BILL ANALYSIS
AB 165
Page 1
Date of Hearing: May 20, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 165 (Carter) - As Amended: May 5, 2009
Policy Committee: Jobs Vote:7 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill declares that it is a new state policy that the state
will provide individuals with the opportunity to learn skills
needed to pursue self-employment opportunities. Specifically,
this bill:
1)States that in fulfilling the duties of the federal Workforce
Investment Act of 1998 (WIA) that it is important that all
Californians have the opportunity to receive entrepreneurial
and self-employment training.
2)States that it is the policy of the state, to the extent
feasible, to provide individuals with the opportunity to learn
skills needed to pursue self-employment opportunities.
3)Requires the California Workforce Investment Board (CWIB) to
make recommendations to the governor on how to target
resources to high-wage industry sectors that are either
high-growth sectors or critical to California's economy.
4)Requires CWIB to provide guidance to the governor to ensure
that services reflect the needs of high-wage industry sectors.
5)Requires CWIB to provide technical assistance on
entrepreneurial training opportunities that could be made
available through programs of local workforce investment
boards.
FISCAL EFFECT
1)The state currently spends in excess of $500 million a year on
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job training. Fulfilling the intent of this legislation,
which states that all Californians should have the opportunity
to receive entrepreneurial training, and creating a state
policy to provide the skills necessary to pursue
self-employment would cause tremendous pressure on the
available job training funding in the state and would require
a shift of a significant portion of those dollars to
entrepreneurial training.
2)Annual GF costs in the range of $250,000 for CWIB to provide
the additional technical assistance and guidelines required by
this legislation, and for CWIB to work with local area offices
to determine what might be done to increase entrepreneurship
training.
COMMENTS
1)Purpose . This bill is intended to provide better technical
assistance and training to entrepreneurs who start or operate
small businesses in the state. According to the author, this
bill will provide support for low-income communities by
creating more opportunities for small business development.
2)California Workforce Investment Board (CWIB) . The board is
responsible for assisting the governor in performing the
duties and responsibilities required by the federal Workforce
Investment Act of 1998. All members of the board are
appointed by the governor and represent various facets of
workforce development - business, labor, public education,
higher education, economic development, youth activities,
employment and training, as well as the Legislature.
California's 49 local workforce investment areas are
designated by the governor based on population and commonality
of labor market. Each area is administered by a local
workforce investment board certified by the state in
partnership with local elected officials. These boards are
comprised of representatives from private sector businesses,
organized labor, community-based organizations, local
government agencies, and local education agencies. These
boards provide policy guidance, designate operators for their
area's One-Stop Career Centers, and oversee the job training
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activities within their local areas.
3)Related Legislation . This bill is similar to last year's AB
2998. That bill was held on the Senate Appropriations
Committee's suspense file.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081