Amended  IN  Senate  March 25, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1419

Introduced by Senator Caballero

February 21, 2020

An act to amend Section 75 of the Labor Code, relating to workers’ compensation. add Article 6 (commencing with Section 14110) to Chapter 3 of Division 7 of, and to add Section 14221.3 to, the Unemployment Insurance Code, relating to employment.


LEGISLATIVE COUNSEL'S DIGEST


SB 1419, as amended, Caballero. Commission on Health and Safety and Workers’ Compensation. The California Labor Injustice Mitigation and Adjustment Act Initiative.
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 and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. That act requires the establishment of a local workforce development board in each local workforce development area of the state to, among other things, carry out analyses of the economic conditions in the local region.
This bill would create the California Labor Injustice Mitigation and Adjustment (CLIMA) Act Initiative for the purpose of providing services to individuals who have historically faced barriers to employment and whose economic security will be challenged by the implementation of environmental mitigation measures, as specified. The bill would create the CLIMA Account within the Breaking Barriers to Employment Initiative Fund, the moneys in which account would be available, upon appropriation by the Legislature, for the purposes of the initiative, which would be implemented contingent upon the California Workforce Development Board notifying the Department of Finance that a sufficient appropriation has been made. The bill would require the California Workforce Development Board to develop criteria for the selection of grant recipients, including local workforce boards, and would specify the contents of grant applications, mandatory grant elements, and eligible grant activities. The bill would require grantees to provide all necessary information to facilitate grant performance evaluation. The bill would authorize the board to develop policies necessary to ensure that grants awarded from the fund are for activities that are consistent with the intent of the initiative.
Existing law, the California Workforce Innovation and Opportunity Act, requires each local workforce development board to develop and submit to the Governor a comprehensive 4-year local plan that contains various strategic planning elements, including, among other things, a description of the workforce development system in the local area that identifies the programs that are included in that system.
This bill would require the local board, for the purpose of creating a local plan adopted on or after January 1, 2022, to consider the economic impact of the implementation of the Sustainable Groundwater Management Act and other governmental actions taken to restrict groundwater pumping and to limit surface water supplies, and to identify groups of individuals who have historically faced employment barriers and whose employment could be limited or eliminated due to restrictions on access to water supplies. Because the bill would require local agencies to perform additional duties, the bill would impose a state-mandated local program.
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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law establishes in the Department of Industrial Relations the Commission on Health and Safety and Workers’ Compensation and prescribes the membership, appointing entities, and terms of office of the commission. Existing law also provides that an action of the commission is not valid unless agreed to by a majority of the membership and by not less than 2 members representing organized labor and 2 members representing employers.

This bill would make technical, nonsubstantive changes to the latter provision.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) In 2014, California adopted landmark legislation, the Sustainable Groundwater Management Act (SGMA) to sustainably manage groundwater resources.
(b) The SGMA requires local groundwater agencies to bring groundwater use to sustainable levels by 2040.
(c) Farming is the Central Valley’s main economic driver, and, as such, the region depends on reliable water supplies.
(d) The Central Valley region supplies 8 percent of the nation’s agricultural output and produces 25 percent of the nation’s food, including 40 percent of the nation’s fruits and nuts.
(e) The Central Valley region currently experiences high rates of unemployment and pockets of extreme poverty.
(f) Changes in water availability will have a broad impact on agriculture, direct farm jobs, and the overall labor market of the region.
(g) A recent economic study of SGMA and other water supply restrictions by UC Berkeley economists estimated that up to one million acres may be fallowed in the San Joaquin Valley over the next two to three decades as a result of reduced ground and surface water availability.
(h) The farm revenue loss due to this fallowing is estimated to be $7.2 billion per year.
(i) Direct employment losses will total 42,000 jobs on average, and as much as 85,000 when indirect jobs are included.
(j) California needs to support farmworkers and other agricultural workers to withstand the transformation of work in the Central Valley as a result of SGMA and other water management policies.

SEC. 2.

 Article 6 (commencing with Section 14110) is added to Chapter 3 of Division 7 of the Unemployment Insurance Code, to read:
Article  6. California Labor Injustice Mitigation and Adjustment Act Initiative

14110.
 As used in this article:
(a) “California Labor Injustice Mitigation and Adjustment Act” or “CLIMA” or “initiative” means the California Labor Injustice Mitigation and Adjustment Act Initiative established in this article.
(b) “SGMA” means the Sustainable Groundwater Management Act (Part 2.74 (commencing with Section 10720) of Division 6 of the Water Code).

14112.
 (a) All efforts funded under this initiative are intended to supplement and be aligned with the broader workforce and education system in the State of California. The initiative is not intended to duplicate or replicate existing programs, but rather to provide supplemental funding and services to support individuals who may have limited job opportunities, including, but not limited to, the loss of employment, due to environmentally necessary actions taken under the SGMA.
(b) The primary purpose of the initiative is to proactively provide service to individuals who have historically faced barriers to employment, such as farmworkers and other agricultural workers, and whose economic security will be further challenged by the implementation of environmental mitigation measures under the SGMA. These services are intended to assist these individuals enter, participate in, and complete broader workforce preparation, training, and education programs aligned with regional labor market needs. Those who complete these programs should have the skills and competencies necessary to successfully enter the labor market, retain employment, and earn wages that lead to self-sufficiency, and eventually, economic security.

14113.
 (a) Funding for the grant program created by this article shall be subject to appropriation by the Legislature. Implementation of the initiative shall be contingent upon the California Workforce Development Board notifying the Department of Finance that sufficient moneys have been appropriated by the Legislature for this purpose.
(b) The CLIMA Account is hereby created in the Breaking Barriers to Employment Initiative Fund. All moneys in the account shall be available, upon appropriation by the Legislature, to carry out this article in support of the initiative. Subject to approval by the Department of Finance, all moneys appropriated, or those collected or received from gifts, bequests, or donations, shall be deposited in the CLIMA Account in accordance with the terms of the gift or donation from which the moneys are derived, and in accordance with Sections 8647, 11005, 11005.1, and 16302 of the Government Code.

14114.
 (a) The California Workforce Development Board shall develop criteria for the selection of grant awardees which shall require all of the following:
(1) Grant awardees shall be local workforce boards and other public and nonprofit entities designated by the California Workforce Development Board.
(2) Grant awardees shall provide service to eligible populations which shall include individuals who meet both of the following requirements:
(A) They are individuals with employment barriers, as defined in Section 14005.
(B) They are individuals who live within an area designated in a local or regional plan pursuant to Section 14221, as economically impacted by SGMA or other governmental actions to restrict groundwater pumping or to limit surface water supplies.
(3) Grant applications shall be evaluated based upon local needs, as documented in local workforce plans.
(4) Grant awardees shall conduct service programs that are consistent with the purposes of the initiative.
(b) Each application shall, at a minimum, include all of the following:
(1) An explanation of the specific purpose of the grant funds, the number of individuals who will be served, and the services provided to those individuals.
(2) The designation of one or more eligible population groups that will be served by the grant.
(3) Information demonstrating the ability and capacity of the applicant and its local partners to successfully deliver the activities and services proposed in the application.
(4) The designation of a service area, which may include one or more neighborhoods, local jurisdictions, or regions. A grant proposal that proposed to serve clients across one or more workforce development areas shall include a commitment to notify each workforce development board in the proposed service area.
(5) A description of how the grant proposal is designed to complement the work of, and to integrate the individuals being served with, the broader workforce, education, and employment system within the proposed service area.
(c) Mandatory elements of a service program that is eligible to be awarded a grant shall include:
(1) Outreach to potentially eligible individuals from population groups identified in the application.
(2) Individual skill assessments of eligible individuals being served.
(3) Career counseling for eligible individuals regarding occupational choices, skills development, and available career pathways within the region.
(d) Eligible grant activities shall include, but not be limited to, all of the following:
(1) English language improvement training.
(2) Basic skills and adult education.
(3) High school diploma and GED acquisition.
(4) Skills and vocational training that aligns with regional labor market needs identified as part of the California Workforce Innovation and Opportunity Act regional planning process.
(5) Work experience.
(6) On-the-job training.
(7) Stipends for trainees.
(8) Earn and learn training.
(9) Industry certifications.
(10) Preapprenticeship programming offered in a manner that is consistent with the requirements of Section 14230, regardless of whether the preapprenticeship program funding source include California Workforce Innovation and Opportunity Act funds.
(11) Other remedial education and work readiness skills.
(12) Supportive services under the California Workforce Innovation and Opportunity Act.
(13) Wage subsidies.
(14) Job search allowances.
(e) Grantees shall provide all necessary information to facilitate grant performance evaluation. Grant outcomes shall be evaluated using the following criteria:
(1) Ability to provide the services proposed in the grant to the number of individuals specified in the grant, as evidenced by, among other things, whether the grantee completed the work proposed.
(2) Ability of individuals to successfully complete relevant programing funded under the grant as demonstrated by relevant measures directly related to the purpose of the program.
(3) Ability of individuals to transition into or be integrated into the broader workforce and education systems as evidenced by enrollment in relevant programs.
(4) Ability of individuals to succeed in the broader workforce, education system, and labor market. This shall be measured by tracking these individuals using existing relevant performance monitoring systems and metrics used in similar programs after the individuals transition into the broader markets and systems.
(5) The California Workforce Development Board may develop necessary policies to ensure that grants awarded from the initiative fund are used for activities that are consistent with the intent of this article.

SEC. 3.

 Section 14221.3 is added to the Unemployment Insurance Code, to read:

14221.3.
 (a) For the purpose of preparing the local plan pursuant to Section 14221, the local board shall consider the economic impact of the implementation of the Sustainable Groundwater Management Act (Part 2.74 (commencing with Section 10720) of Division 6 of the Water Code) and other government actions taken to restrict groundwater pumping or to limit surface water supplies.
(b) The local plan shall identify groups of individuals who have historically faced employment barriers and whose employment opportunities could be further limited or eliminated due to restrictions on access to water supplies. The local plan should include provisions to assist those individuals in participating in emerging industries.
(c) This section shall apply to local plans adopted on and after January 1, 2022.

SEC. 4.

 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.
SECTION 1.Section 75 of the Labor Code is amended to read:
75.

(a)There is in the department the Commission on Health and Safety and Workers’ Compensation. The commission shall be composed of eight voting members. Four voting members shall represent organized labor, and four voting members shall represent employers. Not more than one employer member shall represent public agencies. Two of the employer and two of the labor members shall be appointed by the Governor. The Senate Committee on Rules and the Speaker of the Assembly shall each appoint one employer and one labor representative. The public employer representative shall be appointed by the Governor. An action of the commission is not valid unless agreed to by a majority of the membership and by not less than two members representing organized labor and two members representing employers.

(b)The commission shall select one of the members representing organized labor to chair the commission during the 1994 calendar year, and thereafter the commission shall alternatively select an employer and organized labor representative to chair the commission for one-year terms.

(c)The initial terms of the members of the commission shall be four years, and they shall hold office until the appointment of a successor. However, the initial terms of one employer and one labor member appointed by the Governor shall expire on December 31, 1995; the initial terms of the members appointed by the Senate Committee on Rules shall expire December 31, 1996; the initial terms of the members appointed by the Speaker of the Assembly shall expire on December 31, 1997; and the initial term of one employer and one labor member appointed by the Governor shall expire on December 31, 1998. Any vacancy shall be filled by appointment to the unexpired term.

(d)The commission shall meet every other month and upon the call of the chair. Meetings shall be open to the public. Members of the commission shall receive one hundred dollars ($100) for each day of their actual attendance at meetings of the commission and other official business of the commission and shall also receive their actual and necessary traveling expenses incurred in the performance of their duty as a member. Payment of per diem and traveling expenses shall be made from the Workers’ Compensation Administration Revolving Fund, when appropriated by the Legislature.