BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                              UNFINISHED BUSINESS


          Bill No:  SB 964
          Author:   Alquist (D), et al
          Amended:  6/30/10
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  6-2, 4/20/10
          AYES:  Lowenthal, DeSaulnier, Kehoe, Oropeza, Pavley,  
            Simitian
          NOES:  Huff, Ashburn
          NO VOTE RECORDED:  Harman

           SENATE APPROPRIATIONS COMMITTEE  :  7-2, 5/27/10
          AYES:  Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
          NOES:  Denham, Walters
          NO VOTE RECORDED:  Cox, Wyland

           SENATE FLOOR  :  23-11, 6/1/10
          AYES:  Alquist, Calderon, Cedillo, Corbett, Correa,  
            DeSaulnier, Ducheny, Florez, Hancock, Kehoe, Leno, Liu,  
            Lowenthal, Negrete McLeod, Padilla, Pavley, Price,  
            Romero, Simitian, Steinberg, Wolk, Wright, Yee
          NOES:  Aanestad, Ashburn, Cox, Denham, Dutton, Harman,  
            Hollingsworth, Huff, Runner, Strickland, Wyland
          NO VOTE RECORDED:  Cogdill, Oropeza, Walters, Wiggins,  
            Vacancy, Vacancy

           ASSEMBLY FLOOR  :  53-24, 8/25/10 - See last page for vote


           SUBJECT  :    High-speed rail and workforce development  
          planning

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           SOURCE  :     Author


           DIGEST  :    This bill requires that the High-Speed Rail  
          Authority and the Employment Development Department  
          collaboratively prepare a labor market assessment of the  
          workforce needs associated with the construction,  
          operation, and maintenance of the high-speed train system.

           Assembly Amendments  require the cooperative sharing of  
          workforce assessment information between Employment  
          Development Department (EDD) and the Mineta Transportation  
          Institute at the California State University at San Jose,  
          and require EDD to also consult with other ongoing rail  
          transit assessment efforts related to workforce training.

           ANALYSIS  :    Existing law creates the High-Speed Rail  
          Authority (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.  
          Proposition 1A-Safe, Reliable High-Speed Train Bond Act for  
          the 21st Century authorizes the HSRA to develop a  
          high-speed rail system extending from San Diego to  
          Sacramento with Phase I being between Anaheim-Los Angeles  
          Union Station-Bakersfield-Fresno-San Jose-San Francisco  
          Transbay Terminal. In addition, Proposition 1A provides up  
          to $9 billion in bond funds for the development of the  
          high-speed rail system, but limits the expenditure of bond  
          revenues for the construction of the high-speed rail system  
          to not more than 50 percent of the cost of building the  
          system and not more than ten percent 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. 

          Existing law creates the EDD and authorizes it to offer  
          services and programs related to job placement, Workforce  
          Investment, Labor Market Information, and management of  
          State Disability Insurance. 

           This bill  :

          1. Requires the HSRA to contract with EDD to develop a  

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             labor market assessment of the needed workforce and  
             identify the education and skills needed to construct,  
             operate, and maintain the high-speed train system. 

          2. Requires the assessment to consider the short-term and  
             long-term labor needs for the high-speed rail project,  
             including the need for specific skills in the various  
             regions of the state.

          3. Requires the assessment to include a recommended  
             strategy to ensure workforce training programs are  
             available to facilitate the availability of a skilled  
             in-state work force to participate in the construction  
             of the system.

          4. Requires the cooperative sharing of workforce assessment  
             information between EDD and the Mineta Transportation  
             Institute at the California State University at San  
             Jose, and requires EDD to also consult with other  
             ongoing rail transit assessment efforts related to  
             workforce training.

          5. Establishes an advisory committee comprised of the  
             following:

             A.    HSRA 

             B.    University of California

             C.    California State University system

             D.    California Community College Chancellor's office

             E.    California Workforce Investment Board

             F.    State Department of Education. 

             G.    Labor organizations with expertise in operating  
                apprenticeship programs for the skills necessary to  
                build, operate, and maintain a high-speed rail  
                system.

             H.    State Employment Training Panel


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             I.    Other organizations deemed appropriate

          6. Authorizes the advisory committee to advise the HSRA and  
             EDD on the availability and potential availability of  
             skilled labor necessary to meet the needs of the project  
             by region, on the availability of workforce training  
             programs, and the available funding for such programs.

          7. Requires submission of the assessment to the fiscal  
             committees and the policy committees of the Legislature  
             with jurisdiction over transportation and labor matters  
             by January 1, 2012.

          8. Appropriates $500,000 of bond proceeds from to the HSRA  
             for purposes of this act from funds set aside for  
             environmental studies, planning and preliminary  
             engineering activities.

           Comments
           
          Because the high-speed rail project is a $42 billion,  
          one-of-a-kind project, that is forecasted to create  
          approximately 600,000 jobs requiring a broad array of  
          construction, maintenance, operating, and management  
          skills, the author believes that it is important for the  
          state to create an inventory of skills required to  
          successfully construct and operate a high-speed train  
          system.  This workforce information will allow a  
          determination to be made as to the exact skills sets that a  
          training program should focused on. 

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee analysis:

                          Fiscal Impact (in thousands)

           Major Provisions                2010-11     2011-12     
           2012-13   Fund

           Appropriation            $500                     Bond*

          Training programs                                       

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          potential cost pressures to fund training               
          General/
                              programs to the extent that  
          deficiencies        Special
                              exit

          * High-Speed Passenger Train Bond Fund

           SUPPORT  :   (Verified  8/25/10)

          California Labor Federation
          California State Council of Laborers
          California Teamsters Public Affairs Council
          Professional Engineers in California Government
          Santa Clara Valley Transportation Authority
          State Building and Construction Trades Council

           OPPOSITION  :    (Verified  8/25/10)

          Department of Finance
          Western Electoral Contractor Association


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Arambula, Bass, Beall, Block,  
            Blumenfield, Bradford, Brownley, Buchanan, Caballero,  
            Charles Calderon, Carter, Chesbro, Coto, Davis, De La  
            Torre, De Leon, Eng, Evans, Feuer, Fong, Fuentes,  
            Furutani, Galgiani, Gatto, Hall, Harkey, Hayashi,  
            Hernandez, Hill, Huber, Huffman, Jones, Lieu, Bonnie  
            Lowenthal, Ma, Mendoza, Monning, Nava, V. Manuel Perez,  
            Portantino, Ruskin, Salas, Saldana, Skinner, Solorio,  
            Swanson, Torlakson, Torres, Torrico, Yamada, John A.  
            Perez
          NOES:  Anderson, Bill Berryhill, Tom Berryhill, Conway,  
            DeVore, Fletcher, Fuller, Gaines, Garrick, Gilmore,  
            Hagman, Jeffries, Knight, Logue, Miller, Nestande,  
            Niello, Nielsen, Norby, Silva, Smyth, Audra Strickland,  
            Tran, Villines
          NO VOTE RECORDED:  Cook, Vacancy, Vacancy


          JJA:do  8/26/10   Senate Floor Analyses 


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                         SUPPORT/OPPOSITION:  SEE ABOVE

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