Amended in Senate August 10, 2016

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1508

Introduced by Assembly Member begin delete  Roger Hernández end delete begin insert Mullin end insert

March 4, 2015

An act to begin delete to add Article 3.5 (commencing with Section 12035) of Chapter 1 of Part 2 of Division 3 of Title 2 of, and to repeal the heading of Article 3.5 (commencing with Section 12035) of Chapter 1 of Part 2 of Division 3 of Title 2 of, the Government Code, relating to the underground economy. end delete begin insert amend Section 14211 of the Unemployment Insurance Code, relating to workforce development. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1508, as amended, begin delete Assembly Member Roger Hernández end delete   begin insert Mullin end insert . begin delete Underground economy: policy adviser. end delete begin insert Workforce investment boards: funding. end insert

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The federal Workforce Innovation and Opportunity Act of 2014 provides for workforce investment activities, including activities in which states may participate. Existing law contains various programs for job training and employment investment, including work incentive programs, as specified, and establishes local workforce investment boards to perform duties related to the implementation and coordination of local workforce investment activities. Existing law requires local workforce investment boards to spend a minimum percentage of specified funds for adults and dislocated workers on federally identified workforce training programs and allows the boards to leverage specified funds to meet the funding requirements, as specified. Existing law authorizes a credit of up to 10% of that funding minimum for leveraged funds, which include Pell Grants and employment training panel grants.

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This bill would expand the types of services to which leveraged funds may be applied to include supportive services and would expand the types of leveraged funds that may be applied to the 10% credit, described above, to include specified federal, local, state, and private funds.

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The Joint Enforcement Strike Force on the Underground Economy, created pursuant to executive order, includes the Employment Development Department, the Department of Consumer Affairs, the Department of Industrial Relations, the Department of Insurance, and the Office of Criminal Justice Planning. Existing law prescribes the duties of the strike force, which include facilitating and encourage the development and sharing of information by the participating agencies necessary to combat the underground economy.

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This bill would require the Governor to designate an independent chief policy adviser for the underground economy. The bill would prescribe the adviser’s duties, which would include monitoring the state’s existing underground economy task forces and interagency partnerships to ensure that they are organized efficiently and evaluating whether any task forces and partnerships should be eliminated or restructured to improve effectiveness. The bill would require the adviser, on or before January 1, 2017, to submit a report to the Governor and the Legislature that summarizes the adviser’s findings and recommendations, with a focus on recommended administrative or legislative changes.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 14211 of the end insert begin insert Unemployment Insurance
Code end insert begin insert is amended to read: end insert

14211.  

(a) (1) Beginning program year 2012, an amount equal
to at least 25 percent of funds available under Title I of the federal
Workforce Innovation and Opportunity Act of 2014 (Public Law
113-128) provided to local workforce investment boards for adults
and dislocated workers shall be spent on workforce training
programs. This minimum may be met either by spending 25 percent
of those base formula funds on training or by combining a portion
of those base formula funds with leveraged funds as specified in
subdivision (b).

(2) Beginning program year 2016, an amount equal to at least
30 percent of funds available under Title I of the federal Workforce
Innovation and Opportunity Act of 2014 (Public Law 113-128)
provided to local workforce development boards for adults and
dislocated workers shall be spent on workforce training programs.
This minimum may be met either by spending 30 percent of those
base formula funds on training or by combining a portion of those
base formula funds with leveraged funds as specified in subdivision
(b).

(3)  begin delete Expenditures end delete begin insert Except as provided in subdivision (b),
expenditures end insert that shall count toward the minimum percentage of
funds shall include only training services as defined in Section
3174(c)(3)(D) of Title 29 of the United States Code and the
corresponding sections of the Code of Federal Regulations,
including all of the following:

(A) Occupational skills training, including training for
nontraditional employment.

(B) On-the-job training.

(C) Programs that combine workplace training with related
instruction, which may include cooperative education programs.

(D) Training programs operated by the private sector.

(E) Skill upgrading and retraining.

(F) Entrepreneurial training.

(G) Incumbent worker training in accordance with Section
3174(d)(4) of Title 29 of the United States Code.

(H) Transitional jobs in accordance with Section 3174(d)(5) of
Title 29 of the United States Code.

(I) Job readiness training provided in combination with any of
the services described in subparagraphs (A) to (H), inclusive.

(J) Adult education and literacy activities provided in
combination with services described in any of subparagraphs (A)
to (G), inclusive.

(K) Customized training conducted with a commitment by an
employer or group of employers to employ an individual upon
successful completion of the training.

(b) (1) Local workforce development boards may receive a
credit of up to 10 percent of their adult and dislocated worker
formula fund base allocations for public education and training
funds and private resources from industry and from joint
labor-management trusts that are leveraged by a local workforce
development board for training services described in paragraph
(3) of subdivision (a). This credit may be applied toward the
minimum training requirements in paragraphs (1) and (2) of
subdivision (a).

(A) Leveraged funds that may be applied toward the credit
allowed by this subdivision shall begin delete only end delete include the following:

(i) Federal Pell Grants established under Title IV of the federal
Higher Education Act of 1965 (20 U.S.C. Sec. 1070 et seq.).

(ii) Programs authorized by the federal Workforce Innovation
and Opportunity Act of 2014 (Public Law 113-128).

(iii) Trade adjustment assistance.

(iv) Department of Labor National Emergency Grants.

(v) Match funds from employers, industry, and industry
associations.

(vi) Match funds from joint labor-management trusts.

(vii) Employment training panel grants.

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(viii) Supportive services as defined by the federal Workforce
Innovation and Opportunity Act of 2014 (Public Law 113-128)
and the corresponding sections of the Code of Federal Regulations,
but only for those individuals enrolled in training services, as
defined in Section 3174(c)(3)(D) of Title 29 of the United States
Code and the corresponding sections of the Code of Federal
Regulations.

end insert begin insert

(ix) Temporary Assistance for Needy Families (TANF) funds
spent on supportive services, as defined by the federal Workforce
Innovation and Opportunity Act of 2014 (Public Law 113-128)
and the corresponding sections of the Code of Federal Regulations,
for TANF enrolled individuals coenrolled in and receiving training
services through the federal Workforce Innovation and Opportunity
Act of 2014.

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(x) Temporary Assistance for Needy Families (TANF) funds
spent on transitional and subsidized employment for TANF enrolled
individuals coenrolled in and receiving training services through
the federal Workforce Innovation and Opportunity Act of 2014.

end insert begin insert

(xi) Any other local, state, or federal funds spent on training or
supportive services for individuals enrolled in training provided
the individuals receiving the training are enrolled in the federal
Workforce Innovation and Opportunity Act of 2014 for
performance reporting and tracking purposes.

end insert begin insert

(xii) With the approval of the state board, any other public or
private funds source not identified in this subparagraph that is
used to provide training or supportive services for individuals who
are also enrolled in training provided the individuals receiving
the relevant services are enrolled in the federal Workforce
Innovation and Opportunity Act of 2014 for performance reporting
and tracking purposes.

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(B) Credit for leveraged funds shall only be given if the local
workforce development board keeps records of all training begin insert and
supportive services end insert expenditures it chooses to apply to the credit.
Training begin insert and supportive services end insert expenditures may only be applied
to the credit if the relevant begin delete training end delete costs can be independently
verified by the Employment Development Department begin delete and end delete begin insert and,
without exception, end insert training participants must be coenrolled in the
federal Workforce Innovation and Opportunity Act of 2014
performance monitoring system.

(2) The use of leveraged funds to partially meet the training
requirements specified in paragraphs (1) and (2) of subdivision
(a) is the prerogative of a local workforce development board.
Costs arising from the recordkeeping required to demonstrate
compliance with the leveraging requirements of this subdivision
are the responsibility of the local board.

(c) Beginning program year 2012, the Employment Development
Department shall calculate for each local workforce development
board, within six months after the end of the second program year
of the two-year period of availability for expenditure of federal
Workforce Innovation and Opportunity Act of 2014 funds, whether
the local workforce development board met the requirements of
subdivision (a). The Employment Development Department shall
provide to each local workforce development board its individual
calculations with respect to the expenditure requirements of
subdivision (a).

(d) A local workforce development area that does not meet the
requirements of subdivision (a) shall submit a corrective action
plan to the Employment Development Department that provides
reasons for not meeting the requirements and describes actions
taken to address the identified expenditure deficiencies. A local
workforce development area shall provide a corrective action plan
to the Employment Development Department pursuant to this
section within 90 days of receiving the calculations described in
subdivision (c).

(e) For the purpose of this section, “program year” has the same
meaning as provided in Section 667.100 of Title 20 of the Code
of Federal Regulations.

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SECTION 1.  

The heading of Article 3.5 (commencing with
Section 12035) of Chapter 1 of Part 2 of Division 3 of Title 2 of
the Government Code is repealed.

SEC. 2.  

Article 3.5 (commencing with Section 12035) is added
to Chapter 1 of Part 2 of Division 3 of Title 2 of the Government
Code, to read:

 

Article 3.5.  The Underground Economy

 

12035.  

(a) The Governor shall designate an independent chief
policy adviser for the underground economy.

(b) The adviser’s responsibilities shall include, but not be limited
to, the following:

(1) Monitoring the state’s existing underground economy task
forces and interagency partnerships to ensure that they are
organized efficiently.

(2) Evaluating whether any task forces and partnerships should
be eliminated or restructured to improve effectiveness.

(3) Evaluating whether existing task forces and partnerships
have sufficient resources and whether gaps or overlaps exist in
combating the underground economy.

(4) Reviewing enforcement staffing and funding levels and
developing recommendations to adequately fund enforcement.

(5) Developing recommendations to eliminate barriers that
prevent task forces and partnerships from being fully effective.

(6) Leading a strategic planning process to develop performance
outcomes for combating the underground economy.

(c) (1) On or before than January 1, 2017, the adviser shall
submit a report to the Governor and the Legislature that
summarizes the adviser’s findings and recommendations, with a
particular emphasis on any recommended administrative or
legislative changes.

(2) The report to be submitted pursuant to paragraph (1) shall
be submitted in compliance with Section 9795.

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