | |Daly, Fong, Fox, Linder, |
| |Gorell, Holden | |Melendez |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 17-0
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|Ayes:|Gatto, Harkey, Bigelow, | | |
| |Bocanegra, Bradford, Ian | | |
| |Calderon, Campos, | | |
| |Donnelly, Eggman, Gomez, | | |
| |Hall, Holden, Linder, | | |
| |Pan, Quirk, Wagner, Weber | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires the California Workforce Investment Board
(CWIB) to incorporate specific principles into the state's
strategic plan that align the education and workforce investment
systems of the state to promote a well-educated and highly
skilled workforce to meet the workforce needs. Specifically,
this bill :
1)Defines "sector strategy" as methods of prioritizing
investments in competitive and emerging industry sectors and
industry clusters on the basis of the labor market and other
economic data indicating strategic growth potential,
especially with regards to jobs and income, as specified.
2)Requires the state to develop a California Industry Sector
Initiative to serve as the cornerstone of the CWIB and provide
a framework for the state workforce investments and support
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for sector strategies.
3)Defines "industry sector" as those firms that produce similar
products or provide similar services using somewhat similar
business processes, and are closely linked by workforce needs,
within a regional labor market.
4)Defines "industry clusters" as a geographic concentration or
emerging concentration of independent industries with direct
service, supplier, and research relationships, or independent
industries that share common resources in a given regional
economy or labor market, as specified.
5)Requires CWIB to work collaboratively with state and local
partners to identify ways of eliminating statewide barriers
and better align and leverage federal, state, and local
Workforce Investment Act (WIA) funding streams, as specified.
Further specifies targeted requirements to accomplish this.
6)Specifies the division of labor for making initial and
subsequent eligibility determinations for the Eligible
Training Provider List (ETPL) shall be modeled on federal law
and include input from local workforce investment boards and
other stakeholders, as specified. Local boards shall have the
authority to place and retain training providers on the list,
as specified.
7)Makes other related changes and contains language to prevent
chaptering out issues with AB 285 (Brown) of the current
legislative session.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, there will be minor, absorbable administrative costs
to the Employment Development Department (EDD) to implement this
measure. According to EDD, it currently collects the labor
market data necessary to implement the bill's requirements.
COMMENTS : There is broad consensus that better educated and
trained workers are more productive and more successful in labor
markets. Specifically, targeting these efforts toward the job
sectors that are best positioned to make gains, if investments
are made, is vital and requires the use of current economic and
labor market data to determine what those sectors are. "Sector
strategies" are policy initiatives designed to promote the
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economic growth and development of a state's competitive
industries using strategic workforce investments to boost labor
productivity.
When done successfully, sector strategies can lead to mutually
beneficial outcomes for business, labor, and the state by
increasing competitiveness and growth, improving worker
employability and income, and reducing the need for social
services while also bolstering government revenues generated by
both business and workers.
A March 2012 report from the California State Auditor, "Federal
Workforce Investment Act: More Effective State Planning and
Oversight Is Necessary to Better Help California's Job Seekers
Find Employment," evaluated the state's administration of WIA
funding.
The State Auditor made several recommendations in the report,
including one that the Legislature should consider establishing
a due date for the CWIB to develop a strategic workforce plan,
and clarify the roles and responsibilities of the CWIB and the
EDD. The State Auditor also made recommendations to the CWIB
aimed at developing, overseeing, and continuously improving
California's workforce investment system by collaborating with
state and local workforce partners and clearly defining
terminology and identifying state-specific performance measures.
The CWIB has begun taking steps to address some of the concerns
raised by the audit.
The author believes it is important to update the
responsibilities of the CWIB to address our changing economy and
encourage a more strategic approach to training for future
workforce needs.
Please see the policy committee analysis for more detailed
information.
Analysis Prepared by : Lorie Alvarez/ L. & E. / (916) 319-2091
FN: 0001801
SB 118
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