Existing law establishes rules of the road for the operation of a vehicle on state highways and roads. Existing law requires motor vehicles being driven outside of a business or residence district in a caravan or motorcade, whether or not towing other vehicles, to be operated so as to allow sufficient space and in no event less than 100 feet between each vehicle or combination of vehicles so as to enable any other vehicle to overtake or pass.

Existing law authorizes the Department of Transportation, in coordination with the Department of the California Highway Patrol, to conduct testing of technologies that enable drivers to safely operate motor vehicles with less than 100 feet between each vehicle or combination of vehicles and would exempt motor vehicles participating in this testing from the above-described rule. Existing law requires the department to report its findings from the testing to the Legislature on or before July 1, 2017. Existing law repeals these provisions on January 1, 2018.

This bill would postpone that repeal until January 1, 2020, and would require the department to submit an updated report to the Legislature on or before July 1, 2019. The bill would prohibit a person from operating a motor vehicle participating in this testing unless the person holds a valid drivers license of the appropriate class for the participating vehicle.

Existing law establishes rules of the road for the operation of a vehicle on state highways and roads. Existing law requires motor vehicles being driven outside of a business or residence district in a caravan or motorcade, whether or not towing other vehicles, to be operated so as to allow sufficient space and in no event less than 100 feet between each vehicle or combination of vehicles so as to enable any other vehicle to overtake or pass.

Existing law authorizes the Department of Transportation, in coordination with the Department of the California Highway Patrol, to conduct testing of technologies that enable drivers to safely operate motor vehicles with less than 100 feet between each vehicle or combination of vehicles and would exempt motor vehicles participating in this testing from the above-described rule. Existing law requires the department to report its findings from the testing to the Legislature on or before July 1, 2017. Existing law repeals these provisions on January 1, 2018.

This bill would postpone that repeal until January 1, 2020, and would require the department to submit an updated report to the Legislature on or before July 1, 2019. The bill would prohibit a person from operating a motor vehicle participating in this testing unless the person holds a valid drivers license of the appropriate class for the participating vehicle.

Existing law establishes rules of the road for the operation of a vehicle on state highways and roads. Existing law requires motor vehicles being driven outside of a business or residence district in a caravan or motorcade, whether or not towing other vehicles, to be operated so as to allow sufficient space and in no event less than 100 feet between each vehicle or combination of vehicles so as to enable any other vehicle to overtake or pass.

Existing law authorizes the Department of Transportation, in coordination with the Department of the California Highway Patrol, to conduct testing of technologies that enable drivers to safely operate motor vehicles with less than 100 feet between each vehicle or combination of vehicles and would exempt motor vehicles participating in this testing from the above-described rule. Existing law requires the department to report its findings from the testing to the Legislature on or before July 1, 2017. Existing law repeals these provisions on January 1, 2018.

This bill would extend that repeal date to January 1, 2020, and would require the department to submit an updated report to the Legislature on or before July 1, 2019. The bill would prohibit a person from operating a motor vehicle participating in this testing unless the person holds a valid drivers license of the appropriate class for the participating vehicle.

Existing law establishes the California Community Colleges Economic and Workforce Development Program. Existing law provides for the awarding of grants for this program, and provides that this program shall only be implemented during fiscal years for which funds are appropriated for these purposes. Existing law repeals the program on January 1, 2018.

This bill would make the program inoperative on July 1, 2023, and make the repeal date for the program January 1, 2024, thereby extending the provisions governing the program until those dates.

CONCURRENCE IN SENATE AMENDMENTS

CSA2 Bill Id:AB 669

Author:(Berman)

As Amended Ver:July 19, 2017

Majority vote

(vote not relevant)

Trans.

Original Committee Reference: HIGHER ED.

SUMMARY: Extends authority for an existing vehicle platooning technology testing program from January 1, 2018, until January 1, 2020. Specifically, this bill:

1. Extends the existing authorization for the Department of Transportation (Caltrans), in coordination with the California Highway Patrol (CHP), to conduct testing of technologies that enable drivers to safely operate motor vehicles with less than 100 feet between each vehicle or combination of vehicles until January 1, 2020, and requires Caltrans to submit an updated report on the testing to the Legislature on or before July 1, 2019.
2. Prohibits a person from operating a motor vehicle participating in the testing unless the person holds a valid driver's license of the appropriate class for the participating vehicle.

EXISTING LAW:

1. Requires motor vehicles being driven outside a business or residence district in a caravan or motorcade to be operated as to allow sufficient space of at least 100 feet between each vehicle or combination of vehicles so as to enable any other vehicle to overtake or pass.
2. Authorizes Caltrans, in coordination with CHP, to conduct testing of technologies that enable drivers to safely operate motor vehicles with less than 100 feet between each vehicle or combination of vehicles until January 1, 2018.
3. Provides that Caltrans may only use motor vehicles and streets and highways that CHP authorizes for the technology testing.
4. Requires Caltrans to report its findings from the testing to the Legislature by July 1, 2017.

AS PASSED BY THE ASSEMBLY, this bill extended the California Community Colleges Economic and Workforce Development Program sunset date from January 1, 2018 to July 1, 2023.

FISCAL EFFECT: According to the Senate Appropriations Committee:

1. Caltrans costs of approximately $600,000 over two years to conduct additional testing.
2. One-time costs to submit an updated report to the Legislature would be minor and absorbable.

COMMENTS: In 2015, the Governor signed SB 719 (Hernández), Chapter 163, Statutes of 2015, which authorized Caltrans to test technologies that enable drivers to operate motor vehicles with less than 100 feet between each vehicle or combination of vehicles, commonly referred to as "truck platooning." SB 719 allowed Caltrans to partner with the University of California, Berkeley and other technology partners to take advantage of a Federal Highway Administration grant to fund research to develop and test a cooperative adaptive cruise control (CACC) system for heavy trucks.

SB 719 required Caltrans to report on the results of its testing to the Legislature by July 1, 2017. In its report, Caltrans recommends extending the authorization to test platooning technology for another two years, to allow additional development and testing needed to further refine CACC technology. This bill enacts that recommendation.

Analysis Prepared by: Justin Behrens / TRANS. / (916) 319-2093 FN: 0002348

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 669

Author:(Berman)

As Amended Ver:July 19, 2017

Majority vote

Original Committee Reference: TRANS.

SUMMARY: Extends authority for an existing vehicle platooning technology testing program from January 1, 2018, until January 1, 2020.

The Senate amendments delete Assembly version of the bill and instead:

1. Extend the existing authorization for the Department of Transportation (Caltrans), in coordination with the California Highway Patrol (CHP), to conduct testing of technologies that enable drivers to safely operate motor vehicles with less than 100 feet between each vehicle or combination of vehicles until January 1, 2020, and requires Caltrans to submit an updated report on the testing to the Legislature on or before July 1, 2019.
2. Prohibits a person from operating a motor vehicle participating in the testing unless the person holds a valid driver’s license of the appropriate class for the participating vehicle.

EXISTING LAW:

1. Requires motor vehicles being driven outside a business or residence district in a caravan or motorcade to be operated as to allow sufficient space of at least 100 feet between each vehicle or combination of vehicles so as to enable any other vehicle to overtake or pass.
2. Authorizes Caltrans, in coordination with CHP, to conduct testing of technologies that enable drivers to safely operate motor vehicles with less than 100 feet between each vehicle or combination of vehicles until January 1, 2018.
3. Provides that Caltrans may only use motor vehicles and streets and highways that CHP authorizes for the technology testing.
4. Requires Caltrans to report its findings from the testing to the Legislature by July 1, 2017.

AS PASSED BY THE ASSEMBLY, this bill extended the California Community Colleges Economic and Workforce Development Program sunset date from January 1, 2018 to July 1, 2023.

FISCAL EFFECT: According to the Senate Appropriations Committee:

1. Caltrans costs of approximately $600,000 over two years to conduct additional testing.
2. One-time costs to submit an updated report to the Legislature would be minor and absorbable.

COMMENTS: In 2015, the Governor signed SB 719 (Hernández), Chapter 163, Statutes of 2015, which authorized Caltrans to test technologies that enable drivers to operate motor vehicles with less than 100 feet between each vehicle or combination of vehicles, commonly referred to as "truck platooning." SB 719 allowed Caltrans to partner with the University of California, Berkeley and other technology partners to take advantage of a Federal Highway Administration grant to fund research to develop and test a cooperative adaptive cruise control (CACC) system for heavy trucks.

SB 719 required Caltrans to report on the results of its testing to the Legislature by July 1, 2017. In its report, Caltrans recommends extending the authorization to test platooning technology for another two years, to allow additional development and testing needed to further refine CACC technology. This bill enacts that recommendation.

Analysis Prepared by: Justin Behrens / TRANS. / (916) 319-2093 FN: 0001835

 THIRD READING  

Bill No: AB 669

Author:

:

Vote:

SENATE TRANS. & HOUSING COMMITTEE: 11-0, 7/11/17

AYES: Beall, Cannella, Allen, Atkins, Gaines, McGuire, Mendoza, Morrell, Roth, Vidak, Wiener

NO VOTE RECORDED: Skinner, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

ASSEMBLY FLOOR: 77-0, 5/11/17 (Consent) - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill extends the repeal date for the State Department of Transportation (Caltrans) to test certain vehicle technologies, as specified.

ANALYSIS:

Existing law:

1. Establishes rules of the road for the operation of a vehicle on state highways and roads.
2. Requires motor vehicles being driven outside of a business or residence district in a caravan or motorcade, whether or not towing other vehicles, to be operated so as to allow sufficient space and in no event less than 100 feet between each vehicle or combination of vehicles so as to enable any other vehicle to overtake or pass.
3. Authorizes the Caltrans, in coordination with the Department of the California Highway Patrol (CHP), to conduct testing of technologies that enable drivers to safely operate motor vehicles with less than 100 feet between each vehicle or combination of vehicles and would exempt motor vehicles participating in this testing from the above-described rule.
4. Requires Caltrans to report its findings from the testing to the Legislature on or before July 1, 2017. Further repeals the abovementioned provisions on January 1, 2018.

This bill:

1. Extends the authorization period for Caltrans to test various vehicle technologies that enable a vehicle to safely operate with less than 100 feet between each vehicle or combination of vehicles from January 1, 2018, to January 1, 2020.
2. Requires the operator of a vehicle participating in the pilot program to hold the appropriate driver’s license class.
3. Requires Caltrans to submit a subsequent report to the Legislature on or before July 1, 2019.

Comments

1. Purpose. According to the author, “AB 669 would allow Caltrans, CHP, and stakeholder partners to continue on-road testing of Driver Assistive Truck Platooning (DATP) technologies by extending the current sunset for testing from January 1, 2018 to January 1, 2020. Doing so will provide two additional years in which Caltrans can continue to build upon the body of knowledge it has obtained to date during testing which, in turn, will provide state policymakers with additional important information about DATP’s promising potential to provide California with important transportation safety, fuel savings, and air emissions benefits. This bill continues California’s tradition of leading in innovative technologies that focus on human benefits like driver safety and reducing emissions.”
2. Platooning. Due to the fact that drivers require time and space to react to changing driving conditions, the present system of driving on roadways requires a tremendous amount of space between vehicles. The amount of space between vehicles increases as the speed of the vehicles increases. For example, a parked car requires approximately 100 square feet of ground space. When the same vehicle is moving at 70 mph, because of the longitudinal space requirements to allow for human reaction time, it requires approximately 5,000 square feet of space on a freeway. This space requirement is even higher for trucks and commands a premium price in an already developed urban environment such as southern California.

Automated Highway Systems and DATP, holds great promise in improving traffic flow on congested roadways and promises dramatic improvements in capacity. DATP is a vehicle-based system that can drive a vehicle automatically. This is done using sensors that determine a vehicle’s lane position and the speed and location of other vehicles. Actuators on the throttle, brake, and steering wheel give the vehicle the necessary commands to safely navigate the vehicle on the roadway. DATP vehicles often also have equipment to communicate with other DATP vehicles. Benefits resulting from DATP may include improved public safety, vehicles operating more efficiently, and vehicles producing lower emissions compared to the traffic flows with conventional vehicles.

1. Pilot program. SB 719 (Chapter 163, Statutes of 2015) authorized Caltrans to conduct a pilot program to study truck platooning. The bill was a result of Caltrans receiving federal funds to research and conduct demonstrations on partially automated trucks in closely spaced operations however Caltrans not having the statutory authority to conduct a pilot program or legally conduct demonstrations on public roads and highways.

The pilot program was in partnership with the University of California at Berkeley, private truck manufacturers, and a number of other stakeholders to study the technical feasibility and benefits of partially automated truck platooning with the end goal of developing a policy framework that will allow for the general use of this technology. Ultimately, the pilot program intended for Caltrans and program partners to focus on two specific research areas: (a) testing truck driver preferences using truck platooning technology in different environments; and, (b) testing energy consumption savings associated with this technology. The $2 million demonstration program was funded primarily through a $1.6 million federal grant coupled with $460,000 from state and local sources

1. Report? SB 719 required Caltrans to prepare and submit a report to the Legislature on or before July 1, 2017, on the demonstration program’s findings. On July 27, 2017, Caltrans released the report with a recommendation that the study be extended until January 2020. 

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee,

• Caltrans costs of approximately $600,000 over two years to conduct additional testing. (Federal Funds or State Highway Account)
• One-time costs to submit an updated report to the Legislature would be minor and absorbable. (State Highway Account)

SUPPORT: (Verified 9/1/17)

California Manufacturers and Technology Association

California Trucking Association

Daimler Trucks North America

Denso International America

Peloton Technology

Silicon Valley Leadership Group

Truck and Engine Manufacturers Association

United Parcel Service

Volvo Group North America

OPPOSITION: (Verified 9/1/17)

None received

ASSEMBLY FLOOR: 77-0, 5/11/17

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Dahle, O'Donnell, Patterson

Prepared by:

9/4/17 13:02:59

**** END ****

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 669 (Berman) - Department of Transportation: motor vehicle technology testing

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 669 would extend, until January 1, 2020, the authority for the Department of Transportation (Caltrans) to conduct testing of “truck platooning” technologies that enable drivers to safely operate vehicles in a caravan with less than 100 feet between each vehicle.

Fiscal Impact:

• Caltrans costs of approximately $600,000 over two years to conduct additional testing. (Federal Funds or State Highway Account)
  
• One-time costs to submit an updated report to the Legislature would be minor and absorbable. (State Highway Account)

Background:

Existing law restricts the driver of a motor vehicle from following another vehicle more closely than is reasonable and prudent, based upon various factors such as speed, traffic, and roadway conditions. Truck drivers must keep their vehicles at a distance of at least 300 feet from the rear of other vehicles, except to pass on a highway with two or more lanes in the same direction. Existing law further specifies that motor vehicles traveling in a caravan or motorcade must be operated to allow sufficient space, and no less than 100 feet between each vehicle, to enable any other vehicle to overtake and pass.

Existing law authorizes Caltrans, in coordination with CHP, to conduct testing of testing of technologies that enable drivers to safely operate motor vehicles with less than 100 feet between each vehicle or combination of vehicles (truck platooning). Testing is limited to vehicles and streets and highways authorized by CHP. Existing law requires Caltrans to report findings from this testing to the Legislature by July 1, 2017, and repeals the authority to test technologies and operate vehicles with less than 100 feet between each vehicle or combination of vehicles on January 1, 2018.

Caltrans, in partnership with UC Berkeley, private truck manufacturers, and others received a federal grant to demonstrate Automated Highway Systems technology to operate partially automated trucks in closely spaced operations, also known as “truck platooning.” This grant funding supports a research project designed to explore the potential for increasing throughput, and reducing fuel consumption and corresponding emissions through the development and testing of a cooperative adaptive cruise control (CACC) system. CACC integrates high-speed communications into heavy trucks, allowing the trucks to communicate with each other and enabling cooperative and coordinated truck movements, while the driver remains in control at all times. Under the testing program, a three-truck platoon has driven over 5,500 miles on the state highway system without incident, as well as 2,500 miles on a test track for fuel consumption experiments. Additional testing will continue throughout the remainder of 2017. Several other related projects that include truck platooning technology testing will require the extension of the existing temporary authority to operate vehicles with less than 100 feet between each vehicle.

Proposed Law:

AB 669 would extend the authority for Caltrans to conduct testing of platooning technologies and the authority for vehicles participating in that testing to be operated with less than 100 feet between each vehicle until January 1, 2020. The bill would also explicitly require drivers to hold a valid driver’s license of the appropriate class for the participating vehicle, and require Caltrans to submit an updated report on the testing program to the Legislature by July 1, 2019.

Related Legislation:

SB 719 (Hernandez), Chap. 163/2015, authorized Caltrans to test “truck platooning” technologies that enable drivers to safely operate vehicles in a caravan with less than 100 feet between each vehicle until January 1, 2018.

Staff Comments:

The current truck platooning research was funded with a $1.64 million federal grant and approximately $460,000 in Caltrans research funds. That testing has advanced the maturity of CACC technology and validated that the operation of vehicles at gaps shorter than the statutory 100 foot minimum confers benefits when under close coordination, including reduced fuel consumption, enhanced safety through coordinated braking, and improved traffic flow stability, among other benefits.

Extending the current statutory authority to test platooning technologies and to operate vehicles with less than the 100 foot minimum vehicle spacing for two more years would require approximately $600,000 in additional funding. Caltrans is currently seeking federal funding to cover those costs. If the federal grant is not approved, the department could potentially use existing research funds for this process, depending on the demand for those funds to be used for other purposes.

-- END --

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2017 - 2018 Regular

Bill No: Hearing Date: July 11, 2017

SUBJECT:

DIGEST: This bill extends the repeal date for the State Department of Transportation (Caltrans) to test certain vehicle technologies, as specified.

ANALYSIS:

Existing law:

1. Establishes rules of the road for the operation of a vehicle on state highways and roads.
2. Requires motor vehicles being driven outside of a business or residence district in a caravan or motorcade, whether or not towing other vehicles, to be operated so as to allow sufficient space and in no event less than 100 feet between each vehicle or combination of vehicles so as to enable any other vehicle to overtake or pass.
3. Authorizes the Caltrans, in coordination with the Department of the California Highway Patrol (CHP), to conduct testing of technologies that enable drivers to safely operate motor vehicles with less than 100 feet between each vehicle or combination of vehicles and would exempt motor vehicles participating in this testing from the above-described rule.
4. Requires the department to report its findings from the testing to the Legislature on or before July 1, 2017. Further repeals the abovementioned provisions on January 1, 2018.

This bill:

1. Extends the authorization period for Caltrans to test various vehicle technologies that enable a vehicle to safely operate with less than 100 feet between each vehicle or combination of vehicles from January 1, 2018 to January 1, 2020.
2. Require Caltrans to submit a subsequent report to the Legislature on or before July 1, 2019.

COMMENTS:

1. Purpose. According to the author, “AB 669 would allow Caltrans, CHP, and stakeholder partners to continue on-road testing of Driver Assistive Truck Platooning (DATP) technologies by extending the current sunset for testing from January 1, 2018 to January 1, 2020. Doing so will provide two additional years in which Caltrans can continue to build upon the body of knowledge it has obtained to date during testing which, in turn, will provide state policymakers with additional important information about DATP’s promising potential to provide California with important transportation safety, fuel savings, and air emissions benefits. This bill continues California’s tradition of leading in innovative technologies that focus on human benefits like driver safety and reducing emissions.”
2. Platooning. Due to the fact that drivers require time and space to react to changing driving conditions, the present system of driving on roadways requires a tremendous amount of space between vehicles. The amount of space between vehicles increases as the speed of the vehicles increases. For example, a parked car requires approximately 100 square feet of ground space. When the same vehicle is moving at 70 mph, because of the longitudinal space requirements to allow for human reaction time, it requires approximately 5,000 square feet of space on a freeway. This space requirement is even higher for trucks and commands a premium price in an already developed urban environment such as southern California.

Automated Highway Systems and driver assistive truck platooning (DATP), holds great promise in improving traffic flow on congested roadways and promises dramatic improvements in capacity. DATP is a vehicle-based system that can drive a vehicle automatically. This is done using sensors that determine a vehicle’s lane position and the speed and location of other vehicles. Actuators on the throttle, brake, and steering wheel give the vehicle the necessary commands to safely navigate the vehicle on the roadway. DATP vehicles often also have equipment to communicate with other DATP vehicles. Benefits resulting from DATP may include improved public safety, vehicles operating more efficiently, and vehicles producing lower emissions compared to the traffic flows with conventional vehicles.

1. Pilot Program. SB 719 (Chapter 163, Statutes of 2015) authorized Caltrans to conduct a pilot program to study truck platooning. The legislation was a result of Caltrans receiving federal funds to research and conduct demonstrations on partially automated trucks in closely spaced operations however Caltrans not having the statutory authority to conduct a pilot program or legally conduct demonstrations on public roads and highways.

The pilot program was in partnership with the University of California at Berkeley, private truck manufacturers, and a number of other stakeholders to study the technical feasibility and benefits of partially automated truck platooning with the end goal of developing a policy framework that will allow for the general use of this technology. Ultimately, the pilot program intended for Caltrans and program partners to focus on two specific research areas: 1) testing truck driver preferences using truck platooning technology in different environments; and, 2) testing energy consumption savings associated with this technology. The $2 million demonstration program was funded primarily through a $1.6 million federal grant coupled with $460,000 from state and local sources

1. Report? SB 719 required Caltrans to prepare and submit a report to the Legislature on or before July 1, 2017 on the demonstration program’s findings. At the time this analysis went to print, Caltrans had not provided a final report to the Legislature on the demonstration program. Furthermore, due to the report not being finalized, staff requested from Caltrans specific information on the demonstration’s testing period to provide in this analysis. At the time this analysis went to print, Caltrans had failed to provide the requested information. The committee may wish to request Caltrans testify at the committee hearing and provide information on the status of the report and information related to the demonstration program.

Related Legislation:

SB 719 (Chapter 163, Statutes of 2015) —authorized the Caltrans to test technologies that involve motor vehicles being operated within less than 100 feet between each vehicle. Required the vehicles and routes used in the testing process to be approved by the California Highway Patrol (CHP). Specified the authorized testing period will end on January 1, 2018.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

POSITIONS: (Communicated to the committee before noon on Wednesday,

July 5, 2017.)

SUPPORT:

California Manufacturers and Technology Association

California Trucking Association

Daimler Trucks North America

Denso International America

Peloton Technology

Silicon Valley Leadership Group

Truck and Engine Manufacturers Association

United Parcel Service

Volvo Group North America

OPPOSITION:

None received.

-- END --

Date of Hearing: May 3, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 669

Author:(Berman) – As Introduced Ver:February 14, 2017

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill extends the California Community Colleges (CCC) Economic and Workforce Development Program (EWDP) sunset date from January 1, 2018 to July 1, 2023.

FISCAL EFFECT:

No additional cost associated with this bill. The Governor’s 2017-18 Proposed State Budget provides $22.9 million ongoing Proposition 98 General Fund to support the EWDP. Existing trailer bill language is identical to this bill.

COMMENTS:

1. Background. Existing law establishes the EWDP, which is set to sunset of January 1, 2018. EWDP is administered through the CCC Chancellor’s office which is required under current law to implement accountability measures and annually report specified information to the Governor and the Legislature. State law requires the CCC Board of Governors to assist economic and workforce regional development centers and consortia to improve linkages and career technical education pathways between high schools and CCCs in a manner that improves the quality of career exploration. CCCs and business partners form consortia to identify regional workforce needs and priorities, provide assistance to small businesses in the region, and train workers. These partnerships enable CCCs to develop curricula that address the training needs of local industry.

The 2016 EWDP Annual Report shows that CCCs play an integral role in helping California build its workforce despite budget cuts and stagnant economic growth. The report noted that during the reporting period, 48,027 students were served by the program, with 59,879 total people trained. An additional 1,628 people were hired by businesses served by EWD, and 19 new products and services were created by California businesses with the support of EWD.

1. Purpose. According to the author, “…by facilitating partnerships through grants, the EWD Program enables the creation of tools to better serve students and workers. However, this valuable program is set to expire on January 1, 2018.”

Analysis Prepared by: Daisy Gonzales / APPR. / (916) 319-2081

Date of Hearing: April 18, 2017

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Jose Medina, Chair

ABPCA Bill Id:AB 669 (

Author:Berman) – As Introduced Ver:February 14, 2017

SUBJECT: Economic development: California Community Colleges Economic and Workforce Development Program

SUMMARY: Extends the California Community Colleges (CCC) Economic and Workforce Development Program (EWDP) sunset date from January 1, 2018 to July 1, 2023.

EXISTING LAW:

1. Establishes the EWDP and specifies the program's mission and goals and an administrative structure for the program (Education Code (EC) Section 88600 et seq) that includes:
2. The California Community Colleges Business Resource Assistance and Innovation Network Trust Fund. (EC Section 88625)
3. Centers and Regional Collaboratives. (EC Section 88630 et seq)
4. The Job Development Incentive Training Program. (EC Section 88640 et seq)
5. EWDP is administered through the CCC Chancellor’s office which is required under current law to implement accountability measures and annually report specified information to the Governor and the Legislature. (Education Code Section 88650 et. seq)
6. Requires the CCC Board of Governors to assist economic and workforce regional development centers and consortia to improve linkages and career technical education (CTE) pathways between high schools and CCCs in a manner that improves the quality of career exploration. (EC Section 88532)

Current federal law, the Workforce Innovation and Opportunity Act (WIOA), is designed to help job seekers access employment, education, training, and support services to succeed in the labor market and to match employers with the skilled workers they need to compete in the global economy.

FISCAL EFFECT: Unknown

COMMENTS: EWDP Background. The California Community Colleges (CCC) system serves 2.1 million students. Existing law establishes economic development as part of the core mission of the CCC system and authorizes the EWD Program, until January 1, 2018.

The purpose of the EWDP is to advance California’s economic growth and global competitiveness through education and services that contribute to continuous workforce improvement, technology deployment, and business development and are consistent with the current needs of the state’s regional economies. CCCs and business partners form consortia to identify regional workforce needs and priorities, provide assistance to small businesses in the region through local Economic and Workforce Development Centers, and train workers. The partnerships enable CCCs to develop curricula that address the training needs of local industry.

Codified in 1991, the EWDP formalized earlier efforts to coordinate statewide technical training and programs for small businesses and economic development. SB 1809 (Polanco), Chapter 1057, Statutes of 1996, further clarified the EWDP's legislative intent, defined regional planning, priority setting and coordination, added accountability and audit requirements, and made economic development and continuous workforce improvement a primary CCC mission.

SB 1402 (Lieu) was approved by the Legislature in 2012, and extended EWDP’s sunset through January 1, 2018. SB 1402 also made several changes to the EWDP, which included:

1. Adding six principles to the program's mission, including collaboration with other institutions, making data driven and evidenced-based funding decisions, and developing strong partnerships with the private sector.
2. Updating the mission of the EWDP to reflect the need to implement sector strategies that align with labor markets
3. Enhancing the role of the program's advisory committee to ensure that funding is responsive to changing local market needs.
4. Specifying minimum program outcome measures to be implemented by the CCC Chancellor's Office.
5. Requiring the Chancellor's Office, by January 1, 2015, to contract for an independent evaluation of the program's effectiveness, the findings of which shall be provided to the Legislature by March 1, 2016.

The legislatively-mandated report required in SB 1402 and conducted by the Legislative Insights Center at California State University, Sacramento, and published in February 2016, found that, “…EWD is an important component of the state’s career technical education, or CTE, program. Using a multi-level delivery and support system and a regional and sector-specific structure, EWD works within the broader CTE-focused effort of [the CCC’s Doing What Matters for Jobs and the Economy initiative], connecting employers with educators to promote alignment of workforce development needs and community college educational offerings. EWD has experienced pains typical of a newly restructured program, such as difficulty with clarity in grantee roles, management of grants, development of a new data system, and program awareness and marketing.”

The 2016 EWDP Annual Report shows that CCCs play an integral role in helping California build its workforce despite budget cuts and stagnant economic growth. The report noted that during the reporting period, 48,027 students were served by the program, with 59,879 total people trained. The report also noted that 1,628 people were hired by businesses served by EWD, and 19 new products and services created by businesses across California with the support of EWD services.

Need for this Bill. According to the author, “…by facilitating partnerships through grants, the EWD Program enables the creation of tools to better serve students and workers. However, this valuable program is set to expire on January 1, 2018.”

AB 669 would extend the program until July 1, 2023. The sunset date would match the fiscal year to better align the program with the budget. This bill would ensure that the EWD Program continues to help provide future economic stability for students while providing the skilled workforce necessary to meet California’s needs.

REGISTERED SUPPORT / OPPOSITION:

Support

California Chamber of Commerce

California Hospital Association

California Manufacturers and Technology Association

Opposition

None on file

Analysis Prepared by: Kevin J. Powers / HIGHER ED. / (916) 319-3960