BILL ANALYSIS Ó AB 554 Page 1 ASSEMBLY THIRD READING AB 554 (Atkins) As Introduced February 16, 2011 Majority vote LABOR & EMPLOYMENT 5-1 APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Swanson, Alejo, Allen, |Ayes:|Fuentes, Blumenfield, | | |Furutani, Yamada | |Bradford, Charles | | | | |Calderon, Campos, Davis, | | | | |Gatto, Hall, Hill, Lara, | | | | |Mitchell, Solorio | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Miller |Nays:|Harkey, Donnelly, | | | | |Nielsen, Norby, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : This bill requires local workforce investment boards (WIBs) to coordinate programs and services funded by the Workforce Investment Act of 1998 (WIA), and approved by the Division of Apprenticeship Standards (DAS), with community colleges to provide preapprenticeship training. Specifically, this bill : 1)Requires the California Workforce Investment Board (CWIB) to ensure that programs and services funded by WIA and directed to apprenticeable occupations, including preapprenticeship training, are conducted to the maximum extent feasible, coordinate with apprenticeship programs approved by DAS. 2)Requires CWIB and all local WIBs to collaborate with community colleges and approved apprenticeship programs in their respective geographic areas to provide preapprenticeship training, apprenticeship training, and continuing education in apprenticeable occupations through approved apprenticeship programs. FISCAL EFFECT : According to Assembly Appropriations Committee, there will be minor absorbable costs to the CWIB to implement this bill including holding regional meetings with WIBs to develop policies of collaboration between community and apprenticeship programs and depending on the results of these meetings WIBs may reallocate federal WIA funds to implement the recommendations. AB 554 Page 2 COMMENTS : In general terms, apprenticeship is a program of instruction that combines a formal course of theoretical in-class instruction with practical "on-the-job" training. According to the federal Office of Apprenticeship Training, Employment, and Labor Services (OATELS), the purpose of a registered apprenticeship program is to enable employers to develop and apply industry standards to training programs that can increase productivity and improve the quality of the workforce. DAS notes that apprenticeship programs operate under training standards that are agreed to by labor and/or management in accordance with state and federal laws. Under these programs, an apprentice works with a skilled worker and gains on the job skills and "know-how" and in turn becomes an important part of the occupation and industry. DAS states that those crafts in which management and labor organizations exist, each selects an equal number of members to serve on the joint apprenticeship committee. The joint apprenticeship committee determines the standards for training of its occupation and supervises the training of apprentices. According to DAS, in many cases, the local apprenticeship committees have guidelines in the form of national and/or statewide standards recommended by the advisory organizations. But these are minimums and the local groups usually have complete autonomy in developing and administering their own programs. California's Eligible Training Provider List (ETPL) was established to comply with WIA requirements to provide customer-focused employment training for adults and dislocated workers. Apprenticeship programs are counted among the training providers who are eligible to receive Individual Training Accounts through WIA Title I-B funds. According to the Employment Development Department Web site, as of April 7, 2011, there are 14,517 approved programs (courses or combination of courses) that may lead to employment and 84 state approved apprenticeship programs on the ETPL. According to the author, preapprenticeship, "green construction training," and other local training programs funded by WIA dollars fail to connect youth and adult participants to actual pathways to journeyperson certifications through state approved apprenticeship programs. The author notes that, to address this disconnect, WIA funded training in apprenticeable occupations must be formally connected with one or more state approved apprenticeship programs. The author asserts that this will establish critical connections AB 554 Page 3 with apprenticeship programs and other labor-management training partnerships in growth sectors maximizing the public investment in workforce development. A report from the Institute for Research on Labor and Employment at the University of California, Berkeley, titled "California Workforce Education and Training Needs Assessment: For Energy Efficiency, Distributed Generation and Demand Response," (UCB Report) states that California's workforce development system is extensive but fragmented. The UCB Report notes that there is limited coordination among WIBs, community colleges, apprenticeship programs, and other training and educations agencies. The UCB Report asserts that the WIA system is currently driven by a "work first" mandate, with the bulk of resources going to the One-Stop Career Centers to help job seekers find a job quickly, rather than investing in training. In addition, the UCB Report states that WIA's limited resources are being funneled through individual training vouchers instead of facilitating training and education infrastructure planning and development. The UCB Report notes that community colleges alone have the most post-secondary training programs, though they do not always have value in the market because of the lack of clear industry-recognized certifications in many occupations. Therefore, the UCB Report recommends system-wide collaboration between the state's community colleges and apprenticeship programs at the pre-apprenticeship, apprenticeship and continuing education levels. In a letter expressing their sponsorship of this bill, the State Building and Construction Trades Council of California (SBCTCC) writes that too many local WIBs offering construction relating training are not connected to state approved apprenticeship, which provides employment and training simultaneously. SBCTCC notes that, as a result, these subsidies often fail to connect participants to pathways to well-paying middle class careers in construction. They assert that this bill will establish critical connections with apprenticeship programs and other labor-management training partnerships in growth sectors in order to make the most of taxpayer investment in workforce development. Please see policy committee analysis for existing federal and state law, as well as, additional comments. Analysis Prepared by : Shannon McKinley / L. & E. / (916) 319-2091 AB 554 Page 4 FN: 0000396