BILL ANALYSIS Ó SB 342 Page 1 Date of Hearing: July 8, 2015 ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT Roger Hernández, Chair SB 342 (Jackson) - As Amended July 1, 2015 SENATE VOTE: 35-0 SUBJECT: California Workforce Investment Board: responsibilities. SUMMARY: 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 and defines "earn and learn", as specified. 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, SB 342 Page 2 including work incentive and employment training outreach 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. FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS: According to the author this bill seeks to prioritize funding for onsite compensated job training, keeping in line with the WIOA, by emphasizing the benefit of onsite job training for individuals with barriers to employment. The author points out that under this bill the CWIB would be directed to implement policies encouraging the attainment of marketable skills relevant to current labor market trends, which will lead to economic security and upward mobility for those underserved individuals with barriers to employment. SB 342 Page 3 Members of the CWIB are appointed by the Governor and represent the many facets of workforce development - business, labor, public education, higher education, economic development, youth activities, employment and training, as well as the Legislature. 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 local Workforce Investment Boards to support the emergence of effective statewide and regionally driven sector initiatives. Currently, the CWIB is responsible for assisting the Governor in all the functions outlined in the now outdated Workforce Investment Act of 1998. Through its broad membership, the CWIB encourages collaboration among both State and local public and private entities that have a vested interest in workforce issues. Federal WIOA The federal WIOA was signed into law by President Obama on July 22, 2014 and 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. Prior and Related Legislation SB 342 Page 4 SB 45 (Mendoza) of 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 this Committee. AB 1270 (Garcia) of 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 1507 (Labor Committee) of 2015 updates outdated references to WIA, different from AB 1270, to instead conform with the implementation of the new WIOA. 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. SB 1401 (Lieu) of 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 SB 342 Page 5 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. REGISTERED SUPPORT / OPPOSITION: Support American Association of University Women California Edge Coalition- California Budget Project California Hospital Association California Labor Federation, AFL-CIO California Manufacturing and Technology Association SB 342 Page 6 California Workforce Association Career Ladders Project for the California Community Colleges Los Angeles Area Chamber of Commerce National Council of La Raza Policy Link State Building and Construction Trades Council of California County Welfare Directors Association San Francisco Jewish Vocational Services SEIU California Opposition None on file. SB 342 Page 7 Analysis Prepared by:Lorie Alvarez / L. & E. / (916) 319-2091