BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2349
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2349 (Fong)
          As Introduced  February 19, 2010
          Majority vote 

           LABOR AND EMPLOYMENT      6-0   APPROPRIATIONS      16-1        
           
           ----------------------------------------------------------------- 
          |Ayes:|Swanson, Bill Berryhill,  |Ayes:|Fuentes, Conway, Ammiano, |
          |     |Furutani, Gaines,         |     |Bradford, Charles         |
          |     |Monning, Yamada           |     |Calderon, Coto, Davis,    |
          |     |                          |     |Nava, Hall, Miller,       |
          |     |                          |     |Nielsen, Norby, Skinner,  |
          |     |                          |     |Solorio, Torlakson,       |
          |     |                          |     |Torrico                   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Harkey                    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Requires the California Workforce Investment Board  
          (CWIB) to collaborate with the local workforce investment boards  
          to establish the California Youth at Work Program (Program) to  
          provide summer job training and work experience opportunities  
          for youth, as specified.  Specifically,  this bill  :  

          1)Specifies the Program shall be established with the following  
            requirements, among other things:

             a)   The Program must focus primarily on providing summer job  
               training and work experience opportunities for youth in the  
               state, and 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;

             b)   The Program must include a work experience and academic  
               enrichment components;

             c)   Eligible youth who participate in the California Youth  
               at Work Program shall be between 14 years of age and 24  
               years of age;

             d)   Low-income youth and certain youth populations facing  
               barriers to employment, as specified, shall be deemed  








                                                                  AB 2349
                                                                  Page  2


               automatically eligible for the Program;

             e)   The Program shall, to the extent feasible and  
               appropriate, incorporate work-based learning strategies,  
               work experience and other activities that involve exposing  
               youth to industrial job opportunities that are key to the  
               economic region, as specified;

             f)   Wages or stipends, or both, may be provided to youth in  
               a classroom-based component of a summer employment  
               opportunity;

             g)   The Program shall incorporate career pathways or career  
               ladders as part of the summer youth program and should be  
               coordinated with existing employment training programs and  
               economic development programs, as specified;

             h)   The CWIB in consultation with the local workforce  
               investment boards shall request, if required, any necessary  
               waivers from the United States Department of Labor, to  
               ensure effective and efficient implementation of the  
               Program set forth in this bill; and,

             i)   The Program established by this bill shall only be  
               implemented if the Director of Finance determines that  
               there are sufficient federal or state funds made available  
               to the state to expend on for the Program.

          1)Specifies that local workforce investment boards are to award  
            grants or contracts to eligible providers of youth activities,  
            consistent with federal law or with other funding sources and  
            to identify eligible providers of training in a manner  
            consistent with federal law.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, no new costs to the state although the bill may have  
          some impact on the distribution of federal funds earmarked for  
          job training programs in the future.

           COMMENTS  :  In February 2009, President Obama signed into law the  
          American Recovery and Reinvestment Act of 2009 (ARRA) [Pub.L.  
          111-5], which sought to use federal stimulus dollars to combat  
          the current economic recession.  In March 2009, the Senate Labor  
          and Industrial Relations Committee and the Assembly Committee on  








                                                                  AB 2349
                                                                  Page  3


          Labor and Employment held an informational hearing on the state  
          of the economy, as well as how the stimulus funds would affect  
          California.  At that hearing, the Legislative Analyst's Office  
          (LAO) stated that California would receive an additional $494  
          million for the 2009-10 and 2010-11 fiscal years, on top of the  
          $491 million allocated for fiscal year 2009-10 in the Workforce  
          Investment Act of 1998 (WIA) funds.  Of the $494 million that we  
          will receive through the ARRA, $188 million has been allocated  
          for youth programs.

          After the passage of the ARRA, the federal Department of Labor  
          released a Training and Employment Guidance Letter (TEGL) that  
          provided specific policy guidance and instructions for how to  
          expend ARRA funds.  One area of focus in the TEGL was on youth  
          job programs, and how those program funds should be expended,  
          what programs are allowable, and what definitions should be used  
          when setting the parameters of youth programs.  Specifically,  
          the TEGL notes the following when discussing youth programming:

               While the Act does not limit the use of the Recovery Act  
               funds to summer employment, the Congressional explanatory  
               statement for the Act states that "the conferees are  
               particularly interested in these funds being used to create  
               summer employment opportunities for youth." ETA [Employment  
               Training Administration] 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.

          According to the author, in the summer of 2009, nearly 50,000  
          youth in California were employed through the Program partly due  
          to the temporary ARRA funding.  The Program provided thousands  
          of California youth throughout our state good jobs with skill  
          building and work readiness training. With the increase from  
          ARRA being a limited one-time occurrence along with the  
          significant decreases in WIA funding since 2001, all but a few  
          WIA youth programs still remain.  

          Once the ARRA funds are no longer available, the author hopes  
          that with the enactment of this bill the Program will continue  
          to be an effective and beneficial resource for disadvantaged  
          youth that will afford them an opportunity to gain vital work  
          experience and important learning based strategies, within the  








                                                                  AB 2349
                                                                  Page  4


          guidelines of the WIA, which benefit the economy by helping  
          California's youth gain the skills necessary to become and  
          remain competitive in the workforce.

          Please review the Assembly Committee on Labor and Employment's  
          policy committee analysis for federal and state existing law and  
          for prior legislation.
           

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


                                                                FN: 0003975