BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1115
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          ASSEMBLY THIRD READING
          AB 1115 (Lara)
          As Introduced February 18, 2011
          Majority vote 

           LABOR & EMPLOYMENT         5-0  APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Swanson, Alejo, Allen,    |Ayes:|Fuentes, Blumenfield,     |
          |     |Furutani, Yamada          |     |Bradford, Charles         |
          |     |                          |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Hall, Hill, Lara,  |
          |     |                          |     |Mitchell, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
           ----------------------------------------------------------------- 

           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 








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            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 
            training provider shall meet specified criteria. 

          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 specified 
            information.

          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; and,

             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.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, special fund and General Fund costs, likely between 
          $150,000 and $250,000 to the CWIB.  To the extent this measure 
          satisfies compliance with WIA, these costs will likely be 
          incurred through WIA funds.









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           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 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.

          The sponsors contend that, in conformance with federal law, this 
          bill requires the CWIB, in consultation with local workforce 
          investment boards, 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 (e.g., tuition and fees).  Finally, this bill also places 
          state-approved apprenticeship and community college career 
          technical education programs automatically on the state eligible 
          training provider lists and local lists, unless programs decide 
          to "opt out" of being on those lists.  

          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 eligible training provider list.  
          Opponents argue that this discriminates against unilateral and 
          employer sponsored programs, and they oppose this bill unless 
          amended to delete the reference only to "joint" apprenticeship 
          programs.

           
          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091 
          FN: 0000883











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