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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