BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1507|
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THIRD READING
Bill No: AB 1507
Author: Committee on Labor and Employment
AmendedAmended:4/16/15 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: 78-0, 5/14/15 (Consent) - See last page for
vote
SUBJECT: California Workforce Investment Act
SOURCE: Author
DIGEST: This bill updates statutory references to the federal
Workforce Investment Act of 1998 to instead refer to the
recently enacted federal Workforce Innovation and Opportunity
Act and makes related conforming changes.
ANALYSIS:
Existing federal law:
1)Enacts the federal Workforce Innovation and Opportunity Act
(WIOA), formerly known as the federal Workforce Investment Act
of 1998 (WIA), which provides for activities and programs for
job training and employment investment in which states can
participate.
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2)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 California Workforce Investment Board (CWIB)
and charged the CWIB with the responsibility of developing a
unified, strategic planning process to coordinate various
education, training, and employment programs into an
integrated workforce development system. The 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 replaces references to the WIA with the WIOA
throughout various sections of the Education, Government, Labor,
Military and Veterans, Public Resources, Unemployment Insurance
and Welfare and Institutions Codes.
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% of Adult
and Youth formula funds, and 60% of Dislocated Worker formula
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funds are distributed to local WIBs. 15% 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.
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
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
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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.
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 Web
site, 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.
Related Legislation
AB 1270 (Garcia, 2015) is similar to this bill in that it makes
necessary conforming changes to various codes in order to
updates the WIA to WIOA references, however, each amending
different code sections where these changes are needed. The bill
also renames the CWIB the California Workforce Development Board
and revises the membership of the Board. The bill renames the
local boards as local workforce development boards and revises
their duties consistent with the federal WIOA.
SB 45 (Mendoza, 2015) is a two-year bill sponsored by the
California Labor and Workforce Development Agency to make the
necessary policy changes that may emerge as the stakeholder
process for the implementation of WIOA continues. Among other
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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. The bill is
pending in the Assembly Labor and Employment Committee.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
SUPPORT: (Verified6/10/15)
Association of California School Administrators
OPPOSITION: (Verified6/10/15)
None received
ARGUMENTS IN SUPPORT: According to the author, last year
President Obama signed legislation to reauthorize, rename and
revise the federal workforce development law -- now called the
Workforce Innovation and Opportunity Act. California law, which
currently references the previous WIA, is now out-of date. This
bill will replace all references in California law to WIA with
the now-proper reference to WIOA.
ASSEMBLY FLOOR: 78-0, 5/14/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Lopez, Low,
Maienschein, Mathis, Mayes, McCarty, 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, Atkins
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NO VOTE RECORDED: Linder, Medina
Prepared by:Alma Perez / L. & I.R. / (916) 651-1556
6/24/15 15:31:25
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