BILL ANALYSIS                                                                                                                                                                                                    



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          ASSEMBLY THIRD READING
          AB 1559 (Labor and Employment Committee)
          As Amended  June 1, 2009
          Majority vote 

           LABOR AND EMPLOYMENT     7-0    APPROPRIATIONS      12-0        
           
           ------------------------------------------------------------------ 
          |Ayes:|Monning, Bill Berryhill,  |Ayes:|De Leon, Ammiano, Charles  |
          |     |Eng, Furutani, Gaines,    |     |Calderon, Davis, Fuentes,  |
          |     |Ma, Portantino            |     |Hall, John A. Perez,       |
          |     |                          |     |Price, Skinner, Solorio,   |
          |     |                          |     |Torlakson, Krekorian       |
          |-----+--------------------------+-----+---------------------------|
          |     |                          |     |                           |
           ------------------------------------------------------------------ 
           SUMMARY :  Adds provisions of law related to workforce  
          development and summer youth programs.  Specifically,  this bill  :

          1 Provides that local workforce investment boards shall  
            facilitate the implementation of summer youth training  
            programs through partnerships and effective collaboration.

          2)Requires the California Workforce Investment Board (CWIB), in  
            collaboration with local workforce investment boards, to  
            establish the California Youth at Work Program (Program) for  
            the purpose of providing summer job training and work  
            experience opportunities for youth in the state.

          3)Specifies that the Program shall include a work experience  
            component that conforms to the federal Workforce Investment  
            Act of 1998 and its implementing regulations.

          4)Specifies that eligible youth who participate in the Program  
            shall be between 14 years of age and 24 years of age.

          5)Requires the Program to focus primarily on providing summer  
            job training and work experience opportunities for youth in  
            the state.

          6)Specifies that the period of "summer" shall be from May 1  
            through September 30 of each year, but that program start and  
            end dates may vary within this time period.









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          7)Provides that Program services shall target low-income youth  
            and certain youth populations facing barriers to employment,  
            as specified.

          8)Provides that wages or stipends may be provided to youth in a  
            classroom-based component of a summer employment opportunity.

          9)Specifies that minors under 18 years of age who are enrolled  
            in the program shall be paid at least the applicable state  
            minimum wage and overtime rates.

          10)Provides that high school graduates or those persons holding  
            an equivalent degree shall be paid at a level commensurate  
            with adults doing the same job, when those individuals perform  
            the same quantity, quality, and classification of work.

          11)Requires the CWIB, in consultation with local workforce  
            investment boards, to request and obtain any necessary waivers  
            from the United States Department of Labor (DOL) to ensure  
            effective and efficient implementation of the Program.

          12)Requires the CWIB, in consultation with local workforce  
            investment boards, to evaluate the effectiveness of the  
            Program in providing summer job training services to youth,  
            and shall make public the results of that evaluation.

           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee, this bill facilitates expenditures of up to $1.2  
          billion of federal funds available for youth employment  
          activities.  By prescribing new duties for local workforce  
          investment boards, the bill contains significant (more than  
          $150,000) state mandated local costs, which are potentially  
          reimbursable.

           COMMENTS  :   The recently-enacted American Recovery and  
          Reinvestment Act (ARRA) of 2009 includes $1.2 billion in funding  
          for Workforce Investment Act (WIA) youth employment activities.   
          The ARRA also extended the eligibility for participation in WIA  
          youth employment programs from the statutory age of 21 to 24.   
          Local areas will have until June 30, 2011 to expend the funds.

          While the ARRA does not limit the use of youth funds to summer  
          employment, the Congressional explanatory statement states that  
          "the conferees are particularly interested in these funds being  








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          used to create summer employment opportunities for youth."

          The ARRA does not provide DOL with any policy guidance as to how  
          it should implement the youth employment program, nor does it  
          provide guidance as to what policies DOL and states and local  
          workforce investment boards should pursue to ensure that these  
          programs are successful.  Therefore, there is a need for further  
          policy direction at the state and local level.

          On March 18, 2009, the DOL's Employment Training Administration  
          (ETA) issued its own guidance letter with respect to  
          implementing WIA funding contained in the ARRA.  That guidance  
          letter states, "ETA strongly encourages states and local areas  
          to use as much of these funds as possible to operate expanded  
          summer youth employment opportunities during the summer of 2009,  
          and provide as many youth as possible with summer employment  
          opportunities and work experiences throughout the year, while  
          ensuring that these summer employment opportunities and work  
          experiences are high quality. ETA is also particularly  
          interested in and encourages states and local areas to develop  
          work experiences and other activities that expose youth to  
          opportunities in 'green' educational and career pathways."

          This bill is sponsored by the California Workforce Association  
          (CWA) and is intended to facilitate ongoing discussions with  
          stakeholders about how California can provide policy guidance  
          and maximize the success of summer youth training programs,  
          including those funded through the recent ARRA.


          Specifically, CWA indicates that it is working with stakeholders  
          on exploring ways to provide meaningful work-based learning  
          experiences for youth, to ensure referrals from the county  
          welfare systems for youth eligible to participate in these  
          programs, to ensure that eligible youth have access to  
          pre/apprenticeship programs in growing sectors, including  
          opportunities in 'green' educational and career pathways, and to  
          remove barriers to serving at risk youth.


          CWA states that it is working with the Administration and  
          representatives of the labor, human services, and education  
          communities and would like for this vehicle to move while these  
          discussions continue.








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          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091 




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