Today's Law As Amended


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SB-755 Workforce development: training-related job placement: reporting.(2021-2022)



As Amends the Law Today


SECTION 1.
 The Legislature finds and declares all of the following:
(a) The COVID-19 pandemic has accelerated and caused the state unemployment level to remain at historical highs.
(b) The 45 local workforce development boards in California play an integral role in assisting unemployed Californians obtain job employment and upskill.
(c) Federal support through the Workforce Innovation and Opportunity Act (WIOA) is the primary funding source for the California Workforce Development Board (CWDB) and provides great flexibility in the development of specialized work training programs that identify and serve a divergent population.
(d) Workforce investment programs are required to be data driven and evidenced based.
(e) According to the CWDB Report for Program Year 2019, “Results Achieved Under the Workforce Innovation and Opportunity Act (WIOA),” workforce development training programs provided service to 44,112 participants in the fiscal year covering July 1, 2019, to June 30, 2020. Of these participants, 5,060 achieved a credential and 6,209 achieved measurable skill gains.
(f) Developing and continuously improving CWDB training programs includes, but is not limited to, determining the extent to which participants who have achieved a credential by participating in a training program are placed in employment in the same field of training.
(g) It is essential that workers and jobseekers have, to the extent feasible, timely analysis on the success of programs to better enable them to make decisions on which program to pursue. This analysis is also beneficial to the state so it knows which programs to fund.
(h) It is the intent of the Legislature to provide the Legislature and public with consolidated metrics for the number of individuals who participate in certificate or job training programs and who are subsequently employed in a related field or industry.

SEC. 2.

 Section 14017.1 is added to the Unemployment Insurance Code, to read:

14017.1.
 (a) To ensure that job training services investments are linked to regional labor market demand and provide opportunities for upward mobility, the board and the Employment Development Department shall work collaboratively to measure and report on training-related job placement outcomes for individuals receiving job training services provided through the workforce system, including all job training services funded by Title I of the Workforce Innovation and Opportunities Act and through grants administered by the board, regardless of the source of the moneys.
(b) For purposes of measuring training-related job placement outcomes, gathering data to report, and otherwise fulfilling subdivision (a), the board and the employment Development Department shall work collaboratively to do all of the following:
(1) Provide binding policy direction, to the extent possible, to local workforce development boards and grantees of board-administered grants on the collection and reporting of industry and occupation-specific data for all persons who enroll in job training services, including through the use, to the extent possible, of case management and performance reporting systems deployed for state and federal data collection and reporting.
(2) To the extent permissible, develop and implement a plan to collect and match relevant employee occupational data from employers using the unemployment insurance tax data collection infrastructure used to secure existing wage and employment data for persons who enroll in job training services. The board and the Employment Development Department shall report to the Legislature, no later than July 1, 2022, and in compliance with Section 9795 of the Government Code, on the means and timeline by which it will collect relevant occupational data from employers.
(3) Develop and implement a plan to measure the second- and fourth-quarter earnings of a person, who is enrolled in a job training service, prior to the person’s enrollment in that job training service for purposes of measuring the person’s increase in earnings following their participation in and exit from that job training service.
(4) Develop and implement a means to measure wage and employment outcomes for a person following that person’s participation in a job training service during the second, fourth, eighth, and twelfth quarters following participation in and exit from the job training service for purposes of measuring the person’s increase in earnings over time.
(5) Calculate, by region, industry, occupation, and job training service provider, the wages, wage gains, employment rates, and training-related job placement rates at the second, fourth, eighth, and twelfth quarters following a person’s participation in and exit from a job training service.
(6) Calculate, by region, industry, occupation, and job training service provider, the rate of persons who participated in a job training service and who became employed at a wage at or above a living wage for the region. This calculation shall take into account the cost of living in the regional labor market where the person was trained or lives. The employment rate calculation shall be calculated at the second, fourth, eighth, and twelfth quarters following a person’s participation in and exit from a job training service.
(7) Calculate program completion, credential attainment, and skills gains rates by job training service provider, industry, occupation, and region.
(8) Determine, by region, industry, occupation, and job training service provider, whether participation in a job training service, completion of a job training service, credential attainment, and skills gains have an empirically verifiable impact on assisting persons in achieving employment, training-related job placement, wages, and wage gain that places those persons at or above a living wage for the region. This determination shall take into account the cost of living in the regional labor market where the person was trained or lives.
(c) (1) For purposes of fulfilling the reporting requirement in subdivision (a), the board and the Employment Development Department shall summarize and provide, no later than July 1, 2023, an initial report of their findings, using data gathered pursuant to subdivision (b), to the Senate Committee on Business, Professions and Economic Development, Assembly Committee on Business and Professions, Senate Select Committee on Career Technology and the New Economy, Assembly Select Committee on Career Technical Education and Building a 21st Century Workforce, Senate Committee on Education, Assembly Committee on Education, Senate Committee on Labor, Public Employment and Retirement, and Assembly Committee on Labor and Employment. The report shall not include any personally identifiable information.
(2) Following the initial report in paragraph (1), the board and Employment Development Department shall annually update and include their findings in the report required to be submitted to the Legislature by subdivision (c) of Section 14211.
(d) The board and the Employment Development Department shall work with local workforce development boards to develop and implement a means of notifying, prior to their enrollment in a job training service, a person seeking to enroll in those services of the board’s and Employment Development Department’s findings on the efficacy of those services. Those findings shall be disaggregated by region, job training services provider, industry, and occupation.
(e) For purposes of this section, both of the following definitions shall apply:
(1) “Job training services” has the same meaning as “training services,” as that term is defined in Section 3174(c)(3)(D) of Title 29 of the United States Code and the corresponding sections of the Code of Federal Regulations, and as that term is expanded on in paragraph (3) of subdivision (a) of Section 14211.
(2) “Local workforce development board” means a local workforce development board formed pursuant to Article 1 (commencing with Section 14200) of Chapter 4.
(3) “Participation in a job training service” shall mean participation in, but not necessarily completion of, the service.
(4) “Training-related job placement” means employment in an occupation or occupations directly related to the occupation or occupations for which the job training curricula is designed.

SEC. 3.

 Section 14201.4 is added to the Unemployment Insurance Code, to read:

14201.4.
 Local workforce development boards shall implement the policy direction provided by the board and Employment Development Department pursuant to paragraph (1) of subdivision (b) of Section 14017.1 and work with the board and department pursuant to subdivision (d) of that section.

SEC. 4.

 Section 14211 of the Unemployment Insurance Code is amended to read:

14211.
 (a) (1) Beginning program year 2012, an amount equal to at least 25 percent of funds available under Title I of the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) provided to local workforce investment boards for adults and dislocated workers shall be spent on workforce training programs. This minimum may be met either by spending 25 percent of those base formula funds on training or by combining a portion of those base formula funds with leveraged funds as specified in subdivision (b).
(2) Beginning program year 2016, an amount equal to at least 30 percent of funds available under Title I of the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) provided to local workforce development boards for adults and dislocated workers shall be spent on workforce training programs. This minimum may be met either by spending 30 percent of those base formula funds on training or by combining a portion of those base formula funds with leveraged funds as specified in subdivision (b).
(3) Except as provided in subdivision (b), expenditures that shall count toward the minimum percentage of funds shall include only training services as defined in Section 3174(c)(3)(D) of Title 29 of the United States Code and the corresponding sections of the Code of Federal Regulations, including all of the following:
(A) Occupational skills training, including training for nontraditional employment.
(B) On-the-job training.
(C) Programs that combine workplace training with related instruction, which may include cooperative education programs.
(D) Training programs operated by the private sector.
(E) Skills upgrading and retraining.
(F) Entrepreneurial training.
(G) Incumbent worker training in accordance with Section 3174(d)(4) of Title 29 of the United States Code.
(H) Transitional jobs in accordance with Section 3174(d)(5) of Title 29 of the United States Code.
(I) Job readiness training provided in combination with any of the services described in subparagraphs (A) to (H), inclusive.
(J) Adult education and literacy activities provided in combination with services described in any of subparagraphs (A) to (G), inclusive.
(K) Customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training.
(b) (1) Local workforce development boards may receive a credit of up to 10 percent of their adult and dislocated worker formula fund base allocations for public education and training funds and private resources from industry and from joint labor-management trusts that are leveraged by a local workforce development board for expenditure on training and supportive services. This credit may be applied toward the minimum training requirements in paragraphs (1) and (2) of subdivision (a).
(A) Leveraged funds that may be applied toward the credit allowed by this subdivision shall only include the following:
(i) Federal Pell Grants established under Title IV of the federal Higher Education Act of 1965 (20 U.S.C. Sec. 1070 et seq.).
(ii) Programs authorized by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128).
(iii) Trade adjustment assistance.
(iv) Department of Labor National Emergency Grants.
(v) Match funds from employers, industry, and industry associations.
(vi) Match funds from joint labor-management trusts.
(vii) Employment training panel grants.
(viii) Supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, but only for those individuals enrolled in training services for occupations in demand by industry, as defined in Section 3174(c)(3)(D) of Title 29 of the United States Code and the corresponding sections of the Code of Federal Regulations. Supportive services may include, but are not limited to, the costs of trainees’ or students’ books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.
(ix) Temporary Assistance for Needy Families (TANF) funds spent on supportive services as defined by the federal Workforce Innovation and Opportunity Act of 2014 (Public Law 113-128) and the corresponding sections of the Code of Federal Regulations, for TANF enrolled individuals coenrolled in and receiving training services for occupations in demand by industry through the federal Workforce Innovation and Opportunity Act of 2014. Supportive services may include, but are not limited to, the costs of trainees’ or students’ books, safety and lab equipment, tools and any payment of costs permitted under the rules of the federal Workforce Innovation and Opportunity Act of 2014 and corresponding regulations pertaining to supportive services expenditures, including the rule that these supportive services costs are necessary for the individual to participate in training.
(x) Temporary Assistance for Needy Families (TANF) funds spent on transitional and subsidized employment for TANF enrolled individuals coenrolled in and receiving training services through the federal Workforce Innovation and Opportunity Act of 2014.
(xi) Any other local, state, or federal funds spent on training or supportive services for individuals enrolled in training, provided the individuals receiving the training are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.
(xii) With the approval of the state board, any other public or private funds source not identified in this subparagraph that is used to provide training or supportive services for individuals who are also enrolled in training provided the individuals receiving the relevant services are enrolled in the federal Workforce Innovation and Opportunity Act of 2014 for performance reporting and tracking purposes.
(B) Credit for leveraged funds shall only be given if the local workforce development board keeps records of all training and supportive services expenditures it chooses to apply to the credit. Training and supportive services expenditures may only be applied to the credit if the relevant training costs can be independently verified by the Employment Development Department and, without exception, training participants must be coenrolled in the federal Workforce Innovation and Opportunity Act of 2014 performance monitoring system.
(2) The use of leveraged funds to partially meet the training requirements specified in paragraphs (1) and (2) of subdivision (a) is the prerogative of a local workforce development board. A local workforce development board shall annually provide data to the Employment Development Department on the amount of leveraged funds used to partially meet the requirements of subdivision (a). This data shall disaggregate and report separately, the amount spent on both training and supportive services. Costs arising from the recordkeeping required to demonstrate compliance with the leveraging requirements of this subdivision are the responsibility of the local board.
(c) (1) At the end of each program year, the Employment Development Department shall calculate for each local workforce development board whether the local workforce development board met the expenditure requirements of this section.
(2) The Employment Development Department shall provide to each local workforce development board its individual calculations with respect to the expenditure requirements of this section.
(3) The Employment Development Department shall report annually to the Governor, the Legislature, and the California Workforce Development Board, on or before November 30, regarding the training and supportive services expenditures made by local workforce development boards pursuant to the expenditure requirements of this section.
(4) Consistent with the definitions and regulations of the federal Workforce Innovation and Opportunity Act of 2014, the Employment Development Department shall specify which expenditures qualify as training and supportive services expenditures. The annual report shall specify the total amount of federal funding provided to the state and to each of the local workforce development areas for the adult and dislocated persons programs and the amount of these federal Workforce Innovation and Opportunity Act of 2014 funds expended for training services.
(5) Consistent with calculations required by paragraph (1), the report shall also include, for each local workforce development area, the total amount of leverage funds utilized as training expenditure allowances authorized by subdivision (b) to meet the expenditure requirements of this section. The report shall specify the share of leverage funds that were expended on both training and supportive services for each Local Workforce Development Area.
(6) After July 1, 2023, the annual report provided to the Legislature, as described in paragraph (3), shall include the findings described in subdivision (c) of Section 14017.1.
(6) (7)  A report submitted pursuant to this section shall comply with Section 9795 of the Government Code.
(d) A local workforce development area that does not meet the requirements of subdivision (a) shall submit a corrective action plan to the Employment Development Department that provides reasons for not meeting the requirements and describes actions taken to address the identified expenditure deficiencies. A local workforce development area shall provide a corrective action plan to the Employment Development Department pursuant to this section within 90 days of receiving the calculations described in subdivision (c).
(e) For the purpose of this section, “program year” has the same meaning as provided in Section 667.100 of Title 20 of the Code of Federal Regulations.
SEC. 5.
 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.