BILL ANALYSIS
AB 1323
Page 1
Date of Hearing: April 22, 2009
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
William W. Monning, Chair
AB 1323 (Bonnie Lowenthal) - As Amended: April 14, 2009
SUBJECT : Job creation.
SUMMARY : Requires the Employment Development Department (EDD)
to ensure that information is posted or otherwise made available
at all one-stop centers in the state regarding any jobs that
have been or will be created in this state (1) as a result of
economic stimulus funding provided to the state pursuant to the
American Recovery and Reinvestment Act (ARRA) of 2009 or (2)
from the proceeds from the sale of state infrastructure bonds.
FISCAL EFFECT : Unknown
COMMENTS : On March 18, 2009, the U.S. Department of Labor
Employment and Training Administration (ETA) issued a guidance
letter for implementation of the American Recovery and
Reinvestment Act of 2009.
Among other things, the guidance letter stated the following:
"ETA strongly encourages State Workforce Administrators to
work closely with their Governors and State Workforce
Investment Boards to facilitate the listing of all jobs
generated through the Recovery Act on their State Job
Banks. Governors in several states are requiring such
listings. This will enable all job seekers to view and, if
appropriate, pursue new jobs created, as well assist job
placement coordinators in identifying reemployment
opportunities for job seekers. In order to foster greater
accountability and transparency in the use of Recovery Act
funds, states should also note that the Act requires the
federal government to include on www.Recovery.gov links to
and information about how to access job and registered
apprenticeship opportunities, local employment agencies,
and State Job Banks."
Similarly, on March 10, 2009, the National Governor's
Association released a report entitles, "State Implementation of
the American Recovery and Reinvestment Act." The report noted
that the ARRA will have a huge impact on state government
AB 1323
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because it will affect about 50 state formula and discretionary
grants as well as about 15 entitlement and anti-cyclical
programs. States or individuals through state programs will
receive over $250 billion from the package.
The report also stated the following with respect to
accountability and job creation issues related to the ARRA:
"The legislation contains numerous provisions to ensure
that the appropriated funds are spent as intended by the
Congress. As a result, state activities will be subjected
to extensive public scrutiny and to enhanced oversight by a
variety of federal entities, including federal program
managers, agency inspectors general, and the Government
Accountability Office. Federal efforts will be coordinated
by a newly established Accountability and Transparency
Board that will be chaired by the President's Chief
Performance Officer and include six members designated by
the President from among the inspectors general and deputy
secretaries. The board is charged with:
Ensuring that reporting meets applicable standards;
Verifying compliance with competition requirements;
and
Investigating spending to identify poor contract
management, fraud, or waste.
The legislation requires the board to establish a Web site,
www.recovery.gov , as a portal or gateway to key information
related to the act and to provide a window to other
government websites with related information. States will
be required to use this Web site to post information on the
use of both operational funding and infrastructure
investments. The required information is generally more
detailed than mandated by current statutes and will
include:
Descriptions of the intended use of the funds;
Impact on job development and preservation; and
Copies of individual grants and contracts.
The legislation includes substantial increases in the
appropriations for the Government Accountability Office and
departmental inspectors general. It requires grantees to
provide federal reviewers with unfettered access to state
records. It also establishes new whistle-blower
protections, including the authority for federal inspectors
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general to review and decide claims regarding retaliation."
According to the author, who is the sponsor of this bill:
"The public workforce system has been tasked to train people
for the jobs being created through ARRA. To ensure a
connection between job training and job creation efforts,
there should be mechanisms in place to provide access to ARRA
created jobs for job seekers and trainees. This bill seeks
to achieve that end by utilizing and optimizing existing
infrastructure-the statewide career system-given the need for
expedited implementation.
The U.S. Department of Labor has provided guidance to states
encouraging that they post "shovel-ready" infrastructure
project related positions in public job banks, and to fill
these positions through the One-Stop Career Center System.
The National Governor's Association also recommended that
states post these jobs. States are in the process of
determining if and how they will post the infrastructure and
other ARRA related positions. It is anticipated that the
Obama Administration will closely monitor the relationship
between funding, job creation, and the numbers of job
placements. Workforce Investment Boards and state agencies
should be consulted to determine the most effective way for
doing this, e.g., existing statewide systems, local systems,
or developing a new site for posting these positions."
REGISTERED SUPPORT / OPPOSITION :
Support
California Workforce Association
Opposition
None on file.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091