Amended in Assembly March 29, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2719

Introduced by Assembly Member Eduardo Garcia

(Principal coauthor: Senator Hueso)

February 19, 2016

An act to amend Sections 14005, 14013, 14200, 14221, 14230, begin delete 14231, end delete and 14510 of the Unemployment Insurance Code, relating to workforce development.

LEGISLATIVE COUNSEL’S DIGEST

AB 2719, as amended, Eduardo Garcia. Workforce development: out of school youth.

The federal Workforce Innovation and Opportunity Act of 2014 provides for workforce investment activities, including activities in which states may participate. The California Workforce Innovation and Opportunity Act of 2014 (state act) establishes the California Workforce Development Board, which is responsible for assisting the Governor in the development and continuous improvement of California’s workforce investment system. The state act also contains various programs for job training and employment investment, as specified. The state act requires the board to assist the Governor in helping individuals with barriers to employment achieve economic security and upward mobility by implementing policies that encourage the attainment of marketable skills relevant to current labor market trends. The state act defines an individual with employment barriers to include youths who are individuals with disabilities, homeless youths, and youth who are in, or who have aged out of, the foster care system.

This bill would include within the definition of an individual with employment barriers an out of school youth, as defined, would revise the duties of the board regarding out of school youth, as specified, and would define local workforce development system stakeholders, as specified.

Existing law requires the local chief elected officials in a local workforce development area to form, pursuant to specified guidelines, a local workforce development board to, among other things, plan and oversee the workforce development system and develop a comprehensive 4-year local plan. Existing law requires the Governor to establish, through the California Workforce Development Board, standards for certification of high-performance local workforce investment boards, in accordance with specified criteria. begin delete Existing law requires each local workforce development board to establish with specified partners at least one full service one-stop career center in the local workforce development area to provide jobseekers with integrated employment, education, training, and job search services. end delete begin insert Existing law provides that school districts and county offices of education are eligible to apply to local workforce development boards to provide basic skills training and skills necessary for attaining a secondary school diploma. end insert

This bill would revise the criteria to include references to out of school youth, as specified, and require the local plan to include an analysis of education programs available for out of school youth, as specified. begin delete The bill would also require local partners of the one-stop center to include programs that serve out of school youth through exclusive partnerships between secondary schools and specified entities or programs. end delete By increasing the duties of local officials, this bill would impose a state-mandated local program. begin insert The bill would instead provide that school districts, county offices of education, and secondary schools that provide instruction exclusively in partnership with specified programs are eligible to apply to local workforce development boards to provide basic skills training and skills necessary for attaining a secondary school diploma, as specified. end insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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

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

SECTION 1.  

Section 14005 of the Unemployment Insurance
Code is amended to read:

14005.  

For purposes of this division:

(a) “Board” means the California Workforce Development
Board.

(b) “Agency” means the Labor and Workforce Development
Agency.

(c) “Career pathways,” “career ladders,” or “career lattices” are
an identified series of positions, work experiences, or educational
benchmarks or credentials with multiple access points that offer
occupational and financial advancement within a specified career
field or related fields over time. “Career pathways,” “career
ladders,” and “career lattices” offer combined programs of rigorous
and high-quality education, training, and other services that do all
of the following:

(1) Align with the skill needs of industries in the economy of
the state or regional economy involved.

(2) Prepare an individual to be successful in any of a full range
of secondary or postsecondary education options, including
apprenticeships registered under the National Apprenticeship Act
of 1937 (29 U.S.C. Sec. 50 et seq.), except as in Section 3226 of
Title 29 of the United States Code.

(3) Include counseling to support an individual in achieving the
individual’s education and career goals.

(4) Include, as appropriate, education offered concurrently with
and in the same context as workforce preparation activities and
training for a specific occupation or occupational cluster.

(5) Organize education, training, and other services to meet the
particular needs of an individual in a manner that accelerates the
educational and career advancement of the individual to the extent
practicable.

(6) Enable an individual to attain a secondary school diploma
or its recognized equivalent, and at least one recognized
postsecondary credential.

(7) Help an individual enter or advance within a specific
occupation or occupational cluster.

(d) “Cluster-based sector strategies” mean methods of focusing
workforce and economic development on those sectors that have
demonstrated a capacity for economic growth and job creation in
a particular geographic area.

(e) “Data driven” means a process of making decisions about
investments and policies based on systematic analysis of data,
which may include data pertaining to labor markets.

(f) “Economic security” means, with respect to a worker, earning
a wage sufficient to support a family adequately, and, over time,
to save for emergency expenses and adequate retirement income,
based on factors such as household size, the cost of living in the
worker’s community, and other factors that may vary by region.

(g) “Evidence-based” means making use of policy research as
a basis for determining best policy practices. Evidence-based
policymakers adopt policies that research has shown to produce
positive outcomes, in a variety of settings, for a variety of
populations over time. Successful, evidence-based programs deliver
quantifiable and sustainable results. Evidence-based practices
differ from approaches that are based on tradition, belief,
convention, or anecdotal evidence.

(h) “High-priority occupations” mean occupations that have a
significant presence in a targeted industry sector or industry cluster,
are in demand, or projected to be in demand, by employers, and
pay or lead to payment of a wage that provides economic security.

(i) (1) “In-demand industry sector or occupation” means either
of the following:

(A) An industry sector that has a substantial current or potential
impact, including through jobs that lead to economic
self-sufficiency and opportunities for advancement, on the state,
regional, or local economy, as appropriate, and that contributes to
the growth or stability of other supporting businesses, or the growth
of other industry sectors.

(B) An occupation that currently has or is projected to have a
number of positions, including positions that lead to economic
self-sufficiency and opportunities for advancement, in an industry
sector so as to have a significant impact on the state, regional, or
local economy, as appropriate.

(2) The determination of whether an industry sector or
occupation is “in-demand” under this subdivision shall be made
by the board or local board, or through the regional planning
process in which local boards participate under the Workforce
Innovation and Opportunity Act, as appropriate, using state and
regional business and labor market projections, including the use
of labor market information.

(j) “Individual with employment barriers” means an individual
with any characteristic that substantially limits an individual’s
ability to obtain employment, including indicators of poor work
history, lack of work experience, or access to employment in
nontraditional occupations, long-term unemployment, lack of
educational or occupational skills attainment, dislocation from
high-wage and high-benefit employment, low levels of literacy or
English proficiency, disability status, or welfare dependency,
including members of all of the following groups:

(1) Displaced homemakers.

(2) Low-income individuals.

(3) Indians, Alaska Natives, and Native Hawaiians, as those
terms are defined in Section 3221 of Title 29 of the United States
Code.

(4) Individuals with disabilities, including youths who are
individuals with disabilities.

(5) Older individuals.

(6) Ex-offenders.

(7) Homeless individuals, as defined in Section 14043e-2(6) of
Title 42 of the United States Code, or homeless children and
youths, as defined in Section 11434a(2) of Title 42 of the United
States Code.

(8) Youth who are in, or have aged out of, the foster care system.

(9) Individuals who are English language learners, individuals
who have low levels of literacy, and individuals facing substantial
cultural barriers.

(10) Eligible migrant and seasonal farmworkers, as defined in
Section 3322(i) of Title 29 of the United States Code.

(11) Individuals within two years of exhausting lifetime
eligibility under Part A of Title IV of the Social Security Act (42
U.S.C. Sec. 601 et seq.).

(12) Single parents, including single, pregnant women.

(13) Long-term unemployed individuals.

(14) Out of school youth.

(15) Any other groups as the Governor determines to have
barriers to employment.

(k) “Industry cluster” means a geographic concentration or
emerging concentration of interdependent industries with direct
service, supplier, and research relationships, or independent
industries that share common resources in a given regional
economy or labor market. An industry cluster is a group of
employers closely linked by common product or services,
workforce needs, similar technologies, and supply chains in a given
regional economy or labor market.

(l) “Industry or sector partnership” means a workforce
collaborative, convened or acting in partnership with the board or
a local board, that does the following:

(1) Organizes key stakeholders in an industry cluster into a
working group that focuses on the shared goals and human
resources needs of the industry cluster and that includes, at the
appropriate stages of development of the partnership:

(A) Representatives of multiple businesses or other employers
in the industry cluster, including small and medium-sized
employers when practicable.

(B) One or more representatives of a recognized state labor
organization or central labor council, or another labor
representative, as appropriate.

(C) One or more representatives of an institution of higher
education with, or another provider of, education or training
programs that support the industry cluster.

(2) The workforce collaborative may include representatives of
any of the following:

(A) State or local government.

(B) State or local economic development agencies.

(C) State boards or local boards, as appropriate.

(D) A state workforce agency or entity providing employment
services.

(E) Other state or local agencies.

(F) Business or trade associations.

(G) Economic development organizations.

(H) Nonprofit organizations, community-based organizations,
or intermediaries.

(I) Philanthropic associations.

(J) Industry associations.

(K) Other organizations, as determined to be necessary by the
members comprising the industry sector or partnership.

(m) “Industry sector” means those firms that produce similar
products or provide similar services using somewhat similar
business processes, and are closely linked by workforce needs,
within a regional labor market.

(n) “Local labor federation” means a central labor council that
is an organization of local unions affiliated with the California
Labor Federation or a local building and construction trades council
affiliated with the State Building and Construction Trades Council
of California.

(o) “Sector strategies” means methods of prioritizing
investments in competitive and emerging industry sectors and
industry clusters on the basis of labor market and other economic
data indicating strategic growth potential, especially with regard
to jobs and income, and exhibit the following characteristics:

(1) Focus workforce investment in education and workforce
training programs that are likely to lead to jobs providing economic
security or to an entry-level job with a well-articulated career
pathway into a job providing economic security.

(2) Effectively boost labor productivity or reduce business
barriers to growth and expansion stemming from workforce supply
problems, including skills gaps and occupational shortages by
directing resources and making investments to plug skills gaps
and provide education and training programs for high-priority
occupations.

(3) May be implemented using articulated career pathways or
lattices and a system of stackable credentials.

(4) May target underserved communities, disconnected youths,
incumbent workers, and recently separated military veterans.

(5) Frequently are implemented using industry or sector
partnerships.

(6) Typically are implemented at the regional level where sector
firms, those employers described in subdivisions (j) and (l), often
share a common labor market and supply chains. However, sector
strategies may also be implemented at the state or local level
depending on sector needs and labor market conditions.

(p) “Workforce Innovation and Opportunity Act of 2014” means
the federal act enacted as Public Law 113-128.

(q) (1) “Earn and learn” includes, but is not limited to, a
program that does either of the following:

(A) Combines applied learning in a workplace setting with
compensation allowing workers or students to gain work experience
and secure a wage as they develop skills and competencies directly
relevant to the occupation or career for which they are preparing.

(B) Brings together classroom instruction with on-the-job
training to combine both formal instruction and actual paid work
experience.

(2) “Earn and learn” programs include, but are not limited to,
all of the following:

(A) Apprenticeships.

(B) Preapprenticeships.

(C) Incumbent worker training.

(D) Transitional and subsidized employment, particularly for
individuals with barriers to employment.

(E) Paid internships and externships.

(F) Project-based compensated learning.

(r) “Out of school youth” means an individual who is 16 years
of age or older, but not more than 24 years of age and is a school
dropout or is within the age of compulsory school attendance, but
has not attended school for at least the most recent 90 days of the
school calendar or otherwise meets the definition in Section
3164(a)(1)(B) of Title 29 of the United States Code.

(s) “Local workforce development system stakeholders” means
owners of businesses or other business executives with
policymaking or hiring authority, representatives of local area
labor organizations, representatives of community-based
organizations that have demonstrated experience in addressing the
employment needs of individuals with barriers to employment,
and representatives of area schools and colleges including, but not
limited to schools that serve out of school youth through exclusive
partnerships with any of the following:

(1) The California Workforce Development Board or local
workforce development board.

(2) Federally affiliated Youth Build programs.

(3) Federal job corps training or instruction provided pursuant
to a memorandum of understanding with the federal provider.

(4) The California Conservation Corp or local conservation
corps certified by the California Conservation Corp pursuant to
Section 14406 or 14507.5 of the Public Resources Code.

SEC. 2.  

Section 14013 of the Unemployment Insurance Code
is amended to read:

14013.  

The board shall assist the Governor in the following:

(a) Promoting the development of a well-educated and highly
skilled 21st century workforce.

(b) Developing, implementing, and modifying the State Plan.
The State Plan shall serve as the comprehensive framework and
coordinated plan for the aligned investment of all federal and state
workforce training and employment services funding streams and
programs. To the extent feasible and when appropriate, the begin delete state
plan end delete begin insert State Plan end insert should reinforce and work with adult education
and career technical education efforts that are responsive to labor
market trends.

(c) The review of statewide policies, of statewide programs,
and of recommendations on actions that should be taken by the
state to align workforce, education, training, and employment
funding programs in the state in a manner that supports a
comprehensive and streamlined workforce development system
in the state, including the review and provision of comments on
the State Plan, if any, for programs and activities of one-stop
partners that are not core programs.

(d) Developing and continuously improving the statewide
workforce investment system, including:

(1) The identification of barriers and means for removing
barriers to better coordinate, align, and avoid duplication among
the programs and activities carried out through the system.

(2) The development of strategies to support the use of career
pathways for the purpose of providing individuals, including
low-skilled adults, youth, and individuals with barriers to
employment, including individuals with disabilities and out of
school youth, with workforce investment activities, education, and
supportive services to enter or retain employment. To the extent
permissible under state and federal laws, these policies and
strategies should support linkages between kindergarten and grades
1 to 12, inclusive, and community college educational systems in
order to help secure educational and career advancement. These
policies and strategies may be implemented using a sector strategies
framework and should ultimately lead to placement in a job
providing economic security or job placement in an entry-level
job that has a well-articulated career pathway or career ladder to
a job providing economic security.

(3) The development of strategies for providing effective
outreach to and improved access for individuals, including
individuals with barriers to employment, and employers who could
benefit from services provided through the workforce development
system.

(4) The development and expansion of strategies for meeting
the needs of employers, workers, and jobseekers, particularly
through industry or sector partnerships related to in-demand
industry sectors and occupations, including policies targeting
resources to competitive and emerging industry sectors and industry
clusters that provide economic security and are either high-growth
sectors or critical to California’s economy, or both. These industry
sectors and clusters shall have significant economic impacts on
the state and its regional and workforce development needs and
have documented career opportunities.

(5) Recommending adult and dislocated worker training policies
and investments that offer a variety of career opportunities while
upgrading the skills of California’s workforce. These may include
training policies and investments pertaining to any of the following:

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

(B) On-the-job training.

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

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

(E) Training programs operated by the private sector.

(F) Skill upgrading and retraining.

(G) Entrepreneurial training.

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

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

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

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

(L) California high school diplomas from schools accredited
by the Western Association of Schools and Colleges.

(e) The identification of regions, including planning regions,
for the purposes of Section 3121(a) of Title 29 of the United States
Code, and the designation of local areas under Section 3121 of
Title 29 of the United States Code, after consultation with local
boards and chief elected officials.

(f) The development and continuous improvement of the
one-stop delivery system in local areas, including providing
assistance to local boards, one-stop operators, one-stop partners,
and providers with planning and delivering services, including
training services and supportive services, to support effective
delivery of services to workers, job seekers, entrepreneurs, and
employers.

(g) Recommending strategies to the Governor for strategic
training investments of the Governor’s 15-percent discretionary
funds.

(h) Developing strategies to support staff training and awareness
across programs supported under the workforce development
system.

(i) The development and updating of comprehensive state
performance accountability measures, including state adjusted
levels of performance, to assess the effectiveness of the core
programs in the state as required under Section 3141(b) of Title
29 of the United States Code. As part of this process the board
shall do all of the following:

(1) Develop a workforce metrics dashboard, to be updated
annually, that measures the state’s human capital investments in
workforce development to better understand the collective impact
of these investments on the labor market. The workforce metrics
dashboard shall be produced using existing available data and
resources that are currently collected and accessible to state
agencies. The board shall convene workforce program partners to
develop a standardized set of inputs and outputs for the workforce
metrics dashboard. The workforce metrics dashboard shall do all
of the following:

(A) Provide a status report on credential attainment, including
the attainment of California high school diplomas by out of school
youth from a school accredited by the Western Association of
Schools and Colleges, training completion, degree attainment, and
participant earnings from workforce education and training
programs. The board shall publish and distribute the final report.

(B) Request an opportunity to present relevant portions of the
final report, including summary data and performance metrics, at
least once a calendar year to the State Board of Education and the
California Community College Board.

(C) Provide demographic breakdowns, including, to the extent
possible, race, ethnicity, age, gender, veteran status, wage and
credential or degree outcomes, and information on workforce
outcomes in different industry sectors.

(D) Measure, at a minimum and to the extent feasible with
existing resources, the performance of the following workforce
programs: community college career technical education, the
Employment Training Panel, Title I and Title II of the federal
Workforce Investment Act of 1998, Trade Adjustment Assistance,
and state apprenticeship programs.

(E) Measure participant earnings in California, and to the extent
feasible, in other states. The Employment Development Department
shall assist the board by calculating aggregated participant earnings
using unemployment insurance wage records, without violating
any applicable confidentiality requirements.

(2) The State Department of Education is hereby authorized to
collect the social security numbers of adults participating in adult
education programs so that accurate participation in those programs
can be represented in the report card. However, an individual shall
not be denied program participation if he or she refuses to provide
a social security number. The State Department of Education shall
keep this information confidential and shall only use this
information for tracking purposes, in compliance with all applicable
state and federal law.

(3) (A) Participating workforce programs, as specified in
subparagraph (D) of paragraph (1), shall provide participant data
in a standardized format to the Employment Development
Department.

(B) The Employment Development Department shall aggregate
data provided by participating workforce programs and shall report
the data, organized by demographics, earnings, and industry of
employment, to the board to assist the board in producing the
annual workforce metrics dashboard.

(j) The identification and dissemination of information on best
practices, including best practices for all of the following:

(1) The effective operation of one-stop centers, relating to the
use of business outreach, partnerships, and service delivery
strategies, including strategies for serving individuals with barriers
to employment.

(2) The development of effective local boards, which may
include information on factors that contribute to enabling local
boards to exceed negotiated local levels of performance, sustain
fiscal integrity, and achieve other measures of effectiveness.

(3) Effective training programs that respond to real-time labor
market analysis, that effectively use direct assessment and prior
learning assessment to measure an individual’s prior knowledge,
skills, competencies, and experiences, and that evaluate such skills,
and competencies for adaptability, to support efficient placement
into employment or career pathways.

(k) The development and review of statewide policies affecting
the coordinated provision of services through the state’s one-stop
delivery system described in Section 3151(e) of Title 29 of the
United States Code, including the development of all of the
following:

(1) Objective criteria and procedures for use by local boards in
assessing the effectiveness and continuous improvement of
one-stop centers described in Section 3151(e) of Title 29 of the
United States Code.

(2) Guidance for the allocation of one-stop center infrastructure
funds under Section 3151(h) of Title 29 of the United States Code.

(3) Policies relating to the appropriate roles and contributions
of entities carrying out one-stop partner programs within the
one-stop delivery system, including approaches to facilitating
equitable and efficient cost allocation in such a system.

(l) The development of strategies for technological
improvements to facilitate access to, and improve the quality of,
services and activities provided through the one-stop delivery
system, including such improvements to all of the following:

(1) Enhance digital literacy skills, as defined in Section 9101
of Title 20 of the United States Code, referred to in this division
as “digital literacy skills.”

(2) Accelerate the acquisition of skills and recognized
postsecondary credentials by participants.

(3) Strengthen the professional development of providers and
workforce professionals.

(4) Ensure the technology is accessible to individuals with
disabilities and individuals residing in remote areas.

(m) The development of strategies for aligning technology and
data systems across one-stop partner programs to enhance service
delivery and improve efficiencies in reporting on performance
accountability measures, including the design and implementation
of common intake, data collection, case management information,
and performance accountability measurement and reporting
processes and the incorporation of local input into such design and
implementation, to improve coordination of services across
one-stop partner programs.

(n) The development of allocation formulas for the distribution
of funds for employment and training activities for adults, and
youth workforce investment activities, to local areas as permitted
under Sections 3163(b)(3) and 3173(b)(3) of Title 29 of the United
States Code.

(o) The preparation of the annual reports described in paragraphs
(1) and (2) of Section 3141(d) of Title 29 of the United States
Code.

(p) The development of the statewide workforce and labor
market information system described in Section 49l-2(e) of Title
29 of the United States Code.

(q) The development of other policies as may promote statewide
objectives for, and enhance the performance of, the workforce
development system in the state.

(r) Helping individuals with barriers to employment, including
low-skill, low-wage workers, the long-term unemployed, and
members of single-parent households, achieve economic security
and upward mobility by implementing policies that encourage the
attainment of marketable skills relevant to current labor market
trends.

SEC. 3.  

Section 14200 of the Unemployment Insurance Code
is amended to read:

14200.  

(a) The local chief elected officials in a local workforce
development area shall form, pursuant to guidelines established
by the Governor and the board, a local workforce development
board to plan and oversee the workforce investment system.

(b) The Governor shall periodically certify one local board for
each local area in the state, following the requirements of the
federal Workforce Innovation and Opportunity Act of 2014.

(c) The Governor shall establish, through the California
Workforce Development Board, standards for certification of
high-performance local workforce development boards. The
California Workforce Development Board shall, in consultation
with representatives from local workforce development boards,
initiate a stakeholder process to determine the appropriate
measurable metrics and standards for high-performance
certification. These standards shall be implemented on or before
January 1, 2013, and the first certification of high-performance
boards shall occur on or before July 1, 2013. Certification and
recertification of each high-performance local workforce
development board shall occur thereafter midway through the
implementation of the local and regional plans required by the
Workforce Innovation and Opportunity Act. In order to meet the
standards for certification, a high-performance local workforce
development board shall do all of the following:

(1) Consistently meet or exceed negotiated performance goals
for all of the measures in each of the three federal Workforce
Innovation and Opportunity Act of 2014 customer groups, which
consist of adults, dislocated workers, and youth, including out of
school youth.

(2) Consistently meet the statutory requirements of this division.

(3) Develop and implement local policies and a local strategic
plan that meets all of the following requirements:

(A) Meets all local and regional planning requirements specified
under the federal Workforce Innovation and Development Act of
2014.

(B) Is consistent with the California Workforce Development
Board State Plan.

(C) Describes the actions that the board shall take to implement
local policies in furtherance of its goals.

(D) Serves as a written account of intended future courses of
action aimed at achieving the specific goals of the local and state
board within a specific timeframe.

(E) Explains what needs to be done, by whom, and when each
action is required to occur in order to meet those goals.

(4) Demonstrate that the local planning process involves key
stakeholders, including the major employers and industry groups
in the relevant regional economy and organized labor.

(5) Demonstrate that the local planning process takes into
account the entire workforce training pipeline for the relevant
regional economy, including schools operating with Department
of Labor partners and other partners in K-12 education, career
technical education, the community college system, other
postsecondary institutions, and other local workforce development
areas operating in begin insert a end insert relevant regional economy.

(6) Demonstrate that the local planning process and plan are
data driven, and that policy decisions at the local level are evidence
based. Each high-performance local workforce development board
shall use labor market data to develop and implement the local
plan, taking care to steer resources into programs and services that
are relevant to the needs of each workforce development area’s
relevant regional labor market and high-wage industry sectors.
Local workforce development areas shall demonstrate an
evidence-based approach to policymaking by establishing
performance benchmarks and targets to measure progress toward
local goals and objectives.

(7) Demonstrate investment in workforce initiatives, and,
specifically, training programs that promote skills development
and career ladders relevant to the needs of each workforce
investment area’s regional labor market and high-wage industry
sectors.

(8) Establish a youth strategy aligned with the needs of each
workforce investment area’s regional labor market and high-wage
industry sectors. This strategy shall also address workforce
preparation for out of school youth and other individuals facing
barriers to employment.

(9) Establish a business service plan that integrates local
business involvement with workforce initiatives. This plan at a
minimum shall include all of the following:

(A) Efforts to partner with businesses to identify the workforce
training and educational barriers to attract jobs in the relevant
regional economy, existing skill gaps reducing the competitiveness
of local businesses in the relevant regional economies, and potential
emerging industries that would likely contribute to job growth in
the relevant regional economy if investments were made for
training and educational programs.

(B) An electronic system for both businesses and job seekers
to communicate about job opportunities.

(C) A subcommittee of the local workforce development board
that further develops and makes recommendations for the business
service plan for each local workforce development board in an
effort to increase employer involvement in the activities of the
local workforce development board. The subcommittee members
should be comprised of business representatives on the local
workforce development board who represent both the leading
industries and employers in the relevant regional economy and
potential emerging sectors that have significant potential to
contribute to job growth in the relevant regional economy if
investments were made for training and educational programs.

(d) The Governor and the Legislature, as part of the annual
budget process, in consultation with the California Workforce
Development Board, shall annually reserve a portion of the
15-percent discretionary fund made available pursuant to the
federal Workforce Innovation and Opportunity Act of 2014 for
the purpose of providing performance incentives to
high-performance local workforce development boards. The
remaining discretionary funds shall continue to be available for
other discretionary purposes as provided for in the federal
Workforce Innovation and Opportunity Act of 2014.

(e) Only a workforce development board that is certified as a
high-performance local workforce development board by the
California Workforce Development Board shall be eligible to
receive any incentive money reserved for high-performance local
workforce development boards, as described in subdivision (d).
A board that is not certified as a high-performance local workforce
development board shall not receive any portion of the money
reserved for high-performance local workforce development
boards, as described in subdivision (d).

(f) The California Workforce Development Board shall establish
a policy for the allocation of incentive moneys to high-performance
local workforce development boards.

(g) To the extent permitted by the Workforce Innovation and
Opportunity Act of 2014, the California Workforce Development
Board may consider the utilization of incentive grants, or direct
assistance, or both, to local workforce development boards for the
purposes of this section.

(h) There shall not be a requirement to set aside federal
Workforce Innovation and Opportunity Act of 2014 funds for the
purposes of subdivision (d), (e), (f), or (g) in years when the federal
government significantly reduces the share of federal Workforce
Innovation and Opportunity Act of 2014 funds appropriated to the
state for statewide discretionary purposes below the federal
statutory amount of 15 percent.

SEC. 4.  

Section 14221 of the Unemployment Insurance Code
is amended to read:

14221.  

The local plan shall include all of the following:

(a) A description of the strategic planning elements consisting
of each of the following:

(1) An analysis of the regional economic conditions, including,
existing and emerging in-demand industry sectors and occupations
and the employment needs of employers in those industry sectors
and occupations.

(2) An analysis of the knowledge and skills needed to meet the
employment needs of the employers in the region, including
employment needs in in-demand industry sectors and occupations.

(3) An analysis of the workforce in the region, including current
labor force employment and unemployment data, and information
on labor market trends, and the educational and skill levels of the
workforce in the region, including individuals with barriers to
employment.

(4) An analysis of the workforce development activities,
including education and training, in the region, including an
analysis of the strengths and weaknesses of such services, and the
capacity to provide such services, to address the identified
education and skill needs of the workforce and the employment
needs of employers in the region.

(5) An analysis of education programs available to out of school
youth to increase learning gains and earn a diploma from a high
school accredited by the Western Association of Schools and
Colleges in partnership with one-stop partners and other core
programs.

(6) A description of the local board's strategic vision and goals
for preparing an educated and skilled workforce, including youth
and individuals with barriers to employment, including goals
relating to the performance accountability measures based on
primary indicators of performance described in Section
3141(b)(2)(A) of Title 29 of the United States Code in order to
support regional economic growth and economic self-sufficiency.

(7) Taking into account analyses described in paragraphs (1) to
(5), inclusive, a strategy to work with the entities that carry out
the core programs to align resources available to the local area, to
achieve the strategic vision and goals described in paragraph (6).

(b) A description of the workforce development system in the
local area that identifies the programs that are included in that
system and how the local board will work with the entities carrying
out core programs and other workforce development programs to
support alignment to provide services, including programs of study
authorized under the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2301 et seq.), that support the
strategy identified in the State Plan under Section 3112(b)(1)(E)
of the Title 29 of the United States Code.

(c) A description of how the local board, working with the
entities carrying out core programs, will expand access to
employment, training, education, and supportive services for
eligible individuals, particularly eligible individuals with barriers
to employment, including how the local board will facilitate the
development of career pathways and co-enrollment, as appropriate,
in core programs, and improve access to activities leading to a
recognized postsecondary credential, including a credential that
is an industry-recognized certificate or certification, portable, and
stackable.

(d) A description of the strategies and services that will be used
in the local area in order to facilitate engagement of employers,
including small employers and employers in in-demand industry
sectors and occupations, in workforce development programs,
support a local workforce development system that meets the needs
of businesses in the local area, better coordinate workforce
development programs and economic development, and strengthen
linkages between the one-stop delivery system and unemployment
insurance programs. This may include the implementation of
initiatives such as incumbent worker training programs, on-the-job
training programs, customized training programs, industry and
sector strategies, career pathways initiatives, utilization of effective
business intermediaries, and other business services and strategies,
designed to meet the needs of employers in the corresponding
region in support of the strategy described in paragraph (5) of
subdivision (a).

(e) A description of how the local board will coordinate
workforce investment activities carried out in the local area with
economic development activities carried out in the region in which
the local area is located, or planning region, and promote
entrepreneurial skills training and microenterprise services.

(f) A description of the one-stop delivery system in the local
area, including all of the following:

(1) A description of how the local board will ensure the
continuous improvement of eligible providers of services through
the system and ensure that such providers meet the employment
needs of local employers, and workers and jobseekers.

(2) A description of how the local board will facilitate access
to services provided through the one-stop delivery system,
including in remote areas, through the use of technology and
through other means.

(3) A description of how entities within the one-stop delivery
system, including one-stop operators and the one-stop partners,
will comply with Section 3248 of Title 29 of the United States
Code, if applicable, and applicable provisions of the Americans
with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.)
regarding the physical and programmatic accessibility of facilities,
programs and services, technology, and materials for individuals
with disabilities, including providing staff training and support for
addressing the needs of individuals with disabilities.

(4) A description of the roles and resource contributions of the
one-stop partners.

(g) A description and assessment of the type and availability of
adult and dislocated worker employment and training activities in
the local area.

(h) A description of how the local board will coordinate
workforce investment activities carried out in the local area with
statewide rapid response activities, as described in Section
3174(a)(2)(A) of Title 29 of the United States Code.

(i) A description and assessment of the type and availability of
youth workforce investment activities in the local area, including
activities for youth who are individuals with disabilities, which
description and assessment shall include an identification of
successful models of such youth workforce investment activities.

(j) A description of how the local board will coordinate
education and workforce investment activities carried out in the
local area with relevant secondary and postsecondary education
programs and activities to coordinate strategies, enhance services,
and avoid duplication of services.

(k) A description of how the local board will coordinate
workforce investment activities carried out under this article in
the local area with the provision of transportation, including public
transportation, and other appropriate supportive services in the
local area.

(l) A description of plans and strategies for, and assurances
concerning, maximizing coordination of services provided by the
state employment service under the Wagner-Peyser Act (29 U.S.C.
Sec. 49 et seq.) and services provided in the local area through the
one-stop delivery system, to improve service delivery and avoid
duplication of services.

(m) A description of how the local board will coordinate
workforce investment activities carried out in the local area with
the provision of adult education and literacy activities in the local
area, including a description of how the local board will carry out,
consistent with subparagraphs (A) and (B)(i) of Section
3122(d)(11) of Title 29 of the United States Code and Section
3322 of Title 29 of the United States Code, the review of local
applications.

(n) A description of the replicated cooperative agreements, as
defined in Section 3122(d)(11) of Title 29 of the United States
Code between the local board or other local entities described in
Section 101(a)(11)(B) of the Rehabilitation Act of 1973 (29 U.S.C.
Sec. 721(a)(11)(B)) and the local office of a designated state agency
or designated state unit administering programs carried out under
Title I of that act, other than Section 112 or Part C of that Title (29
U.S.C. Secs. 732 and 741) and subject to Section 3151(f) of Title
29 of the United States Code, in accordance with Section
101(a)(11) of the Rehabilitation Act of 1973 (29 U.S.C. Sec.
721(a)(11)) with respect to efforts that will enhance the provision
of services to individuals with disabilities and to other individuals,
such as cross training of staff, technical assistance, use and sharing
of information, cooperative efforts with employers, and other
efforts at cooperation, collaboration, and coordination.

(o) An identification of the entity responsible for the disbursal
of grant funds described in Section 3122(d)(12)(B)(i)(III) of Title
29 of the United States Code, as determined by the chief elected
official or the Governor under Section 3122(d)(12)(B)(i) of Title
29 of the United States Code.

(p) A description of the competitive process to be used to award
the subgrants and contracts in the local area for activities carried
out pursuant to this act.

(q) A description of the local levels of performance negotiated
with the Governor and chief elected official pursuant to Section
3141(c) of Title 29 of the United States Code, to be used to measure
the performance of the local area and to be used by the local board
for measuring the performance of the local fiscal agent, where
appropriate, eligible providers, and the one-stop delivery system,
in the local area.

(r) A description of the actions the local board will take toward
becoming or remaining a high-performing board, consistent with
the factors developed by the board pursuant to Section 3111(d)(6)
of Title 29 of the United States Code. This federal requirement is
separate and apart from state standards pertaining to the
certification of high-performance local workforce development
boards.

(s) A description of how training services will be provided in
accordance with Section 3174(c)(3)(G) of Title 29 of the United
States Code, including, if contracts for the training services will
be used, how the use of such contracts will be coordinated with
the use of individual training accounts and how the local board
will ensure informed customer choice in the selection of training
programs regardless of how the training services are to be provided.

(t) A description of the process used by the local board,
consistent with subsection (d), to provide an opportunity for public
comment, including comment by representatives of businesses and
comment by representatives of labor organizations, and input into
the development of the local plan, prior to submission of the plan.

(u) A description of how one-stop centers are implementing and
transitioning to an integrated, technology-enabled intake and case
management information system for programs carried out under
this act and programs carried out by one-stop partners.

(v) Any other information as the Governor may require.

SEC. 5.  

Section 14230 of the Unemployment Insurance Code
is amended to read:

14230.  

(a) It is the intent of the Legislature that:

(1) California deliver comprehensive workforce services to
jobseekers, students, and employers through a system of one-stop
career centers.

(2) Services and resources target high-wage industry sectors
with career advancement opportunities.

(3) Universal access to career services shall be available to adult
residents regardless of income, education, employment barriers,
or other eligibility requirements. Career services shall include, but
not be limited to:

(A) Outreach, intake, and orientation to services available
through the one-stop delivery system.

(B) Initial assessment of skill levels, aptitudes, abilities, and
supportive service needs.

(C) Job search and placement assistance.

(D) Career counseling, where appropriate.

(E) Provision of labor market information.

(F) Provision of program performance and cost information on
eligible providers of training services and local area performance
measures.

(G) Provision of information on supportive services in the local
area.

(H) Provision of information on the filing of claims for
unemployment compensation benefits and unemployment
compensation disability benefits.

(I) Assistance in establishing eligibility for welfare-to-work
activities pursuant to Section 11325.8 of the Welfare and
Institutions Code, and financial aid assistance.

(J) Comprehensive and specialized assessments of skill levels
and service needs, including learning disability screening.

(K) Development of individual employment plans.

(L) Counseling.

(M) Career planning.

(N) Short-term prevocational services to prepare an individual
for training or employment.

(4) State and federally funded workforce education, training,
and employment programs shall be integrated in the one-stop
delivery system to achieve universal access to the career services
described in paragraph (3).

(5) Training services shall be made available to individuals who
have met the requirements for career services, have been unable
to obtain or retain employment through career services, are in need
of training services to obtain or retain employment that leads to
economic self-sufficiency or wages comparable to, or higher than,
wages from previous employment, have the skills and qualifications
to successfully participate in the training, and have selected a
program of services directly linked to occupations in demand in
the local or regional area. Training services may include:

(A) Occupational skill training including training for
nontraditional employment.

(B) On-the-job training.

(C) Programs that combine workplace training with related
instruction.

(D) Training programs operated by the private sector.

(E) Skill upgrading and retraining.

(F) Entrepreneurial training.

(G) Incumbent worker training, in accordance with Section
134(d)(4) of the Workforce Innovation and Opportunity Act.

(H) Transitional jobs, in accordance with Section 134(d)(5) of
the Workforce Innovation and Opportunity Act.

(I) Job readiness training, provided in combination with any
service under subparagraphs (A) to (H), inclusive.

(J) Adult education and literacy activities, including vocational
English as a second language, provided in combination with
subparagraphs (A) through (G), inclusive.

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

(6) As prescribed in the Workforce Innovation and Opportunity
Act, adult recipients of public assistance, other low-income adults,
and individuals who are basic skills deficient, including out of
school youth, shall be given priority for training services and career
services described in Section 134(d)(2)(A)(xii) of the Workforce
Innovation and Opportunity Act.

(b) Each local workforce development board shall establish at
least one full service one-stop career center in the local workforce
development area. Each full service one-stop career center shall
have all entities required to be partners in Section 3151 of Title
29 of the United States Code as partners and shall provide
jobseekers with integrated employment, education, training, and
job search services. Additionally, employers will be provided with
access to comprehensive career and labor market information, job
placement, economic development information, performance and
program information on service providers, and other such services
as the businesses in the community may require.

(c) Local boards may also establish affiliated and specialized
centers, as defined in the Workforce Innovation and Opportunity
Act of 2014, which shall act as portals into the larger local one-stop
system, but are not required to have all of the partners specified
for full service one-stop centers.

(d) Each local board shall develop a policy for identifying
individuals who, because of their skills or experience, should be
referred immediately to training services. To the extent permitted
under the Workforce Innovation and Opportunity Act of 2014, this
policy, along with the methods for referral of individuals between
the one-stop operators and the one-stop partners for appropriate
services and activities, shall be contained in the memorandum of
understanding between the local board and the one-stop partners.

(e) The California Workforce Development Board and each
local board shall ensure that programs and services funded by the
Workforce Innovation and Opportunity Act of 2014 and directed
to apprenticeable occupations, including preapprenticeship training,
are conducted, to the maximum extent feasible, in coordination
with one or more apprenticeship programs approved by the
Division of Apprenticeship Standards for the occupation and
geographic area. The California Workforce Development Board
and each local board shall also develop a policy of fostering
collaboration between community colleges and approved
apprenticeship programs in the geographic area to provide
preapprenticeship training, apprenticeship training, and continuing
education in apprenticeable occupations through the approved
apprenticeship programs.

(f) In light of California’s diverse population, each one-stop
career center should have the capacity to provide the appropriate
services to the full range of languages and cultures represented in
the community served by the one-stop career center.

begin delete

SEC. 6.  

Section 14231 of the Unemployment Insurance Code
is amended to read:

14231.  

(a) The local providers of the following programs or
activities shall be required partners in the local one-stop system:

(1) Programs authorized under Title I of the Workforce
Innovation and Opportunity Act.

(2) Programs authorized under the Wagner-Peyser Act (29
U.S.C. Sec. 49 et seq.).

(3) Adult education and literacy activities authorized under Title
II of the Workforce Innovation and Opportunity Act.

(4) Programs authorized under Title I of the Rehabilitation Act
of 1973 (29 U.S.C. Sec. 720 et seq.) other than Section 112 or Part
C of the act (29 U.S.C. Sec. 732 and 741).

(5) Activities authorized under Title V of the Older Americans
Act of 1965 (42 U.S.C. Sec. 3056 et seq.).

(6) Career and technical education programs at the
postsecondary level authorized under the Carl D. Perkins Career
and Technical Education Act of 2006 (20 U.S.C. Sec. 2301 et seq.).

(7) Activities authorized under Chapter 2 of Title II of the Trade
Act of 1974 (19 U.S.C. Sec. 2271 et seq.).

(8) Activities authorized under Chapter 41 (commencing with
Section 4100) of Title 38 of the United States Code.

(9) Employment and training activities carried out under the
Community Services Block Grant Act (42 U.S.C. Sec. 9901 et
seq.).

(10) Employment and training activities carried out by the
Department of Housing and Urban Development.

(11) Programs authorized by this code, in accordance with
applicable federal law.

(12) Programs authorized under Section 212 of the Second
Chance Act of 2007 (42 U.S.C. Sec. 17532).

(13) Programs authorized under Part A of Title IV of the Social
Security Act (42 U.S.C. Sec. 601 et seq.).

(14) Programs that serve out of school youth through exclusive
partnerships between secondary schools and any of the following:

(A) The California Workforce Development Board or local
workforce development board.

(B) Federally affiliated Youth Build programs.

(C) Federal job corps training or instruction provided pursuant
to a memorandum of understanding with the federal provider.

(D) The California Conservation Corp or local conservation
corps certified by the California Conservation Corp pursuant to
Section 14406 or 14507.5 of the Public Resources Code.

(b) Community-based organizations that provide career services
as described in subparagraphs (J) to (N), inclusive, of paragraph
(1) of subdivision (a) of Section 14230, shall be encouraged to be
one-stop partners.

end delete

begin delete SEC. 7. end delete

begin insert SEC. 6. end insert   

Section 14510 of the Unemployment Insurance Code
is amended to read:

14510.  

begin insert (a) end insert begin insert   end insert To the extent permitted by federal law, school
districts, county offices of education, and secondary schools that
provide instruction exclusively in partnership with any of the
entities or programs described in begin delete paragraph (14) of end delete subdivision
begin delete (a) of Section 14231, end delete begin insert (b) end insert are eligible to apply to local workforce
development boards to provide basic skills training and skills
necessary for attaining a secondary school diploma. However, the
boards shall prioritize begin delete funding for basic skills training and skills
necessary for attaining end delete begin insert programs that specialize in end insert a secondary
school diploma from a school accredited by the Western
Association of Schools and Colleges.

begin insert

(b) Pursuant to subdivision (a), entities or programs include
programs that serve out of school youth through exclusive
partnerships between secondary schools and any of the following:

end insert begin insert

(1) The California Workforce Development Board or local
workforce development board.

end insert begin insert

(2) Federally affiliated Youth Build programs.

end insert begin insert

(3) Federal job corps training or instruction provided pursuant
to a memorandum of understanding with the federal provider.

end insert begin insert

(4) The California Conservation Corps or local conservation
corps certified by the California Conservation Corps pursuant to
Section 14406 or 14507.5 of the Public Resources Code.

end insert

begin delete SEC. 8. end delete

begin insert SEC. 7. end insert   

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.