Amended in Senate June 13, 2016

Amended in Assembly May 4, 2016

Amended in Assembly April 26, 2016

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)

(Coauthor: Assembly Member Brown)

February 19, 2016


An act to amend Sections 14005, 14013, 14200, 14206, 14221, 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 youths 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 a school operating in partnership with United States Department of Labor programs, 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 requires the local workforce development boards to, with representatives of secondary and postsecondary education programs, lead efforts in the local area to develop and implement career pathways within the local area. 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 to out-of-school youth and schools operating in partnership with United States Department of Labor programs, as specified, and, for the purposes of that requirement on local workforce development boards to lead efforts to develop and implement career pathways, provide that secondary and postsecondary education programs include specified entities. The bill would instead provide that school districts, county offices of education, and schools operating in partnership with United States Department of Labor 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.

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

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) Out-of-school youth.

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) “Out-of-school youth” means an individual who meets the
16definition in Section 3164(a)(1)(B) of Title 29 of the United States
17Code.

18(s) “School operating in partnership with United States
19Department of Labor programs” means a school that serves
20out-of-school youth through a partnership that includes, but is not
21limited to, any of the following:

22(1) The California Workforce Development Board or local
23workforce development board.

24(2) Federally affiliated Youth Build programs.

25(3) Federal job corps training or instruction provided pursuant
26to a memorandum of understanding with the federal provider.

27(4) The California Conservation Corp or local conservation
28corps certified by the California Conservation Corp pursuant to
29Section 14406 or 14507.5 of the Public Resources Code.

30

SEC. 2.  

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

32

14013.  

The board shall assist the Governor in the following:

33(a) Promoting the development of a well-educated and highly
34skilled 21st century workforce.

35(b) Developing, implementing, and modifying the State Plan.
36The State Plan shall serve as the comprehensive framework and
37coordinated plan for the aligned investment of all federal and state
38workforce training and employment services funding streams and
39programs. To the extent feasible and when appropriate, the State
40Plan should reinforce and work with adult education and career
P9    1technical education efforts that are responsive to labor market
2trends.

3(c) The review of statewide policies, of statewide programs,
4and of recommendations on actions that should be taken by the
5state to align workforce, education, training, and employment
6funding programs in the state in a manner that supports a
7comprehensive and streamlined workforce development system
8in the state, including the review and provision of comments on
9the State Plan, if any, for programs and activities of one-stop
10partners that are not core programs.

11(d) Developing and continuously improving the statewide
12workforce investment system, including:

13(1) The identification of barriers and means for removing
14barriers to better coordinate, align, and avoid duplication among
15the programs and activities carried out through the system.

16(2) The development of strategies to support the use of career
17pathways for the purpose of providing individuals, including
18low-skilled adults, youth, and individuals with barriers to
19employment, including individuals with disabilities, with workforce
20investment activities, education, and supportive services to enter
21or retain employment. To the extent permissible under state and
22federal laws, these policies and strategies should support linkages
23between kindergarten and grades 1 to 12, inclusive, and community
24college educational systems in order to help secure educational
25and career advancement. These policies and strategies may be
26implemented using a sector strategies framework and should
27ultimately lead to placement in a job providing economic security
28or job placement in an entry-level job that has a well-articulated
29career pathway or career ladder to a job providing economic
30security.

31(3) The development of strategies for providing effective
32outreach to and improved access for individuals, including
33individuals with barriers to employment, and employers who could
34benefit from services provided through the workforce development
35system.

36(4) The development and expansion of strategies for meeting
37the needs of employers, workers, and jobseekers, particularly
38through industry or sector partnerships related to in-demand
39industry sectors and occupations, including policies targeting
40resources to competitive and emerging industry sectors and industry
P10   1clusters that provide economic security and are either high-growth
2sectors or critical to California’s economy, or both. These industry
3sectors and clusters shall have significant economic impacts on
4the state and its regional and workforce development needs and
5have documented career opportunities.

6(5) Recommending adult and dislocated worker training policies
7and investments that offer a variety of career opportunities while
8upgrading the skills of California’s workforce. These may include
9training policies and investments pertaining to any of the following:

10(A) Occupational skills training, including training for
11nontraditional employment.

12(B) On-the-job training.

13(C) Incumbent worker training in accordance with Section
143174(d)(4) of Title 29 of the United States Code.

15(D) Programs that combine workplace training with related
16instruction, which may include cooperative education programs.

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

18(F) Skill upgrading and retraining.

19(G) Entrepreneurial training.

20(H) Transitional jobs in accordance with Section 3174(d)(5) of
21Title 29 of the United States Code.

22(I) Job readiness training provided in combination with any of
23the services described in subparagraphs (A) to (H), inclusive.

24(J) Adult education and literacy activities provided in
25combination with any of the services described in subparagraphs
26(A) to (G), inclusive.

27(K) Customized training conducted with a commitment by an
28employer or group of employers to employ an individual upon
29successful completion of the training.

30(e) The identification of regions, including planning regions,
31for the purposes of Section 3121(a) of Title 29 of the United States
32Code, and the designation of local areas under Section 3121 of
33Title 29 of the United States Code, after consultation with local
34boards and chief elected officials.

35(f) The development and continuous improvement of the
36one-stop delivery system in local areas, including providing
37assistance to local boards, one-stop operators, one-stop partners,
38and providers with planning and delivering services, including
39training services and supportive services, to support effective
P11   1delivery of services to workers, job seekers, entrepreneurs, and
2employers.

3(g) Recommending strategies to the Governor for strategic
4training investments of the Governor’s 15-percent discretionary
5funds.

6(h) Developing strategies to support staff training and awareness
7across programs supported under the workforce development
8system.

9(i) The development and updating of comprehensive state
10performance accountability measures, including state adjusted
11levels of performance, to assess the effectiveness of the core
12programs in the state as required under Section 3141(b) of Title
1329 of the United States Code. As part of this process the board
14shall do all of the following:

15(1) Develop a workforce metrics dashboard, to be updated
16annually, that measures the state’s human capital investments in
17workforce development to better understand the collective impact
18of these investments on the labor market. The workforce metrics
19dashboard shall be produced using existing available data and
20resources that are currently collected and accessible to state
21agencies. The board shall convene workforce program partners to
22develop a standardized set of inputs and outputs for the workforce
23metrics dashboard. The workforce metrics dashboard shall do all
24of the following:

25(A) Provide a status report on credential attainment, including
26training completion, degree attainment, and participant earnings
27from workforce education and training programs. The board shall
28publish and distribute the final report.

29(B) Request an opportunity to present relevant portions of the
30final report, including summary data and performance metrics, at
31least once a calendar year to the State Board of Education and the
32California Community College Board.

33(C) Provide demographic breakdowns, including, to the extent
34possible, race, ethnicity, age, gender, veteran status, wage and
35credential or degree outcomes, and information on workforce
36outcomes in different industry sectors.

37(D) Measure, at a minimum and to the extent feasible with
38existing resources, the performance of the following workforce
39programs: community college career technical education, the
40Employment Training Panel, Title I and Title II of the federal
P12   1Workforce Investment Act of 1998, Trade Adjustment Assistance,
2and state apprenticeship programs.

3(E) Measure participant earnings in California, and to the extent
4feasible, in other states. The Employment Development Department
5shall assist the board by calculating aggregated participant earnings
6using unemployment insurance wage records, without violating
7any applicable confidentiality requirements.

8(2) The State Department of Education is hereby authorized to
9collect the social security numbers of adults participating in adult
10education programs so that accurate participation in those programs
11can be represented in the report card. However, an individual shall
12not be denied program participation if he or she refuses to provide
13a social security number. The State Department of Education shall
14keep this information confidential and shall only use this
15information for tracking purposes, in compliance with all applicable
16state and federal law.

17(3) (A) Participating workforce programs, as specified in
18subparagraph (D) of paragraph (1), shall provide participant data
19in a standardized format to the Employment Development
20Department.

21(B) The Employment Development Department shall aggregate
22data provided by participating workforce programs and shall report
23the data, organized by demographics, earnings, and industry of
24employment, to the board to assist the board in producing the
25annual workforce metrics dashboard.

26(j) The identification and dissemination of information on best
27practices, including best practices for all of the following:

28(1) The effective operation of one-stop centers, relating to the
29use of business outreach, partnerships, and service delivery
30strategies, including strategies for serving individuals with barriers
31to employment.

32(2) The development of effective local boards, which may
33include information on factors that contribute to enabling local
34boards to exceed negotiated local levels of performance, sustain
35fiscal integrity, and achieve other measures of effectiveness.

36(3) Effective training programs that respond to real-time labor
37market analysis, that effectively use direct assessment and prior
38learning assessment to measure an individual’s prior knowledge,
39skills, competencies, and experiences, and that evaluate such skills,
P13   1and competencies for adaptability, to support efficient placement
2into employment or career pathways.

3(k) The development and review of statewide policies affecting
4the coordinated provision of services through the state’s one-stop
5delivery system described in Section 3151(e) of Title 29 of the
6United States Code, including the development of all of the
7following:

8(1) Objective criteria and procedures for use by local boards in
9assessing the effectiveness and continuous improvement of
10one-stop centers described in Section 3151(e) of Title 29 of the
11United States Code.

12(2) Guidance for the allocation of one-stop center infrastructure
13funds under Section 3151(h) of Title 29 of the United States Code.

14(3) Policies relating to the appropriate roles and contributions
15of entities carrying out one-stop partner programs within the
16one-stop delivery system, including approaches to facilitating
17equitable and efficient cost allocation in such a system.

18(l) The development of strategies for technological
19improvements to facilitate access to, and improve the quality of,
20services and activities provided through the one-stop delivery
21system, including such improvements to all of the following:

22(1) Enhance digital literacy skills, as defined in Section 9101
23of Title 20 of the United States Code, referred to in this division
24as “digital literacy skills.”

25(2) Accelerate the acquisition of skills and recognized
26postsecondary credentials by participants.

27(3) Strengthen the professional development of providers and
28workforce professionals.

29(4) Ensure the technology is accessible to individuals with
30disabilities and individuals residing in remote areas.

31(m) The development of strategies for aligning technology and
32data systems across one-stop partner programs to enhance service
33delivery and improve efficiencies in reporting on performance
34accountability measures, including the design and implementation
35of common intake, data collection, case management information,
36and performance accountability measurement and reporting
37processes and the incorporation of local input into such design and
38implementation, to improve coordination of services across
39one-stop partner programs.

P14   1(n) The development of allocation formulas for the distribution
2of funds for employment and training activities for adults, and
3youth workforce investment activities, to local areas as permitted
4under Sections 3163(b)(3) and 3173(b)(3) of Title 29 of the United
5States Code.

6(o) The preparation of the annual reports described in paragraphs
7(1) and (2) of Section 3141(d) of Title 29 of the United States
8Code.

9(p) The development of the statewide workforce and labor
10market information system described in Section 49l-2(e) of Title
1129 of the United States Code.

12(q) The development of other policies as may promote statewide
13objectives for, and enhance the performance of, the workforce
14development system in the state.

15(r) Helping individuals with barriers to employment, including
16low-skill, low-wage workers, the long-term unemployed, and
17members of single-parent households, achieve economic security
18and upward mobility by implementing policies that encourage the
19attainment of marketable skills relevant to current labor market
20trends.

21

SEC. 3.  

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

23

14200.  

(a) The local chief elected officials in a local workforce
24development area shall form, pursuant to guidelines established
25by the Governor and the board, a local workforce development
26board to plan and oversee the workforce investment system.

27(b) The Governor shall periodically certify one local board for
28each local area in the state, following the requirements of the
29federal Workforce Innovation and Opportunity Act of 2014.

30(c) The Governor shall establish, through the California
31Workforce Development Board, standards for certification of
32high-performance local workforce development boards. The
33California Workforce Development Board shall, in consultation
34with representatives from local workforce development boards,
35initiate a stakeholder process to determine the appropriate
36measurable metrics and standards for high-performance
37certification. These standards shall be implemented on or before
38January 1, 2013, and the first certification of high-performance
39boards shall occur on or before July 1, 2013. Certification and
40recertification of each high-performance local workforce
P15   1development board shall occur thereafter midway through the
2implementation of the local and regional plans required by the
3Workforce Innovation and Opportunity Act. In order to meet the
4standards for certification, a high-performance local workforce
5development board shall do all of the following:

6(1) Consistently meet or exceed negotiated performance goals
7for all of the measures in each of the three federal Workforce
8Innovation and Opportunity Act of 2014 customer groups, which
9consist of adults, dislocated workers, and youth.

10(2) Consistently meet the statutory requirements of this division.

11(3) Develop and implement local policies and a local strategic
12plan that meets all of the following requirements:

13(A) Meets all local and regional planning requirements specified
14under the federal Workforce Innovation and Opportunity Act of
152014.

16(B) Is consistent with the California Workforce Development
17Board State Plan.

18(C) Describes the actions that the board shall take to implement
19local policies in furtherance of its goals.

20(D) Serves as a written account of intended future courses of
21action aimed at achieving the specific goals of the local and state
22board within a specific timeframe.

23(E) Explains what needs to be done, by whom, and when each
24action is required to occur in order to meet those goals.

25(4) Demonstrate that the local planning process involves key
26stakeholders, including the major employers and industry groups
27in the relevant regional economy and organized labor.

28(5) Demonstrate that the local planning process takes into
29account the entire workforce training pipeline, including partners
30in K-12 education, schools operating in partnership with United
31States Department of Labor programs, career technical education,
32the community college system, other postsecondary institutions,
33and other local workforce development areas operating in a relevant
34regional economy.

35(6) Demonstrate that the local planning process and plan are
36data driven, and that policy decisions at the local level are evidence
37based. Each high-performance local workforce development board
38shall use labor market data to develop and implement the local
39plan, taking care to steer resources into programs and services that
40are relevant to the needs of each workforce development area’s
P16   1relevant regional labor market and high-wage industry sectors.
2Local workforce development areas shall demonstrate an
3evidence-based approach to policymaking by establishing
4performance benchmarks and targets to measure progress toward
5local goals and objectives.

6(7) Demonstrate investment in workforce initiatives, and,
7specifically, training programs that promote skills development
8and career ladders relevant to the needs of each workforce
9investment area’s regional labor market and high-wage industry
10sectors.

11(8) Establish a youth strategy, including out-of-school youth,
12aligned with the needs of each workforce investment area’s regional
13labor market and high-wage industry sectors.

14(9) Establish a business service plan that integrates local
15business involvement with workforce initiatives. This plan at a
16minimum shall include all of the following:

17(A) Efforts to partner with businesses to identify the workforce
18training and educational barriers to attract jobs in the relevant
19regional economy, existing skill gaps reducing the competitiveness
20of local businesses in the relevant regional economies, and potential
21emerging industries that would likely contribute to job growth in
22the relevant regional economy if investments were made for
23training and educational programs.

24(B) An electronic system for both businesses and job seekers
25to communicate about job opportunities.

26(C) A subcommittee of the local workforce development board
27that further develops and makes recommendations for the business
28service plan for each local workforce development board in an
29effort to increase employer involvement in the activities of the
30local workforce development board. The subcommittee members
31should be comprised of business representatives on the local
32workforce development board who represent both the leading
33industries and employers in the relevant regional economy and
34potential emerging sectors that have significant potential to
35contribute to job growth in the relevant regional economy if
36investments were made for training and educational programs.

37(d) The Governor and the Legislature, as part of the annual
38budget process, in consultation with the California Workforce
39Development Board, shall annually reserve a portion of the
4015-percent discretionary fund made available pursuant to the
P17   1federal Workforce Innovation and Opportunity Act of 2014 for
2the purpose of providing performance incentives to
3high-performance local workforce development boards. The
4remaining discretionary funds shall continue to be available for
5other discretionary purposes as provided for in the federal
6Workforce Innovation and Opportunity Act of 2014.

7(e) Only a workforce development board that is certified as a
8high-performance local workforce development board by the
9California Workforce Development Board shall be eligible to
10receive any incentive money reserved for high-performance local
11workforce development boards, as described in subdivision (d).
12A board that is not certified as a high-performance local workforce
13development board shall not receive any portion of the money
14reserved for high-performance local workforce development
15boards, as described in subdivision (d).

16(f) The California Workforce Development Board shall establish
17a policy for the allocation of incentive moneys to high-performance
18local workforce development boards.

19(g) To the extent permitted by the Workforce Innovation and
20Opportunity Act of 2014, the California Workforce Development
21Board may consider the utilization of incentive grants, or direct
22assistance, or both, to local workforce development boards for the
23purposes of this section.

24(h) There shall not be a requirement to set aside federal
25Workforce Innovation and Opportunity Act of 2014 funds for the
26purposes of subdivision (d), (e), (f), or (g) in years when the federal
27government significantly reduces the share of federal Workforce
28Innovation and Opportunity Act of 2014 funds appropriated to the
29state for statewide discretionary purposes below the federal
30statutory amount of 15 percent.

31

SEC. 4.  

Section 14206 of the Unemployment Insurance Code
32 is amended to read:

33

14206.  

Consistent with the requirements of the Workforce
34Innovation and Opportunity Act, the local board shall do all of the
35following:

36(a) In partnership with the chief elected official for the local
37area involved, develop and submit a local plan to the Governor
38that meets the requirements of the Workforce Innovation and
39Opportunity Act. If the local area is part of a planning region that
40includes other local areas, the local board shall collaborate with
P18   1the other local boards and chief elected officials from such other
2local areas in the preparation and submission of a regional plan as
3described in the Workforce and Innovation and Opportunity Act.

4(b) In order to assist in the development and implementation of
5the local plan, the local board shall do all of the following:

6(1) Carry out analyses of the economic conditions in the region,
7the needed knowledge and skills for the region, the workforce in
8the region, and workforce development activities, including
9education and training, in the region described in Section
103123(b)(1)(D) of Title 29 of the United States Code, and regularly
11update such information.

12(2) Assist the Governor in developing the statewide workforce
13and labor market information system described in Section 15(e)
14of the Wagner-Peyser Act (29 U.S.C. Sec. 49l-2(e)), specifically
15in the collection, analysis, and utilization of workforce and labor
16market information for the region.

17(3) Conduct such other research, data collection, and analysis
18related to the workforce needs of the regional economy as the
19board, after receiving input from a wide array of stakeholders,
20determines to be necessary to carry out its functions.

21(c) Convene local workforce development system stakeholders
22to assist in the development of the local plan under Section 3123
23of Title 29 of the United States Code and in identifying nonfederal
24expertise and resources to leverage support for workforce
25development activities. The local board, including standing
26committees, may engage such stakeholders in carrying out the
27functions described in this subdivision.

28(d) Lead efforts to engage with a diverse range of employers
29and with entities in the region involved to do all of the following:

30(1) Promote business representation, particularly representatives
31with optimal policymaking or hiring authority from employers
32whose employment opportunities reflect existing and emerging
33employment opportunities in the region, on the local board.

34(2) Develop effective linkages, including the use of
35intermediaries, with employers in the region to support employer
36utilization of the local workforce development system and to
37support local workforce investment activities.

38(3) Ensure that workforce investment activities meet the needs
39of employers and support economic growth in the region, by
P19   1enhancing communication, coordination, and collaboration among
2employers, economic development entities, and service providers.

3(4) Develop and implement proven or promising strategies for
4meeting the employment and skill needs of workers and employers,
5like the establishment of industry and sector partnerships, that
6provide the skilled workforce needed by employers in the region,
7and that expand employment and career advancement opportunities
8for workforce development system participants in in-demand
9industry sectors or occupations.

10(e) (1) With representatives of secondary and postsecondary
11education programs, lead efforts in the local area to develop and
12implement career pathways within the local area by aligning the
13employment, training, education, and supportive services that are
14needed by adults and youth, particularly individuals with barriers
15to employment.

16(2) For purposes of this subdivision, “secondary and
17postsecondary education programs” include, but are not limited
18to, adult education consortiums, school districts, schools operating
19in partnership with United States Department of Labor programs,
20and community colleges partnering with local boards.

21(f) Lead efforts in the local area to accomplish both of the
22following:

23(1) Identify and promote proven and promising strategies and
24initiatives for meeting the needs of employers, and workers and
25jobseekers, including individuals with barriers to employment, in
26the local workforce development system, including providing
27physical and programmatic accessibility, in accordance with
28Section 3248 of Title 29 of the United States Code, if applicable,
29and applicable provisions of the Americans with Disabilities Act
30of 1990 (42 U.S.C. Sec. 12101 et seq.), to the one-stop delivery
31system.

32(2) Identify and disseminate information on proven and
33promising practices carried out in other local areas for meeting
34these needs.

35(g) Develop strategies for using technology to maximize the
36accessibility and effectiveness of the local workforce development
37system for employers, and workers and jobseekers, by doing all
38of the following:

39(1) Facilitating connections among the intake and case
40management information systems of the one-stop partner programs
P20   1to support a comprehensive workforce development system in the
2local area.

3(2) Facilitating access to services provided through the one-stop
4delivery system involved, including facilitating the access in remote
5areas.

6(3) Identifying strategies for better meeting the needs of
7individuals with barriers to employment, including strategies that
8augment traditional service delivery, and increase access to services
9and programs of the one-stop delivery system, such as improving
10digital literacy skills.

11(4) Leveraging resources and capacity within the local workforce
12development system, including resources and capacity for services
13for individuals with barriers to employment.

14(h) In partnership with the chief elected official for the local
15area, shall conduct oversight for local youth workforce investment
16activities as required under the federal Workforce Innovation and
17Opportunity Act, ensure the appropriate use and management of
18the funds as required under the Workforce Innovation and
19Opportunity Act, and, for workforce development activities, ensure
20the appropriate use, management, and investment of funds to
21maximize performance outcomes as required under the federal
22Workforce Innovation and Opportunity Act.

23(i) Negotiate and reach agreement on local performance
24accountability measures, as described in Section 3141(c) of Title
2529 of the United States Code, with the chief elected official and
26the Governor.

27(j) Select and provide access to system operators, service
28providers, trainers, and educators, in a manner consistent with the
29requirements of the Workforce Innovation and Opportunity Act
30and applicable state laws, including all of the following:

31(1) Consistent with Section 3151(d) of Title 29 of the United
32States Code, and with the agreement of the chief elected official
33for the local area, designate or certify one-stop operators as
34described in Section 3151(d)(2)(A) of Title 29 of the United States
35Code and terminate for cause the eligibility of these operators.

36(2) Consistent with Section 3153 of Title 29 of the United States
37Code, identify eligible providers of youth workforce investment
38activities in the local area by awarding grants or contracts on a
39competitive basis, except as provided in Section 3153(b) of Title
4029 of the United States Code, based on the recommendations of
P21   1the youth standing committee, if such a committee is established
2for the local area and terminate for cause the eligibility of these
3providers.

4(3) Consistent with Section 3152 of Title 29 of the United States
5Code and paragraph (4) of subdivision (d) of Section 14020,
6identify eligible providers of training services in the local area.

7(4) If the one-stop operator does not provide career services
8described in Section 3174(c)(2) of Title 29 of the United States
9Code in a local area, identify eligible providers of those career
10services in the local area by awarding contracts.

11(5) Consistent with Section 3152 of Title 29 of the United States
12Code and paragraphs (2) and (3) of Section 3174(c) of Title 29 of
13the United States Code, work with the state to ensure there are
14sufficient numbers and types of providers of career services and
15training services, including eligible providers with expertise in
16assisting individuals with disabilities and eligible providers with
17expertise in assisting adults in need of adult education and literacy
18activities, serving the local area and providing the services involved
19in a manner that maximizes consumer choice, as well as providing
20opportunities that lead to competitive integrated employment for
21individuals with disabilities.

22(k) Consistent with the requirements of the Workforce
23Innovation and Opportunity Act, coordinate activities with
24education and training providers in the local area, including
25providers of workforce development activities, providers of adult
26education and literacy activities under Title II of the Workforce
27Innovation and Opportunity Act, providers of career and technical
28education, as defined in Section 2302 of Title 20 of the United
29States Code, and local agencies administering plans under Title I
30of the Rehabilitation Act of 1973 (29 U.S.C. Sec. 720 et seq.),
31other than Section 112 or Part C of that Title (29 U.S.C. Sec. 732,
32741).

33

SEC. 5.  

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

35

14221.  

The local plan shall include all of the following:

36(a) A description of the strategic planning elements consisting
37of each of the following:

38(1) An analysis of the regional economic conditions, including,
39existing and emerging in-demand industry sectors and occupations
P22   1and the employment needs of employers in those industry sectors
2and occupations.

3(2) An analysis of the knowledge and skills needed to meet the
4employment needs of the employers in the region, including
5employment needs in in-demand industry sectors and occupations.

6(3) An analysis of the workforce in the region, including current
7 labor force employment and unemployment data, and information
8on labor market trends, and the educational and skill levels of the
9workforce in the region, including individuals with barriers to
10employment.

11(4) An analysis of the workforce development activities,
12including education and training, in the region, including an
13analysis of the strengths and weaknesses of such services, and the
14capacity to provide such services, to address the identified
15education and skill needs of the workforce, including individuals
16with employment barriers, and the employment needs of employers
17in the region.

18(5) A description of the local board's strategic vision and goals
19for preparing an educated and skilled workforce, including youth
20and individuals with barriers to employment, including goals
21relating to the performance accountability measures based on
22primary indicators of performance described in Section
233141(b)(2)(A) of Title 29 of the United States Code in order to
24support regional economic growth and economic self-sufficiency.

25(6) Taking into account analyses described in paragraphs (1) to
26(4), inclusive, a strategy to work with the entities that carry out
27the core programs to align resources available to the local area, to
28achieve the strategic vision and goals described in paragraph (5).

29(b) A description of the workforce development system in the
30local area that identifies the programs that are included in that
31system and how the local board will work with the entities carrying
32out core programs and other workforce development programs to
33support alignment to provide services, including programs of study
34authorized under the Carl D. Perkins Career and Technical
35Education Act of 2006 (20 U.S.C. Sec. 2301 et seq.), that support
36the strategy identified in the State Plan under Section 3112(b)(1)(E)
37ofbegin delete theend delete Title 29 of the United States Code.

38(c) A description of how the local board, working with the
39entities carrying out core programs, will expand access to
40employment, training, education, and supportive services for
P23   1eligible individuals, particularly eligible individuals with barriers
2to employment, including how the local board will facilitate the
3development of career pathways and co-enrollment, as appropriate,
4in core programs, and improve access to activities leading to a
5recognized postsecondary credential, including a credential that
6is an industry-recognized certificate or certification, portable, and
7stackable.

8(d) A description of the strategies and services that will be used
9in the local area in order to facilitate engagement of employers,
10including small employers and employers in in-demand industry
11sectors and occupations, in workforce development programs,
12support a local workforce development system that meets the needs
13of businesses in the local area, better coordinate workforce
14development programs and economic development, and strengthen
15linkages between the one-stop delivery system and unemployment
16insurance programs. This may include the implementation of
17initiatives such as incumbent worker training programs, on-the-job
18training programs, customized training programs, industry and
19 sector strategies, career pathways initiatives, utilization of effective
20business intermediaries, and other business services and strategies,
21designed to meet the needs of employers in the corresponding
22region in support of the strategy described in paragraph (5) of
23 subdivision (a).

24(e) A description of how the local board will coordinate
25workforce investment activities carried out in the local area with
26economic development activities carried out in the region in which
27the local area is located, or planning region, and promote
28entrepreneurial skills training and microenterprise services.

29(f) A description of the one-stop delivery system in the local
30area, including all of the following:

31(1) A description of how the local board will ensure the
32continuous improvement of eligible providers of services through
33the system and ensure that such providers meet the employment
34needs of local employers, and workers and jobseekers.

35(2) A description of how the local board will facilitate access
36to services provided through the one-stop delivery system,
37including in remote areas, through the use of technology and
38through other means.

39(3) A description of how entities within the one-stop delivery
40system, including one-stop operators and the one-stop partners,
P24   1will comply with Section 3248 of Title 29 of the United States
2Code, if applicable, and applicable provisions of the Americans
3with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.)
4regarding the physical and programmatic accessibility of facilities,
5programs and services, technology, and materials for individuals
6with disabilities, including providing staff training and support for
7addressing the needs of individuals with disabilities.

8(4) A description of the roles and resource contributions of the
9one-stop partners.

10(g) A description and assessment of the type and availability of
11adult and dislocated worker employment and training activities in
12the local area.

13(h) A description of how the local board will coordinate
14workforce investment activities carried out in the local area with
15statewide rapid response activities, as described in Section
163174(a)(2)(A) of Title 29 of the United States Code.

17(i) A description and assessment of the type and availability of
18youth workforce investment activities in the local area, including
19activities for youth who are individuals with disabilities, which
20description and assessment shall include an identification of
21successful models of such youth workforce investment activities.

22(j) A description of how the local board will coordinate
23education and workforce investment activities carried out in the
24local area with relevant secondary and postsecondary education
25programs and activities to coordinate strategies, enhance services,
26and avoid duplication of services.

27(k) A description of how the local board will coordinate
28workforce investment activities carried out under this article in
29the local area with the provision of transportation, including public
30transportation, and other appropriate supportive services in the
31local area.

32(l) A description of plans and strategies for, and assurances
33concerning, maximizing coordination of services provided by the
34state employment service under the Wagner-Peyser Act (29 U.S.C.
35Sec. 49 et seq.) and services provided in the local area through the
36one-stop delivery system, to improve service delivery and avoid
37duplication of services.

38(m) A description of how the local board will coordinate
39workforce investment activities carried out in the local area with
40the provision of adult education and literacy activities in the local
P25   1area, including a description of how the local board will carry out,
2consistent with subparagraphs (A) and (B)(i) of Section
33122(d)(11) of Title 29 of the United States Code and Section
43322 of Title 29 of the United States Code, the review of local
5applications.

6(n) A description of the replicated cooperative agreements, as
7defined in Section 3122(d)(11) of Title 29 of the United States
8Code between the local board or other local entities described in
9Section 101(a)(11)(B) of the Rehabilitation Act of 1973 (29 U.S.C.
10Sec. 721(a)(11)(B)) and the local office of a designated state agency
11or designated state unit administering programs carried out under
12Title I of that act, other than Section 112 or Part C of that Title (29
13U.S.C. Secs. 732 and 741) and subject to Section 3151(f) of Title
1429 of the United States Code, in accordance with Section
15101(a)(11) of the Rehabilitation Act of 1973 (29 U.S.C. Sec.
16721(a)(11)) with respect to efforts that will enhance the provision
17of services to individuals with disabilities and to other individuals,
18such as cross training of staff, technical assistance, use and sharing
19of information, cooperative efforts with employers, and other
20efforts at cooperation, collaboration, and coordination.

21(o) An identification of the entity responsible for the disbursal
22of grant funds described in Section 3122(d)(12)(B)(i)(III) of Title
2329 of the United States Code, as determined by the chief elected
24official or the Governor under Section 3122(d)(12)(B)(i) of Title
2529 of the United States Code.

26(p) A description of the competitive process to be used to award
27the subgrants and contracts in the local area for activities carried
28out pursuant to this act.

29(q) A description of the local levels of performance negotiated
30with the Governor and chief elected official pursuant to Section
313141(c) of Title 29 of the United States Code, to be used to measure
32the performance of the local area and to be used by the local board
33for measuring the performance of the local fiscal agent, where
34appropriate, eligible providers, and the one-stop delivery system,
35in the local area.

36(r) A description of the actions the local board will take toward
37becoming or remaining a high-performing board, consistent with
38the factors developed by the board pursuant to Section 3111(d)(6)
39of Title 29 of the United States Code. This federal requirement is
40separate and apart from state standards pertaining to the
P26   1certification of high-performance local workforce development
2boards.

3(s) A description of how training services will be provided in
4accordance with Section 3174(c)(3)(G) of Title 29 of the United
5States Code, including, if contracts for the training services will
6be used, how the use of such contracts will be coordinated with
7the use of individual training accounts and how the local board
8will ensure informed customer choice in the selection of training
9programs regardless of how the training services are to be provided.

10(t) A description of the process used by the local board,
11consistent with subsection (d), to provide an opportunity for public
12comment, including comment by representatives of businesses and
13comment by representatives of labor organizations, and input into
14the development of the local plan, prior to submission of the plan.

15(u) A description of how one-stop centers are implementing and
16transitioning to an integrated, technology-enabled intake and case
17 management information system for programs carried out under
18this act and programs carried out by one-stop partners.

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

20

SEC. 6.  

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

22

14510.  

(a) To the extent permitted by federal law, school
23districts, county offices of education, and schools operating in
24partnership with United States Department of Labor programs are
25eligible to apply to local workforce development boards to provide
26basic skills training and skills necessary for attaining a secondary
27school diploma.

28(b) Among the appropriate education providers considered for
29begin delete anend delete out-of-schoolbegin delete youth,end deletebegin insert youth services,end insert the boards shall include
30begin insert for considerationend insert programs that specialize in a secondary school
31diploma from a school accredited by the Western Association of
32Schools and Colleges from the relevant geographic area.



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