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 ----------------------------------------------------------------- |Author: |Jackson | |-----------+-----------------------------------------------------| |Version: |February 23, 2015 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Alma Perez-Schwab | | | | ----------------------------------------------------------------- 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. SB 342 (Jackson) Page 2 of ? 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: SB 342 (Jackson) Page 3 of ? 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 SB 342 (Jackson) Page 4 of ? 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. SB 342 (Jackson) Page 5 of ? 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 -- END --