BILL ANALYSIS                                                                                                                                                                                                    Ó






                 Senate Committee on Labor and Industrial Relations
                                 Ted W. Lieu, Chair

          Date of Hearing: June 8, 2011                20011-2012 Regular 
          Session                              
          Consultant: Alma Perez                       Fiscal:Yes
                                                       Urgency: No
          
                                   Bill No: AB 554
                                   Author: Atkins
                      Version: As introduced February 16, 2011
          

                                       SUBJECT
          
                           Employment: workforce services 


                                      KEY ISSUE

          Should the Legislature direct the state and local Workforce 
          Investment Boards to 1) ensure that programs and services funded 
          by the Workforce Investment Act are conducted in coordination 
          with approved apprenticeship programs, and 2) to foster 
          collaboration between community colleges and approved 
          apprenticeship programs to provide training and continuing 
          education? 
          

                                       PURPOSE
          
          To encourage the coordination of WIA funded training with 
          approved apprenticeship programs and to foster collaboration 
          between educational and job-training entities.   


                                      ANALYSIS
          
           The federal Workforce Investment Act (WIA) of 1998  provides for 
          activities and programs for job training and employment 
          investment in which states may participate, including work 
          incentive and employment training outreach programs.  Following 
          passage of the federal WIA, the state established the California 
          Workforce Investment Board (CWIB) and charged the board with the 
          responsibility of developing a unified, strategic planning 
          process to coordinate various education, training, and 









          employment programs into an integrated workforce development 
          system that supports economic development. 

           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 (Local WIB) to 
          plan and oversee the workforce investment system at the local 
          level.  There are currently 49 local WIBs in the state.  
          Additionally, existing law also requires each Local WIB to 
          establish at least one full service One-Stop Career Center in 
          the local workforce investment area that, among other things, 
          provides access to career information, counseling, job search 
          and placement assistance, training and other related services 
          available in one location.  WIA requires that 85 percent of the 
          federal funds appropriated to states go to the local workforce 
          investment boards, with the remainder allocated for state 
          discretionary purposes

           Existing law  provides a framework for promoting and developing 
          apprenticeship training through the California Apprenticeship 
          Council (CAC) and the Division of Apprenticeship Standards (DAS) 
          within the Department of Industrial Relations (DIR).  DAS 
          enforces apprenticeship standards for, among other things, 
          wages, hours, working conditions and the specific skills 
          required for state certification as a journey person in an 
          apprenticealbe occupation.  The CAC was established to set 
          policies for the DAS.  All apprenticeship programs must be 
          approved by the Chief of the DAS and are randomly audited every 
          five years to ensure that programs are in compliance with 
          Division standards.   
           

          This Bill  would direct the state and local Workforce Investment 
          Boards to ensure that programs and services funded by WIA are 
          conducted in coordination with apprenticeship programs and would 
          encourage collaboration between community colleges and 
          apprenticeship programs.

          Specifically, this bill:

             1.   Requires the California Workforce Investment Board 
               (CWIB) and each local board to ensure that programs and 
          Hearing Date:  June 8, 2011                              AB 554  
          Consultant: Alma Perez                                   Page 2

          Senate Committee on Labor and Industrial Relations 
          








               services funded by WIA and directed to apprenticeable 
               occupations, including preapprenticeship training, are 
               conducted to the maximum extent feasible, in coordination 
               with apprenticeship programs approved by DAS.

             2.   Requires the CWIB and each local board to develop a 
               policy of fostering collaboration between community 
               colleges and approved apprenticeship programs in their 
               respective geographic areas to provide pre-apprenticeship 
               training, apprenticeship training, and continuing education 
               in apprenticeable occupations through approved 
               apprenticeship programs.  


                                      COMMENTS
          
          1.  Background on how Apprenticeship Programs work:

            As noted above, the Division of Apprenticeship Standards 
            administers the state's apprenticeship laws and enforces 
            apprenticeship standards for wages, hours, working conditions 
            and the specific skills required for state certification as a 
            journey person in an apprenticeable occupation. In general, 
            apprenticeship programs provide instruction that combines a 
            formal course of 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.  

            In California, industries and employers voluntarily 
            participate in apprenticeship programs.  For employers, 
            participation in apprenticeship programs help eliminate the 
            need for expensive recruitment, creates a diversified and 
            flexible workforce and larger pool of employees with specific 
            skills, reduces costs of high labor turnover and increases 
            productivity.  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 
          Hearing Date:  June 8, 2011                              AB 554  
          Consultant: Alma Perez                                   Page 3

          Senate Committee on Labor and Industrial Relations 
          








            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.

          2.  Apprenticeship Programs in California  :

            California's Eligible Training Provider List (ETPL) was 
            established in compliance with WIA requirements for the 
            purpose of providing 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 
            website, 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.

          3.  Need for this bill?
           
            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) reports 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 education agencies.  The 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.  The UCB Report also notes that community colleges 
            alone have the most post-secondary training programs. 
            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.  
          Hearing Date:  June 8, 2011                              AB 554  
          Consultant: Alma Perez                                   Page 4

          Senate Committee on Labor and Industrial Relations 
          









            According to the author, many WIA funded programs for job 
            training are not simultaneously connected to the programs that 
            provide employment and training, such as apprenticeship 
            programs.  The author believes that the WIA funded programs 
            compete with apprenticeship programs and are subsidizing 
            programs that often fail to connect participants to clear 
            career pathways and well-paying middleclass jobs.  This bill 
            would direct the CA WIB and local boards to ensure that 
            programs and services, funded by WIA for apprenticeship 
            occupations, are conducted to the maximum extent feasible, in 
            coordination with apprenticeship programs approved by DAS.  
            And additionally, the bill would require the CA WIB and each 
            local board to develop a policy of fostering collaboration 
            between community colleges and approved apprenticeship 
            programs in their respective geographic areas.

          4.  Proponent Arguments  :
            
            According to proponents, the remarkable success of recognized 
            apprenticeship programs stems from their unique ability to 
            simultaneously provide employment and training, setting 
            workers on the path to living wage careers. The author argues 
            that pre-apprenticeship, "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 that lead to well-paying middle class 
            careers. According to the author, there are millions of WIA 
            funds which are not connected to programs that provide 
            employment and training simultaneously.  

            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.  Proponents further argue 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.  
           
          5.  Opponent Arguments  :
          Hearing Date:  June 8, 2011                              AB 554  
          Consultant: Alma Perez                                   Page 5

          Senate Committee on Labor and Industrial Relations 
          









            None received.

          6.  Prior Legislation  :

            AB 2726 (B. Lowenthal) of 2010: Vetoed by Governor 
            This bill would have allowed apprenticeship programs approved 
            by DAS to be counted as job placement and directed WIA funds 
            to DAS approved apprentice occupations. AB 2726 was vetoed by 
            the Governor. In his veto message, the Governor stated that, 
            "The California Workforce Investment Board is currently 
            engaged with the local workforce investment boards, key 
            stakeholder and partners in the collaboration and coordination 
            of programs and services funded under the Workforce Investment 
            Act of 1998.  This bill would duplicate efforts; therefore, 
            this legislation is unnecessary." 


                                       SUPPORT
          
          California State Building and Construction Trades Council - 
          Sponsor
          California Labor Federation 
          

                                     OPPOSITION
          
          None received 













          Hearing Date:  June 8, 2011                              AB 554  
          Consultant: Alma Perez                                   Page 6

          Senate Committee on Labor and Industrial Relations