BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 509| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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. AB 509 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 AB 509 Page 3 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 AB 509 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) AB 509 Page 5 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, AB 509 Page 6 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 **** END ****