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AB-316 Workforce development.(2017-2018)



Current Version: 04/05/17 - Amended Assembly        


AB316:v97#DOCUMENT

Revised  April 17, 2017
Amended  IN  Assembly  April 05, 2017
Amended  IN  Assembly  March 09, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 316


Introduced by Assembly Members Waldron and Salas
(Coauthors: Assembly Members Cunningham and Flora, Flora, Acosta, Mathis, Quirk-Silva, and Voepel)

February 06, 2017


An act to amend Section 10205 of, to add Section 10218 to, and to add Chapter 6 (commencing with Section 14600) to Division 7 of, the Unemployment Insurance Code, relating to workforce development, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 316, as amended, Waldron. Workforce development.
(1) Existing law establishes the Employment Training Panel within the Employment Development Department, and prescribes the functions and duties of the panel with respect to the development, implementation, and administration of various employment training programs in the state. Existing law requires the panel, among other things, to create and annually update a 3-year plan, fund training projects that best meet the panel’s identified priorities, and solicit proposals and write contracts for the purpose of providing employment training. Existing law sets forth certain requirements for those contracts, including, but not limited to, that a job generated by a contract compensate an employee at a specified percentage of the state hourly wage, and that an eligible participant be employed at a minimum of 90 days by his or her employer.
Existing law requires the panel to submit an annual report to the Legislature that contains summaries of information related to projects operated by the panel.
This bill would require the panel to establish competitive bidding contracts by an employer or a training agency that is able to demonstrate that the project to be funded will solicit proposals and write performance-based contracts to fund projects that expedite and increase the number of persons middle-skill workers employed in an eligible industry. This bill would require projects funded by this program to comply with certain requirements. This bill would authorize the panel to negotiate, on a case-by-case basis, to include specified provisions in a contract with an eligible applicant, including a provision authorizing the panel to waive, negotiate, or adjust the state hourly wage and 90-day requirement for contracts funded. The bill would also require the panel, when preparing the annual report described above to separately identify projects funded by these provisions.
(2) Existing federal law, the federal Workforce Innovation and Opportunity Act, allocates funds to state and local workforce development boards for workforce investment activities. In order to be eligible to receive certain allotments under the act, the governor of each state is required to designate a state workforce development board, and to prepare and submit a state plan to the United States Secretary of Labor, in accordance with certain requirements. A state workforce development board is responsible for assisting the Governor in the development, implementation, and modification of a state plan, as well as other duties relating to workforce development within the state.
Existing law, the California Workforce Innovation and Opportunity Act, establishes the California Workforce Development Board as the body responsible for assisting the Governor in the development, oversight, and continuous improvement of California’s workforce investment system. Under existing administrative law, the board and the Employment Development Department have established the Accelerator Grant Program that funds projects and partnerships to create and prototype innovative strategies that bridge education and workforce gaps for targeted populations, and initial implementation of promising models and practices in workforce system service delivery infrastructure.
This bill would require the California Workforce Development Board to create a grant program, known as the Employment Revitalization Initiative, that would award grants to applicants for a project that assists eligible targeted populations and meets other requirements. The bill would require the board to establish criteria for the selection of grant recipients, and require that applicants include certain provisions in applications. The bill would also require the board to evaluate how the grants address the needs of eligible targeted populations, and, by January 1, 2019, and annually thereafter, post a report on the board’s Internet Web site. This bill would create the Employment Revitalization Fund within the State Treasury as a continuously appropriated fund.
This bill would also create the Workforce Accelerator Account, a continuously appropriated fund, as an account within the Employment Revitalization Fund to be used by the board to supplement, but not supplant, the existing Accelerator Grant Program, as specified.
(3) This bill would appropriate $310,000,000 from the General Fund for purposes of this bill in accordance with a specified schedule.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 10205 of the Unemployment Insurance Code is amended to read:

10205.
 The panel shall do all of the following:
(a) Establish a three-year plan that shall be updated annually, based on the demand of employers for trained workers, changes in the state’s economy and labor markets, and continuous reviews of the effectiveness of panel training contracts. The updated plan shall be submitted to the Governor and the Legislature not later than January 1 of each year. In carrying out this section, the panel shall review information in the following areas:
(1) Labor market information, including the state-local labor market information program in the Employment Development Department and other relevant regional or statewide initiatives and collaboratives.
(2) Evaluations of the effectiveness of training as measured by increased security of employment for workers and benefits to the California economy.
(3) The demand for training by industry, type of training, and size of employer.
(4) Changes in skills necessary to perform jobs, including changes in basic literacy skills.
(5) Changes in the demographics of the labor force and the population entering the labor market.
(6) Proposed expenditures by other agencies of federal Workforce Investment Act funds and other state and federal training and vocational education funds on eligible participants.
(b) Maintain a system to continuously monitor economic and other data required under this plan. If this data changes significantly during the life of the plan, the plan shall be amended by the panel. Each plan shall include all of the following:
(1) The panel’s objectives with respect to the criteria and priorities specified in Section 10200 and the distribution of funds between new-hire training and retraining.
(2) The identification of specific industries, production and quality control techniques, and regions of the state where employment training funds would most benefit the state’s economy and plans to encourage training in these areas, including specific standards and a system for expedited review of proposals that meet the standards.
(3) A system for expedited review of proposals that are substantially similar with respect to employer needs, training curriculum, duration of training, and costs of training, in order to encourage the development of proposals that meet the needs identified in paragraph (2).
(4) The panel’s goals, operational objectives, and strategies to meet the needs of small businesses, including, but not limited to, those small businesses with 100 or fewer employees. These strategies proposed by the panel may include, but not be limited to, pilot demonstration projects designed to identify potential barriers that small businesses may experience in accessing panel programs and workforce training resources, including barriers that may exist within small businesses.
(5) The research objectives of the panel that contribute to the effectiveness of this chapter in benefiting the economy of the state as a whole.
(6) A priority list of skills or occupations that are in such short supply that employers are choosing to not locate or expand their businesses in the state or are importing labor in response to these skills shortages.
(7) A review of the panel’s efforts to coordinate with the California Workforce Investment Board and local boards to achieve an effective and coordinated approach in the delivery of the state’s workforce resources.
(A) The panel will consider specific strategies to achieve this goal that include the development of initiatives to engage local workforce investment boards in enhancing the utilization of panel training resources by companies in priority sectors, special populations, and in geographically underserved areas of the state.
(B) Various approaches to foster greater program integration between workforce investment boards and the panel will also be considered, which may include marketing agreements, expanded technical assistance, modification of program regulations and policy, and expanded use of multiple employer contracts.
(c) Solicit proposals and write contracts on the basis of proposals made directly to it. Contracts for the purpose of providing employment training may be written with any of the following:
(1) An employer or group of employers.
(2) A training agency.
(3) A local workforce investment board with the approval of the appropriate local elected officials in the local workforce investment area.
(4) A grant recipient or administrative entity selected pursuant to the federal Workforce Investment Act of 1998, with the approval of the local workforce investment board and the appropriate local elected officials.
These contracts shall be in the form of fixed-fee performance contracts. Notwithstanding any provision of law to the contrary, contracts entered into pursuant to this chapter shall not be subject to competitive bidding procedures. Contracts for training may be written for a period not to exceed 24 months for the purpose of administration by the panel and the contracting employer or any group of employers acting jointly or any training agency for the purpose of providing employment training.
(d) Fund training projects that best meet the priorities identified annually. In doing so, the panel shall seek to facilitate the employment of the maximum number of eligible participants.
(e) Establish minimum standards for the consideration of proposals, which shall include, but not be limited to, evidence of labor market demand, the number of jobs available, the skill requirements for the identified jobs, the projected cost per person trained, hired, and retained in employment, the wages paid successful trainees upon placement, and the curriculum for the training. No proposal shall be considered or approved that proposes training for employment covered by a collective bargaining agreement unless the signatory labor organization agrees in writing.
(f) Ensure the provision of adequate fiscal and accounting controls for, monitoring and auditing of, and other appropriate technical and administrative assistance to, projects funded by this chapter.
(g) Provide for evaluation of projects funded by this chapter. The evaluations shall assess the effectiveness of training previously funded by the panel to improve job security and stability for workers, and benefit participating employers and the state’s economy, and shall compare the wages of trainees in the 12-month period prior to training as well as the 12-month period subsequent to completion of training, as reflected in the department’s unemployment insurance tax records. Individual project evaluations shall contain a summary description of the project, the number of persons entering training, the number of persons completing training, the number of persons employed at the end of the project, the number of persons still employed three months after the end of the project, the wages paid, the total costs of the project, and the total reimbursement received from the Employment Training Fund.
(h) Report annually to the Legislature, by November 30, on projects operating during the previous state fiscal year. These annual reports shall provide separate summaries of all of the following:
(1) Projects completed during the year, including their individual and aggregate performance and cost.
(2) Projects not completed during the year, briefly describing each project and identifying approved contract amounts by contract and for this category as a whole, and identifying any projects in which funds are expected to be disencumbered.
(3) Projects terminated prior to completion and the reasons for the termination.
(4) A description of the amount, type, and effectiveness of literacy training funded by the panel.
(5) Results of complete project evaluations.
(6) A description of pilot projects, and the strategies that were identified through these projects, to increase access by small businesses to panel training contracts.
(7) A listing of training projects that were funded in high unemployment areas and a detailed description of the policies and procedures that were used to designate geographic regions and municipalities as high unemployment areas.
(8) When complying with paragraphs (1) to (3), inclusive, the panel shall separately identify the projects that were funded pursuant to Section 10218, and for each project include all the information described in those paragraphs.
In addition, based upon its experience in administering job training projects, the panel shall include in these reports policy recommendations concerning the impact of job training and the panel’s program on economic development, labor-management relations, employment security, and other related issues.
(i) Conduct ongoing reviews of panel policies with the goal of developing an improved process for developing, funding, and implementing panel contracts as described in this chapter.
(j) Expedite the processing of contracts for firms considering locating or expanding businesses in the state, in accordance with the priorities for employment training programs set forth in subdivision (b) of Section 10200.
(k) Coordinate and consult regularly with business groups and labor organizations, the California Workforce Investment Board, the State Department of Education, the office of the Chancellor of the California Community Colleges, and the Employment Development Department.
(l) Adopt by regulation procedures for the conduct of panel business, including the scheduling and conduct of meetings, the review of proposals, the disclosure of contacts between panel members and parties at interest concerning particular proposals, contracts or cases before the panel or its staff, the awarding of contracts, the administration of contracts, and the payment of amounts due to contractors. All decisions by the panel shall be made by resolution of the panel and any adverse decision shall include a statement of the reason for the decision.
(m) Adopt regulations and procedures providing reasonable confidentiality for the proprietary information of employers seeking training funds from the panel if the public disclosure of that information would result in an unfair competitive disadvantage to the employer supplying the information. The panel may not withhold information from the public regarding its operations, procedures, and decisions that would otherwise be subject to disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).
(n) Review and comment on the budget and performance of any program, project, or activity funded by the panel utilizing funds collected pursuant to Section 976.6.

SECTION 1.SEC. 2.

 Section 10218 is added to the Unemployment Insurance Code, to read:

10218.
 (a) The panel shall establish a competitive performance contracts program solicit proposals and write performance-based contracts to fund projects by an employer, a training agency, or a nonprofit organization that is able to demonstrate that the project to be funded will that expedite and increase the number of persons middle-skill workers employed in an eligible industry.
(b) The panel shall give priority to projects for the training of workers in a region that is in a high unemployment area, or a region that is facing workforce shortages. area. For purposes of this subdivision, “high unemployment area” has the same meaning as that term is defined in Section 4429 of Title 22 of the California Code of Regulations.
(c) In awarding contracts pursuant to this section, the panel shall comply with all requirements for a contract imposed by this chapter, but may negotiate any of the following terms of a proposed contract with an eligible applicant on a case-by-case basis:
(1) Notwithstanding paragraph (2) of subdivision (c) of Section 10201, on On a case-by-case basis the panel may waive, negotiate, or adjust the requirement that an eligible participant is required to be employed have continued employment with his or her employer for 90 consecutive days by his or her employer. following training. The panel shall take into consideration whether market, industry industry, or other conditions limit the applicant’s ability to retain the employee for 90 consecutive days following the completion of training.
(2) The panel may waive the minimum wage requirements of subdivision (f) of Section 10201 if the panel finds that the post-retention wage of each trainee who has completed training and the required training period exceeds his or her wage before and during training. This determination shall be made on a case-by-case basis to ensure that post-training improvements in earnings are sufficient to warrant the investment of public funds.
(3) Notwithstanding paragraph (e) of Section 10209, on a case-by-case basis, the panel may negotiate and authorize up-front payments to an eligible nonprofit applicant, not to exceed 25 percent of the executed contract, to ensure that nonprofit organizations are not dissuaded from participating in this program.
(4) In addition to any employer described in subdivision (b) of Section 10201, an “eligible employer” for purposes of this section also includes a public entity, as defined in paragraph (1) of subdivision (b) of Section 605, or a nonprofit organization that qualifies for tax-exempt status under Section 501(c)(3) of the federal Internal Revenue Code.
(d) For purposes of this section, the following terms have the following meanings:
(1) “Eligible industry” means any industry that employs individuals in middle skill jobs, including, but not limited to, the following industries that are critical to the state’s economy:
(A) Manufacturing.
(B) Allied health care.
(C) Goods movement and transportation logistics.
(D) Information technology services.
(E) Biotechnology and life sciences.
(F) Multimedia/entertainment.
(G) Agriculture.
(H) Green/clean technology.
(2) “Middle skill job” means any job that requires a certificate, an associate’s degree, or an industry-recognized credential that is less than a bachelor’s degree but more than a high school diploma and facilitates success with workforce outcomes, including, but not limited to, the following:
(A) Medical assistants.
(B) Financial and investment planners.
(C) Licensed vocational nurses.
(D) Agricultural mechanics.
(E) Lab animal technicians.
(F) Calibration technicians.
(G) Quality process analysts.
(H) Robotics and automation technology.
(I) Certified nursing assistant. assistants.
(J) Telecommunication cabling.
(K) Computer operating systems.

SEC. 2.SEC. 3.

 Chapter 6 (commencing with Section 14600) is added to Division 7 of the Unemployment Insurance Code, to read:
CHAPTER  6. Employment Revitalization Initiative

14600.
 For purposes of this chapter, the following terms have the following meanings:
(a) “Board” means the California Workforce Development Board.
(b) “Applicant” means a person person, community-based organization, local workforce development board, or nonprofit organization that help individuals who face multiple barriers to employment, who submits an application for a grant to the agency in accordance with Section 14603.
(c) “Initiative” means the Employment Revitalization Initiative established by this chapter.
(d) “Local workforce board” means a local workforce development board established pursuant to Article 1 (commencing with Section 14200) of Chapter 4 of Division 7 of the Unemployment Insurance Code.

14601.
 (a) The Employment Revitalization Initiative is established within the board for the purpose of assisting individuals who have multiple barriers to employment to receive the remedial education and work readiness skills that will help them to successfully participate in training, apprenticeship, or other training opportunities that enhance skill development that will lead to self-sufficiency and economic stability. The initiative shall link local workforce boards with community-based organizations to help people with multiple barriers to employment access training, apprenticeship, or other employment opportunities.
(b) The board shall adopt regulations, pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), to implement this division. chapter. In adopting the regulations, and in implementing the initiative, the board shall consult with public and private stakeholders, including nonprofit community-based organizations, local workforce boards, local governments, and other entities that serve individuals who face barriers to employment.

14602.
 The board shall develop criteria for the selection of grant recipients that meet all of the following:
(a) Grants shall be awarded on a competitive basis. The program initiative shall include provisions to ensure a range of targeted populations and geographic locations receive training opportunities.
(b) Priority shall be given to projects that include English language improvement training, basic skills and adult education, high school diploma and GED acquisition, skills and vocational training, work experience, on-the-job training, earn-as-you-learn, earn-as-you-learn apprenticeships, industry certifications, mentoring, and other remedial education and work readiness skills.
(c) Establish criteria for eligible activities to be funded by grant funds. Eligible activities shall include, but are not limited to, the programs described in subdivision (b).
(d) A method to evaluate how grant projects adequately serve the needs of eligible targeted populations.

14603.
 In order to be eligible to receive a grant under the initiative, an applicant must submit an application that contains all of the following provisions:
(a) An explanation of the specific purpose of the grant funds, the roles and responsibilities of each of the local workforce boards and community-based organizations, the oversight and monitoring process, the term of the grant, and a discussion of the general methodology and training methods proposed to be used.
(b) A description of how the project will serve eligible targeted populations.

(a)

(c) A requirement that on at least an annual basis and upon completion of the grant period, grant recipients shall report to the board regarding their use of funds, and workforce training outcomes, and any other information required by the board. outcomes.

(b)

(d) A requirement that grant recipients agree to provide information to the board that the board deems necessary to meet reporting requirements.

(c)An explanation of the specific purpose of the grant funds, the roles and responsibilities of each of the local workforce boards and community-based organizations, the oversight and monitoring process, the term of the grant, and a discussion of the general methodology and training methods proposed to be used.

(d)A description of how the project will serve eligible targeted populations.

14604.
 Eligible targeted populations for the initiative grant proposals include:
(a) Youths who are disconnected from the education system or employment.
(b) Women seeking training or education to move into nontraditional fields of employment.
(c) Displaced workers and long-term unemployed.
(d) Unskilled or underskilled, low-earning workers.
(e) Persons for whom English is not their primary language.
(f) Economically disadvantaged persons.
(g) CalWORKs participants.
(h) Persons who are incarcerated and soon to be released, or formerly incarcerated.
(i) Armed services veterans.
(j) Native Americans.
(k) Migrants or seasonal farmworkers.
(l) Persons with developmental or other disabilities.

14604.5.
 The board shall provide outreach and technical assistance to eligible applicants as one means for ensuring grants are awarded to qualifying projects in a range of targeted populations and geographic locations.

14605.
 The Employment Revitalization Fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, the fund shall be continuously appropriated to the board for the purposes described in this division. chapter. Notwithstanding Section 16304 of the Government Code, funds appropriated to the fund shall be available to the board for five fiscal years beginning with the 2017–2018 201718 fiscal year.

14606.
 (a) The board shall evaluate how grants awarded under the initiative address the needs of eligible targeted populations.
(b) By January 1, 2019, and by January 1 of each year thereafter, the board shall post a report on its Internet Web site that provides a status report on the implementation of the initiative and aggregates the information provided by the grant recipients, including, but not limited to, the overall progress and success of the grant programs. awards.

14607.
 (a) The Workforce Accelerator Account is hereby created as an account within the Employment Revitalization Fund. Notwithstanding Section 13340 of the Government Code, the fund account shall be continuously appropriated to the board. Notwithstanding Section 16304 of the Government Code, funds appropriated to the fund account shall be available to the board for five fiscal years beginning with the 2017–2018 2017–18 fiscal year.
(b) The board shall use funds appropriated to the Workforce Accelerator Account to supplement, and not supplant, the existing Accelerator Grant Program under the federal Workforce Innovation and Opportunity Act (128 Stat. 1428; 29 U.S.C. Sec. 3101 et seq.).
(c) In awarding funds appropriated to the Workforce Accelerator Account, the board shall give priority to applicants that focus on improving the persistence rates of community college students that face multiple obstacles to completing an associate’s degree, vocational certificate, or progress necessary to matriculate to the California State University or University of California systems.

SEC. 3.SEC. 4.

 The sum of three hundred ten million dollars ($310,000,000) is hereby appropriated from the General Fund according to the following schedule:
(a) The sum of two hundred million dollars ($200,000,000) is transferred to the Employment Revitalization Fund established in Section 14605 of the Unemployment Insurance Code.
(b) The sum of one hundred million dollars ($100,000,000) is appropriated to the Employment Training Panel to be used to carry out the competitive bidding performance-based training contracts established by Section 10218 of the Unemployment Insurance Code. Notwithstanding Section 16304 of the Government Code, funds allocated to the panel shall be available to the panel for five fiscal years beginning with the 2017–2018 2017–18 fiscal year.
(c) The sum of ten million dollars ($10,000,000) is transferred to the Workforce Accelerator Account established in Section 14607 of the Unemployment Insurance Code.
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REVISIONS:
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