BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 2642


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       Date of Hearing:   April 19, 2019


          ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY


                                Eduardo Garcia, Chair


       AB 2642  
       (Eduardo Garcia) - As Amended April 12, 2016


       SUBJECT:  Removing Barriers to Employment Act


       SUMMARY:  Establishes the Breaking Barriers to Employment Initiative  
       for the purpose of assisting individuals who have multiple barriers to  
       employment to receive the remedial education and work readiness skills  
       that will help them to successfully participate in training,  
       apprenticeship, or employment opportunities that will lead to  
       self-sufficiency and economic stability.  Specifically, this bill: 


       1)Finds and declares, among other things, the following:


          a)   Although the California economy has demonstrated growth  
            through overall lower unemployment and higher job growth, poverty  
            is still an issue concentrated in many of our cities and among  
            many of our citizens.  The California Poverty Measure reported in  
            2015 that 78% of Californians in poverty live in families with at  
            least one adult working, with 69% of those individuals working  
            full time.  



          b)   With low wages and lack of job skills, this target population  
            falls further behind and cannot escape poverty.  There is a need  








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            for improved access and funding to provide "career pathway"  
            services, particularly for the poor.



          c)   Increased funding for services such as English language  
            improvement training, basic skills and adult education, high  
            school diploma and GED acquisition, skills training, work  
            experience, on-the-job training, mentoring, case management, and  
            more is needed to bridge the gap to gainful employment for these  
            particularly vulnerable populations.



          d)   Special emphasis is needed to make sure that programs reach  
            those among us with the most difficult needs with the goal of  
            preparing those persons for training, educational, apprenticeship  
            or employment opportunities.


       2)Establishes the Breaking Barriers Initiative within the Labor and  
         Workforce Development Agency for the purpose assisting individuals  
         who have multiple barriers to employment to receive the remedial  
         education and work readiness skills that will help them to  
         successfully participate in training, apprenticeship, or employment  
         opportunities.



       3)Authorizes the Secretary of Labor and Workforce Development  
         (Secretary) to assign all or part of the administration of the  
         initiative to one or more entities within the agency's oversight or  
         outside the agency's jurisdiction with the agreement of the state  
         entity to meeting the initiative's requirements.   



       4)Requires the Secretary to consult with public and private  
         stakeholders, including nonprofit community-based organizations,  








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         workforce development boards, local governments, and other entities  
         that serve individuals who face barriers to employment.



       5)Provides that initiative funding will be appropriated through the  
         budget act, as specified.  



       6)Requires the Secretary to develop criteria for the selection of  
         grant recipients that provides for:

          a)   Outreach and technical assistance to prospective applicants,  
            especially in rural and small population areas;

          b)   A competitive award process that addresses the need for a  
            range of targeted populations and geographic locations to receive  
            training opportunities;

          c)   No less than 90% of the funds being used for direct services  
            to the clients who face multiple barriers to employment; and

          d)   The lead community-based organization to demonstrate their  
            ability to successfully deliver previous programs to targeted  
            populations they are proposing to serve using the grant funds.

       7)Requires each application to have at least one lead workforce  
         investment board and one lead community-based organization. An  
         application that proposes to serve clients across one or more  
         workforce investment areas is required to either:

          a)   Document the existence of a current memorandum of  
            understanding with each workforce board within the proposed  
            service area; or

          b)   Provide a letter of acknowledgment from each workforce board  
            within the proposed service area. 









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       8)Provides that non-lead workforce development boards within the  
         service area are not required to have a role within the scope of the  
         application and that obtaining the letter of acknowledgement is the  
         responsibility of the lead workforce investment board.  
        
       9)Requires applicants to apply for funds to serve one or more targeted  
         populations in one or more neighborhoods, local jurisdictions,  
         regions, or statewide. Each application is required to explain how  
         the proposed training program or service is designed to complement  
         the work of, and integrate the individuals being served with, the  
         workforce development boards within the proposed service area.   
         Targeted populations include:

          a)   Youths who are disconnected from the education system or  
            employment;

          b)   Women seeking training or education to move into  
            nontraditional fields of employment;

          c)   Workers displaced by the movement of an employer or those who  
            are long-term unemployed;

          d)   Unskilled or under-skilled, low-earning workers looking to  
            advance into better-paying employment opportunities;

          e)   Persons for whom English is not their primary language;

          f)   Economically disadvantaged persons who face barriers to  
            reaching training or apprenticeship opportunities for sustainable  
            careers;

          g)   CalWORKS participants;

          h)   Persons who are incarcerated and soon to be released or  
            formerly incarcerated;

          i)   Armed services veterans who face barriers due to skills that  
            are not applicable to employment, training, apprenticeship  
            opportunities in the region in which they live, or because of  








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            mental health, health, or other barriers that serve as  
            impediments to those opportunities;

          j)   Native Americans or migrant, seasonal farmworkers; and

          aa)  People with developmental or other disabilities.

       10)Requires each grant proposal to explain the specific purpose of the  
         grant funds and define the general methodology and training methods  
         proposed to be used.

       11)Specifies that grant funding may be used for, but is not limited  
         to, English language improvement training, basic skills and adult  
         education, high school diploma and GED acquisition, skills training,  
         work experience, on-the-job training, earn-as-you-learn progams,  
         industry certifications, mentoring, and other remedial education and  
         work readiness skills.

       12)Requires the grant proposal to identify baseline criteria and  
         metrics by which the overall success of the grant program can be  
         evaluated. The proposal shall also explain the manner in which the  
         progress of the individuals participating in the program will be  
         monitored during the grant period.

       13)Establishes the following goals for the initiative:

          a)   Individuals who face multiple barriers to employment take  
            measureable steps to remediate education and workforce readiness  
            skills;

          b)   Partnerships between community-based organizations and  
            workforce development boards, community colleges, and other  
            providers of quality education and training are demonstratively  
            strengthened in ways that benefit their client's ability to  
            continue to access services and establish career pathways; and 

          c)   Community-based organizations increase their capacity to  
            achieve and measure results.









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       14)Requires grant proposals to include a pre-service education and  
         training assessment, which will form the baseline for measuring  
         program performance, consistent with the initiative goals. A prior  
         assessment may be used if, in the determination of the Secretary,  
         its results are accurate and appropriate for the grant proposal.

       15)Specifies that measurements of success are to be based on the  
         initiative goals, as relevant to the targeted population and  
         baseline measurements set through the individual client assessment.  
         These measurements may include, but are not limited to:

          a)   The number of participants in the program who have completed a  
            high school diploma or received a GED;

          b)   The number of participants in the program who have completed a  
            remedial education program;

          c)   The number of participants in the program who have completed a  
            work readiness program;

          d)   The number of participants who have completed a certified drug  
            treatment or mental health program;

          e)   The number of participants who have matriculated to a  
            pre-apprenticeship or apprenticeship program; and 

          f)   The number of participants who passed the Ability to Benefit  
            test and enrolled into an Adult Education-Career Pathway program,  
            as defined in USC section 484(d)(2)of the 1988 Amendment to the  
            Higher Education Act.

       16)Requires that key features of the grant be provided in a memorandum  
         of understanding between the lead applicants and the agency,  
         including, but not limited to, the purpose of the grant, expected  
         outcomes, the oversight and monitoring process, and reporting  
         requirements.

       17)Requires that, as a condition of receiving funds, a grant recipient  
         shall agree to provide information to the Secretary, as necessary to  








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         meet all reporting requirements.

       18)Requires grant recipients to report, at least on an annual basis,  
         and upon completion of the grant period regarding their use of  
         funds, workforce training outcomes, and any other information  
         required by the secretary.

       19)Requires the Secretary to post a report on the agency's Internet  
         Web site by January 1, 2018 that aggregates the information provided  
         by the grant recipients, including, but not limited to, the overall  
         success of the grant programs.

       20)Authorizes the Secretary to fund a  full-scale  project that uses a  
         model that was previously funded as a pilot project through the  
         Workforce Accelerator, the Supervised Population Workforce Training  
         Program, SlingShot, or other existing programs to the extent that  
         the goals, measures, and metrics are sufficiently aligned with the  
         initiative.  These core components include:

          a)   Serving the same client base;

          b)   Addressing the needs of individuals who face multiple barriers  
            to employment to receive remedial education and work readiness  
            skills;

          c)   Having an end goal of preparing those individuals for further  
            training that results in apprenticeship or middle-skill  
            employment opportunities; and

          d)   Having applications jointly filed with one or more workforce  
            investment boards and one or more community-based organizations  
            serving as the lead.



       EXISTING LAW establishes the Labor and Workforce Development Agency  
       (Agency) for the purpose of addressing issues relating to California  
       workers and their employers. The Agency is responsible for labor law  
       enforcement, workforce development, and benefit payment and  








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       adjudication. The Agency works to combat the underground economy and  
       help legitimate businesses and workers in California through a  
       combination of enforcement and education activities.  Departments and  
       other state entities under the Agency include:





       1)Agricultural Labor Relations Board; 



       2)The California Workforce Board;



       3)The Employment Development Department, including the Employment and  
         Employment-related Services Program and the National Dislocated  
         Workers Grant Program;



       4)Employment Training Panel;



       5)The Department of Industrial Relations, including the Division of  
         Apprenticeship Standards; and



       6)Public Employment Relations Board.



       FEDERAL EXISTING LAW










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       1)Authorizes the Workforce Innovation and Opportunity Act of 2014 for  
         the purpose of:



          a)   Increasing, for individuals in the US, access to and  
            opportunities for the employment, education, training, and  
            support services they need to succeed in the labor market,  
            particularly those individuals with barriers to employment.



          b)   Supporting the alignment of workforce investment, education,  
            and economic development systems in support of a comprehensive,  
            accessible, and high-quality workforce development system in the  
            US.



          c)   Improving the quality and labor market relevance of workforce  
            investment, education, and economic development efforts to  
            provide America's workers with the skills and credentials  
            necessary to secure and advance in employment with  
            family-sustaining wages and to provide America's employers with  
            the skilled workers the employers need to succeed in a global  
            economy.



          d)   Promoting improvement in the structure of and delivery of  
            services through the US workforce development system to better  
            address the employment and skill needs of workers, jobseekers,  
            and employers.



          e)   Increasing the prosperity of workers and employers in the US,  
            the economic growth of communities, regions, and States, and the  
            global competitiveness of the United States.








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          f)   Providing workforce investment activities, through statewide  
            and local workforce development systems, that increase the  
            employment, retention, and earnings of participants, and increase  
            attainment of recognized postsecondary credentials by  
            participants, and as a result, improve the quality of the  
            workforce, reduce welfare dependency, increase economic  
            self-sufficiency, meet the skill requirements of employers, and  
            enhance the productivity and competitiveness of the Nation.



       2)Defines an eligible career pathway program, pursuant to the federal  
         Higher Education Act, to mean a program that:

          a)   Concurrently enrolls participants in connected adult education  
            and eligible postsecondary programs;



          b)   Provides counseling and supportive services to identify and  
            attain academic and career goals; 



          c)   Provides structured course sequences that are articulated and  
            contextualized; and allow students to advance to higher levels of  
            education and employment;



          d)   Provides opportunities for acceleration to attain recognized  
            postsecondary credentials, including degrees, industry relevant  
            certifications, and certificates of completion of apprenticeship  
            programs;










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          e)   Is organized to meet the needs of adults;



          f)   Is aligned with the education and skill needs of the regional  
            economy; and



          g)   Has been developed and implemented in collaboration with  
            partners in business, workforce development, and economic  
            development.
       FISCAL EFFECT:  Unknown


       POLICY ISSUE FRAME


       In implementing the federal Workforce Innovation and Opportunity Act  
       of 2014, California has set aggressive new goals and objectives to  
       guide the state's workforce development system.  By 2027, California  
       is committed to producing one million "middle-skill" industry valued  
       and recognized postsecondary credentials and to double the number of  
       people enrolled in apprenticeship programs.


       Achieving this goal is important to California remaining competitive  
       within the global marketplace.  One of the key challenges, however,  
       are the current labor shortage for middle-skill jobs and the  
       significant number of workers who are not currently ready to take on  
       middle-skill training.  


       AB 2642 proposes a comprehensive initiative to assist the millions of  
       workers who currently face significant barriers to employment to  
       obtain the remedial education and work readiness skills necessary to  
       help the state meet its goals and to become financially secure and  
       independent.








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       The analysis includes background on the California economy, the  
       state's growing income inequality, and discussion on why it is  
       important to create new opportunities to assist individuals who face  
       barriers to employment into the workforce.  Amendments are discussed  
       in Comment #4 to further clarify the purpose and structure of the  
       Breaking Barriers to Employment initiative.


       COMMENTS: 


       1)The California Economy in the Future:  As California continues to  
         transition from the recession, businesses and workers face an  
         economy comprised of highly integrated industry sectors that are  
         also more geographically dispersed.  Advances in technology and  
         processes are occurring more rapidly.  This is resulting in  
         competitiveness being increasingly defined in terms of speed,  
         flexibility, specialization, and innovation.  



        -------------------------------------------------------------- 
       | |    Key Economic Trends Affecting the California Economy    |
       |-+------------------------------------------------------------|
       |1|Cities and regions will become more dominant economic       |
       | |players.                                                    |
       | |                                                            |
       | |                                                            |
       |-+------------------------------------------------------------|
       |2|Global networks will be supported through more advanced     |
       | |information and transportation technologies.                |
       | |                                                            |
       | |                                                            |
       |-+------------------------------------------------------------|
       |3|Barriers to trade will continue to decline among both       |
       | |developed and emerging economies.                           |
       | |                                                            |








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       | |                                                            |
       |-+------------------------------------------------------------|
       |4|The world's largest companies will increasingly be          |
       | |headquartered in emerging foreign markets.                  |
       | |                                                            |
       | |                                                            |
       |-+------------------------------------------------------------|
       |5|Global and more diversified markets will provide new        |
       | |opportunities for entrepreneurs and smaller size            |
       | |businesses.                                                 |
       | |                                                            |
       | |                                                            |
       |-+------------------------------------------------------------|
       |6|Scarcity and rising prices will increase pressure on the    |
       | |development and deployment of cleaner technologies.         |
       | |                                                            |
       | |                                                            |
       |-+------------------------------------------------------------|
       |7|Deepening income inequality will result in costly outcomes, |
       | |most adversely affecting women, minorities, immigrants, the |
       | |disabled, and the formerly incarcerated, and thus require   |
       | |the diversion of public resources to address unemployment,  |
       | |poverty, and social unrest.                                 |
       | |                                                            |
       | |                                                            |
       |-+------------------------------------------------------------|
       |8|The retirement of Boomers will place an even greater need   |
       | |for middle- and high-skilled workers.                       |
       | |                                                            |
       | |                                                            |
       |-+------------------------------------------------------------|
       |9|The U.S workforce will be smaller, more ethnically          |
       | |diversified, and have educational backgrounds that are      |
       | |lower than many other developed economies.                  |
       | |                                                            |
       | |                                                            |
        -------------------------------------------------------------- 
        -------------------------------------------------------------- 
       | Source:  Researched and compiled from various sources by the |








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       |    Assembly Committee on Jobs, Economic Development, and the |
       |                                                       Economy|
       |                                                              |
       |                                                              |
        -------------------------------------------------------------- 

         Economists have identified nine key trends (see chart) that will  
         most influence the U.S. and California economies.  Several of these  
         trends place new and demanding challenges on California's training  
         and workforce system.

         Advances in information technology, advanced manufacturing, complex  
         logistical networks, and the need to have more environmentally  
         sustainable products are just a few of the new workforce realities.  
         Even entry-level workers will be expected to have important soft  
         skills, such as the ability to work in teams, actively listen,  
         communicate effectively with co-workers and bosses, and be able to  
         negotiate workplace needs in a positive manner.  Unlike hard skills,  
         which are about a person's ability to perform a certain task or  
         activity, soft skills provide the tools necessary to learn and  
         advance in the state's continually evolving workplace environment.
                                                                  
         The modern economy has also given rise to a growing need for smaller  
         businesses because of their ability to provide innovative  
         technologies and help other businesses access global markets.  While  
         vital economic players, small businesses and entrepreneurs face  
         unique challenges in competing in an increasingly global and  
         interconnected marketplace.  Programs and services which may have  
         been designed to serve large companies may need to be retooled to  
         better serve the nearly 90% of businesses that have less than 20  
         employees.  These small and adaptable businesses will have an  
         inherent advantage in the post-recession economy, provided they are  
         able to obtain the skillsets necessary to run a successful business  
         and have access to appropriately trained workers. 

         Another key economic trend is the rising importance of regional  
         economies as one of the primary drivers of economic growth.  The  
         economic foundation of many strong regional economies are  
         innovation-based industry clusters which have the ability to support  








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         high-paying jobs, lucrative career ladders, and longer term job  
         stability.  Economic researchers have shown that industry clusters  
         rise in areas where local universities, research labs, and competing  
         businesses within the same industry provide a critical mass of  
         skilled workers.  Though the economic composition of regions may  
         differ in California, each region has strengths and weaknesses.  The  
         effective identification and cultivation of these industry strengths  
         will factor heavily on the future economic success of California's  
         regional economies.

         All these changes are occurring at the same time that California and  
         the U.S. confront the social, cultural, and economic impacts of  
         demographic change.  The U.S. Census Bureau projects that by 2043 a  
         majority of the U.S. population will be comprised of people of  
         color.  In 2014, people of color were already the majority in  
         California, Hawaii, New Mexico, and Texas, with another nine states  
         were close to 50%.  The growing diversity within the workforce also  
         represents a significant generational shift of the predominantly  
         white baby boomers rapidly aging-out of workplace.   

         Many of these new market realities are already coming to fruition  
         and, for now, California's workforce is underprepared to meet these  
         demands.  Decades of underinvestment in public education,  
         afterschool programs, and continuing education programs that feed  
         into career pathways to the state's dominant and emerging industry  
         sectors directly threaten the state's competitiveness.  There are  
         still numerous unemployed and underemployed workers in California,  
         while simultaneously, there are businesses reporting that they are  
         unable to find qualified workers to fill empty positions.  Strong  
         early education programs, career technology pathways, accessible  
         higher education, and effective and timely workforce development  
         programs are essential to equipping California workers with the  
         skillsets that are in demand.   

       2)Income Disparities:  California's overall economic growth and  
         increase in jobs has outpaced the U.S. in general, often ranking the  
         state within the top five states in terms of its economic condition.  
          This success, however, has not been consistent throughout the state  
         with many regions and certain population groups still experiencing  








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         recession-related poor economic conditions.  

         According to the U.S. Census Bureau, California's poverty rate is  
         16.4% as compared to a national rate of 15.6%.  It is estimated that  
         nearly a quarter of California's children (22.7%) are living in  
         households with annual incomes below the federal poverty line.   
         Contributing factors to these poverty rates are stagnate wage rates,  
         an increasing concentration of annual income among the highest  
         income earning individuals, and differing job opportunities in the  
         post-recession economy.  

         A review of the most recent unemployment numbers in the chart below  
         illustrates this expanding pattern of economic disparity between  
         regions and population groups in California.  




          ------------------------------------------------------------- 
         |    Unemployment February 2016 (not seasonally adjusted)     |
          ------------------------------------------------------------- 
         |---------------+---------------+-+---------------+-------------|
         |               | Unemployment  | |               |Unemployment |
         |               |     Rate      | |               |    Rate     |
         |---------------+---------------+-+---------------+-------------|
         |California     |     5.7%      | |California     |    5.7%     |
         |---------------+---------------+-+---------------+-------------|
         |Colusa County  |     21.6%     | |Blacks         |    10.8%    |
         |               |               | |               |             |
         |               |               | |               |             |
         |---------------+---------------+-+---------------+-------------|
         |Imperial       |     18.6%     | |Hispanics      |    7.4%     |
         |County         |               | |               |             |
         |               |               | |               |             |
         |---------------+---------------+-+---------------+-------------|
         |Los Angeles    |     5.5%      | |Whites         |    5.8%     |
         |County         |               | |               |             |
         |               |               | |               |             |
         |---------------+---------------+-+---------------+-------------|








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         |Orange County  |     4.0%      | |16 to 19 year  |    20.5%    |
         |               |               | |olds           |             |
         |               |               | |               |             |
         |               |               | |               |             |
         |---------------+---------------+-+---------------+-------------|
         |Riverside      |     5.9%      | |20 to 24 year  |    10.9%    |
         |County         |               | |olds           |             |
         |               |               | |               |             |
         |               |               | |               |             |
         |---------------+---------------+-+---------------+-------------|
         |San Bernardino |     5.6%      | |25 to 34 year  |    6.2%     |
         |County         |               | |olds           |             |
         |               |               | |               |             |
         |               |               | |               |             |
          --------------------------------------------------------------- 
          -------------------------------------------------------------- 
         |San Mateo      |     3.0%      | |                            |
         |County         |               | |                            |
         |               |               | |Source:  California         |
         |               |               | |Employment Development      |
         |               |               | |Department                  |
          -------------------------------------------------------------- 
         |Tulare County  |     12.1%     | |                            |
         |---------------+---------------+-+----------------------------|
         |Ventura County |     5.1%      | |                            |
         |               |               | |                            |
         |               |               | |                            |
         |               |               | |                            |
          -------------------------------------------------------------- 



         While the state's unemployment rate for February 2016 (not  
         seasonally adjusted) was 5.7%, some areas of the state had lower  
         rates, while others were considerably higher.  San Mateo County  
         recorded the lowest at 3.0% and Colusa County experienced the  
         highest unemployment rate at 21.6%.  For the first time in more than  
         a year, Imperial County did not have the highest unemployment rate  
         in the state.  Inland areas generally reported unemployment rates  








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         above the statewide average.  As the chart above shows, Tulare  
         County's unemployment rate was 12.1% and Riverside County was  
         recorded as 5.9%.  Coastal areas overall had lower rates than the  
         state's, with Orange County at 4.0%, Los Angeles County at 5.5%, and  
         Ventura County at 5.1%.  Under the federal Workforce Innovation and  
         Opportunity Act, high unemployment is considered any rate above  
         6.5%.

         Looking more specifically at different population groups, the data  
         also shows the great discrepancies between the statewide rate and  
         key subgroups, including unemployment among Blacks and Hispanics  
         being 10.8% and 7.4% respectively.  For the youngest members of the  
         workforce obtaining quality jobs remains a significant issue, with  
         unemployment among 16 to 24 years being well above the state  
         average, ranging from 20.5% to 10.9%.  According to February's  
         figures, one-in-five of California's next generation of workers is  
         unemployed.

         Just as the unemployment data shows the growing economic disparities  
         by geography, race/ethnicity, and age, research also confirms that a  
         greater percentage of total aggregate earnings are going to a  
         smaller group of individuals.  According to the World Top Income  
         Database, pretax income among those with the highest 1% of income in  
         California comprised 9.82% of total income in 1980 and 25.31% in  
         2013.  These findings could signal a larger issue in that a growing  
         body of economic studies show that large-scale income disparities  
         correlate to shorter periods of economic growth, whereas societies  
         with lower levels of income disparity have larger and longer-term  
         periods of growth.   

         Achieving job growth within globally competitive industries and  
         addressing the state's growing income disparities may require  
         different community and economic development approaches, as well as  
         more coordinated efforts by industry, labor, nonprofits, and  
         government on a range of issues, including education, workforce  
         training, infrastructure repair and expansion, entrepreneurship, and  
         finance, among others.   










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       3)Creating On-Ramps to Success:  The federal Workforce Innovation and  
         Opportunity Act of 2014 represents the most significant shift in  
         federal workforce policy in several decades.  Among other  
         requirements, the act mandates that the state develop a plan for  
         making workforce investments, set goals, and report on their  
         progress. Future federal funding will be dependent on the state  
         meeting established milestones leading to these goals.  



         California's Unified Strategic Workforce Development Plan (State  
         Plan) outlines a comprehensive four-year strategy for investing  
         federal workforce training and employment service dollars in a  
         manner that aligns and coordinates six core Workforce Innovation and  
         Opportunity Act funded programs.  The state goal (2017 through 2027)  
         is to produce one million "middle-skill" industry valued and  
         recognized postsecondary credentials.  In meeting this goal, the  
         State Plan anticipates doubling the number of people enrolled in  
         apprenticeship programs.





         While certainly a laudable goal to guide the state's workforce  
         investment system, achieving those goals will be challenging.  Key  
         among those challenges is the significant number of workers who are  
         not currently ready to take on middle-skill training.  In 2012,  
         there were 1.9 million unfilled middle skill jobs.  This number is  
         expected to grow as one-third of middle skill workers retire over  
         the next ten years.





         AB 2642 establishes the Breaking Barriers to Employment initiative,  
         administered through the Labor and Workforce Development Agency, to  








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         provide a framework for one or more competitive grant programs.   
         Moneys awarded through this initiative will help to operationalize  
         an innovative model of collaboration between two important workforce  
         partners for the benefit of populations that routinely face barriers  
         to employment. 





         The program's targeted populations include, but are not limited to,  
         veterans, unskilled and low-skilled workers, out-of-school youth,  
         foster youth, long-term unemployed, individuals with developmental  
         and other disabilities, Native Americans, formerly incarcerated  
         individuals, farmworkers, and other economically disadvantaged  
         individuals.





         The Breaking Barriers model is designed to leverage the experience  
         of community-based organizations to work with targeted populations  
         to remediate education and workforce readiness skills and to  
         collaborate with workforce boards to transition clients to career  
         pathways and sector strategies developed by local workforce boards.  
         The authors believe that the initiative will create a career on-ramp  
         for groups that have been historically disconnected from traditional  
         programs.  





         AB 2642 builds upon key objectives in the State Plan by assisting  
         individuals to obtain the fundamental skills necessary to prepare  
         for work in high priority industries, leverage multiple services to  
         meet a worker's individual needs, and target people who face  
         systemic barriers to employment.








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       4)Amendments:  Staff understands that the author will offer amendments  
         to:



          a)   Add legislative intent to clarify that there are multiple  
            career pathways that have been developed by the state, federal,  
            and tribal governments, as well as community based organizations;



          b)   Add vocational training, entrepreneurship training, stipends  
            for trainees, and pre-apprenticeship programs to the list of  
            eligible activities for grants;



          c)   Clarify that direct services includes staffing to provide  
            those direct services;



          d)   Modify the deadline for documenting notification of non-lead  
            workforce development boards from the time the application is  
            submitted to prior to the signing of the grant agreement;



          e)   Clarify that either or both of the lead community-based  
            organization or  the lead workforce development board may submit  
            the application;











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          f)   Remove unnecessary descriptors for the targeted populations;



          g)   Change the name of the grant contract from "memorandum of  
            understanding" to "grant agreement";



          h)   Clarify that in the first year of the initiative, the  
            Secretary will provide a status report on the implementation of  
            the grant; and



          i)   Make other technical and conforming changes.



       3)Related Legislation:  Below is a list of the related bills.



          a)   AB 80 (Campos) Interagency Task Force on the Status of Boys  
            and Men:  This bill would have established a 20-member  
            Interagency Task Force on the Status of Boys and Men of Color.  
            Issues to be addressed by the Task Force would include, but not  
            be limited to, employment and wealth creation, health and safety,  
            education, and juvenile justice.  Status:  Vetoed by the  
            Governor, 2015.  Governor's Veto Message: How state policy can be  
            tailored to promote the well-being of boys and men of color is  
            profoundly important.  These issues, however, are best addressed  
            through concrete actions, not another non-binding commission.   
            The Legislature and the Administration are working on the  
            critical issues raised by this bill, such as the Local Control  
            Funding Formula, healthcare expansion and criminal justice  
            reform.  Much more can be done, and I am committed to advancing  
            this work.









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          b)   AB 288 (Holden) College and Career Pathways:  This bill  
            authorizes the governing board of a community college district to  
            enter into a College and Career Access Pathways (CCAP)  
            partnership with the governing board of a school district within  
            its immediate service area, as specified, to offer or expand dual  
            enrollment opportunities for students who may not already be  
            college bound or who are underrepresented in higher education.   
            The goal of the agreements is to develop seamless pathways for  
            students from high school to community college for  
            career-technical education or preparation for transfer, improve  
            high school graduation rates, or help high school pupils achieve  
            college and career readiness.  The bill includes specific  
            conditions which must be met prior to the adoption of such an  
            agreement.  The authority in this measure sunsets on January 1,  
            2022.  Status:  Signed by the Governor, Chapter 618, Statutes of  
            2015.



          c)   AB 931 (Irwin) New Hire Tax Credit:  This bill would have  
            expanded the definition of the term "qualified full-time  
            employee" under the new hire tax credit to include a veteran who  
            has separated from service in the U.S. Armed Forces within the 36  
            months preceding commencement of employment with a qualified  
            taxpayer.  Status:  Vetoed by the Governor, 2015.  Governor's  
            Veto Message:  Despite strong revenue performance over the past  
            few years, the state's budget has remained precariously balanced  
            due to unexpected costs and the provision of new services. Now,  
            without the extension of the managed care organization tax that I  
            called for in special session, next year's budget faces the  
            prospect of over $1 billion in cuts.  Given these financial  
            uncertainties, I cannot support providing additional tax credits  
            that will make balancing the state's budget even more difficult.  
            Tax credits, like new spending on programs, need to be considered  
            comprehensively as part of the budget deliberations.










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          d)   AB 1058 (Atkins) Second Chance Program:  This bill establishes  
            the Second Chance Program under the administrative direction of  
            the Department of Corrections for the purpose of investing in  
            community-based programs, services, and initiatives for formerly  
            incarcerated individuals in need of mental health and substance  
            use treatment services.  The grant program will be funded through  
            the savings resulting from the implementation of Proposition 47,  
            the Safe Neighborhoods and Schools Act of 2014, and other  
            specified sources.  The bill also extends the sunset on the  
            Social Innovation Financing Program until 2022.  Status:  Signed  
            by the Governor, Chapter 748, Statutes of 2015.



          e)   AB 1093 (E. Garcia) Supervised Population Workforce Training  
            Grant Program:  This bill expedites the allocation of funding  
            under the existing Supervised Population Workforce Training Grant  
            Program, which is administered through the California Workforce  
            Development Board.  Status:  Signed by the Governor, Chapter 220,  
            Statutes of 2015.  In addition, $1.5 million was authorized in  
            the 2015-16 Budget for additional funding rounds.



          f)   AB 1270 (E. Garcia) California Workforce Innovation and  
            Opportunity Act:  This bill aligns California statute with the  
            new requirements of the federal Workforce Innovation and  
            Opportunity Act of 2014.  The bill sets the foundation for policy  
            changes in 2016 through SB 45 (Mendoza).  Status:  Signed by the  
            Governor, Chapter 94, Statutes of 2015.
       


       REGISTERED SUPPORT / OPPOSITION:












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       Support

       California Workforce Association (sponsor)
       Association of Regional Center Agencies
       California Association of Local Conservation Corps
       National Association of Social Workers
       San Bernardino County
       SIATech California

       Opposition

       None Received


       Analysis Prepared by:Toni Symonds / J., E.D., & E. / (916) 319-2090