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