BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2726
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2726 (Bonnie Lowenthal)
          As Amended  June 21, 2010
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |53-24|(June 3, 2010)  |SENATE: |24-12|(August 23,    |
          |           |     |                |        |     |2010)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:    L. & E. 

          SUMMARY  :  Allows apprenticeship programs approved by the  
          Division of Apprenticeship Standards (DAS) to be counted as job  
          placement and directs the Workforce Investment Act (WIA) of 1998  
          funds to DAS approved apprentice occupations. 

           The Senate amendments  allow WIA funds to be used for  
          apprenticeable occupations that work in coordination with one or  
          more apprenticeship programs, when such a program is available  
          within the geographic area.  

           EXISTING LAW  :

          1)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, and development of the State  
            Workforce Investment Plan.

          2)Creates DAS, which 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.

          3)Establishes the California Apprenticeship Council (CAC) to set  
            policies for the DAS.

          4)Requires employment of apprentices on all public works  
            projects.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.









                                                                  AB 2726
                                                                  Page  2

           AS PASSED BY THE ASSEMBLY  , this bill allowed apprenticeship  
          programs approved by DAS to be counted as job placement and  
          directed WIA funds to DAS approved apprenticeship programs.

           COMMENTS  :  According to the author, "Many WIA funded programs  
          for job training are not connected to the programs that provide  
          employment and training simultaneously.  These WIA funded  
          programs compete with apprenticeship programs and are  
          subsidizing programs that often fail to connect participants to  
          clear career pathways to well paying middleclass jobs."

          In general terms, apprenticeship is a program of instruction  
          that combines a formal course of theoretical 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 program that  
          can increase productivity and improve the quality of the  
          workforce.

          In California, industries and employers voluntarily participate  
          in apprenticeship programs.  The construction industry, for  
          example, accounts for 79% of the state's apprentices.  The total  
          number of apprentices was on a rise between 2002 and 2005,  
          increasing from 66,934 to 73,920 in that time frame.  In 2006,  
          however, the number fell to 68,502.  Despite this decline,  
          however, California has more than half of the nation's 150,000  
          trade apprentices.

          DAS promotes apprenticeship training through creation of  
          partnerships, consultants with program sponsors and monitors  
          programs to ensure high standards for one-the-job training and  
          supplemental classroom instruction.  Completion certificates are  
          awarded to the graduates of the 611 currently active  
          apprenticeship programs in more than 500 occupations and are  
          recognized nationwide as portable industry credentials.  In  
          addition, OATELS notes that adult learners with financial  
          obligations frequently are unable to stop working while they  
          gain additional education or workforce.  California's  
          apprenticeship programs provide individuals with an opportunity  
          to "earn and learn" in ways that are not available through other  
          employment opportunities. 

          California's Eligible Training Provider List (ETPL) was  








                                                                  AB 2726
                                                                  Page  3

          established in compliance with WIA to provide customer-focused  
          employment training for adults and dislocated workers.  
          Apprenticeship programs are counted among the training providers  
          who are eligible to receive Individual Training Accounts through  
          WIA Title I-B funds.  According to the Employment Development  
          Department Web site, 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. 
           

          Analysis Prepared by  :    Shannon McKinley / L. & E. / (916)  
          319-2091 

                                                                FN: 0005386