BILL ANALYSIS
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|Hearing Date:April 27, 2009 |Bill No:SB |
| |599 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Gloria Negrete McLeod, Chair
Bill No: SB 599Author:Negrete McLeod
As Amended:April 20, 2009Fiscal: Yes
SUBJECT: Workforce Development.
SUMMARY: Requires the successor agency to the former Bureau of
Private Postsecondary and Vocational Education (BPPVE), when
established, to provide school performance data it receives from
schools under its jurisdiction to the California Postsecondary
Education Commission; authorizes local workforce investment
boards (WIBs) to grant contracts to national, regional or
industry accredited private postsecondary educational
institutions for job training services and education programs
and authorizes the Dental Board of California's (DBC) to expend
the remaining funds currently in the Dentally Underserved
Account until July 1, 2011.
Existing law:
1)Established the Private Postsecondary and Vocational Education
Reform Act of 1989, which became inoperative on July 1, 2007,
which expressed legislative intent to ensure minimum standards
of instructional quality and institutional stability and
required the Bureau of Private Postsecondary and Vocational
Education (BPPVE) to, among other things, review and
investigate all institutions, programs and courses of
instructions approved under the Act.
2)Establishes the California Postsecondary Education Commission
(CPEC) to integrate policy and create fiscal and programmatic
analyses about California's postsecondary education system.
Requires CPEC to identify and recommend policies to meet the
state's educational, research and public service needs.
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3)Federal law enacts the American Recovery and Reinvestment Act
of 2009 (ARRA) which will provide California with approximate
$488 million for WIA and other job training programs.
4)Federal law enacts the Workforce Investment Act (WIA) which
provides funding for workforce investment activities to states
for specified activities like job training, employment
investment, work incentive programs and employment training
outreach programs.
5)Federal law, under WIA, specifies that 15% of a state's
federally allocated funds can be retained by the state to
develop and coordinate workforce development activities,
establishes local workforce development boards (WIBs) to
develop, implement and coordinate workforce development
programs and specifies that the remaining 85% of federal funds
be allocated to the local workforce investment boards for the
purpose of carrying out their workforce development
activities.
6)States it is the duty of local workforce board to, among other
things, coordinate workforce development activities in the
local area and take specified actions to promote economic
development and job training programs in the area.
7)Establishes the Dental Board of California (DBC) within the
Department of Consumer Affairs (DCA) for the purpose of
licensing and regulating the practice of dentistry and
requires these activities to be funded from fees imposed upon
licensees.
8)Creates the Dental Corps Loan Repayment program, to be
administered by the DBC, to provide up to$105,000 in loan
repayments for dental practitioners who serve in underserved
areas and establishes the Dentally Underserved Account in the
State Dentistry Fund and transfer $3 million from the
Dentistry Fund to the Dental Account over three years,
starting July 1, 2003.
9)Specifies that after a Dental Corps participant has completed
one year of service, the Dental Board shall provide up to
$25,000 for loan repayment from the Dental Account. A
participant who serves a second consecutive year shall receive
up to an additional $35,000 and a third consecutive year would
earn an additional $45,000 in loan repayment. Loan repayments
from the Dental Account may not exceed $105,000.
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This bill:
1)Requires the successor agency to the former Bureau of Private
Postsecondary and Vocational Education (BPPVE) to transmit any
available data regarding school performance it receives from
schools under its jurisdiction to the California Postsecondary
Education Commission. It specifies that this provision will
only become effective if AB 48, which creates a successor to
the BPPVE, is enacted and becomes effective on or before
January 1, 2010
2)Authorizes local workforce investment boards (WIBs) to grant
contracts to national, regional or industry accredited private
postsecondary educational institutions for job training
services and education programs.
3)Provides the DBC statutory authority to expend the remaining
funds currently in the Dentally Underserved Account until July
1, 2011.
FISCAL EFFECT: Unknown. This measure is keyed "fiscal" by
Legislative Counsel.
COMMENTS:
1.Purpose. According to the Author, the purpose of this
legislation is to enact findings from an information hearing
held by the Committee earlier this year on workforce
development. When the BPPVE was in existence, there was no
requirement for the Bureau to transmit information regarding
the performance of the schools operation under its
jurisdiction to CPEC. As a result, CPEC did not have access
to information needed to evaluate the efficacy of these
schools in educating students and assisting in the development
of California's workforce. By requiring to the successor to
the BPPVE to provide this information to CPEC, this bill
provides CPEC the data necessary to evaluate the performance
of private postsecondary schools for the purpose of policy
analysis and recommendation.
Additionally, existing law does not expressly authorize WIA
funds to be used for educational and job training programs at
private postsecondary schools. Under the ARRA, California is
expected to receive $488 million from the federal government
for job training services, 85% of which will be funneled
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directly to the local workforce investment boards. Given that
private schools often have partnerships with local industries
and can adapt their curriculum to the changing needs of the
economy faster than public schools, this bill seeks to give
the local WIBs the authority to use those funds to contract
with any national, regional, or industry accredited private
postsecondary institution they believe will help them meet
their job training goals.
2.Background. On March 23rd, the Committee on Business,
Professions and Economic Development held an informational
hearing entitled "The Role of Private Education Institutions
in Preparing California's Diverse Workforce: Meeting the
Challenges of our Workforce and Job Training Needs." The
hearing examined the ability of private postsecondary
institutions to fill the career preparation needs of
California's workforce and evaluate policy options that allow
them to expand their workforce development programs with the
requisite amount of oversight required to protect students.
The hearing's chief findings were as follows:
California will receive $488 million federal ARRA
funds to supplement, not supplant the state's workforce
development activities.
Key industries are facing shortages in hiring
workers with the minimum skills needed for entry into
the field.
Private postsecondary schools face difficulty in
expanding their educational and vocational programs
because of the lack of state regulation and would like
to see a clear, streamlined regulatory framework
re-established.
CPEC does not have access to private postsecondary
intuitions' performance data and are, therefore, unable
at this time to evaluate the efficacy and role of those
institutions in preparing skilled workers.
In an attempt to ensure California's private postsecondary
schools are given an opportunity to assist in the state's
workforce development activities, this bill gives the local
WIBs explicit authority to utilize the job training services
of accredited schools. Additionally, it requires, when state
oversight of those institutions is re-established in DCA,
data on school performance to be shared with CPEC for further
review and in-depth policy analysis.
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1.Structure and Background of Workforce Investment Boards and
Local Workforce Investment Areas. The Workforce Investment
Act (WIA) is administered by 49 Workforce Investment Boards
(WIBs) in California. WIBs are administered by a variety of
agencies, including county and city governments, non-profits
and joint power authorities. Within county and city
government, WIBs are placed in a variety of organizational
structures. Some WIBs are housed in welfare agencies,
economic development departments and still others are their
own agencies or separate non-profit organizations.
The designated grant recipient and administrator for the WIA
funding is decided by a local partnership between the chief
local elected official (CLEO) and the WIB, whose members the
CLEO appoints. They then select One Stop Career Center
operators and training providers to serve the local community.
WIB membership is comprised of private sector representatives
from key local industries, organized labor, education,
economic development, community based organizations and other
community stakeholders. The majority of members are from the
private sector and the chair is always a business
representative. WIA emphasizes that the local WIB and chief
local elected official have discretion over the strategy and
decision making for their WIA funding so they can best respond
to the needs of business and residents of their community.
WIBs have oversight of local workforce investment areas. The
local workforce areas roughly correspond to labor market
areas, but also operate from historical precedent. The
majority of workforce investment areas are single counties.
The rest are composed of large cities, multiple counties that
form a consortium under a joint powers agreement or consortia
of multiple cities. There are seven WIBs in the County of Los
Angeles, including LA County, LA City and five consortia of
cities. In Northern California, there are two WIBs that have
jurisdiction over 15 counties. In all parts of the State,
WIBs work together as formal or informal regional
collaboratives, ensuring that they are addressing regional
workforce issues that may cross geo-political boundaries.
As innovation is key to California's economy, the state
engages in workforce development activities to ensure there
are workers who have the skills to innovate, change and avail
themselves of ongoing training opportunities. No one
institution alone is tasked with this responsibility. In
fact, the job of providing education, training, skills
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upgrades and support for California's workers is spread over a
vast array of agencies, organizations and institutions, both
public and private. Many California WIBs have become a
significant catalyst for community conversations and dialogue
among these players, adding value in aligning resources and
policy to better respond to changing workforce needs, and to
the skills crisis that exists in almost every community.
Every (WIB) has its own charter, organization and unique
context, but they all share a set of central roles. Each WIB
provides oversight for the WIA program and acts as a catalyst
to provide seamless services among various workforce programs
and provides community leadership around workforce issues.
There are five ways that WIBs can carry out their role and
each WIB incorporates most of these roles in varying degrees
in all aspects of their work.
Convener: Bringing together business, labor,
education and economic development to focus on community
workforce issues.
Workforce Analyst: Developing, disseminating and
understanding current labor market and economic
information and trends.
Broker: Bringing together systems to solve common
problems, or broker new relationships with businesses and
workers.
Community Voice: Advocating for the importance of
workforce policy, providing perspective about the need
for skilled workers.
Capacity Builder: Enhancing the region's ability to
meet the workforce needs of local employers.
In all of these roles, California WIBs are working towards
building a competitive workforce advantage in their
communities and regions.
1.Role of the WIBs in the Administration of ARRA. In addition
to their community leadership role, WIBs will provide
stewardship of American Recovery and Reinvestment Act (ARRA)
funds coming to California for workforce development. WIA
funding in ARRA allocated to California is $488 million. WIBs
have oversight of WIA funds and will ensure that they are
quickly and effectively put to use, while at the same time
ensuring accountability and transparency. They will also
continue in their role of resource alignment by building
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relationships and cross-agency collaboration. WIBs will be
particularly focused on other systems receiving stimulus
funding, in order to maximize the outcomes of the stimulus by
leveraging resources. There are millions of dollars targeted
for job training in transportation, energy, weatherization,
health care and other government programs and WIBs are
currently identifying where these funds will be allocated in
their communities and working to leverage and coordinate these
with WIA funding.
2.The California Postsecondary Education Commission (CPEC). The
CPEC was established in 1974 as the state's planning and
coordinating body for higher education and consists of the
following 16 members: 9 members of the general public, 1
member from each of California's major education systems (the
California Community Colleges, California State University,
University of California, independent colleges and
universities and the State Board of Education) and
2 student representatives.
One of CPEC's primary statutory purposes is to identify and
recommend policies to meet the state's educational, research
and public service needs. Its external affairs staff
interacts on a daily basis with legislators and their staff,
administrative offices, governmental officials and media
representatives. Its research staff prepares analyses, briefs
and numerous CPEC publications. CPEC also engages in various
continuing activities such as reviewing proposed academic
programs, new campuses or centers, conducting data analysis of
student flow and responding to requests of the Legislature and
Governor.
To date CPEC has completed very little examination of the
state's private postsecondary industry. While CPEC's website
concedes that, "The private sector is a vital part of meeting
the postsecondary educational needs of the State and should be
a major component of the State's efforts to provide high
quality education and address future enrollment needs", the
Commission lacks an active role in the review and development
of this sector.
3.California's Unemployment Rate. California currently has an
11.2 percent unemployment rate. This is the highest rate
since April 1983 providing evidence that California's labor
market has clearly deteriorated. According to the household
employment series, civilian employment fell 46,400 in
February, while unemployment rose 79,000. Because of the rise
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in unemployment, local WIBs report significant increases in
their client base. This measure seeks to provide WIB
authority to contract with private postsecondary institutions
so they can deliver all of the job training services they are
requested by their clients during the current economic
climate.
4.Dental Corps Loan Repayment Program. The Dental Corp program
was created in 2002 (AB 982, Chapter 1131, Statutes of 2002)
to increase the number of primary care physicians and dentists
who practice in historically underserved areas by providing
grants to help pay for the high cost of attending medical or
dental school. The bill created three programs, the Dental
Corps Program, the Physician Corps Program and the Student
Loan Repayment Program. The Dental and Physician Corps
Programs are aimed primarily at existing licensees and were
funded by this bill.
A variety of studies and reports in recent years, most notably
the Oral Health Needs Assessment sponsored jointly by the
Dental Health Foundation and the Department of Health
Services, have documented the significant unmet need for
comprehensive dental care services in California, especially
in underserved areas. The California Dental Association (CDA)
notes that efforts to encourage dental school graduates to
practice in these areas are made difficult by the significant
student loan debt which most new dentists face when they
graduate and begin practicing often exceeding $150,000.
The DBC selects participants to practice in underserved areas,
in practice settings with a majority of underserved patients,
and gives priority consideration to applicants who are best
suited to the cultural and linguistic needs of those
populations and meet other related criteria. After each
consecutive year of service completed, participants will
receive money for loan repayment ($25,000 for the 1st year,
$35,000 for the 2nd year, $45,000 for the 3rd year) for up to
three years. The law states each participant may receive no
more than $105,000 over three years.
The DBC has informed the Committee that the there is over $1.5
million in the Dentally Underserved Account, but their
statutory authority to expend those funds has lapsed. This
bill gives the DBC authority to distribute the funds remaining
in that account until July 1, 2011.
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5.Suggested Amendments. The Dental Board of California (DBC) is
requesting the statutory authority to expend the funds in the
Dentally Underserved Account be extended to July 1, 2012 and
that language be inserted requiring the DBC to follow
established regulations regarding the Dental Corps Repayment
Program.
Amend BPC 1973(f) on page 5, line 7 to read as follows:
On or after July 1, 2010, DBC shall extend the program and
distribute the money remaining in the account until July 1,
2011 2012 . Regulations that were adopted by the DBC for
purposes of the Dental Corps Repayment Program shall apply.
6.Related Legislation. SB 489 (Liu) removes the oversight and
regulation of private postsecondary schools from the
Department of Consumer Affairs and places the responsibility
to the California Postsecondary Education Commission (CPEC).
The measure was held in this Committee at the request of the
Author.
AB 48 (Portantino) renames the BPPVE as the Bureau for Private
Postsecondary Education (Bureau) within the Department of
Consumer Affairs (DCA) and provides for Bureau oversight and
regulation of private postsecondary institutions operating in
California. The measure was 10-0 in Assembly Committee on
Business and Professions on April 21st and is now pending in
the Assembly Appropriations Committee.
AB 1559 (Assembly Committee on Labor and Employment) would
require local WIBs to facilitate the implementation of summer
youth training programs through partnerships and effective
collaboration. The bill is set for hearing in the Assembly
Committee on Labor and Employment on April 22nd.
SUPPORT AND OPPOSITION:
Support:
None on file as of April 21, 2009
Opposition:
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None on file as of April 21, 2009
Consultant:Sieglinde Johnson