BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 45|
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THIRD READING
Bill No: SB 45
Author: Mendoza (D)
Amended: 3/9/15
Vote: 21
SENATE LABOR & IND. REL. COMMITTEE: 5-0, 3/25/15
AYES: Mendoza, Stone, Jackson, Leno, Mitchell
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Workforce development: federal Workforce Innovation
and Opportunity Act
SOURCE: California Labor and Workforce Development Agency
California Workforce Investment Board
DIGEST: This bill is one of two being sponsored by the
California Labor and Workforce Development Agency and the
California Workforce Investment Board that will make the
necessary changes to existing law for the implementation of the
federal Workforce Innovation and Opportunity Act (WIOA) in our
State. Among other things, this bill requires 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.
ANALYSIS:
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Existing federal law:
1)The federal WIOA, signed into law on July 22, 2014, replaces
the Workforce Investment Act of 1998 (WIA) and retains and
amends the Adult Education and Family Literacy Act, the
Wagner-Peyser Act, and the Rehabilitation Act of 1973.
2)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.
Existing state law:
1)The WIA provided for activities and programs for job training
and employment investment in which states could participate,
including work incentive and employment training outreach
programs.
2)Following passage of the federal WIA, the state established
the California Workforce Investment Board (CWIB) and charged
the CWIB 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.
3)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 LWIBs 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 Code §1400 et al)
This bill makes necessary changes to existing workforce
development statutes in California codes to conform to the new
federal guidelines under the WIOA.
Specifically, this bill:
1)Directs the CWIB to aid the Governor in facilitating system
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alignment across the core programs of the federal WIOA as well
as other educational, social service, rehabilitation, and
economic development agencies in the partnership.
2)After consultation with LWIBs and chief elected officials and
in conformity with WIOA, requires that the state identify
local planning regions.
3)Requires that the LWIBs and chief elected officials in each
planning region engage in regional planning process that
results in the following (among others):
The establishment of regional service strategies,
including the use of cooperative service delivery
agreements;
The development and implementation of sector initiatives
for in-demand industries in the region;
The coordination of services with regional economic
development services and providers; and
The collection and analysis of regional labor market
data.
1)Requires the LWIBs and chief elected officials in each region
prepare and submit for approval, a regional plan that includes
description of the activities described above.
2)Lastly, this bill incorporates relevant WIOA definitions into
California statutes.
Background
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% of Adult and Youth formula
funds, and 60% of Dislocated Worker formula funds are
distributed to local WIBs. 15% 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
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less than the 15% discretionary funds. California receives
between $350 and $400 million in federal WIA dollars annually.
The CWIB 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 such, the CWIB
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
LWIBs to support the emergence of effective statewide and
regionally driven sector initiatives.
Background on the Federal 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 WIA. 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
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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
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.
Prior and related legislation
AB 1270 (Garcia, 2015)is the second bill sponsored by the
California Labor and 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 updates statutory references to the
WIA to instead refer to the Workforce Innovation and Opportunity
Act of 2014 and makes related conforming changes. AB 1270 is
pending in the Assembly.
SB 118 (Lieu, Chapter 562, Statutes of 2013) required the
California Workforce Investment Board (CWIB) to incorporate
specific principles into the state's strategic plan that align
the education and workforce investment systems of the state to
the needs of the 21st century economy and promotes a
well-educated and highly skilled workforce to meet the future
workforce needs. SB 118 was a re-introduction of SB 1401 from
2012.
SB 1401 (Lieu, 2012) would have required that the CWIB 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
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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 1401 died in
Assembly Appropriations Committee.
SB 698 (Lieu, Chapter 497, Statutes of 2011) required the
Governor to establish, through the CWIB, standards for
certification of high-performance LWIBs, in accordance with
specified criteria. The bill also required the Governor and the
Legislature, in consultation with the CWIB, to reserve specified
federal discretionary funds for high-performing LWIBs.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
SUPPORT: (Verified4/15/15)
California Labor and Workforce Development Agency (co-source)
California Workforce Investment Board (co-source)
California Workforce Association
California Labor Federation
OPPOSITION: (Verified4/15/15)
California Right to Life Committee, Inc.
ARGUMENTS IN SUPPORT: 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.
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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.
ARGUMENTS IN OPPOSITION: 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.
Prepared by:Alma Perez / L. & I.R. / (916) 651-1556
4/15/15 16:29:05
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