BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 410
                                                                  Page  1

          Date of Hearing:   August 19, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    SB 410 (Ducheny) - As Amended:  May 21, 2009 

          Policy Committee:                             Labor and  
          Employment   Vote:                            6-1

          Urgency:     No                   State Mandated Local  
          Program:YesReimbursable:          Yes

           SUMMARY  

          This bill provides additional oversight of American Recovery and  
          Reinvestment Act (ARRA) funds, and sets legislative goals and  
          priorities for the use of those funds relative to workforce  
          readiness programs.  Specifically, the bill:   

          1)Requires the one-stop career centers to coordinate and deliver  
            services to persons enrolled in job training programs.

          2)Expands training services to include pre-apprenticeship and  
            registered apprenticeship training, with entrance into a  
            registered apprenticeship program to be considered placement  
            into a job.

          3)Requires the California Workforce Investment Board (CWIB) to  
            develop policies, funding recommendations, and strategies that  
            will maximize funding across all workforce programs for  
            developing workforce skills.

          4)Requires local workforce investment boards to develop a policy  
            on supportive services.

          5)Requires funding available through ARRA to be used for  
            increasing training services, and requires training priorities  
            to be consistent with those identified in the Act.

          6)Revises existing reporting requirements to include information  
            on funds made available through ARRA and training expenditures  
            incurred by organizations funded by the Governor's 15 %  
            discretionary fund from the federal Workforce Investment Act  
            (WIA).








                                                                  SB 410
                                                                  Page  2


           FISCAL EFFECT
           
          1)Creates priorities for about $490 million in federal funds job  
            training funds.

          2)Unknown, potentially major cost to one-stop career centers  
            (federal funds) to meet expanded training and services  
            required by the bill. 
           
          COMMENTS

          1)Background  . The federal Workforce Investment Act (WIA) was  
            created in 1998. It established an ongoing program to provide  
            funding for, and to give direction and support to, state  
            workforce development activities.  WIA creates incentives for  
            the formation of integrated systems of state workforce  
            development boards, appointed by individual state governors,  
            and local workforce investment boards run by local service  
            providers and officials. WIA requires that 85 % of the federal  
            funds supplied for the Act go to the local workforce  
            investment boards, with the remainder allocated by the  
            governor for state discretionary purposes.

            ARRA was signed by the President on February 17, 2009.  ARRA  
            sought to use federal stimulus dollars to combat the current  
            economic recession.  ARRA allocates additional WIA funds  
            during 2009-10 2010-11, and makes other funds available  
            nationally through competitive grants which may be accessed,  
            among other groups, by state workforce investment boards and  
            local workforce investment boards.

           2)Rationale  . The measure is intended to provide oversight for  
            ARRA funds and ensure that job training is a priority for  
            local workforce investment boards receiving the funds. The  
            author's office indicates that this bill is the product of  
            discussions with local workforce investment boards and other  
            workforce development partners on their priorities and how to  
            handle the influx of ARRA stimulus funds. 

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081