Assembly Standing Committee on Labor and Employment

All right, so welcome everyone to the Assembly Labor and Employment Committee hearing. Testimony is in person, but we do accept written testimony through the position letter portal on the committee's website. We also have an email address set up that you can send us that you can use to email us your testimony. Email know is ALBR Committee at Assembly CA gov. And as we begin, actually, if we can, Madam Secretary, start by taking role in establishing Quorum

Karla. Here.Flora Chen Haney. Ortega. Here. Reyes. Here. Ward. Here. It is established.

And before we start with the Bill presentation, I do want to introduce Tim Rainey. You want to just stand up and wave. So Tim has been working on our behalf as the Director of the Workforce Development Board. And now we're going to be able to work with them even more closely as he is working in Speaker Rebus's office and as our labor liaison.

And so we, as in the Labor Committee and myself and previously on the Future Work Commission, have worked with Tim for a number of years. And I think he's an excellent addition to the Assembly and a resource for all of us. And so I just wanted to make sure, as he just came on board, that he had the opportunity that I had the opportunity to introduce him and certainly take the opportunity over the next few weeks to sit down.

With them or have your staff, especially your staff assigned to labor issues, sit down with them and get him acclimated to the Assembly community. And I'm really excited about the opportunity to help guide the Speaker's office and our body in terms of moving in the right directions, particularly on the issues like the future of work and things that I know I've worked very closely with them on workforce development, obviously. So welcome, Tim, and we look forward to working with you.

So, yes, the Chair will allow applause. And so, Senator Deraso, thank you so much for being here promptly. We do have one item. SJR 5. And Senator, whenever you're ready, you may begin. And you can have up to two witnesses, up to two minutes each if you so desire.

Thank you all very much. It seems kind of eerie to be so quiet. So many people around here. Thank you all, especially Assemblymember Haney, because having to troop over here with that. Thank you. Thank you so much. So. Good afternoon, Mr. Chair. SJR 5 urges the Federal Office of Management and Budget to lift the local hire prohibition on federally funded projects and explicitly allow states and localities to implement strong procurement standards that advance high quality jobs and equitable know, we're in California.

We're in the middle of an industry changing moment in infrastructure and manufacturing sustainability. In the coming years, we have the opportunity to determine how billions, tens of billions, not much more of federal dollars are spent in our state. We know, unfortunately, that most poor people work, often full time and more than one job. 40 million Californians live in poverty or near poverty. So the problem isn't that people don't have jobs or that our historic investments won't create jobs.

It's that more people need access to good jobs. And fewer than half of Californians consider themselves in a good job. Because we are restricted from federal regulations known as the Uniform Guidance, state and city governments are hindered from using proven programs like local and targeted hire in federally funded projects for non construction jobs. In my city of Los Angeles, we've seen huge successes from projects that hire their workers from local communities and from targeted groups like those returning from incarceration and our veterans.

But many of these programs were only possible because we had local and federal pilot funding. Unclear and prohibitive federal grant rules have hampered cities and states from leveraging the opportunity to use federal dollars. But now we have the chance to change these grant rules, restrictive grant rules, and bring successful programs by acting. Now, we can only bring needed infrastructure funding to our districts, but also make enormous inroads in equity in our communities.

So we want to modernize the federal grant rules, create programs that create good jobs for Californians, and today, we have Valerie Lizárraga from Jobs to Move America testifying in support. Thank you, Mr. Chair.

Thank you very much. Yes, please.

Good afternoon, Chair Kalra and Members of the committee. My name is Valerie Lizárraga. I'm the campaign and organizing manager at Jobs Move America. I'm honored to be here to speak on behalf of SJR Five. In FY 23 alone, California is set to receive 117,000,000,000 in federal funds. These funds are essential for much needed infrastructure improvements that will make our state stronger and more resilient. However, a set of outdated federal rules called the Uniform Guidance hinders cities and states from maximizing the benefits of these funds.

This is a huge missed opportunity, and one that has already held our state and communities back. Luckily, the California Legislature can take a stand and support common sense updates. Many inclusive procurement strategies, such as local and targeted hire, have been used for years in local and state funded projects to create high quality jobs and revitalize local economies. But the Uniform Guidance makes it difficult or impossible to execute these policies within federally funded projects.

SJR Five and the Local Opportunities Coalition seek to modernize these grant rules to empower local and state governments to use the policy tools that work for their communities. For example, one study found that local hire policies can create significant new job opportunities for Low income local residents. However, local hire programs are currently prohibited on most federally funded projects. Additionally, updating the Uniform Guidance to clarify that recipients of federal funding can adopt targeted hiring policies can help address historic inequities by creating on ramps to quality careers.

Targeted hire programs can have major positive impacts for community Members, especially those facing barriers to employment. With the rule change process moving forward, it is important that the voice of California's elected leaders is heard. SJR 5 sends a clear message to the Biden Administration that the California state Legislature is eager to implement equitable procurement policies. Thank you.

Thank you very much. Is there anyone else here in support of SJR 5? Is there anyone in opposition to SJR 5? Anyone from the committee have any questions or motions? We have a motion and a second. Thank you so much, Senator, for bringing this forward. I agree that these are some outdated rules that really hinder our ability, especially when we're bringing billions into our state. It's fantastic we're able to use it for infrastructure. We want also those that are building it.

I think we've all seen in our communities, contractors, what have you, that bring workers from out of state to build in our own backyard. And I think that we have such a great opportunity with these federal funds to make sure that we're creating jobs in our own community for Californian families. So thank you so much for raising attention to this. Also, thank you to Jobs to move America. For your partnership with the Senator, I would love to be added on as a co author. And the motion on the table is to have this be adopted straight to the floor. Senator, would you like to close?

Thank you all very much. And urgent aye vote.

Thank you so much. Madam Secretary, if we can take the role on SJR 5, please.

Motion is be adopted to the Assembly floor. Kalra. Aye. Kalra, aye. Flora Chen aye. Chen, aye. Haney Haney, aye. Ortega? Aye. Ortega. aye Reyes. Aye. Reyes, aye. Ward, aye. Ward, aye.

All right, that Bill is on the way to the floor. Thank you so much. We're adjourned.

Thank you, everyone. Thank you. Mr. Chair.