BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1567
                                                                  Page  1

          Date of Hearing:   April 30, 2009

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                              William W. Monning, Chair
             AB 1567 (Veterans Affairs Committee) - As Introduced:  March  
                                      16, 2009
           
          SUBJECT  :  Employment Training Panel: 3-year plan: training  
          programs: veterans.

           SUMMARY  :  Requires the Employment Training Panel's (ETP) 3-year  
          plan to include employment training goals, objectives, and  
          strategies that may be implemented supporting targeted  
          populations in need of training, including military veterans.

           EXISTING LAW:
           
          1)Provides for the establishment of employment training programs  
            and specifies which individuals qualify as "eligible  
            participants" of the training programs.

          2)Establishes the Employment Training Panel (ETP) in the  
            Employment Development and requires the Governor to appoint  
            the executive director and two assistant directors of ETP  
            specifying that at least one assistant director have  
            experience serving the needs of small business.

          3)Provides that ETP is governed by eight panel members.  Seven  
            are appointed by the Governor and the leadership of the  
            Legislature and have backgrounds in business management and  
            employee relations, as specified.  The Secretary of Business,  
            Transportation and Housing, or his/her designee, shall serve  
            as an ex officio, voting member.


          4)Specifies the duties of ETP to include the duty to make  
            contracts for training in job-related vocational  skills, as  
            specified and permits the ETP, subject to certain  
            requirements, to delegate its authority to approve contracts  
            for new hire training to any entity, as specified, for  
            purposes of serving the needs of small businesses.


          5)Requires the ETP, among other things, to establish a 3-year  
            plan, as specified, that must be updated annually to establish  








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            minimum standards for the consideration of proposals,  
            including the identification of employers and to develop a  
            process by which local workforce investment boards may apply  
            for marketing resources for the purpose of identifying local  
            employers that have training needs reflecting the priorities  
            of the panel.  Authorizes the ETP to delegate its authority to  
            approve contracts for training to local workforce investment  
            boards, as provided.

          6)Requires the ETP to allocate its annual funds for the training  
            programs designed for individuals who are currently working  
            and receiving specified benefits, as provided.

          7)Authorizes the ETP to utilize funds in the Employment Training  
            Fund (ETF) for, among other expenditures, the purpose of  
            funding up to five licensed nurse training programs to train  
            individuals who are currently working as nurse assistants or  
            caregivers in a health facility, as defined.


           FISCAL EFFECT  :  Unknown

           COMMENTS  :  According to the author's office a skilled workforce  
          is key to a company's ability to remain competitive.  Employers  
          must be able to effectively train workers and to maintain a  
          skilled workforce capable of responding to changing business and  
          industry needs.  While the need for workforce training is  
          critical, businesses generally reserve training dollars for  
          training in highly technical and professional occupations -  
          limiting investment in training for frontline workers who  
          actually provide goods and deliver services.  ETP helps to fill  
          this gap by funding training that targets frontline workers.

          The ETP is a business and labor supported state agency that  
          assists employers in strengthening their competitive edge by  
          providing funds to off-set the costs of job skills training  
          necessary to maintain high-performance workplaces and provides  
          up to $120 million in job training funds annually to employers  
          throughout California.  ETP was founded in 1983 and has invested  
          over a billion dollars to train California workers since its  
          inception. 

          According to the Veteran Affairs Committee analysis, in recent  
          years, ETP has faced significant reductions in its funding.  In  
          Fiscal Year (FY) 2007-08, ETP's appropriation is almost 30  








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          percent below ETP's historical funding level.  ETP has also  
          experienced a 27 percent reduction in staff in the past few  
          years.  Thus, ETP's biggest challenge is to determine how to  
          best utilize its finite funds and limited staff resources to  
          carry out its mission.
           
          The Strategic Plan outlines ETP's strategies for accomplishing  
          its mission in the next fiscal year based on an assessment of  
          the state of the economy, priority industries, ETP's economic  
          development role, employer demand for training, key workforce  
          trends and training needs, and ETP's budget and available  
          resources.  The Plan establishes funding priorities, and  
          corresponding goals and objectives to address ETP's challenges  
          and opportunities.

           PRIOR LEGISLATION  :

          This bill is similar, but not identical, to AB 3066 (Committee  
          on Veterans Affairs) from last session.  That measure was vetoed  
          by the Governor.
            
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association of Veterans Services Agencies

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Lorie Erickson / L. & E. / (916)  
          319-2091