BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1397|
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THIRD READING
Bill No: SB 1397
Author: Corbett (D)
Amended: As introduced
Vote: 21
SENATE LABOR & INDUSTRIAL RELATIONS COMM : 4-2, 4/19/10
AYES: DeSaulnier, Ducheny, Leno, Yee
NOES: Wyland, Hollingsworth
SUBJECT : Apprenticeship oversight
SOURCE : State Building and Construction Trades Council,
AFL-CIO
DIGEST : This bill streamlines auditing requirements and
limit duplicative organizational membership on the
California Apprenticeship Council.
ANALYSIS : 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, 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 DAS. Existing law empowers the
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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. However, in order for the Chief to approve an
apprenticeship program in the building and construction
trades, any of the following "needs-based" conditions must
be met:
1.There is no existing apprenticeship program serving the
same craft or trade and geographic area;
2.Existing apprenticeship programs that serve the same
craft or trade and geographic area do not have the
capacity, or neglect or refuse, to dispatch sufficient
apprentices to qualified employers at a public works site
who are willing to abide by the applicable apprenticeship
standards;
3.Existing apprenticeship programs approved under this
chapter that serve the same trade and geographic area
have been identified by the CAC as deficient in meeting
their obligations.
Existing law requires that CAC be composed of:
1.Six representatives from employers or employer
organizations, appointed by the Governor, that sponsor
apprenticeship programs;
2.Six representatives from employee organizations,
appointed by the Governor, that sponsor apprenticeship
programs;
3.Two members from the general public, appointed by the
Governor;
4.The Director of the Department of Industrial Relations,
or his or her permanent and best qualified appointee;
5.The Superintendent of Public Instruction, or his or her
permanent and best qualified appointee; and,
6.The Chancellor of the Community Colleges, or his or her
permanent and best qualified appointee.
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Existing law requires that DAS randomly audit
apprenticeship programs every five years to ensure that:
1.The programs are complying with DAS standards;
2.All on-the-job training is supervised by a journeyperson;
3.All related and supplemental instruction required is
being provided;
4.All work processes are being covered in the program; and
5.The graduates of the program have completed the
apprenticeship program's requirements.
This bill requires that no two representatives of the six
representatives from employee organizations on CAC shall be
from the same national or international labor organization.
This bill requires that the following information be
submitted to the Chief of DAS when applying to create a new
program or expand an existing program:
1.A written plan that sets out the number of new
apprentices the applicant seeks to enroll during the next
five years, including the applicant's budget for training
the new apprentices and a detailed explanation of how the
applicant intends to provide sufficient funding to meet
that budget;
2.Evidence that the applicant has obtained sufficient
commitments from employers to employ the new apprentices
so as to ensure, to the extent feasible, that the new
apprentices will be employed continuously throughout the
term of the apprenticeship;
3.Evidence that the applicant has suitable facilities to
train the new apprentices, including a copy of any lease
for those facilities;
4.A plan for the recruitment and selection of new
apprentices, including advertising the new apprenticeship
opportunities and outreach to organizations that promote
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apprenticeship opportunities to women and
underrepresented minorities.
This bill removes the requirement of DAS to audit
apprenticeship programs every five years. This bill
creates the following new requirements for audits:
1.During an audit, DAS must attempt to contact a
statistically valid sample of apprentices that failed to
complete the apprentice program to ascertain the reasons
why the apprentices did not complete the program.
2.DAS is required to give priority in conducting audits to
programs that have been identified as having
deficiencies.
3.DAS is required to audit all new or newly expanded
apprenticeship programs one year after the approval of
creating or expanding the program.
4.If DAS finds evidence that the apprenticeship program has
purposefully misstated information to them, they must
immediately investigate and determine if an audit is
necessary.
5.If DAS determines that a building and construction trades
apprenticeship program has been the subject of two or
more meritorious complaints within a vie-year period, DAS
must schedule an audit within three months.
6.If DAS determines that a building and construction trades
apprenticeship program has had at least two graduating
classes with an annual apprentice completion rate below
50 percent of the average completion rate for an
applicable trade, DAS must schedule an audit within three
months.
This bill requires that all building and construction
trades apprenticeship programs provide each apprentice with
a semi-annual statement showing the number of hours of
on-the-job and supplemental instruction needed for
graduation, and the apprentice's expected graduation date.
This bill requires that every building and construction
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trades apprenticeship program submit to DAS data on
apprentice registration, change of address, graduation, and
termination in a monthly statement in an electronic format
acceptable to DAS.
Prior Legislation
AB 734 (Evans), 2007-08 Session, was nearly identical to
this bill. It was vetoed by the Governor. Passed the
Senate Floor with a vote of 23-13 on 8/20/10.
AB 947 (Niello), 2007-08 Session, would have removed the
"needs-based" conditions from the approval of
apprenticeship programs. The first policy committee
hearing for the bill was cancelled at the author's request.
AB 2929 (Laird), 2005-06 Session, contained language on the
auditing of apprenticeship programs that was very similar
to AB 734. It was vetoed by Governor Schwarzenegger
because it did not address the "needs-based" conditions for
approving an apprenticeship program in the building and
construction trades. Passed the Senate Floor with a vote
of 26-14 on 8/29/10.
AB 51 (Koretz), 2005-06 Session, which was similar to AB
2837, was vetoed by Governor Schwarzenegger because he did
not feel that there was "compelling evidence that would
warrant the extensive reporting requirements" in the bill.
Passed the Senate Floor with a vote of 25-15 on 9/7/05.
AB 2837 (Firebaugh), 2003-04 Session, would have, among
other things, required any building and construction trades
apprenticeship program to graduate at least one apprentice
within a two-year period in order to be eligible to receive
state reimbursement. It was vetoed by Governor
Schwarzenegger, as he viewed the bill as unnecessary in
view of the Labor and Workforce Development Agency's
development of quality control measures for apprenticeship
programs. Passed the Senate with a vote of
23-14 on 8/24/10.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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SUPPORT : (Verified 5/5/10)
State Building and Construction Trades Council, AFL-CIO
(source)
California Labor Federation
OPPOSITION : (Verified 5/5/10)
Associated Builders and Contractors
Western Electrical Contractors Association
ARGUMENTS IN SUPPORT : Proponents argue that this bill is
necessary because DAS should be given the tools to
strengthen oversight and make apprenticeship programs
better. With the state of California spending almost $31
million annually on apprenticeship training, and private
industry and labor contributing an additional $120 million
annually in the construction industry alone, proponents
insist that it is important that we know how this
substantial investment is spent.
Proponents believe that this bill establishes basic
guidelines for the approval or expansion of apprenticeship
programs. Under its provisions, the applicant would submit
a written plan that includes evidence of suitable
facilities, the selection criteria and recruitment plans
for apprentice applicants, an estimate of the number of
apprentices for enrollment, and employer commitments for
on-the-job training and employment.
ARGUMENTS IN OPPOSITION : Opponents argue that this bill
will impose onerous requirements on apprenticeship program
applicants at tremendous cost to DAS, and that requiring
demonstrations of adequate funding, facilities,
participating firms and a plan for advertising will also
burden program applicants with additional costs just as
they are getting their footing, or sooner. Opponents also
believe that this bill creates an unfair process where new
applicants will be placed under heavy scrutiny that
existing programs were never placed under. Finally,
opponents fault the bill for not removing the "needs test,"
which opponents feel has been unfairly exploited by
construction unions to block the approval of new or
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expanding programs.
PQ:nl 5/5/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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