BILL ANALYSIS Ó
SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS
Senator Tony Mendoza, Chair
2015 - 2016 Regular
Bill No: AB 1270 Hearing Date: June 10,
2015
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|Author: |Eduardo Garcia and Roger Hernandez |
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|Version: |April 6, 2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Alma Perez-Schwab |
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Subject: California Workforce Innovation and Opportunity Act.
KEY ISSUE
Should the Legislature pass legislation to conform California's
workforce development laws to the new federal Workforce
Innovation and Opportunity Act of 2014 requirements in order to
continue receiving workforce development services funding?
ANALYSIS
Existing law enacts the federal Workforce Innovation and
Opportunity Act (WIOA), formerly known as the federal Workforce
Investment Act (WIA) of 1998, which provides for activities and
programs for job training and employment investment in which
states can participate. Following passage of the federal WIA in
1998, the state established the California Workforce Investment
Board (CWIB) and charged the board with the responsibility of
developing a unified, strategic planning process to coordinate
various education, training, and employment programs into an
integrated workforce development system. CWIB is also
responsible for the development of an annual workforce metrics
dashboard for measuring investment in workforce development.
Members of the CWIB are appointed by the Governor and represent
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the many facets of workforce development - business, labor,
public education, higher education, economic development, youth
activities, employment and training, as well as the Legislature.
The federal Workforce Innovation and Opportunity Act (WIOA) was
signed into law on July 22, 2014 and replaces the Workforce
Investment Act of 1998 and retains and amends the Adult
Education and Family Literacy Act, the Wagner-Peyser Act, and
the Rehabilitation Act of 1973.
This Bill would make necessary changes to existing workforce
development statutes to conform to the new federal guidelines
under the Workforce Innovation and Opportunity Act (WIOA) while
preserving core elements of California's workforce development
policies.
Among other things, this bill would:
1. Update statutory Workforce Investment Act of 1998
references to the Workforce Innovation and Opportunity Act
of 2014 and make related conforming changes.
2. Rename the CA Workforce Investment Board the CA
Workforce Development Board and would revise the membership
of the board.
3. Rename the local boards as local workforce development
boards and would revise their duties consistent with the
federal WIOA - including a requirement that they develop a
comprehensive 4-year local plan and revise the manner by
which the board shares that plan with the public.
COMMENTS
1. Background on the CA Workforce Investment Board and WIA
Funding:
The CWIB is charged with developing a unified, strategic
planning process to coordinate various education, training,
and employment programs into an integrated workforce
development system. As such, the CWIB has adopted Sector
Strategies as the statewide framework for workforce
development, and is working closely with the Economic Strategy
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Panel, other State Agencies and departments and its 49 local
Workforce Investment Boards to support the emergence of
effective statewide and regionally driven sector initiatives.
Under federal law, WIA funds are distributed to the states
based on formulas that consider unemployment rates and other
economic and demographic factors. California and its 49 Local
Workforce Investment Boards receive WIA formula funding from
the U.S. Department of Labor through three revenue streams -
Adult, Youth, and Dislocated Workers. Under federal law, 85
percent of Adult and Youth formula funds, and 60 percent of
Dislocated Worker formula funds are distributed to local WIBs.
Fifteen percent of Adult, Youth, and Dislocated Worker
formula funds (15% discretionary funds) are allocated to the
state for a variety of discretionary uses. This split in funds
usage has changed in recent years due to federal budgetary
restrictions and reductions so that the state generally gets
less than the 15% discretionary funds. California's WIA
allocation from the U.S. Department of Labor has declined over
the years from a high of $630 million in 2000-01 to $391
million in 2014-15. California now receives between $350 and
$400 million in federal WIA dollars annually.
2. The federal Workforce Innovation and Opportunity Act (WIOA):
The federal WIOA, passed by a wide bipartisan majority and
signed into law by President Barack Obama on July 22, 2014, is
the first legislative reform of the public workforce system in
more than 15 years. WIOA supersedes the Workforce Investment
Act of 1998. WIOA brings together, in strategic coordination,
the core programs of Federal investment in skill development,
including employment and training services for adults,
dislocated workers, youth and individuals with disabilities.
WIOA also authorizes programs for specific vulnerable
populations including Indian and Native Americans and migrant
and seasonal farmworker programs, among others.
The following are some highlights of the WIOA reforms:
Strategically aligns investments in workforce
development programs to ensure that services provided are
coordinated and complementary to ensure job seekers acquire
skills and credentials that meet employers' needs.
Promotes accountability and transparency by ensuring
that investments are evidence-based and data-driven, and
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accountable to participants and tax-payers.
Fosters regional collaboration to promote alignment of
programs with regional economic development strategies to
meet local needs.
Improves quality and accessibility of services received
by job seekers and employers at their local job centers by,
among other things, establishing criteria for certification
of the centers that ensures continuous improvements.
Improves services to employers and promotes work-based
training - matching employers with skilled individuals by
promoting the use of industry and sector partnerships.
Promotes the use of Registered Apprenticeship programs
which has proven successful at providing workers with
career pathways and opportunities to earn while they learn.
Streamlines and strengthens the roles of Workforce
Development Boards - both state and local - to ensure
programs are coordinated, complementary and consistent
across the state.
The WIOA provisions take effect on July 1, 2015, the first
full program year after enactment. However, the WIOA state
unified and local plans and the WIOA performance
accountability provisions don't take effect until July 1,
2016. The U.S. Department of Labor will issue further guidance
on the timeframes for implementation of WIOA.
3. Need for this bill?
The U.S. Department of Labor, in coordination with the U.S.
Departments of Education and Health and Human Services, are
working to ensure that states and local areas, other grantees,
and stakeholders are prepared for implementation of WIOA by
providing technical assistance, tools, and resources to its
website, webinars, and virtual and in-person discussions. The
U.S. Department of Labor has also recommended that state's
review their existing laws to identify areas that may conflict
with WIOA and develop plans and strategies to resolve these
conflicts.
Additionally, beyond complying with the new federal
requirements, WIOA offers states an opportunity to continue to
modernize the workforce system and create a customer-centered
system where 1) the needs of business and workers drive
solutions; 2) one-stop career centers provide excellent
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customer service to jobseekers and businesses; and 3) the
workforce system supports strong regional economies. State and
local workforce boards - in partnership with workforce,
economic development, education, and social service
organizations at the state, regional and local levels are
encouraged to work together in this transition to achieve the
vision of WIOA. To this end, WIOA allows states and locals to
use up to two percent (2%) of the WIA's 2014 fiscal year
Youth, Adult and Dislocated Worker funds for this transition.
AB 1270 is one of two bills being sponsored by the California
Labor and Workforce Development Agency and the California
Workforce Investment Board that will make the necessary
changes to existing law for the implementation of WIOA in our
State. Specifically, the bill updates the headings,
definitions, code sections and language that conflict with
federal WIOA with regard to state and local plans and
responsibilities, the composition of state and local workforce
boards, timelines, local and regional collaboration, and the
one-stop center system, among others.
Another bill before our Committee today, AB 1507, similarly
updates the WIA to WIOA references, however, each amending
different code sections where these changes are needed.
4. Proponent Arguments :
According to the sponsors of the measure, the California Labor
and Workforce Development Agency, the new federal WIOA seeks
to make the workforce system more comprehensive in its
approach to service delivery and more responsive to the
demands of our global economy. In particular, the new law
requires greater policy and operational alignment among
workforce services, adult education, job services, and
vocational rehabilitation. It also calls for program
coordination among workforce services, community college
programs, and social service programs, as well as coordinated
point of service delivery across programs at the regional and
local levels, while also directing that workforce training
align with regional labor market needs. Sponsors state that
this bill is necessary to make technical conforming changes to
the State Workforce Act consistent with direction from WIOA.
Additionally, the author states that while this bill modifies
state workforce development laws to conform to the changes
required by the new federal WIOA, the core elements of
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California's workforce development policies are preserved
including a focus on regional economies and sector strategies
as well as recently enacted workforce data and measurement
metrics designed to incentivize high performing boards, and
set minimum local training expenditures.
5. Opponent Arguments :
The California Right to Life Committee, Inc. is opposed to the
measure because they argue that the language in the bill views
government as the conduit for employment, working with
existing boards and councils to direct where businesses should
be developed or supported. They support less government
involvement in business, family and personal lives.
6. Prior and Related Legislation :
AB 1507 (Committee on Labor & Employment) of 2015: Pending
before this committee
Similar to this bill, AB 1507 makes necessary conforming
changes to various codes in order to update the WIA to WIOA
references, however, each amending different code sections
where these changes are needed.
SB 45 (Mendoza) of 2015: Pending in Assembly Labor &
Employment Committee
SB 45 is the second piece of legislation sponsored by the CA
Labor and Workforce Development Agency to make the necessary
changes to existing law for the implementation of WIOA. Among
other things, this bill requires that the state, in conformity
with WIOA and after consultation with local boards and chief
elected officials, identify planning regions and requires the
locals to prepare regional workforce development plans.
SB 118 (Lieu) of 2013: Chaptered
SB 118 required the CWIB to incorporate specific principles
into the state's strategic plan that align the education and
workforce investment systems of the state to the needs of the
21st century economy and promotes a well-educated and highly
skilled workforce to meet the future workforce needs. SB 118
was a re-introduction of SB 1401 from 2012.
SB 698 (Lieu) of 2011: Chaptered
SB 698 requires the Governor to establish, through the CWIB,
standards for certification of high-performance local WIBs, in
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accordance with specified criteria. The bill also requires the
Governor and the Legislature, in consultation with the CWIB,
to reserve specified federal discretionary funds for
high-performing local WIBs.
SUPPORT
California Labor and Workforce Development Agency (Sponsor)
Association of California School Administrators
California Chamber of Commerce
California Manufacturers &Technology Association
California Primary Care Association
California Professional Association of Specialty Contractors
California Workforce Association
La Cooperativa Campesina de California
SIATech
OPPOSITION
California Right to Life Committee, Inc.
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