BILL ANALYSIS Ó AB 1870 Page 1 Date of Hearing: May 7, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 1870 (Alejo) - As Introduced: February 19, 2014 Policy Committee: LaborVote:5-1 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill makes changes to existing law related to the distribution of training contributions by the California Apprenticeship Council (CAC) to approved apprenticeship programs. Specifically, this bill provides that if there are two or more approved multiemployer apprenticeship programs serving the same craft or trade and geographic area for which the training contributions were made to CAC, the grant shall be divided among "all the approved multiemployer apprenticeship programs serving the same craft or trade in California" based on the number of apprentices registered in each program. FISCAL EFFECT No direct state impact. The bill results in a redistribution of existing funds. COMMENTS 1)Purpose . According to the sponsor, the State Building and Construction Trades Council of California, this bill will help ensure that every apprenticeship program in California receives an equitable share of grants distributed by the CAC. They contend the current funding mechanism determine the amount provided to each program results in a disproportionate distribution of funds to a limited number of programs. 2)Background . Apprenticeship programs can operate on a county or other local regional form, or on a statewide basis. The sponsor contends that county level or regional based [joint apprenticeship training committee (JATC)] apprenticeship programs have a much higher graduation rate than unilateral AB 1870 Page 2 programs that operate on a multi-county or statewide basis but receive a disproportionate amount of funding. For example, according to the Division of Apprenticeship Standards, JATCs graduated 712 inside wiremen/sound and communication installers in 2012, over 80% of all graduates statewide for electrical worker apprenticeship programs. Despite JATCs graduation rates, the statewide programs received $121,492 from the total annual training funds for this craft while the JATC's received $48,245. Further, only 14 of the 25 eligible JATC's received any funds at all. 3)Support . Supporters, including the State Building and Construction Trades Council, state, "Without this change, certain programs, both union and nonunion, that cover multiple geographic areas will unfairly be allowed to receive contributions in excess of the number of apprentices registered in the program. This becomes particularly problematic when statewide programs draw money from areas that the program is authorized to serve but doesn't actually serve." 4)Opposition . Some contractors, including the Western Electrical Contractors Association (WECA) oppose this measure. They contend the bill changes the long-standing method by which the state allocates apprenticeship training grants without increasing the level of state funding for this training, thereby creating some winners and losers. Analysis Prepared by : Misty Feusahrens / APPR. / (916) 319-2081