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SB-302 Employment Development Department: training expenditures: unemployment insurance: California Workforce Investment Act: local boards.(2007-2008)

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SB302:v94#DOCUMENT

Senate Bill No. 302
CHAPTER 376

An act to amend Sections 14005, 14013, 14020, 14221, and 14230 of, and to add Sections 9600.5 and 9600.7 to, the Unemployment Insurance Code, relating to employment development.

[ Approved by Governor  September 27, 2008. Filed with Secretary of State  September 27, 2008. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 302, Ducheny. Employment Development Department: training expenditures: unemployment insurance: California Workforce Investment Act: local boards.
(1) Existing law authorizes the Employment Development Department to administer various job training and placement programs and services for eligible persons, as provided, and requires that the department, among other things, develop a statewide plan and area plans to coordinate all programs it administers, as specified.
This bill would require the Employment Development Department, in addition to its existing duties and obligations, to report annually to the Governor, the Legislature, and the California Workforce Investment Board, no later than November 30, regarding the training expenditures made by local workforce investment boards in the prior fiscal year, as provided.
(2) The federal Workforce Investment Act of 1998 provides for workforce investment activities, including activities in which states may participate. Existing law contains various programs for job training and employment investment, including work incentive programs, as specified, and authorizes a local workforce investment board to prepare and submit a unified local plan, with respect to welfare-to-work programs, as specified.
This bill would provide further guidance to the California Workforce Investment Board regarding the development of a strategic workforce plan and would include customized training within the definition of training services provided by the local boards. This bill would restructure and revise those provisions relating to local job training services and would also make technical changes to correct erroneous references.
This bill would authorize the Employment Development Department to establish accounting, monitoring, auditing, and reporting procedures and criteria to ensure compliance with the objectives and requirements of the federal Workforce Investment Act.
This bill would also require the department to adopt, amend, or repeal any rules and regulations necessary to implement the California Workforce Investment Act.
This bill, by imposing additional duties on local governments with respect to the implementation of these local programs, would impose a state-mandated local program.
(3) This bill would incorporate additional changes in Section 14013 of the Unemployment Insurance Code proposed by AB 2998, to be operative only if AB 2998 and this bill are both chaptered and become effective on or before January 1, 2009, and this bill is chaptered last.
(4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 9600.5 is added to the Unemployment Insurance Code, to read:

9600.5.
 The director of the Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Investment Board, no later than November 30, regarding the training expenditures made by local workforce investment boards in the prior fiscal year. The department shall specify what expenditures qualify as training expenditures, including, but not limited to, the price paid for classroom instruction or other training opportunities, contracted services for customized training and on-the-job training, development of training materials, and supportive services, including case management, that enable a participant to attend and complete training. The annual report shall specify the total amount of federal funding provided to the state and to each of the local workforce investment areas for the adult and dislocated persons programs and the amount within each program expended for training services.

SEC. 2.

 Section 9600.7 is added to the Unemployment Insurance Code, to read:

9600.7.
 (a) The department shall have the authority to administer the requirements of the federal Workforce Investment Act of 1998 including, but not limited to, establishing accounting, monitoring, auditing, and reporting procedures and criteria in order to ensure state compliance with the objectives and requirements of the federal Workforce Investment Act.
(b) The department shall adopt, amend, or repeal any rules and regulations as necessary to implement Division 7 (commencing with Section 14000).

SEC. 3.

 Section 14005 of the Unemployment Insurance Code is amended to read:

14005.
 For purposes of this division:
(a) “Board” shall mean the California Workforce Investment Board.
(b) “Agency” means the Labor and Workforce Development Agency.
(c) “Workforce Investment Act of 1998” means the federal act enacted as Public Law 105-220.
(d) “Local labor federation” means a central labor council that is an organization of local unions affiliated with the California Labor Federation or a local building and construction trades council affiliated with the State Building and Construction Trades Council.

SEC. 4.

 Section 14013 of the Unemployment Insurance Code is amended to read:

14013.
 The board shall assist the Governor in the following:
(a) Promoting the development of a well-educated and highly skilled workforce.
(b) Developing the State Workforce Investment Plan.
(c) Developing guidelines for the continuous improvement and operation of the workforce investment system, including:
(1) Developing policies to guide the one-stop system.
(2) Providing technical assistance for the continuous improvement of the one-stop system.
(3) Recommending state investments in the one-stop system.
(4) Targeting resources to high-wage industry sectors that are either high-growth sectors or critical to California’s economy, or both.
(d) Developing and continuously improving the statewide workforce investment system as delivered via the one-stop delivery system, including:
(1) Developing linkages in order to assure coordination and nonduplication among workforce programs and activities.
(2) Reviewing local workforce investment plans.
(3) Providing guidance to ensure services reflect the needs of high-wage industry sectors.
(e) Commenting, at least once annually, on the measures taken pursuant to the Carl D. Perkins Vocational and Applied Technology Education Act Amendments of 1990 ( Public Law 101-392; 20 U.S.C. Sec. 2301 et seq.).
(f) Designating local workforce investment areas within the state based on information derived from all of the following:
(1) Consultations with the Governor.
(2) Consultations with the chief local elected officials.
(3) Consideration of comments received through the public comment process, as described in Section 112(b)(9) of the federal Workforce Investment Act of 1998.
(g) Developing and modifying allocation formulas, as necessary, for the distribution of funds for adult employment and training activities, for youth activities to local workforce investment areas, and dislocated worker employment and training activities, as permitted by federal law.
(h) Coordinating the development and continuous improvement of comprehensive state performance measures, including state adjusted levels of performance, to assess the effectiveness of the workforce investment activities in the state.
(i) Preparing the annual report to the United States Secretary of Labor.
(j) Recommending policy for the development of the statewide employment statistics system, including workforce and economic data, as described in Section 15 of Title 29 of the United States Code, and using, to the fullest extent possible, the Employment Development Department’s existing labor market information systems.
(k) Recommending strategies to the Governor for strategic training investments of the Governor’s 15-percent discretionary funds.
(l) Developing and recommending waivers, in conjunction with local workforce investment boards, to the Governor as provided for in the federal Workforce Investment Act of 1998.
(m) Recommending policy to the Governor for the use of the 25-percent rapid response funds, as authorized under the federal Workforce Investment Act of 1998.
(n) Developing an application to the United States Department of Labor for an incentive grant under Section 9273 of Title 20 of the United States Code.

SEC. 4.5.

 Section 14013 of the Unemployment Insurance Code is amended to read:

14013.
 The board shall assist the Governor in the following:
(a) Promoting the development of a well-educated and highly skilled workforce.
(b) Developing the State Workforce Investment Plan.
(c) Developing guidelines for the continuous improvement and operation of the workforce investment system, including:
(1) Developing policies to guide the one-stop system.
(2) Providing technical assistance for the continuous improvement of the one-stop system.
(3) Recommending state investments in the one-stop system.
(4) Targeting resources to high-wage industry sectors that are either high-growth sectors or critical to California’s economy, or both.
(d) Developing and continuously improving the statewide workforce investment system as delivered via the one-stop delivery system, including:
(1) Developing linkages in order to ensure coordination and nonduplication among workforce programs and activities.
(2) Reviewing local workforce investment plans.
(3) Providing guidance to ensure services reflect the needs of high-wage industry sectors.
(e) Commenting, at least once annually, on the measures taken pursuant to the Carl D. Perkins Vocational and Applied Technology Education Act Amendments of 1990 (Public Law 101-392; 20 U.S.C. Sec. 2301 et seq.).
(f) Designating local workforce investment areas within the state based on information derived from all of the following:
(1) Consultations with the Governor.
(2) Consultations with the chief local elected officials.
(3) Consideration of comments received through the public comment process, as described in Section 112(b)(9) of the federal Workforce Investment Act of 1998.
(g) Developing and modifying allocation formulas, as necessary, for the distribution of funds for adult employment and training activities, for youth activities to local workforce investment areas, and dislocated worker employment and training activities, as permitted by federal law.
(h) Coordinating the development and continuous improvement of comprehensive state performance measures, including state adjusted levels of performance, to assess the effectiveness of the workforce investment activities in the state.
(i) Preparing the annual report to the United States Secretary of Labor.
(j) Recommending policy for the development of the statewide employment statistics system, including workforce and economic data, as described in Section 15 of Title 29 of the United States Code, and using, to the fullest extent possible, the Employment Development Department’s existing labor market information systems.
(k) Recommending strategies to the Governor for strategic training investments of the Governor’s 15-percent discretionary funds.
(l) Developing and recommending waivers, in conjunction with local workforce investment boards, to the Governor as provided for in the federal Workforce Investment Act of 1998.
(m) Recommending policy to the Governor for the use of the 25-percent rapid response funds, as authorized under the federal Workforce Investment Act of 1998.
(n) Developing an application to the United States Department of Labor for an incentive grant under Section 9273 of Title 20 of the United States Code.
(o) Recommending policy and providing technical assistance on entrepreneurial training opportunities that could be made available through programs of local workforce investment boards as authorized under the federal Workforce Investment Act of 1998.

SEC. 5.

 Section 14020 of the Unemployment Insurance Code is amended to read:

14020.
 The California Workforce Investment Board, in collaboration with state and local partners, including the Chancellor of the California Community Colleges, the State Department of Education, other appropriate state agencies, and local workforce investment boards, shall develop a strategic workforce plan to serve as a framework for the development of public policy, fiscal investment, and operation of all state labor exchange, workforce education, and training programs to address the state’s economic, demographic, and workforce needs. The strategic workforce plan shall also serve as the framework for the single state plan required by the Workforce Investment Act of 1998. The plan shall be updated at least every five years.

SEC. 6.

 Section 14221 of the Unemployment Insurance Code is amended to read:

14221.
 The local plan shall include all of the following:
(a) A local labor market assessment which contains an identification of local and regional workforce investment needs of key industry sectors, businesses, jobseekers, and incumbent workers in the local area, the current and projected employment opportunities and the job skills necessary to obtain that employment.
(b) A description of the local one-stop delivery system, including all of the following:
(1) A description of how the local board will achieve system integration that will improve services to employers, incumbent workers, and jobseekers, and a description of local funding sources.
(2) A copy of each memorandum of understanding between the local board and each of the one-stop partners concerning the operation of the one-stop delivery system in the local area.
(c) A description of the local levels of performance negotiated with the Governor and chief local elected official to be used to measure the performance of the local area and the performance of the local fiscal agent, eligible providers, and the one-stop delivery system in the local area. Performance standards shall not create disincentives for serving clients for whom it is more difficult to provide service.
(d) A description and assessment of the type and availability of adult and dislocated worker employment and training activities in the local area.
(e) A description of how the local board will provide services to the business community, including, but not limited to, recruitment and staffing services, training, and development, information and resources, and outplacement and business retention services.
(f) A description of how the local board will coordinate workforce investment activities carried out in the local area with statewide rapid response activities, as appropriate.
(g) A description and assessment of the type and availability of youth activities in the local area, including an identification of successful providers of those activities.
(h) A description of the process used by the local board, consistent with Section 14223, to provide an opportunity for public comment, including comment by representatives of businesses, labor organizations, and community-based organizations, and input into the development of the local plan, prior to submission of the plan.
(i) An identification of the entity, as prescribed in the Workforce Investment Act of 1998, responsible for the disbursal of funds under the Workforce Investment Act of 1998.
(j) A description of the competitive process to be used to award the grants and contracts in the local area for activities carried out under the Workforce Investment Act of 1998.

SEC. 7.

 Section 14230 of the Unemployment Insurance Code is amended to read:

14230.
 (a) It is the intent of the Legislature that:
(1) California deliver comprehensive workforce services to jobseekers, students, and employers through a system of one-stop career centers.
(2) Services and resources target high-wage industry sectors with career advancement opportunities.
(3) Universal access to core services shall be available to adult residents regardless of income, education, employment barriers, or other eligibility requirements. Core services shall include, but not be limited to:
(A) Outreach, intake, and orientation to services available through the one-stop delivery system.
(B) Initial assessment of skill levels, aptitudes, abilities, and supportive service needs.
(C) Job search and placement assistance.
(D) Career counseling, where appropriate.
(E) Provision of labor market information.
(F) Provision of program performance and cost information on eligible providers of training services and local area performance measures.
(G) Provision of information on supportive services in the local area.
(H) Provision of information on the filing of claims for unemployment compensation benefits and unemployment compensation disability benefits.
(I) Assistance in establishing eligibility for welfare-to-work activities pursuant to Section 11325.8 of the Welfare and Institutions Code, and financial aid assistance.
(4) State and federally funded workforce education, training, and employment programs shall be integrated in the one-stop delivery system to achieve universal access to the core services described in paragraph (3).
(5) Intensive services shall be available to individuals who have completed at least one core service, have been unable to obtain employment, and who have been determined, by the one-stop operator, as being in need of more intensive services, or who are employed but in need of intensive services to obtain or retain employment to achieve self-sufficiency. Intensive services may include comprehensive and specialized assessments of skill levels and service needs, including learning disability screening, the development of individual employment plans, counseling, career planning, and short-term prevocational services to prepare an individual for training and employment.
(6) Training services shall be made available to individuals who have met the requirements for intensive services, have been unable to obtain or retain employment through these services, and who, after an interview, evaluation, or assessment, are determined to be in need of training, and have selected a program of services directly linked to occupations in demand in the local or regional area. Training services may include:
(A) Occupational skill training including training for nontraditional employment.
(B) On-the-job training.
(C) Programs that combine workplace training with related instruction.
(D) Training programs operated by the private sector.
(E) Skill upgrading and retraining.
(F) Entrepreneurial training.
(G) Job readiness training.
(H) Adult education and literacy activities, including vocational English as a second language, provided in combination with subparagraphs (A) through (G), inclusive.
(I) Customized training conducted by an employer or a group of employers or a labor-management training partnership with a commitment to employ an individual upon completion of the training.
(7) As prescribed in the Workforce Investment Act of 1998, when funds are limited, priority for intensive services and training services shall be given to adult recipients of public assistance and other low-income adults, such as CalWORKs participants.
(b) Each local workforce investment board shall establish at least one full service one-stop career center in the local workforce investment area. Each full service one-stop career center shall have all entities specified in Section 14231 as partners and shall provide jobseekers with integrated employment, education, training, and job search services. Additionally, employers will be provided with access to comprehensive career and labor market information, job placement, economic development information, performance and program information on service providers, and other such services as the businesses in the community may require.
(c) Local boards may also establish affiliated and specialized centers, as defined in the Workforce Investment Act of 1998, which shall act as portals into the larger local one-stop system, but are not required to have all of the partners specified for full service one-stop centers.
(d) Each local board shall develop a policy for identifying individuals who, because of their skills or experience, should be referred immediately to training services. This policy, along with the methods for referral of individuals between the one-stop operators and the one-stop partners for appropriate services and activities, shall be contained in the memorandum of understanding between the local board and the one-stop partners.
(e) In light of California’s diverse population, each one-stop career center should have the capacity to provide the appropriate services to the full range of languages and cultures represented in the community served by the one-stop career center.

SEC. 8.

 Section 4.5 of this bill incorporates amendments to Section 14013 of the Unemployment Insurance Code proposed by both this bill and AB 2998. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2009, (2) each bill amends Section 14013 of the Unemployment Insurance Code, and (3) this bill is enacted after AB 2998, in which case Section 4 of this bill shall not become operative.

SEC. 9.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because this act implements a federal law or regulation and results only in costs mandated by the federal government, within the meaning of Section 17556 of the Government Code.