BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
Ted W. Lieu, Chair
Date of Hearing: June 29, 2011 20011-2012 Regular
Session
Consultant: Alma Perez Fiscal:Yes
Urgency: No
Bill No: AB 1115
Author: Lara
Version: As amended June 22, 2011
SUBJECT
Workforce development: training services
KEY ISSUES
Should the Legislature require the California Workforce
Investment Board to establish a procedure, which includes
minimum performance standards, for use by Local Workforce
Investment Boards in determining the eligibility of a training
provider?
Should the Legislature require that training providers meet
annual performance requirements and submit annual performance
and cost information of their programs to the state, in order to
be eligible to receive federal funds and be placed on the
Eligible Training Provider List (ETPL)?
PURPOSE
To establish minimum statewide standards for determining the
eligibility of a training provider to receive federal funds and
be placed on the states eligible provider list.
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. Under WIA, funds are distributed to the states based on
formulas that consider unemployment rates and other economic and
demographic factors. WIA requires that 85 percent of the
federal funds go to the Local WIBs, with the remainder allocated
for state discretionary purposes.
There are currently 49 Local WIBs in the state and each local
workforce area has also created one or more One-Stop Centers,
which provide access to career information, counseling, funding
for education, training and supportive services. Job training
programs include classroom training, customized training, and
on-the-job training (also known as incumbent worker training).
Training funds are often distributed through vouchers to job
seekers to enroll in eligible training programs. Local WIBs
determine which training programs are eligible to receive the
vouchers.
California's Eligible Training Provider List (ETPL), was
established in compliance with WIA for the purpose of providing
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.
This Bill would establish consistent standards and other
requirements for the statewide eligible training provider list
(ETPL) for purposes of job training under the federal Workforce
Investment Act.
Specifically, this bill would:
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Senate Committee on Labor and Industrial Relations
1)Specify 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)Require that the state compile a single list of the eligible
training providers from all local areas in the state and
disseminate that list to the one-stops statewide.
3)Require the aforementioned list to be made widely available to
participants in authorized employment and training activities.
4)Provide 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)Provide that the following be automatically placed on the list
of eligible training providers (unless they choose to
opt-out):
a) Apprenticeship programs registered with the Division of
Apprenticeship Standards and approved by the California
Apprenticeship Council, and which have graduated
apprentices in each of the previous five years;
b) California community college career and technical
education programs;
c) One-stop partners, as specified.
6)Require the California Workforce Investment Board (CWIB) to
establish a procedure, to include input from Local WIBs and
members of the public, for use by local workforce investment
boards in determining the eligibility of a provider of
training services.
7)Require the CWIB, in establishing such a procedure, to require
that in order to be eligible to receive funds, a training
provider shall do all of the following:
a) Annually submit the performance and cost information for
the program and any additional information required to be
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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.
c) Provide 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.
(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.
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d) Information on program costs, such as tuition and fees,
for participants in the applicable program.
8)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.
9)Authorize a local workforce investment board to require higher
levels of performance than those required under existing law.
COMMENTS
1. Need for this bill?
California receives between $400 and $500 million in federal
WIA dollars annually. And in 2008/09, the state received an
additional $488.6 million from the American Recovery and
Reinvestment Act of 2009. The majority of these funds (85%)
are formula allocated to the 49 local WIBs which set policy
for how funds are invested locally and provide oversight of
employment services delivered. The rest of the funds (15%) are
disseminated at the Governor's discretion. California's 49
local WIBs set local policies and allocate resources to
respond to local markets to help struggling unemployed and
underemployed workers get and retain good jobs.
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California's Eligible Training Provider List (ETPL), was
established for the purpose of providing customer-focused
employment training for adults and dislocated workers.
California's statewide list of qualified training providers
offers a wide range of educational programs, including
classroom, correspondence, Internet, broadcast, and
apprenticeship programs. 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.
The author and sponsors of this bill contend that California
has not yet prioritized the development of the minimum
criteria for employment training service providers and has
instead requested a waiver of this federal requirement. Under
this waiver, the state is allowed to postpone the
determination of subsequent eligibility of training providers
and allows providers to re-enroll without appropriate state
accountability to ensure that quality training is being
provided. This bill is necessary to establish consistent
statewide standards, increase accountability, and enhance
public access to program outcome data to ensure that training
providers receiving federal WIA dollars provide high quality
training services.
This bill would authorize individuals who are eligible to
receive training services under WIA to have the opportunity to
select any of the eligible training providers from any of the
local areas in the state. This bill would also require the
California Workforce Investment Board to establish a procedure
for use by Local WIBs in determining the eligibility of a
provider of training services, as specified.
2. Background on the 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.
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WIA requires that programs be periodically determined eligible
to continue 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 sets out requirements for approval that includes, among
other things, the following:
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.
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 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
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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.
3. Suggested Clarifying Amendment :
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,
working conditions, classroom instruction and the specific
skills required for state certification as a journeyperson in
an apprentice occupation. The CAC aids the director of DIR in
formulating policies for the effective administration of
apprenticeship agreements. Existing law requires that all
apprenticeship programs be approved by the Chief of the
Division of Apprenticeship Standards.
(Labor Code � 3075)
Section (b) (3) of the bill (page 3, lines 1-3) states,
"Apprenticeship programs registered with the Division of
Apprenticeship Standards and approved by the California
Apprenticeship Council?" The author may wish to amend this
section of the bill to accurately reference the entity
responsible for the approval of an apprenticeship program.
4. Proponent Arguments :
According to proponents, workers in California face the
toughest jobs crisis since the Great Depression. With
declining state revenues and pressure on public resources,
proponents believe it is crucial that every dollar of federal
workforce funds is invested in high quality employment
services that connect workers to pathways to good jobs.
According to proponents, the ETPL was established to ensure
that recipients of WIA-funded training receive quality
services and outcomes. Unfortunately, proponents argue,
currently, each of California's 49 local WIBs establishes its
own requirements and standards for training provider
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eligibility. Proponents argue that 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. The author argues that large amounts of federal funding
are at stake and without minimum statewide standards to guide
workforce training programs, outstanding issues of
fragmentation, accountability and quality will continue.
Proponents contend that in conformance with federal law, this
bill requires the California Workforce Investment Board to set
minimum statewide standards for determining the eligibility of
providers of training services, thereby increasing
accountability and enhancing public access. Additionally, this
bill requires that training providers annually submit
performance and cost information and annually meet established
levels of performance. According to proponents, this bill
will also give the individuals that need the training a
centralized and streamlined tool to select their training
provider.
5. Opponent Arguments :
According to opponents, the bill states that apprenticeship
programs registered by the Division of Apprenticeship
Standards and that have graduated apprentices for five years
running shall be placed automatically on the state list of
eligible training providers unless those programs decide to
opt out of being on those lists. Opponents are concerned that
this bill fails to recognize unilateral or single employer
programs for the same automatic placement on the eligibility
list.
Opponents are also concerned that the requirement that an
apprenticeship program provide evidence of 5 years of
graduates in order to be automatically deemed an eligible
training provider penalizes a state-approved apprenticeship
program that has not operated long enough to have five years
of graduates. For example, opponents argue, a new electrical
apprenticeship program would have to operate for five years to
get its first graduate (in a five-year program) and then four
years beyond that to reach five years of graduates, for a
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total of nine years. Opponents contend that this requirement
has nothing to do with the quality of the program offered by
that provider but only serves to give preferential treatment
to older programs at the expense of newer programs.
6. Related Legislation :
SB 698 (Lieu) of 2011: Currently in Assembly Labor and
Employment Committee
This bill would require the Governor to establish, through the
California Workforce Investment Board, standards for
certification of high-performance Local Workforce Investment
Boards in accordance with specified criteria.
SB 776 (DeSaulnier) of 2011: Currently in Assembly
Appropriations Committee
This bill would require that Local WIBs spend a minimum
percentage of available federal WIA funds for adults and
dislocated workers on direct client services, workforce
training programs, and supportive services in a manner
consistent with federal law.
SUPPORT
California Labor Federation (Sponsor)
California Manufacturers and Technology Association (Co-Sponsor)
California State Building and Construction Trades Council
(Co-Sponsor)
American Federation of State, County and Municipal Employees,
AFL-CIO
California Teachers Association
Community College League of California
Los Rios Community College District
State Center Community College District
OPPOSITION
Associated Builders and Contractors of California (Unless
Amended)
Hearing Date: June 29, 2011 AB 1115
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Senate Committee on Labor and Industrial Relations
Hearing Date: June 29, 2011 AB 1115
Consultant: Alma Perez Page 11
Senate Committee on Labor and Industrial Relations