BILL ANALYSIS Ó
SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS
Senator Tony Mendoza, Chair
2015 - 2016 Regular
Bill No: SB 45 Hearing Date: March 25,
2015
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|Author: |Mendoza |
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|Version: |March 9, 2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Alma Perez-Schwab |
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Subject: Workforce development: federal Workforce Innovation
and Opportunity Act
KEY ISSUES
Should the Legislature pass legislation to conform California's
workforce development laws to the new federal Workforce
Innovation and Opportunity Act requirements in order to be
eligible to continue receiving federal workforce services
funding?
Should the Legislature require that Local Workforce Investment
Boards and chief elected officials develop strategic workforce
development plans around local regions to promote program
alignment and cooperation efforts that meet local needs?
ANALYSIS
The former federal Workforce Investment Act (WIA) of 1998
provided for activities and programs for job training and
employment investment in which states could participate,
including work incentive and employment training outreach
programs. Following passage of the federal WIA, the state
established the California Workforce Investment Board (CWIB) and
charged the board with the responsibility of developing a
unified, strategic planning process to coordinate various
education, training, and employment programs into an integrated
workforce development system that supports economic development.
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Existing law requires the local chief elected officials in a
local workforce development area to form, pursuant to specified
guidelines, a Local Workforce Investment Board (LWIB) to plan
and oversee the workforce investment system at the local level.
There are currently 49 local WIBs in the state. Each local
workforce area also created one or more One-Stop Centers, which
provide access to career information, counseling, funding for
education, training and supportive services. (Unemployment
Insurance §1400 et al)
The federal Workforce Innovation and Opportunity Act (WIOA) ,
signed into law on July 22, 2014, replaces the Workforce
Investment Act of 1998 and retains and amends the Adult
Education and Family Literacy Act, the Wagner-Peyser Act, and
the Rehabilitation Act of 1973. Among other things, the new
federal WIOA is designed to help job seekers access employment,
education, training, and support services to succeed in the
labor market and to match employers with the skilled workers
they need to compete in the global economy.
This Bill would make necessary changes to existing workforce
development statutes in code to conform to the new federal
guidelines under the Workforce Innovation and Opportunity Act
(WIOA).
Specifically, this bill would:
Direct the CA Workforce Investment Board to aid the
Governor in facilitating system alignment across the core
programs of the federal WIOA as well as other educational,
social service, rehabilitation, and economic development
agencies in the partnership.
After consultation with local boards and chief elected
officials and in conformity with WIOA, require that the
state identify local planning regions.
Require that the local boards and chief elected
officials in each planning region engage in regional
planning process that results in the following (among
others):
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o The establishment of regional service
strategies, including the use of cooperative service
delivery agreements;
o The development and implementation of sector
initiatives for in-demand industries in the region;
o The coordination of services with regional
economic development services and providers;
o The collection and analysis of regional labor
market data;
The local boards and chief elected officials in each
region would be required to prepare and submit for
approval, a regional plan that includes description of the
activities described above.
Lastly, the bill would incorporate relevant WIOA
definitions into CA statutes.
COMMENTS
1. Background on the CA Workforce Investment Board and WIA
Funding:
Under federal law, WIA funds are distributed to the states
based on formulas that consider unemployment rates and other
economic and demographic factors. California and its 49 Local
WIBs receive WIA formula funding from the U.S. Department of
Labor through three revenue streams - Adult, Youth, and
Dislocated Workers. Under federal law, 85 percent of Adult
and Youth formula funds, and 60 percent of Dislocated Worker
formula funds are distributed to local WIBs. Fifteen percent
of Adult, Youth, and Dislocated Worker formula funds (15%
discretionary funds) are allocated to the state for a variety
of discretionary uses. This split in funds usage has changed
in recent years due to federal budgetary restrictions and
reductions so that the state generally gets less than the 15%
discretionary funds. California receives between $350 and $400
million in federal WIA dollars annually.
The California State WIB is charged with developing a unified,
strategic planning process to coordinate various education,
training, and employment programs into an integrated workforce
development system that supports economic development. As
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such, the State WIB has adopted Sector Strategies as the
statewide framework for workforce development, and is working
closely with the Economic Strategy Panel, other State Agencies
and departments and its 49 local Workforce Investment Boards
to support the emergence of effective statewide and regionally
driven sector initiatives.
2. The federal Workforce Innovation and Opportunity Act (WIOA):
The federal WIOA, passed by a wide bipartisan majority and
signed into law by President Barack Obama on July 22, 2014, is
the first legislative reform of the public workforce system in
more than 15 years. WIOA supersedes the Workforce Investment
Act of 1998. WIOA brings together, in strategic coordination,
the core programs of Federal investment in skill development,
including employment and training services for adults,
dislocated workers, youth and individuals with disabilities.
WIOA also authorizes programs for specific vulnerable
populations including Indian and Native Americans and migrant
and seasonal farmworker programs, among others.
The following are some highlights of the WIOA reforms:
Strategically aligns investments in workforce
development programs to ensure that services provided are
coordinated and complementary to ensure job seekers acquire
skills and credentials that meet employers' needs.
Promotes accountability and transparency by ensuring
that investments are evidence-based and data-driven, and
accountable to participants and tax-payers.
Fosters regional collaboration to promote alignment of
programs with regional economic development strategies to
meet local needs.
Improves quality and accessibility of services received
by job seekers and employers at their local job centers by,
among other things, establishing criteria for certification
of the centers that ensures continuous improvements.
Improves services to employers and promotes work-based
training - matching employers with skilled individuals by
promoting the use of industry and sector partnerships.
Promotes the use of Registered Apprenticeship programs
which has proven successful at providing workers with
career pathways and opportunities to earn while they learn.
Streamlines and strengthens the roles of Workforce
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Development Boards - both state and local - to ensure
programs are coordinated, complementary and consistent
across the state.
The WIOA provisions take effect on July 1, 2015, the first
full program year after enactment. However, the WIOA state
unified and local plans and the WIOA performance
accountability provisions don't take effect until July 1,
2016. The U.S. Department of Labor will issue further guidance
on the timeframes for implementation of WIOA.
3. Need for this bill?
The U.S. Department of Labor, in coordination with the U.S.
Departments of Education and Health and Human Services, are
working to ensure that states and local areas, other grantees,
and stakeholders are prepared for implementation of WIOA by
providing technical assistance, tools, and resources to its
website, webinars, and virtual and in-person discussions. The
U.S. Department of Labor has also recommended that state's
review their existing laws to identify areas that may conflict
with WIOA and develop plans and strategies to resolve these
conflicts. When there are conflicts between state and federal
laws, federal law takes precedence.
Additionally, beyond complying with the new federal
requirements, WIOA offers states an opportunity to continue to
modernize the workforce system and create a customer-centered
system where 1) the needs of business and workers drive
solutions; 2) one-stop career centers provide excellent
customer service to jobseekers and businesses; and 3) the
workforce system supports strong regional economies. State and
local workforce boards - in partnership with workforce,
economic development, education, and social service
organizations at the state, regional and local levels are
encouraged to work together in this transition to achieve the
vision of WIOA. To this end, WIOA allows states and locals to
use up to two percent (2%) of the WIA's 2014 fiscal year
Youth, Adult and Dislocated Worker formula funds to transition
to WIOA.
SB 45 is one of two bills being sponsored by the California
Labor and Workforce Development Agency and the California
Workforce Investment Board that will make the necessary
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changes to existing law for the implementation of WIOA in our
State. Among other things, SB 45 would require the state, in
conformity with WIOA and after consultation with local boards
and chief elected officials, to identify planning regions and
require the locals to prepare regional workforce development
plans.
4. Proponent Arguments :
According to the author, the recent recession left us with a
shattered job market and a record setting unemployment rate -
the toughest jobs crisis in over 50 years. Now more than ever,
it is crucial that every dollar of federal workforce funds
that our state receives is invested in high quality employment
services that connect workers with good paying jobs. The
recently passed WIOA is designed to help job seekers access
employment, education, training, and support services to
succeed in the labor market and to match employers with the
skilled workers they need to compete in the global economy.
The enactment of WIOA provides opportunity for reforms to
ensure that our state programs are responding to the needs of
employers and preparing workers for jobs that are available
now and in the future. Additionally, the new federal law
envisions more program coordination among the various
workforce development entities. According to the author, this
bill is necessary to conform California law to the new federal
WIOA requirements.
5. Opponent Arguments :
The California Right to Life Committee is concerned about the
mandated expansion of regionalizing the workforce as proposed
by SB 45. CRLC considers this development as one not in
keeping with a Constitutional Republic which provides for its
elected representatives at city, county, and state levels and
the marketplace to determine the future work needs of the
citizens and residents, not to have the prospect of federal
funds determine what are the employment needs locally.
6. Prior and Related Legislation :
AB 1270 (Garcia) of 2015: Pending referral in the Assembly
AB 1270 is the second bill sponsored by the CA Labor and
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Workforce Development Agency and the California Workforce
Investment Board that will make the necessary changes to
existing law for the implementation of WIOA. Specifically, AB
1270 would update statutory references to the Workforce
Investment Act of 1998 to instead refer to the Workforce
Innovation and Opportunity Act of 2014 and makes related
conforming changes.
SB 1401 (Lieu) of 2012: Held in Assembly Appropriations
Committee
SB 1401 would have required that the State WIB assist the
Governor in targeting resources to specified industry clusters
that provide economic security and leverage state and federal
funds to ensure that resources are invested in activities that
meet the needs of specified industry sectors and advance the
education and employment of students and workers so they can
meet the specified needs of the state, its regional economies,
and leading industry sectors.
SB 698 (Lieu) of 2011: Chaptered
SB 698 requires the Governor to establish, through the
California Workforce Investment Board, standards for
certification of high-performance local WIBs, in accordance
with specified criteria. The bill also requires the Governor
and the Legislature, in consultation with the California
Workforce Investment Board, to reserve specified federal
discretionary funds for high-performing local WIBs.
SUPPORT
CA Labor and Workforce Development Agency (LWDA) - Sponsor
California Workforce Association (CWA)
OPPOSITION
California Right to Life Committee, Inc.
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