BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
William W. Monning, Chair
Date of Hearing: June 26, 2013 2013-2014 Regular
Session
Consultant: Deanna D. Ping Fiscal: Yes
Urgency: No
Bill No: AB 684
Author: Medina
As Amended: May 24, 2013
SUBJECT
Workforce training: General Educational Development test
preparation: grants
KEY ISSUES
Should the Legislature authorize the California Workforce
Investment Board to provide grants for workforce training at
accredited institutions that provide instruction to individuals
that are preparing for the GED test?
Should the Legislature require the California Workforce
Investment Board, if it identifies available funds, to develop
and adopt regulations and procedures for the process of
dispensing these grants?
ANALYSIS
Existing law under the California Workforce Investment Act
established the workforce investment boards in every state to
provide a comprehensive range of workforce development
activities through statewide and local organizations. These
activities, provided in local communities, can benefit the
unemployed of all ages, veterans, persons with disabilities and
employers.
Existing law states that the California Workforce Investment
Board is the body responsible for assisting the Governor in the
development, oversight, and continuous improvement of
California's workforce investment system. (Unemployment
Insurance Code �14010)
Existing law states that the California Workforce Investment
Board, in collaboration with state and local partners, shall
develop a strategic workforce plan to serve as a framework for
the development of public policy, fiscal investment, workforce
education, and training programs to address the state's
economic, demographic, and workforce needs. The plan shall be
updated at least every five years. (Unemployment Insurance Code
�14020)
Existing law states that the California Workforce Investment
Board, in coordination with the department, shall participate in
the development of Request for Proposal (RFP) language and the
evaluation of proposals for determining grant allocations of the
funds.
(Unemployment Insurance Code �14022)
This bill authorizes the California Workforce Investment Board
(Board) to provide grants from available state and federal funds
to accredited institutions that provide instruction to persons
who are preparing for the GED test and that apply to the Board
to receive grants.
Specifically, this bill :
1)Authorizes the Board to provide grants from state and federal
funds that are available to the Board for the purpose of
workforce training, to accredited institutions that provide
instruction to individuals that are preparing for the GED test
and apply to the Board for a grant.
2)States that if the Board identifies funds available for the
grants, the Board shall develop and adopt regulations and
procedures for the process of receiving and evaluating
applications for grants from accredited institutions offering
GED training.
3)Makes several findings and declarations related to the
importance of increasing the number of Californians who obtain
a marketable and industry-recognized credentials or degrees.
Hearing Date: June 26, 2013 AB 684
Consultant: Deanna D. Ping Page 2
Senate Committee on Labor and Industrial Relations
COMMENTS
1. Background:
According to two recent Public Policy Institute of California
(PPIC) reports, by the year 2025, demand for college-educated
workers will outstrip the supply. Researchers estimate that
California will need an additional 1 million to 3.5 million
workers with some postsecondary education training. However,
the most recent statistics from the US Census Bureau indicate
that approximately 19% of California persons do not hold a
high school diploma or a GED, ranking California 45th in the
nation in high school completion, according to a recent study
by the National Center for Education Statistics.
In the past, students without a high-school diploma or GED
could apply for federal financial aid through the Ability to
Benefit (ATB) test; however, this option was eliminated last
year, affecting the ability of students to enroll in programs
to complete their high school education.
2. Need for this bill?
According to the author, the elimination of the ATB test
reduced the opportunity for California's low-income persons
without a high school diploma or GED to access federal
financial aid. This includes the loss of eligibility for Pell
Grants and other financial aid to non-high school graduates
interested in enrolling and preparing to take the GED test in
an accredited post-secondary training center on or after July
1, 2012.
According to the author, California will receive an estimated
$454 million from the federal government this year in order to
provide services for adults, unemployed workers and youth.
Allocation of state Workforce Investment Act funds for adults
pursuing a GED while attending accredited training education
centers will facilitate in the ability of low-income
individuals having the ability to receive their GED, enabling
them to qualify for Pell Grants and other forms of federal
financial aid.
Hearing Date: June 26, 2013 AB 684
Consultant: Deanna D. Ping Page 3
Senate Committee on Labor and Industrial Relations
3. Double Referral:
This bill has been double referred and, if approved by this
committee, it will be sent to the Senate Education Committee
for a hearing.
4. Proponent Arguments :
Proponents of AB 684 bring attention to the federal
government's elimination of Ability to Benefit (ATB) testing
as a way to acquire financial aid eligibility. Proponents
contend that as a result, newly enrolled students without a
high school diploma or its equivalent are no longer eligible
for federal student aid to help pay for the cost of tuition
leading to a post-secondary education - neither career and
technical certificate programs nor degree programs. Proponents
argue that the loss of ATB options threatens the economic
mobility of adults and youth seeking postsecondary credential
to improve their job prospects. According to proponents, AB
864 seeks to address this problem by leveraging federal funds
to improve opportunities for students looking to access a
range of workforce and training development activities.
5. Opponent Arguments :
None on file.
SUPPORT
American Career College/West Coast University
California Federation of Teachers
OPPOSITION
None on file.
Hearing Date: June 26, 2013 AB 684
Consultant: Deanna D. Ping Page 4
Senate Committee on Labor and Industrial Relations
Hearing Date: June 26, 2013 AB 684
Consultant: Deanna D. Ping Page 5
Senate Committee on Labor and Industrial Relations