BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 554|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 554
Author: Atkins (D)
Amended: As introduced
Vote: 21
SENATE LABOR & INDUSTRIAL RELATIONS COMM. : 4-1, 6/8/11
AYES: Lieu, DeSaulnier, Leno, Yee
NOES: Runner
NO VOTE RECORDED: Wyland, Padilla
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 51-26, 5/19/11 - See last page for vote
SUBJECT : Employment: workforce services
SOURCE : California State Building and Trades Council
DIGEST : This bill directs the state and local Workforce
Investment Boards to ensure that programs and services
funded by the Work Investment Act (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 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 Division of
CONTINUED
AB 554
Page
2
Apprenticeship Standards for the occupation and geographic
area; and (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.
ANALYSIS : The federal 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 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. 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 apprenticeable
CONTINUED
AB 554
Page
3
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 directs the state and the Local WIBs 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 CWIB and each local board to ensure that
programs and 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 preapprenticeship
training, apprenticeship training, and continuing
education in apprenticeable occupations through approved
apprenticeship programs.
Comments
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,
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
CONTINUED
AB 554
Page
4
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 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.
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
Web site, 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.
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
CONTINUED
AB 554
Page
5
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.
According to the author's office, 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's office 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 directs 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 requires 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.
Prior Legislation
AB 2726 (B. Lowenthal) of 2009-10 Session 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
Governor Schwarzenegger, 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."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
CONTINUED
AB 554
Page
6
Local: No
SUPPORT : (Verified 6/28/11)
California State Building and Construction Trades Council
(source) California Labor Federation
OPPOSITION : (Verified 6/28/11)
Department of Finance
ARGUMENTS IN SUPPORT : 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's office 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's office, there are
millions of WIA funds which are not connected to programs
that provide employment and training simultaneously.
The author's office 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.
ARGUMENTS IN OPPOSITION : The Department of Finance
opposes this bill because it is unnecessary and writes,
"The CWIB currently works with the Community Colleges
Chancellor's office to collaborate on the allocation of WIA
Funds. In addition, this bill limits the ability of LWIBs
and the Governor to prioritize and manage WIA funds.
"The federal WIA of 1998 prescribes various planning
activities and funding priorities related to workforce
development. The Board, established by the Governor to
CONTINUED
AB 554
Page
7
address these requirements, guides policy and planning
efforts for workforce development in California and the EDD
administers the allocation of WIA funding including audit
and oversight of LWIBs. Each LWIB is provided some
discretion within these guidelines to prioritize funding
within their region based on the needs of the community.
"This bill would specify the Board and LWIBs shall ensure
that program and services funded by the federal Workforce
Investment Act (WIA) maximize the use of pre-apprenticeship
training programs. This bill would require, to the extent
feasible, coordination in one or more apprenticeship
programs approved by the Division of Apprenticeship
Standards within the Department of Industrial Relations for
the occupation and geographic area. This bill would also
require these entities to develop a policy of fostering
collaboration between community colleges and approved
apprenticeship training programs."
ASSEMBLY FLOOR :
AYES: Allen, Ammiano, Atkins, Beall, Block, Blumenfield,
Bonilla, Bradford, Brownley, Buchanan, Butler, Charles
Calderon, Campos, Carter, Cedillo, Chesbro, Davis,
Dickinson, Eng, Feuer, Fong, Fuentes, Furutani, Galgiani,
Gatto, Gordon, Hall, Hayashi, Roger Hern�ndez, Hill,
Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Mendoza,
Mitchell, Monning, Nestande, Pan, Perea, V. Manuel P�rez,
Portantino, Skinner, Solorio, Swanson, Torres,
Wieckowski, Williams, Yamada, John A. P�rez
NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly,
Fletcher, Beth Gaines, Garrick, Grove, Hagman, Halderman,
Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller,
Morrell, Nielsen, Norby, Olsen, Silva, Smyth, Valadao,
Wagner
NO VOTE RECORDED: Alejo, Gorell, Ma
PQ:do 6/28/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED
AB 554
Page
8
CONTINUED