BILL ANALYSIS                                                                                                                                                                                                    





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          GOVERNOR'S VETO
          AB 1559 (Labor and Employment Committee)
          As Amended  September 2, 2009
          2/3 vote

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          |ASSEMBLY:  |74-0 |(June 2, 2009)  |SENATE: |32-6 |(September 3,  |
          |           |     |                |        |     |2009)          |
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          |ASSEMBLY:  |78-0 |(September 9,   |        |     |               |
          |           |     |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  










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            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.

          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  










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            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 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  










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          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).

           GOVERNOR'S VETO MESSAGE  :

               This bill requires the California Workforce Investment  
               Board, in collaboration with local workforce  
               investment boards, to establish a California Youth at  
               Work Program, for the purpose of providing summer job  
               training and work experience opportunities for youth  
               in the state.  While I support such an effort, this  
               bill is unnecessary and could prove burdensome if it  
               conflicts with the summer youth work programs the  
               local workforce development boards are already in the  
               process of developing.  The American Recovery and  
               Reinvestment Act provided funding specifically for a  
               summer youth work program, which has already been  
               distributed to the locals, and established specific  
               criteria for the program.  To the extent that this  
               bill imposes additional requirements on the local  
               workforce investment boards, it could hamper, rather  
               than aid, in the development of effective programs.


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


                                                                 FN:  
          0003261