BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
Ted W. Lieu, Chair
Date of Hearing: June 8, 2011 20011-2012 Regular
Session
Consultant: Alma Perez Fiscal:Yes
Urgency: No
Bill No: AB 554
Author: Atkins
Version: As introduced February 16, 2011
SUBJECT
Employment: workforce services
KEY ISSUE
Should the Legislature direct the state and local Workforce
Investment Boards to 1) ensure that programs and services funded
by the Workforce Investment Act are conducted in coordination
with approved apprenticeship programs, and 2) to foster
collaboration between community colleges and approved
apprenticeship programs to provide training and continuing
education?
PURPOSE
To encourage the coordination of WIA funded training with
approved apprenticeship programs and to foster collaboration
between educational and job-training entities.
ANALYSIS
The federal Workforce Investment Act (WIA) 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. Following
passage of the federal WIA, the state established the California
Workforce Investment Board (CWIB) and charged the board with the
responsibility of developing a unified, strategic planning
process to coordinate various education, training, and
employment programs into an integrated workforce development
system that supports economic development.
Existing law requires the local chief elected officials in a
local workforce development area to form, pursuant to specified
guidelines, a Local Workforce Investment Board (Local WIB) to
plan and oversee the workforce investment system at the local
level. There are currently 49 local WIBs in the state.
Additionally, existing law also requires each Local WIB to
establish at least one full service One-Stop Career Center in
the local workforce investment area that, among other things,
provides access to career information, counseling, job search
and placement assistance, training and other related services
available in one location. WIA requires that 85 percent of the
federal funds appropriated to states go to the local workforce
investment boards, with the remainder allocated for state
discretionary purposes
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 and the specific skills
required for state certification as a journey person in an
apprenticealbe occupation. The CAC was established to set
policies for the DAS. All apprenticeship programs must be
approved by the Chief of the DAS and are randomly audited every
five years to ensure that programs are in compliance with
Division standards.
This Bill would direct the state and local Workforce Investment
Boards to ensure that programs and services funded by WIA are
conducted in coordination with apprenticeship programs and would
encourage collaboration between community colleges and
apprenticeship programs.
Specifically, this bill:
1. Requires the California Workforce Investment Board
(CWIB) and each local board to ensure that programs and
Hearing Date: June 8, 2011 AB 554
Consultant: Alma Perez Page 2
Senate Committee on Labor and Industrial Relations
services funded by WIA and directed to apprenticeable
occupations, including preapprenticeship training, are
conducted to the maximum extent feasible, in coordination
with apprenticeship programs approved by DAS.
2. Requires the CWIB and each local board to develop a
policy of fostering collaboration between community
colleges and approved apprenticeship programs in their
respective geographic areas to provide pre-apprenticeship
training, apprenticeship training, and continuing education
in apprenticeable occupations through approved
apprenticeship programs.
COMMENTS
1. Background on how Apprenticeship Programs work:
As noted above, the Division of Apprenticeship Standards
administers the state's apprenticeship laws 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. 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. DAS notes that apprenticeship programs operate
under training standards that are agreed to by labor and/or
management in accordance with state and federal laws. Under
these programs, an apprentice works with a skilled worker and
Hearing Date: June 8, 2011 AB 554
Consultant: Alma Perez Page 3
Senate Committee on Labor and Industrial Relations
gains on the job skills and "know-how" and in turn becomes an
important part of the occupation and industry. DAS states that
those crafts in which management and labor organizations
exist, each selects an equal number of members to serve on the
joint apprenticeship committee. The joint apprenticeship
committee determines the standards for training of its
occupation and supervises the training of apprentices.
2. Apprenticeship Programs in California :
California's Eligible Training Provider List (ETPL) was
established in compliance with WIA requirements for the
purpose of providing 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
website, 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
the ETPL.
3. Need for this bill?
A report from the Institute for Research on Labor and
Employment at the University of California, Berkeley, titled
"California Workforce Education and Training Needs Assessment:
For Energy Efficiency, Distributed Generation and Demand
Response," (UCB Report) reports that California's workforce
development system is extensive but fragmented. The UCB
Report notes that there is limited coordination among WIBs,
community colleges, apprenticeship programs, and other
training and education agencies. The report asserts that the
WIA system is currently driven by a "work first" mandate, with
the bulk of resources going to the One-Stop Career Centers to
help job seekers find a job quickly, rather than investing in
training. The UCB Report also notes that community colleges
alone have the most post-secondary training programs.
Therefore, the UCB Report recommends system-wide collaboration
between the state's community colleges and apprenticeship
programs at the pre-apprenticeship, apprenticeship and
continuing education levels.
Hearing Date: June 8, 2011 AB 554
Consultant: Alma Perez Page 4
Senate Committee on Labor and Industrial Relations
According to the author, many WIA funded programs for job
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 direct the CA WIB and local boards to ensure that
programs and services, funded by WIA for apprenticeship
occupations, are conducted to the maximum extent feasible, in
coordination with apprenticeship programs approved by DAS.
And additionally, the bill would require the CA WIB and each
local board to develop a policy of fostering collaboration
between community colleges and approved apprenticeship
programs in their respective geographic areas.
4. Proponent Arguments :
According to proponents, the remarkable success of recognized
apprenticeship programs stems from their unique ability to
simultaneously provide employment and training, setting
workers on the path to living wage careers. The author argues
that pre-apprenticeship, "green construction training," and
other local training programs funded by WIA dollars fail to
connect youth and adult participants to actual pathways to
journeyperson certifications through state approved
apprenticeship programs that lead to well-paying middle class
careers. According to the author, there are millions of WIA
funds which are not connected to programs that provide
employment and training simultaneously.
The author notes that, to address this disconnect, WIA funded
training in apprenticeable occupations must be formally
connected with one or more state approved apprenticeship
programs. Proponents further argue that this bill will
establish critical connections with apprenticeship programs
and other labor-management training partnerships in growth
sectors in order to make the most of taxpayer investment in
workforce development.
5. Opponent Arguments :
Hearing Date: June 8, 2011 AB 554
Consultant: Alma Perez Page 5
Senate Committee on Labor and Industrial Relations
None received.
6. Prior Legislation :
AB 2726 (B. Lowenthal) of 2010: Vetoed by Governor
This bill would have allowed apprenticeship programs approved
by DAS to be counted as job placement and directed WIA funds
to DAS approved apprentice occupations. AB 2726 was vetoed by
the Governor. In his veto message, the Governor stated that,
"The California Workforce Investment Board is currently
engaged with the local workforce investment boards, key
stakeholder and partners in the collaboration and coordination
of programs and services funded under the Workforce Investment
Act of 1998. This bill would duplicate efforts; therefore,
this legislation is unnecessary."
SUPPORT
California State Building and Construction Trades Council -
Sponsor
California Labor Federation
OPPOSITION
None received
Hearing Date: June 8, 2011 AB 554
Consultant: Alma Perez Page 6
Senate Committee on Labor and Industrial Relations