BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1224
                                                                  Page  1

          Date of Hearing:   April 26, 2011

                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
                                 Paul J. Cook, Chair
              AB 1224 (Committee on Veterans Affairs) - As Introduced:  
                                  February 18, 2011
           
          SUBJECT  :   Employment training panel: 3-year plan: training 
          programs: veterans: National Guard members.

           SUMMARY  :   Expands the Employment Training Panel (ETP) 3-year 
          plan to include projects that support veterans and members of 
          the California National Guard. Specifically,  this bill  : 

             1    Requires the ETP to include in its 3 year plan, a 
               description of the goals, objectives, and strategies to 
               support target populations, including military veterans and 
               members of the National Guard. 

           EXISTING LAW:  

          1)Provides for the establishment of employment training programs 
            and specifies which individuals qualify as "eligible 
            participants" of the training programs.

          2)Establishes the Employment Training Panel (ETP) in the 
            Employment Development and requires the Governor to appoint 
            the executive director and two assistant directors of ETP 
            specifying that at least one assistant director have 
            experience serving the needs of small business.

          3)Provides that ETP is governed by eight panel members.  Seven 
            are appointed by the Governor and the leadership of the 
            Legislature and have backgrounds in business management and 
            employee relations, as specified.  The Secretary of Business, 
            Transportation and Housing, or his/her designee, shall serve 
            as an ex officio, voting member.

          4)Specifies the duties of ETP to include entering into contracts 
            for training in job-related vocational skills, as specified 
            and permits the ETP, subject to certain requirements, to 
            delegate its authority to approve contracts for new hire 
            training to any entity, as specified, for purposes of serving 
            the needs of small businesses.









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          5)Requires the ETP, among other things, to establish a 3-year 
            plan, as specified, that must be updated annually to establish 
            minimum standards for the consideration of proposals, 
            including the identification of employers, and to develop a 
            process by which local workforce investment boards may apply 
            for marketing resources for the purpose of identifying local 
            employers that have training needs reflecting the priorities 
            of the panel.  Authorizes the ETP to delegate its authority to 
            approve contracts for training to local workforce investment 
            boards, as provided.

          6)Requires the ETP to allocate its annual funds for the training 
            programs designed for individuals who are currently working 
            and receiving specified benefits, as provided.

          7)Authorizes the ETP to utilize funds in the Employment Training 
            Fund (ETF) for, among other expenditures, the purpose of 
            funding up to five licensed nurse training programs to train 
            individuals who are currently working as nurse assistants or 
            caregivers in a health facility, as defined.


           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   The ETP is one of several departments within the 
          Labor and Workforce Development Agency that assists employers in 
          strengthening their competitive edge by providing funds to 
          off-set the costs of job skills training necessary to maintain 
          high-performance workplaces. 

          In recent years, the ETP has faced significant reductions in its 
          funding.  In fiscal year (FY) 2007-08, ETP's appropriation was 
          almost 30 percent below its historical funding level.  The ETP 
          has also experienced a 27 percent reduction in staff in the past 
          few years.  Thus, the panel could maximize the effects of 
          current resources by identifying target populations, including 
          veterans and National Guard members. 

          The Plan outlines ETP's strategies for accomplishing its mission 
          in the next fiscal year based on an assessment of various 
          factors including the state of the economy, priority industries, 
          ETP's economic development role, employer demand for training, 
          key workforce trends and training needs, and ETP's budget and 
          available resources.  The Plan must, "?identif�y]?specific 
          industries, production and quality control techniques, and 








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          regions of the state where employment training funds would most 
          benefit the state's economy and plans to encourage training in 
          these areas,?" (UIC section 10205 (b) (2)) 

          Veterans are a potential target population; they have less than 
          national average employment retention rates. In 2010, the 
          employment retention rate in California for non-disabled 
          veterans was 72 percent, which is four percent below the 
          national average. Employment retention among disabled veterans 
          was 70 percent, three percent below the national average. The 
          employment retention rate reflects the percentage of individuals 
          still employed two quarters after receiving employment services 
          from a state workforce agency.

           Related Legislation:
           
          AB 1567 (Committee on Veterans Affairs, 2009) was vetoed by 
          Governor Schwarzennegger.

          The veto message states that ETP already supports employment 
          training for
          military veterans and its annual strategic planning process 
          already puts a strong focus on developing training projects and 
          partnerships in the veteran community.  Governor Schwarzennegger 
          stated that this bill would reduce ETP's flexibility to meet the 
          changing needs of California's employers and workers.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Legion-Department of California, AMVETS-Department of 
          California, California State Commanders Veterans Council

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Lizette Mata / V. A. / (916) 319-3550