BILL ANALYSIS Ó
AB 509
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Date of Hearing: April 21, 2015
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Jose Medina, Chair
AB 509
(Perea) - As Amended March 26, 2015
SUBJECT: California Private Postsecondary Education Act of
2009: exemptions
SUMMARY: Exempts from the Private Postsecondary Education Act
(Act) and related oversight by the Bureau of Private
Postsecondary Education (Bureau) a bona fide organization,
association, or council that offers preapprenticeship training
programs, on behalf of one or more Division of Apprenticeship
Standards (DAS)-approved apprenticeship programs.
EXISTING LAW: Under the Act, establishes the Bureau within the
Department of Consumer Affairs and provides for Bureau oversight
and regulation of California private postsecondary institutions.
The Act also provides for a variety of exemptions from
oversight by the Bureau for specific types of institutions,
largely those where oversight is already provided by other
entities. Among the exemptions are institutions offering
educational programs sponsored by a bona fide trade, business,
professional, or fraternal organization, solely for that
organization's membership. (Education Code Section 94800 et
seq.)
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FISCAL EFFECT: Unknown
COMMENTS: Background. Under the federal Workforce Investment
Act (WIA) states are required to establish a list of providers
eligible to receive WIA funds for training services provided to
WIA clients. In California, this statewide directory is known
as the Eligible Training Provider List (ETPL). The California
Workforce Investment Board (CWIB) is responsible for
implementing policy and procedures regarding WIA and governing
the operation of the ETPL.
Among other program quality and performance based provisions,
CWIB requires private postsecondary educational providers to
have an Approval to Operate from the Bureau prior to being
listed on the ETPL. Alternatively, an institution that is
exempt from Bureau oversight may provide verification that the
provider is exempt from the Act.
Currently, construction trades unions that are registered with
the Joint Apprenticeship and Training Committee of the State of
California, Department of Industrial Relations, Division of
Apprenticeship Standards for purposes of their apprentice
training, are exempt from the Bureau for purposes of
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apprenticeship programs (see Existing Law).
According to the author, the Fresno Regional Workforce
Investment Board's multi-craft pre-apprentice training is being
conducted by the Fresno/ Madera/ Tulare/ Kings Building Trades
Council, a consortium of the building trades unions across the
area. The consortia is not approved by the Division of
Apprenticeship Standards for purposes of the pre-apprentice
program and, because they are providing pre-apprenticeship
programs to students beyond their own membership, they do not
fall under existing exemptions provided in the Act. Therefore,
are required to obtain Bureau approval prior to being placed on
the ETPL.
Purpose of this bill. The author argues that building trades
council organizations are not private postsecondary educational
institutions and should not be subject to the provisions of the
Act or the oversight of the Bureau. This bill would provide an
exemption from the Act, and the related oversight and consumer
protection provided by the Bureau, for a bona fide organization,
association, or council that offers preapprenticehsip training
programs, on behalf of one or more Division of Apprenticeship
Standards-approved apprenticeship programs. Thereby allowing
these institutions to be placed on the ETPL, and receive WIA
funds, without having to obtain approval from the Bureau.
Committee consideration. As previously noted, this bill is
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intended to ensure trade organizations approved by DAS for
apprenticeship programs can be placed on the ETPL for purposes
of offering pre-apprenticeship programs without having to obtain
Bureau approval. The majority of exemptions provided in the Act
are based on (1) appropriate oversight being provided by another
entity, or (2) a minimal financial risk to public funds or to
the students. DAS approves and provides oversight of
apprenticeship programs, but not of pre-apprenticeship programs.
Meaning that, as currently drafted, there is no clear oversight
required in this bill for pre-apprenticeship programs; these
programs receive potentially significant public funding through
WIA. The author has stated that the intent of this bill is to
provide a pathway for these institutions to be placed on the
ETPL. Placement on the ETPL requires institutions to meet
initial and ongoing program quality and student protection
measures.
Proposed amendment. The Committee and author may wish to add a
requirement, as drafted below, that in order to obtain and
maintain exemption from the Act, these institutions must qualify
for initial and continued placement on the ETPL. An institution
that is removed from the ETPL would be required to obtain Bureau
approval in order to continue offering pre-apprenticeship
programs.
94874. Except as provided in Section 94874.2, the following are
exempt from this chapter:
(b) (2) A bona fide organization, association, or council that
offers preapprenticeship training programs, on behalf of one or
more Division of Apprenticeship Standards-approved
apprenticeship programs, that meets all of the following
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requirements:
(i) An organization, association, or council that is either:
(A) Not currently on the Eligible Training Provider List that
has met the requirements for initial placement on the Eligible
Training Provider List; or,
(B) Currently on the Eligible Training Provider List that has
met the requirements for continued placement on the Eligible
Training Provider List.
(ii) The organization, association, or council has not been
removed from the Eligible Training Provide List for failure to
meet performance standards. An organization, association or
council that at any time is removed from the Eligible Training
Provider List for failure to meet performance standards may not
claim exemption from this chapter until such performance
standards are met.
REGISTERED SUPPORT / OPPOSITION:
Support
California Workforce Association (Sponsor)
Building and Construction Trades of Fresno, Madera, Kings and
Tulare Counties
Building and Construction Trades of Stanislaus, Merced, Tuolumne
and Mariposa Counties
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Opposition
None on File
Analysis Prepared by:Laura Metune / HIGHER ED. / (916) 319-3960