BILL ANALYSIS                                                                                                                                                                                                    






                 Senate Committee on Labor and Industrial Relations
                               Mark DeSaulnier, Chair

          Date of Hearing: June 24, 2009               2009-2010 Regular  
          Session                              
          Consultant: Gideon L. Baum                   Fiscal:No
                                                       Urgency: No
          
                                   Bill No: AB 271
                                   Author: Solorio
                      Version: As Introduced February 12, 2009
          

                                       SUBJECT
          
               California YouthBuild Program: funding and designation.


                                      KEY ISSUE

          Should the Legislature conform the California YouthBuild Progam  
          to existing federal law?
          

                                       PURPOSE
          
          To conform the California YouthBuild Program to federal  
          YouthBuild Transfer Act in order to avoid future problems with  
          compliance and grant eligibility.


                                      ANALYSIS
          
           Existing federal law:  

             1)   Establishes the YouthBuild Transfer Act (YBTA) which,  
               among other reforms, transferred administration of the  
               federal YouthBuild Program from the HUD to the DOL;

             2)   Authorizes the federal YouthBuild Program to give grants  
               for the provision of job training and educational  
               activities to at-risk youth who, as part of their training,  
               help construct or rehabilitate  housing for low-income or  
               homeless individuals and families in their respective  
               communities.
            









           Existing state law:

             1)   Establishes the California YouthBuild Program within the  
               Employment Development Department (EDD) to provide grants  
               to organizations which employ and train disadvantaged youth  
               in conjunction with the construction or rehabilitation of  
               housing for low-income and other specified populations;

             2)   Allows EDD to accept proposals for funding from  
               applicants who establish their eligibility by submitting  
               proof that they have been funded or designated as a federal  
               YouthBuild Program by HUD;

             3)   Authorizes the director of EDD to contract with  
               qualified nonprofit organizations to provide technical  
               assistance to YouthBuild Programs.
           

          This bill  would conform the California YouthBuild Program (YBP)  
          with the federal YouthBuild Transition Act (YBTA) by revising  
          provisions in current law that make reference to Department of  
          Housing and Urban Development (HUD) to instead refer to  
          Department of Labor (DOL). 


                                      COMMENTS
          
          1.  Need for this bill?

             The YouthBuild Program was originally started on the federal  
            level in 1992 under the Cranston-Gonzalez National Affordable  
            Housing Act.  The Legislature created the California  
            YouthBuild Program (CYBP) in 1999 with AB 643 (Wesson), which  
            created the CYBP within Employment Development Department  
            (EDD) and required that the CYBP used the existing federal  
            infrastructure created by the federal Department of Housing  
            and Urban Development (HUD) as much as was possible.

            The YouthBuild Program authorizes grants for the provision of  
            job training and education activities for at-risk youth.  As  
            part of their training, YouthBuild participants construct or  
            rehabilitate housing for low-income or homeless individuals,  
          Hearing Date:  June 24, 2009                             AB 271  
          Consultant: Gideon L. Baum                               Page 2

          Senate Committee on Labor and Industrial Relations 
          








            and families, while also receiving classroom instruction, job  
            skill development, and on-site training in a construction  
            trade.

            In 2006, then-President Bush signed the YouthBuild Transfer  
            Act, which moved the YouthBuild program from HUD to the  
            federal Department of Labor (DOL) in order to link the program  
            with the Workforce Investment Act (WIA) system, including  
            One-Stop Career Centers and local workforce investment boards.

            This bill is nearly identical to the amended version of AB  
            1982 (Solorio) from last year which passed the Senate  
            Committee on Labor and Industrial Relations on consent.  It  
            was vetoed by the Governor and in his veto message he stated: 

                "The historic delay in passing the 2008-2009 State  
                Budget has forced me to prioritize the bills sent  
                to my desk at the end of the year's legislative  
                session.  Given the delay, I am only signing bills  
                that are the highest priority for California.  This  
                bill does not meet that standard and I cannot sign  
                it at this time."



          2.  Proponent Arguments :
            
            Proponents of AB 271 note that YouthBuild programs are  
            designed to give at-risk youth, as well as those on probation  
            or parole, a chance for educational advancement and on-site  
            job training.  Specifically, the YouthBuild program provides  
            young men and women their high school diplomas, while also  
            building affordable housing for homeless and low-income  
            families, sometimes in the neighborhoods where they live.  The  
            proponents also report that the YouthBuild programs have a  
            high level of success nationally, with only 15% of the  
            participants committing a misdemeanor after enrollment, and  
            only 9% committing a felony after enrollment.  In California,  
            the success is even greater, with a recidivism rate of less  
            than 10% for some programs.  Finally, proponents note that  
            this bill is a minor, technical change that will ensure  
            compliance with federal law.
          Hearing Date:  June 24, 2009                             AB 271  
          Consultant: Gideon L. Baum                               Page 3

          Senate Committee on Labor and Industrial Relations 
          









          3.  Opponent Arguments  :

            None received.

          4.  Prior Legislation  :

            AB 643 (Wesson), Statutes of 1999, Chapter 829, established  
            the California YouthBuild Program with the Employment  
            Development Department (EDD).

            AB 1982 (Solorio) of 2008 was nearly identical to this bill,  
            and it was discussed above.  AB 1982 was vetoed by the  
            Governor.


                                       SUPPORT
          
          California YouthBuild Coalition (Sponsor)
          American Federation of State, County and Municipal Employees  
          (AFSCME)
          California Peace Officers' Association
          California Police Chiefs Association
          

                                     OPPOSITION
          
          None received.


                                        * * *










          Hearing Date:  June 24, 2009                             AB 271  
          Consultant: Gideon L. Baum                               Page 4

          Senate Committee on Labor and Industrial Relations