BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1270|
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                                   THIRD READING 


          Bill No:  AB 1270
          Author:   Eduardo Garcia (D) and Roger Hernández(D)
          Amended:  4/6/15 in Assembly
          Vote:     21  

           SENATE LABOR & IND. REL. COMMITTEE:  5-0, 6/10/15
           AYES:  Mendoza, Stone, Jackson, Leno, Mitchell

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  74-0, 5/11/15 - See last page for vote

           SUBJECT:   California Workforce Innovation and Opportunity Act


          SOURCE:    California Labor and Workforce Development Agency


          DIGEST:  This bill makes 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.  This bill updates statutory references to the  
          Workforce Investment Act of 1998 to instead refer to the WIOA  
          and make related conforming changes. This bill renames the  
          California Workforce Investment Board (CWIB) the California  
          Workforce Development Board and revises the membership of the  
          board.  This bill renames the local boards as local workforce  
          development boards and revises their duties consistent with the  
          federal WIOA. 


          ANALYSIS:   Existing federal law enacts the WIOA, formerly known  








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          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.  The  
          federal WIOA was signed into law on July 22, 2014, and replaces  
          the WIA and retains and amends the Adult Education and Family  
          Literacy Act, the Wagner-Peyser Act, and the Rehabilitation Act  
          of 1973.  


          Existing state law:
           
           1)Establishes the CWIB and charges 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.   
             
          2)Provides that members of the CWIB are appointed by the  
            Governor and represent the many facets of workforce  
            development - business, labor, public education, higher  
            education, economic development, youth activities, employment  
            and training, as well as the Legislature.  
           
          This bill:

          1)Makes necessary changes to existing workforce development  
            statutes to conform to the new federal guidelines under the  
            WIOA while preserving core elements of California's workforce  
            development policies.  

          2)Replaces statutory WIA references to the WIOA and makes  
            related conforming changes.

          3)Renames the CWIB the California Workforce Development Board  
            and revises the membership of the board.

          4)Renames the local boards as local workforce development boards  
            and revises their duties consistent with the federal WIOA -  
            including a requirement that they develop a comprehensive  
            four-year local plan and revise the manner by which the board  
            shares that plan with the public. 








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          Background


          CWIB 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 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. 

          The federal 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 WIA.  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  







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          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  
            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  







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          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.

          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 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 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 that will make the  
          necessary changes to existing law for the implementation of WIOA  
          in our State. 

          Related Legislation
          
          AB 1507 (Committee on Labor & Employment, 2015) is similar to  
          this bill in that it 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.








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          SB 45 (Mendoza, 2015) is the second piece of legislation  
          sponsored by the California Labor and Workforce Development  
          Agency to make the necessary changes to existing law for the  
          implementation of WIOA. Among other things, the 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 45 is pending in Assembly Labor and  
          Employment Committee. 

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          SUPPORT:   (Verified6/10/15)


          California Labor and Workforce Development Agency (source)
          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:   (Verified6/10/15)


          California Right to Life Committee, Inc.


          ARGUMENTS IN SUPPORT:     According to the sponsor of this bill,  
          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  







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          point of service delivery across programs at the regional and  
          local levels, while also directing that workforce training align  
          with regional labor market needs. The sponsor states 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  
          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.


          ARGUMENTS IN OPPOSITION:     The California Right to Life  
          Committee, Inc. is opposed to this bill because they argue that  
          the language in this 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.

          ASSEMBLY FLOOR:  74-0, 5/11/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brown, Burke, Calderon, Chang, Chau, Chávez,  
            Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,  
            Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Harper, Roger  
            Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,  
            Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,  
            McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark  
            Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams,  
            Wood
          NO VOTE RECORDED:  Brough, Campos, Beth Gaines, Gallagher,  
            Grove, Atkins

          Prepared by:Alma Perez / L. & I.R. / (916) 651-1556
          6/24/15 17:20:38


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