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