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. 

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          Hearing Date:  July 8, 2009                              AB 1567  
          Consultant: Alma Perez                                   Page 5

          Senate Committee on Labor and Industrial Relations