BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2532


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          ASSEMBLY THIRD READING


          AB  
          2532 (Chiu)


          As Introduced  February 19, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Labor           |6-1  |Roger Hernández, Chu, |Patterson           |
          |                |     |Linder, McCarty,      |                    |
          |                |     |O'Donnell, Thurmond   |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |15-5 |Gonzalez, Bloom,      |Bigelow, Gallagher, |
          |                |     |Bonilla, Bonta,       |Jones, Obernolte,   |
          |                |     |Calderon, Chang,      |Wagner              |
          |                |     |Daly, Eggman, Eduardo |                    |
          |                |     |Garcia, McCarty,      |                    |
          |                |     |Holden, Quirk,        |                    |
          |                |     |Santiago, Weber, Wood |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  










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          1)Repeals the verification requirement of an individual's legal  
            status or authorization to work prior to providing employment  
            services by state or local government agency's or any private  
            organization contracting with the those agencies that provide  
            employment services. 


          2)Repeals the specified workplace posting requirement for  
            employment services being provided by the agencies.   


          EXISTING LAW: 


          1)Requires each state or local government agency or community  
            action agency, or any private organization contracting with a  
            state or local government agency, that provides specified  
            employment services to verify an individual's legal status or  
            authorization to work prior to providing services to that  
            individual in accordance with procedures established under  
            federal law. 
          2)Specifies that proof of legal status or authorization to work  
            includes specified documents providing evidence of legal  
            residence or authorization to work in the United States  
            (U.S.).  It also exempts employment services offered by school  
            districts under secondary school and adult education programs  
            from provisions requiring verification of an individual's  
            legal status or authorization to work prior to providing  
            services. 


          3)Requires each state or local government agency or community  
            action agency, or any private organization contracting with a  
            state or local government agency, that provides specified  
            employment services to post in a prominent location in the  
            workplace a notice stating that only citizens or those persons  
            legally authorized to work in the U.S. will be permitted to  








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            use the agency's or organization's employment services that  
            are funded by the federal or state government, as specified.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, minor/absorbable costs to the Employee Development  
          Department (EDD) to update current policies, processes and  
          manuals.  EDD indicates removing the requirement to verify legal  
          status and authorization to work before providing a  
          staff-assisted service would simplify and streamline the intake  
          process, which would save time for front line staff in the EDD's  
          America's Job Center of California offices.



          COMMENTS:  According to the EDD Web site, California's workforce  
          services, a part of the U.S. Employment Service, is one of the  
          world's largest public employment service operations.  With  
          service points throughout the state, the EDD program serves the  
          state's employers and job seekers.  The nationwide U.S.  
          Employment Service was authorized by the federal Wagner Peyser  
          Act (WPA) in 1933 and funded under Title III of the Social  
          Security Act of 1935.  The WPA was amended by the Workforce  
          Innovation and Opportunity Act of 2014 to provide a foundation  
          for the Workforce Services and other federal, state, and local  
          workforce development partners to offer services through the  
          America's Job Center of California (AJCC). 


          The AJCC's offer a variety of services that bring employers with  
          job openings together with qualified job seekers.  Customers may  
          access services through self-service or with the assistance of  
          staff.  The AJCC provides universal access to an integrated  
          array of labor exchange and Workforce Innovation and Opportunity  
          Act (WIOA) services so that workers, job seekers, and businesses  
          can find the services they need at any of the job centers.  The  
          AJCC serves the State's 900,000 employers and the more than a  
          million job seekers who use these services each year. 









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          Currently, California law requires that EDD verify a job  
          seeker's legal status and authorization to work in the U.S.  
          prior to providing an employment-related service.  The  
          requirement applies to all employment service applicants,  
          whether or not they are U.S. citizens, temporary or resident  
          aliens, residing in or outside of California.


          Should this bill get enacted, under federal law, EDD would still  
          be required to ask each client to indicate eligibility to work  
          in the U.S. prior to providing job training and placement  
          services; however, it does not require agencies to verify an  
          individual's legal status to work prior to providing employment  
          services.  



          The Immigration Reform and Control Act (IRCA) of 1986 


          IRCA was passed in order to control and deter unlawful  
          immigration to the U.S.  Its major provisions stipulated  
          legalization of undocumented persons who had been continuously  
          unlawfully present since 1982, legalization of certain  
          agricultural workers sanctions for employers who knowingly hire  
          undocumented workers, and increased enforcement at U.S. borders.  
           IRCA required employers to attest to their employees'  
          immigration status, through the establishment of the I-9 Form;  
          IRCA made it illegal to hire or recruit undocumented workers  
          knowingly, among other things.  IRCA permits employers to rely  
          on a good faith belief in the proof of work authorization an  
          applicant offers.


          In general IRCA also states it is unlawful for a person or other  
          entity to hire, to recruit or refer for a fee, for employment in  
          the United States an unauthorized person knowing the person is  
          an unauthorized worker with respect to employment or without  
          complying with the verification requirements.  IRCA does not  








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          require agencies to verify an individual's legal status to work  
          prior to providing employment services.  


          Arguments in Support

          The sponsor of this measure, the Mexican American Legal Defense  
          and Educational Fund (MALDEF), argues the two Unemployment  
          Insurance provisions (UIC) this bill repeals impose an  
          unnecessary and redundant burden on businesses providing  
          employment services.  Regulation of employment for immigrants is  
          already covered in federal law so any additional state  
          requirements place added costs on businesses.  They further  
          argue that by repealing the two UIC sections would do nothing to  
          change immigrant eligibility for any government services which  
          is regulated by other provisions of federal and state law.  Nor  
          would the bill change the federal obligation that employers face  
          with respect to employment of authorized workers and the duty to  
          check work authorization of new hires.




          No opposition on file.


          Analysis Prepared by:                                             
                          Lorie Alvarez / L. & E. / (916) 319-2091  FN:  
          0002841


















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