BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 1870 (Alejo)
          As Introduced  February 19, 2014
          Majority vote 

           LABOR & EMPLOYMENT         5-1  APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Roger Hern�ndez, Alejo,   |Ayes:|Gatto, Bocanegra,         |
          |     |Chau, Holden,             |     |Bradford,                 |
          |     |Ridley-Thomas             |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Grove                     |Nays:|Bigelow, Donnelly, Jones, |
          |     |                          |     |Linder, Wagner            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  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 the 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.

           EXISTING LAW  requires the CAC to distribute training  
          contributions received, less the expenses of the Department of  
          Industrial Relations for administration, by making grants to  
          approved apprenticeship programs for the purpose of training  
          apprentices as follows:

          1)If there is an approved multiemployer apprenticeship program  
            serving the same craft or trade and geographic area for which  
            the training contributions were made to the CAC, a grant to  
            that program shall be made.

          2)If there are two or more approved multiemployer apprenticeship  
            programs serving the same craft or trade and geographic area  








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            for which the training contributions were made to the CAC, the  
            grant shall be divided among "those programs" based on the  
            number of apprentices registered in each program.

          3)All training contributions not distributed as above shall be  
            used to defray the future expenses of the Department of  
            Industrial Relations for the administration and enforcement of  
            apprenticeship standards and requirements under existing law.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, this bill will result in no direct state impact as it  
          merely results in a redistribution of existing funds. 

           COMMENTS  :  This bill is sponsored by the State Building and  
          Construction Trades Council of California, who argues that it  
          will help ensure that every apprenticeship program in California  
          receives an equitable share of grants distributed by the CAC.   
          They contend that the current funding mechanism used to  
          determine the amount provided to each program has resulted in a  
          disproportionate distribution of funds to a limited number of  
          programs. 

          The sponsor illustrates the need for this bill with the  
          following example,  "As the formula is currently laid out, one  
          statewide apprenticeship program that has 200 total enrolled  
          apprentices receives a higher amount of training funds than 10  
          separate apprenticeship programs each training 200 apprentices  
          and operating in 10 different counties.  This means that even  
          though all 10 of the separate programs are training a total of  
          2,000 apprentices, they receive significantly less funding than  
          the program with statewide jurisdiction that is only training a  
          total of 200 apprentices.  [This bill] would fix this  
          discrepancy."

          Opponents, including the Western Electrical Contractors  
          Association, oppose this measure and argue that it changes the  
          long-standing method by which the state allocates apprenticeship  
          training grants without increasing the level of state funding  
          for this vital training.  They argue that the bill will created  
          some winners and losers and their programs will be at risk of  
          losing important funding.
           

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








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