BILL ANALYSIS                                                                                                                                                                                                    �




                                                                  AB 1797
                                                                  Page A
          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 1797 (Rodriguez) - As Amended:  April 1, 2014 

          Policy Committee:                              LaborVote:7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the California Workforce Investment Board  
          (CWIB), in consultation with the Division of Apprenticeship  
          Standards (DAS), to identify ways to expand job training and  
          employment for allied health professions. Specifically, this  
          bill:

          1)Requires CWIB to do the following:

             a)   Identify opportunities for "earn and learn" job training  
               opportunities that meet the industry's workforce demands  
               and that are in high-wage, high-demand jobs.

             b)   Identify and develop specific requirements and  
               qualifications for entry into "earn and learn" job training  
               models and establish standards for corresponding skills  
               training programs that result in an industry-recognized  
               credential certifying that the individual is ready to enter  
               an "earn and learn" job training model in the allied health  
               professions.

             c)   Develop means to identify, assess, and prepare a pool of  
               qualified candidates seeking to enter "earn and learn" job  
               training models.

          1)Requires the CWIB to prepare and submit a report on findings  
            and recommendations to the appropriate policy committees of  
            the Legislature on or before December 1, 2015.

           FISCAL EFFECT  

          No significant impact to the CWIB as the Health Workforce  









                                                                  AB 1797
                                                                  Page B
          Development Council currently performs much of the activities  
          required in the bill. Minor costs to prepare and submit a report  
          to the legislature, likely funded through Workforce Investment  
          Act discretionary funds.

          COMMENTS  

           1)Purpose.  Health care providers face a range of employment and  
            workforce issues. There are significant shortages of  
            healthcare workers in certain occupations and geographic  
            areas, while there is oversupply in other areas.  An aging  
            population, population growth, and federal health reform will  
            likely contribute to the increased demand.  Because the cost  
            to train healthcare workers is high, turnover can be a  
            significant expense for healthcare industry employers.

            According to the author, "earn and learn" job training  
            programs (including apprenticeship) have been increasingly  
            recognized as a highly effective workforce strategy for  
            building skills and earnings in entry- and middle-level jobs,  
            for increasing productivity, and for aligning employer demands  
            with the supply of workers for this critical industry.  These  
            training programs can be a critical part of the workforce  
            strategy related to healthcare reform as it is seen as a way  
            to train long-term care workers and address workforce issues,  
            including recruitment and retention, training a quality  
            workforce and improving quality of patient care.

           2)Background  . According to a recent white paper<1> produced on  
            behalf of the CWIB, the recent economic downturn has caused  
            high levels of unemployment in all sectors of California's  
            economy, but low-skilled adult workers and youth have  
            disproportionately borne the brunt of the economic crisis and  
            require support as they seek to enter the workforce.

            The white paper identified "earn and learn" models to include  
            on-the-job training, summer youth employment programs,  
            subsidized employment under the Temporary Assistance for Needy  
            Families (TANF) emergency fund, and registered apprenticeship  
            programs.  
            --------------------------
          <1> "Apprenticeship as a Critical Component of an 'Earn and  
          Learn' Job Training Strategy in California."  White Paper  
          Produced on Behalf of the CWIB by the Interagency Working Group  
          on Earn and Learn Job Training Strategies and Apprenticeship in  
          California." (December 2012).








                                                                  AB 1797
                                                                  Page C

            The CWIB has been looking at ways to address health workforce  
            needs. In August 2010, the CWIB established the Health  
            Workforce Development Council (Council) to engage a broad  
            range of public and private stakeholders to achieve its  
            mission of helping to expand California's health workforce.   
            To support the process, the CWIB and the Office of Statewide  
            Health and Planning Development (OSHPD), jointly secured a  
            federal health workforce planning grant from the Health  
            Resources and Services Administration.  The Council issued a  
            report in January 2013 that found among other things,  
            California does not have sufficient capacity in many key  
            professions and regions to meet current and future health  
            workforce needs. 

           3)Prior legislation  .

             a)   AB 2375 (Hern�ndez) of 2008 required the Office of  
               Statewide Health Planning and Development (OSHPD), in  
               collaboration with the California Workforce Investment  
               Board (CWIB), to establish the Health Professions Workforce  
               Task Force (taskforce) to assist in the development of a  
               health professions workforce master plan for the state to  
               assess the state of the health professions workforce. The  
               bill was held on the Senate Appropriations suspense file.

             b)   AB 657 (Hern�ndez) of 2009 required the Office of  
               Statewide Health Planning and Development (OSHPD), in  
               collaboration with the California Workforce Investment  
               Board, to establish a task force to assist OSHPD in  
               developing a health care workforce master plan for the  
               state. This bill was vetoed. 


           Analysis Prepared by  :    Misty Feusahrens / APPR. / (916)  
          319-2081