BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 1910 (Gray) - California Workforce Investment Board: San  
          Joaquin Valley Regional Planning and Preparedness Act of 2014
          
          Amended: May 5, 2014            Policy Vote: L&IR 5-0
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Robert Ingenito     
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: AB 1910 would establish the San Joaquin Valley  
          Regional Economic Planning and Preparedness Council (SJVREPPC)  
          to develop an oil and natural gas workforce strategic initiative  
          that addresses region's energy sector workforce needs.

          Fiscal Impact: Ongoing costs of $110,000 to the California  
          Workforce Investment Board (CWIB) to oversee the Council.  CWIB  
          indicates a portion of the costs could be covered by federal  
          funds. Given the current federal budget climate, however,  
          General Fund dollars may be needed in the out-years.

          Background: 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 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  








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          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 Partnership was  
          awarded $2.5 million in grant funding to implement its strategic  
          plan. These moneys served as a catalyst for advancing the  
          locally defined priority projects and helped secure additional  
          state funding for a variety of local needs.  

          Proposed Law: This bill would establish the SJVREPPC to perform  
          specified tasks related to addressing the workforce needs of the  
          San Joaquin Valley's expanding energy economy. Specifically,  
          this bill would do the following:

                 Specify 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.

                 Require the SJVREPPC to develop the framework, funding  
               strategies, and programs to address specified energy  
               workforce needs. Tasks of the Council include: encouraging  
               regional collaboration among local workforce investment  
               areas; developing public/private partnerships to build and  
               expand the state's workforce development programs;  
               providing policy guidance for job training programs; and  
               developing collecting, and distributing statewide and  
               regional labor market data on California's workforce needs,  
               trends, and job growth in the oil and gas industry.

                 Require the SJVREPPC to report annually on the status of  
               the council activities and its development of an oil and  
               natural gas workforce strategic initiative.  


          Related Legislation: AB 3 (V. Manuel Perez) of 2009. 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.  








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          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. This bill was vetoed by the Governor.

          Staff Comments: 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.

          Federal discretionary funding that would be used for the  
          purposes of this bill is expected to be restored through 2016-  
          2020. To the extent that future federal budgets do not include  
          the restoration, however, funding for this bill would likely  
          come from the General Fund.