BILL ANALYSIS �
AB 1115
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Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Sandre Swanson, Chair
AB 1115 (Lara) - As Introduced: February 18, 2011
SUBJECT : Workforce development: training services.
SUMMARY : Establishes statewide standards and other
requirements for a statewide eligible training provider list for
purposes of job training under the federal Workforce Investment
Act (WIA). Specifically, this bill :
1)Specifies that training providers, which are deemed eligible
to receive funds for training services in the local area
served by a local workforce investment board, are required to
be on the local eligible training provider list.
2)Requires the state to compile a single list of the eligible
training providers from all local areas in the state and
disseminate that list statewide.
3)Requires the aforementioned list to be made widely available
to participants in authorized employment and training
activities.
4)Provides that individuals eligible to receive training
services shall have the opportunity to select any of the
eligible providers, from any of the local areas in the state,
that are included on the state eligible training provider
list.
5)Provides that state-approved joint apprenticeship programs and
community college career and technical education programs
shall be placed automatically on the state list of eligible
training providers, unless those programs decide to opt out of
being on those lists.
6)Requires the California Workforce Investment Board (CWIB) to
establish a procedure for use by local workforce investment
boards in determining the eligibility of a provider of
training services, as specified.
7)Requires the CWIB, in establishing such a procedure, to
require that in order to be eligible to receive funds, a
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training provider shall do all of the following:
a) Annually submit the performance information and cost
information for the program and any additional information
required to be submitted to the appropriate local board, at
the time and in the manner prescribed by that board.
b) Annually meet specified performance levels for the
program.
8)Authorizes a local workforce investment board to require
higher levels of performance than those required under
existing law.
9)Provides that, in order to be eligible to receive funds a
provider of training services shall submit all of the
following:
a) Verifiable program-specific performance information
consisting of all of the following:
i) Program information, including the following:
(1) The program completion rates for all
individuals participating in the applicable program
conducted by the provider.
(2) The percentage of all individuals
participating in the applicable program who obtain
unsubsidized employment.
(3) The wages at placement in employment of all
individuals participating in the applicable program.
ii) Training services information for all participants,
including all of the following:
(1) The percentage of participants who have
completed the applicable program and who are placed in
unsubsidized employment.
(2) The retention rates in unsubsidized employment
of participants who have completed the applicable
program, six months after the first day of the
employment.
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(3) The wages received by participants who have
completed the applicable program, six months after the
first day of the employment involved.
(4) If appropriate, the rates of licensure or
certification, attainment of academic degrees or
equivalents, or attainment of other measures of
skills, of the graduates of the applicable program.
b) Information on program costs, such as tuition and fees,
for participants in the applicable program.
10)Authorizes the CWIB to require a provider to submit other
verifiable program-specific performance information that it
determines to be appropriate to obtain eligibility, which may
include information relating to any of the following:
a) Retention rates in employment and the subsequent wages
of all individuals who complete the applicable program.
b) If appropriate, the rates of licensure or certification
of all individuals who complete the program.
c) The percentage of individuals who complete the program
and attain industry-recognized occupational skills in the
subject, occupation, or industry for which training is
provided through the program, if applicable.
EXISTING FEDERAL LAW establishes the Workforce Investment Act of
1998 (WIA), which requires all states to form state workforce
investment boards, and for Governors to designate local
workforce investment areas and oversee local workforce
investment boards. 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 STATE LAW establishes the California Workforce
Investment Board, which is the body responsible for assisting
the Governor in the development, oversight and continuous
improvement of California's workforce investment system.
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FISCAL EFFECT : Unknown
COMMENTS : This bill is jointly sponsored by the California
Labor Federation, AFL-CIO, the State Building and Construction
Trades Council and the California Manufacturers & Technology
Association. They contend that this bill would establish
consistent statewide standards, increased accountability, and
enhance public access to program outcome data to ensure that
training providers receiving federal WIA dollars provide high
quality training services.
Background on the WIA Eligible Training Provider List (ETPL)
Section 122 of the WIA requires states to establish a list of
providers who are eligible to receive WIA funds for training
services provided to adults and dislocated workers. This is
known as the eligible training provider list (ETPL). Federal
law also requires states to establish two separate procedures
for the ETPL: initial eligibility and subsequent eligibility.
WIA requires that programs be periodically determined eligible
to continue to remain on the ETPL. This determination is to be
made within 18 to 24 months of their initial listing and
annually thereafter. However, the US Department of Labor has
approved California's formal waiver request to this procedure.
Therefore, programs that are listed on the ETPL as initially
eligible will continue to be able to provide training services
to eligible participants.
The Employment Development Department's (EDD's) policy and
procedure document on the ETPL provides additional background
and a description of the program as follows:
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"With the exception of certain types of customized and
on-the-job training, only training providers through their
training programs listed on the ETPL are eligible to
receive WIA funds to train adults and dislocated workers.
In order to be listed on the ETPL, training providers must
submit an application to the local board in any Local
Workforce Investment Area in which the training provider
desires to offer programs and services. Only one training
provider application is required; however, a separate
application is required for each program of training
services offered by the training provider. The policy and
procedures contained in WIA ETPL Policy and Procedures
provide detailed information on initial eligibility
requirements and on the roles and responsibilities of the
local boards and EDD in determining the training providers
and their program's initial eligibility for listing. It is
important to note that initial eligibility is determined
based on criteria that relates to a provider/program's
approval authority and/or authorization to operate.
Performance is not considered in making initial eligibility
determinations. Providers are encouraged to submit
information on performance outcomes to facilitate customer
choice but this is not a requirement and the information
provided cannot be used to determine their initial
eligibility for listing.
Local boards are responsible for reviewing and verifying
applications submitted by training providers, determining
if the applicant meets the State's criteria for initial
eligibility and forwarding the information to EDD for those
training providers and programs that meet the criteria.
The EDD is responsible for accepting information on
training providers from local boards, compiling a single
statewide list of eligible training providers and
disseminating the statewide ETPL to local boards for
distribution to their One-Stop Career Centers.
It is recommended that local boards use EDD's updated
standard application forms to collect the data required to
determine initial eligibility for inclusion on the ETPL.
These application forms are included in the WIA ETPL Policy
and Procedures provided with this directive. The Job
Training Automation (JTA) system includes data entry
screens following the same format as the attachments and is
the mandatory method for transmitting this data to the
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State. While use of these standard forms is optional,
local boards that choose to use a different format must
incorporate all of the required data elements and transmit
these to the State using the JTA system screens. Because
there is a central database at the State level for the
public California Community College system, special
procedures have been developed to streamline the
application process for community colleges. Similar
procedures can be developed for any public provider that
maintains the required data elements in a centralized
database at the State level.
The EDD will accept applications for the ETPL from local
boards on any working day of the year. Approved
applications will appear on the list within 30 days of
their submission by the local board to the State. The
local boards are responsible for submitting changes to EDD
for programs or training providers already listed on the
statewide ETPL to ensure that the information remains
current. The EDD will update the list daily to incorporate
changes that do not require verification and other changes
will be included on the list within 30 days of their
submission to EDD.
ARGUMENTS IN SUPPORT :
Writing in support of this bill, the sponsors state the
following:
"Workers in California face the toughest jobs crisis since
the Great Depression. With declining state revenues and
pressure on public resources, it's crucial that every
dollar of federal workforce funds is invested in high
quality employment services that connect workers to
pathways to good jobs.
California receives about $500 million annually in federal
WIA funds. The majority of these funds, 85%, are formula
allocated to 49 local Workforce Investment Boards (local
WIBs). Local WIBs set workforce policy for their
jurisdictions and provide oversight of employment services
delivered through regional partners and subcontracting
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agencies, including training providers.
The California Workforce Investment Board (State WIB) is
responsible for assisting the Governor in the development,
oversight, and continuous improvement of California's
workforce investment system.
Federal law requires that training providers receiving
local WIA funds must be on the Eligible Training Provider
List (ETPL). The ETPL was established in federal law to
ensure that recipients of WIA-funded training receive
quality services and outcomes.
A WIA client who qualifies for skills training receives an
Individual Training Account (ITA) and is able to choose any
training provider or school on the local ETPL. To receive
WIA training funds, a training provider must be on a local
ETPL (exceptions are WIA dollars invested in customized
training, on-the-job training, or incumbent worker
training).
Currently, each of California's 49 local WIBs establishes
its own requirements and standards for training provider
eligibility. Standards for provider performance vary
widely across the state's 49 local WIB jurisdictions and in
many cases are inadequate. It is difficult to ensure that
training schools receiving public dollars provide quality
training, keep costs reasonable, graduate participants with
relevant skills (or graduate at all), or place people in
good jobs. This is a huge consumer protection issue.
Additionally, training providers with large regional
jurisdictions, such as state-approved apprenticeship
programs, must apply separately to multiple local WIBs with
varying application procedures.
The Federal Workforce Investment Act requires that states
develop a process for "subsequent eligibility," which gives
Governors the authority to establish minimum standards and
consistent procedures for all local Eligible Training
Provider Lists (ETPLs). Federal law also provides that
states compile a single list of the eligible training
providers from all local ETPLs and make this State ETPL
accessible to the public with performance and cost
information on all eligible training providers.
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In conformance with federal law, this bill requires the
California Workforce Investment Board, in consultation with
local WIBs, to set minimum statewide standards for
determining the eligibility of providers of training
services.
Additionally, this bill requires that training providers
annually submit performance and cost information and
annually meet established levels of performance. The
minimum performance standards include: training program
completion rates, percentage of placements in unsubsidized
employment, wages at placement, rates of licensure or
certification, and program costs such as tuition and fees.
This bill also places State-approved apprenticeship and
community college career technical education programs
automatically on the State ETPL and local ETPLs, unless
programs decide to "opt out" of being on those lists."
ARGUMENTS IN OPPOSITION :
The Western Electrical Contractors Association and the
Plumbing-Heating-Cooling Contractors Association oppose this
bill unless amended. They state that current law recognizes
three distinct types of apprenticeship programs - joint
(labor/management), unilateral and employer sponsored. This
bill specifies that "joint" apprenticeship programs shall be
placed automatically on the ETPL. Opponents argue that this
discriminates against unilateral and employer sponsored
programs, and they oppose this measure unless amended to delete
the reference only to "joint" apprenticeship programs.
REGISTERED SUPPORT / OPPOSITION :
Support
California Labor Federation, AFL-CIO (co-sponsor)
California Manufacturers & Technology Association (co-sponsor)
Community College League of California
State Building and Construction Trades Council (co-sponsor)
Opposition, unless Amended
Plumbing-Heating-Cooling Contractors Association of California
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(oppose unless amended)
Western Electrical Contractors Association (oppose unless
amended)
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091