BILL ANALYSIS �
AB 1115
Page 1
Date of Hearing: May 27, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1115 (Lara) - As Introduced: February 18, 2011
Policy Committee: Labor and
Employment Vote: 5-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the state to compile a single list of the
eligible training providers from all local areas in the state
for job training purposes under the Workforce Investment Act
(WIA) and disseminate the list, as specified. Specifically,
this bill:
1)Requires WIA training providers to be on the training provider
list and requires the list to be widely available to
participants in employment and training activities.
2)Requires individuals eligible to receive training services to
have the opportunity to select any of the providers from any
of the local areas in the state that are on the state's list.
Further requires apprenticeship programs approved by the
Division of Apprenticeship Standards (DAS) and community
college (CC) career technical education (CTE) programs to be
automatically placed on the list, as specified.
3)Requires the California WI Board (CWIB) to establish a
procedure for use by local WIA boards to determine training
provider eligibility for the purposes of the list, including
soliciting recommendations of local WIA boards and training
providers.
4)Requires CWIB, in establishing procedures, to require that in
order to receive funds, a training provider do all of the
following: (a) annually submit the performance and cost
information for the program and (b) annually meet specified
performance goals.
AB 1115
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5)Authorizes a local WIA board to require training providers to
meet a higher level of performance and requires providers, as
a condition of receiving funding, to submit specified
information, including completion/retention rates, cost
information, and whether or not individual receive a degree or
certificate information.
FISCAL EFFECT
Special fund and potential GF costs, likely between $150,000 and
$250,000, to the CWIB to develop a training list pursuant to
this measure. To the extent this measure satisfies compliance
with WIA, this cost will likely be incurred through WIA funds.
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 to
coordinate and distribute 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.
According to EDD, the purpose of the Eligible Training
Provider List (ETPL) is to provide customer-focused employment
training for adults and dislocated workers. Training providers
who are eligible to receive Individual Training Accounts
(ITAs) through WIA Title I-B funds are listed on the ETPL. In
order to be placed on the list, eligible training providers
must contact their local WIA boards. 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.
DAS, within the Department of Industrial Relations,
administers the state's apprenticeship law and enforces
apprenticeship standards for wages, hours, working conditions
AB 1115
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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.
2)Rationale . According to the author, "Since the passage of the
WIA in 1998, California has not yet prioritized the
development of the minimum criteria for employment training
service providers and instead has requested a waiver of this
federal requirement. Under this waiver, the state is allowed
to postpone the determination of subsequent eligibility of
training providers to provide an opportunity for training
providers to re-enroll and be considered enrolled as eligible
providers.
"While this waiver has relieved the state from federal
mandated responsibilities, it has created and reinforced a
fragmented employment training system that lacks the
appropriate state accountability for ensuring quality and the
delivery of employment training that meets the needs of
employers and workers in California."
This bill requires the state to compile a single list of the
eligible training providers from all local areas in the state
for job training purposes under WIA and disseminate the list,
as specified.
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081