Existing law, the California Workforce Innovation and Opportunity Act, makes programs and services available to individuals with employment barriers and establishes the California Workforce Development Board (board) to assist the Governor in the development, oversight, and continuous improvement of Californias workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. Existing law requires the local chief elected officials in a local workforce development area to form, pursuant to specified guidelines, a local workforce development board to plan and oversee the workforce investment system and further requires the Governor to periodically certify one local board for each local area in the state.

Existing law establishes the Breaking Barriers to Employment Initiative, which establishes a grant program administered by the board to support prescribed workforce preparation, education, and training programs. Existing law requires the grant to be awarded on a competitive basis and the board to develop criteria for the selection of grant recipients, as specified. Existing law requires an application for the grant to be submitted to the board to include, among other things, designation of a lead workforce development board or community-based organization with specified experience and the designation of a service area. Existing law requires that an application that proposes to serve clients across one or more workforce development areas to include a commitment to notify each workforce development board in the proposed service area.

This bill would, instead, specify that the above-described designation is of a partner entity and would allow an exception to that designation requirement, if the lead applicant demonstrates, as prescribed, that securing a partner entity was not possible before the application deadline closed. The bill would prohibit more than 15 percent of all moneys appropriated for the above-described grants from being awarded to a lead applicant that receives the partner entity designation exception. The bill would also delete the above-described requirement to commit to notify each workforce development board in the proposed service area.

Existing law requires the board to evaluate an application based on specified criteria, including, among other things, the ability of individuals to succeed in both the broader workforce and education system and in the labor market once they transition into the broader system. Existing law requires that this be measured by tracking these individuals utilizing the existing performance monitoring systems and metrics governing relevant programs and outcomes once they transition into the broader system.

This bill would, instead, authorize, rather than require, the board to measure the above-described criteria by tracking individuals, as described above.

Existing law requires applicants to provide necessary information to the board to facilitate grant performance evaluation. Existing law requires the board to issue an interim report and a final report on the program, as specified. Existing law requires the reports to include specified information, including, among other things, policy recommendations to provide guidance to the Legislature and the Governor in scaling a permanent program.

This bill would additionally authorize grant applicants to provide the necessary information to the boards designee. The bill would remove the requirement that the board issue an interim report and would remove the requirement that the final report include the above-described recommendations. The bill would additionally require the final report to include demographic data and data on languages spoken by populations served by the grant.

Existing law authorizes the board to develop necessary policies to ensure that grants awarded under the initiative are consistent with the initiatives intent.

This bill would additionally authorize the board to provide technical assistance to grant recipients to carry out the initiative. The bill would authorize the board to provide the technical assistance by contract with a nonprofit organization, as defined, pursuant to prescribed requirements, including, among other things, evaluating proposals through a transparent and competitive process using criteria developed by the board.

Existing law, the California Workforce Innovation and Opportunity Act, makes programs and services available to individuals with employment barriers and establishes the California Workforce Development Board (board) to assist the Governor in the development, oversight, and continuous improvement of Californias workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. Existing law requires the local chief elected officials in a local workforce development area to form, pursuant to specified guidelines, a local workforce development board to plan and oversee the workforce investment system and further requires the Governor to periodically certify one local board for each local area in the state.

Existing law establishes the Breaking Barriers to Employment Initiative, which establishes a grant program administered by the board to support prescribed workforce preparation, education, and training programs. Existing law requires the grant to be awarded on a competitive basis and the board to develop criteria for the selection of grant recipients, as specified. Existing law requires an application for the grant to be submitted to the board to include, among other things, designation of a lead workforce development board or community-based organization with specified experience and the designation of a service area. Existing law requires that an application that proposes to serve clients across one or more workforce development areas to include a commitment to notify each workforce development board in the proposed service area.

This bill would, instead, specify that the above-described designation is of a partner entity and would allow an exception to that designation requirement, if the lead applicant demonstrates, as prescribed, that securing a partner entity was not possible before the application deadline closed. The bill would prohibit more than 15 percent of all moneys appropriated for the above-described grants from being awarded to a lead applicant that receives the partner entity designation exception. The bill would also delete the above-described requirement to commit to notify each workforce development board in the proposed service area.

Existing law requires the board to evaluate an application based on specified criteria, including, among other things, the ability of individuals to succeed in both the broader workforce and education system and in the labor market once they transition into the broader system. Existing law requires that this be measured by tracking these individuals utilizing the existing performance monitoring systems and metrics governing relevant programs and outcomes once they transition into the broader system.

This bill would, instead, authorize, rather than require, the board to measure the above-described criteria by tracking individuals, as described above.

Existing law requires applicants to provide necessary information to the board to facilitate grant performance evaluation. Existing law requires the board to issue an interim report and a final report on the program, as specified. Existing law requires the reports to include specified information, including, among other things, policy recommendations to provide guidance to the Legislature and the Governor in scaling a permanent program.

This bill would additionally authorize grant applicants to provide the necessary information to the boards designee. The bill would remove the requirement that the board issue an interim report and would remove the requirement that the final report include the above-described recommendations. The bill would additionally require the final report to include demographic data and data on languages spoken by populations served by the grant.

Existing law authorizes the board to develop necessary policies to ensure that grants awarded under the initiative are consistent with the initiatives intent.

This bill would additionally authorize the board to provide technical assistance to grant recipients to carry out the initiative. The bill would authorize the board to provide the technical assistance by contract with a nonprofit organization, as defined, pursuant to prescribed requirements, including, among other things, evaluating proposals through a transparent and competitive process using criteria developed by the board.

Existing law, the California Workforce Innovation and Opportunity Act, makes programs and services available to individuals with employment barriers and establishes the California Workforce Development Board (board) to assist the Governor in the development, oversight, and continuous improvement of Californias workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. Existing law requires the local chief elected officials in a local workforce development area to form, pursuant to specified guidelines, a local workforce investment board to plan and oversee the workforce investment system and further requires the Governor to periodically certify one local board for each local area in the state.

Existing law establishes the Breaking Barriers to Employment Initiative, which establishes a grant program administered by the board to support prescribed workforce preparation, education, and training programs. Existing law requires the grant to be awarded on a competitive basis and the board to develop criteria for the selection of grant recipients, as specified. Existing law requires an application for the grant to be submitted to the board to include, among other things, designation of a lead workforce development board or community-based organization with specified experience and the designation of a service area. Existing law requires that an application that proposes to serve clients across one or more workforce development areas to include a commitment to notify each workforce development board in the proposed service area.

This bill would, instead, specify that the above-described designation is of a partner entity and would allow an exception to that designation requirement, if the lead applicant demonstrates, as prescribed, that securing a partner entity was not possible before the application deadline closed. The bill would prohibit more than 15 percent of all moneys appropriated for the above-described grants from being awarded to a lead applicant that receives the partner entity designation exception. The bill would also delete the above-described requirement to commit to notify each workforce development board in the proposed service area.

Existing law requires the board to evaluate an application based on specified criteria, including, among other things, the ability of individuals to succeed in both the broader workforce and education system and in the labor market once they transition into the broader system. Existing law requires that this be measured by tracking these individuals utilizing the existing performance monitoring systems and metrics governing relevant programs and outcomes once they transition into the broader system.

This bill would, instead, authorize, rather than require, the board to measure the above-described criteria by tracking individuals, as described above.

Existing law requires applicants to provide necessary information to the board to facilitate grant performance evaluation. Existing law requires the board to issue an interim report and a final report on the program, as specified. Existing law requires the reports to include specified information, including, among other things, policy recommendations to provide guidance to the Legislature and the Governor in scaling a permanent program.

This bill would additionally authorize grant applicants to provide the necessary information to the boards designee. The bill would remove the requirement that the board issue an interim report and would remove the requirement that the final report include the above-described recommendations. The bill would additionally require the final report to include demographic data and data on languages spoken by populations served by the grant.

Existing law authorizes the board to develop necessary policies to ensure that grants awarded under the initiative are consistent with the initiatives intent.

This bill would additionally authorize the board to provide technical assistance to grant recipients to carry out the initiative. The bill would authorize the board to provide the technical assistance by contract with a nonprofit organization, as defined, pursuant to prescribed requirements, including, among other things, evaluating proposals through a transparent and competitive process using criteria developed by the board.

Existing law, the California Workforce Innovation and Opportunity Act, makes programs and services available to individuals with employment barriers and establishes the California Workforce Development Board (board) to assist the Governor in the development, oversight, and continuous improvement of Californias workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. Existing law requires the local chief elected officials in a local workforce development area to form, pursuant to specified guidelines, a local workforce investment board to plan and oversee the workforce investment system and further requires the Governor to periodically certify one local board for each local area in the state.

Existing law establishes the Breaking Barriers to Employment Initiative, which establishes a grant program administered by the board to support prescribed workforce preparation, education, and training programs. Existing law specifies that the initiatives funding is subject to appropriation by the Legislature, as specified.

This bill would delete the above-described provisions specifying the purpose of the initiative. The bill would instead specify that it is the intent of the Legislature, subject to appropriation, to provide permanent funding to the initiative to ensure its continued operation and effectiveness in addressing racial, ethnic, and social economic disparities in the labor market.

Existing law requires the grant to be awarded on a competitive basis and the board to develop criteria for the selection of grant recipients, as specified. Existing law requires an application for the grant to be submitted to the board to include, among other things, designation of a lead workforce development board or community-based organization with specified experience and the designation of a service area. Existing law requires that an application that proposes to serve clients across one or more workforce development areas to include a commitment to notify each workforce development board in the proposed service area.

This bill would would, instead, specify that the above-described designation is of a partner entity and would allow an exception to that designation requirement, if the lead applicant demonstrates, as prescribed, that securing a partner entity was not possible before the application deadline closed. The bill would prohibit more than 15 percent of all moneys appropriated for the above-described grants from being awarded to a lead applicant that receives the partner entity designation exception. The bill would also delete the above-described requirement to commit to notify each workforce development board in the proposed service area.

Existing law requires the board to evaluate an application based on specified criteria, including, among other things, the ability of individuals to succeed in both the broader workforce and education system and in the labor market once they transition into the broader system. Existing law requires that this be measured by tracking these individuals utilizing the existing performance monitoring systems and metrics governing relevant programs and outcomes once they transition into the broader system.

This bill would, instead, authorize, rather than require, the board to measure the above-described criteria by tracking individuals, as described above.

Existing law requires applicants to provide necessary information to the board to facilitate grant performance evaluation. Existing law requires the board to issue an interim report and a final report on the program, as specified. Existing law requires the reports to include specified information, including, among other things, policy recommendations to provide guidance to the Legislature and the Governor in scaling a permanent program.

This bill would additionally authorize grant applicants to provide the necessary information to the boards designee. The bill would remove the requirement that the board issue an interim report and would remove the requirement that the final report include the above-described recommendations. The bill would additionally require the final report to include demographic data and data on languages spoken by populations served by the grant.

Existing law authorizes the board to develop necessary policies to ensure that grants awarded under the initiative are consistent with the initiatives intent.

This bill would additionally authorize the board to provide technical assistance to grant recipients to carry out the initiative. The bill would authorize the board to provide the technical assistance by contract with a nonprofit organization, as defined, pursuant to prescribed requirements, including, among other things, evaluating proposals through a transparent and competitive process using criteria developed by the board.

Existing law, the California Workforce Innovation and Opportunity Act, makes programs and services available to individuals with employment barriers and establishes the California Workforce Development Board (board) to assist the Governor in the development, oversight, and continuous improvement of Californias workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. Existing law requires the local chief elected officials in a local workforce development area to form, pursuant to specified guidelines, a local workforce investment board to plan and oversee the workforce investment system and further requires the Governor to periodically certify one local board for each local area in the state.

Existing law establishes the Breaking Barriers to Employment Initiative, which establishes a grant program administered by the board to support prescribed workforce preparation, education, and training programs. Existing law specifies that the initiatives funding is subject to appropriation by the Legislature, as specified.

This bill would delete the above-described provisions specifying the purpose of the initiative. The bill would instead specify that it is the intent of the Legislature, subject to appropriation, to provide permanent funding to the initiative to ensure its continued operation and effectiveness in addressing racial, ethnic, and social economic disparities in the labor market.

Existing law requires the grant to be awarded on a competitive basis and the board to develop criteria for the selection of grant recipients, as specified. Existing law requires an application for the grant to be submitted to the board to include, among other things, the designation of a service area. Existing law requires that an application that proposes to serve clients across one or more workforce development areas to include a commitment to notify each workforce development board in the proposed service area.

This bill would delete the above-described requirement to commit to notify each workforce development board in the proposed service area.

Existing law requires the board to evaluate an application based on specified criteria, including, among other things, the ability of individuals to succeed in both the broader workforce and education system and in the labor market once they transition into the broader system. Existing law requires that this be measured by tracking these individuals utilizing the existing performance monitoring systems and metrics governing relevant programs and outcomes once they transition into the broader system.

This bill would, instead, authorize, rather than require, the board to measure the above-described criteria by tracking individuals, as described above.

Existing law requires applicants to provide necessary information to the board to facilitate grant performance evaluation. Existing law requires the board to issue an interim report and a final report on the program, as specified. Existing law requires the reports to include specified information, including, among other things, policy recommendations to provide guidance to the Legislature and the Governor in scaling a permanent program.

This bill would additionally authorize grant applicants to provide the necessary information to the boards designee. The bill would remove the requirement that the board issue an interim report and would remove the requirement that the final report include the above-described recommendations. The bill would additionally require the final report to include demographic data and data on languages spoken by populations served by the grant.

Existing law authorizes the board to develop necessary policies to ensure that grants awarded under the initiative are consistent with the initiatives intent.

This bill would additionally authorize the board to provide technical assistance to grant recipients to carry out the initiative. The bill would authorize the board to provide the technical assistance by contract with a nonprofit organization, as defined, pursuant to prescribed requirements, including, among other things, evaluating proposals through a transparent and competitive process using criteria developed by the board.

 THIRD READING  

Bill No: AB 2873

Author: Garcia (D), et al.

Amended: 5/20/24 in Assembly

Vote: 21

SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 6/19/24

AYES: Smallwood-Cuevas, Wilk, Cortese, Gonzalez, Laird

SENATE APPROPRIATIONS COMMITTEE: 6-0, 8/15/24

AYES: Caballero, Jones, Ashby, Becker, Bradford, Wahab

NO VOTE RECORDED: Seyarto

ASSEMBLY FLOOR: 68-0, 5/22/24 - See last page for vote

SUBJECT: Breaking Barriers to Employment Initiative: grants

SOURCE: California Workforce Association

DIGEST:

This bill makes various changes to the application and reporting requirements for the Breaking Barriers to Employment Initiative (BBEI) under the California Workforce Development Board (CWDB), including: 1) providing an exception to the requirement that applicants partner with a lead workforce development board or experienced community based organization (CBO), 2) reserving at most 15 percent of all BBEI funds for applicants that avail themselves of this exception, and 3) deleting specified CWDB reporting requirements.

ANALYSIS:

Existing federal law:

1. Enacts the Workforce Innovation and Opportunity Act (WIOA) of 2014 in order to help job seekers access employment, education, training, and support services to succeed in the labor market and to match employers with skilled workers. (29 U.S.C. §3101)
2. Requires federally funded workforce programs operating under the auspices of WIOA to measure workforce program outcomes using a variety of metrics, including those pertaining to the wages and employment of program participants who have exited these programs. This is typically done using Unemployment Insurance (UI) quarterly base wage data already secured through the UI tax collection process. (29 U.S.C. §3141)

Existing state law:

1. Establishes the California Workforce Development Board (CWDB), under the Labor Workforce and Development Agency, as the body responsible for assisting the Governor in the development, oversight, and continuous improvement of California’s workforce system, including its alignment to the needs of the economy and the workforce. (Unemployment Insurance Code §14010 et seq.)
2. Enacts the California Workforce Innovation and Opportunity Act to make programs and services available to individuals with employment barriers. (Unemployment Insurance Code §14000 et seq.)
3. Establishes the Breaking Barriers to Employment Grant Initiative (BBEI), administered by the CWDB, which provides individuals with barriers to employment services to help enter, participate in, and complete broader workforce preparation, training, and education programs aligned with regional labor market needs. Program graduates should have the skills and competencies necessary to enter the labor market and earn wages that lead to self-sufficiency and economic security. (Unemployment Insurance Code §14030 et seq.)
4. Specifies that the BBEI will accomplish its goals by providing supplemental funding and services at the local and regional level through collaborative partnerships between community based organizations (CBOs) and local workforce development boards. (Unemployment Insurance Code §14031)
5. Defines “individual with employment barriers” as an individual with any characteristic that substantially limits their ability to obtain employment, as specified, including low-income individuals, ex-offenders, foster youth, and single parents, among others. (Unemployment Insurance Code §14005(j)).
6. Provides that activities eligible to receive BBEI funds include, but are not limited to, all of the following:
7. English language improvement training
8. High school diploma and GED acquisition
9. Skills and vocational training that aligns with regional labor market needs
10. Mental health services (Unemployment Insurance Code §14035)
11. Requires the CWDB to provide outreach to prospective BBEI applicants. (Unemployment Insurance Code §14032(C))
12. Requires an application for a BBEI grant submitted to the CWDB to include, but not be limited to, all of the following:
13. Designation of a lead workforce development board or CBO with experience in providing services, as specified.
14. The designation of one or more targeted populations that will be served by the grant.
15. The designation of a service area, as specified.
16. An explanation of the specific purpose and goals of the grant award, the roles and responsibilities of the lead applicant and partner entities, and a discussion of how funds will be used and success will be measured, the number of individuals who will be served, and the services provided to these individuals. (Unemployment Insurance Code §14032(f))
17. Requires BBEI grants to be awarded on a competitive basis and directs the CWDB to develop criteria for selecting proposals. (Unemployment Insurance Code §14032(d))
18. Requires the CWDB to evaluate grant performance based on specified criteria, including the ability of individuals to succeed once they transition into the broader workforce and education system and labor market. Requires that this be measured by tracking these individuals utilizing existing performance monitoring systems and metrics governing relevant programs and outcomes, as specified. (Unemployment Insurance Code §14033(b))
19. Requires grant applicants to provide necessary information to the CWDB to facilitate grant performance evaluation, and requires the CWDB to issue an interim and final report on the program that contains specified information, including policy recommendations to provide guidance to the Legislature and Governor in scaling a permanent program. (Unemployment Insurance Code §14033 (c) and (e))
20. Authorizes the board to develop necessary policies to ensure that grants awarded under the BBEI are consistent with the initiative’s intent. (Unemployment Insurance Code §14036)

This bill:

1. Provides an exception to the requirement that BBEI grant applicants partner with a lead workforce development board or CBO with experience in providing services as specified, if the applicant demonstrates that securing a partner entity was not possible before the application deadline closed.
2. Requires applicants who avail themselves of the exemption above to satisfy the remaining criteria for the selection of BBEI grant recipients.
3. Provides that no more than 15 percent of the BBEI’s funding shall be awarded to applicants who receive an exemption under the requirement in 1) above.
4. Removes the requirement that a grant proposal that proposes 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. Changes the grant application evaluation criterion that requires applicants to demonstrate the ability of individuals to succeed in both the broader workforce and education system and labor market once they transition into the broader system. This bill authorizes, rather than requires, this to be measured by tracking BBEI participants using existing performance monitoring systems and metrics governing relevant programs and outcomes once the individuals transition into the broader system.
6. Removes the requirement that the CWDB issue an interim report no later than six months following the midpoint of a program funded by the BBEI.
7. Removes the requirement that the CWDB’s final report on a program include policy recommendations to provide guidance to the Legislature and Governor, and instead requires the final report to include demographic data and data on languages spoken by populations served by the grant.
8. Authorizes the board to provide technical assistance to grant recipients to carry out the BBEI, and allows the board to provide such technical assistance through a competitive contract with a nonprofit organization.

Background

Breaking Barriers to Employment Initiative (BBEI). In October 2017, the Legislature approved AB 1111 (Garcia, 2017), which established the BBEI. The purpose of the initiative is to create a grant program that provides individuals with barriers to employment the services they need to enter, participate in, and complete broader workforce preparation, training, and education programs aligned with regional labor market needs. Since its passage, the Legislature has appropriated additional funding for the program, including $15 million in 2018, $30 million in 2021, and $5 million in 2023.

The BBEI supplements existing workforce and education programs by providing services to ensure the success of individuals either preparing to enter or already enrolled in workforce and education programs. Eligible services include English language training, entrepreneurial training, work experience, mentoring, remedial education skills, mental health services, industry certifications, and more. The BBEI primarily serves populations often not eligible for other state and federal programs, for instance, undocumented Californians.

An Evaluation of AB 1111: BBEI Implementation and Early Outcomes Report (2022). As part of the evaluation of AB 1111, the Corporation for a Skilled Workforce and Social Policy Research Associates completed a report on the bill’s implementation for the CWDB^[1]. The report analyzed some of the 26 BBEI grants awarded in December of 2019. The study team found that, overall, grantees accomplished many of their program goals, despite operating during the early days of the COVID-19 pandemic. For the most part, programs exceeded their enrollment goals and served the intended populations. Most participants (84 percent) received basic career services, such as job search assistance and labor market information. Furthermore, about fifty percent of participants were employed about six months after leaving the program and one-third showed measurable skill gains.

The report also identified several ways to improve the BBEI. Specifically, it highlighted the need to strengthen partnerships between CBOs and local workforce development boards, a key goal. The intention behind this is to increase participants’ dual enrollment in BBEI programs and other workforce or education programs. Although applicants are required to identify a lead partner to receive a grant, many did not maintain consistent collaboration. The study team recommended that future rounds of funding define clearer expectations for collaboration between partners and require further communication. Additionally, the team recommended refining and increasing technical assistance efforts to ensure small CBOs can participate.

Comments

This bill would provide an exception to the requirement that BBEI grant applicants partner with a lead workforce development board or experienced CBO, if the applicant demonstrates that securing a partner entity was not possible before the application deadline closed. It would also reserve, at most, 15 percent of the BBEI’s funds for applicants that avail themselves of this exception. The committee understands the concern the author is trying to address and agrees it is important to include small CBOs. However, the committee raises the following questions: Should we be awarding state money to CBOs that are unable to immediately secure a partnership?; Can we provide stronger technical assistance before we alter the partnership requirement?; Is this solution contrary to the recommendations provided in the 2022 report?

It is important to balance efforts to encourage small CBO participation with efforts to ensure state funds are responsibly spent. This bill would also delete the recently added requirement that the CWDB complete an interim report for all grant projects and allow CBOs to develop their own programmatic evaluation outcomes, outside of existing federal ones. Although initial reports find the BBEI funds were well spent, we should remain diligent.

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

According to the Senate Appropriations Committee, The California Workforce Development Board (CWDB) indicates that, at a minimum, it would incur total administrative costs of $386,000 over the implementation period of BBEI. Additionally, CWDB anticipates a one-time cost of $150,000 to provide technical assistance (General Fund).

SUPPORT: (Verified 8/15/24)

California Workforce Association (Source)

Alameda County Workforce Development Board
Alliance for Boys & Men of Color
California Black Power Network
California Edge Coalition
California Immigrant Policy Center
California Opportunity Youth Network
Climb Hire
Compass Family Services
Dreams for Change
El Sol Neighborhood Educational Center
Episcopal Community Services of San Francisco
Fresno Area Workforce Investment Corp.
Golden Sierra Job Training Agency
Goodwill San Francisco Bay
Homeward Bound of Marin
Imperial County Workforce Development Board
International Rescue Committee, Sacramento
Kern County Employer’s Training Resource
Kitchens for Good
Lao Family Community Development, INC.
Love Never Fails
North Coast Opportunities
Novaworks
Npower California
Pacific Asian Consortium in Employment
REDF
Richmond Works
Rise Up Industries
Riverside County Workforce Development Board
Root & Rebound
Saint John's Program for Real Change
San Joaquin County Worknet
Santa Barbara County Workforce Development Board
Selaco Workforce Development Board
Sonoma Family Meal
Southwest California Legislative Council
Stanislaus County Workforce Development
Starting Over, INC.
Teamsters Local 1932
Verdugo Workforce Development Board
Workforce Investment Board of Tulare County

OPPOSITION: (Verified 8/15/24)

None received.

ARGUMENTS IN SUPPORT: According to the sponsors, the California Workforce Association, “In CWA’s conversations with Breaking Barriers coalition partners, it became clear that some smaller prospective grantees were unable to secure a local workforce board as a partner entity. This was largely due to grant timelines and the sheer demand of the program. The proposed change to Breaking Barriers through AB 2873 sets aside 15% of any future allocated funds to prospective grantees who were unable to secure a workforce board partner entity before the deadline but were able to meet all other requirements. Another concern the coalition raised involves what a CBO may consider in their programmatic outcomes. As the statute currently exists, prospective grantees must design their programmatic outcomes in a manner consistent with existing federal frameworks. A key component to Breaking Barriers is that it seeks to target populations who may not be well covered by existing programs. As such, it is difficult for CBOs who are attempting to target these populations to be competitive for the program. The proposed changes in AB 2873 seek to allow prospective grantees to measure their programmatic outcomes in ways that may not line up with existing federal frameworks.”

ASSEMBLY FLOOR: 68-0, 5/22/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Gallagher, Holden, Mathis, Joe Patterson, Luz Rivas, Sanchez, Ta

Prepared by: Emma Bruce / L., P.E. & R. / (916) 651-1556

8/18/24 13:37:20

**** END ****

1. Christian Geckeler, et al., “An Evaluation of AB 1111: BBEI Implementation and Early Outcomes,” CSW and SPR, May 31, 2022, An Evaluation of AB 1111: The Breaking Barriers to Employment Initiative Implementation and Early Outcomes Report ↑

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

AB 2873 (Garcia) - Breaking Barriers to Employment Initiative: grants

Bill Summary:

AB 2873 would make specified changes to the application and reporting requirements for the Breaking Barriers to Employment Initiative (BBEI).

Fiscal Impact:

The California Workforce Development Board (CWDB) indicates that, at a minimum, it would incur total administrative costs of $386,000 over the implementation period of BBEI. Additionally, CWDB anticipates a one-time cost of $150,000 to provide technical assistance (General Fund).

Background:

AB 1111 (E. Garcia, Chapter 824, Statutes of 2017) established BBEI, a grant program administered by CWDB to provide individuals with barriers to employment the services they need to enter, participate in, and complete broader workforce preparation, training, and education programs aligned with regional labor market needs. Grants are provided in partnership with community based organizations (CBOs) and local workforce development boards, and some eligible activities include English language improvement, GED acquisition, earn-and-learn training, industry certifications, and pre-apprenticeship programming. The Budget Act of 2018 appropriated $15 million to BBEI, resulting in 26 grants. BBEI was subsequently appropriated $30 million in 2021-22 and another $5 million in 2023-24.

A recent report identified several ways to improve BBEI. Specifically, it highlighted the need to strengthen partnerships between CBOs and local workforce development boards, a key goal to increase participants’ dual enrollment in BBEI programs and other workforce or education programs. Although applicants are required to identify a lead partner to receive a grant, many did not maintain consistent collaboration. The study team recommended that future rounds of funding define clearer expectations for collaboration between partners and require further communication. Additionally, the team recommended refining and increasing technical assistance efforts to ensure small CBOs, without a pre-existing relationship with a local workforce development board, can participate.

Proposed Law:

This bill would, among other things, do the following:

• Provide an exception to the requirement that BBEI grant applicants partner with a lead workforce development board or CBO with experience in providing services as specified, if the applicant demonstrates that securing a partner entity was not possible before the application deadline closed.
• Provide that no more than 15 percent of BBEI’s funding shall be awarded to applicants who receive an exemption under the above requirement.
• Remove the requirement that a grant proposal that proposes 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.
• Change the grant application evaluation criterion that requires applicants to demonstrate the ability of individuals to succeed in both the broader workforce and education system and labor market once they transition into the broader system. This bill would authorize, rather than require, this to be measured by tracking BBEI participants using existing performance monitoring systems and metrics governing relevant programs and outcomes once the individuals transition into the broader system.
• Remove the requirement that CWDB issue an interim report no later than six months following the midpoint of a program funded by BBEI.
• Remove the requirement that CWDB’s final report on a program include policy recommendations to provide guidance to the Legislature and Governor, and instead require the final report to include demographic data and data on languages spoken by populations served by the grant.
• Authorize CWDB to provide technical assistance to grant recipients to carry out BBEI, and the Board to provide such technical assistance through a competitive contract with a nonprofit organization.

Related Legislation:

AB 628 (E. Garcia, Chapter 323, Statutes of 2021) revised BBEI grant application requirements, evaluation criteria, eligible service populations, and allowable activities.

Staff Comments:

This bill would further modify BBEI to address issues identified during initial funding rounds, such as allowing some applicants to receive a grant without securing a partner entity and revising evaluation criteria to better reflect the needs of the intended service population.

-- END --

SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT

Senator Dave Cortese, Chair

2023 - 2024 Regular

Bill No: AB 2873 Hearing Date: June 19, 2024

SUBJECT: Breaking Barriers to Employment Initiative: grants

KEY ISSUE

This bill makes various changes to the application and reporting requirements for the Breaking Barriers to Employment Initiative (BBEI) under the California Workforce Development Board (CWDB), including: 1) providing an exception to the requirement that applicants partner with a lead workforce development board or experienced community based organization (CBO), 2) reserving at most 15 percent of all BBEI funds for applicants that avail themselves of this exception, and 3) deleting specified CWDB reporting requirements.

ANALYSIS

Existing federal law:

1. Enacts the Workforce Innovation and Opportunity Act (WIOA) of 2014 in order to help job seekers access employment, education, training, and support services to succeed in the labor market and to match employers with skilled workers. WIOA coordinates employment and training services for adults, dislocated workers, and youth through grants to states that are implemented at the state and local level. (29 U.S.C. §3101)
2. Requires federally funded workforce programs operating under the auspices of WIOA to measure workforce program outcomes using a variety of metrics, including those pertaining to the wages and employment of program participants who have exited these programs. This is typically done using Unemployment Insurance (UI) quarterly base wage data already secured through the UI tax collection process. (29 U.S.C. §3141)

Existing state law:

1. Establishes the California Workforce Development Board (CWDB), under the Labor Workforce and Development Agency, as the body responsible for assisting the Governor in the development, oversight, and continuous improvement of California’s workforce system, including its alignment to the needs of the economy and the workforce. (Unemployment Insurance Code §14010 et seq.)
2. Enacts the California Workforce Innovation and Opportunity Act to make programs and services available to individuals with employment barriers. (Unemployment Insurance Code §14000 et seq.)
3. Establishes the Breaking Barriers to Employment Grant Initiative (BBEI), administered by the CWDB, which provides individuals with barriers to employment services to help enter, participate in, and complete broader workforce preparation, training, and education programs aligned with regional labor market needs. Program graduates should have the skills and competencies necessary to enter the labor market and earn wages that lead to self-sufficiency and economic security. (Unemployment Insurance Code §14030 et seq.)
4. Specifies that the BBEI will accomplish its goals by providing supplemental funding and services at the local and regional level through collaborative partnerships between community based organizations (CBOs) and local workforce development boards. (Unemployment Insurance Code §14031)
5. Defines “individual with employment barriers” as an individual with any characteristic that substantially limits their ability to obtain employment, as specified, including low-income individuals, ex-offenders, foster youth, and single parents, among others. (Unemployment Insurance Code §14005(j)).
6. Provides that activities eligible to receive BBEI funds include, but are not limited to, all of the following:
7. English language improvement training
8. High school diploma and GED acquisition
9. Skills and vocational training that aligns with regional labor market needs
10. Industry certifications
11. Mental health services (Unemployment Insurance Code §14035)
12. Requires the CWDB to provide outreach to prospective BBEI applicants. (Unemployment Insurance Code §14032(C))
13. Requires an application for a BBEI grant submitted to the CWDB to include, but not be limited to, all of the following:
14. Designation of a lead workforce development board or CBO with experience in providing services, as specified.
15. The designation of one or more targeted populations that will be served by the grant.
16. The designation of a service area, as specified.
17. An explanation of the specific purpose and goals of the grant award, the roles and responsibilities of the lead applicant and partner entities, and a discussion of how funds will be used and success will be measured, the number of individuals who will be served, and the services provided to these individuals. (Unemployment Insurance Code §14032(f))
18. Requires BBEI grants to be awarded on a competitive basis and directs the CWDB to develop criteria for selecting proposals. (Unemployment Insurance Code §14032(d))
19. Requires the CWDB to evaluate grant performance based on specified criteria, including the ability of individuals to succeed once they transition into the broader workforce and education system and labor market. Requires that this be measured by tracking these individuals utilizing existing performance monitoring systems and metrics governing relevant programs and outcomes, as specified. (Unemployment Insurance Code §14033(b))
20. Requires grant applicants to provide necessary information to the CWDB to facilitate grant performance evaluation, and requires the CWDB to issue an interim and final report on the program that contains specified information, including policy recommendations to provide guidance to the Legislature and Governor in scaling a permanent program. (Unemployment Insurance Code §14033 (c) and (e))
21. Authorizes the board to develop necessary policies to ensure that grants awarded under the BBEI are consistent with the initiative’s intent. (Unemployment Insurance Code §14036)

This bill:

1. Provides an exception to the requirement that BBEI grant applicants partner with a lead workforce development board or CBO with experience in providing services as specified, if the applicant demonstrates that securing a partner entity was not possible before the application deadline closed.
2. Requires applicants who avail themselves of the exemption above to satisfy the remaining criteria for the selection of BBEI grant recipients.
3. Provides that no more than 15 percent of the BBEI’s funding shall be awarded to applicants who receive an exemption under the requirement in 1) above.
4. Removes the requirement that a grant proposal that proposes 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. Changes the grant application evaluation criterion that requires applicants to demonstrate the ability of individuals to succeed in both the broader workforce and education system and labor market once they transition into the broader system. This bill authorizes, rather than requires, this to be measured by tracking BBEI participants using existing performance monitoring systems and metrics governing relevant programs and outcomes once the individuals transition into the broader system.
6. Removes the requirement that the CWDB issue an interim report no later than six months following the midpoint of a program funded by the BBEI.
7. Removes the requirement that the CWDB’s final report on a program include policy recommendations to provide guidance to the Legislature and Governor, and instead requires the final report to include demographic data and data on languages spoken by populations served by the grant.
8. Authorizes the board to provide technical assistance to grant recipients to carry out the BBEI, and allows the board to provide such technical assistance through a competitive contract with a nonprofit organization.

COMMENTS

1. Background:

Breaking Barriers to Employment Initiative (BBEI):

In October 2017, the Legislature approved AB 1111 (Garcia, 2017), which established the BBEI. The purpose of the initiative is to create a grant program that provides individuals with barriers to employment the services they need to enter, participate in, and complete broader workforce preparation, training, and education programs aligned with regional labor market needs. Since its passage, the Legislature has appropriated additional funding for the program, including $15 million in 2018, $30 million in 2021, and $5 million in 2023.

The BBEI supplements existing workforce and education programs by providing services to ensure the success of individuals either preparing to enter or already enrolled in workforce and education programs. Eligible services include English language training, entrepreneurial training, work experience, mentoring, remedial education skills, mental health services, industry certifications, and more. The BBEI primarily serves populations often not eligible for other state and federal programs, for instance, undocumented Californians. These services are delivered through a collaborative partnership between mission-driven, community-based organizations with experience in providing services to the target population and local workforce development boards.

An Evaluation of AB 1111: BBEI Implementation and Early Outcomes Report (2022):

As part of the evaluation of AB 1111, the Corporation for a Skilled Workforce and Social Policy Research Associates completed a report on the bill’s implementation for the CWDB^[1]. The report analyzed some of the 26 BBEI grants awarded in December of 2019. The study team found that, overall, grantees accomplished many of their program goals, despite operating during the early days of the COVID-19 pandemic. For the most part, programs exceeded their enrollment goals and served the intended populations. Most participants (84 percent) received basic career services, such as job search assistance and labor market information. Furthermore, about fifty percent of participants were employed about six months after leaving the program and one-third showed measurable skill gains.

The report also identified several ways to improve the BBEI. Specifically, it highlighted the need to strengthen partnerships between CBOs and local workforce development boards, a key goal. The intention behind this is to increase participants’ dual enrollment in BBEI programs and other workforce or education programs. Although applicants are required to identify a lead partner to receive a grant, many did not maintain consistent collaboration. The study team recommended that future rounds of funding define clearer expectations for collaboration between partners and require further communication. Additionally, the team recommended refining and increasing technical assistance efforts to ensure small CBOs, without a pre-existing relationship with a local workforce development board, can participate.

Committee Comments:

This bill would provide an exception to the requirement that BBEI grant applicants partner with a lead workforce development board or experienced CBO, if the applicant demonstrates that securing a partner entity was not possible before the application deadline closed. It would also reserve, at most, 15 percent of the BBEI’s funds for applicants that avail themselves of this exception. The committee understands the concern the author is trying to address and agrees it is important to include small CBOs. However, the committee raises the following questions: Should we be awarding state money to CBOs that are unable to immediately secure a partnership?; Can we provide stronger technical assistance before we alter the partnership requirement?; Is this solution contrary to the recommendations provided in the 2022 report?

It is important to balance efforts to encourage small CBO participation with efforts to ensure state funds are responsibly spent. This bill would also delete the recently added requirement that the CWDB complete an interim report for all grant projects and allow CBOs to develop their own programmatic evaluation outcomes, outside of existing federal ones. Although initial reports find the BBEI funds were well spent, we should remain diligent.

2. Need for this bill?

According to the author:

“AB 2873 seeks to address the challenges faced by community based organizations in accessing grant funding by setting aside 15% of future funds to community based organizations who meet all other grant requirements but were unable to secure a local board before the grant deadline. Proof needs to be submitted that attempts were made to partner with a local workforce development board in order to qualify for this funding. By allowing CBOs to submit their application without the partnership requirement ensures that organizations facing barriers in establishing partnerships still have access to funding. This change promotes equitable access to funding and encourages new partnerships to form. This bill also makes explicitly clear that programmatic outcomes need not only be developed through existing federal frameworks. This allows for broader outcomes to be considered and encourages partnerships to design workforce development programming that is more responsive to community needs. By allowing the California Workforce Development Board to holistically evaluate nonprofits who may provide technical assistance, they will be able to better address some challenges that previous grantees faced when attempting to connect with local workforce development boards.”

3. Proponent Arguments:

According to the sponsors, the California Workforce Association:

“In CWA’s conversations with Breaking Barriers coalition partners, it became clear that some smaller prospective grantees were unable to secure a local workforce board as a partner entity. This was largely due to grant timelines and the sheer demand of the program. The proposed change to Breaking Barriers through AB 2873 sets aside 15% of any future allocated funds to prospective grantees who were unable to secure a workforce board partner entity before the deadline but were able to meet all other requirements. Another concern the coalition raised involves what a CBO may consider in their programmatic outcomes. As the statute currently exists, prospective grantees must design their programmatic outcomes in a manner consistent with existing federal frameworks. A key component to Breaking Barriers is that it seeks to target populations who may not be well covered by existing programs. As such, it is difficult for CBOs who are attempting to target these populations to be competitive for the program. The proposed changes in AB 2873 seek to allow prospective grantees to measure their programmatic outcomes in ways that may not line up with existing federal frameworks.”

4. Opponent Arguments:

None received.

5. Prior Legislation:

AB 628 (Garcia, Chapter 323, Statutes of 2021), among other things, expanded the BBEI grant evaluation criteria and the list of eligible activities grants can fund, as well as required the CWDB to issue specified reports to the Legislature and the Governor on the BBEI.

SB 866 (Committee on Budget and Fiscal Review, Chapter 53, Statutes of 2018) exempted all criteria, guidelines, and polices developed by the CWDB for the administration of the BBEI from the rulemaking provisions of the Administrative Procedures Act.

AB 1111 (Garcia, Chapter 825, Statutes of 2017) established the BBEI for the purpose of assisting individuals who have multiple barriers to employment to receive the remedial education and work readiness skills that will help them to successfully participate in training, apprenticeship, or employment opportunities that will lead to self-sufficiency and economic stability.

SUPPORT

California Workforce Association (Sponsor)

Alliance for Boys and Men of Color

California Opportunity Youth Network

California Immigrant Policy Center

Goodwill of the San Francisco Bay

Southwest California Legislative Council

OPPOSITION

None received.

-- END --

1. Christian Geckeler, et al., “An Evaluation of AB 1111: BBEI Implementation and Early Outcomes,” CSW and SPR, May 31, 2022, An Evaluation of AB 1111: The Breaking Barriers to Employment Initiative Implementation and Early Outcomes Report ↑

ASSEMBLY THIRD READING

ATR Bill Id:AB 2873

Author:(Garcia)

As Amended Ver:May 20, 2024

Majority vote

SUMMARY

Makes changes to the application and reporting requirements for the Breaking Barriers to Employment Initiative (BBEI) under the California Workforce Development Board (board).

Major Provisions

1. Deletes language regarding the primary purpose and distinguishing characteristics of the BBEI, and the role of community based organizations (CBOs) and local workforce development boards.
2. Provides an exception to the requirement that BBEI grant applicants partner with a lead workforce development board or CBO with experience in providing services as specified, if the applicant demonstrates that securing a partner entity was not possible before the application deadline closed.
3. Provides that no more than 15% of the BBEI's funding shall be awarded to applicants who receive an exemption under the requirement in 2) above.
4. Removes the requirement that a grant proposal that proposes 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. Makes changes to one of the grant application evaluation criteria that requires applicants to demonstrate the ability of individuals to succeed in both the broader workforce and education system and labor market once they transition into the broader system. This bill authorizes, rather than requires, this to be measured by tracking of BBEI participants using existing performance monitoring systems and metrics governing relevant programs and outcomes once the individuals transition into the broader system.
6. Removes the requirement that the board issue an interim report, and removes the requirement that the final report include policy recommendations to provide guidance to the Legislature and Governor, and instead requires the final report to include demographic data and data on languages spoken by populations served by the grant.
7. Authorizes the board to provide technical assistance to grant recipients to carry out the BBEI, and allows the board to provide such technical assistance through a competitive contract with a nonprofit organization.

COMMENTS

The Legislature in 2017 approved AB 1111 (Garcia) Chapter 824, the BBEI, to assist Californians with multiple barriers to employment in receiving the services they need to enter, participate in, and complete broader workforce preparation, training, and education programs aligned with regional labor market needs. The distinguishing characteristic of this program is that services are typically provided through collaborative partnerships between CBOs and local workforce development boards.

Over the years, the Legislature has appropriated additional funding for the program, including $15 million in 2018, $30 million in 2021, and $5 million in 2023.

The bill author is running a parallel budget request for $10 million in ongoing funding for the BBEI in the 2024-2025 California State Budget.

According to the Author

"As a previous chair of JEDE Committee, Assemblymember Garcia has continued to work on bills related to job and economic development. In particular, the Breaking Barriers to Employment Initiative (BBEI) has remained a favorite of Asm. Garcia's to support and promote because of its vital work in aiding individuals that encounter employment barriers. This initiative has been successful because it is able to give individuals foundational skills necessary to not just enter the work force, but also remain employed. Consequently, individuals are able to achieve financial stability and freedom. With AB 2873, Asm. Garcia aims to make this initiative more equitable and flexible to adapt to the needs of the current state of the initiative.

BBEI was first approved by the legislature in 2017. Since then, it has become a popular initiative, with high level of interest and applicants. Due to this, many applicants are unable to secure a workforce board as a partner entity due to grant timelines and because local workforce boards cannot process the sheer volume of requests. This can easily be fixed by allowing qualified CBOs to submit their application without the partnership requirement. This way, organizations can still have access to funding. This is an unforeseen complication, but shows the success of the program. The program can be more successful once this area of the bill is expanded. Moreover, this bill makes the programmatic outcomes more flexible. This is important because many of the populations that this initiative helps, such as undocumented or formerly incarcerated populations, may not be accurately captured by the current frameworks.

Due to short grant timelines and intense interest in the Breaking Barriers program, small community-based organizations were often at a disadvantage when applying for grants. This change addresses the issue of limited partnerships and benefits organizations that may not have existing relationships with these boards, thereby promoting equity in access to funding opportunities. Further, existing statute requiring programmatic outcomes to be measured using existing frameworks, mainly the Workforce Innovation and Opportunity Act (WIOA), has led community-based organizations wishing to target two particular communities, justice involved and undocumented, to not apply for the funding. This flexibility allows CBOs to tailor their programs to better meet the needs of underserved and marginalized communities, acknowledging that the program is intended to support individuals who are ineligible for other workforce programs and may require additional needs."

Arguments in Support

The California Workforce Association, sponsor of the bill, states "In CWA's conversations with Breaking Barriers coalition partners, it became clear that some smaller prospective grantees were unable to secure a local workforce board as a partner entity. This was largely due to grant timelines and the sheer demand of the program. The proposed change to Breaking Barriers through AB 2873 sets aside 15% of any future allocated funds to prospective grantees who were unable to secure a workforce board partner entity before the deadline but were able to meet all other requirements. Any funds not used in this allocation will roll over to the next application cycle pool.

Another concern the coalition raised involves what a CBO may consider in their programmatic outcomes. As the statute currently exists, prospective grantees must design their programmatic outcomes in a manner consistent with existing federal frameworks. A key component to

Breaking Barriers is that it seeks to target populations who may not be well covered by existing programs. As such, it is difficult for CBOs attempting to target these populations to be competitive for the program. The proposed changes in AB 2873 seek to allow prospective grantees to measure their programmatic outcomes in ways that may not line up with existing federal frameworks."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee:

1. CWDB estimates minor and absorbable costs to continue administering the BBEI. Presumably, this estimate anticipates the program receives an appropriation in an amount similar to prior years, with a portion of such funds eligible to support program administration, such as a contract with a non-profit organization to provide technical assistance to grant recipients. CWDB's third-party technical assistance cost for the last cycle of grants was $500,000. Generally, a state agency's costs to administer a grant program average approximately 5% of the value of funds appropriated for the grant program.

According to the Legislative Analyst's Office, the GF faces a structural deficit in the tens of billions of dollars over the next several FYs.

VOTES

ASM LABOR AND EMPLOYMENT: 7-0-0

YES: Ortega, Flora, Alanis, Wendy Carrillo, Kalra, Ward, Zbur

ASM JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY: 7-0-0

YES: Villapudua, Hoover, Stephanie Nguyen, Petrie-Norris, Ramos, Soria, Wallis

ASM APPROPRIATIONS: 13-0-2

YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Villapudua

ABS, ABST OR NV: Sanchez, Ta

UPDATED

VERSION: May 20, 2024

CONSULTANT: Erin Hickey / L. & E. / (916) 319-2733 FN: 0003289

Date of Hearing: May 1, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2873

Author:(Garcia) – As Amended Ver:March 12, 2024

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

SUMMARY:

This bill modifies the Breaking Barriers to Employment Initiative (BBEI) administered, upon appropriation, by the California Workforce Development Board (CWDB).

Specifically, this bill:

1. Declares the intent of the Legislature, subject to appropriation, to provide permanent funding to the BBEI to ensure its continued operation and effectiveness in addressing racial, ethnic, and social economic disparities in the labor market.
2. Provides an exception to the requirement that a BBEI grant applicant partner with a lead workforce development board or community-based organization (CBO) if the applicant demonstrates to the CWDB that securing such a partner entity was not possible before the application deadline, but prohibits more than 15% of appropriated grant funds from being awarded to such applicants.
3. Revises grant evaluation criteria to authorize, rather than require, the CWDB to measure success utilizing existing performance monitoring systems and metrics governing relevant programs.
4. Revises the CWDB’s final BBEI report to no longer require policy recommendations to provide guidance to the Legislature and Governor in scaling a permanent program, and instead require demographic and language data for populations served by a grant.
5. Authorizes the CWDB to provide technical assistance to BBEI grant recipients, and to do so by contracting with a non-profit organization following a transparent, competitive process.

FISCAL EFFECT:

1. Ongoing cost pressures in the millions of dollars to provide permanent BBEI funding (General Fund (GF)). Prior one-time appropriations for the BBEI ranged from $5 million to $30 million. The author is requesting $10 million ongoing for the BBEI in this year’s state budget.
2. CWDB estimates minor and absorbable costs to continue administering the BBEI. Presumably, this estimate anticipates the program receives an appropriation in an amount similar to prior years, with a portion of such funds eligible to support program administration, such as a contract with a non-profit organization to provide technical assistance to grant recipients. CWDB’s third-party technical assistance cost for the last cycle of grants was $500,000. Generally, a state agency’s costs to administer a grant program average approximately 5% of the value of funds appropriated for the grant program.

According to the Legislative Analyst’s Office, the GF faces a structural deficit in the tens of billions of dollars over the next several FYs.

COMMENTS:

1. Purpose. According to the author:

[BBEI] has become a popular initiative, with high level of interest and applicants. Due to this, many applicants are unable to secure a workforce board as a partner entity due to grant timelines and because local workforce boards cannot process the sheer volume of requests. This can easily be fixed by allowing qualified CBOs to submit their application without the partnership requirement…Moreover, this bill makes the programmatic outcomes more flexible. This is important because many of the populations that this initiative helps, such as undocumented or formerly incarcerated populations, may not be accurately captured by the current frameworks.

This bill is sponsored by the California Workforce Association and supported by social justice groups.

1. BBEI. AB 1111 (E. Garcia), Chapter 824, Statutes of 2017, established the BBEI, a grant program administered by the CWDB to provide individuals with barriers to employment the services they need to enter, participate in, and complete broader workforce preparation, training, and education programs aligned with regional labor market needs. Grants are provided in partnership with CBOs and local workforce development boards, and some eligible activities include English language improvement, GED acquisition, earn-and-learn training, industry certifications, and pre-apprenticeship programming. The Budget Act of 2018 appropriated $15 million to the BBEI, resulting in 26 grants enrolling 2,510 participants. The BBEI was subsequently appropriated $30 million in 2021 and $5 million in 2023. This bill further modifies the BBEI to address issues identified during initial funding rounds, such as allowing some applicants to receive a grant without securing a partner entity and revising evaluation criteria to better reflect the needs of the intended service population.
2. Prior Legislation. AB 628 (E. Garcia), Chapter 323, Statutes of 2021, revised BBEI grant application requirements, evaluation criteria, eligible service populations, and allowable activities.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 16, 2024

ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY

Carlos Villapudua, Chair

ABPCA Bill Id:AB 2873 (

Author:Garcia) – As Amended Ver:March 12, 2024

SUBJECT: Breaking Barriers to Employment Initiative: grants

SUMMARY: AB 2873 seeks to amend an initiative by removing specific provisions, ensuring ongoing funding, allowing exceptions to partner entity requirements, limiting funding exceptions, eliminating notification and reporting mandates, adjusting criteria measurement, mandating demographic data inclusion, and authorizing technical assistance through nonprofit contracts with transparent evaluation processes.

Specifically, this bill:

1. Specifies that it is the intent of the Legislature, subject to appropriation, to provide permanent funding to the initiative to ensure its continued operation and effectiveness in addressing racial, ethnic, and social economic disparities in the labor market.
2. Specifies that the Breaking Barriers to Employment Initiative is a partner entity and would allow an exception to that designation requirement, if the lead applicant demonstrates, as prescribed, that securing a partner entity was not possible before the application deadline closed.
3. Prohibits more than 15 percent of all moneys appropriated for the above-described grants from being awarded to a lead applicant that receives the partner entity designation exception.
4. Deletes the above-described requirement to commit to notify each workforce development board in the proposed service area.
5. Authorizes, rather than require, the board to measure criteria by tracking individuals
6. Authorizes grant applicants to provide the necessary information to the board’s designee.
7. Removes the requirement that the board issue an interim report and would remove the requirement that the final report include the above-described recommendations.
8. Requires the final report to include demographic data and data on languages spoken by populations served by the grant.
9. Authorizes the board to provide technical assistance to grant recipients to carry out the initiative.
10. Authorizes the board to provide the technical assistance by contract with a nonprofit organization, as defined, including, among other things, evaluating proposals through a transparent and competitive process using criteria developed by the board.
11. Funding for the initiative shall be subject to appropriation by the Legislature.

EXISTING LAW:

1. Existing law, the California Workforce Innovation and Opportunity Act, makes programs and services available to individuals with employment barriers and establishes the California Workforce Development Board (board) to assist 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.
2. Existing law requires the local chief elected officials in a local workforce development area to form, pursuant to specified guidelines, a local workforce investment board to plan and oversee the workforce investment system and further requires the Governor to periodically certify one local board for each local area in the state.
3. Existing law establishes the Breaking Barriers to Employment Initiative, which establishes a grant program administered by the board to support prescribed workforce preparation, education, and training programs.
4. Existing law specifies that the initiative’s funding is subject to appropriation by the Legislature, as specified.
5. Existing law requires the grant to be awarded on a competitive basis and the board to develop criteria for the selection of grant recipients, as specified.
6. Existing law requires an application for the grant to be submitted to the board to include, among other things
7. Existing law requires that an application that proposes to serve clients across one or more workforce development areas to include a commitment to notify each workforce development board in the proposed service area.
8. Existing law requires the board to evaluate an application based on specified criteria, including, among other things, the ability of individuals to succeed in both the broader workforce and education system and in the labor market once they transition into the broader system.
9. Existing law requires that this be measured by tracking these individuals utilizing the existing performance monitoring systems and metrics governing relevant programs and outcomes once they transition into the broader system.
10. Existing law requires applicants to provide necessary information to the board to facilitate grant performance evaluation.
11. Existing law requires the board to issue an interim report and a final report on the program, as specified.
12. Existing law requires the reports to include specified information, including, among other things, policy recommendations to provide guidance to the Legislature and the Governor in scaling a permanent program.
13. Existing law authorizes the board to develop necessary policies to ensure that grants awarded under the initiative are consistent with the initiative’s intent.

FISCAL EFFECT: Unknown

COMMENTS: Note: This bill is double referred from the Committee on Labor and Employment.

Due to the high level of interest in the Breaking Barriers program, many applicants were unable to secure a local workforce board as a partner entity within the grant timelines. The volume of request made it difficult for local workforce boards to respond to the volume of requests. This has created a challenge for smaller Community Based Organizations (CBOs)who have not previously applied and received funding. Existing statutes require grantees to measure programmatic success in grant applications using frameworks established by the Workforce Innovation and Opportunity Act (WIOA). However, as the Breaking Barriers program aims to serve individuals traditionally underserved by these frameworks, such as immigrants and soon-to-be-released or recently released incarcerated individuals.

Previous technical assistance grants for the program were issued on a non-competitive basis. This bill would allow the California Workforce Development Board (CWDB) to evaluate future technical assistance grants on a competitive basis in order to allow for a thorough evaluation of nonprofit applicants to broaden the expertise available to support the partnership between CBOs and local workforce development boards (LWDBs).

In 2018, the Legislature appropriated $15 million to the program which resulted in 26 grants enrolling 2,510 participants before, during, and after the COVID-19 pandemic.

In 2021, the Legislature approved AB 628 (Garcia), which expanded listed populations and eligible activities eligible for funding.

Populations eligible to be served by grants include, but are not limited to, the following:

(a) Youths who are disconnected from the education system or employment.

(b) Women seeking training or education to move into nontraditional fields of employment.

(c) Displaced workers and long-term unemployed.

(d) Unskilled or under skilled, low-wage workers.

(e) Persons for whom English is not their primary language.

(f) Economically disadvantaged persons.

(g) CalWORKs participants.

(h) Persons who are incarcerated and soon to be released or formerly incarcerated.

(i) Armed services veterans.

(j) Native Americans.

(k) Migrants or seasonal farmworkers.

(l) Persons with developmental or other disabilities.

(m) Any other population with barriers to employment identified in subdivision (j) of Section 14005.

(n) Immigrants.

(o) Persons over 50 years of age who need retraining for in-demand skills.

In the same year, SB 129 appropriated $30 million to the program. In 2023, the program was appropriated an additional $5 million. The bill’s author has a budget request for $10 Million in ongoing funding for the Breaking Barriers to Employment Initiative in the 2024-2025 California State Budget.

Author Statement: “As a previous chair of JEDE Committee, Assmblymember Garcia has continued to work on bills related to job and economic development. In particular, Breaking Barriers to Employment Initiative (BBEI) has remained a favorite of Asm. Garcia’s to support and promote because of its vital work in aiding individuals that encounter employment barriers. This initiative has been successful because it is able to give individuals foundational skills necessary to not just enter the work force, but also remain employed. Consequently, individuals are able to achieve financial stability and freedom. With AB 2873, Asm. Garcia aims to make this initiative more equitable and flexible to adapt to the needs of the current state of the initiative. BBEI was first approved by the legislature in 2017. Since then, it has become a popular initiative, with high level of interest and applicants. Due to this, many applicants are unable to secure a workforce board as a partner entity due to grant timelines and because local workforce boards cannot process the sheer volume of requests. This can easily be fixed by allowing qualified CBOs to submit their application without the partnership requirement. This way, organizations can still have access to funding. This is an unforeseen complication, but shows the success of the program. The program can be more successful once this area of the bill is expanded. Moreover, this bill makes the programmatic outcomes more flexible. This is important because many of the populations that this initiative helps, such as undocumented or formerly incarcerated populations, may not be accurately captured by the current frameworks.”

Argument in Support: As stated by the Alliance for Boys and Men of Color (ABMoC), “We firmly believe that AB 2873 is a step towards economic mobility because it targets racial, ethnic, and socioeconomic disparities in the labor market by supporting workforce development, education, and training programs. It streamlines the grant process and improves reporting requirements, ensuring efficient resource allocation and effective program evaluation. Providing flexibility in selecting grant recipients and offering technical assistance encourages innovation and collaboration among organizations.

Argument in Opposition: None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

Alliance for Boys and Men of Color

California Immigrant Policy Center

California Opportunity Youth Network

Opposition

None on file

Analysis Prepared by: Carla Castilla / J., E.D., & E. / (916) 319-2090

Date of Hearing: April 3, 2024

ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT

Liz Ortega, Chair

ABPCA Bill Id:AB 2873 (

Author:Garcia) – As Amended Ver:March 12, 2024

SUBJECT: Breaking Barriers to Employment Initiative: grants

SUMMARY: Makes changes to the application and reporting requirements for the Breaking Barriers to Employment Initiative (BBEI) under the California Workforce Development Board (board).

Specifically, this bill:

1. Adds language regarding the Legislature’s intent to, subject to appropriation, provide permanent funding to the BBEI.
2. Provides an exception to the requirement that BBEI grant applicants partner with a lead workforce development board or community-based organization (CBO) with experience in providing services as specified, if the applicant demonstrates that securing a partner entity was not possible before the application deadline closed.
3. Provides that no more than 15 percent of the BBEI’s funding shall be awarded to applicants who receive an exemption under the requirement in 2) above.
4. Removes the requirement that a grant proposal that proposes 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. Makes changes to one of the grant application evaluation criteria that requires applicants to demonstrate the ability of individuals to succeed in both the broader workforce and education system and labor market once they transition into the broader system. This bill authorizes, rather than requires, this to be measured by tracking of BBEI participants using existing performance monitoring systems and metrics governing relevant programs and outcomes once the individuals transition into the broader system.
6. Removes the requirement that the board issue an interim report, and removes the requirement that the final report include policy recommendations to provide guidance to the Legislature and Governor, and instead requires the final report to include demographic data and data on languages spoken by populations served by the grant.
7. Authorizes the board to provide technical assistance to grant recipients to carry out the BBEI, and allows the board to provide such technical assistance through a competitive contract with a nonprofit organization.

EXISTING LAW:

1. Establishes the board to assist 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. Unemployment Insurance Code § 14010 et seq.
2. Creates the California Workforce Innovation and Opportunity Act to make programs and services available to individuals with employment barriers. Unemployment Insurance Code § 14000 et seq.
3. Establishes the BBEI, a grant program administered by the board to support prescribed workforce preparation, education, and training programs, and specifies that the initiative’s funding is subject to appropriation by the Legislature, as specified. Unemployment Insurance Code § 14031 et seq.
4. Requires an application for the grant submitted to the board to include, among other things, designation of a lead workforce development board or community-based organization with specified experience and the designation of a service area. Unemployment Insurance Code § 14031(c).
5. Requires the grant to be awarded on a competitive basis and requires the board to develop criteria for the selection of grant recipients. Unemployment Insurance Code § 14032(d) and (e).
6. Requires an application that proposes to serve clients across one or more workforce development areas to include a commitment to notify each workforce development board in the proposed service area. Unemployment Insurance Code § 14032(f)(3).
7. Requires the board to evaluate an application based on specified criteria including the ability of individuals to succeed once the individuals transition into the broader workforce and education system and in the labor market, and requires that this be measured by tracking these individuals utilizing the existing performance monitoring systems and metrics governing relevant programs and outcomes once they transition into the broader system. Unemployment Insurance Code § 14033(b).
8. Requires grant applicants to provide necessary information to the board to facilitate grant performance evaluation, and requires the board to issue an interim and final report on the program that contains specified information, including policy recommendations to provide guidance to the Legislature and Governor in scaling a permanent program. Unemployment Insurance Code § 14033 (c) and (e).
9. Authorizes the board to develop necessary policies to ensure that grants awarded under the BBEI are consistent with the initiative’s intent. Unemployment Insurance Code § 14036.

FISCAL EFFECT: Unknown

COMMENTS: Note: This bill is double referred to the Assembly Committee on Jobs, Economic Development and the Economy upon passage out of this Committee.

The Legislature in 2017 approved AB 1111 (Garcia), the BBEI, to assist Californians with multiple barriers to employment in receiving the services they need to enter, participate in, and complete broader workforce preparation, training, and education programs aligned with regional labor market needs. The distinguishing characteristic of this program is that services are typically provided through collaborative partnerships between CBOs and local workforce development boards.

Over the years, the Legislature has appropriated additional funding for the program, including $15 million in 2018, $30 million in 2021, and $5 million in 2023.

The bill author is running a parallel budget request for $10 million in ongoing funding for the BBEI in the 2024-2025 California State Budget.

According to the author, “As a previous chair of JEDE Committee, Assemblymember Garcia has continued to work on bills related to job and economic development. In particular, the Breaking Barriers to Employment Initiative (BBEI) has remained a favorite of Asm. Garcia’s to support and promote because of its vital work in aiding individuals that encounter employment barriers. This initiative has been successful because it is able to give individuals foundational skills necessary to not just enter the work force, but also remain employed. Consequently, individuals are able to achieve financial stability and freedom. With AB 2873, Asm. Garcia aims to make this initiative more equitable and flexible to adapt to the needs of the current state of the initiative.

BBEI was first approved by the legislature in 2017. Since then, it has become a popular initiative, with high level of interest and applicants. Due to this, many applicants are unable to secure a workforce board as a partner entity due to grant timelines and because local workforce boards cannot process the sheer volume of requests. This can easily be fixed by allowing qualified CBOs to submit their application without the partnership requirement. This way, organizations can still have access to funding. This is an unforeseen complication, but shows the success of the program. The program can be more successful once this area of the bill is expanded. Moreover, this bill makes the programmatic outcomes more flexible. This is important because many of the populations that this initiative helps, such as undocumented or formerly incarcerated populations, may not be accurately captured by the current frameworks.”

The author added that, “due to short grant timelines and intense interest in the Breaking Barriers program, small community-based organizations were often at a disadvantage when applying for grants. This change addresses the issue of limited partnerships and benefits organizations that may not have existing relationships with these boards, thereby promoting equity in access to funding opportunities. Further, existing statute requiring programmatic outcomes to be measured using existing frameworks, mainly the Workforce Innovation and Opportunity Act (WIOA), has led community-based organizations wishing to target two particular communities, justice involved and undocumented, to not apply for the funding. This flexibility allows CBOs to tailor their programs to better meet the needs of underserved and marginalized communities, acknowledging that the program is intended to support individuals who are ineligible for other workforce programs and may require additional needs.”

Arguments in Support

The California Workforce Association, sponsor of the bill, states “In CWA’s conversations with Breaking Barriers coalition partners, it became clear that some smaller prospective grantees were unable to secure a local workforce board as a partner entity. This was largely due to grant timelines and the sheer demand of the program. The proposed change to Breaking Barriers through AB 2873 sets aside 15% of any future allocated funds to prospective grantees who were unable to secure a workforce board partner entity before the deadline but were able to meet all other requirements. Any funds not used in this allocation will roll over to the next application cycle pool.

Another concern the coalition raised involves what a CBO may consider in their programmatic outcomes. As the statute currently exists, prospective grantees must design their programmatic outcomes in a manner consistent with existing federal frameworks. A key component to

Breaking Barriers is that it seeks to target populations who may not be well covered by existing programs. As such, it is difficult for CBOs attempting to target these populations to be competitive for the program. The proposed changes in AB 2873 seek to allow prospective grantees to measure their programmatic outcomes in ways that may not line up with existing federal frameworks.”

Arguments in Opposition

None on file.

Prior Legislation

AB 628 (Garcia) Chapter 323, Statutes of 2021, made changes to the BBEI in order to expand the initiative’s purpose to include efforts for the retention of employment as well as efforts that enhance racial and economic justice. Also revised and expanded the BBEI’s grant application requirements, evaluation criteria, list of eligible populations which the initiative can serve, and eligible activities which the initiative grants can fund.

SB 866 (Committee on Budget and Fiscal Review) Chapter 53, Statutes of 2018 exempted all criteria, guidelines, and polices development by the board for the administration of the BBEI from the rulemaking provisions of the Administrative Procedures Act.

AB 1111 (Garcia) Chapter 824, Statutes of 2017, established the BBEI for the purpose of assisting individuals who have multiple barriers to employment to receive the remedial education and work readiness skills to help them to successfully participate in training, apprenticeship, or employment opportunities that will lead to self-sufficiency and economic stability.

REGISTERED SUPPORT / OPPOSITION:

Support

California Workforce Association (Sponsor)
Alliance for Boys and Men of Color
California Immigrant Policy Center
California Opportunity Youth Network

Opposition

None on file.

Analysis Prepared by: Erin Hickey / L. & E. /