BILL ANALYSIS �
AB 554
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Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 554 (Atkins) - As Introduced: February 16, 2011
Policy Committee: Labor and
Employment Vote: 5-1
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the California Workforce Investment Board
(CWIB) and each local board to ensure that programs and services
funded by the Workforce Investment Act (WIA) and directed to
apprenticable occupations are conducted, to the maximum extent
feasible, in coordination with one or more apprenticeship
programs approved by the Division of Apprenticeship Standards
(DAS) for the occupation and geographic area. Specifically,
this bill:
Requires the CWIB and each local board to develop a policy of
fostering collaboration between community colleges and approved
apprenticeship programs in the geographic area to provide
preapprenticeship training, apprenticeship training, and
continuing education in apprenticeable occupations through the
approved apprenticeship programs.
FISCAL EFFECT
1)Minor, absorbable costs to the CWIB to implement this bill,
including holding regional meetings with local boards to
develop policies that foster collaboration between community
and apprenticeship program, as specified. Depending on the
results of these meetings, local boards may reallocate federal
WIA funds to implement recommendations.
2)The 2010 Budget Act allocated approximately $514 million in
federal WIA funds. Of this amount, $170 million was allocated
to support state WIA programs and $343.7 million was allocated
for local assistance.
AB 554
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COMMENTS
1)Background . The WIA was established by federal law in 1998 for
purposes of job training and workforce development. It
requires states to form state workforce investment boards, and
requires governors to designate local workforce investment
areas and oversee local workforce investment boards for
purposes of coordinating and distributing job training funds.
In California WIA funds are provided through the state CWIB
and 49 local boards. The state board receives 15% of the
state's WIA allocation, and the remaining 75% is allocated to
the local boards. CWIB works with the governor to provide
policy guidance on how to spend these funds. Likewise, each
board determines how they spend their funds in accordance with
the workforce needs of their areas.
DAS, within the Department of Industrial Relations,
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.
Apprenticeship programs are counted among the training
providers who are eligible to receive WIA funds. According
EDD, as of April 7, 2011, there are 14,517 approved programs
(courses or combination of courses) that may lead to
employment and 84 state-approved apprenticeship programs on
California's Eligible Training Provider List.
2)Rationale . Proponents of this measure, sponsored by the State
Building and Construction Trades Council of California, argue
the current WIA structure lacks coordination between different
entities, including community colleges, which administer
apprenticeship programs. Likewise, they argue the state
places a large emphasis on use of the WIA funds to aid
individuals in finding immediate employment at the expense of
training future workers for skilled jobs.
According to the author, "To address this disconnect, WIA
funded training in apprenticeable occupations must be formally
connected with one or more state-approved apprenticeship
programs. This will establish critical connections with
apprenticeship programs and other labor-management training
partnerships in growth sectors maximizing the public
investment in workforce development."
AB 554
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3)Previous legislation . AB 2726 (Lowenthal), allowed
apprenticeship programs approved by DAS to be counted as job
placement, and directed the state and local WIA boards to
ensure that programs and services funded by the WIA work in
coordination with apprenticeship programs. This bill was
vetoed by Governor Schwarzenegger in September 2010 with the
following message:
"The California Workforce Investment Board is currently
engaged with the local workforce investment boards, key
stakeholders and partners in the collaboration and
coordination of programs and services funded under the
Workforce Investment Act of 1998. This bill would duplicate
existing efforts, therefore, this legislation is unnecessary."
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081