BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1291
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          SENATE THIRD READING
          SB 1291 (Evans)
          As Amended  May 25, 2012
          Majority vote 

           SENATE VOTE  :25-14  
           
           INSURANCE           11-2        APPROPRIATIONS      12-5        
           
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          |Ayes:|Solorio, Hagman,          |Ayes:|Gatto, Blumenfield,       |
          |     |Bradford, Fong, Carter,   |     |Bradford, Charles         |
          |     |Feuer, Hayashi, Olsen,    |     |Calderon, Campos, Davis,  |
          |     |Skinner, Torres,          |     |Fuentes, Hall, Hill,      |
          |     |Wieckowski                |     |Cedillo, Mitchell,        |
          |     |                          |     |Solorio                   |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Beth Gaines, Miller       |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY :  Permits teachers participating in credential 
          preparation programs in math, science, and special education to 
          automatically qualify for the California Training Benefits 
          Program (CTB).  Specifically,  this bill  :   

          1)Permits permanent or probationary public school teachers who 
            have been laid off and participate in a training program to 
            obtain certification in math, science or special education to 
            receive additional unemployment insurance (UI) benefits 
            through the CTB.

          2)Delays implementation of this provision until January 1, 2014.

          3)Extends the sunset date for the CTB until January 1, 2019.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, variable costs based on the number of program 
          participants.  The Assembly Appropriations Committee estimated 
          the following based on the assumption that 1,000 to 2,500 
          teachers would participate, each participant would qualify for 
          the maximum weekly benefit amount of $450, and would receive 
          benefits for the entire 26 week training extension time period.  
          This bill would increase annual benefit payments between $11.7 








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          million and $29.3 million per year from the School Employees 
          Fund (SEF). 

           COMMENTS  :  According to the author, this bill will help retain 
          thousands of laid off teachers by authorizing UI benefits for 
          those who seek certification training and intensive test 
          preparation in the high demand areas of math, science, and 
          special education. This bill will create job opportunities by 
          expanding available training for teachers who wish to stay in 
          the teaching field. In the future, this bill will decrease 
          unemployment benefits and result in cost avoidance in years to 
          come by permanently employing these teachers.

          Federal law requires states to approve individuals for any week 
          of UI benefits in which the individuals are in "state-approved" 
          school or training and not to disqualify them for failure to be 
          available for work, actively seeking work, and refusing suitable 
          work.

          In California, state-approved training means training offered 
          under the Federal Workforce Investment Act, the California 
          Employment Training Panel, the Federal Trade Act of 1974, or the 
          California Work Opportunity and Responsibility to Kids Program; 
          the individual is a participant in training with a provider that 
          is certified and on the state's Eligible Training Provider List; 
          or the individual is a journey level union member participating 
          in specified training.  Those would all be considered 
          "automatically" approved training programs, as long as claimants 
          meet all other eligibility criteria.  Claimants who do not enter 
          into training under the above circumstances may be eligible for 
          other approved training if they meet other requirements.  

          Claimants determined eligible for the CTB program are exempt 
          from the statutory requirements of being available for work and 
          actively seeking work while attending state-approved training.  
          Individuals participating in CTB who are otherwise eligible for 
          UI benefits may receive their regular UI benefits during the 
          period of CTB approved training.  There is also a Training 
          Extension claim which provides additional benefits up to a 
          combined maximum of 52 weeks (26 weeks for the regular UI claim 
          plus 26 weeks for the Training Extension claim).  

          California has the largest teacher workforce in the country, 
          with over 305,000 teachers but only 40,000 of these are 








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          specialized in mathematics or science.  California has faced 
          similar challenges in maintaining an adequate supply of special 
          education teachers.  In order to become a science, mathematics, 
          or special education teacher, an employee must demonstrate 
          competency through exams and other assessment methods specific 
          to the desired teaching specialty in addition to a general 
          assessment on basic educational skills.  As a result, the 
          population of teachers who choose to specialize in a particular 
          subject is scarce relative to those who are only generally 
          credentialed.

          Fiscal conditions have required school districts across the 
          state to dismiss 32,000 teachers since 2007-2008 which has 
          exacerbated the scarcity of specialized teachers.  According to 
          a 2007 study from The Center for the Future of Teaching and 
          Learning, California will face a deficit of 33,000 science and 
          math teachers over the next ten years due to attrition and 
          retirement.  The same study also found that California's current 
          rate of teacher production, particularly in specialized areas, 
          is insufficient to bridge the gap.

          Public school districts and community colleges do not pay 
          unemployment insurance taxes.  Instead they contribute to the 
          SEF.  All 72 community college districts and 1,298 county 
          offices of education, public school districts, and charter 
          schools participate in the SEF.  Money deposited in the SEF is 
          used to reimburse the UI Trust Fund for the cost of UI benefits 
          paid to former employees.  The SEF has a projected fund balance 
          of over $300 million as of June 30, 2012.  The costs of paying 
          the additional benefits from this bill will be borne by the SEF. 
           


           Analysis Prepared by  :    Paul Riches / INS. / (916) 319-2086


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