BILL ANALYSIS                                                                                                                                                                                                    

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          2719 (Eduardo Garcia)

          As Amended  August 19, 2016

          Majority vote

          |ASSEMBLY:  |76-0  |(May 19, 2016) |SENATE: | 39-0 |(August 23,      |
          |           |      |               |        |      |2016)            |
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          |           |      |               |        |      |                 |

          Original Committee Reference:  J., E.D., & E.

          SUMMARY:  Highlights the need for planning, monitoring, and  
          serving the needs of out-of-school youth and individuals with  
          employment barriers within the framework of the state's  
          implementation of programs and use of funding received through  
          the federal Workforce Investment and Opportunity Act (WIOA).   
          Specifically, this bill:

          1)Requires individuals with barriers to employment are one of  
            the groups to be considered by the California Workforce  
            Development Board (CWDB) when developing strategies for  
            outreach to and improved access for workforce training  

          2)Specifies out-of-school youth may be targeted through the use  
            of sector strategies.


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          3)Identifies out-of-school youth as one of the groups to be  
            considered by the CWDB when developing strategies to support  
            the use of career pathways.

          4)Adds entrepreneurs to the list of customers that the one-stop  
            employment centers should consider when designing training and  
            supportive services.

          5)Requires a local workforce development board to include  
            Western Association of Schools and Colleges (WASC) accredited  
            public high schools when making recommendations to clients  
            about the appropriate education provider to assist them in  
            earning a high school diploma. 

          6)Requires the CWDB to request an opportunity to present  
            relevant portions of an existing credential attainment report  
            to the State Board of Education and the California Community  
            College Board, as specified.

          7)Defines out-of-school youth, consistent with federal law.

          8)Defines a "school operating in partnership with U.S. [United  
            States] Department of Labor programs" to mean a school that  
            serves out-of-school youth through a partnership that  
            includes, but is not limited to, any of the following:

             a)   The California Workforce Development Board or local  
               workforce development board;

             b)   Federally affiliated Youth Build programs;

             c)   Federal job corps training or instruction provided  
               pursuant to a memorandum of understanding with the federal  


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               provider; and

             d)   The California Conservation Corp or local conservation  
               corps certified by the California Conservation Corp, as  

          9)Includes a general cost disclaimer.

          The Senate amendments:

          1)Remove out-of-school youth from the specific list of examples  
            of individuals with employment barriers.

          2)Add out-of-school youth to the list of groups authorized to be  
            targeted within sector strategies.

          3)Make other minor clarifying changes to the bill.

          EXISTING LAW:

          1)Designates the CWDB as the state entity responsible for  
            assisting the state in meeting the requirements of the federal  
            Workforce Innovation and Opportunity Act, as well as assisting  
            the Governor in the development, oversight, and continuous  
            improvement of California's workforce investment system.

          2)Requires the CWD to assist the Governor in the development of  
            strategies to support the use of career pathways for the  
            purpose of providing individuals, including low-skilled  
            adults, youth, and individuals with barriers to employment,  
            with workforce investment activities, education, and  
            supportive services to enter or retain employment.  To the  
            extent permissible under state and federal laws, these  


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            policies and strategies are required to support linkages  
            between kindergarten and grades 1 to 12, inclusive, and  
            community college educational systems in order to help secure  
            educational and career advancement.


          1)Authorizes the Workforce Innovation and Opportunity Act of  
            2014 for the purpose of, among other things:

             a)   Increasing access to the employment, education,  
               training, and support services that individuals need to  
               succeed in the labor market, especially individuals who  
               face barriers to employment;

             b)   Supporting the alignment of workforce investment,  
               education, and economic development systems in support of a  
               comprehensive, accessible, and high-quality workforce  
               development system in the U.S.;

             c)   Improving the quality and labor market relevance of  
               workforce investment, education, and economic development  
               efforts to provide America's workers with the skills and  
               credentials necessary to secure and advance in employment  
               with family-sustaining wages and to provide America's  
               employers with the skilled workers the employers need to  
               succeed in a global economy; and

             d)   To provide workforce investment activities, through  
               statewide and local workforce development systems, that  
               increase the employment, retention, and earnings of  
               participants, and increase attainment of recognized  
               postsecondary credentials by participants, and as a result,  
               improve the quality of the workforce, reduce welfare  
               dependency, increase economic self-sufficiency, meet the  
               skill requirements of employers, and enhance the  


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               productivity and competitiveness of the Nation.

          2)Defines "out-of-school youth" as an individual between the  
            ages of 16 and 24; who is not attending any school at the time  
            eligibility is determined, and meets one or more conditions of  

             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;

             e)   A homeless individual, as defined, a homeless child or  
               youth, as defined; a runaway, in foster care or has aged  
               out of the foster care system; a child eligible for  
               assistance under Title 42 Section 677, 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;


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            For the purpose of this definition, the term "low-income"  
            individual, also includes a youth living in a high-poverty  

          3)Requires that not less than 75% of funds allocated to a state  
            for youth programs be made available for programs and services  
            that serve out-of-school youth.  

          4)Requires federal funds dedicated to youth activities be used  
            for 14 program elements, including, but not limited to:

             a)   Tutoring, study skills training, and instruction leading  
               to secondary school completion, including;

             b)   Alternative secondary school offerings or dropout  
               recovery services;

             c)   Paid and unpaid work experiences with an academic and  
               occupational education component;

             d)   Occupational skill training, with a focus on recognized  
               postsecondary credentials and in-demand occupations;

             e)   Integrated education and training for a specific  
               occupation or cluster;

             f)   Entrepreneurial skills training;

             g)   Services that provide labor market information about  
               in-demand industry sectors and occupations; and


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             h)   Postsecondary preparation and transition activities.

          FISCAL EFFECT:  This bill moved from the Senate Appropriations  
          Committee to the Senate Floor pursuant to Senate Rule 28.8

          COMMENTS:  Every 26 seconds another young person fails to finish  
          high school.  California accounts for more than one million of  
          these students each year.  Since 2002, California has had an  
          Education Code provision that allows schools partnering with  
          Department of Labor programs to work with youth over 19 to  
          obtain a public school diploma.  Improving the alignment of  
          California's workforce development system with schools serving  
          out-of-school youth is an important step to stemming the flood  
          of dropouts and strengthening the California workforce system.

          While services to out-of-school youth are treated as a priority  
          under the federal Workforce Innovation and Opportunity Act,  
          current state law is silent.  Current state law also does not  
          provide statutory direction as to the accreditation of the  
          schools who can offer out-of-school youth high school diplomas.   
          This bill highlights the importance of serving out-of-school  
          youth within the broader workforce development system.  The  
          policy committee analysis includes further background on the  
          federal Workforce Innovation and Opportunity, out-of-school  
          youth and California's evolving economy, including income  

          Out of School Youth:  The federal Workforce Innovation and  
          Opportunity Act was signed into law in July 2014 and represents  
          the single most significant change in federal workforce policy  
          in over 15 years.  While still retaining some of the core  
          elements of the former workforce act, the Workforce Innovation  
          and Opportunity Act presents a broader vision for youth and  
          youth training and education programs.  According to the federal  
          Employment and Training Administration, the new federal act is  
          intended to support an integrated service delivery system and to  
          provide a framework for leveraging other federal, state, local,  


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          and nonprofit resources and partnerships to support in-school  
          and out-of-school youth.  Among other things, the Workforce  
          Innovation and Opportunity Act implements the following:

          1)At least 75% of state and local youth funding is required to  
            be used for out-of-school youth;
          2)While youth councils are no longer required, local workforce  
            development boards are encouraged to designate a standing  
            Youth Committee to contribute the critical youth voice and  
            perspectives to board activities and actions.

          3)Out-of-school youth are defined as 16 to 24, not attending any  
            school, and meet one of a series economic, social, or  
            education challenges.

          4)In-school-youth are defined as 14 to 21, attending school, be  
            of low-income and meet one of a slightly different set of  
            economic, social, or education challenges.

          5)There are five new youth program elements, including financial  
            literacy; entrepreneurship, services that provide local labor  
            market information; activities that help youth transition to  
            postsecondary education and training; and education offered  
            concurrently with other workforce preparation activities.

          6)At least 20% of local youth formula funds are required to be  
            used for work experiences, including summer and year round  
            employment pre-apprenticeship, on-the-job training, or  

          Given the significance of these changes and the broad range of  
          options for implementation, statutory inclusion and public  
          policy debate are appropriate.  Currently, these new federal  
          rules are applicable, but not transparent. 


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          Income Disparities:  California's overall economic growth and  
          increase in jobs has outpaced the U.S. in general, often ranking  
          the state within the top five in terms of its economic  
          condition.  This success, however, has not been consistent  
          throughout the state with many regions and certain population  
          groups still experiencing recession-related poor economic  

          According to the U.S. Census Bureau, California's poverty rate  
          is 16.4% as compared to a national rate of 15.6%.  It is  
          estimated that nearly a quarter of the California's children  
          (22.7%) are living in households with annual incomes below the  
          federal poverty line.  

          While the state's unemployment rate for February 2016 (not  
          seasonally adjusted) was 5.7%, several population groups had  
          significantly higher rates, including Blacks (10.8%), Hispanics  
          (7.4%); and 16 to 19 year olds (20.5%).  Achieving job growth  
          within globally competitive industries and addressing the  
          state's growing income disparities may require different  
          community and economic development approaches, as well as more  
          coordinated efforts by industry, labor, nonprofits, and  
          government on a range of issues, including education, workforce  
          training, infrastructure repair and expansion, entrepreneurship,  
          and finance, among others.  Implementation of WIOA offers a  
          unique and important opportunity to address the challenges of  
          California's most vulnerable populations.

          Analysis Prepared by:                                             
                          Toni Symonds / J., E.D., & E. / (916) 319-2090    


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