LEGISLATIVE UPDATE

The following proposed bills have a potential impact on, or may be of special interest to the ETP program. Brief summaries are provided below.

ETP staff will update this page periodically. However, for the most recent versions, or to track the status of these bills, please visit the Official California Legislative Information website.

SB 820, STATE GOVERNMENT (COMMITTEE ON GOVERNMENTAL ORGANIZATION)

Existing law and the Governor's Reorganization Plan No. 2 of 2012 (GRP 2), effective on July 3, 2012, and operative on July 1, 2013, assigns and reorganizes the functions of state government among executive officers and agencies by creating the following general agency structure in the executive branch: Business, Consumer Services, and Housing; Government Operations; Corrections and Rehabilitation; Labor and Workforce Development; California Health and Human Services; Environmental Protection; Natural Resources; and Transportation. In creating the new general agency structure, existing law and the GRP 2, abolished certain existing state entities and offices, including, among others, the Business, Transportation and Housing Agency and its secretary.

As amended April 15, this bill would amend the Unemployment Insurance Code by replacing references to the Business, Transportation and Housing Agency and its Secretary with the Governor's Office of Business and Economic Development and its Director. Specifically, this bill would designate the Director of the Governor's Office of Business and Economic Development, or his or her designee, to serve on the panel as an ex officio, voting member (rather than the Secretary of the Business, Transportation, and Housing Agency, or his or her designee).

AB 114, PROPOSITION 39: IMPLEMENTATION (THE CALIFORNIA CLEAN ENERGY JOBS ACT)

The California Clean Energy Jobs Act, an initiative approved by the voters at the November 6, 2012, statewide general election as Proposition 39, made changes to corporate income taxes and, except as specified, provides for the transfer of $550,000,000 annually from the General Fund to the Clean Energy Job Creation Fund for 5 fiscal years beginning with the 2013-14 fiscal year. Moneys in the Clean Energy Job Creation Fund are available, upon appropriation by the Legislature, for purposes of funding eligible projects that create jobs in California, improving energy efficiency and expanding clean energy generation. Existing law, among other things, provides for allocation of available funds to job training and workforce development.

As amended April 23, this bill would require the Labor and Workforce Development Agency, in consultation with specified entities, to develop and implement the Clean Energy Jobs and Workforce Development Program to award grants to eligible entities for projects to provide job training on energy efficiency and clean energy projects that are located in economically disadvantaged communities with a higher unemployment rate than the state unemployment rate.

The bill would require the agency, after the first year of program implementation, to review and assess the effectiveness of the program, identify problems and barriers to achieving the workforce development goals of the act, and develop solutions to improve program performance. The bill would, for the five fiscal years beginning with the 2013-14 fiscal year, continuously appropriate to the agency an unspecified sum of money from the fund for the purposes of implementing the program, thereby making an appropriation.

SB 118, UNEMPLOYMENT INSURANCE: EDUCATION AND WORKFORCE INVESTMENT SYSTEMS.

Existing law provides that the California Workforce Investment Board is responsible for assisting the Governor in the development, oversight, and continuous improvement of California's workforce investment system. Existing law further provides that the board must assist the Governor in targeting resources to specified high-wage industry sectors and providing guidance to ensure that services reflect the needs of those sectors.

As introduced on January 17, this bill would provide that the board is also responsible for assisting the Governor in the alignment of the education and workforce investment systems to the needs of the 21st century workforce and the promotion and development of a well-educated and highly skilled 21st century economy and workforce. This bill would require the board to 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. Additionally, this bill encourages state and local workforce investment boards to collaborate with other public and private institutions, including the Employment Training Panel, to better align resources across workforce education and training service delivery systems and build a well articulated workforce investment system.

SB 594, CALIFORNIA CAREER PATHWAYS INVESTMENT

As amended April 18, this bill would require each school district and community district to create a Career Pathways Investment Trust Fund, the funds in which would be used for the purposes of financing program and administrative costs relating to the operation of career pathways programs.

This bill further states, the Career Pathways Investment Trust Fund may accept revenues from any source, including one-time property tax revenues resulting from the dissolution of the assets of the former redevelopment agencies, proceeds from the sale of social impact bonds, other tax revenues, grants, loans, and contributions of employment training funds made available through the employment training panel or workforce investment boards.

AB 1178, PUPIL INSTRUCTION: CALIFORNIA PROMISE NEIGHBORHOOD INITIATIVE.

Existing law establishes a system of public elementary and secondary schools in this state, and authorizes local educational agencies throughout the state to operate schools and provide instruction to pupils in kindergarten and grades 1 to 12, inclusive. Existing law also establishes a system of postsecondary education in the state that consists of 4 segments: the University of California, the California State University, the California Community Colleges, and independent institutions of higher education.

As amended April 23, this bill would express findings and declarations of the Legislature about the educational, cultural, and health needs of California's most distressed communities. The bill would establish the California Promise Neighborhood Initiative to develop a system of 40 California promise neighborhoods throughout the state to support children's development. The bill would require the State Department of Education to designate the 40 California promise neighborhoods by January 1, 2016, and would specify that the promise neighborhoods would be selected from areas that voluntarily apply for that designation.

This bill further states that the Department of Education shall work with the Employment Development Department, the California Workforce Investment Board, and the Employment Training Panel to ensure that, to the extent feasible, eligible applicants residing within California promise neighborhoods receive bonus points, additional recognition, or weighted consideration for receiving funding for competitive grants.

AB 412, INTERNATIONAL TRADE.

As amended April 17, this bill would require the director of GO-Biz to submit to the legislature, on or before October 1, 2015, a study on the potential roles of the state in global markets. This bill would require the study to include, among other information, recommendations for priorities of state activities and funding related to international trade and investment, and an analysis of recommendations made in a similar study published in 2007. This bill would require the director to update the study on or before October 1, 2018, and every five years thereafter.

During the course of the study, the director shall consult with other agencies, boards, and commissions that have statutory responsibilities related to workforce development, infrastructure, business, and international trade and investment, including, but not limited to, the California Transportation Commission, the California Community Colleges, the University of California, the California State University, the Workforce Investment Board, the Employment Training Panel, and the California Energy Commission.

SB 431, ECONOMIC DEVELOPMENT: CALIFORNIA SOCIOECONOMIC DEVELOPMENT PODS PROGRAM.

As amended April 2, this bill would establish the California Socioeconomic Development Pods Program within the Governor's Office of Business and Economic Development to encourage the use of social innovative financing within blighted areas in the state. This bill would also create the Pod Accelerator Fund, a continuously appropriated fund, within the State Treasury, to receive moneys collected and received by the Governor's Office of Business and Economic Development for the California Socioeconomic Development Pod Program from gifts, bequests, or donations.

Furthermore, the California Socioeconomic Development Pods Program shall coordinate activities with the Employment Training Panel, the California Workforce Investment Board, the Office of the Chancellor of the California Community Colleges, the University of California, the California State University, and other state economic and workforce development programs.

AB 1268, UNEMPLOYMENT INSURANCE: VETERANS' UNEMPLOYMENT: VETERANS WORKFORCE DEVELOPMENT AND EMPLOYMENT OFFICE.

Existing law authorizes the Employment Development Department within the Labor and Workforce Development Agency to perform various functions and duties with respect to job creation and retention activities. Existing law requires the department to research the needs of veterans throughout the state and develop a profile of veterans' employment and training needs and to develop a statewide plan for the equitable distribution of employment funds for veterans' employment services.

Existing law further requires the department to seek federal funding for these purposes and to submit an annual report to the Legislature, as provided, following any fiscal year in which state funds support the Veterans Employment Training services program. Under existing law, the expense of administration of these programs is paid out of the Unemployment Administration Fund, a continuously appropriated fund.

As introduced February 22, this bill would establish the Veterans Workforce Development and Employment Office within the Labor and Workforce Development Agency for the purpose of coordinating state veterans' workforce development and employment programs and services. The bill would require the office to administer specified state and federal unemployment programs and services for veterans, and would require the office to develop a plan, by May 1, 2014, in collaboration with the department for the transfer of its responsibilities from the department, and to transfer staff from the department to the office according to that plan.

The bill would further require the office to research the needs of veterans throughout the state, develop a profile of veterans' employment and training needs, develop a statewide plan for the equitable distribution of employment funds for veterans' employment services, and develop a strategy and program for identifying employers and small businesses interested in hiring veterans and establish the means by which appropriate training and placement may occur. The bill would also require the office to seek federal and other funding for these research and development purposes and to submit an annual report to the Legislature.

AB 29, PROPOSITION 39: IMPLEMENTATION. (THE CALIFORNIA CLEAN ENERGY JOBS ACT)

The California Clean Energy Jobs Act, an initiative approved by the voters at the November 6, 2012, statewide general election as Proposition 39, provides for the transfer of $550,000,000 annually from the General Fund to the Clean Energy Job Creation Fund for five fiscal years beginning with the 2013-14 fiscal year. Moneys in the Clean Energy Job Creation Fund are available, upon appropriation by the Legislature, for purposes of funding eligible projects that create jobs in California improving energy efficiency and expanding clean energy generation. Existing law provides for allocation of these funds to public school facilities, university and college facilities, other public buildings and facilities, as well as job training and workforce development, and pubic-private partnerships, for eligible projects.

This bill would provide that, for each fiscal year that revenue is deposited into the Clean Energy Job Creation Fund, up to $152,000,000 would be available, upon appropriation by the Legislature, for purposes of the bill, as specified.

AB 39, PROPOSITION 39: IMPLEMENTATION. (THE CALIFORNIA CLEAN ENERGY JOBS ACT)

This bill would require the State Energy Resource Conservation and Development Commission (Energy Commission) to administer grants, loans, or other financial assistance to an eligible institution, defined as a public school providing instruction in kindergarten or grades 1 to 12, inclusive, or a community college, for the purpose of eligible projects that create jobs in California by reducing energy demand and consumption at eligible institutions.

As amended April 24, this bill would require moneys for job training and workforce development to be available from the Job Creation Fund, upon appropriation by the Legislature to the California Workforce Investment Board, for allocation to the California Conservation Corps, Certified Community Conservation Corps, Youth Build, pre-apprenticeship partnerships with state-certified apprenticeship programs, local educational agencies, community benefit organizations, and other existing workforce development programs, as specified, consistent with the requirements of the California Clean Energy Jobs Act.