BILL ANALYSIS
Senate Committee on Labor and Industrial Relations
Mark DeSaulnier, Chair
Date of Hearing: July 8, 2009 2009-2010 Regular
Session
Consultant: Alma Perez Fiscal:Yes
Urgency: No
Bill No: AB 1567
Author: Assembly Committee on Veterans Affairs
Version: As introduced March 16, 2009
SUBJECT
Employment training panel: 3-year plan: training programs:
veterans.
KEY ISSUE
Should the Legislature require that the Employment Training
Panel (ETP) address specific employment needs of veterans and
other target populations in its three-year plan?
PURPOSE
To add an additional requirement to the ETP's three-year plan
that addresses employment training goals for target populations,
as specified.
ANALYSIS
Existing law establishes the Employment Training Panel (ETP) in
the Employment Development Department (EDD). The ETP 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. ETP is governed by an
eight member panel, seven of which are appointed by the Governor
and both the Assembly and Senate leadership, as specified.
Under existing law , ETP has specified duties, including the duty
to provide financial assistance to California businesses to
support customized worker training that:
Attracts and retains businesses that contribute to a
healthy California economy;
Provides workers with secure jobs that pay good wages
and advancement opportunities;
Assists employers to successfully compete in the global
economy; and
Promotes the benefits and ongoing investment of training
among employers.
Existing law requires that the panel establish a 3-year plan, as
specified, that must be updated annually to establish minimum
standards for the consideration of proposals and to develop a
process by which local workforce investment boards may receive
funds to help identify local employers that have training needs
reflecting the priorities of the panel. Existing law authorizes
the panel to allocate up to 10% of the annually available
training funds for special employment training projects that
improve the skills of workers. ETP is also authorized to fund
up to five licensed nurse training programs to train individuals
who are currently working as nurse assistants or caregivers in a
health facility.
Under existing law , the ETP program is funded by the Employment
Training Tax paid by California employers, and targets firms
threatened by out-of-state and international competition.
Existing law requires that the panel prioritize funding to small
businesses and employers in high unemployment areas of the
State. Existing law also requires the ETP to maintain a system
to continuously monitor economic and other data required under
the plan, and requires that the plan include specified
components to identify and address employment training needs in
the state.
This Bill would additionally require that the ETP's three-year
plan include employment training goals, objectives, and
strategies that may be implemented to support target populations
in need of employment training, including military veterans.
COMMENTS
Hearing Date: July 8, 2009 AB 1567
Consultant: Alma Perez Page 2
Senate Committee on Labor and Industrial Relations
1. Need for this bill?
The Employment Training Panel, within the Labor and Workforce
Development Agency, provides funding for employment training
programs with revenues from an employer tax. Since its
inception in 1983, the program has provided over $1 billion to
train more than 700,000 workers in over 60,000 California
companies. According to the ETP, independent research has
documented a return on investment of over $5 for every $1 in
ETP funds spent on training. The ETP program is
performance-based, providing funds for trainees who
successfully complete training and are retained in well-paying
jobs for a specific period of time. ETP also funds training
for unemployed workers.
A similar but more extensive version of this bill, AB 3066 by
the Assembly Committee on Veterans' Affairs, was passed but
vetoed by the Governor last year. Last years bill would have
expanded the list of projects that qualify for priority
funding by ETP to include projects supporting veterans, as
specified, in addition to requiring that ETP include training
goals, objectives, and strategies to support target
populations, including veterans, in its three-year plan. AB
3066 was one of the bills the Governor vetoed last year as a
result of the budget impasse. AB 1567 of this year would
again require the ETP to include these goals, objectives and
strategies as part of its three-year plan.
2. Proponent Arguments :
According to the author, a skilled workforce is key to a
company's ability to remain competitive. The author believes
that employers must be able to effectively train workers and
maintain a skilled workforce capable of responding to changing
business and industry needs. While the need for workforce
training is critical, the author argues, 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. The ETP helps to fill this gap--funding training
that is targeted to frontline workers.
Hearing Date: July 8, 2009 AB 1567
Consultant: Alma Perez Page 3
Senate Committee on Labor and Industrial Relations
According to the author, in recent years, the ETP has faced
significant reductions in its funding in addition to reduction
in staffing levels. The author believes that as a result of
these funding reductions, the ETP's biggest challenge is to
determine how to best utilize its finite funds and limited
staff resources to carry out its mission. This bill would
require the ETP to also include in their three-year plan
training goals, objectives, and strategies that may be
implemented to support target populations in need of
employment training, including military veterans. According
to the author, this bill will ensure veterans and disabled
veterans get employment opportunities commensurate with their
sacrifices for this state and this country.
3. Opponent Arguments :
None received to date.
4. Prior Legislation :
AB 3066 (Assembly Committee on Veterans Affairs) of 2008:
Vetoed by the Governor
This bill would have expanded the number of specified projects
that qualify for priority funding from the ETP to include
projects that support veterans and members of the California
National Guard, especially those individuals who have become
disabled as a result of military service. In addition, the
bill would have required the ETP to include in its three-year
plan, goals, objectives, and strategies to support target
populations, including veterans. AB 3066 was vetoed by the
Governor, and in his veto message the Governor stated that:
"The historic delay in passing the 2008-2009 State Budget
has forced me to prioritize the bills sent to my desk at
the end of the year's legislative session. Given the
delay, I am only signing bills that are the highest
priority for California. This bill does not meet that
standard and I cannot sign it at this time."
SUPPORT
Hearing Date: July 8, 2009 AB 1567
Consultant: Alma Perez Page 4
Senate Committee on Labor and Industrial Relations
None received to date.
OPPOSITION
None received to date.
* * *
Hearing Date: July 8, 2009 AB 1567
Consultant: Alma Perez Page 5
Senate Committee on Labor and Industrial Relations