BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1870
                                                                  Page  1

          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 1870 (Alejo) - As Introduced:  February 19, 2014 

          Policy Committee:                              LaborVote:5-1

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

           SUMMARY  

          This bill makes changes to existing law related to the  
          distribution of training contributions by the California  
          Apprenticeship Council (CAC) to approved apprenticeship  
          programs.  Specifically, this bill provides that if there are  
          two or more approved multiemployer apprenticeship programs  
          serving the same craft or trade and geographic area for which  
          the training contributions were made to CAC, the grant shall be  
          divided among "all the approved multiemployer apprenticeship  
          programs serving the same craft or trade in California" based on  
          the number of apprentices registered in each program.

           FISCAL EFFECT  

          No direct state impact.  The bill results in a redistribution of  
          existing funds. 

           COMMENTS  

           1)Purpose  . According to the sponsor, the State Building and  
            Construction Trades Council of California, this bill will help  
            ensure that every apprenticeship program in California  
            receives an equitable share of grants distributed by the CAC.   
            They contend the current funding mechanism determine the  
            amount provided to each program results in a disproportionate  
            distribution of funds to a limited number of programs. 
           
          2)Background  . Apprenticeship programs can operate on a county or  
            other local regional form, or on a statewide basis. The  
            sponsor contends that county level or regional based [joint  
            apprenticeship training committee (JATC)] apprenticeship  
            programs have a much higher graduation rate than unilateral  








                                                                  AB 1870
                                                                  Page  2

            programs that operate on a multi-county or statewide basis but  
            receive a disproportionate amount of funding. 

            For example, according to the Division of Apprenticeship  
            Standards, JATCs graduated 712 inside wiremen/sound and  
            communication installers in 2012, over 80% of all graduates  
            statewide for electrical worker apprenticeship programs.   
            Despite JATCs graduation rates, the statewide programs  
            received $121,492 from the total annual training funds for  
            this craft while the JATC's received $48,245. Further, only 14  
            of the 25 eligible JATC's received any funds at all. 
                
            3)Support  .  Supporters, including the State Building and  
            Construction Trades Council, state, "Without this change,  
            certain programs, both union and nonunion, that cover multiple  
            geographic areas will unfairly be allowed to receive  
            contributions in excess of the number of apprentices  
            registered in the program.  This becomes particularly  
            problematic when statewide programs draw money from areas that  
            the program is authorized to serve but doesn't actually  
            serve."

           4)Opposition  . Some contractors, including the Western Electrical  
            Contractors Association (WECA) oppose this measure.  They  
            contend the bill changes the long-standing method by which the  
            state allocates apprenticeship training grants without  
            increasing the level of state funding for this training,  
            thereby creating some winners and losers. 


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