BILL ANALYSIS                                                                                                                                                                                                    Ó





          SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS
                             Senator Tony Mendoza, Chair
                                2015 - 2016  Regular 

          Bill No:               SB 342       Hearing Date:    April 22,  
          2015
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          |Author:    |Jackson                                              |
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          |Version:   |February 23, 2015                                    |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Alma Perez-Schwab                                    |
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                  Subject:  California Workforce Investment Board:   
                                  responsibilities


          KEY ISSUE
          
          Should the Legislature require that the California Workforce  
          Investment Board assist the Governor in helping individuals with  
          barriers to employment, including low-skill, low-wage workers,  
          the long-term unemployed, and members of single-parent  
          households, achieve economic security and upward mobility?


          ANALYSIS
          
           The former federal Workforce Investment Act (WIA) of 1998   
          provided for activities and programs for job training and  
          employment investment in which states could participate,  
          including work incentive and employment training outreach  
          programs. Following passage of the federal WIA, the state  
          established the California Workforce Investment Board (CWIB or  
          State Board) 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 that supports economic  
          development.  








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           Existing law  requires the local chief elected officials in a  
          local workforce development area to form, pursuant to specified  
          guidelines, a Local Workforce Investment Board (Local WIB) to  
          plan and oversee the workforce investment system at the local  
          level.  There are currently 49 local WIBs in the state.   
          (Unemployment Insurance Code §1400 et al) 
           
          Existing law  requires the CWIB, in collaboration with specified  
          state and local partners, and the Local WIBs to develop a  
          strategic workforce plan, updated at least every 5 years, to  
          address the state's economic, demographic, and workplace needs.  
          Among its responsibilities, the State Board develops protocols  
          to ensure that policies are developed with full public input and  
          discussion.  The State Board also assists the Governor in  
          targeting resources to specified industry sectors and provides  
          guidance to ensure that services reflect the needs of those  
          sectors.
           

          This Bill  would additionally require the State Board to assist  
          the Governor in helping individuals with barriers to employment,  
          including low-skill, low-wage workers, the long-term unemployed,  
          and members of single-parent households, achieve economic  
          security and upward mobility by implementing policies that  
          encourage the attainment of marketable skills relevant to  
          current labor market trends.
          COMMENTS
          

          1.  The federal Workforce Innovation and Opportunity Act (WIOA): 

            The federal WIOA, passed by a wide bipartisan majority and  
            signed into law by President Barack Obama on July 22, 2014, is  
            the first legislative reform of the public workforce system in  
            more than 15 years. WIOA supersedes the Workforce Investment  
            Act of 1998.  WIOA brings together, in strategic coordination,  
            the core programs of Federal investment in skill development,  
            including employment and training services for adults,  
            dislocated workers, youth and individuals with disabilities.  
            WIOA also authorizes programs for specific vulnerable  
            populations including Indian and Native Americans and migrant  
            and seasonal farmworker programs, among others. 

            The following are some highlights of the WIOA reforms: 







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                 Strategically aligns investments in workforce  
               development programs to ensure that services provided are  
               coordinated and complementary to ensure job seekers acquire  
               skills and credentials that meet employers' needs. 
                 Promotes accountability and transparency by ensuring  
               that investments are evidence-based and data-driven, and  
               accountable to participants and tax-payers. 
                 Fosters regional collaboration to promote alignment of  
               programs with regional economic development strategies to  
               meet local needs. 
                 Improves quality and accessibility of services received  
               by job seekers and employers at their local job centers by,  
               among other things, establishing criteria for certification  
               of the centers that ensures continuous improvements.  
                 Improves services to employers and promotes work-based  
               training - matching employers with skilled individuals by  
               promoting the use of industry and sector partnerships. 
                 Promotes the use of Registered Apprenticeship programs  
               which has proven successful at providing workers with  
               career pathways and opportunities to earn while they learn.  

                 Streamlines and strengthens the roles of Workforce  
               Development Boards - both state and local - to ensure  
               programs are coordinated, complementary and consistent  
               across the state. 

          2.  Need for this bill?

            The new WIOA law recognizes the need for change and  
            reauthorizes the nation's employment, training, adult  
            education, and vocational rehabilitation programs created  
            under WIA. WIOA improves connections to employment and  
            training opportunities that lead to economic prosperity for  
            workers and their families. The U.S. Department of Labor, in  
            coordination with the U.S. Departments of Education and Health  
            and Human Services, are working to ensure that states and  
            local areas, other grantees, and stakeholders are prepared for  
            implementation of WIOA by providing technical assistance,  
            tools, and resources to its website, webinars, and virtual and  
            in-person discussions. The U.S. Department of Labor has also  
            recommended that state's review their existing laws to  
            identify areas that may conflict with WIOA and develop plans  
            and strategies to resolve these conflicts.  

            This bill is needed to ensure that the new statutes and  







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            guidelines for our states workforce development plan includes  
            a focus on assisting individuals with barriers to employment,  
            including low-skill, low-wage workers, the long-term  
            unemployed, and members of single-parent households, achieve  
            economic security and upward mobility by implementing policies  
            that encourage the attainment of marketable skills relevant to  
            current labor market trends.

          3.  Proponent Arguments  :
            
            According to the author, historically, throughout our country,  
            workforce development service providers have focused their  
            efforts on easier to place unemployed persons and overlooked  
            those with barriers to employment, like low-skilled employees,  
            who lack economic security.  SB 342 ensures that, at the state  
            level, we are prioritizing workforce development in hard to  
            serve communities for people with barriers to employment,  
            including low-skill, low-wage workers, the long-term  
            unemployed, and members of single-parent households. The  
            federal WIOA makes it clear the importance of ensuring  
            workforce development providers prioritize finding jobs for  
            those with barriers to employment. This bill will help workers  
            escape poverty by asking the California Workforce Investment  
            Board to implement policies that encourage the attainment of  
            marketable skills relevant to current labor market trends  
            which will lead to economic security and upward mobility.

          4.  Opponent Arguments  :

            None received. 

          5.  Prior or Related Legislation  :

            SB 45 (Mendoza) of 2015: Pending in the Assembly 
            SB 45 is one of two being sponsored by the CA Labor and  
            Workforce Development Agency and the CA Workforce Investment  
            Board that will make the necessary changes to existing law for  
            the implementation of the federal WIOA in our State.  Among  
            other things, this bill requires the state, in conformity with  
            WIOA and after consultation with local boards and chief  
            elected officials, to identify planning regions and require  
            the locals to prepare regional workforce development plans. 

            AB 1270 (Garcia) of 2015:  Pending in the Assembly Com. on J.,  
            E.D., & E. 







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            AB 1270 is the second bill sponsored by the CA Labor and  
            Workforce Development Agency and the California Workforce  
            Investment Board that will make the necessary changes to  
            existing law for the implementation of WIOA. Specifically, AB  
            1270 would update statutory references to the Workforce  
            Investment Act of 1998 to instead refer to the Workforce  
            Innovation and Opportunity Act of 2014 and makes related  
            conforming changes. 
          
            SB 118 (Lieu) of 2013: Chaptered  
            SB 118 required the California Workforce Investment Board  
            (CWIB) to incorporate          specific principles into the  
            state's strategic plan that 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 future workforce needs.  
            SB 118 was a re-introduction of SB 1401 from 2012. 


          SUPPORT
          
          American Association of University Women
          California Budget Project
          California Hospital Association
          California Labor Federation, AFL-CIO
          California Manufacturing and Technology Association
          California Workforce Association
          Career Ladders Project for the California Community Colleges
          Los Angeles Area Chamber of Commerce
          National Council of La Raza
          Policy Link
          San Francisco Jewish Vocational Services
          State Building and Construction Trades of California
          

          OPPOSITION
          
          None received

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