BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 618             
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          |Author:    |Pavley                                               |
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          |Version:   |February 27, 2015                      Hearing Date: |
          |           |    April 8, 2015                                    |
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          |Urgency:   |No                     |Fiscal:     |Yes             |
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          |Consultant:|Lenin Del Castillo                                   |
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          Subject:  Educational apprenticeships:  grant program

            SUMMARY
          
          This bill would establish a competitive educational  
          apprenticeship program to be administered by the Superintendent  
          of Public Instruction, subject to funding being made available  
          in the annual Budget Act. 

            BACKGROUND
          
          Existing law establishes apprenticeship training programs which  
          are comprehensive plans that contain, among other things,  
          apprenticeship program standards, program regulations, related  
          and supplemental instruction course outlines, and policy  
          statements for the effective administration of that  
          apprenticeship training program.  State funds provided for  
          apprenticeships are appropriated to the Chancellor's Office of  
          the California Community Colleges (CCC) and passed through to  
          local education agencies that provide the instruction.   
          Apprenticeships are paid education work programs that pair adult  
          students with skilled workers for supervised, hands-on learning.  
           Apprenticeships programs are commonly sponsored by business or  
          labor unions that help design and support the programs.  Program  
          sponsors must partner with a school district or community  
          college and be approved by the state's Division of  
          Apprenticeship Standards to qualify for related supplemental  
          instruction (RSI) funding.  The CCC works closely with the  
          division and workforce partners to direct funds to high quality  
          apprenticeship programs meeting state standards.  (Education  







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          Code § 79140 et. seq.)

          Existing law establishes various career technical education  
          (CTE) programs for public schools including Regional  
          Occupational Center Programs (ROCP) that allow students from  
          multiple schools or districts to participate in career technical  
          training programs regardless of the geographical location of  
          their residence in a county or region.  Existing law authorizes  
          the following types of ROCP operational models:  county ROCP,  
          joint powers agency ROCP, and a single district ROCP.   
          (Education Code § 52301 et. seq.)

          AB 86 (Committee on Budget), Chapter 48, Statutes of 2013,  
          created the California Career Pathways Trust which provided  
          one-time competitive grants to school districts, county  
          superintendents of school, charter schools, and community  
          college districts.  The 2013 and 2014 budgets provided a total  
          of $500 million in Proposition 98 General Fund for K-14 career  
          pathways programs that accomplish the following:

             1.   Fund specialists in work-based learning, as defined in  
               Section 51760.1 of the Education Code, to convene, connect,  
               measure, or broker efforts to establish or enhance a  
               locally defined career pathways program that connects  
               school districts, county superintendents of schools,  
               charter schools, and community colleges with business  
               entities.

             2.   Establish regional collaborative relationships and  
               partnerships with business entities, community  
               organizations, and local institutions of postsecondary  
               education.

             3.   Develop and integrate standards-based academics with a  
               career-relevant, sequenced curriculum following  
               industry-themed pathways that are aligned to high-need,  
               high-growth, or emerging regional economic sectors. 

             4.   Provide articulated pathways to postsecondary education  
               aligned with regional economies.

            ANALYSIS
          
          This bill establishes the Education Apprenticeship Grant  








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          Program.  Specifically, this bill:

             1.   Provides that the purpose of the program is to assist in  
               the development of educational apprenticeship programs  
               throughout the state.

             2.   Requires program grants to be allocated by the  
               Superintendent of Public Instruction (SPI) on a competitive  
               basis, subject to funding being made available in the  
               annual Budget Act.

             3.   Requires both of the following criteria to be applied by  
               the SPI to determine the competitive value of an  
               application:

                  A.        The apprenticeship program is new, and  
                    provides an innovative curriculum for its pupils.

                  B.        The apprenticeship program provides  
                    opportunities for, and clear pathways to, gainful  
                    employment in emerging industries that are relevant to  
                    the local economy.

          STAFF COMMENTS
          
          1.   Need for the bill.  According to the author's office, youth  
               unemployment is one of the most serious challenges to  
               California's economic recovery.  Job prospects are  
               especially dim for those who have not yet earned a college  
               degree, those who do not plan on going to college, or who  
               lack practical work experience.  This lack of opportunity  
               holds young people back from fully participating in society  
               and can stunt professional and personal growth.  The  
               author's office indicates that youth individuals need  
               opportunities to learn vital job skills and succeed  
               professionally and one of the most effective ways to equip  
               young people with professional skills is to support  
               educational apprenticeships as part of the school  
               curriculum.  

          2.   Apprentices.  According to the Legislative Analyst Office's  
               Proposition 98 Education Analysis for the 2015-16 Budget,  
               there are more than 50,000 apprentices in various trades.   
               Specifically, in early 2015, California had 53,413 active  








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               apprentices in 47 trades, ranging from glazing to motion  
               picture work.  The most common apprenticeships are in the  
               construction trades, providing training for carpenters,  
               plumbers, and electricians.  Apprenticeships in public  
               safety, primarily for correctional workers and  
               firefighters, are the second most common.  

          3.   Status of funding.  The 2014-15 Budget Act includes  
               approximately $22.9 million in Proposition 98 General for  
               apprenticeship related supplemental instruction (RSI).  The  
               2015-16 Governor's Budget proposes to increase this amount  
               by $14 million, which would bring the total amount for  
               existing apprenticeships to about $37 million.  This  
               increase is intended to restore apprenticeship slots to  
               their pre-recession level and raise the RSI rate from $5.04  
               to $5.46 to match the community college noncredit hourly  
               rate.  

               The 2015-16 Governor's Budget also proposes $15 million in  
               Proposition 98 General Fund to support the development of  
               apprenticeships in high-demand occupations, including  
               healthcare, advanced manufacturing, information technology,  
               and jobs in renewable energy.  Unlike the existing  
               apprenticeship funds, the Governor's Budget proposes that  
               these funds be used for purposes other than reimbursing  
               providers for related supplemental instruction (RSI), such  
               as aligning coursework and conducting studies to determine  
               regional needs for apprentices.  The Committee may wish to  
               consider whether the new grant program as proposed by this  
               measure is necessary given that it duplicates much of what  
               is proposed in the Governor's Budget.  

          4.   Related and previous legislation.  

               SB 923 (Pavley, 2014) proposed to establish the Educational  
               Apprenticeship Innovation Act whereby competitive grants  
               would be awarded to applicant school districts, county  
               offices of education, charter schools, and community  
               colleges for purposes of promoting apprenticeships,  
               preapprenticeships, and career pathways.  This bill was  
               vetoed with the following veto message:

                    This bill would create the Educational Apprenticeship  
                    Innovation Prize (EdPrize), a competitive grant  








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                    program that would be administered by the California  
                    Department of Education to promote apprenticeship,  
                    pre-apprenticeship and career pathways between local  
                    schools, community colleges, and local businesses. 

                    While the bill is intended to provide EdPrize  
                    applicants special consideration under the California  
                    Career Pathways Trust, it instead creates a new and  
                    duplicative program that does not have an  
                    appropriation. 

                    I share the author's sentiments about the importance  
                    of apprenticeship programs. The state has invested  
                    $500 million dollars over the past two years to fund  
                    the Career Pathways Trust. This investment of public  
                    funds encourages partnerships between K-12 schools,  
                    community colleges and the business community, and  
                    includes apprenticeship programs. I strongly encourage  
                    apprenticeship programs to apply for the $250 million  
                    that is currently available.
               
               Chapter 48, Statutes of 2013 (AB 86, Committee on Budget)  
               established the California Career Pathways Trust and  
               appropriated $250 million in one-time competitive grants  
               for its purposes.

               Chapter 433, Statutes of 2012 (SB 1070, Steinberg)  
               established the Career Technical Education Pathways Program  
               to improve linkages and career technical education pathways  
               between high schools and community colleges.

            SUPPORT
          
          None received.

            OPPOSITION
           
           Small School Districts' Association

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