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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          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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          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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                                                                    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


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