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:
AB 2642
Page 25
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