BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 734|
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UNFINISHED BUSINESS
Bill No: SB 734
Author: DeSaulnier (D)
Amended: 9/2/11
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 6-3, 5/3/11
AYES: DeSaulnier, Kehoe, Lowenthal, Pavley, Rubio,
Simitian
NOES: Gaines, Harman, Huff
SENATE APPROPRIATIONS COMMITTEE : 6-2, 5/26/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Runner
NO VOTE RECORDED: Emmerson
SENATE FLOOR : 25-12, 6/2/11
AYES: Alquist, Calderon, Corbett, Correa, De Le�n,
DeSaulnier, Evans, Hancock, Hernandez, Kehoe, Leno, Lieu,
Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price,
Rubio, Simitian, Steinberg, Vargas, Wolk, Wright, Yee
NOES: Anderson, Berryhill, Blakeslee, Dutton, Fuller,
Gaines, Harman, Huff, La Malfa, Strickland, Walters,
Wyland
NO VOTE RECORDED: Cannella, Emmerson, Runner
ASSEMBLY FLOOR : Not available
SUBJECT : High-Speed Rail Authority: small business
program:
bidding preferences
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SOURCE : California Labor Federation
California Manufacturers and Technology
Association
Chicana Service Action Center
Jewish Vocational Service, Los Angeles
State Building and Construction Trades Council
DIGEST : This bill imposes requirements related to the
expenditure of Workforce Investment Act funds on job
training programs.
Assembly Amendments (1) delete the language that mandates
that the High-Speed Rail Authority develop an outreach and
retention plan for small businesses, microbusinesses, and
disable veteran enterprises and insert language relating to
state and local workforce investment boards funding; (2)
remove Senator Price as the author and insert Senator
DeSaulnier as the author; and (3) delete co-authors.
ANALYSIS :The federal Workforce Investment Act of 1998
provides for workforce investment activities, including
activities in which states may participate. Existing law
establishes the California Workforce Investment Board
(CWIB), and specifies that the CWIB is responsible for
assisting the Governor in the development, oversight, and
continuous improvement of California's workforce investment
system. Existing law contains various programs for job
training and employment investment, including work
incentive programs, as specified, and establishes local
workforce investment boards to perform various duties
related to the implementation and coordination of local
workforce investment activities.
This bill:
1. Requires (beginning program year 2012) that at least 25
percent of federal Workforce Investment Act (WIA) funds
provided to local workforce investment boards (WIBs) be
spent on workforce training programs.
2. Increases this percentage to 30 percent beginning in
program year 2016.
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3. Specifies that the expenditures that shall count towards
the above requirement shall include only training
services as defined under specified federal law,
including specified activities.
4. Specifies that local WIBs may receive a credit of up to
10 percent of their base allocations for public
education and training funds and private resources from
industry and joint labor-management trusts that are
leveraged for training services, as specified. This
credit may be applied toward the aforementioned training
thresholds.
5. Specifies that leveraged funds applied toward the credit
shall only include the following:
A. Federal Pell Grants.
B. Programs authorized under WIA.
C. Trade adjustment assistance.
D. Federal Department of Labor National Emergency
Grants.
E. Match funds from employers, industry and industry
associations.
F. Match funds from joint labor-management trusts.
G. Employment Training Panel grants.
6. Specifies that credit for leveraged funds shall only be
given if the local WIB keeps records of all training
expenditures it chooses to apply towards the credit.
Training expenditures may only be applied to the credit
if the relevant training costs can be independently
verified by the Employment Development Department (EDD)
and training participants must be co-enrolled in the WIA
performance monitoring system.
7. Specifies that the use of leveraged funds to partially
meet the training requirements is the prerogative of the
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local WIB.
8. Requires EDD to monitor compliance, as specified, and
requires a local WIB that does not meet these
requirements to submit a corrective action plan to EDD.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Assembly Appropriations Committee, this
bill will result in local WIA fund reallocation of $45.5
million to $56.8 million to meet the requirements of the
bill. In addition, to the extent local WIBs choose to use
leveraged funds to meet the minimum training percentages
specified in this bill, EDD may incur significant
administrative costs, likely in the hundreds of thousands.
SUPPORT : (Verified 9/9/11)
California Labor Federation (co-source)
California Manufacturers and Technology Association
(co-source)
Chicana Service Action Center (co-source)
Jewish Vocational Service, Los Angeles (co-source)
State Building and Construction Trades Council (co-source)
Association of Farmworker Opportunity Programs
California Conference Board of the Amalgamated Transit
Union
California Conference of Machinists
California Federation of Teachers
California Official Court Reporters Association
California State Council of Laborers
California State Council of the Service Employees
International Union
California Teachers Association
California Teamsters Public Affairs Council
Carolyn Heinrich, Sid Richardson Professor of Public
Affairs and Affiliated Professor of Economics, Director,
Center for Health and Social Policy, University of Texas at
Austin
Center for Law and Social Policy
Communication Workers of America
Community Career Development
Community Centers, Inc.
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Council of California Goodwill Industries
Dr. Christopher King, Director, Ray Marshall Center for the
Study of
El Proyecto del Barrio
Engineers and Scientists of California
Hub Cities Consortium
Human Resources, University of Texas at Austin
International Association of Machinists
International Brotherhood of Teamsters
International Federation of Professional and Technical
Engineers
International Longshore and Warehouse Union
Jewish Labor Committee - Western Region
Los Angeles County Federation of Labor
Los Angeles Mayor Antonio Villaraigosa
North Valley Labor Federation
Pacific Asian Consortium in Employment
San Joaquin Calaveras Central Labor Council
Southeast Los Angeles - Watts Worksource Center
UNITE HERE!
United Food and Commercial Workers - Western States
Conference
Utility Workers Union of America, Local 132
Watts Labor Community Action Committee
OPPOSITION :(Verified 9/9/11)
California State Association of Counties
Contra Costa County
Los Angeles
Marin County
Regional Council of Rural Counties
Urban Counties Caucus
ARGUMENTS IN SUPPORT : According to the author's office,
federal law provides states with significant latitude to
adjust WIA and align it with a broader economic vision,
something of which California has failed to take advantage.
Proponents argue that a vast majority of funds are going
to support relatively less effective short-term "core"
services (such as job search assistance) provided through a
costly network of nearly 150 comprehensive One-Stop
centers. The author's office and proponents believe that
this bill is the first step in re-evaluating how these
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dollars are spent and ensuring that more money is invested
in training programs that are effective and align with a
state plan for economic growth. In addition, proponents
argue that the objective behind this legislation is not to
displace anyone that might be currently providing job
services through the One-Stop Centers, but instead
redirecting our overall efforts toward more effective
training programs that result in permanent jobs for all
displaced workers.
According to the sponsors, the language of this bill
reflects a compromise reached with community-based
workforce partners. This bill differs from SB 776
primarily in that it allows a credit of up to 10 percent
for leveraged funds, as specified. With the recent
amendments, this bill is supported by groups including
Jewish Vocational Services of Los Angeles, Chicana Service
Action Center, the Southeast L.A.-Watts Worksource Center,
the Watts Labor Community Action Committee and the Council
of California Goodwill Industries.
ARGUMENTS IN OPPOSITION :This bill is similar to SB 776
(DeSaulnier). Opponents of SB 776 argued that if passed,
it would close career centers throughout the state, return
the public workforce system to an antiquated model of
funding streams, and limit much needed services to job
seekers and businesses during this recession. Opponents
argued that SB 776 would interfere with core tenants of the
federal legislation, namely, local control and individual
empowerment.
PQ:do 9/9/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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