BILL ANALYSIS Ó
AB 2412
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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.
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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
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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.
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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
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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
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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:
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Support
None on file.
Opposition
Academic Senate for California Community Colleges
Analysis Prepared by:Jeanice Warden / HIGHER ED. / (916)
319-3960