BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 509


                                                                    Page  1


          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          509 (Perea)


          As Amended  June 23, 2015


          Majority vote


           -------------------------------------------------------------------- 
          |ASSEMBLY:  | 78-0 | (May 14,      |SENATE: |27-13 | (August 31,     |
          |           |      |2015)          |        |      |2015)            |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |
           -------------------------------------------------------------------- 


          Original Committee Reference:  HIGHER ED.




          SUMMARY:  Exempts from the California 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  
          labor-management apprenticeship programs, provided that the  
          entity meets the requirements for the Eligible Training Provider  
          List (ETPL) and has not been removed from the ETPL for failure  
          to meet performance standards.


          The Senate amendments require the organization to be a  
          "labor-management" apprenticeship program in order to claim an  
          exemption from the Act pursuant to this bill.









                                                                     AB 509


                                                                    Page  2



          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.)


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          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 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  
          apprenticeship programs (see Existing Law).  









                                                                     AB 509


                                                                    Page  3



          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 DAS-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.


          Labor-management apprenticeship programs.  Apprenticeship  
          programs operate under apprenticeship training standards in  
          accordance with State and Federal laws.  The Labor Code Section  
          3075(a) establishes who may sponsor an apprenticeship program,  
          including a joint apprenticeship committee, a unilateral  
          management or labor apprenticeship committee, or an individual  
          employer.  In those crafts in which management and labor  
          organizations exist, each selects an equal number of members to  
          serve on the joint apprenticeship committee which determines the  
          standards for training and supervises the training of  
          apprentices.  This bill was amended in the Senate to specify  
          that only "labor-management" DAS-approved apprenticeship  
          programs may claim an exemption from the Act.  










                                                                     AB 509


                                                                    Page  4


          Analysis Prepared by:                                             
                          Laura Metune / HIGHER ED. / (916) 319-3960  FN:  
          0001341