BILL ANALYSIS                                                                                                                                                                                                    

                                                                AB 1559
                                                                Page  1


        CONCURRENCE IN SENATE AMENDMENTS
        AB 1559 (Labor and Employment Committee)
        As Amended  September 2, 2009
        Majority vote
         
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        |ASSEMBLY:  |74-0 |(June 2, 2009)  |SENATE: |32-6 |(September 3,  |
        |           |     |                |        |     |2009)          |
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         Original Committee Reference:   L. & E.  

         SUMMARY  :  Adds provisions of law related to workforce development  
        and summer youth programs.  

         The Senate amendments  :

        1 Eliminate the requirement that the California Workforce Investment  
          Board (CWIB), in consultation with local workforce investment  
          boards, evaluate the effectiveness of the California Youth at Work  
          Program in providing summer job training services to youth, and  
          shall make public the results of that evaluation.

        2)Require that any mandated CWIB costs be reimbursed with federal  
          American Recovery and Reinvestment Act (ARRA) funds.

        3)Terminate the California Youth at Work Program when there is no  
          longer sufficient ARRA or other federal funds available to pay for  
          the program.

         AS PASSED BY THE ASSEMBLY  , this bill:

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

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







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

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

        6)Specified 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.

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

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

        9)Specified 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)Provided 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)Required 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)Required 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 Senate Appropriations Committee,  
        recent amendments require that any mandated CWIB costs be reimbursed  
        with federal ARRA funds and terminate the program when there is no  
        longer sufficient ARRA or other federal funds available to pay for  
        it.

         COMMENTS  :   The recently-enacted 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  






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        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 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).


         Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091FN:   
        0002582