BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1028
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          SENATE THIRD READING
          SB 1028 (Jackson)
          As Amended  August 22, 2014
          Majority vote

           SENATE VOTE  :28-9  
           
           HIGHER EDUCATION    13-0        APPROPRIATIONS      13-3        
           
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          |Ayes:|Williams, Chávez, Bloom,  |Ayes:|Gatto, Bocanegra,         |
          |     |Fong, Fox, Jones-Sawyer,  |     |Bradford,                 |
          |     |Levine, Linder, Medina,   |     |Ian Calderon, Campos,     |
          |     |Olsen, Quirk-Silva,       |     |Eggman, Gomez, Holden,    |
          |     |Weber, Wilk               |     |Linder, Pan, Quirk,       |
          |     |                          |     |Ridley-Thomas, Weber      |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Donnelly, Jones, Wagner   |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires special consideration for Cal Grant C awards,  
          administered by the California Student Aid Commission (CSAC), to  
          be provided to specified socially or economically disadvantaged  
          students.  Specifically,  this bill  :   

          1)Requires special consideration be given to the social and  
            economic situations of students applying for Cal Grant C  
            awards, giving additional weight to disadvantaged applicants,  
            applicants who face economic hardship, and applicants who face  
            particular barriers to employment, with criteria including all  
            of the following:

             a)   Family income and household size;

             b)   Student or parent's household status, including whether  
               the student is a single parent or the child of a single  
               parent; and

             c)   The employment status of the applicant and whether the  
               applicant is unemployed, giving greater weight to the  
               long-term unemployed.

          2)Provides that Cal Grant C awards may be used for, in  
            additional to training and equipment costs, living expenses.









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          3)Requires CSAC to, when identifying areas of training where Cal  
            Grant C awards may be used, consult with the Economic and  
            Workforce Development Division of the California Community  
            Colleges Chancellor's Office (CCC EWD), the California  
            Workforce Investment Board (CWIB), and to the extent feasible,  
            representatives of leading competitive and emerging industry  
            clusters, workforce professionals, and career technical  
            educators to determine which occupational training programs  
            and industry clusters should be prioritized.

          4)Requires areas of occupational and technical training to be  
            updated by January 1, 2016.

          5)Clarifies the job quality criteria for Cal Grant C award  
            prioritization to include jobs that are a part of a  
            well-articulated career pathway to a job providing economic  
            security, among other clarifying changes; and requires  
            programs to meet, at least, either the aforementioned criteria  
            or high salary and wage projection criteria.

          6)Requires CSAC to consult with the Employment Development  
            Department (EDD), CCC EWD, and CWIB to publicize the existence  
            of the Cal Grant C award program and to make students  
            receiving awards aware of job search and placement services  
            available through EDD and local workforce investment boards. 

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, General Fund costs to CSAC of around $80,000 for one  
          staff to oversee program modifications and coordination with  
          EDD, CCC [EWD], and WIB on outreach to targeted cohorts.  Costs  
          to the other entities should be minor and absorbable.

           COMMENTS  :  According to the author, the aftermath of the most  
          recent recession is notable for the severity of long-term  
          unemployment levels.  In 2010, approximately 45% of the  
          unemployed in the United States has been unemployed for six  
          months or longer (the highest percentage since the Great  
          Depression), while in January 2014, long-term unemployment  
          remained at 2.5 times the national pre-crisis average.   
          California has one of the highest long-term unemployment rates  
          in the country.  In February 2014, about 640,000 workers were  
          unemployed for six months or longer.  

          The author notes that there is currently no training program  
          that specifically targets the long-term unemployed in  








                                                                  SB 1028
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          California, though there are training programs that they may  
          qualify for, like the Workforce Investment Act dislocated worker  
          program.  That program typically provides access to short term  
          job training programs, but does so for only a very small  
          fraction of those who might benefit from the program.  This bill  
          differs in that it specifically targets the long-term unemployed  
          and provides access to longer-term occupational training, up to  
          two years, and focuses on growth industries and occupations,  
          providing skills that are in demand by employers.  

           
          Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916)  
          319-3960 


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