BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2412


                                                                    Page  1





          Date of Hearing:  April 19, 2016


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                 Jose Medina, Chair


          AB 2412  
          (Chang) - As Amended March 17, 2016


          SUBJECT:  Community colleges:  incentive grant program for  
          completion of industry-recognized credentials.


          SUMMARY:  Establishes an incentive grant program for the  
          completion of industry-recognized credentials, as defined,  
          commencing with the 2017-18 academic year.  Specifically, this  
          bill:  


          1)Establishes an incentive grant program to be by the California  
            Community Colleges (CCC) Chancellor's Office (CCCCO), for the  
            completion of industry-recognized credentials in specified  
            occupational areas by students enrolled at participating  
            campuses of the CCC. 


          2)Specifies that said grants shall be awarded by the CCCCO  
            beginning in the 2017-18 academic year and for each academic  
            year thereafter.


          3)Requires the CCCCO to provide each participating CCC campus  
            with $1,000 in grants for each eligible industry-recognized  
            credential in specified occupational areas earned by a CCC  
            student.








                                                                    AB 2412


                                                                    Page  2







          4)Defines "industry-recognized credential" as a certification  
            that a student receives from an independent, third-party,  
            certifying entity using predetermined standards for knowledge,  
            skills, and competencies, resulting in the award of a  
            credential that is nationally recognized and addresses a  
            critical local or statewide economic need.


          5)Specifies that each campus of the CCC that participates in the  
            program shall maintain documentation of student attainment of  
            industry-recognized credentials that are eligible for  
            incentive grants, and report that data to the CCC Chancellor. 


          6)Requires the CCCCO to verify compliance on an annual basis.   
            If it is found that a participating campus failed to comply  
            with the documentation requirement or intentionally provided  
            incorrect data regarding the amount of credentials earned, all  
            incentive grant funds received by that campus for that  
            academic year shall be refunded to the state.


          7)Requires the CCCCO to distribute the grants and establish  
            procedures and timelines for participating campuses to report  
            earned credentials.


          8)Specifies that a CCC campus that receives incentive grants  
            shall use those funds to improve its workforce development and  
            career technical education programs.   Funds may be used for  
            equipment upgrades, supply purchases, program expansion, or  
            any other use that would improve campus workforce education  
            and career technical education programs.  


          9)Specifies that incentive grant funds shall not be used to fund  
            the salaries or benefits of personnel in these departments in  








                                                                    AB 2412


                                                                    Page  3





            which students are earning industry-recognized credentials.


          10)Requires the CCCCO to work with local workforce boards,  
            businesses, industry, the Employment Development Department,  
            and the California Workforce Development Board to identify  
            industry-recognized credentials that are in high demand based  
            on regional and statewide needs and employment projections.


          11)Requires the CCCCO and said working group to prioritize all  
            of the following criteria when selecting industry-recognized  
            credentials that shall be eligible for funding, as specified:


             a)   The relevance of the certificate to the labor market  
               needs of the state and relevant region's competitive  
               industry sectors and industry clusters;


             b)   The relevance to the state's need to fill skills gaps  
               and skills shortages in the economy, including those at the  
               state and regional level; and,


             c)   The projected wages and rates of employment placement  
               for students entering the labor market.


          12)Requires that the criteria referenced in 11 (b) above, shall  
            be prioritized by the CCCCO annually and updated each year  
            thereafter to reflect changing and new workforce needs.


          13)Specifies that the updated criteria shall be posted on the  
            Internet Web site of the CCCCO and distributed to instructors  
            and students in career technical education classes.










                                                                    AB 2412


                                                                    Page  4





          14)Requires the CCCCO to submit a report to the Legislature on  
            or before December 1, 2018, and on or before December 1 every  
            three years thereafter. 


          15)Specifies that the report required shall include, but not  
            necessarily be limited to, the amount of funds allocated, as  
            specified, and a list of the industries for which the funds  
            were allocated.


          EXISTING LAW:  Establishes the CCC and specifies that the CCC  
          Board of Governors shall prescribe minimum standards or the  
          formation and operation of the CCC (Education Code Sections  
          66770 and 70900).


          FISCAL EFFECT:  Unknown


          COMMENTS:  Background.  California Community Colleges lead the  
          state and nation in providing postsecondary career technical  
          education and training.  Serving more than 2.1 million students,  
          the 113 community colleges provide workforce training, basic  
          skills education, and transfer preparation. Students can enroll  
          in associate degree and certificate programs in 350 fields of  
          study.  The colleges also offer apprenticeship programs,  
          short-term training aligned to third-party credentials, and  
          incumbent worker training to upgrade skill sets in various  
          industry sectors.


          According to the CCCCO, employers currently struggle to find  
          workers who possess the necessary skills to fill job openings,  
          and this skills gap is projected to grow.  By 2025, 30 percent  
          of all job openings in California - or a total of 1.9 million  
          jobs - will require some form of postsecondary education short  
          of a four-year degree.  California's education pipeline is not  
          keeping pace with the higher levels of skills and education  








                                                                    AB 2412


                                                                    Page  5





          required by employers and must significantly increase the number  
          of individuals with industry-valued, middle-skill degrees,  
          certificates and credentials.


          Purpose of this measure.  According to the author, as of  
          February of this year, California's unemployment rate was at 5.7  
          percent, 0.8 percent higher than the national unemployment rate.  
           Additionally, by the year 2025, the Public Policy Institute  
          projects that the state will face a significant skilled  
          workforce gap; failing to provide the workforce with enough  
          qualified individuals that have received some college education,  
          but not having earned a 4-year degree.


          The author argues that, "enactment of this legislation will  
          prompt important change within the community college system to  
          put greater emphasis on career technical education and workforce  
          development."


          Task Force on Workforce, Job Creation, and a Strong Economy.   
          California's community colleges have a strong career technical  
          education mission and, with added emphasis and prioritization,  
          are well positioned to close this impending skills gap.  The CCC  
          Board of Governors launched the Task Force on Workforce, Job  
          Creation and a Strong Economy to address the projected shortfall  
          in middle-skill workers.  The task force, comprised of both  
          internal and external stakeholders, was convened to recommend a  
          series of policies and practices to increase the production of  
          industry-valued degrees and credentials. 


          The 25 recommendations in the task force's report, released in  
          August 2015, build upon current college efforts and address  
          barriers to enhancing the capacity of the CCC to prepare  
          students for high-value jobs in regions throughout the state.    
          The recommendations are the culmination of extensive input from  
          more than 1,200 stakeholders during a nine-month period to  








                                                                    AB 2412


                                                                    Page  6





          identify actions that can be taken to provide policy guidance,  
          regulatory review, and legislative and budgetary actions with  
          the goal of increasing the number of students obtaining career  
          technical education degrees and certificates - crucial for  
          closing California's skills gap.  The importance of creating  
          incentives, streamlining processes, and identifying and  
          showcasing best practices was an overarching theme of the  
          deliberations and the final recommendations.

          This measure calls for the creation of an incentive grant  
          program for the completion of industry-recognized career  
          technical education credentials.

          Governor's budget proposal.  The Governor's 2016-17 Budget  
          Proposal creates the Strong Workforce Program, which is designed  
          to allow CCC campuses to expand access to career technical  
          education courses and programs and to implement a regional  
          planning and accountability structure to meet regional workforce  
          needs.  The Administration proposes $200 million to support this  
          program.

          Policy consideration.  As drafted, it is unclear as to the  
          funding structure of this measure and how the incentive grant  
          will be funded.  

          Moving forward, the author may wish to clarify what funding  
          source is intended to be used in order for the CCCCO to  
          implement this measure. 

          If the author intends on drawing from some of the Strong  
          Workforce Program dollars, the author may wish to take note that  
          Committee staff understands that said funding for the program  
          may not be available for the said purposes describe within this  
          measure.

          REGISTERED SUPPORT / OPPOSITION:











                                                                    AB 2412


                                                                    Page  7






          Support


          None on file.




          Opposition


          Academic Senate for California Community Colleges




          Analysis Prepared by:Jeanice Warden / HIGHER ED. / (916)  
          319-3960