BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1323
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                  AB 1323 (Lowenthal) - As Amended:  April 14, 2009 

          Policy Committee:                              Labor and  
          Employment   Vote:                            6-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Employment Development Department (EDD)  
          to ensure that information is posted at all one-stop centers  
          regarding jobs 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
           
          1)Unknown, potentially significant (more than $150,000) cost to  
            EDD to develop and enforce regulations related to a new  
            reporting requirement.

          2)Unknown, but significant costs to EDD to develop new systems  
            to track infrastructure funds (likely several hundreds of  
            thousands of dollars). Jobs related to bond-funded  
            infrastructure contracts are not currently posted on CalJOBs. 
           
          COMMENTS

          1)Background  . 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 (ARRA). The letter 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.

           2)Rationale  . This bill is intended to implement the ETA  








                                                                  AB 1323
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            recommendations in California and extend them to funding for  
            California infrastructure bonds. The author indicates that the  
            measure will help coordinate job training and job creation  
            efforts of EDD by providing access to jobs created by ARRA.

           3)Issue  .  EDD indicates that ARRA job related information is  
            currently collected on a voluntary basis through its internet  
            job exchange (CalJOBS).  Mandatory inclusion of the  
            information would require EDD to adopt new regulations, and  
            could deter some employers from using the system. EDD also  
            indicates that it has no method or legal authority for  
            tracking jobs related to infrastructure bonds. This is because  
            employers providing the successful bid on contracts contact  
            the unions directly if they need employees and the positions  
            are not listed on CalJOBS. 
           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081