BILL ANALYSIS Ó AB 2105 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2105 (Rodriguez) As Amended August 10, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |79-0 |(May 5, 2016) |SENATE: |37-0 |(August 15, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: J., E.D., & E. SUMMARY: Requires the Department of Consumer Affairs (DCA) to engage in a specified stakeholder process to update policies and remove barriers to facilitate the development of earn and learn training programs in the allied health professions. The stakeholder process is required to include all of the following: 1)A range of allied health workforce stakeholders including, but not limited to, relevant DCA licensure boards, the Division of Apprenticeship, representatives appointed by the board the California community college system, the California Workforce Development Board (CWDB), the State Department of Public Health, the Office of Statewide Health Planning and Development, employer and worker representatives, and community-based organizations. 2)A review of barriers that limit the use of earn and learn AB 2105 Page 2 training programs in the allied health professions, including those identified in the 2015 report Expanding Earn and Learn Models in the California Health Care Industry, as well as other relevant issues that include, but are not limited to, pre-licensure classifications in allied health occupations that would allow students, in a supervised setting, to gain experience in their chosen field before obtaining licensure, and the payment of wages while in a workplace-based training program. 3)Statutory barriers being shared with the relevant committees of the Legislature. 4)Completion of the process by January 1, 2020. AS PASSED BY THE ASSEMBLY, this bill required the California Workforce Development Board (CWD) to consider the recommendations in a specified report on "earn and learn" job training programs in the allied health professions for the purpose of determining whether any or all of the recommendations should be included within the CWD's work plan for the 2017-18 fiscal year or referred to another state entity for possible action. The Senate amendments delete the more general requirement to move forward on reviewing and implementing, where appropriate, the recommendations from the 2015 report Expanding Earn and Learn Models in the California Health Care Industry, and instead provide a specific stakeholder driven process for updating policies and removing entrance and advancement barriers in the allied health fields. EXISTING LAW: 1)Requires the CWD, in consultation with the Division of Apprenticeship Standards, to undertake a review of allied AB 2105 Page 3 health professions and produce a report by January 1, 2016. The report is required to address the following: a) Identification of "earn and learn" job training opportunities that meet the industry's workforce demands and that are in high-wage, high-demand jobs; b) Identification of specific requirements and qualifications for entry into "earn and learn" job training models; c) Establishment of standards for "earn and learn" job training programs that are outcome oriented and accountable. The standards are required to measure the results from program participation, including a measurement of how many individuals complete the program with an industry-recognized credential, as specified; d) Development of the means to identify and prepare a pool of qualified candidates seeking to enter "earn and learn" job training models. 1)Defines "earn and learn" to include, but not be limited to, a program that does either of the following: a) Combines applied learning in a workplace setting with compensation allowing workers or students to gain work experience and secure a wage as they develop skills and competencies directly relevant to the occupation or career for which they are preparing; or b) Brings together classroom instruction with on-the-job training to combine both formal instruction and actual paid work experience. 2)Defines "earn and learn" programs to include, but not be limited to, all of the following: a) Apprenticeships; b) Pre-apprenticeships; AB 2105 Page 4 c) Incumbent worker training; d) Transitional and subsidized employment, particularly for individuals with barriers to employment; e) Paid internships and externships; and f) Project-based compensated learning. FISCAL EFFECT: According to Senate Appropriations Committee pursuant to Senate Rule 28.8, negligible state costs. COMMENTS: In December 2015, the CWDB and the California State Division of Apprenticeship Standards released the study, Expanding Earn and Learn Models in the California Health Care Industry, pursuant to the requirements of AB 1797 (Rodriguez), Chapter 157, Statutes of 2014. The report noted that while there were many advantages to expanding apprenticeship programs in the allied health industries, there were also barriers, including, but not limited to, the following: 1)No clear career ladders for entry-level workers to advance into clinical roles, or for lateral movement from one health care role into another; 2)Few residency programs or even commitments to hire prior to completion of the license or credential; 3)Misalignment of time-based standards used for registered apprenticeships and the competency-based training models commonly used in health care fields; 4)No funding available for public health care employers to invest in program development, outreach, administration (e.g., AB 2105 Page 5 record-keeping and journey-level supervision of apprentices), or, more fundamentally, the industry model of wage progression; 5)Limited flexibility or agility by public education institutions to adopt and implement new curricula. As an example, it can take more than a year to approve new curricula by a community college and longer if an existing course must be modified to include apprenticeship indicators; 6)Licensing boards have traditionally acted as gatekeepers to their professions and have not been open to expanding entry into some of the skilled health care professions for fear of diminishing wages. There is also evidence that accreditation boards can be reluctant to create flexible or alternative pathways to entry over concerns that this will lower quality standards; 7)Misaligned funding incentives for community college participation. In this example, the reimbursement rate for a general education credit is approximately $8.50 per hour, as compared to $5.46 per hour for students taking apprenticeship classes. This creates a structural disincentive for colleges to partner with employers and unions on allied health-related programs; 8)Poor track record in maintaining funding levels for public apprenticeship programs. Funding issues may be deterring potential employers and partners from participating in a new round of program development; and 9)Lack of cross-sector collaboration on the development of new apprenticeship programs, especially from the federal entities which administer the Medicare and Medicaid programs. California Employment: California's labor force is comprised of AB 2105 Page 6 approximately 19 million people with an estimated 17.8 million people being employed. Chart 1 shows 2015 employment by industry sector. Based on total employment, the trade, transportation, and utilities sector is largest, employing 2.9 million people, which is 15.5% of all jobs. The Education and Health Services sector is the third highest industry sector in California, representing 12.9% of the state's workforce. Chart 2 displays projected job growth by industry sectors for the period of 2012 to 2022. As discussed in more detail below, future growth of the California economy is highly linked to the state's adaptation to globalization, including the state's ability to link goods and services across state and regional boundaries, as well as to prepare a rapidly changing workforce for the 21st Century economy. The Employment Development Department's (EDD's) 2012 to 2022 forecast estimates that California's labor force employment will reach 18.7 million, including self-employment, unpaid family workers, private household workers, and farm and nonfarm workers. This estimate represents a 14.9% increase over the 10 year period with an additional 2,296,700 being added to nonfarm employment. As shown in Chart 2, 72% of the increase in jobs is expected in four industry sectors: education and health care services; professional and business services; leisure and hospitality; and retail trade. Approximately 25% of the project job growth will be in the educational services (private), health care, and social assistance sector, accounting for 576,300 jobs during the 10-year period. EDD estimates that as the population grows and demographics change, the demand for workers in this sector will remain high. AB 2105 Page 7 The greatest concentration of job gains is projected to occur in the following subsectors: Social assistance (201,300); Ambulatory health care services (181,900); Educational services (private) (79,200). Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090 FN: 0003973