BILL ANALYSIS �
AB 1910
Page 1
ASSEMBLY THIRD READING
AB 1910 (Gray)
As Amended May 5, 2014
Majority vote
ECONOMIC DEVELOPMENT 5-0 APPROPRIATIONS 15-0
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|Ayes:|Medina, Campos, Fong, |Ayes:|Gatto, Bigelow, |
| |Fox, | |Bocanegra, Bradford, Ian |
| |V. Manuel P�rez | |Calderon, Campos, Eggman, |
| | | |Gomez, Holden, Linder, |
| | | |Pan, Quirk, |
| | | |Ridley-Thomas, Wagner, |
| | | |Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Establishes the San Joaquin Valley Regional Economic
Planning and Preparedness Council (SJVREPPC) to develop an oil
and natural gas workforce strategic imitative to meet the
workforce needs of the San Joaquin Valley's expanding 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, which
shall be comprised of current CWIB members. Other state
agencies, higher education institutions, and industry
representatives, as well as philanthropic and nongovernmental
groups may serve as consultants to the SJVREPPC.
3)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 expanding energy economy.
4)Requires the SJVREPPC to report annually on the status of its
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activities.
EXISTING LAW establishes the CWIB, comprised of members
appointed by the Governor and the appropriate presiding
officer(s) of each house of the Legislature. 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.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, implementation of this measure will result in
$110,000 costs to the CWIB. While some of these moneys may come
from state discretionary funds, the CWIB indicates that some
General Fund dollars may be needed.
COMMENTS : This bill calls for the establishment of a special
council within the CWIB which would be tasked with the
development of a strategy to meet the workforce training needs
of San Joaquin Valley oil industry. The council would work in
partnership with the San Joaquin Valley Partnership and other
public and private stakeholders.
In deliberating on the merits of the measure, Assembly Members
may wish to consider the current economic challenges facing the
San Joaquin Valley and the opportunities that energy related
jobs could provide. Below is a brief discussion of these
issues, the policy committee analysis includes a more
comprehensive discussion.
The San Joaquin Valley: For the past several decades, the San
Joaquin Valley has been one of the fastest growing regions in
the nation. Fueled by rising housing prices in the Bay Area and
lower land values in the San Joaquin Valley, the population
rapidly expanded without similar levels of economic growth.
Even prior to the recession poverty rates within the San Joaquin
Valley were substantially higher that the rest of the state and
the nation; 22%, 13%, and 12% respectively. And, while other
regions were recovering, 50% of the population in the San
Joaquin Valley lived in poverty in 2012, as compared to 35% for
the statewide average. Per capita income also lagged with
$31,533 household income within the region, as compared to the
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statewide rate of $44,550. One of the area's largest challenges
lies in lack of education and training of the working age
population. The chart below shows that 30% of working age
population has less than a high school education and among
Latinos the percentage is higher with nearly half (48%) not
completing high school or receiving some sort of certificate.
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| Educational Attainment by Race and Ethnicity |
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|----------------+-----------+-----------+-----------+-----------|
| | Less than | High | Some |Bachelor's |
| | High | School, |College or | Degree or |
| | School | 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 |
| |
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The petroleum industry represents one of the key industries
within the region which is growing. Production within the San
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Joaquin Valley accounts for 74% of all oil and 65% of all gas
production in California. 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 industry generates $23.6 billion in sales for
businesses located in the San Joaquin Valley, representing 10%
total sales.
In the future, job gains range between 2,151 and 34,485.
Without a targeted workforce program for the residents of the
San Joaquin Valley, a majority of these new jobs could go to
people outside the region. This bill calls on the state to
facilitate the development of a comprehensive education and
workforce training program to leverage the economic
opportunities provided by the oil industry to benefit the people
of the Valley.
Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0003443