BILL ANALYSIS Ó
AB 509
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
509 (Perea)
As Amended June 23, 2015
Majority vote
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|ASSEMBLY: | 78-0 | (May 14, |SENATE: |27-13 | (August 31, |
| | |2015) | | |2015) |
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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
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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
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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
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Analysis Prepared by:
Laura Metune / HIGHER ED. / (916) 319-3960 FN:
0001341