Amended in Assembly April 12, 2016

Amended in Assembly March 29, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2719


Introduced by Assembly Member Eduardo Garcia

(Principal coauthor: Senator Hueso)

February 19, 2016


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

LEGISLATIVE COUNSEL’S DIGEST

AB 2719, as amended, Eduardo Garcia. Workforce development:begin delete out of schoolend deletebegin insert out-of-schoolend insert 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 anbegin delete out of schoolend deletebegin insert out-of-schoolend insert youth, as defined, would revise the duties of the board regardingbegin delete out of schoolend deletebegin insert out-of-schoolend insert 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. 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.

This bill would revise the criteria to include references tobegin delete out of schoolend deletebegin insert out-of-schoolend insert youth, as specified, and require the local plan to include an analysis of education programs available forbegin delete out of schoolend deletebegin insert out-of-schoolend insert youth, as specified. By increasing the duties of local officials, this bill would impose a state-mandated local program. 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.

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:

P3    1

SECTION 1.  

Section 14005 of the Unemployment Insurance
2Code
is amended to read:

3

14005.  

For purposes of this division:

4(a) “Board” means the California Workforce Development
5Board.

6(b) “Agency” means the Labor and Workforce Development
7Agency.

8(c) “Career pathways,” “career ladders,” or “career lattices” are
9an identified series of positions, work experiences, or educational
10benchmarks or credentials with multiple access points that offer
11occupational and financial advancement within a specified career
12field or related fields over time. “Career pathways,” “career
13ladders,” and “career lattices” offer combined programs of rigorous
14and high-quality education, training, and other services that do all
15of the following:

16(1) Align with the skill needs of industries in the economy of
17the state or regional economy involved.

18(2) Prepare an individual to be successful in any of a full range
19of secondary or postsecondary education options, including
20apprenticeships registered under the National Apprenticeship Act
21of 1937 (29 U.S.C. Sec. 50 et seq.), except as in Section 3226 of
22Title 29 of the United States Code.

23(3) Include counseling to support an individual in achieving the
24individual’s education and career goals.

25(4) Include, as appropriate, education offered concurrently with
26and in the same context as workforce preparation activities and
27training for a specific occupation or occupational cluster.

28(5) Organize education, training, and other services to meet the
29particular needs of an individual in a manner that accelerates the
30educational and career advancement of the individual to the extent
31practicable.

32(6) Enable an individual to attain a secondary school diploma
33or its recognized equivalent, and at least one recognized
34postsecondary credential.

35(7) Help an individual enter or advance within a specific
36occupation or occupational cluster.

37(d) “Cluster-based sector strategies” mean methods of focusing
38workforce and economic development on those sectors that have
P4    1demonstrated a capacity for economic growth and job creation in
2a particular geographic area.

3(e) “Data driven” means a process of making decisions about
4investments and policies based on systematic analysis of data,
5which may include data pertaining to labor markets.

6(f) “Economic security” means, with respect to a worker, earning
7a wage sufficient to support a family adequately, and, over time,
8to save for emergency expenses and adequate retirement income,
9based on factors such as household size, the cost of living in the
10worker’s community, and other factors that may vary by region.

11(g) “Evidence-based” means making use of policy research as
12a basis for determining best policy practices. Evidence-based
13policymakers adopt policies that research has shown to produce
14positive outcomes, in a variety of settings, for a variety of
15populations over time. Successful, evidence-based programs deliver
16quantifiable and sustainable results. Evidence-based practices
17differ from approaches that are based on tradition, belief,
18convention, or anecdotal evidence.

19(h) “High-priority occupations” mean occupations that have a
20significant presence in a targeted industry sector or industry cluster,
21are in demand, or projected to be in demand, by employers, and
22pay or lead to payment of a wage that provides economic security.

23(i) (1) “In-demand industry sector or occupation” means either
24of the following:

25(A) An industry sector that has a substantial current or potential
26impact, including through jobs that lead to economic
27self-sufficiency and opportunities for advancement, on the state,
28regional, or local economy, as appropriate, and that contributes to
29the growth or stability of other supporting businesses, or the growth
30of other industry sectors.

31(B) An occupation that currently has or is projected to have a
32number of positions, including positions that lead to economic
33self-sufficiency and opportunities for advancement, in an industry
34sector so as to have a significant impact on the state, regional, or
35local economy, as appropriate.

36(2) The determination of whether an industry sector or
37occupation is “in-demand” under this subdivision shall be made
38by the board or local board, or through the regional planning
39process in which local boards participate under the Workforce
40Innovation and Opportunity Act, as appropriate, using state and
P5    1regional business and labor market projections, including the use
2of labor market information.

3(j) “Individual with employment barriers” means an individual
4with any characteristic that substantially limits an individual’s
5ability to obtain employment, including indicators of poor work
6history, lack of work experience, or access to employment in
7nontraditional occupations, long-term unemployment, lack of
8educational or occupational skills attainment, dislocation from
9high-wage and high-benefit employment, low levels of literacy or
10English proficiency, disability status, or welfare dependency,
11including members of all of the following groups:

12(1) Displaced homemakers.

13(2) Low-income individuals.

14(3) Indians, Alaska Natives, and Native Hawaiians, as those
15terms are defined in Section 3221 of Title 29 of the United States
16Code.

17(4) Individuals with disabilities, including youths who are
18individuals with disabilities.

19(5) Older individuals.

20(6) Ex-offenders.

21(7) Homeless individuals, as defined in Section 14043e-2(6) of
22Title 42 of the United States Code, or homeless children and
23youths, as defined in Section 11434a(2) of Title 42 of the United
24States Code.

25(8) Youth who are in, or have aged out of, the foster care system.

26(9) Individuals who are English language learners, individuals
27who have low levels of literacy, and individuals facing substantial
28cultural barriers.

29(10) Eligible migrant and seasonal farmworkers, as defined in
30Section 3322(i) of Title 29 of the United States Code.

31(11) Individuals within two years of exhausting lifetime
32eligibility under Part A of Title IV of the Social Security Act (42
33 U.S.C. Sec. 601 et seq.).

34(12) Single parents, including single, pregnant women.

35(13) Long-term unemployed individuals.

36(14) begin deleteOut of school end deletebegin insertOut-of-school end insertyouth.

37(15) Any other groups as the Governor determines to have
38barriers to employment.

39(k) “Industry cluster” means a geographic concentration or
40emerging concentration of interdependent industries with direct
P6    1service, supplier, and research relationships, or independent
2industries that share common resources in a given regional
3economy or labor market. An industry cluster is a group of
4employers closely linked by common product or services,
5workforce needs, similar technologies, and supply chains in a given
6regional economy or labor market.

7(l) “Industry or sector partnership” means a workforce
8collaborative, convened or acting in partnership with the board or
9a local board, that does the following:

10(1) Organizes key stakeholders in an industry cluster into a
11working group that focuses on the shared goals and human
12resources needs of the industry cluster and that includes, at the
13appropriate stages of development of the partnership:

14(A) Representatives of multiple businesses or other employers
15in the industry cluster, including small and medium-sized
16employers when practicable.

17(B) One or more representatives of a recognized state labor
18organization or central labor council, or another labor
19representative, as appropriate.

20(C) One or more representatives of an institution of higher
21education with, or another provider of, education or training
22programs that support the industry cluster.

23(2) The workforce collaborative may include representatives of
24any of the following:

25(A) State or local government.

26(B) State or local economic development agencies.

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

28(D) A state workforce agency or entity providing employment
29services.

30(E) Other state or local agencies.

31(F) Business or trade associations.

32(G) Economic development organizations.

33(H) Nonprofit organizations, community-based organizations,
34or intermediaries.

35(I) Philanthropic associations.

36(J) Industry associations.

37(K) Other organizations, as determined to be necessary by the
38members comprising the industry sector or partnership.

39(m) “Industry sector” means those firms that produce similar
40products or provide similar services using somewhat similar
P7    1business processes, and are closely linked by workforce needs,
2within a regional labor market.

3(n) “Local labor federation” means a central labor council that
4is an organization of local unions affiliated with the California
5Labor Federation or a local building and construction trades council
6affiliated with the State Building and Construction Trades Council
7of California.

8(o) “Sector strategies” means methods of prioritizing
9investments in competitive and emerging industry sectors and
10industry clusters on the basis of labor market and other economic
11data indicating strategic growth potential, especially with regard
12to jobs and income, and exhibit the following characteristics:

13(1) Focus workforce investment in education and workforce
14training programs that are likely to lead to jobs providing economic
15security or to an entry-level job with a well-articulated career
16pathway into a job providing economic security.

17(2) Effectively boost labor productivity or reduce business
18barriers to growth and expansion stemming from workforce supply
19problems, including skills gaps and occupational shortages by
20directing resources and making investments to plug skills gaps
21and provide education and training programs for high-priority
22occupations.

23(3) May be implemented using articulated career pathways or
24lattices and a system of stackable credentials.

25(4) May target underserved communities, disconnected youths,
26incumbent workers, and recently separated military veterans.

27(5) Frequently are implemented using industry or sector
28partnerships.

29(6) Typically are implemented at the regional level where sector
30firms, those employers described in subdivisions (j) and (l), often
31share a common labor market and supply chains. However, sector
32strategies may also be implemented at the state or local level
33depending on sector needs and labor market conditions.

34(p) “Workforce Innovation and Opportunity Act of 2014” means
35the federal act enacted as Public Law 113-128.

36(q) (1) “Earn and learn” includes, but is not limited to, a
37program that does either of the following:

38(A) Combines applied learning in a workplace setting with
39compensation allowing workers or students to gain work experience
P8    1and secure a wage as they develop skills and competencies directly
2relevant to the occupation or career for which they are preparing.

3(B) Brings together classroom instruction with on-the-job
4training to combine both formal instruction and actual paid work
5experience.

6(2) “Earn and learn” programs include, but are not limited to,
7all of the following:

8(A) Apprenticeships.

9(B) Preapprenticeships.

10(C) Incumbent worker training.

11(D) Transitional and subsidized employment, particularly for
12individuals with barriers to employment.

13(E) Paid internships and externships.

14(F) Project-based compensated learning.

15(r) begin delete“Out of school end deletebegin insert“Out-of-school end insertyouth” means an individual
16who begin delete is 16 years of age or older, but not more than 24 years of age
17and is a school dropout or is within the age of compulsory school
18attendance, but has not attended school for at least the most recent
1990 days of the school calendar or otherwiseend delete
meets the definition
20in Section 3164(a)(1)(B) of Title 29 of the United States Code.

21(s) “Local workforce development system stakeholders” means
22owners of businesses or other business executives with
23policymaking or hiring authority, representatives of local area
24labor organizations, representatives of community-based
25organizations that have demonstrated experience in addressing the
26employment needs of individuals with barriers to employment,
27and representatives of area schools and colleges including, but not
28limited to schools that servebegin delete out of schoolend deletebegin insert out-of-schoolend insert youth
29through exclusive partnerships with any of the following:

30(1) The California Workforce Development Board or local
31workforce development board.

32(2) Federally affiliated Youth Build programs.

33(3) Federal job corps training or instruction provided pursuant
34to a memorandum of understanding with the federal provider.

35(4) The California Conservation Corp or local conservation
36corps certified by the California Conservation Corp pursuant to
37Section 14406 or 14507.5 of the Public Resources Code.

38

SEC. 2.  

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

40

14013.  

The board shall assist the Governor in the following:

P9    1(a) Promoting the development of a well-educated and highly
2skilled 21st century workforce.

3(b) Developing, implementing, and modifying the State Plan.
4The State Plan shall serve as the comprehensive framework and
5coordinated plan for the aligned investment of all federal and state
6workforce training and employment services funding streams and
7programs. To the extent feasible and when appropriate, the State
8Plan should reinforce and work with adult education and career
9technical education efforts that are responsive to labor market
10trends.

11(c) The review of statewide policies, of statewide programs,
12and of recommendations on actions that should be taken by the
13state to align workforce, education, training, and employment
14funding programs in the state in a manner that supports a
15comprehensive and streamlined workforce development system
16in the state, including the review and provision of comments on
17the State Plan, if any, for programs and activities of one-stop
18partners that are not core programs.

19(d) Developing and continuously improving the statewide
20workforce investment system, including:

21(1) The identification of barriers and means for removing
22barriers to better coordinate, align, and avoid duplication among
23the programs and activities carried out through the system.

24(2) The development of strategies to support the use of career
25pathways for the purpose of providing individuals, including
26low-skilled adults, youth, and individuals with barriers to
27employment, including individuals with disabilities andbegin delete out of
28schoolend delete
begin insert out-of-schoolend insert youth, with workforce investment activities,
29education, and supportive services to enter or retain employment.
30To the extent permissible under state and federal laws, these
31policies and strategies should support linkages between
32kindergarten and grades 1 to 12, inclusive, and community college
33educational systems in order to help secure educational and career
34advancement. These policies and strategies may be implemented
35using a sector strategies framework and should ultimately lead to
36placement in a job providing economic security or job placement
37in an entry-level job that has a well-articulated career pathway or
38career ladder to a job providing economic security.

39(3) The development of strategies for providing effective
40outreach to and improved access for individuals, including
P10   1individuals with barriers to employment, and employers who could
2benefit from services provided through the workforce development
3system.

4(4) The development and expansion of strategies for meeting
5the needs of employers, workers, and jobseekers, particularly
6through industry or sector partnerships related to in-demand
7industry sectors and occupations, including policies targeting
8resources to competitive and emerging industry sectors and industry
9clusters that provide economic security and are either high-growth
10sectors or critical to California’s economy, or both. These industry
11sectors and clusters shall have significant economic impacts on
12the state and its regional and workforce development needs and
13have documented career opportunities.

14(5) Recommending adult and dislocated worker training policies
15and investments that offer a variety of career opportunities while
16upgrading the skills of California’s workforce. These may include
17training policies and investments pertaining to any of the following:

18(A) Occupational skills training, including training for
19nontraditional employment.

20(B) On-the-job training.

21(C) Incumbent worker training in accordance with Section
223174(d)(4) of Title 29 of the United States Code.

23(D) Programs that combine workplace training with related
24instruction, which may include cooperative education programs.

25(E) Training programs operated by the private sector.

26(F) Skill upgrading and retraining.

27(G) Entrepreneurial training.

28(H) Transitional jobs in accordance with Sectionbegin delete 3174 (d)(5)end delete
29begin insert 3174(d)(5)end insert of Title 29 of the United States Code.

30(I) Job readiness training provided in combination with any of
31the services described in subparagraphs (A) to (H), inclusive.

32(J) Adult education and literacy activities provided in
33combination with any of the services described in subparagraphs
34(A) to (G), inclusive.

35(K) Customized training conducted with a commitment by an
36employer or group of employers to employ an individual upon
37successful completion of the training.

38(L) California high school diplomas from schools accredited
39by the Western Association of Schools and Colleges.

P11   1(e) The identification of regions, including planning regions,
2for the purposes of Section 3121(a) of Title 29 of the United States
3Code, and the designation of local areas under Section 3121 of
4Title 29 of the United States Code, after consultation with local
5boards and chief elected officials.

6(f) The development and continuous improvement of the
7one-stop delivery system in local areas, including providing
8assistance to local boards, one-stop operators, one-stop partners,
9and providers with planning and delivering services, including
10training services and supportive services, to support effective
11delivery of services to workers, job seekers, entrepreneurs, and
12employers.

13(g) Recommending strategies to the Governor for strategic
14training investments of the Governor’s 15-percent discretionary
15funds.

16(h) Developing strategies to support staff training and awareness
17across programs supported under the workforce development
18system.

19(i) The development and updating of comprehensive state
20performance accountability measures, including state adjusted
21levels of performance, to assess the effectiveness of the core
22programs in the state as required under Section 3141(b) of Title
2329 of the United States Code. As part of this process the board
24shall do all of the following:

25(1) Develop a workforce metrics dashboard, to be updated
26annually, that measures the state’s human capital investments in
27workforce development to better understand the collective impact
28of these investments on the labor market. The workforce metrics
29dashboard shall be produced using existing available data and
30resources that are currently collected and accessible to state
31agencies. The board shall convene workforce program partners to
32develop a standardized set of inputs and outputs for the workforce
33metrics dashboard. The workforce metrics dashboard shall do all
34of the following:

35(A) Provide a status report on credential attainment, including
36the attainment of California high school diplomas bybegin delete out of schoolend delete
37begin insert out-of-schoolend insert youth from a school accredited by the Western
38Association of Schools and Colleges, training completion, degree
39attainment, and participant earnings from workforce education and
P12   1training programs. The board shall publish and distribute the final
2report.

3(B) Request an opportunity to present relevant portions of the
4final report, including summary data and performance metrics, at
5least once a calendar year to the State Board of Education and the
6California Community College Board.

7(C) Provide demographic breakdowns, including, to the extent
8possible, race, ethnicity, age, gender, veteran status, wage and
9credential or degree outcomes, and information on workforce
10outcomes in different industry sectors.

11(D) Measure, at a minimum and to the extent feasible with
12existing resources, the performance of the following workforce
13programs: community college career technical education, the
14Employment Training Panel, Title I and Title II of the federal
15Workforce Investment Act of 1998, Trade Adjustment Assistance,
16and state apprenticeship programs.

17(E) Measure participant earnings in California, and to the extent
18feasible, in other states. The Employment Development Department
19shall assist the board by calculating aggregated participant earnings
20using unemployment insurance wage records, without violating
21any applicable confidentiality requirements.

22(2) The State Department of Education is hereby authorized to
23collect the social security numbers of adults participating in adult
24education programs so that accurate participation in those programs
25can be represented in the report card. However, an individual shall
26not be denied program participation if he or she refuses to provide
27a social security number. The State Department of Education shall
28keep this information confidential and shall only use this
29information for tracking purposes, in compliance with all applicable
30state and federal law.

31(3) (A) Participating workforce programs, as specified in
32subparagraph (D) of paragraph (1), shall provide participant data
33in a standardized format to the Employment Development
34Department.

35(B) The Employment Development Department shall aggregate
36data provided by participating workforce programs and shall report
37the data, organized by demographics, earnings, and industry of
38employment, to the board to assist the board in producing the
39annual workforce metrics dashboard.

P13   1(j) The identification and dissemination of information on best
2practices, including best practices for all of the following:

3(1) The effective operation of one-stop centers, relating to the
4use of business outreach, partnerships, and service delivery
5strategies, including strategies for serving individuals with barriers
6to employment.

7(2) The development of effective local boards, which may
8include information on factors that contribute to enabling local
9boards to exceed negotiated local levels of performance, sustain
10fiscal integrity, and achieve other measures of effectiveness.

11(3) Effective training programs that respond to real-time labor
12market analysis, that effectively use direct assessment and prior
13learning assessment to measure an individual’s prior knowledge,
14skills, competencies, and experiences, and that evaluate such skills,
15and competencies for adaptability, to support efficient placement
16into employment or career pathways.

17(k) The development and review of statewide policies affecting
18the coordinated provision of services through the state’s one-stop
19delivery system described in Section 3151(e) of Title 29 of the
20United States Code, including the development of all of the
21following:

22(1) Objective criteria and procedures for use by local boards in
23assessing the effectiveness and continuous improvement of
24one-stop centers described in Section 3151(e) of Title 29 of the
25United States Code.

26(2) Guidance for the allocation of one-stop center infrastructure
27funds under Section 3151(h) of Title 29 of the United States Code.

28(3) Policies relating to the appropriate roles and contributions
29of entities carrying out one-stop partner programs within the
30one-stop delivery system, including approaches to facilitating
31equitable and efficient cost allocation in such a system.

32(l) The development of strategies for technological
33improvements to facilitate access to, and improve the quality of,
34services and activities provided through the one-stop delivery
35system, including such improvements to all of the following:

36(1) Enhance digital literacy skills, as defined in Section 9101
37of Title 20 of the United States Code, referred to in this division
38as “digital literacy skills.”

39(2) Accelerate the acquisition of skills and recognized
40postsecondary credentials by participants.

P14   1(3) Strengthen the professional development of providers and
2workforce professionals.

3(4) Ensure the technology is accessible to individuals with
4disabilities and individuals residing in remote areas.

5(m) The development of strategies for aligning technology and
6data systems across one-stop partner programs to enhance service
7delivery and improve efficiencies in reporting on performance
8accountability measures, including the design and implementation
9of common intake, data collection, case management information,
10and performance accountability measurement and reporting
11processes and the incorporation of local input into such design and
12implementation, to improve coordination of services across
13one-stop partner programs.

14(n) The development of allocation formulas for the distribution
15of funds for employment and training activities for adults, and
16youth workforce investment activities, to local areas as permitted
17under Sections 3163(b)(3) and 3173(b)(3) of Title 29 of the United
18States Code.

19(o) The preparation of the annual reports described in paragraphs
20(1) and (2) of Section 3141(d) of Title 29 of the United States
21Code.

22(p) The development of the statewide workforce and labor
23market information system described in Section 49l-2(e) of Title
2429 of the United States Code.

25(q) The development of other policies as may promote statewide
26objectives for, and enhance the performance of, the workforce
27development system in the state.

28(r) Helping individuals with barriers to employment, including
29low-skill, low-wage workers, the long-term unemployed, and
30members of single-parent households, achieve economic security
31and upward mobility by implementing policies that encourage the
32attainment of marketable skills relevant to current labor market
33trends.

34

SEC. 3.  

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

36

14200.  

(a) The local chief elected officials in a local workforce
37development area shall form, pursuant to guidelines established
38by the Governor and the board, a local workforce development
39board to plan and oversee the workforce investment system.

P15   1(b) The Governor shall periodically certify one local board for
2each local area in the state, following the requirements of the
3federal Workforce Innovation and Opportunity Act of 2014.

4(c) The Governor shall establish, through the California
5Workforce Development Board, standards for certification of
6high-performance local workforce development boards. The
7California Workforce Development Board shall, in consultation
8with representatives from local workforce development boards,
9initiate a stakeholder process to determine the appropriate
10measurable metrics and standards for high-performance
11certification. These standards shall be implemented on or before
12January 1, 2013, and the first certification of high-performance
13boards shall occur on or before July 1, 2013. Certification and
14recertification of each high-performance local workforce
15development board shall occur thereafter midway through the
16implementation of the local and regional plans required by the
17Workforce Innovation and Opportunity Act. In order to meet the
18standards for certification, a high-performance local workforce
19development board shall do all of the following:

20(1) Consistently meet or exceed negotiated performance goals
21for all of the measures in each of the three federal Workforce
22Innovation and Opportunity Act of 2014 customer groups, which
23consist of adults, dislocated workers, and youth, includingbegin delete out of
24schoolend delete
begin insert out-of-schoolend insert youth.

25(2) Consistently meet the statutory requirements of this division.

26(3) Develop and implement local policies and a local strategic
27plan that meets all of the following requirements:

28(A) Meets all local and regional planning requirements specified
29under the federal Workforce Innovation and Development Act of
302014.

31(B) Is consistent with the California Workforce Development
32Board State Plan.

33(C) Describes the actions that the board shall take to implement
34local policies in furtherance of its goals.

35(D) Serves as a written account of intended future courses of
36action aimed at achieving the specific goals of the local and state
37board within a specific timeframe.

38(E) Explains what needs to be done, by whom, and when each
39action is required to occur in order to meet those goals.

P16   1(4) Demonstrate that the local planning process involves key
2stakeholders, including the major employers and industry groups
3in the relevant regional economy and organized labor.

4(5) Demonstrate that the local planning process takes into
5account the entire workforce training pipeline for the relevant
6regional economy, including schools operating with Department
7of Labor partners and other partners in K-12 education, career
8technical education, the community college system, other
9postsecondary institutions, and other local workforce development
10areas operating in a relevant regional economy.

11(6) Demonstrate that the local planning process and plan are
12data driven, and that policy decisions at the local level are evidence
13based. Each high-performance local workforce development board
14shall use labor market data to develop and implement the local
15plan, taking care to steer resources into programs and services that
16are relevant to the needs of each workforce development area’s
17relevant regional labor market and high-wage industry sectors.
18Local workforce development areas shall demonstrate an
19evidence-based approach to policymaking by establishing
20performance benchmarks and targets to measure progress toward
21local goals and objectives.

22(7) Demonstrate investment in workforce initiatives, and,
23specifically, training programs that promote skills development
24and career ladders relevant to the needs of each workforce
25investment area’s regional labor market and high-wage industry
26sectors.

27(8) Establish a youth strategy aligned with the needs of each
28workforce investment area’s regional labor market and high-wage
29industry sectors. This strategy shall also address workforce
30preparation forbegin delete out of schoolend deletebegin insert out-of-schoolend insert youth and other
31individuals facing barriers to employment.

32(9) Establish a business service plan that integrates local
33business involvement with workforce initiatives. This plan at a
34minimum shall include all of the following:

35(A) Efforts to partner with businesses to identify the workforce
36training and educational barriers to attract jobs in the relevant
37regional economy, existing skill gaps reducing the competitiveness
38of local businesses in the relevant regional economies, and potential
39emerging industries that would likely contribute to job growth in
P17   1the relevant regional economy if investments were made for
2training and educational programs.

3(B) An electronic system for both businesses and job seekers
4to communicate about job opportunities.

5(C) A subcommittee of the local workforce development board
6that further develops and makes recommendations for the business
7service plan for each local workforce development board in an
8effort to increase employer involvement in the activities of the
9local workforce development board. The subcommittee members
10should be comprised of business representatives on the local
11workforce development board who represent both the leading
12industries and employers in the relevant regional economy and
13potential emerging sectors that have significant potential to
14contribute to job growth in the relevant regional economy if
15investments were made for training and educational programs.

16(d) The Governor and the Legislature, as part of the annual
17budget process, in consultation with the California Workforce
18Development Board, shall annually reserve a portion of the
1915-percent discretionary fund made available pursuant to the
20federal Workforce Innovation and Opportunity Act of 2014 for
21the purpose of providing performance incentives to
22high-performance local workforce development boards. The
23remaining discretionary funds shall continue to be available for
24other discretionary purposes as provided for in the federal
25Workforce Innovation and Opportunity Act of 2014.

26(e) Only a workforce development board that is certified as a
27high-performance local workforce development board by the
28California Workforce Development Board shall be eligible to
29receive any incentive money reserved for high-performance local
30workforce development boards, as described in subdivision (d).
31A board that is not certified as a high-performance local workforce
32development board shall not receive any portion of the money
33reserved for high-performance local workforce development
34boards, as described in subdivision (d).

35(f) The California Workforce Development Board shall establish
36a policy for the allocation of incentive moneys to high-performance
37local workforce development boards.

38(g) To the extent permitted by the Workforce Innovation and
39Opportunity Act of 2014, the California Workforce Development
40Board may consider the utilization of incentive grants, or direct
P18   1assistance, or both, to local workforce development boards for the
2purposes of this section.

3(h) There shall not be a requirement to set aside federal
4Workforce Innovation and Opportunity Act of 2014 funds for the
5purposes of subdivision (d), (e), (f), or (g) in years when the federal
6government significantly reduces the share of federal Workforce
7Innovation and Opportunity Act of 2014 funds appropriated to the
8state for statewide discretionary purposes below the federal
9statutory amount of 15 percent.

10

SEC. 4.  

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

12

14221.  

The local plan shall include all of the following:

13(a) A description of the strategic planning elements consisting
14of each of the following:

15(1) An analysis of the regional economic conditions, including,
16existing and emerging in-demand industry sectors and occupations
17and the employment needs of employers in those industry sectors
18and occupations.

19(2) An analysis of the knowledge and skills needed to meet the
20employment needs of the employers in the region, including
21employment needs in in-demand industry sectors and occupations.

22(3) An analysis of the workforce in the region, including current
23 labor force employment and unemployment data, and information
24on labor market trends, and the educational and skill levels of the
25workforce in the region, including individuals with barriers to
26employment.

27(4) An analysis of the workforce development activities,
28including education and training, in the region, including an
29analysis of the strengths and weaknesses of such services, and the
30capacity to provide such services, to address the identified
31education and skill needs of the workforce and the employment
32needs of employers in the region.

33(5) An analysis of education programs available to begin deleteout of school end delete
34begin insertout-of-school end insertyouth to increase learning gains and earn a diploma
35from a high school accredited by the Western Association of
36Schools and Colleges in partnership with one-stop partners and
37other core programs.

38(6) A description of the local board's strategic vision and goals
39for preparing an educated and skilled workforce, including youth
40and individuals with barriers to employment, including goals
P19   1relating to the performance accountability measures based on
2primary indicators of performance described in Section
33141(b)(2)(A) of Title 29 of the United States Code in order to
4support regional economic growth and economic self-sufficiency.

5(7) Taking into account analyses described in paragraphs (1) to
6(5), inclusive, a strategy to work with the entities that carry out
7the core programs to align resources available to the local area, to
8achieve the strategic vision and goals described in paragraph (6).

9(b) A description of the workforce development system in the
10local area that identifies the programs that are included in that
11system and how the local board will work with the entities carrying
12out core programs and other workforce development programs to
13support alignment to provide services, including programs of study
14authorized under the Carl D. Perkins Career and Technical
15Education Act of 2006 (20 U.S.C. 2301 et seq.), that support the
16strategy identified in the State Plan under Section 3112(b)(1)(E)
17of the Title 29 of the United States Code.

18(c) A description of how the local board, working with the
19entities carrying out core programs, will expand access to
20employment, training, education, and supportive services for
21eligible individuals, particularly eligible individuals with barriers
22to employment, including how the local board will facilitate the
23development of career pathways and co-enrollment, as appropriate,
24in core programs, and improve access to activities leading to a
25recognized postsecondary credential, including a credential that
26is an industry-recognized certificate or certification, portable, and
27stackable.

28(d) A description of the strategies and services that will be used
29in the local area in order to facilitate engagement of employers,
30including small employers and employers in in-demand industry
31sectors and occupations, in workforce development programs,
32support a local workforce development system that meets the needs
33of businesses in the local area, better coordinate workforce
34development programs and economic development, and strengthen
35linkages between the one-stop delivery system and unemployment
36insurance programs. This may include the implementation of
37initiatives such as incumbent worker training programs, on-the-job
38training programs, customized training programs, industry and
39sector strategies, career pathways initiatives, utilization of effective
40business intermediaries, and other business services and strategies,
P20   1designed to meet the needs of employers in the corresponding
2region in support of the strategy described in paragraph (5) of
3 subdivision (a).

4(e) A description of how the local board will coordinate
5workforce investment activities carried out in the local area with
6economic development activities carried out in the region in which
7the local area is located, or planning region, and promote
8entrepreneurial skills training and microenterprise services.

9(f) A description of the one-stop delivery system in the local
10area, including all of the following:

11(1) A description of how the local board will ensure the
12continuous improvement of eligible providers of services through
13the system and ensure that such providers meet the employment
14needs of local employers, and workers and jobseekers.

15(2) A description of how the local board will facilitate access
16to services provided through the one-stop delivery system,
17including in remote areas, through the use of technology and
18through other means.

19(3) A description of how entities within the one-stop delivery
20system, including one-stop operators and the one-stop partners,
21will comply with Section 3248 of Title 29 of the United States
22Code, if applicable, and applicable provisions of the Americans
23with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.)
24regarding the physical and programmatic accessibility of facilities,
25programs and services, technology, and materials for individuals
26with disabilities, including providing staff training and support for
27addressing the needs of individuals with disabilities.

28(4) A description of the roles and resource contributions of the
29one-stop partners.

30(g) A description and assessment of the type and availability of
31adult and dislocated worker employment and training activities in
32the local area.

33(h) A description of how the local board will coordinate
34workforce investment activities carried out in the local area with
35statewide rapid response activities, as described in Section
363174(a)(2)(A) of Title 29 of the United States Code.

37(i) A description and assessment of the type and availability of
38youth workforce investment activities in the local area, including
39activities for youth who are individuals with disabilities, which
P21   1description and assessment shall include an identification of
2successful models of such youth workforce investment activities.

3(j) A description of how the local board will coordinate
4education and workforce investment activities carried out in the
5local area with relevant secondary and postsecondary education
6programs and activities to coordinate strategies, enhance services,
7and avoid duplication of services.

8(k) A description of how the local board will coordinate
9workforce investment activities carried out under this article in
10the local area with the provision of transportation, including public
11transportation, and other appropriate supportive services in the
12local area.

13(l) A description of plans and strategies for, and assurances
14concerning, maximizing coordination of services provided by the
15state employment service under the Wagner-Peyser Act (29 U.S.C.
16Sec. 49 et seq.) and services provided in the local area through the
17one-stop delivery system, to improve service delivery and avoid
18duplication of services.

19(m) A description of how the local board will coordinate
20workforce investment activities carried out in the local area with
21the provision of adult education and literacy activities in the local
22area, including a description of how the local board will carry out,
23consistent with subparagraphs (A) and (B)(i) of Section
243122(d)(11) of Title 29 of the United States Code and Section
253322 of Title 29 of the United States Code, the review of local
26applications.

27(n) A description of the replicated cooperative agreements, as
28defined in Section 3122(d)(11) of Title 29 of the United States
29Code between the local board or other local entities described in
30Section 101(a)(11)(B) of the Rehabilitation Act of 1973 (29 U.S.C.
31Sec. 721(a)(11)(B)) and the local office of a designated state agency
32or designated state unit administering programs carried out under
33Title I of that act, other than Section 112 or Part C of that Title (29
34U.S.C. Secs. 732 and 741) and subject to Section 3151(f) of Title
3529 of the United States Code, in accordance with Section
36101(a)(11) of the Rehabilitation Act of 1973 (29 U.S.C. Sec.
37721(a)(11)) with respect to efforts that will enhance the provision
38of services to individuals with disabilities and to other individuals,
39such as cross training of staff, technical assistance, use and sharing
P22   1of information, cooperative efforts with employers, and other
2efforts at cooperation, collaboration, and coordination.

3(o) An identification of the entity responsible for the disbursal
4of grant funds described in Section 3122(d)(12)(B)(i)(III) of Title
529 of the United States Code, as determined by the chief elected
6official or the Governor under Section 3122(d)(12)(B)(i) of Title
729 of the United States Code.

8(p) A description of the competitive process to be used to award
9the subgrants and contracts in the local area for activities carried
10out pursuant to this act.

11(q) A description of the local levels of performance negotiated
12with the Governor and chief elected official pursuant to Section
133141(c) of Title 29 of the United States Code, to be used to measure
14the performance of the local area and to be used by the local board
15for measuring the performance of the local fiscal agent, where
16appropriate, eligible providers, and the one-stop delivery system,
17in the local area.

18(r) A description of the actions the local board will take toward
19becoming or remaining a high-performing board, consistent with
20the factors developed by the board pursuant to Section 3111(d)(6)
21of Title 29 of the United States Code. This federal requirement is
22separate and apart from state standards pertaining to the
23certification of high-performance local workforce development
24boards.

25(s) A description of how training services will be provided in
26accordance with Section 3174(c)(3)(G) of Title 29 of the United
27States Code, including, if contracts for the training services will
28be used, how the use of such contracts will be coordinated with
29the use of individual training accounts and how the local board
30will ensure informed customer choice in the selection of training
31programs regardless of how the training services are to be provided.

32(t) A description of the process used by the local board,
33consistent with subsection (d), to provide an opportunity for public
34comment, including comment by representatives of businesses and
35comment by representatives of labor organizations, and input into
36the development of the local plan, prior to submission of the plan.

37(u) A description of how one-stop centers are implementing and
38transitioning to an integrated, technology-enabled intake and case
39 management information system for programs carried out under
40this act and programs carried out by one-stop partners.

P23   1(v) Any other information as the Governor may require.

2

SEC. 5.  

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

4

14230.  

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

5(1) California deliver comprehensive workforce services to
6jobseekers, students, and employers through a system of one-stop
7career centers.

8(2) Services and resources target high-wage industry sectors
9with career advancement opportunities.

10(3) Universal access to career services shall be available to adult
11residents regardless of income, education, employment barriers,
12or other eligibility requirements. Career services shall include, but
13not be limited to:

14(A) Outreach, intake, and orientation to services available
15through the one-stop delivery system.

16(B) Initial assessment of skill levels, aptitudes, abilities, and
17supportive service needs.

18(C) Job search and placement assistance.

19(D) Career counseling, where appropriate.

20(E) Provision of labor market information.

21(F) Provision of program performance and cost information on
22eligible providers of training services and local area performance
23measures.

24(G) Provision of information on supportive services in the local
25area.

26(H) Provision of information on the filing of claims for
27unemployment compensation benefits and unemployment
28 compensation disability benefits.

29(I) Assistance in establishing eligibility for welfare-to-work
30activities pursuant to Section 11325.8 of the Welfare and
31Institutions Code, and financial aid assistance.

32(J) Comprehensive and specialized assessments of skill levels
33and service needs, including learning disability screening.

34(K) Development of individual employment plans.

35(L) Counseling.

36(M) Career planning.

37(N) Short-term prevocational services to prepare an individual
38for training or employment.

39(4) State and federally funded workforce education, training,
40and employment programs shall be integrated in the one-stop
P24   1delivery system to achieve universal access to the career services
2described in paragraph (3).

3(5) Training services shall be made available to individuals who
4have met the requirements for career services, have been unable
5to obtain or retain employment through career services, are in need
6of training services to obtain or retain employment that leads to
7economic self-sufficiency or wages comparable to, or higher than,
8wages from previous employment, have the skills and qualifications
9to successfully participate in the training, and have selected a
10program of services directly linked to occupations in demand in
11the local or regional area. Training services may include:

12(A) Occupational skill training including training for
13nontraditional employment.

14(B) On-the-job training.

15(C) Programs that combine workplace training with related
16instruction.

17(D) Training programs operated by the private sector.

18(E) Skill upgrading and retraining.

19(F) Entrepreneurial training.

20(G) Incumbent worker training, in accordance with Section
21134(d)(4) of the Workforce Innovation and Opportunity Act.

22(H) Transitional jobs, in accordance with Section 134(d)(5) of
23the Workforce Innovation and Opportunity Act.

24(I) Job readiness training, provided in combination with any
25service under subparagraphs (A) to (H), inclusive.

26(J) Adult education and literacy activities, including vocational
27English as a second language, provided in combination with
28subparagraphs (A) through (G), inclusive.

29(K) Customized training conducted by an employer or a group
30of employers or a labor-management training partnership with a
31commitment to employ an individual upon completion of the
32training.

33(6) As prescribed in the Workforce Innovation and Opportunity
34Act, adult recipients of public assistance, other low-income adults,
35and individuals who are basic skills deficient, including out of
36school youth, shall be given priority for training services and career
37services described in Section 134(d)(2)(A)(xii) of the Workforce
38Innovation and Opportunity Act.

39(b) Each local workforce development board shall establish at
40least one full service one-stop career center in the local workforce
P25   1development area. Each full service one-stop career center shall
2have all entities required to be partners in Section 3151 of Title
329 of the United States Code as partners and shall provide
4jobseekers with integrated employment, education, training, and
5job search services. Additionally, employers will be provided with
6access to comprehensive career and labor market information, job
7placement, economic development information, performance and
8program information on service providers, and other such services
9as the businesses in the community may require.

10(c) Local boards may also establish affiliated and specialized
11centers, as defined in the Workforce Innovation and Opportunity
12Act of 2014, which shall act as portals into the larger local one-stop
13system, but are not required to have all of the partners specified
14for full service one-stop centers.

15(d) Each local board shall develop a policy for identifying
16individuals who, because of their skills or experience, should be
17referred immediately to training services. To the extent permitted
18under the Workforce Innovation and Opportunity Act of 2014, this
19policy, along with the methods for referral of individuals between
20the one-stop operators and the one-stop partners for appropriate
21services and activities, shall be contained in the memorandum of
22understanding between the local board and the one-stop partners.

23(e) The California Workforce Development Board and each
24local board shall ensure that programs and services funded by the
25Workforce Innovation and Opportunity Act of 2014 and directed
26to apprenticeable occupations, including preapprenticeship training,
27are conducted, to the maximum extent feasible, in coordination
28with one or more apprenticeship programs approved by the
29Division of Apprenticeship Standards for the occupation and
30geographic area. The California Workforce Development Board
31and each local board shall also develop a policy of fostering
32collaboration between community colleges and approved
33apprenticeship programs in the geographic area to provide
34preapprenticeship training, apprenticeship training, and continuing
35education in apprenticeable occupations through the approved
36apprenticeship programs.

37(f) In light of California’s diverse population, each one-stop
38career center should have the capacity to provide the appropriate
39services to the full range of languages and cultures represented in
40the community served by the one-stop career center.

P26   1

SEC. 6.  

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

3

14510.  

(a) To the extent permitted by federal law, school
4districts, county offices of education, and secondary schools that
5provide instruction exclusively in partnership with any of the
6entities or programs described in subdivision (b) are eligible to
7apply to local workforce development boards to provide basic
8skills training and skills necessary for attaining a secondary school
9diploma. However, the boards shall prioritize programs that
10specialize in a secondary school diploma from a school accredited
11by the Western Association of Schools and Colleges.

12(b) Pursuant to subdivision (a), entities or programs include
13programs that servebegin delete out of schoolend deletebegin insert out-of-schoolend insert youth through
14exclusive partnerships between secondary schools and any of the
15following:

16(1) The California Workforce Development Board or local
17workforce development board.

18(2) Federally affiliated Youth Build programs.

19(3) Federal job corps training or instruction provided pursuant
20to a memorandum of understanding with the federal provider.

21(4) The California Conservation Corps or local conservation
22corps certified by the California Conservation Corps pursuant to
23Section 14406 or 14507.5 of the Public Resources Code.

24

SEC. 7.  

If the Commission on State Mandates determines that
25this act contains costs mandated by the state, reimbursement to
26local agencies and school districts for those costs shall be made
27pursuant to Part 7 (commencing with Section 17500) of Division
284 of Title 2 of the Government Code.



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