BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 509|
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THIRD READING
Bill No: AB 509
Author: Perea (D)
Amended: 6/23/15 in Senate
Vote: 21
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 8-0, 6/22/15
AYES: Hill, Berryhill, Block, Galgiani, Hernandez, Jackson,
Mendoza, Wieckowski
NO VOTE RECORDED: Bates
SENATE LABOR & IND. REL. COMMITTEE: 4-1, 7/13/15
AYES: Mendoza, Jackson, Leno, Mitchell
NOES: Stone
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 78-0, 5/14/15 (Consent) - See last page for
vote
SUBJECT: California Private Postsecondary Education Act of
2009: exemptions
SOURCE: California Workforce Association
DIGEST: This bill creates an exemption from the California
Private Postsecondary Education Act (Act) for preapprenticeship
programs offered by a bona fide organization, association or
council that offers preapprenticeship training programs on
behalf of one or more labor-management apprenticeship programs
approved by the Division of Apprenticeship Standards, if certain
conditions are met.
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Page 2
ANALYSIS:
Existing law:
1)Establishes the California Private Postsecondary Education Act
(Act) of 2009 until January 1, 2015, and requires the Bureau
of Private Postsecondary Education (Bureau) within the
Department of Consumer Affairs to, among other things, to
review, investigate and approve private postsecondary
institutions, programs and courses of instruction pursuant to
the Act and authorizes the Bureau to take formal actions
against an institution/school to ensure compliance with the
Act and even seek closure of an institution/school if
determined necessary. The Act also provides for specified
disclosures and enrollment agreements for students,
requirements for cancellations, withdrawals and refunds, and
that the Bureau shall administer the Student Tuition Recovery
Fund to provide refunds to students affected by the possible
closure of an institution/school. (Education Code (EC) §
94800 et seq.)
2)Exempts an institution offering educational programs sponsored
by a bona fide trade, business, professional, or fraternal
organization, solely for that organization's membership from
Bureau oversight. (EC § 94874 (b))
This bill:
1)Creates an exemption from the Act for preapprenticeship
programs offered by a bona fide organization, association or
council that offers preapprenticeship training programs on
behalf of one or more labor-management apprenticeship programs
approved by the Division of Apprenticeship Standards, if the
following conditions are met:
a) It is not on the Eligible Training Provider List (ETPL)
established and maintained by the California Workforce
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Investment Board (CWIB) but has met the requirements for
placement on the list.
b) It is on the ETPL established and maintained by the CWIB
and meets the requirements for continued listing.
1)Provides that if an organization, association, or council has
been removed from the ETPL for failure to meet performance
standards, it is not exempt until it meets all applicable
performance standards.
Background
The Bureau has oversight of all the non-exempt, private
postsecondary institutions located in California. AB 48
(Portantino, Chapter 310, Statutes of 2009) contained numerous
exemptions to state-level oversight, the most notable of which
is an exemption from BPPE authority and regulation under the Act
granted to for-profit and nonprofit regionally accredited
institutions. 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
apprenticeship programs.
The federal Workforce Innovation and Opportunity Act (WIOA),
formerly known as the federal Workforce Investment Act (WIA) of
1998, provides for workforce investment activities, including
activities in which states may participate and also contains
various programs for job and employment investment, including
work incentive programs, as specified. Following passage of the
federal WIA in 1998, 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. Local chief elected
officials in a local workforce development area were required to
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Page 4
form, pursuant to specified guidelines, a Local Workforce
Investment Board (Local WIB) to plan and oversee the workforce
investment system at the local level. Under WIA, funds were
distributed to the states based on formulas that consider
unemployment rates and other economic and demographic factors.
California's ETPL was established in compliance with WIA for the
purpose of providing customer-focused employment training for
adults and dislocated workers. Training providers who are
eligible to receive Individual Training Accounts (ITAs) through
WIA Title I-B funds are listed on the ETPL. EDD is responsible
for accepting information on training providers from local
boards, compiling a single statewide list of eligible training
providers and disseminating the statewide ETPL to local boards
for distribution to their One-Stop Career Centers. Programs are
required to be periodically determined as eligible to continue
on the ETPL. This determination is to be made within 18 to 24
months of their initial listing and annually thereafter.
The author and sponsor are concerned that WIA funds cannot be
used to operate certain pre-apprenticeship programs because
these programs are not on the ETPL required by WIA and are not
able to prove eligibility because of the exemption for
apprenticeship programs in the Private Postsecondary Education
Act. This bill seeks to create an avenue for these programs to
be eligible for WIA funding and that by exempting a bona fide
organization, association, or council that offers
pre-apprenticeship training programs on behalf of one or more
labor-management apprenticeship programs approved by the
Division of Apprenticeship Standards WIBs can utilize WIA
funding for pre-apprenticeship programs which the Author states
are "vital to maintaining a healthy workforce in California."
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified8/18/15)
California Workforce Association (source)
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Building and Construction Trades of Fresno, Madera, Kings and
Tulare Counties
Building and Construction Trades of Stanislaus, Merced,
Tuolumne and Mariposa Counties
OPPOSITION: (Verified8/18/15)
Air Conditioning Trade Association
American Fire Sprinkler Association
Associated Builders and Contractors of California
Associated Builders and Contractors -San Diego Chapter
Plumbing-Heating-Cooling Contractors Association of California
Western Electrical Contractors Association
ARGUMENTS IN SUPPORT: Supporters state that this bill will
create parity between pre-apprenticeship and apprenticeship
programs offered by the same institutions, as apprenticeship
programs are already exempt from the Act. Supporters also state
that pre-apprenticeships programs are vital to maintaining a
healthy workforce in California, prepare students for entrance
into sate approved apprenticeship programs and that exempting
them from the Act will ensure California continues to have a
skilled labor workforce.
ARGUMENTS IN OPPOSITION: Opponents are concerned with the
inclusion of the term "labor-management" in the bill and the
result of a very strict limit with the inclusion of that term
for who is exempt from the Act. Opponents state that all other
types of programs will have to undergo a more lengthy process to
receive approval and that fully qualified and Division of
Apprenticeship Standard approved unilateral programs will be
given a higher barrier to overcome than the exact same program
that happens to be a "labor-management" program.
ASSEMBLY FLOOR: 78-0, 5/14/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
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Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Lopez, Low,
Maienschein, Mathis, Mayes, McCarty, Melendez, Mullin,
Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Linder, Medina
Prepared by:Sarah Mason / B., P. & E.D. / (916) 651-4104
8/20/15 14:12:23
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