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