BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 342|
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THIRD READING
Bill No: SB 342
Author: Jackson (D)
Introduced:2/23/15
Vote: 21
SENATE LABOR & IND. REL. COMMITTEE: 5-0, 4/22/15
AYES: Mendoza, Stone, Jackson, Leno, Mitchell
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: California Workforce Investment Board:
responsibilities
SOURCE: Author
DIGEST: This bill requires the California Workforce Investment
Board (CWIB) to assist the Governor in helping individuals with
barriers to employment, including low-skill, low-wage workers,
the long-term unemployed, and members of single-parent
households, achieve economic security and upward mobility by
implementing policies that encourage the attainment of
marketable skills relevant to current labor market trends.
ANALYSIS:
Existing law:
1)Provides, under the former federal Workforce Investment Act of
1998 (WIA), for activities and programs for job training and
employment investment in which states can participate,
including work incentive and employment training outreach
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programs.
2)Establishes the CWIB and charged it 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 CWIB, in collaboration with specified state and
local partners, and the local workforce investment boards
(LWIBs) to develop a strategic workforce plan to address the
state's economic, demographic, and workplace needs.
4)Provides that the federal Workforce Innovation and Opportunity
Act (WIOA), signed into law on July 22, 2014, replaces the
WIA. 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 requires the CWIB to assist the Governor in helping
individuals with barriers to employment, including low-skill,
low-wage workers, the long-term unemployed, and members of
single-parent households, achieve economic security and upward
mobility by implementing policies that encourage the attainment
of marketable skills relevant to current labor market trends.
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 LWIBs 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 LWIBs.
Fifteen percent of Adult, Youth, and Dislocated Worker formula
funds (15% discretionary funds) are allocated to the state for a
variety of discretionary uses.
The CWIB is charged with developing a unified, strategic
planning process to coordinate various education, training, and
employment programs into an integrated workforce development
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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.
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
training - matching employers with skilled individuals by
promoting the use of industry and sector partnerships.
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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
SB 45 (Mendoza, 2015) is one of two bills being sponsored by the
California Labor and Workforce Development Agency and the CWIB
that will make the necessary changes to existing law for the
implementation of the federal 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. SB 45 is
pending in the Assembly.
AB 1270 (Garcia, 2015) is the second bill sponsored by the
California Labor and Workforce Development Agency and the CWIB
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 WIOA and makes
related conforming changes. AB 1270 is pending in the Assembly.
SB 118 (Lieu, Chapter 562, Statutes of 2013) required the 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 (Lieu) from 2012.
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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
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 the
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: No
SUPPORT: (Verified4/22/15)
American Association of University Women
California Budget Project
California Hospital Association
California Labor Federation, AFL-CIO
California Manufacturing and Technology Association
California Workforce Association
Career Ladders Project for the California Community Colleges
Los Angeles Area Chamber of Commerce
National Council of La Raza
Policy Link
San Francisco Jewish Vocational Services
State Building and Construction Trades Council of California
OPPOSITION: (Verified 4/22/15)
None received
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ARGUMENTS IN SUPPORT: According to the author, historically,
throughout our country, workforce development service providers
have focused their efforts on easier to place unemployed persons
and overlooked those with barriers to employment, like
low-skilled employees, who lack economic security. SB 342
ensures that, at the state level, we are prioritizing workforce
development in hard to serve communities for people with
barriers to employment, including low-skill, low-wage workers,
the long-term unemployed, and members of single-parent
households. The federal WIOA makes it clear the importance of
ensuring workforce development providers prioritize finding jobs
for those with barriers to employment. This bill will help
workers escape poverty by asking the CWIB to implement policies
that encourage the attainment of marketable skills relevant to
current labor market trends which will lead to economic security
and upward mobility.
Prepared by:Alma Perez / L. & I.R. / (916) 651-1556
5/6/15 17:02:24
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