BILL ANALYSIS
AB 1320
Page 1
ASSEMBLY THIRD READING
AB 1320 (Fong)
As Amended June 1, 2009
Majority vote
LABOR AND EMPLOYMENT 6-1 APPROPRIATIONS 12-5
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|Ayes:|Monning, Bill Berryhill, |Ayes:|De Leon, Ammiano, Charles |
| |Eng, Furutani, Ma, | |Calderon, Davis, Fuentes, |
| |Portantino | |Hall, John A. Perez, |
| | | |Price, Skinner, Solorio, |
| | | |Torlakson, Krekorian |
| | | | |
|-----+--------------------------+-----+---------------------------|
|Nays:|Gaines |Nays:|Nielsen, Duvall, Harkey, |
| | | |Miller, |
| | | |Audra Strickland |
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SUMMARY : Establishes the Lifelong Learning Accounts Pilot
Program (Program) for the purpose of providing grants to
employers and employees to be used to establish individual
lifelong learning accounts for the deposit of funds to be used
by the employees and employers for lifelong training and
education. Specifically, this bill :
1)Establishes the Program for the purpose of providing grants to
employers and employees for purposes related to lifelong
education and training by January 1, 2012.
2)Requires the California Workforce Investment Board (Board) to
establish a grant program to provide grants to employers and
employers, thereby encouraging them to save for lifelong
education and training, as specified.
3)States that the Board may contract with an individual,
nonprofit organization or other business to administer and
implement the grant program.
4)Specifies the Board shall make education, career advising and
other support services available to employees under the
Program and shall provide technical assistance to employers to
help implement the grant program. The Board may use grant
AB 1320
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funds to offset the costs of support services, technical
assistance and program administration.
5)Establishes within the State Treasury, a Lifelong Learning
Program Fund to receive contributions in the form of matching
grant funds from individuals, foundations, nonprofit
organizations, businesses and the federal government to be
used for the program.
6)Requires the Board to prepare and submit a report to specified
Legislative committees at least 20 days prior to the date the
Legislature reconvenes in 2012.
7)Requires the Board, after consultation with the Treasurer and
Scholarshare Investment Board, to adopt rules and regulations
necessary to ensure the implementation and administration of
the Program.
8)States that the Program shall only be implemented if the
Director of Finance determines in writing that there are
sufficient funds available from sources other than the General
Fund for the Program.
EXISTING FEDERAL LAW :
1)Establishes the federal Workforce Investment Act of 1998,
which provides for workforce investment activities that states
may participate in.
2)Amends the Internal Revenue Code of 1986 to establish LiLA
accounts providing tax incentives to employees and employers
that participate in the accounts.
EXISTING STATE LAW establishes the California Workforce
Investment Act, requiring the Board to assist the Governor in
performing specified duties relating to the development,
implementation, and promotion of various workforce development
activities, job training, and employment investment and work
incentive programs, as specified.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, unknown but potentially significant costs - from
either private, federal or state non-GF sources - to establish
grant program.
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COMMENTS : According to the author's office background
information this bill establishes a pilot project that would
establish Lifelong Learning Accounts (LiLA's) to help employees
save for additional training and education. The funds would be
employer matched and eligible for third party contributions.
Eligible expenses would include tuition, fees, books, and
supplies. Educational and career advising services would be
made available to the participants. The accounts would be held
under the state Treasurers Office and the Scholarshare program
in an effort to encourage employees to save for their own
training and to encourage them to save for the future
educational needs of their children.
California has a lower rate of those completing high school
(80.2%) than the national average (85.9%) and even lower than
other educated countries (93.5%). Approximately, 15.2 million
or 66% of California's working age adults do not have an
Associate's degree or higher, 4.3 million have not completed
high school, and 2.6 million speak little or no English. While
the percentage of college graduates was on the rise for several
decades, the trend has started to slow at a time when a higher
skill set is being required for many jobs.
Many low-income workers are being left behind as tuition costs
increase and there are limited resources available to help with
these costs. The LiLA is an innovative way to address this
problem.
Over the past five years there have been a variety of
demonstration projects in California, Iowa, Illinois, Kansas,
Missouri, Maine, and Washington.
The California LiLA project is operated by San Francisco Jewish
Vocational Service in partnership with the Council for Adult and
Experiential Learning (CAEL). Four employers are sponsoring
LiLAs for their workers, three of which are in the health care
sector and in the public sector. Participants have used their
LiLAs for a range of training from intensive language skills for
health personnel to nursing school. The career advising
component assists older workers in contemplating a career change
or advancement with their current employer. The results have
been positive and form the basis for this bill which would seek
to replicate these pilots in other areas of the state.
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This bill differs from others that might be available in that it
will cover a broader array of costs, and requires the employee
and employer to participate in the savings account. The
services provided include the crucial component of advising
employees of their choices so that employees can make informed
decisions about possible career paths. Further, the tie to
Scholarshare would provide a safe place for the funds to grow so
they could be used for upgrading skills for the workforce.
Analysis Prepared by : Lorie Erickson / L. & E. / (916)
319-2091
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