BILL ANALYSIS �
AB 1910
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Date of Hearing: April 22, 2014
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY
Jose Medina, Chair
AB 1910 (Gray) - As Amended: March 28, 2014
SUBJECT : San Joaquin Valley Workforce Investment
SUMMARY : Establishes the San Joaquin Valley Regional Economic
Planning and Preparedness Council (SJVREPPC) in order to perform
specified tasks related to addressing the workforce needs of the San
Joaquin Valley's emerging technology and energy economy.
Specifically, this bill :
1)Makes findings and declarations including, but not limited to, that
the San Joaquin Valley has experienced extremely high unemployment
during the past two decades, ranging from 62% to 152% above the
statewide average and that 50% of the population is living on
poverty-level incomes including both unemployed and underemployed
individuals.
2)Requires the California Workforce Investment Board (CWIB) to
establish a special committee, known as the SJVREPPC.
3)Specifies that the membership of the SJVREPPC includes
representatives from the CWIB including, but not limited to
representatives from the following categories: K-12 education, the
California Community College system, the Employment Development
Department, the Department of Food and Agriculture, the Governor's
Office of Business and Economic Development, and the California
Transportation Commission.
4)Authorizes the CWIB to call on other state agencies, higher
education institutions, and industry representatives, as well as
philanthropic and nongovernmental groups to serve as consultants to
the SJVREPPC.
5)Requires the SJVREPPC to develop the framework, funding strategies,
and programs, to address the growing need for a highly skilled and
well-trained workforce to meet the needs of the San Joaquin Valley's
emerging technology and energy economy. More specifically, the bill
requires the SJVREPPC to:
a) Assist in identifying and linking emerging technology and
energy job opportunities with workforce development training
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opportunities.
b) Encourage regional collaboration among local workforce
investment areas to meet regional economic demands.
c) Develop public, private, philanthropic, and nongovernmental
partnerships to build and expand the state's workforce
development programs, network, and infrastructure.
d) Provide policy guidance for job training programs in the
emerging technology and energy sector, to assist and prepare
specific populations, such as at-risk youth, displaced workers,
veterans, formerly incarcerated individuals, and others facing
barriers, for employment.
e) Develop, collect, interpret, and distribute statewide and
regional labor market data on California's new and emerging
technology and energy workforce needs, trends, and job growth.
f) Identify funding resources and make recommendations on how to
expand and leverage these funds.
g) Foster regional collaboration in the emerging technology and
energy economic sector.
6)Requires the SJVREPPC to report annually on the status of the
council activities and its development of an oil and natural gas
workforce strategic initiative.
EXISTING LAW :
1)Establishes the CWIB, comprised of members appointed by the Governor
and the appropriate presiding officer(s) of each house of the
Legislature, and specifies that the executive director of the CWIB
report to the Secretary of the California Labor and Workforce
Development Agency. The CWIB is responsible for assisting the state
in meeting the requirements of the federal Workforce Investment Act
of 1998 (WIA), as well as assisting the Governor in the development,
oversight, and continuous improvement of California's workforce
investment system.
2)Requires the CWIB to establish a special committee known as the
Green Collar Jobs Council (GCJC) to develop a strategic initiative
in the green workforce development area. The GCJC is directed to
develop the framework, funding strategies, programs, partnerships,
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and opportunities necessary to address the growing need for a highly
skilled and well-trained workforce to meet the state's growing green
economy.
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's Purpose : According to the author, "The San Joaquin Valley
has maintained historically higher unemployment and poverty than the
rest of the state for over 20 years. The economic stagnation of the
Valley is a systematic issue that results from the fluctuating
employment opportunities throughout the agricultural cycle as well
as inadequate diversity in other sectors of the economy.
Developing the San Joaquin Valley's workforce skills and aligning
public and private workforce development resources with industry
growth opportunities in the region to meet current and future
business workforce requirements and close the business-workforce
skills gap will cultivate higher paying jobs and will allow the
Valley's economy to flourish. With the establishment of a research
university at UC Merced, and the exciting development of the Valleys
emerging technology and energy economy the California Work Force
Development Board can ensure the San Joaquin Valley is prepared to
take advance of these economic opportunities by providing the
resources necessary to develop a ready and able workforce."
2)Framing the Policy Issue : This bill calls for the establishment of
a council within the California Workforce Investment Board with a
similar structure to that of the GCJC, which was established in 2009
to help guide state policy on green jobs.
In deliberating the merits of the measure, Members may wish to
consider the current economic conditions within the San Joaquin
Valley, the opportunities that energy related jobs provide the
region, and whether the region is ready to engage with a major state
policy board. The analysis includes information on these issues
including related legislation. Comment 7 includes amendment
recommendations.
3)The San Joaquin Valley Partnership : The San Joaquin Valley
Partnership (Partnership) was established in June of 2005 through a
gubernatorial executive order, with its board members being
appointed by September of the same year. At the Partnership's first
meeting, board members adopted a work plan and established 10
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working groups. Ultimately, the recommendations from these working
groups were combined with testimony offered at almost a dozen public
meetings to comprise the basis of a comprehensive regional strategic
action plan (Strategic Plan), "The San Joaquin Valley: California's
21st Century Opportunity" (October 2006).
In 2006, the Partnership awarded $2.5 million in seed grants to
jumpstart the implementation of their strategic action plan. These
moneys served as a catalyst for advancing the locally defined
priority projects identified in the strategic plan. By 2008, the
region, by acting collaboratively on priorities identified in the
strategic plan, had attracted an additional $6 million in state
program dollars, including funding for a regional nursing education
consortium, Highway 99 improvements, and job training for high-wage
occupations, such as manufacturing, logistics, and construction.
One of the strengths of the Partnership's continually updated
strategic plan is its baseline indicators and metrics for measuring
success. The following are a few examples of baseline indicators:
a) Approximately 22% of the San Joaquin Valley population lives
in poverty. This compares with a 13% poverty rate for the rest
of California and 12% for the rest of the nation.
b) Average per capita income in the San Joaquin Valley is 32.2%
lower than the rest of California. Whereas average income in the
state is approximately $32,500, average income in the Valley is
approximately $21,300.
c) Unemployment rates in the San Joaquin Valley are among the
highest in the state and in the nation.
d) Access to healthcare is 31% lower than other regions, and more
than 20% of San Joaquin Valley households do not have health
insurance, compared to about 15% in the nation.
e) College attendance is 50% below statewide averages. In the
San Joaquin Valley, about 33% of the adult population has less
than a high school education, compared to 24% statewide and 20%
nationwide.
Today, almost a decade out, the Partnership exists as a
public-private partnership focused on achieving "a prosperous
economy, quality environment, and social equality throughout
California's great San Joaquin Valley." The Partnership includes
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representatives from state, county, and local governments; business;
industry; agriculture; academia; and the nonprofit community. At
its most recent meeting in March 2014, the Partnership heard
presentations from the Governor's Drought Task Force (Secretary
Karen Ross); the California Department of Health and Human Services
(Secretary Diana Dooley); the State Water Resources Control Board
(Board Member DeeDee D'Adamo); the California Department of Public
Health (Dr. Mark Starr); and Rural Development, U.S. Department of
Agriculture (Director Dr. Glenda Humiston).
4)Snapshot of the San Joaquin Valley Today : The 2013 Economic Summit
Briefing Book for the San Joaquin Valley reports that the per capita
income for the region is $31,533 as compared to $44,550 for all of
California. Approximately 50% of the population lives in poverty in
the San Joaquin Valley as compared to 35% for the statewide average.
--------------------------------------------------------------------
| Educational Attainment by Race and Ethnicity |
--------------------------------------------------------------------
|---------------+------------+------------+------------+------------|
| | Less than | High | Some | Bachelor's |
| |High School | School, | College or | Degree or |
| | | GED, or | Associates | Higher |
| | |Alternative | Degree | |
| | |Certificate | | |
|---------------+------------+------------+------------+------------|
|Hispanic and | 48% | 24% | 22% | 6% |
|Latino | | | | |
|---------------+------------+------------+------------+------------|
|Multiple and | 43% | 24% | 24% | 8% |
|Other | | | | |
|---------------+------------+------------+------------+------------|
|Black or | 19% | 27% | 41% | 13% |
|African | | | | |
|American | | | | |
|---------------+------------+------------+------------+------------|
|White | 12% | 28 % | 38% | 23% |
|---------------+------------+------------+------------+------------|
|Asian | 25% | 19% | 26% | 30% |
|---------------+------------+------------+------------+------------|
|Regional Total | 30% | 25% | 30% | 15% |
-------------------------------------------------------------------
--------------------------------------------------------------------
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| Source: 2013 Economic Summit Briefing Book for the San Joaquin |
|Valley |
--------------------------------------------------------------------
The region's top economic priorities include infrastructure
development, sustainable planning, and job creation. The core of
the workforce development work is organized around regional industry
clusters, expanding higher education opportunities, and developing
the workforce preparation infrastructure to support sustained, long
term, economic vitality.
Key challenges in reaching these goals were identified as a growing
shortage of skilled workers for major regional industry sectors;
thousands of unemployed and underemployed people; growing
competition from other states and regions in the world; and a
fragmented and under-resourced approach to workforce development.
AB 1910 would assist the San Joaquin Valley in addressing address
these challenges and meeting their economic objectives.
5)Energy Industry Studies : The petroleum industry has played a
significant role in the San Joaquin Valley for more than a century.
Although energy production has lessened in the past several decades
since its peak in 1985, the exploration and extraction opportunities
of the Monterey Shale Formation creates new opportunities. In order
to maximize these opportunities, however, the industry requires a
consistent pipeline of qualified workers. The Western State
Petroleum Association had a report prepared in 2013 to help identify
(1) what the economic impact of the industry was on the region, and
(2) to assess the potential economic future of the oil industry in
the San Joaquin Valley from the Monterey Shale Formation. A
selection of key findings from the report include:
Oil produced in the San Joaquin Valley accounts for 74% of all
oil and 65% of all gas production in California.
Over 95% of the oil produced in the San Joaquin Valley comes
from Kern County. It accounts for 20% of the county's GDP and 5%
of employment.
The petroleum industry, with its related industries, supports
52,271 jobs (3.1% of all jobs) in the San Joaquin Valley, and has
an annual payroll of $4.08 billion.
The petroleum industry generates $23.6 billion in sales for
businesses located in the San Joaquin Valley, representing 10%
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total sales.
The petroleum industry generates $364,480 annually in sales
tax and $3.8 million in property taxes.
Job gains for the future range between 2,151 and 34,485 under
the high resource scenario and between 2,151 and 195,683 under
the high resource - oil boom scenario.
Personal income growth ranges from $201 million to $4 billion
under the high resource scenario and $201 million to $22 billion
under the high resource - oil boom scenario.
The Los Angeles Economic Development Corporation has been
commissioned to prepare a follow-up study which will cover the eight
San Joaquin Valley counties and assess their current workforce
capabilities. More specifically, the second study will examine
existing conditions in the labor market while considering
demographic and labor force characteristics, industry employment,
wage data, and an inventory of existing training and education
programs for workforce development. They will also use information
from a Fresno State study to project workforce needs, using metrics
such as detailed knowledge, skills, and abilities. And finally, the
study will look at projected workforce needs to see if there are any
cross occupational training or education programs that can help new
entrants in the labor market or those that have been unemployed.
1)WIA and the California Workforce Investment Board : Enacted in 1998,
WIA provides states with federal funding for job training and
employment investment activities and programs, including work
incentive and employment training outreach programs. Distribution
of the funds is based on a set formula which includes specified
economic and demographic data and flows to the state through three
primary programs: Adult, Youth, and Dislocated Workers.
California's WIA allocation from the U.S. Department of Labor has
declined over the years from a high of $630 million in 2000-01 to
$411 million in 2012-13. Federal law dictates that 85% of Adult
and Youth formula funds, and 60% of Dislocated Worker formula funds,
are distributed to local WIBs (LWIBs). Funding for the state's
activities is derived from the 15% WIA discretionary funds. In
2012-13 LWIBs received $348 million, while the state received about
$20 million in discretionary moneys.
California's WIA dollars are overseen by the 56-member CWIB, of
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which 61% of the members represent the private sector, as required
by federal law. Among its primary duties, the CWIB provides
guidance to local LWIBs and is responsible for the development of a
unified, strategic plan to coordinate various education, training,
and employment programs that result in an integrated workforce
development system that supports economic development. The plan is
required to be updated at least every 5 years in order to address
the state's changing economic, demographic, and workplace needs.
The most recent plan was submitted to the federal Department of
Labor in April 2013 and approved after consultation and modest
revisions in June 2013. Based on the framework of the state plan,
in July 2013, the LWIBs submitted local workforce investment plans
for the CWIB's review. Key among the policy enhancements in the
current state and local plans are strengthened performance
indicators to allow for ongoing monitoring of the plan's success.
The CWIB has a staff of 17 authorized positions and is currently led
by Executive Director Tim Rainey. There are 49 LWIBs that plan for
and oversee the workforce investment system at the local level.
Each LWIB also has one or more One-Stop Centers, which provide
access to career information, counseling, and funding for education,
training and supportive services.
In 2008, CWIB established the GCJC to address the workforce
development needs of the emerging clean and green economy. AB 1910
is molded after this council. [AB 3018 (Nunez) Chapter 312, Statues
of 2008]
2)Technical Amendments : The committee staff has been working with the
author on amendments to make clarifying changes to effectuate the
purpose of the SJVREPPC including, but not limited to, defining the
Council's role as a facilitator to help connect federal and state
public agencies and the private non-profit sector with workforce
related stakeholders in the San Joaquin Valley.
3)Related Legislation : Legislation related to this measure includes
the following:
a) AB 8 (V. Manuel P�rez) Renewable Energy Workforce Readiness
Initiative: This bill would have required the California
Workforce Investment Board, in consultation with the Green Collar
Jobs Council, to establish a Renewable Energy Workforce Readiness
Initiative, as specified. As part of these activities, the
California Workforce Investment Board would have provided
guidance to local workforce investment boards on how to establish
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comprehensive green collar job assessment, training, and
placement programs that reflect the local and regional economies.
Status: Vetoed by the Governor, 2011
b) AB 285 (Brown) Scope of Practice for the California Workforce
Investment Board: This bill would have required the California
Workforce Investment Board to make recommendations and provide
technical assistance on entrepreneurial training opportunities
that could be made available through local workforce investment
boards. The bill would have also deleted certain required duties
of the California Workforce Investment Board and made changes to
the definition of microenterprise. Status: Vetoed by the
Governor, 2013.
c) AB 1315 (John A. P�rez) California Green Collar Jobs Act:
This bill adds the Speaker of the Assembly and the President Pro
Tempore of the Senate as members of the California Workforce
Investment Board and the Green Collar Jobs Council. This bill
also authorizes the Green Collar Jobs Council to include
representatives from other states agencies and other interested
parties as appropriate, and requires the development of a common
framework to address workforce needs arising from changes in
industries impacted by state policies to reduce greenhouse gas
emissions. Status: Pending on the Assembly Inactive File.
d) AB 3018 (Nunez) Green Collar Jobs Council: This bill enacted
the California Green Collar Jobs Act of 2008, which created the
Green Collar Jobs Council within the California Workforce
Investment Board to perform specified tasks related to addressing
the green economy workforce needs of the state. Specifically,
the bill required the Council to develop a comprehensive array of
programs, strategies, and resources to address the state's
growing green economy. Status: Signed by the Governor, Chapter
312, Statutes of 2008.
e) SB 73 (Senate Budget and Fiscal Review Committee) Proposition
39 Budget Trailer Bill: This bill specified that the allocation
of Prop 39 revenues available for K-12 local educational agencies
and California Community College districts. This bill also
appropriated $3 million in Prop 39 revenues to the California
Workforce Investment Board to develop and implement a grant
program for community-based organizations and other training
workforce organizations preparing disadvantaged youth or veterans
for employment. Status: Signed by the Governor, Chapter 357,
Statutes of 2013.
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f) SB 118 (Lieu) Education and Workforce Investment Systems:
This bill required the California Workforce Investment Board to
incorporate specific principles into the state's strategic plan
to align the education and workforce investment systems of the
state to the needs of the 21st century economy and promotes a
well-educated and highly skilled workforce to meet the state's
future workforce needs. Status: Signed by the Governor, Chapter
562, Statutes of 2013.
g) SB 698 (Lieu) High Performance Boards: This bill required the
Governor to establish, through the California Workforce
Investment Board, standards for certification of high-performance
LWIBs, in accordance with specified criteria. The bill also
required the Governor and the Legislature, in consultation with
the California WIB, to reserve specified federal discretionary
funds for high-performing LWIBs. Status: Signed by the
Governor, Chapter 497, Statutes of 2011.
h) SB 1402 (Lieu) California Workforce and Economic Development
Program: This bill recast and revised the California Community
Colleges Economic and Workforce Development Program to more
closely align with economic and workforce best practices and
extends the program's sunset date from January 1, 2013 to January
1, 2018. Status: Signed by the Governor, Chapter 361, Statutes
of 2012.
REGISTERED SUPPORT / OPPOSITION :
Support
Kaiser Permanente
Opposition
None received
Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916) 319-2090
AB 1910
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