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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