BILL ANALYSIS Ó AB 2719 Page 1 GOVERNOR'S VETO AB 2719 (Eduardo Garcia) As Enrolled September 7, 2016 2/3 vote -------------------------------------------------------------------- |ASSEMBLY: |76-0 |(May 19, 2016) |SENATE: |39-0 |(August 23, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- -------------------------------------------------------------------- |ASSEMBLY: |80-0 |(August 29, | | | | | | |2016) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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 AB 2719 Page 2 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 services. 2)Specifies out-of-school youth may be targeted through the use of sector strategies. 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. AB 2719 Page 3 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 provider; and d) The California Conservation Corp or local conservation corps certified by the California Conservation Corp, as specified. 9)Includes a general cost disclaimer. 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 AB 2719 Page 4 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 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. EXISTING FEDERAL LAW: 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 AB 2719 Page 5 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 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 being: 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 AB 2719 Page 6 placement; 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; For the purpose of this definition, the term "low-income" individual, also includes a youth living in a high-poverty area. 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. 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. AB 2719 Page 7 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. While current law requires all public and private schools in California that issue high school diplomas to be certified by the Western Association of Schools and Colleges, there is no such requirement for programs who serve out of school youth. The author and supporters believe that without statutory direction, out-of-school youth could be provided an inferior educational opportunity than that provided to all other youth. To the extent that this inferior certificate is paid for with public money, it institutionalized a double standard for those who are most vulnerable. 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 inequality. 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, and nonprofit resources and partnerships to support in-school AB 2719 Page 8 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 internships. 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. AB 2719 Page 9 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 conditions. 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. GOVERNOR'S VETO MESSAGE: I am returning Assembly Bill 2719 without my signature. AB 2719 Page 10 The bill makes several changes to the California Workforce Innovation and Opportunity Act related to services for out-of-school youth and requires local workforce boards to consider programs accredited by the Western Association of Schools and Colleges (WASC) when provisioning services for these youth. I agree that out-of-school youth need our attention. Federal law already requires these youth to be a priority, and our state plan recognizes the need to focus on this very vulnerable group of young people. Rather than amending state law to give WASC-accredited programs an implied preference, the current, more inclusive approach is a better way to go. Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090 FN: 0005099