BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 342|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 


          Bill No:  SB 342
          Author:   Jackson (D)
          Introduced:2/23/15  
          Vote:     21  

           SENATE LABOR & IND. REL. COMMITTEE:  5-0, 4/22/15
           AYES:  Mendoza, Stone, Jackson, Leno, Mitchell

          SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SUBJECT:   California Workforce Investment Board:  
                     responsibilities


          SOURCE:    Author


          DIGEST:  This bill requires the California Workforce Investment  
          Board (CWIB) 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.

          ANALYSIS:   

          Existing law:

          1)Provides, under the former federal Workforce Investment Act of  
            1998 (WIA), for activities and programs for job training and  
            employment investment in which states can participate,  
            including work incentive and employment training outreach  








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            programs. 

          2)Establishes the CWIB and charged it 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.  

          3)Requires the CWIB, in collaboration with specified state and  
            local partners, and the local workforce investment boards  
            (LWIBs) to develop a strategic workforce plan to address the  
            state's economic, demographic, and workplace needs. 

          4)Provides that the federal Workforce Innovation and Opportunity  
            Act (WIOA), signed into law on July 22, 2014, replaces the  
            WIA.  Among other things, the new federal WIOA is designed to  
            help job seekers access employment, education, training, and  
            support services to succeed in the labor market and to match  
            employers with the skilled workers they need to compete in the  
            global economy. 
           
          This bill requires the CWIB 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.

          Background
          
          Under federal law, WIA funds are distributed to the states based  
          on formulas that consider unemployment rates and other economic  
          and demographic factors.  California and its 49 LWIBs receive  
          WIA formula funding from the U.S. Department of Labor through  
          three revenue streams - Adult, Youth, and Dislocated Workers.   
          Under federal law, 85% of Adult and Youth formula funds, and 60%  
          of Dislocated Worker formula funds are distributed to LWIBs.   
          Fifteen percent of Adult, Youth, and Dislocated Worker formula  
          funds (15% discretionary funds) are allocated to the state for a  
          variety of discretionary uses. 

          The CWIB is charged with developing a unified, strategic  
          planning process to coordinate various education, training, and  
          employment programs into an integrated workforce development  







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          system that supports economic development.  As such, the CWIB  
          has adopted Sector Strategies as the statewide framework for  
          workforce development, and is working closely with the Economic  
          Strategy Panel, other state agencies and departments and its 49  
          LWIBs to support the emergence of effective statewide and  
          regionally driven sector initiatives.


          Federal 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  
          WIA.  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: 

           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. 








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           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. 


          The WIOA provisions take effect on July 1, 2015, the first full  
          program year after enactment.  However, the WIOA state unified  
          and local plans and the WIOA performance accountability  
          provisions don't take effect until July 1, 2016.  The U.S.  
          Department of Labor will issue further guidance on the  
          timeframes for implementation of WIOA.
          
          Prior and Related Legislation

          SB 45 (Mendoza, 2015) is one of two bills being sponsored by the  
          California Labor and Workforce Development Agency and the CWIB  
          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.  SB 45 is  
          pending in the Assembly. 

          AB 1270 (Garcia, 2015) is the second bill sponsored by the  
          California Labor and Workforce Development Agency and the CWIB  
          that will make the necessary changes to existing law for the  
          implementation of WIOA. Specifically, AB 1270 updates statutory  
          references to the WIA to instead refer to the WIOA and makes  
          related conforming changes.  AB 1270 is pending in the Assembly.  


          SB 118 (Lieu, Chapter 562, Statutes of 2013) required the 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 (Lieu) from 2012. 








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          SB 1401 (Lieu, 2012) would have required that the CWIB assist  
          the Governor in targeting resources to specified industry  
          clusters that provide economic security and leverage state and  
          federal funds to ensure that resources are invested in  
          activities that meet the needs of specified industry sectors and  
          advance the education and employment of students and workers so  
          they can meet the specified needs of the state, its regional  
          economies, and leading industry sectors.  SB 1401 died in the  
          Assembly Appropriations Committee.

          SB 698 (Lieu, Chapter 497, Statutes of 2011) required the  
          Governor to establish, through the CWIB, standards for  
          certification of high-performance LWIBs, in accordance with  
          specified criteria.  The bill also required the Governor and the  
          Legislature, in consultation with the CWIB, to reserve specified  
          federal discretionary funds for high-performing LWIBs.
          
          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified4/22/15)


          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 Council of California


          OPPOSITION:   (Verified 4/22/15)


          None received









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          ARGUMENTS IN SUPPORT:     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 CWIB 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.


          Prepared by:Alma Perez / L. & I.R. / (916) 651-1556
          5/6/15 17:02:24


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