BILL ANALYSIS
SENATE COMMITTEE ON EDUCATION
Gloria Romero, Chair
2009-2010 Regular Session
BILL NO: SB 964
AUTHOR: Alquist
AMENDED: April 15, 2010
FISCAL COMM: Yes HEARING DATE: April 21, 2010
URGENCY: No CONSULTANT:Beth Graybill
SUBJECT : Workforce Development program: High-speed rail.
SUMMARY
This bill requires the High-Speed Rail Authority (HSRA) and
the Employment Development Department (EDD) to
collaboratively develop a labor market assessment of the
workforce needs associated with the construction, operation,
and maintenance of the high-speed train system.
BACKGROUND
Existing law, the California High-Speed Rail Act, creates the
HSRA with a nine-member governing board, including five
members appointed by the governor, two members appointed by
the Senate Rules Committee, and two members appointed by the
Speaker of the Assembly. (Public Utilities Code 185000 et.
seq.)
Existing law, Proposition 1A, the Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century, approved by
the voters at the November 2008 general election, provides $9
billion in funding for high-speed rail redevelopment and $950
million for improvements to urban rail transit systems,
intercity rail, and commuter rail. Proposition 1A limits the
expenditure of bond revenues for the construction of the
high-speed rail system to not more than 50% of the cost of
building the system and not more than 10% of bond proceeds to
environmental studies, planning, and preliminary engineering.
It also requires that up to two percent of the bond proceeds
shall be for the administration of the HSRA. (Streets and
Highways Code 2704)
Existing law establishes the Employment Development
Department (EDD) within the Labor and Workforce Development
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Agency, to offer services and programs related to job
placement, workforce investment, labor market information and
management of State Disability Insurance.
(Unemployment and Insurance Code 301)
ANALYSIS
This bill :
1) Requires the HSRA to contract with the EDD to
collaboratively develop a labor market assessment of the
workforce and identify the education and skills needed
to construct, operate, and maintain the high-speed train
system.
2) Requires the labor market assessment to:
a) Include a recommended strategy to ensure
workforce training programs are available to
facilitate the availability of skilled, in-state
workforce to participate, to the maximum extent
feasible, in the construction of the high-speed
train system.
b) Consider the short-term and long-term labor
needs for the high-speed rail project, including
the need for specific skills in various regions of
the state.
3) Requires the EDD to establish an advisory committee to
advice on the availability and potential availability of
skilled labor, by region, necessary to construct,
operate, and maintain the high-speed train system.
Requires the advisory committee to advice on workforce
training programs and funding options available, or
proposed to be available. Specifies the advisory
committee shall be comprised of the following:
HSRA.
University of California.
California State University.
California Workforce Investment Board.
California Department of Education.
Labor organizations with expertise in
operating apprenticeship programs relevant to
building, operating and maintaining the high-speed
train system.
State Employment Training Panel.
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Other organizations deemed appropriate.
4) Requires submission of the labor market assessment to
fiscal committees and the policy committees of the
Legislature with jurisdiction over transportation and
labor matters by January 1, 2012.
5) Appropriates $500,000 of bond proceeds to the HSRA for
purposes of this act.
STAFF COMMENTS
1) Need for the bill : According to the HSRA, the
high-speed train system project will require California
to expand and draw upon the existing skilled workforce.
The HSRA anticipates this large-scale infrastructure
project will create nearly 160,000 construction-related
jobs to plan, design, and build the system. By 2035, an
additional 450,000 permanent jobs are expected to be
created as a result of the economic growth the train
system will bring to California. The author believes
that the creation of an inventory of the skills required
to construct, maintain, operate, and manage the system
will help policymakers determine the skill sets that
should be included in future training programs.
2) Technical amendment . This bill is scheduled to be heard
in the Senate Transportation and Housing Committee on
Tuesday, April 20, 2010. As noted in that Committee's
analysis, Proposition 1A specifies that the HSRA may use
up to 10% of the bond proceeds for planning,
environmental analyses, and preliminary engineering and
2% of the proceeds for the cost of administration. It
is anticipated that the Senate Transportation and
Housing Committee will amend the bill to clarify which
set aside should fund the appropriation. Due to fiscal
policy deadlines however, the proposed amendment needs
to be adopted in the Senate Education Committee.
Staff recommends amending the bill to specify the
appropriation shall be made from the set aside for
planning, environmental analyses, and preliminary
engineering.
3) Prior and related legislation .
SB 372 (Steinberg, 2007) would have required
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the Superintendent of Public Instruction to
prepare, in conjunction with the HSRA, an inventory
of future educational and vocational courses
necessary for the high-speed train system. This
bill would have also required the development of
courses of study to meet the need for skills
associated with building and operating the system.
This bill passed this Committee on a 6-3 vote and
was subsequently held in the Senate Appropriations
Committee.
SUPPORT
California Labor Federation
OPPOSITION
None received.