BILL ANALYSIS �
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SENATE THIRD READING
SB 698 (Lieu)
As Amended May 31, 2011
Majority vote
SENATE VOTE :39-0
LABOR & EMPLOYMENT 7-0 APPROPRIATIONS 17-0
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|Ayes:|Swanson, Morrell, Alejo, |Ayes:|Fuentes, Harkey, |
| |Allen, Furutani, Beth | |Blumenfield, Bradford, |
| |Gaines, Yamada | |Charles Calderon, Campos, |
| | | |Davis, Donnelly, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
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SUMMARY : Requires the establishment of standards and
incentives for "high-performance" local workforce investment
boards. Specifically, this bill :
1)Requires the Governor, through the California Workforce
Investment Board (CWIB), to establish standards for the
certification of "high-performance" local workforce investment
boards.
2)Specifies that the CWIB shall engage in a specified
stakeholder process in determining the standards for
certification as a "high-performance" local workforce
investment board.
3)Specifies that these standards shall be implemented on or
before January 1, 2013, and the first certification of
"high-performance" boards shall occur on or before July 1,
2013.
4)Provides that, in order to meet the standards for
certification, a "high-performance" local workforce investment
board shall meet specified criteria and perform specified
activities.
5)Requires (beginning in the 2013-14 fiscal year) the Governor
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and the Legislature to annually set aside a portion of the 15%
discretionary funds made available pursuant to the federal
Workforce Investment Act (WIA) for the purpose of providing
performance incentives to "high-performance" local workforce
investment boards.
6)Provides that only a local workforce investment board that has
been certified as "high-performance" shall be eligible to
receive these set-aside funds.
7)Provides that a local workforce investment board that has not
been certified as "high-performance" shall not receive any
portion of these set-aside funds or any portion of the state's
15% discretionary WIA funds.
8)Specifies that the requirement to set aside WIA discretionary
funds shall not apply in years when the federal government
significantly reduces the share of WIA discretionary funds
below the federal statutory amount of 15%.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill will result in federal fund reallocation of
approximately $75 million to provide incentive funds to
high-performance local workforce investment boards.
COMMENTS : This bill would require the Governor to establish,
through the CWIB, standards for certification of
"high-performance" local workforce investment boards in
accordance with specified criteria. In addition, this bill
would require a portion of the WIA 15% discretionary funds to be
set aside for "high performance" boards.
According to the author, workers in California are experiencing
a recession like never before that
has left us with a shattered job market and a record setting
unemployment rate. Nonetheless,
proponents argue that employers will soon need a skilled
workforce to replace the retiring baby
boomer generation and meet the demands of new emerging
industries. According to the author
and proponents, now more than ever, it is crucial that every
dollar of federal workforce funds
that our state receives is invested in high quality employment
services that connect workers to
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good paying jobs.
According to proponents, federal law provides governors the
authority to certify local workforce investment boards (LWIBs)
every two years, however, this certification must be granted as
long as LWIBs meet minimum federal requirements for performance
and board composition. Proponents argue that federal
performance measures are largely inadequate for ensuring that
local WIA dollars provide quality service that lead workers to
good jobs. In addition, proponents argue that the performance
of California's local WIBs has been inconsistent throughout the
state and lacks a unified goal.
Proponents believe that this bill will raise the bar statewide
for performance and quality outcomes for California's federally
funded workforce investment system by outlining a high
performance standard that the LWIBs can strive for in order to
be eligible for additional funding. In addition, proponents
argue that it is essential that there be a direct correlation
between the training workers receive and the jobs available.
According to proponents, this bill will create an incentive by
which LWIBs can strive to meet a high performance standard which
meets federal performance criteria, develops stronger local
workforce initiatives, and establishes a business service plan
that together can create a unified goal to provide quality
services that connect workers to good paying jobs.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN: 0002192