Bill Text: CA SB734 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State and local workforce investment boards: funding.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2011-10-06 - Chaptered by Secretary of State. Chapter 498, Statutes of 2011. [SB734 Detail]

Download: California-2011-SB734-Amended.html

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BILL NUMBER: SB 734	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  SEPTEMBER 2, 2011
	AMENDED IN ASSEMBLY  AUGUST 26, 2011
	AMENDED IN ASSEMBLY  AUGUST 15, 2011
	AMENDED IN ASSEMBLY  JUNE 27, 2011
	AMENDED IN SENATE  MAY 31, 2011
	AMENDED IN SENATE  APRIL 26, 2011
	AMENDED IN SENATE  APRIL 25, 2011
	AMENDED IN SENATE  APRIL 14, 2011

INTRODUCED BY   Senator  Price   DeSaulnier

    (   Principal coauthor: 
 Assembly Member  Galgiani 
 ) 
    (   Coauthor:   Senator
  Alquist   ) 
    (   Coauthors:  
Assembly Members   Buchanan,  
  Furutani,    
Bonnie Lowenthal,     and Solorio
  ) 

                        FEBRUARY 18, 2011

    An act to amend Section 14838.1 of, and to add Section
14838.6 to, the Government Code, and to amend Section 185033 of the
Public Utilities Code, relating to small business.   An
act to add Section 14211 to the Unemployment Insurance Code, relating
to workforce development. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 734, as amended,  Price   DeSaulnier 
.  High-Speed Rail Authority: small business program:
bidding preferences.   State and local workforce
investment boards: funding.  
   The federal Workforce Investment Act of 1998 provides for
workforce investment activities, including activities in which states
may participate. Existing law establishes the California Workforce
Investment Board (CWIB), and specifies that the CWIB is responsible
for assisting the Governor in the development, oversight, and
continuous improvement of California's workforce investment system.
Existing law contains various programs for job training and
employment investment, including work incentive programs, as
specified, and establishes local workforce investment boards to
perform various duties related to the implementation and coordination
of local workforce investment activities.  
   This bill would require local workforce investment boards to spend
a certain percentage of available federal funds for adults and
dislocated workers on workforce training programs in a manner
consistent with federal law, as prescribed, and would allow the
boards to leverage specified funds to meet the funding requirements,
as specified.  
   Existing law prescribes the duties of the CWIB with regard to the
development and implementation of local workforce investment plans,
as specified.  
   This bill would require a local workforce investment board that
does not meet the expenditure requirements described above to provide
the Employment Development Department with a corrective action plan
regarding those expenditures.  
   Because the bill imposes new duties on local government workforce
investment boards, it 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 no reimbursement shall be made
pursuant to these statutory provisions for costs mandated by the
state pursuant to this act, but would recognize that local agencies
and school districts may pursue any available remedies to seek
reimbursement for these costs.  
   Existing law provides for various programs to encourage the
participation of small businesses, as certified by the Department of
General Services, in state agency contracts, and sets forth the
duties of the Director of General Services and the directors of other
state agencies in this regard.  
   Existing law, the California High-Speed Rail Act, creates the
High-Speed Rail Authority to develop and implement a high-speed rail
system in the state, with specified powers and duties. Existing law,
pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act
for the 21st Century, approved by the voters as Proposition 1A at the
November 4, 2008, general election, provides for the issuance of
$9.95 billion in general obligation bonds for high-speed rail and
related purposes.  
   This bill would require the authority, with the assistance of the
Department of General Services, to prepare a small business,
microbusiness, and disabled veteran business outreach and retention
plan by July 31, 2012, in order to ensure that the authority annually
meets the small business participation goals established by
Executive Order S-02-06.  
   This bill would require the authority to hold a hearing on the
draft plan at least one month before the board meeting at which the
authority intends to act on the proposed plan. The bill would require
that all bidders' conferences convened by the authority include a
presentation of the plan and the state's small business participation
goals.  
   The bill would provide that contracts financed by the authority
with bond proceeds from the Safe, Reliable High-Speed Passenger Train
Bond Act for the 21st Century shall be subject to the provisions of
the Small Business Procurement and Contract Act.  
   Existing law requires the authority to prepare, publish, adopt,
and submit to the Legislature a business plan containing specified
elements beginning January 1, 2012, and every 2 years thereafter.
 
   This bill would require the authority to include in that business
plan or in an addendum a strategy for ensuring the participation of
California-certified small businesses in contracts awarded by the
authority with state funds, or eligible federal funds during all
phases of the project. The bill would also require the authority to
adopt, by July 31, 2012, a small business, microbusiness, and
disabled veteran business enterprise outreach and retention plan.

   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 14211 is added to the 
 Unemployment Insurance Code   , 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 Investment Act of 1998 (Public Law 105-220) 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
Investment Act of 1998 (Public Law 105-220) 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 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) Expenditures that shall count toward the minimum percentage of
funds shall include only training services as defined in Section
2864(d)(4)(D) of Title 29 of the United States Code and Sections
663.300 and 663.508 of Title 20 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) Skill upgrading and retraining.
   (F) Entrepreneurial training.
   (G) Job readiness training.
   (H) Adult education and literacy activities provided in
combination with services described in any of subparagraphs (A) to
(G), inclusive.
   (I) 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 investment 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 investment board for training
services described in paragraph (3) of subdivision (a). 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 Higher
Education Act of 1965 (20 U.S.C. Sec. 1070 et seq.).
   (ii) Programs authorized by the Workforce Investment Act of 1998
(Public Law 105-220).
   (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.
   (B) Credit for leveraged funds shall only be given if the local
workforce investment board keeps records of all training expenditures
it chooses to apply to the credit. Training expenditures may only be
applied to the credit if the relevant training costs can be
independently verified by the Employment Development Department and
training participants must be coenrolled in the federal Workforce
Investment Act of 1998 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 investment board. Costs
arising from the recordkeeping required to demonstrate compliance
with the leveraging requirements of this subdivision are the
responsibility of the board.
   (c) Beginning program year 2012, the Employment Development
Department shall calculate for each local workforce investment board,
within six months after the end of the second program year of the
two-year period of availability for expenditure of federal Workforce
Investment Act of 1998 funds, whether the local workforce investment
board met the requirements of subdivision (a). The Employment
Development Department shall provide to each local workforce
investment board its individual calculations with respect to the
expenditure requirements of subdivision (a).
   (d) A local workforce investment 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 investment
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. 2.    No reimbursement shall be made pursuant to
Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code for costs mandated by the state pursuant to this
act. It is recognized, however, that a local agency or school
district may pursue any remedies to obtain reimbursement available to
it under Part 7 (commencing with Section 17500) and any other
provisions of law.  
  SECTION 1.    The Legislature finds and declares
all of the following:
   (a) In order to keep faith with the promise to promote California
jobs following the passage of the Safe, Reliable High-Speed Passenger
Train Bond Act for the 21st Century, the state should aid, counsel,
assist, and protect, to the maximum extent possible, the interests of
small businesses, including microbusinesses.
   (b) California's microbusinesses are known to bring real diversity
to local economies and the state and deserve a fair share of
contracts awarded for the high-speed rail project. Although
microbusinesses comprise over 80 percent of California's certified
small businesses, and while it was the state's intent to afford
microbusinesses the same opportunities as other small businesses in
competing for state contracts, many microbusiness owners are
disadvantaged when competing against their larger small business
counterparts. Data compiled by the Department of General Services
shows that of the $2.4 billion of contract dollars issued by state
agencies to small businesses and microbusinesses in fiscal year
2008-09, microbusinesses were awarded only 37 percent, or $866
million worth of state contracting. Moreover, of the 103,371
contracts issued during the same timeframe, microbusinesses received
only 42,140, or 41 percent of the contracts issued by the state.
   (c) It is beneficial to the state to promote and facilitate the
fullest possible participation by California workers to train for new
jobs and careers in today's global economy.
   (d) Therefore, it is essential to ensure that a fair proportion of
the total purchases and contracts or subcontracts for property and
services for California's high-speed rail system be placed with these
microbusinesses.  
  SEC. 2.    Section 14838.1 of the Government Code
is amended to read:
   14838.1.  (a) In order to encourage the participation of small
businesses in the construction, alteration, demolition, repair, or
improvement, of the state's infrastructure, as provided in the
infrastructure-related bond acts of 2006 and 2008, as described in
subdivision (c), each state agency awarding contracts financed with
the proceeds of these bonds shall do all of the following:
   (1) Establish a 25 percent small business participation goal in
all contracts it financed with the proceeds of the
infrastructure-related bond acts of 2006 and 2008.
   (2) Advertise, in the California State Contracts Register, all
upcoming opportunities to bid on contracts for projects funded by the
infrastructure-related bond acts of 2006 and 2008, described in
subdivision (c), and include in the advertisement an Internet link to
information for prospective bidders, including, but not limited to,
general bidding procedures and how to properly prepare a bid for
those contracts.
   (3) Provide information to California small businesses regarding
training and technical assistance that is available to assist these
small businesses in understanding and bidding on contracts for
projects funded by the infrastructure-related bond acts of 2006 and
2008, described in subdivision (c).
   (b) For purposes of this section, "small business" has the same
meaning as set forth in subdivision (d) in Section 14837.
   (c) For purposes of this section, all of the following measures
are deemed to be the infrastructure-related bond acts of 2006 and
2008:
   (1) The Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006 (Chapter 12.49 (commencing with Section
8879.20) of Division 1 of the Government Code).
   (2) The Housing and Emergency Shelter Trust Fund Act of 2006 (Part
12 (commencing with Section 53540) of Division 31 of the Health and
Safety Code).
   (3) The Kindergarten-University Public Education Facilities Bond
Act of 2006 (Part 69 (commencing with Section 101000) of the
Education Code).
   (4) The Disaster Preparedness and Flood Prevention Bond Act of
2006 (Chapter 1.699 (commencing with Section 5096.800) of Division 5
of the Public Resources Code).
   (5) The Safe Drinking Water, Water Quality and Supply, Flood
Control, River and Coastal Protection Bond Act of 2006 (Division 43
(commencing with Section 75001) of the Public Resources Code).
   (6) The Safe, Reliable High-Speed Passenger Train Bond Act for the
21st Century (Chapter 20 (commencing with Section 2704) of Division
3 of the Streets and Highways Code).
   (d) For the purposes of this section, "state agency" includes each
agency provided for in Section 12800 and each state entity included
in Section 10335.7 of the Public Contract Code in which the head of
the agency is appointed by the Governor. For the purposes of this
section, "state agency" also includes the High-Speed Rail Authority.
   (e) This section does not require the expenditure of the proceeds
of the sale of the bonds described in this section, except as
permitted by the measure authorizing the issuance of the bond.
   (f) On or before August 1, 2009, and annually thereafter, each
state agency that has awarded any contract financed with the proceeds
of the infrastructure-related bond acts of 2006 and 2008 in the
previous fiscal year shall report to the Director of General Services
statistics comparing the small business and microbusiness
participation dollars for contracts funded by these bonds to the
total contract dollars for contracts funded by these bonds. If an
agency did not meet its participation goal, then the agency shall
include in its report a plan of action to meet its participation goal
during the current fiscal year.  
  SEC. 3.    Section 14838.6 is added to the
Government Code, to read:
   14838.6.  (a) The High-Speed Rail Authority, with the assistance
of the department, shall prepare a small business, microbusiness, and
disabled veteran business enterprise outreach and retention plan in
order to ensure that the authority annually meets the small business
participation goal established by Executive Order S-02-06. In
developing the plan, the authority shall consider examples of
existing small business programs used by other public agencies in
California and the United States.
   (b) The plan required by this section shall be adopted by July 31,
2012. Prior to the adoption of the plan, the authority shall hold a
hearing on the draft plan at a monthly board meeting held at least
one month before the board meeting at which the authority intends to
act on the proposed plan. Both the draft plan and the adopted plan
shall be posted on the homepage of the authority's Internet Web site.
The authority shall include in all its procurement documents a
summary of the plan and a link to the entire plan on its Internet Web
site and shall implement the outreach strategy.
   (c) All bidders' conferences convened by the authority shall
include a presentation of the plan and the state's small business
participation goals. The authority shall request a representative of
the department to attend all bidders' conferences and to answer all
questions regarding this chapter.  
  SEC. 4.    Section 185033 of the Public Utilities
Code is amended to read:
   185033.  (a) The authority shall prepare, publish, adopt, and
submit to the Legislature, not later than January 1, 2012, and every
two years thereafter, a business plan. At least 60 days prior to the
publication of the plan, the authority shall publish a draft business
plan for public review and comment. The draft plan shall also be
submitted to the Senate Committee on Transportation and Housing, the
Assembly Committee on Transportation, the Senate Committee on Budget
and Fiscal Review, and the Assembly Committee on Budget. The business
plan shall identify all of the following: the type of service the
authority anticipates it will develop, such as local, express,
commuter, regional, or interregional; a description of the primary
benefits the system will provide; a forecast of the anticipated
patronage, operating and maintenance costs, and capital costs for the
system; an estimate and description of the total anticipated
federal, state, local, and other funds the authority intends to
access to fund the construction and operation of the system; and the
proposed chronology for the construction of the eligible corridors of
the statewide high-speed train system. The business plan shall also
include a discussion of all reasonably foreseeable risks the project
may encounter, including, but not limited to, risks associated with
the project's finances, patronage, right-of-way acquisition,
environmental clearances, construction, equipment, and technology,
and other risks associated with the project's development. The plan
shall describe the authority's strategies, processes, or other
actions it intends to utilize to manage those risks.
   (b) (1) In addition to the requirements of subdivision (a), the
business plan shall include, but need not be limited to, all of the
following elements:
   (A) Using the most recent patronage forecast for the system,
develop a forecast of the expected patronage and service levels for
the Phase 1 corridor as identified in paragraph (2) of subdivision
(b) of Section 2704.04 of the Streets and Highways Code and by each
segment or combination of segments for which a project level
environmental analysis is being prepared for Phase 1. The forecast
shall assume a high, medium, and low level of patronage and a
realistic operating planning scenario for each level of service.
Alternative fare structures shall be considered when determining the
level of patronage.
   (B) Based on the patronage forecast in subparagraph (A), develop
alternative financial pro formas for the different levels of service,
and identify the operating break-even points for each alternative.
Each pro forma shall assume the terms of subparagraph (J) of
paragraph (2) of subdivision (c) of Section 2704.08 of the Streets
and Highways Code.
   (C) Identify the expected schedule for completing environmental
review, and initiating and completing construction for each segment
of Phase 1.
   (D) Identify the source of federal, state, and local funds
available for the project that will augment funds from the bond act
and the level of confidence for obtaining each type of funding.
   (E) Identify written agreements with public or private entities to
fund components of the high-speed rail system, including stations
and terminals, any impediments to the completion of the system, such
as the inability to gain access to existing railroad rights-of-way.
   (F) Identify alternative public-private development strategies for
the implementation of Phase 1.
   (2) To the extent feasible, the business plan should draw upon
information and material developed according to other requirements,
including, but not limited to, the preappropriation review process
and the preexpenditure review process in the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century pursuant to
Section 2704.08 of the Streets and Highways Code. The authority shall
hold at least one public hearing on the business plan and shall
adopt the plan at a regularly scheduled meeting. When adopting the
plan, the authority shall take into consideration comments from the
public hearing and written comments that it receives in that regard,
and any hearings that the Legislature may hold prior to adoption of
the plan.
   (c) In the business plan to be submitted on January 1, 2012, or as
an addendum to that plan to be submitted on March 1, 2012, the
authority shall include a strategy for ensuring the participation of
California-certified small businesses in contracts awarded by the
authority with state funds, or eligible federal funds, during all
phases of the project.