BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
Senator Ben Hueso, Chair
Date of Hearing: June 25, 2014 2013-2014 Regular
Session
Consultant: Alma Perez-Schwab Fiscal:Yes
Urgency: No
Bill No: AB 1910
Author: Gray
As Introduced/Amended: May 5, 2014
SUBJECT
California Workforce Investment Board:
San Joaquin Valley Regional Planning and Preparedness Act of
2014
KEY ISSUE
Should the Legislature establish the San Joaquin Valley Regional
Economic Planning and Preparedness Council to develop an oil and
natural gas workforce strategic initiative that addresses the
workforce needs of the expanding energy economy in the San
Joaquin Valley?
ANALYSIS
The federal Workforce Investment Act (WIA) of 1998 provides
funding for activities and programs for job training and
employment investment in which states may participate, including
work incentive and employment training outreach programs.
Following passage of the federal WIA, the state established the
California Workforce Investment Board (CWIB) and charged the
board with the responsibility of developing a unified, strategic
planning process to coordinate various education, training, and
employment programs into an integrated workforce development
system. There are 49 Local WIBs and within each local workforce
area there are one or more One-Stop Centers, which provide
access to career information, counseling, funding for education,
training and supportive services.
Among its responsibilities, the State Board must establish
criteria for development of 1) the formula to be used for
allocating funds to the local areas, 2) dissemination of the
Governor's 15% WIA discretionary funding, and 3) certification
and re-certification of local WIBs. The State Board engages
State and local workforce, education, and economic development
partners in this critical work through its Special Committees
which include the Advanced Manufacturing Workforce Development
Council, the Health Workforce Development Council, and the Green
Collar Jobs Council.
This Bill would establish the San Joaquin Valley Regional
Economic Planning and Preparedness Council (SJVREPPC) to perform
specified tasks related to addressing the workforce needs of the
San Joaquin Valley's expanding energy economy.
Specifically, this bill would:
1) Direct the CA Workforce Investment Board to establish
this special committee, to be known as the SJVREPPC, to
develop an oil and natural gas workforce strategic
initiative to address the growing need for a highly skilled
and well-trained workforce to meet the needs of the
expanding energy economy of the San Joaquin Valley.
2) In developing the strategic initiative, require the
SJVREPPC to do, among other things, the following:
a. Identify and develop the framework,
strategies, programs, policies, partnerships and
funding opportunities necessary to address San Joaquin
Valley's workforce needs.
b. Facilitate the development of public, private,
philanthropic, and nongovernmental partnerships to
build and expand the state's workforce development
programs, network, and infrastructure related to the
energy sector.
c. Provide policy guidance for job training
programs in the energy sector to assist and prepare
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Senate Committee on Labor and Industrial Relations
specific populations, such as at-risk youth, displaced
workers, veterans, formerly incarcerated and others
facing barriers to employment.
d. Develop, collect, interpret, and distribute
statewide and regional labor market data on
California's current and expanding workforce needs,
trends, and job growth within the oil and gas
industry.
3) Specify that the membership of the SJVREPPC includes
representatives from the CWIB including, but not limited
to, the following: K-12 education, the CA Community
College system, the Employment Development Department, the
Governor's Office of Business and Economic Development, and
the CA Transportation Commission.
4) Authorize 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) Require the SJVREPPC to report annually to the
Legislature on the status of council activities and its
development of an oil and natural gas workforce strategic
initiative.
6) Make several findings and declarations relating to the
San Joaquin Valley economy and its current and future
workforce needs.
COMMENTS
1. The San Joaquin Valley Partnership:
The San Joaquin Valley Partnership is a public-private
partnership, established in June 2005 through a gubernatorial
executive order, focused on improving the region's economic
vitality and quality of life for the 3.9 million residents of
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the San Joaquin Valley. Although the San Joaquin Valley is
one of the most productive agricultural regions in the world,
the economic well-being of its residents has trailed behind
state and national averages.
According to the Partnership web site, included in Executive
Order S-05-05 was a request by Governor Schwarzenegger for the
new Partnership to submit a Strategic Action Proposal that
provided recommendations to improve the economic condition of
the Valley. In October 2006, the group delivered its
recommendations in its Strategic Action Plan (SAP): "The San
Joaquin Valley, California's 21st Century Opportunity." The
partnership is addressing the challenges of the region by
implementing measurable actions on six major initiatives which
include, 1) build a 21st century transportation mobility
system; 2) grow a diversified, globally competitive economy
supported by a highly skilled workforce; 3) create a model
K-12 public education system; 4) develop high-quality health
and human services; 5) attain clean air standards; and 6)
implement an integrated framework for sustainable growth.
The two-year grant that launched the Partnership was finalized
in 2009; but the Partnership continues the 10-year SAP by
acquiring other grant funding. The Partnership was extended
indefinitely and governance guidelines were established in
July 2010 with Governor Schwarzenegger's Executive Order
S-10-10.
2. CWIB and the Green Collar Jobs Council:
California's Workforce Investment Act 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.
California's WIA dollars are overseen by the 56-member CWIB,
of which 61% of the members represent the private sector, as
required by federal law. Among its primary duties, the CWIB
provides guidance to Local WIBs 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
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economic, demographic, and workplace needs.
The CWIB engages State and local workforce, education, and
economic development partners in this critical work through
its Special Committees, of which includes the Green Collar
Jobs Council (GCJC). In 2008, the Governor signed AB 3018
(Nunez) establishing the GCJC within the CWIB to perform
specified tasks related to the clean and green economy. The
GCJC makes recommendations and creates strategies for
comprehensive and effective workforce training opportunities
to help prepare California's current and future workforce to
meet the skills demand from businesses supporting the energy
efficiency and clean energy sectors. AB 1910 is molded after
this council.
3. San Joaquin Valley Economy and Need for this bill?
The San Joaquin Valley includes 250 miles of the State
extending from San Joaquin County in the north to Kern County
in the south and includes San Joaquin, Stanislaus, Merced,
Madera, Fresno, Kings, Tulare and Kern. The 2013 Economic
Summit Briefing Book for the San Joaquin Valley (created by
partners California Stewardship Network and California
Forward) 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.
According to the Economic Summit Briefing Book, the region's
top economic priorities include infrastructure development,
sustainable planning, and job creation. Unfortunately, key
challenges in reaching these goals were identified including 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.
This bill would assist the San Joaquin Valley in addressing
address these challenges and meeting their economic objectives
by directing the CWIB to establish the San Joaquin Valley
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Senate Committee on Labor and Industrial Relations
Regional Economic Planning and Preparedness Council (SJVREPPC)
to develop an oil and natural gas workforce strategic
initiative to address the growing need for a highly skilled
and well-trained workforce that meets the needs of the
expanding energy economy of the Valley.
4. Proponent Arguments :
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.
The author argues that developing the San Joaquin Valley's
workforce skills and aligning public and private workforce
development resources with industry growth opportunities to
meet current and future workforce needs will cultivate higher
paying jobs and will allow the Valley's economy to flourish.
The author believes that the creation of the San Joaquin
Valley Regional Economic Planning and Preparedness Council can
ensure the San Joaquin Valley is prepared to take advantage of
economic opportunities by providing the resources necessary to
develop a ready and able workforce. Proponents agree, writing
in support of strategic and concentrated efforts to make the
state's workforce development system more responsive to the
technical needs of California's regional industrial economies.
Additionally, proponents argue that by creating this council,
the State Legislature will serve as the catalyst for creating
a needed program, providing an opportunity for
underrepresented, building our future workforce and supporting
an industry that supports the tax base of our state.
5. Opponent Arguments :
None received.
6. Related Prior Legislation :
AB 1315 (John A. Perez) of 2013: Held at Senate Desk
This bill would have added the Speaker of the Assembly and the
President Pro Tempore of the Senate as members of the CWIB and
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Senate Committee on Labor and Industrial Relations
the GCJC. This bill would have also authorized the Green
Collar Jobs Council to include representatives from other
specified parties, and require the development of a common
framework to address workforce needs arising from changes in
industries impacted by state policies to reduce greenhouse gas
emissions.
AB 3 (V. Manuel Perez) of 2009: Vetoed by the Governor
This bill would have required the CWIB, in consultation with
the GCJC, to establish a Renewable Energy Workforce Readiness
Initiative to ensure green collar career placement and
advancement opportunities within California's renewable energy
generation. Among other things, it would have required that
the initiative provide guidance to local WIB's on how to
establish comprehensive green collar job assessment, training,
and placement programs that reflect the local and regional
economies.
AB 3018 (Nunez) of 2008: Chaptered
This bill enacted the California Green Collar Jobs Act of
2008, which created the Green Collar Jobs Council within the
CWIB to perform specified tasks related to addressing the
green economy workforce needs of the state.
SUPPORT
California Independent Petroleum Association
California Manufacturers & Technology Association
Western States Petroleum Association
OPPOSITION
None received
Hearing Date: June 25, 2014 AB 1910
Consultant: Alma Perez-Schwab Page 7
Senate Committee on Labor and Industrial Relations