BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
3 (V Perez)
Hearing Date: 8/17/2009 Amended: 8/17/2009
Consultant: Bob Franzoia Policy Vote: L&IR 4-2
_________________________________________________________________
____
BILL SUMMARY: AB 3 would require the California Workforce
Investment Board (CWIB), by January 1, 2011, in consultation
with the Green Collar Jobs Council (GCJC), to establish a
Renewable Energy Workforce Readiness Initiative to ensure green
collar career opportunities are targeted towards specified
populations. This bill would require the CWIB provide guidance
to local workforce investment boards (LWIBs) on how to establish
comprehensive green collar job assessment, training, and
placement programs that reflect the local and regional
economies. This would require the CWIB to assist the LWIBs in
analyzing labor market data, in order to assess local or
regional industry cluster workforce development needs. This
bill would impose new duties on LWIBs to revise memberships and
plan requirements, thereby creating a state mandated local
program. The CWIB would be required to implement the provisions
of this bill using moneys made available to the CWIB from
American Recovery and Reinvestment Act (ARRA) funds appropriated
to the state, to the extent that those funds are available for
that purpose.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Renewable Energy Workforce Unknown, major costs ongoing to the
Federal/
Readiness Initiative CWIB and for the reimbursement of General
LWIB mandated costs
* Federal American Recovery and Reinvestment Act (ARRA) of 2009
until exhausted, then General Funds ongoing
_________________________________________________________________
____
STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
There is ARRA funding available for allowable activities; both
the activities questioned are allowable. These activities are
not specifically defined or identified in the ARRA language, but
are allowable and under the purview of the CWIB and GCJC.
Currently, the CWIB has proposed to use of ARRA funding to fund
technical assistance grants to LWIBs to develop regional
collaborations and data driven research methods to develop green
and industry focused programs. This will provide the impetus to
launch the CWIB's/GCJC sector strategy approach though post-ARRA
funding may become a large issue with the LWIBs. Additionally,
this bill may be duplicative of existing efforts. Specifically,
the WIA already charges the CWIB with providing guidance and
policy recommendations to the LWIBs. The issues and concerns of
this bill are already part of the work of the GCJC.
The Renewable Energy Workforce Readiness Initiative would:
Page 2
AB 3 (V Perez)
(1) Provide guidance to LWIBs on how to establish comprehensive
green collar job assessment, training, and placement programs.
(2) Require CWIB to assist the LWIBs in collecting and analyzing
data in order to assess needs.
As noted above, the provisions of this bill are consistent with
ARRA guidelines and ARRA funds may be used to fund the
implementation of the Renewable Energy Workforce Readiness
Initiative. This funding is currently available in 2009-10 and
part of 2010-11 but is not available ongoing. When all ARRA for
this purpose are expended, the Renewable Energy Workforce
Readiness Initiative may become a General Fund obligation. In
order to limit new General Fund costs, staff recommends this
bill be amended to require any CWIB and mandated LWIB costs
associated with the initiative be reimbursed with ARRA funds and
to terminate the program when there is no longer sufficient ARRA
or other federal funds to pay for the program.