BILL ANALYSIS
Senate Committee on Labor and Industrial Relations
Mark DeSaulnier, Chair
Date of Hearing: June 23, 2010 2009-2010 Regular
Session
Consultant: Alma Perez Fiscal:Yes
Urgency: No
Bill No: AB 2726
Author: Bonnie Lowenthal
Version: As amended June 21, 2010
SUBJECT
Employment Development Department: one-stop career centers:
training: apprenticeship.
KEY ISSUE
Should the Legislature direct the state and local Workforce
Investment Boards to ensure that programs and services funded by
the Workforce Investment Act (WIA), and directed towards
apprenticeable occupations, work in coordination with one or
more state-approved apprenticeship programs?
PURPOSE
To incorporate apprenticeship programs to existing training and
job placement options for workers.
ANALYSIS
The existing federal Workforce Investment Act of 1998 provides
for activities and programs for job training and employment
investment in which states may participate, including work
incentive and employment training outreach programs.
Under existing law , the California Workforce Investment Act
(WIA) provides for workforce investment activities that increase
the employment, occupational attainment, and retention and
earnings of participants, which are aimed at improving the
quality of the workforce, reduce welfare dependency, and enhance
the productivity and competitiveness of the nation's economy.
Existing law establishes the California Workforce Investment
Board (CWIB), and requires the CWIB to assist the Governor with
promoting the continuous development and oversight of a
well-educated and highly skilled workforce. Existing law also
requires each local workforce investment board to establish at
least one full service one-stop career center in the local
workforce investment area that, among other things, makes job
outreach, intake, job search and placement assistance, and other
related services available in one location.
Existing law provides a framework for promoting and developing
apprenticeship training through the California Apprenticeship
Council (CAC) and the Division of Apprenticeship Standards (DAS)
within the Department of Industrial Relations (DIR). DAS
enforces apprenticeship standards for, among other things,
wages, hours, working conditions, classroom instruction and the
specific skills required for state certification as a
journeyperson in an apprentice occupation.
Existing law requires that all apprenticeship programs be
approved by the Chief of the Division of Apprenticeship
Standards. Existing law empowers the Chief to approve
apprenticeship programs in any trade anywhere in the state,
including cities and trade areas, if the apprentice training
needs justify the creation of a program, as specified. In
addition, existing law requires that the Division of
Apprenticeship Standards randomly audit apprenticeship programs
every five years to ensure that programs are in compliance with
Division standards.
This Bill would allow apprenticeship programs approved by the
Division of Apprenticeship Standards (DAS) to be counted as job
placement and would direct the state and local Workforce
Investment Boards to ensure that programs and services funded by
WIA work in coordination with apprenticeship programs.
Specifically, this bill would:
Specify that entrance into on-the-job training through
an apprenticeship program approved by the Division of
Apprenticeship Standards shall be considered placement into
Hearing Date: June 23, 2010 AB 2726
Consultant: Alma Perez Page 2
Senate Committee on Labor and Industrial Relations
a job.
Direct the state and local Workforce Investment Boards
to ensure that programs and services funded by WIA and
directed to apprenticeable occupations, including
pre-apprenticeship training, work in coordination with one
or more state-approved apprenticeship programs, when an
applicable program is available within the geographic area.
COMMENTS
1. Need for this bill?
As noted above, the Division of Apprenticeship Standards
administers the state's apprenticeship law and enforces
apprenticeship standards for wages, hours, working conditions
and the specific skills required for state certification as a
journey person in an apprenticeable occupation. The WIA
requires states to form and oversee state workforce investment
boards for purposes of coordinating and distributing job
training funds. In California, WIA funds are provided through
the State Workforce Investment Board and 49 local workforce
investment boards.
In general, apprenticeship programs provide instruction that
combines a formal course of in-class instruction with
practical "on-the-job" training. According to the federal
Office of Apprenticeship Training, Employment, and Labor
Services (OATELS), the purpose of a registered apprenticeship
program is to enable employers to develop and apply industry
standards to training programs that can increase productivity
and improve the quality of the workforce. In California,
industries and employers voluntarily participate in
apprenticeship programs. For employers, participation in
apprenticeship programs help eliminate the need for expensive
recruitment, creates a diversified and flexible workforce and
larger pool of employees with specific skills, reduces costs
of high labor turnover and increases productivity.
According to the author, many WIA funded programs for job
Hearing Date: June 23, 2010 AB 2726
Consultant: Alma Perez Page 3
Senate Committee on Labor and Industrial Relations
training are not simultaneously connected to the programs that
provide employment and training, such as apprenticeship
programs. The author believes that the WIA funded programs
compete with apprenticeship programs and are subsidizing
programs that often fail to connect participants to clear
career pathways and well paying middleclass jobs. This bill
would specify that entrance into on-the-job training through
an apprenticeship program approved by the Division of
Apprenticeship Standards shall be considered placement into a
job. In addition, the bill would also direct the State
Workforce Investment Board and local boards to ensure that
programs and services, funded by WIA for apprenticeship
occupations, work in coordination with one or more
apprenticeship programs approved by the Division of
Apprenticeship Standards.
2. Apprenticeship Programs in California :
California's Eligible Training Provider List (ETPL) was
established in compliance with the Workforce Investment Act of
1998, for the purpose of providing customer-focused employment
training for adults and dislocated workers. California's
statewide list of qualified training providers offers a wide
range of educational programs, including classroom,
correspondence, internet, broadcast, and apprenticeship
programs. Apprenticeship programs are counted among the
training providers who are eligible to receive Individual
Training Accounts (ITAs) through WIA Title I-B funds.
According to the Division of Apprenticeship Standards, there
are more than 850 apprenticeable occupations in the United
States and over 200 apprenticeable occupations active in
California. According to the Employment Development
Department website, as of April 9, 2010, there are 13,190
approved programs (courses or combination of courses) that may
lead to employment and 71 state approved apprenticeship
programs on the ETPL.
3. Proponent Arguments :
Hearing Date: June 23, 2010 AB 2726
Consultant: Alma Perez Page 4
Senate Committee on Labor and Industrial Relations
According to the author, the state or Local Workforce
Investment Board (LWIB) can provide resources directly to
employers, training institutions, labor organizations, and
other entities for customized training, on-the-job training,
or incumbent worker training. However, according to federal
performance requirements, a job seeker who is enrolled in
intensive or training services must ultimately be placed in a
job.
The author argues that apprenticeship programs provide a
unique opportunity for both workers and the workforce
development system, as they constitute both placement into a
paid job AND training. Some LWIBs know this and place clients
accordingly depending on their individual needs and
qualifications; however, the author argues that many LWIBs
don't realize the dual nature of apprenticeship programs. In
addition, proponents argue that there are millions of WIA and
ARRA funds which are not connected to programs that provide
employment and training simultaneously and as a result, these
subsidized training programs often fail to connect
participants onto pathways to well paying middleclass careers.
According to the author, this bill would clarify that
state-approved apprenticeship programs can be counted as job
placement in addition to job training.
In addition, opponents argue that too often, some training
programs fail to connect youth and adult participants to
actual career pathways. According to the author, the intent
of federal law is that services are integrated across systems
and responsive to industry needs. However, the author
believes that current law does not specify that a LWIB must
integrate resources and services with state-approved
apprenticeship programs. According to the author, this system
disconnect leads to duplication and lost opportunity for
LWIBs, apprenticeship programs, community colleges, and
workers seeking the highest quality training and career
pathways into high wage jobs. To address this disconnect, the
author argues that this bill would ensure that WIA funded
training in apprenticeable occupations be formally connected
with state-approved apprenticeship programs.
Hearing Date: June 23, 2010 AB 2726
Consultant: Alma Perez Page 5
Senate Committee on Labor and Industrial Relations
4. Opponent Arguments :
None received to date.
SUPPORT
California Labor Federation
State Building and Construction Trades Council
OPPOSITION
None received to date.
* * *
Hearing Date: June 23, 2010 AB 2726
Consultant: Alma Perez Page 6
Senate Committee on Labor and Industrial Relations