BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                       AB 2719|
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                                   THIRD READING 

          Bill No:  AB 2719
          Author:   Eduardo Garcia (D), et al.
          Amended:  6/23/16 in Senate
          Vote:     21 

           SENATE LABOR & IND. REL. COMMITTEE:  5-0, 6/22/16
           AYES:  Mendoza, Stone, Jackson, Leno, Mitchell


           ASSEMBLY FLOOR:  76-0, 5/19/16 (Consent) - See last page for  

           SUBJECT:   Workforce development:  out-of-school youth

          SOURCE:    Author

          DIGEST:   This bill makes out-of-school youth a state workforce  
          development priority and therefore makes services accessible for  
          this group through funds available under the federal Workforce  
          Innovation and Opportunity Act.


          Existing federal law:

          1)Establishes the Workforce Innovation and Opportunity Act  
            (WIOA) of 2014 in order to help job seekers access employment,  
            education, training, and support services to succeed in the  


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            labor market and to match employers with skilled workers. WIOA  
            coordinates employment and training services for adults,  
            dislocated workers, and youth through grants to states that  
            are implemented at the state and local level.

          2)Requires that WIOA, among other things:

             a)   Increase employment, education, training, and support  
               services for individuals who face barriers to employment  
               (also known as individuals with employment barriers, as  
               defined above).

             b)   Provide workforce investment activities, through  
               statewide and local workforce development systems, that  
               increase the employment, retention, and earnings of  
               participants, and increase the attainment of recognized  
               postsecondary credentials by participants, and as a result,  
               improve the quality of the workforce, reduce welfare  
               dependency, increase economic self-sufficiency.

          3)Defines "out-of-school youth" as an individual who is not  
            attending any school (as defined under state law), is 16 to 24  
            years of age; and is one or more of the following:

             a)   A school dropout.

             b)   A youth who is within the age of compulsory school  
               attendance, but has not attended school for at least the  
               most recent complete school year calendar quarter.

             c)   A recipient of a secondary school diploma or its  
               recognized equivalent who is a low-income individual and is  
               basic skills deficient or an English language learner.

             d)   An individual who is subject to the juvenile or adult  
               justice system.


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             e)   A homeless individual, a homeless child or youth, a  
               runaway, in foster care or has/aged out of the foster care  
               system, a child eligible for assistance under §677 of Title  
               42 of the United States Code, or in an out-of-home  

             f)   An individual who is pregnant or parenting.

             g)   A youth who is an individual with a disability.

             h)   A low-income individual who requires additional  
               assistance to enter or complete an educational program or  
               to secure or hold employment.

            [United States Code, Title 29, §3164 (a)(1)(B)]

          4)Intends through WIOA, to prepare vulnerable youth and other  
            job seekers for successful employment through the use of  
            proven service models services. 

          5)Requires local areas statewide to increase the percentage of  
            youth formula funds used to serve out-of-school youth to 75  
            percent from 30 percent under existing law.

          6)Requires federal funds dedicated to youth activities be used  
            for tutoring, study skills training, and instruction leading  
            to secondary school completion.

          Existing state law:

          1)Establishes the California Workforce Development Board (CWDB),  
            whose members are appointed by the Governor and are  
            representative of the areas of business, labor, public  


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            education, higher education, economic development, youth  
            activities, employment and training, as well as the  
            Legislature (Unemployment Insurance Code §14011 and §14012).

          2)Provides that the CWDB assists the Governor in the  
            development, oversight, and continuous improvement of  
            California's workforce investment system, including its  
            alignment to the needs of the economy and the workforce  
            (Unemployment Insurance Code §14010).

          3)Requires the CWDB to assist the Governor in supporting the use  
            of career pathways to provide individuals, including those  
            with barriers to employment, with workforce investment  
            activities, education, and supportive services in order to  
            enter or retain employment (Unemployment Insurance Code  

          4)Defines an "individual with employment barriers" as one with  
            any characteristic that substantially limits their ability to  
            obtain employment, including indicators of poor work history,  
            lack of work experience, or access to employment in  
            non-traditional occupations, long-term unemployment, lack of  
            educational or occupational skills attainment, dislocation  
            from high-wage and high-benefit employment, low levels of  
            literacy or English proficiency, disability status, or welfare  
            dependency (Unemployment Insurance Code §14005).

          This bill includes "out-of-school youth" as individuals with  
          barriers to employment (IBEs) and thus match federal WIOA  
          standards by making them a workforce development priority. In  
          order to address the IBEs requirement, local workforce  
          development boards would be required to lead efforts to develop  
          and implement career pathways emphasizing education for these  
          youth, with the assistance of certain secondary and  
          postsecondary education programs. 

          Specifically this bill, among other things:


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          1)Identifies and defines "out-of-school youth" as IBEs.   

          2)Defines a "school operating in partnership with United States  
            Department of Labor programs" as a school that serves  
            out-of-school youth through a partnership that includes, but  
            is not limited to the CWDB or local workforce development  

          3)Charges the CWDB with developing strategies for providing  
            effective outreach to IBEs and improving access to the  
            workforce development system.

          4)Stipulates that the required CWDB status report on credential  
            attainment include among others, degree attainment, such as  
            high school diplomas. Also requires the CWDB to request an  
            opportunity to present relevant portions of the credential  
            attainment report to the State Board of Education and the  
            California Community College Board at least once every  
            calendar year.

          5)Identifies serving out-of-school youth as one of the metrics  
            that a workforce development board will be evaluated on when  
            determining whether they met or exceed their performance goal  
            when designating high-performing boards.

          6)Requires that the local plan of the workforce development  
            board include out-of-school youth as a target group within the  
            analysis of programs available to provide education and  
            training in the region to address the education and skill  
            needs of the employers.

          7)Establishes, to the extent permitted by federal law, the  
            eligibility of school districts, county offices of education,  
            and schools operating in partnership with Department of Labor  
            programs to apply to local workforce development boards in  
            order to provide skills and training to help out-of-school  
            youth earn a secondary school diploma.


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          8)States that when considering appropriate education providers  
            for the out-of-school youth services mentioned above, the  
            local workforce development boards shall include for  
            consideration, but not be limited to, programs at schools  
            accredited by the Western Association of Schools and Colleges.


          WIOA and California's Workforce Development System.  The federal  
          WIOA provides funds and sets priorities for workforce  
          development activities but leaves room for implementation  
          decisions to be made at the state and local levels. California's  
          federal workforce funds are overseen by the CWDB. The CWDB  
          provides guidance to local workforce boards and is charged with  
          developing a unified, strategic plan to coordinate various  
          education, training, and employment programs with the goal of  
          fostering an integrated workforce development system that  
          supports economic development.  At the local and regional level  
          there are 49 local workforce development boards that plan for  
          and oversee the workforce system in their areas.  By federal  
          requirement, business community representatives make up the  
          majority of local workforce board membership. With respect to  
          the provisions of this bill, California law allows schools  
          partnering with DOL programs to help youth over 19 years of age  
          earn a high school diploma which is considered to be beneficial  
          to workforce development.  


          Need for this bill? According to the author, high school diploma  
          attainment is a primary indicator of employment potential and  
          performance for out-of-school youth and for dislocated workers.  
          Following the lead of the federal WIOA, this bill intends to  
          strengthen the state's implementation of its workforce program  
          by aligning California's workforce development system with  
          schools serving out-of-school youth. While services to  
          out-of-school youth are treated as a priority under the federal  
          WIOA, they are not mentioned specifically under current state  


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          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          SUPPORT:   (Verified8/2/16)

          California Association of Local Conservation Corps
          California Charter Schools Association Advocates
          California School Boards Association
          California Teachers Association
          California Urban Partnership
          John Muir Charter Schools
          Los Angeles County Office of Education
          Mexican American Legal Defense and Education Fund
          National Association of Social Workers, California Chapter
          Riverside County Superintendent of Schools
          SIA Tech California
          YouthBuild Charter School of California

          OPPOSITION:   (Verified8/2/16)

          None received

          ARGUMENTS IN SUPPORT:     Proponents state that out-of-school  
          youth face many challenges, especially in access to employment.  
          They argue that employment rates and salaries are higher for  
          young adults who have completed high school as opposed to those  
          who have not. Those youth who have dropped out of high school  
          are more likely to live in poverty and face incarceration.   
          Proponents state that AB 2719 updates the state WIOA programs to  
          identify "out-of-school youth" specifically as a population that  
          faces barriers to employment. In doing so, AB 2719 elevates the  
          needs of California's out-of-school youth to a level consistent  
          with federal law. Youth who have not completed a traditional  
          high school route often enroll in WIOA programs and receive job  
          training and education. AB 2719 creates a pathway for increasing  


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          educational and vocational credentials available to  
          out-of-school youth. Proponents believe that by adding this  
          population to California's workforce development priorities, the  
          state will recognize their unique needs, and will be better able  
          to assist them in community re-engagement and attaining  
          self-sufficiency and economic stability.

          ASSEMBLY FLOOR:  76-0, 5/19/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chau, Chávez, Chiu, Chu, Cooley, Cooper,  
            Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines,  
            Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger  
            Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,  
            Levine, Linder, Lopez, Low, Maienschein, Mayes, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,  
            Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Wood, Rendon
          NO VOTE RECORDED:  Chang, Mathis, McCarty, Williams

          Prepared by:Brandon Seto / L. & I.R. / (916) 651-1556
          8/3/16 19:38:12

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