BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 747
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          Date of Hearing:   July 1, 2009

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                     SB 747 (Romero) - As Amended:  June 25, 2009

          [Note: This bill has been double referred to the Assembly Higher  
          Education Committee and will be heard as it relates to issues  
          under its jurisdiction.]
          
           SENATE VOTE  :   39-0
           
          SUBJECT  :   Career technical education: pilot preapprentice  
          aerospace machining program 

           SUMMARY  :  Establishes a pilot preapprenticeship aerospace  
          machining program to provide career technical education (CTE) to  
          high school pupils in the form of machining and related  
          curriculum that can be applied to various manufacturing  
          industries in California including, but not limited to,  
          aerospace manufacturing, as specified.  Specifically,  this bill  :  
           

          1)Requires the curriculum include, but not be limited to  
            specified green technologies in aerospace manufacturing. 

          2)States that the program shall be funded by a combination of  
            private nonprofit and public funds in the form of  
            competitively awarded community-based job training grants from  
            the Employment and Training Administration within the  
            Department of Labor, as well as federal funds made available  
            through the American Recovery and Reinvestment Act (ARRA) of  
            2009. 

          3)Specifies that all funds appropriated for this program shall  
            be deposited into the Machinist Investment Fund (MIF), and  
            requires the MIF and the pilot program be administered by the  
            California Labor and Workforce Development Agency (CLWDA).  

          4)Provides that community colleges in partnership with local  
            workforce investment boards, employers and high schools, shall  
            apply for grants that shall be competitively awarded based  
            upon specified criteria, including the ability to address the  
            existing local and regional industry manufacturing needs,  
            while providing meaningful career technical education  








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            opportunities for at-risk youth. 

          5)Requires the Chancellor's Office of the California Community  
            Colleges (CCC) system to develop a pre-apprenticeship  
            curriculum in aerospace and machining technology which shall  
            meet the standard for the awarding of a National Institute for  
            Metalworking Skills (NIMS) certificate.  

          6)Requires the CLWDA in consultation with the CCC Chancellor's  
            office to review the applications of individual community  
            colleges applying for the federal grant moneys under the pilot  
            program and rank them based on specified criteria. 

          7)States that to provide maximum flexibility at the local level  
            regarding the implementation of this program, CCC campuses  
            selected for receipt of a grant, in consultation with high  
            schools, shall identify the location at which instruction will  
            occur, whether on a high school campus, at a regional  
            occupation center, or at a community college and allows  
            certain factors to be considered.

          8)States that to the degree consistent with federal guidelines,  
            the community-based job training grant award recipients shall  
            reserve 10% of the funds received for an evaluation component.

          9)Requires each community college to complete an evaluation of  
            its participation in the pilot program on or before the end  
            date of the grant award, and submit it to the Chancellor's  
            office by that date and specifies certain components that the  
            evaluation shall include. 

          10)Provides that these provisions shall remain in effect until  
            January 1, 2015.

          11)States findings and declarations of the Legislature regarding  
            California's aerospace workforce and trends in California's  
            high schools.

           EXISTING LAW  :

          1)Authorizes the county superintendent of schools of each  
            county, with the consent of the State Board of Education  
            (SBE), to establish and maintain at least one regional  
            occupational center or program (ROC/P) in the county to  
            provide education in career technical education courses. 








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          2)Requires the county superintendent of schools or districts  
            sponsoring the ROC/P to conduct a job market study in the  
            labor market area in which it proposes to establish the center  
            or program to ensure that the anticipated employment demand  
            for trainees justifies the establishment of the proposed  
            courses of instruction.

          3)Requires every career technical education course or program  
            offered by a school district or county office of education  
            sponsoring an ROC/P to be reviewed every two years and  
            requires any course or program that does not meet the  
            requirements and specified standards to be terminated within  
            one year.

          4)Establishes economic and workforce regional development  
            centers to provide specified services, and to perform  
            specified functions relating to economic and workforce  
            development.

          5)Requires the Board of Governors of the CCC to assist economic  
            and workforce regional development centers and consortia,  
            including middle and junior high schools or high schools and  
            regional occupational centers and programs, to improve  
            linkages and career-technical education pathways between high  
            schools and community colleges for the benefit of pupils and  
            students in both education systems, as specified. 

           FISCAL EFFECT  :  On the prior version of this bill, the Senate  
          Appropriations Committee notes that information from the  
          Chancellor's Office indicates that the per campus costs of  
          operating a program would be approximately $500,000 to $600,000.  
           Assuming five campuses were awarded a grant, total costs would  
          range from $2.5 million to $3 million.  The bill does not  
          specify the size of the grant award or the number of grants to  
          be allocated. 

           COMMENTS  :  Existing law establishes various career technical  
          education (CTE) programs for public schools including but not  
          limited to ROC/Ps, partnership academies, adult education  
          programs, and CTE courses that may be offered in secondary  
          schools and community colleges.  

          Additionally, SB 70 (Scott), Chapter 352, Statutes of 2005,  
          established a program to "improve linkages and career technical  








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          education pathways between high schools and community colleges."  
           The intent of this program is to help high school students  
          develop vocational skills needed by employers in the local area  
          while also preparing students for more advanced academic or  
          vocational coursework in a community college or university by  
          building local relationships and connecting all levels of  
          education, including high schools, middle schools, ROC/Ps, and  
          community colleges.  The SB 70 program is administered jointly  
          by the Chancellor's Office of the CCCs and the California  
          Department of Education (CDE) through a competitive grant  
          process.  

          The goal of this bill is consistent with the goals of SB 70 and  
          a community college could submit an application for funds under  
          the SB 70 program to implement an aerospace manufacturing  
          program similar to what is proposed by this bill.  Additionally,  
          such a program could also be implemented through a ROC/P. 

           California labor market data  :  According to information from the  
          Labor Market Information Division (LMID) of the Employment  
          Development Department, in 2009, the top 20 occupations with the  
          most job openings will include nurses, teachers, several  
          computer-related occupations, accountants and auditors, law  
          enforcement occupations, electricians, and civil engineers.   
          These occupations are expected to generate almost 58,000 job  
          openings.
          
          The LMID projections of California industries for 2006-2016 show  
          that all of the major employment categories, except for  
          manufacturing, are expected to increase during this forecast  
          period.  According to LMID information, about 79 percent of all  
          new nonfarm jobs are expected to occur in the following major  
          industry sectors: professional and business services,  
          government, education services and health care and social  
          assistance, leisure and hospitality, and retail trade.

          Furthermore, according to information from the CLWDA, the top  
          ten largest industry sub-sectors include food services;  
          professional, scientific and technical services; administrative  
          support services; specialty trade contractors; ambulatory health  
          care services; hospitals; merchant wholesalers; food and  
          beverage stores; computer and electronic product manufacturing;  
          and credit intermediation and related services.  From the  
          statewide data noted above it is not clear that aerospace  
          manufacturing is a high growth/high demand industry sector for  








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          the state.  

          Information provided by the author states that, "In the  
          aerospace industry, there is an impending labor shortage of  
          skilled machinists.  As a generation of baby boomers nears  
          retirement, employers confront a shortage of new workers to  
          replace them."
           
          Community-Based Job Training Grants  :  As amended, this bill  
          seeks to tap into Community-Based Job Training Grants provided  
          by the United States (U.S.) Department of Labor.  These grants  
          are available to community colleges to prepare workers for high  
          demand occupations.  

          According to the federal regulations for this program, a  
          high-growth/high-demand industry meets one or more of the  
          following criteria: (1) Is projected to add substantial numbers  
          of new jobs to the economy; (2) has a significant impact on the  
          economy overall; (3) impacts the growth of other industries; (4)  
          is being transformed by technology and innovation requiring new  
          skill sets for workers; or (5) is a new and emerging business  
          that is projected to grow. 

          Information from the U.S. Department of Labor further states  
          that the grants are to be used for the following activities: 

          1) Increasing the capacity of community colleges to provide  
          training in a local high growth, high demand industry through  
          activities such as the development of training curricula with  
          local industry, hiring qualified faculty, arranging on-the-job  
          experiences with industry, and using up-to-date equipment; and 

          2) Training new and experienced workers in identified high  
          growth, high demand industries, with the aim of employing and/or  
          increasing the retention and earnings of trained workers, while  
          meeting the skill needs of businesses within targeted  
          industries. 

          The most recent competition for these awards took place during  
          the fall of 2008 and in January of this year the U.S. Department  
          of Labor awarded nearly $123 million to 68 community colleges  
          and community-based institutions that competed successfully  
          under the Community-Based Job Training Grants Initiative.  No  
          information is available on future availability of these grants.  









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          The bill requires the CLWDA in consultation with the CCC  
          Chancellor's office to review and rank applications submitted by  
          community colleges and to use certain criteria to rank them.   
          The bill requires two different sets of criteria to be used in  
          the ranking of applications and in awarding the competitive  
          grants.   Staff suggests  that the criteria be reconciled.

          Additionally, the bill currently requires a ranking of the  
          applications and awarding of grants based on the two sets of  
          criteria but according to the Employment Development Department,  
          the Community Based Job Training Grants are issued directly from  
          the U.S. Department of Labor and the state has no control over  
          who gets the awards or how they are used. 

          Author's staff has informed Committee staff that the intent is  
          for the ranking to be conducted by the CLWDA in consultation  
          with the CCC Chancellor's office and subsequently require the  
          CCC Chancellor's office to submit the applications to the U.S.  
          Department of Labor on behalf of the community colleges that the  
          CLWDA has ranked at the top.   The bill should be amended  to  
          reflect the author's intent  or  to delete the language requiring  
          ranking of applications by the CLWDA. 

          Community colleges can apply for these funds directly to the  
          U.S. Department of Labor. The process established by this bill  
          sets up an extra step to accessing funds through the Community  
          Based Job Training Grants for community colleges that choose to  
          participate in this pilot program.  There is no indication that  
          the screening and ranking of applications by CLWDA will secure  
          funding or that an application from a state community college  
          system is more likely to get funded. 

           Evaluation  :  As amended, this bill provides that each community  
          college shall complete an evaluation of its participation in the  
          pilot program and submit it to the CCC Chancellor's office and  
          specifies certain components that the evaluation shall include.   
          There is no requirement however, for the evaluation to be  
          submitted to the Legislature.  Since this is a pilot project the  
          rules of this Committee require an evaluation of any proposed  
          pilot project.  The evaluation would then inform a future  
          Legislature on the possible reauthorization of this pilot  
          project.   Staff recommends  the bill be amended to require the  
          CCC Chancellor's office to compile the information provided by  
          the participating community colleges and submit an evaluation to  








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          the Legislature by July 1, 2013.  

           NIMS certificate amendment:   The author wishes to correct an  
          error in the bill that states that completion of this program  
          will result in a National Institute for Metalworking Skills  
          (NIMS) certificate.  

          The author states, "SB 747 will establish a pre-apprenticeship  
          pilot program for high school juniors and seniors, offering  
          aerospace-oriented career technical education curriculum to  
          engage at-risk students in learning the machining skills  
          necessary to build aircraft." 

          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Aerojet-General Corporation
          Alcoa Fastening Systems 
          Allfast Fastening Systems, Inc.
          Board of Governors of the California Community Colleges 
          Boeing Company
          California Aerospace Technology Association 
          California Conference of Machinists 
          California Manufacturers & Technology Association
          California School Boards Association
          California Teamsters Public Affairs Council
          Engineers & Scientists of California, IFPTE Local 20
          Lookheed Martin
          Los Angeles Area Chamber of Commerce 
          Nelson Aerospace, Inc.
          Professsional & Technical Engineers, IFPTE Local 21
          Sonic Industries, Inc
          State Building and Construction Trades Council, AFL-CIO
          Individuals
           
            Opposition 
           
          None on file. 

           Analysis Prepared by  :    Marisol Avi?a / ED. / (916) 319-2087 












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