BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 342|
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UNFINISHED BUSINESS
Bill No: SB 342
Author: Jackson (D)
Amended: 8/27/15
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
SENATE FLOOR: 35-0, 5/11/15
AYES: Allen, Bates, Beall, Berryhill, Block, Cannella, Fuller,
Gaines, Galgiani, Hall, Hancock, Hernandez, Hertzberg, Hill,
Hueso, Huff, Jackson, Lara, Leno, Leyva, McGuire, Mendoza,
Mitchell, Monning, Moorlach, Nguyen, Nielsen, Pan, Pavley,
Roth, Runner, Stone, Vidak, Wieckowski, Wolk
NO VOTE RECORDED: Anderson, De León, Liu, Morrell
ASSEMBLY FLOOR: 80-0, 8/31/15 - See last page for vote
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. This
bill also defines "earn and learn" job training opportunities,
SB 342
Page 2
as specified, and incorporates language adopted pursuant to AB
1270 (Garcia, Chapter 94, Statutes of 2015) to avoid chaptering
issues.
Assembly Amendments add a definition for "earn and learn" job
training programs as well as incorporated language to address
chaptering issues.
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
programs.
2)Establishes the CWIB and charges 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.
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5)Requires the CWIB, in consultation with the Division of
Apprenticeship Standards, to identify opportunities for "earn
and learn" job training models that meet an industry's
workforce demands and that are in high-wage, high-demand jobs,
identify and develop specific requirements and qualification
for entry and establish standards for these programs that are
outcome oriented and accountable, as specified.
This bill:
1)Requires, additionally, 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.
2)Encourages state and local investment boards to collaborate
with specified stakeholders in adopting local and regional
training and education strategies that include workplace-based
"earn and learn" programs that build on the strengths and fill
the gaps in the education and workforce development pipeline,
as specified.
3)Defines "earn and learn" as a program that does either of the
following:
a) Combines applied learning in a workplace setting with
compensation allowing the individual to gain work
experience and secure a wage as they develop skills and
competencies directly relevant to the occupation.
b) Brings together classroom instruction with on-the-job
training to combine both formal instruction and actual paid
work experience.
4)Incorporates additional changes to Sections 14000, 14005, and
14013 of the
Unemployment Insurance Code made by this bill and AB 1270
(Garcia, Chapter 94, Statues of 2015) to take effect if both
bills are chaptered and this bill is chaptered last.
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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
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
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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.
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.
Related/Prior Legislation
SB 45 (Mendoza, 2015) is one of two 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
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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.
AB 1270 (Garcia, Chapter 94, Statutes of 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.
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, 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
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: No
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According to the Assembly Appropriations Committee, there are
minor/absorbable costs to CWDB to implement workforce policies
consistent with the requirements of this bill.
SUPPORT: (Verified8/31/15)
American Association of University Women
California Budget Project
California EDGE Coalition
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
Service Employees International Union
State Building and Construction Trades of California
OPPOSITION: (Verified8/31/15)
None received
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
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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.
ASSEMBLY FLOOR: 80-0, 8/31/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,
Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,
Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,
Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
Prepared by:Alma Perez / L. & I.R. / (916) 651-1556
8/31/15 19:52:01
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