BILL ANALYSIS
SB 410
Page 1
SENATE THIRD READING
SB 410 (Ducheny)
As Amended September 4, 2009
Majority vote
SENATE VOTE :23-11
LABOR & EMPLOYMENT 6-1 APPROPRIATIONS 12-5
-----------------------------------------------------------------
|Ayes:|Monning, Bill Berryhill, |Ayes:|De Leon, Ammiano, |
| |Eng, Furutani, Ma, | |Charles Calderon, Coto, |
| |Portantino | |Davis, |
| | | |Fuentes, Hall, John A. |
| | | |Perez, |
| | | |Skinner, Solorio, |
| | | |Torlakson, Hill |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Gaines |Nays:|Conway, Harkey, Miller, |
| | | |Nielsen, |
| | | |Audra Strickland |
| | | | |
-----------------------------------------------------------------
SUMMARY : Seeks to provide greater oversight over the spending
of the federal American Recovery and Reinvestment Act of 2009
(ARRA) funds, as well as to set clear legislative goals and
priorities for the use of those funds relative to workforce
readiness programs. Specifically, this bill :
1)Prescribes eligibility criteria for recipients of financial
assistance in the form of needs related payments and would
require the one-stop career centers to coordinate and deliver
services to persons enrolled in job training programs.
2)Expands training services to include preapprenticeship 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.
SB 410
Page 2
4)Requires local workforce investment boards to develop a policy
on supportive services.
5)Requires funding available through the ARRA to be used for
increasing training services, and would require training
priorities to be consistent with those identified in the ARRA.
6)Revises existing reporting requirements to include information
on funds made available through the ARRA and training
expenditures incurred by organizations funded by the
Governor's 15% discretionary fund from the federal Workforce
Investment Act of 1998 (WIA).
7)Incorporates changes to Section 14230 of the Unemployment
Insurance Code proposed by this bill and AB 3 (V. Manuel
Perez) to ensure there are not chaptering out issues should
these two bills get enacted.
EXISTING FEDERAL LAW :
1)Created WIA which 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.
2)Establishes ARRA which allocates additional WIA funds over
fiscal years (FYs) 2009-2010 and 2010-2011. ARRA also makes
additional funds available nationally through competitive
grants which may be accessed, among other groups, by state
workforce investment boards and local workforce investment
boards.
EXISTING STATE LAW :
1)Establishes CWIB, and requires CWIB to assist the Governor
with promoting the development, oversight, and continuous
development of a well-educated and highly skilled workforce,
SB 410
Page 3
and also assist in the development of the State Workforce
Investment Plan.
2)Declares the intent of the Legislature to deliver
comprehensive workforce services to jobseekers, students, and
employers at those comprehensive one-stop career centers to,
among other things, make outreach, intake, job search and
placement assistance, and other related services available in
one location.
3)Authorizes the Employment Development Department (EDD) to
administer various job training and placement programs and
services for eligible persons, as provided and requires the
EDD to develop a statewide plan and to coordinate all programs
it administers, as specified.
4)Requires EDD to report annually to the Governor, the
Legislature, and the CWIB, no later than November 30,
regarding the training expenditures made by local workforce
investment boards in the prior FYs.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill creates priorities for about $490 million
in federal funds for job training.
COMMENTS : On February 17, 2009, President Obama signed into law
the ARRA, 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
Labor and Employment held a joint informational hearing on the
state of the economy and its affects on working families, as
well as how the stimulus funds would affect California. At that
hearing, the Legislative Analyst's Office (LAO) stated that
there would be an additional $494 million over the 2009-2010 and
2010-2011 fiscal years, on top of the $491 million allocated for
FY 2009-2010. Most of the funds will go to the local workforce
investment boards, $427 million of the WIA funds for FYs
2009-2010 and approximately an additional $420 million over FYs
2009-2010 and 2010-2011.
During the buildup to the passage of the ARRA, the author's
office began discussions with local workforce investment boards
and other workforce development partners on their current fiscal
priorities, how they will handle the influx of ARRA stimulus
funds, and if California law complies with federal law and
SB 410
Page 4
federal Department of Labor regulations. This bill is the fruit
of those discussions.
In brief, the bill requires that job training be the priority
for the ARRA funds going to local workforce investment boards,
expands the definition of training programs to apprenticeship
and pre-apprenticeship programs, allows for the use of training
funds for supportive services to keep individuals enrolled in
the job training programs, and requires additional reporting
requirements to track the use of these funds.
See policy committee analysis for prior legislation.
Analysis Prepared by : Lorie Erickson / L. & E. / (916)
319-2091
FN: 0002932