AB 2300

Existing federal law, the Workforce Innovation and Opportunity Act (WIOA), provides for workforce development activities, including activities in which states may participate. Existing state law, the California Workforce Innovation and Opportunity Act (CalWIOA), establishes the California Workforce Development 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. CalWIOA creates the Consolidated Work Program Fund in the State Treasury, for the receipt of all moneys deposited pursuant to WIOA and requires moneys in the fund to be made available, upon appropriation by the Legislature, to the Employment Development Department for expenditure consistent with the purposes of WIOA, and requires the establishment of a local workforce development board in each local workforce development area of the state to, among other things, plan and oversee the workforce investment system. This bill would provide that grants or subgrants, as defined, awarded by the Employment Development Department to local workforce development boards or the fiscal agents of local workforce development areas, as defined, for the purpose of implementing workforce development programs administered by the department are exempt from specified provisions applicable to state contracts and the State Administrative Manual, and are exempt from the review or approval of any division of the Department of General Services. This bill would require that all funds disbursed by the department to local workforce development boards or the fiscal agents of local workforce development areas be subject to the same financial reporting, recordkeeping, and auditing requirements applicable to federal funds under WIOA, and that all records related to the disbursement and expenditure of these funds be retained in accordance with specified federal regulations. The bill would require subrecipients to maintain separate accounting for each state grant code and utilize the department’s automated reporting systems. By imposing new requirements on local workforce development boards, this bill would impose a state-mandated local program. This bill would provide that workforce directives, bulletins, or other written guidance issued by the department to implement, interpret, or make specific the administration of workforce development programs under CalWIOA or federal law are not subject to the rulemaking provisions of the Administrative Procedure Act, and would specified requirements for that guidance issued by the department. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.