BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 56
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        SENATE THIRD READING
        SB 56 (Corbett)
        As Amended June 20, 2011
        Majority vote 

         SENATE VOTE  :25-15  
         
         LABOR & EMPLOYMENT         4-2  APPROPRIATIONS      12-5         
         
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        |Ayes:|Swanson, Allen, Furutani, |Ayes:|Fuentes, Blumenfield,     |
        |     |Yamada                    |     |Bradford, Charles         |
        |     |                          |     |Calderon, Campos, Davis,  |
        |     |                          |     |Gatto, Hall, Hill, Lara,  |
        |     |                          |     |Mitchell, Solorio         |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |Nays:|Morrell, Beth Gaines      |Nays:|Harkey, Donnelly,         |
        |     |                          |     |Nielsen, Norby, Wagner    |
        |     |                          |     |                          |
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         SUMMARY  :  Streamlines auditing requirements of the California 
        Apprenticeship Council.  Specifically,  this bill  :   

        1)Requires, when an apprenticeship program applies to create a new 
          program or expand an existing program, the following information to 
          be submitted to the Chief of the Division of Apprenticeship 
          Standards (DAS): 

           a)   A written plan that sets out the number of new apprentices 
             the applicant seeks to enroll during the next five years, 
             including the applicant's budget for training the new 
             apprentices and a detailed explanation of how the applicant 
             intends to provide sufficient funding to meet that budget;

           b)   Evidence that the applicant has obtained sufficient 
             commitments from employers to employ the new apprentices so as 
             to ensure, to the extent feasible, that the new apprentices will 
             be employed continuously throughout the term of the 
             apprenticeship;

           c)   Evidence that the applicant has, or will obtain, suitable 
             facilities to train the new apprentices; and,

           d)   A plan for the recruitment and selection of new apprentices, 







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             including advertising the new apprenticeship opportunities and 
             outreach to organizations that promote apprenticeship 
             opportunities to women and underrepresented minorities.

        2)Requires the Chief of DAS to disapprove the application where the 
          above requirements are not met or are deemed inadequate, as 
          specified, and set forth a process for an applicant to amend its 
          application.

        3)Eliminates the requirement in existing law that DAS randomly audit 
          approved apprenticeship programs during each five-year period, and 
          instead establishes the following new requirements for audits:

           a)   During an audit, DAS must attempt to contact a statistically 
             valid sample of apprentices that failed to complete the 
             apprenticeship program to ascertain the reasons why the 
             apprentices did not complete the program;

           b)   DAS is required to give priority in conducting audits to 
             programs that have been identified as having deficiencies;

           c)   DAS is required to audit all new or newly expanded 
             apprenticeship programs one year after the approval of creating 
             or expanding the program;

           d)   If DAS finds evidence that information provided to it by a 
             program has been purposefully misstated, it shall immediately 
             investigate and determine whether an audit is necessary;

           e)   If DAS determines that a program has been the subject of two 
             or more meritorious complaints within a five-year period, it 
             shall schedule an audit within three months; and,

           f)   If DAS determines that a program that has had at least two 
             graduating classes has an annual apprentice completion rate 
             below 50% of the average completion rate, it shall schedule the 
             program for an audit within three months.

        4)Requires each program to provide each apprentice, on at least a 
          semiannual basis, a statement showing specified information, 
          including the total number of hours of training and instruction 
          completed, and the number of hours required for graduation, and the 
          apprentice's expected graduation date.

        5)Requires programs to report apprentice registration, change of 







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          address, graduation, and termination data to DAS on a monthly basis 
          in an electronic format.

         FISCAL EFFECT  :  According to Assembly Appropriations Committee, there 
        will be minor absorbable costs to DAS to implement the bill.  DAS is 
        currently required to monitor apprenticeship programs, this bill will 
        lead to DAS prioritizing monitoring.

         COMMENTS  :  Current law requires the DAS to audit apprenticeship 
        programs every five years to ensure that state standards are being 
        met and that the apprentices are being safely and appropriately 
        trained.  However, according to DAS's most recent annual report from 
        2009, there were 680 state-approved apprenticeship programs, making 
        audit activities difficult.

        In place of the current auditing requirements, this bill focuses the 
        auditing process on programs that are new or newly expanded, as well 
        as programs that have low graduation rates, prior meritorious 
        complaints, or have purposefully misstated information to DAS.

        This bill also requires new or expanding programs to submit a written 
        report stating their long-term plans, their ability to meet those 
        plans, and a recruitment strategy that includes outreach to women and 
        underrepresented minorities.  This bill also establishes monthly 
        electronic reporting requirements so that DAS can track the progress 
        of the programs, as well as require reports be given to the 
        apprentice so he or she can keep track of his or her own progress.

        Please see the policy committee analysis for existing law and 
        additional comments.

         Analysis Prepared by  :    Lorie Erickson / L. & E. / (916) 319-2091 
        FN: 0001892