Amended in Assembly July 1, 2015

Senate BillNo. 342


Introduced by Senator Jackson

February 23, 2015


An act to amend Sectionsbegin delete 14000end deletebegin insert 14000, 14005,end insert and 14013 of the Unemployment Insurance Code, relating to unemployment insurance.

LEGISLATIVE COUNSEL’S DIGEST

SB 342, as amended, Jackson. California Workforce Investment Board: responsibilities.

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Under

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begin insert(1)end insertbegin insertend insertbegin insertUnderend insert existing law, the California Workforce Investment Board is responsible for assisting the Governor in the development, oversight, and continuous improvement of California’s workforce investment system. Existing law requires the board to assist the Governor in targeting resources to specified industry sectors and providing guidance to ensure that services reflect the needs of those sectors.

This bill would additionally require the board to assist the Governor in helping individuals with barriers to employment achieve economic security and upward mobility by implementing policies that encourage the attainment of marketable skills relevant to current labor market trends.

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(2) Existing law requires the California Workforce Investment Board, in consultation with the Division of Apprenticeship Standards, to identify opportunities for “earn and learn” job training opportunities that meet an industry’s workforce demands and that are in high-wage, high-demand jobs, identify and develop specific requirements and qualifications for entry into “earn and learn” job training models, and establish standards for “earn and learn” job training programs that are outcome oriented and accountable, as specified.

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This bill would define the term “earn and learn” for the purposes of these provisions.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 14000 of the Unemployment Insurance
2Code
is amended to read:

3

14000.  

(a) The Legislature finds and declares that, in order
4for California to remain prosperous and globally competitive, it
5needs to have a well-educated and highly skilled workforce.

6(b) The Legislature finds and declares that the following
7principles shall guide the state’s workforce investment system:

8(1) Workforce investment programs and services shall be
9responsive to the needs of employers, workers, and students by
10accomplishing the following:

11(A) Preparing California’s students and workers with the skills
12necessary to successfully compete in the global economy.

13(B) Producing greater numbers of individuals who obtain
14industry-recognized certificates and degrees in competitive and
15emerging industry sectors and filling critical labor market skills
16gaps.

17(C) Adapting to rapidly changing local and regional labor
18markets as specific workforce skill requirements change over time.

19(D) Preparing workers for good-paying jobs that foster economic
20security and upward mobility.

21(2) State and local workforce investment boards are encouraged
22to collaborate with other public and private institutions, including
23businesses, unions, nonprofit organizations, kindergarten and
24grades 1 to 12, inclusive, career technical education programs,
25adult career technical education and basic skills programs,
26community college career technical education and basic skills
27programs, entrepreneurship training programs, where appropriate,
28the California Community Colleges Economic and Workforce
29Development Program, and the Employment Training Panel, to
30better align resources across workforce education and training
P3    1service delivery systems and build a well-articulated workforce
2investment system by accomplishing the following:

3(A) Adoptingbegin delete sector-focusedend delete local and regional training and
4education strategies which include workplace-basedbegin insert earn and learnend insert
5 programs that build on the strengths and fill the gaps in the
6education and workforce development pipeline in order to address
7the needs of job seekers, workers, and employers within regional
8labor markets by supporting sector strategies.

9(B) Leveraging resources across education and workforce
10training delivery systems to build career pathways and fill critical
11skills gaps.

12(3) Workforce investment programs and services shall be data
13driven and evidence based when setting priorities, investing
14resources, and adopting practices.

15(4) Workforce investment programs and services shall develop
16strong partnerships with the private sector, ensuring industry
17involvement in needs assessment, planning, and program
18evaluation.

19(A) Workforce investment programs and services shall
20encourage industry involvement by developing strong partnerships
21with an industry’s employers and the unions that represent the
22industry’s workers.

23(B) Workforce investment programs and services may consider
24the needs of employers and businesses of all sizes, including large,
25medium, small, and microenterprises, when setting priorities,
26investing resources, and adopting practices.

27(5) Workforce investment programs and services shall be
28outcome oriented and accountable, measuring results for program
29participants, including, but not limited to, outcomes related to
30program completion, employment, and earnings.

31(6) Programs and services shall be accessible to employers, the
32self-employed, workers, and students who may benefit from their
33operation, including individuals with employment barriers, such
34as persons with economic, physical, or other barriers to
35employment.

36begin insert

begin insertSEC. 2.end insert  

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begin insertSection 14005 of the end insertbegin insertUnemployment Insurance Codeend insert
37begin insert is amended to read:end insert

38

14005.  

For purposes of this division:

39(a) “Board” means the California Workforce Investment Board.

P4    1(b) “Agency” means the Labor and Workforce Development
2Agency.

3(c) “Career pathways,” “career ladders,” or “career lattices”
4mean an identified series of positions, work experiences, or
5educational benchmarks or credentials with multiple access points
6that offer occupational and financial advancement within a
7specified career field or related fields over time.

8(d) “Cluster-based sector strategies” means methods of focusing
9workforce and economic development on those sectors that have
10demonstrated a capacity for economic growth and job creation in
11a particular geographic area.

12(e) “Data driven” means a process of making decisions about
13investments and policies based on systematic analysis of data,
14which may include data pertaining to labor markets.

15(f) “Economic security” means, with respect to a worker, earning
16a wage sufficient to support a family adequately, and, over time,
17to save for emergency expenses and adequate retirement income,
18based on factors such as household size, the cost of living in the
19worker’s community, and other factors that may vary by region.

20(g) “Evidence-based” means making use of policy research as
21a basis for determining best policy practices. Evidence-based
22policymakers adopt policies that research has shown to produce
23positive outcomes, in a variety of settings, for a variety of
24 populations over time. Successful, evidence-based programs deliver
25quantifiable and sustainable results. Evidence-based practices
26differ from approaches that are based on tradition, belief,
27convention, or anecdotal evidence.

28(h) “High-priority occupations” mean occupations that have a
29significant presence in a targeted industry sector or industry cluster,
30are in demand by employers, and pay or lead to payment of a wage
31that provides economic security.

32(i) “Individual with employment barriers” means an individual
33with any characteristic that substantially limits an individual’s
34ability to obtain employment, including indicators of poor work
35history, lack of work experience, or access to employment in
36nontraditional occupations, long-term unemployment, lack of
37educational or occupational skills attainment, dislocation from
38high-wage and high-benefit employment, low levels of literacy or
39English proficiency, disability status, or welfare dependency.

P5    1(j) “Industry cluster” means a geographic concentration or
2emerging concentration of interdependent industries with direct
3service, supplier, and research relationships, or independent
4industries that share common resources in a given regional
5economy or labor market. An industry cluster is a group of
6employers closely linked by common product or services,
7workforce needs, similar technologies, and supply chains in a given
8regional economy or labor market.

9(k) (1) “Industry or sector partnership” means a workforce
10collaborative that organizes key stakeholders in a targeted industry
11cluster into a working group that focuses on the workforce needs
12of the targeted industry cluster. An industry or sector partnership
13organizes the stakeholders connected with a specific local or
14regional industry--multiple firms, labor groups, education and
15training providers, and workforce and education systems--to
16develop workforce development strategies within the industry.
17Successful sector partnerships leverage partner resources to address
18both short-term and long-term human capital needs of a particular
19sector, including by analyzing current labor markets and identifying
20barriers to employment within the industry, developing cross-firm
21skill standards, curricula, and training programs, and developing
22occupational career ladders to ensure workers of all skill levels
23can advance within the industry.

24(2) Industry or sector partnerships include, at the appropriate
25stage of development of the partnership, all of the following:

26(A) Representatives of multiple firms or employers in the
27targeted industry cluster, including small-sized and medium-sized
28employers when practicable.

29(B) One or more representatives of state labor organizations,
30central labor coalitions, or other labor organizations, except in
31instances where no labor representations exists.

32(C) One or more representatives of local workforce investment
33boards.

34(D) One or more representatives of kindergarten and grades 1
35to 12, inclusive, and postsecondary educational institutions or other
36training providers, including, but not limited to, career technical
37educators.

38(E) One or more representatives of state workforce agencies or
39other entities providing employment services.

P6    1(3) An industry or sector partnership may also include
2representatives from the following:

3(A) State or local government.

4(B) State or local economic development agencies.

5(C) Other state or local agencies.

6(D) Chambers of commerce.

7(E) Nonprofit organizations.

8(F) Philanthropic organizations.

9(G) Economic development organizations.

10(H) Industry associations.

11(I) Other organizations, as determined necessary by the members
12comprising the industry or sector partnership.

13(l) “Industry sector” means those firms that produce similar
14products or provide similar services using somewhat similar
15business processes, and are closely linked by workforce needs,
16within a regional labor market.

17(m) “Local labor federation” means a central labor council that
18is an organization of local unions affiliated with the California
19Labor Federation or a local building and construction trades council
20affiliated with the State Building and Construction Trades Council.

21(n) “Sector strategies” means methods of prioritizing
22investments in competitive and emerging industry sectors and
23industry clusters on the basis of labor market and other economic
24data indicating strategic growth potential, especially with regard
25to jobs and income, and exhibit the following characteristics:

26(1) Focus workforce investment in education and workforce
27training programs that are likely to lead to jobs providing economic
28security or to an entry-level job with a well-articulated career
29pathway into a job providing economic security.

30(2) Effectively boost labor productivity or reduce business
31barriers to growth and expansion stemming from workforce supply
32problems, including skills gaps and occupational shortages by
33directing resources and making investments to plug skills gaps
34and provide education and training programs for high-priority
35occupations.

36(3) May be implemented using articulated career pathways or
37lattices and a system of stackable credentials.

38(4) May target underserved communities, disconnected youths,
39incumbent workers, and recently separated military veterans.

P7    1(5) Frequently are implemented using industry or sector
2partnerships.

3(6) Typically are implemented at the regional level where sector
4firms, those employers described in subdivisions (j) and (l), often
5share a common labor market and supply chains. However, sector
6strategies may also be implemented at the state or local level
7depending on sector needs and labor market conditions.

8(o) “Workforce Investment Act of 1998” means the federal act
9enacted as Public Law 105-220.

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10(p) (1) “Earn and learn” includes, but is not limited to, a
11program that does any of the following:

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12(A) Combines applied-learning in a workplace setting with
13compensation allowing workers or students to gain work
14experience and secure a wage as they develop skills and
15competencies directly relevant to the occupation or career for
16which they are preparing.

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17(B) Brings together classroom instruction with on-the-job
18training to combine both formal instruction and actual paid work
19experience.

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20(2) “Earn and learn” programs include, but are not limited to,
21all of the following:

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22(A) Apprenticeships.

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23(B) Preapprenticeships.

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24(C) Incumbent worker training.

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25(D) Transitional and subsidized employment, particularly for
26individuals with barriers to employment.

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27(E) Paid internships and externships.

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28(F) Project-based compensated learning.

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29

begin deleteSEC. 2.end delete
30begin insertSEC. 3.end insert  

Section 14013 of the Unemployment Insurance Code
31 is amended to read:

32

14013.  

The board shall assist the Governor in the following:

33(a) Promoting the development of a well-educated and highly
34skilled 21st century workforce.

35(b) Developing the State Workforce Investment Plan.

36(c) Developing guidelines for the continuous improvement and
37operation of the workforce investment system, including:

38(1) Developing policies to guide the one-stop system.

39(2) Providing technical assistance for the continuous
40improvement of the one-stop system.

P8    1(3) Recommending state investments in the one-stop system.

2(4) Targeting resources to competitive and emerging industry
3sectors and industry clusters that provide economic security and
4are either high-growth sectors or critical to California’s economy,
5or both. These industry sectors and clusters shall have significant
6economic impacts on the state and its regional and workforce
7development needs and have documented career opportunities.

8(5) To the extent permissible under state and federal laws,
9recommending youth policies and strategies that support linkages
10between kindergarten and grades 1 to 12, inclusive, and community
11college educational systems and youth training opportunities in
12order to help youth secure educational and career advancement.
13These policies and strategies may be implemented using a sector
14strategies framework and should ultimately lead to placement in
15a job providing economic security or job placement in an
16entry-level job that has a well-articulated career pathway or career
17ladder to a job providing economic security.

18(6) To the extent permissible under state and federal law,
19recommending adult and dislocated worker training policies and
20investments that offer a variety of career opportunities while
21upgrading the skills of California’s workforce. These may include
22training policies and investments pertaining to any of the following:

23(A) Occupational skills training, including training for
24nontraditional employment.

25(B) On-the-job training.

26(C) Programs that combine workplace training with related
27instruction, which may include cooperative education programs.

28(D) Training programs operated by the private sector.

29(E) Skill upgrading and retraining.

30(F) Entrepreneurial training.

31(G) Job readiness training.

32(H) Adult education and literacy activities provided in
33combination with any of the services described in this paragraph.

34(I) Customized training conducted with a commitment by an
35employer or group of employers to employ an individual upon
36successful completion of the training.

37(d) Developing and continuously improving the statewide
38workforce investment system as delivered via the one-stop delivery
39system and via other programs and services supported by funding
40from the federal Workforce Investment Act of 1998, including:

P9    1(1) Developing linkages in order to ensure coordination and
2nonduplication among workforce programs and activities.

3(2) Reviewing local workforce investment plans.

4(3) Leveraging state and federal funds to ensure that resources
5are invested in activities that meet the needs of the state’s
6competitive and emerging industry sectors and advance the
7education and employment needs of students and workers so they
8can keep pace with the education and skill needs of the state, its
9regional economies, and leading industry sectors.

10(e) Commenting, at least once annually, on the measures taken
11pursuant to the Carl D. Perkins Vocational and Applied Technology
12 Education Act Amendments of 1990 (Public Law 101-392; 20
13U.S.C. Sec. 2301 et seq.).

14(f) Designating local workforce investment areas within the
15state based on information derived from all of the following:

16(1) Consultations with the Governor.

17(2) Consultations with the chief local elected officials.

18(3) Consideration of comments received through the public
19comment process, as described in Section 112(b)(9) of the federal
20Workforce Investment Act of 1998.

21(g) Developing and modifying allocation formulas, as necessary,
22for the distribution of funds for adult employment and training
23activities, for youth activities to local workforce investment areas,
24and dislocated worker employment and training activities, as
25permitted by federal law.

26(h) Coordinating the development and continuous improvement
27of comprehensive state performance measures, including state
28adjusted levels of performance, to assess the effectiveness of the
29workforce investment activities in the state.

30(i) Preparing the annual report to the United States Secretary of
31Labor.

32(j) Recommending policy for the development of the statewide
33employment statistics system, including workforce and economic
34data, as described in Section 49l-2 of Title 29 of the United States
35Code, and using, to the fullest extent possible, the Employment
36Development Department’s existing labor market information
37systems.

38(k) Recommending strategies to the Governor for strategic
39training investments of the Governor’s 15-percent discretionary
40funds.

P10   1(l) Developing and recommending waivers, in conjunction with
2local workforce investment boards, to the Governor as provided
3for in the federal Workforce Investment Act of 1998.

4(m) Recommending policy to the Governor for the use of the
525-percent rapid response funds, as authorized under the federal
6Workforce Investment Act of 1998.

7(n) Developing an application to the United States Department
8of Labor for an incentive grant under Section 9273 of Title 20 of
9the United States Code.

10(o) (1) Developing a workforce metrics dashboard, to be
11updated annually, that measures the state’s human capital
12investments in workforce development to better understand the
13collective impact of these investments on the labor market. The
14workforce metrics dashboard shall be produced using existing
15available data and resources that are currently collected and
16accessible to state agencies. The board shall convene workforce
17program partners to develop a standardized set of inputs and
18outputs for the workforce metrics dashboard. The workforce
19metrics dashboard shall do all of the following:

20(A) Provide a status report on credential attainment, training
21completion, degree attainment, and participant earnings from
22workforce education and training programs. The board shall publish
23and distribute the final report.

24(B) Provide demographic breakdowns, including, to the extent
25possible, race, ethnicity, age, gender, veteran status, wage and
26credential or degree outcomes, and information on workforce
27outcomes in different industry sectors.

28(C) Measure, at a minimum and to the extent feasible with
29existing resources, the performance of the following workforce
30programs: community college career technical education, the
31Employment Training Panel, Title I and Title II of the federal
32Workforce Investment Act of 1998, Trade Adjustment Assistance,
33and state apprenticeship programs.

34(D) Measure participant earnings in California, and to the extent
35feasible, in other states. The Employment Development Department
36shall assist the board by calculating aggregated participant earnings
37using unemployment insurance wage records, without violating
38any applicable confidentiality requirements.

39(2) The State Department of Education is hereby authorized to
40collect the social security numbers of adults participating in adult
P11   1education programs so that accurate participation in those programs
2can be represented in the report card. However, an individual shall
3not be denied program participation if he or she refuses to provide
4a social security number. The State Department of Education shall
5keep this information confidential and shall only use this
6information for tracking purposes, in compliance with all applicable
7state and federal law.

8(3) (A) Participating workforce programs, as specified inbegin delete clauseend delete
9 subparagraph (C) of paragraph (1), shall provide participant data
10in a standardized format to the Employment Development
11Department.

12(B) The Employment Development Department shall aggregate
13data provided by participating workforce programs and shall report
14the data, organized by demographics, earnings, and industry of
15employment, to the board to assist the board in producing the
16annual workforce metrics dashboard.

17(p) Helping individuals with barriers to employment, including
18low-skill, low-wage workers, the long-term unemployed, and
19members of single-parent households, achieve economic security
20and upward mobility by implementing policies that encourage the
21attainment of marketable skills relevant to current labor market
22trends.



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