BILL ANALYSIS                                                                                                                                                                                                    �



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          Date of Hearing:   June 25, 2014

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Joan Buchanan, Chair
                     SB 923 (Pavley) - As Amended:  June 17, 2014
           
          SENATE VOTE  :   37-0
           
          SUBJECT  :   Educational apprenticeships: Educational  
          Apprenticeship Innovation Act

           SUMMARY  :   Establishes the Educational Apprenticeship Innovation  
          Prize (EdPrize) as a competitive grant program for purposes of  
          promoting apprenticeships, pre-apprenticeships, and career  
          pathways between local educational agencies (LEAS), institutions  
          of higher education, and businesses of importance to local  
          economies. Specifically,  this bill  :   


          1)Makes findings and declarations relating to high rates of  
            youth unemployment; the lack of opportunity to earn a college  
            degree and its likelihood of preventing  these young people  
            from fully participating in society, thus increasing costs for  
            local and state agencies due to increased reliance on social  
            welfare and public safety resource; Thousands of jobs across  
            multiple, vital industrial sectors have gone unfilled due to a  
            shortage of well-trained skilled workers, resulting in losses  
            in productivity, costs to employers and the public sector, and  
            an overall erosion of the California and national economy; the  
            current and future generations of Californians must be given  
            the opportunity to work and find avenues to gainful employment  
            in industrial areas relevant to their local communities and in  
            order to help them pursue a productive and satisfying futures.


          2)Establishes EdPrize as a competitive grant program for  
            purposes of promoting apprenticeships, pre-apprenticeships,  
            and career pathways between LEAS, institutions of higher  
            education, and businesses of importance to local economies. 


          3)Specifies the minimum criteria that the Superintendent of  
            Public Instruction (SPI) must use to determine the competitive  
            value of an application, including the ability of the proposed  
            program to do all of the following:








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             a)   Provide at least two years of apprenticeship,  
               pre-apprenticeship, or other forms of workforce training to  
               eligible pupils;


             b)   Place eligible pupils in apprenticeship,  
               pre-apprenticeship, or other forms of workforce training in  
               fields of local economic importance, as specified;


             c)   Provide eligible pupils with the opportunity to work in  
               an economic sector with gainful employment opportunities or  
               academic pathways that lead to either a certificate or an  
               associate degree;


             d)   Address the needs of the local or regional labor market;


             e)   Collaborate and include businesses, workforce investment  
               boards, labor or trade organizations, or postsecondary  
               educational institutions of local importance in the  
               development and operation of the program;


             f)   Provide a performance assessment of any programs  
               established or operated using past economic or workforce  
               development grants;


             g)   Create a written agreement among the applicant entities,  
               eligible pupils or their parents, and participating  
               employers in order to ensure commitment of the pupil's  
               academic and professional success and ensure the successful  
               completion of the apprenticeship, pre-apprenticeship,  
               work-based learning program, or educational pathway;


             h)   Provide participating eligible pupils with a worksite  
               mentor; and


             i)   Continue after the expiration of the grant funding.  








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          4)Defines the terms "eligible high school pupil" and "entity"  
            for the purposes of this article.


           EXISTING LAW:  


          1)Establishes various CTE programs for public schools including  
            but not limited to regional occupational centers and programs  
            (ROC/Ps), partnership academies, adult education programs, and  
            CTE programs in high schools and community colleges.  


          2)Requires each school district maintaining any of grades 7 -  
            12, inclusive, to offer to all otherwise qualified pupils  
            courses of study that provide pupils an opportunity to attain  
            entry-level employment skills in business or industry upon  
            graduation from high school.  


          3)Requires school districts to spend no less in 2013-14 and  
            2014-15 than they did in 2012-13 on ROC/Ps. If districts  
            received funding for ROCPs through a JPA, they must continue  
            to pass through those funds to the JPA in 2013-14 and 2014-15.  



          4)Establishes the California Career Pathways Trust which  
            appropriated $250 million in one-time funds in the form of a  
            competitive grant for expenditure in the 2013-14 fiscal year  
            through the 2015-16 fiscal year, inclusive.


          5)Makes grants available under the California Career Pathways  
            Trust for programs that accomplish any of the following:


             a)   Fund specialists in work-based learning that connects  
               school districts, county offices of education, charter  
               schools, and community colleges with business entities;


             b)   Establish regional collaborative relationships and  








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               partnerships with business entities, community  
               organizations, and local institutions of postsecondary  
               education;


             c)   Develop and integrate standards-based academics with a  
               career-relevant, sequenced curriculum following  
               industry-themed pathways that are aligned to high-need,  
               high-growth, or emerging regional economic sectors;


             d)   Provide articulated pathways to postsecondary education  
               aligned with regional economies; or


             e)   Build on existing structures, requirements, and  
               resources of the Carl D. Perkins, California Partnership  
               Academies, and ROC/Ps, including staff knowledge, community  
               relationships, and course development.


          1)Requires recipients of the California Career Pathways Trust  
            and the SPI to report to the Department of Finance, and to  
            relevant policy and fiscal committees of the Legislature,  
            outcome measures, which shall include, but are not necessarily  
            be limited to, pupil and student academic performance  
            indicators, the number and rate of school or program  
            graduates, attainment of certificates, transfer readiness,  
            postsecondary enrollment, and transitions to appropriate  
            employment, apprenticeships, or job training.


           FISCAL EFFECT  :   According to Senate Appropriations Committee,  
          this measure would have the following fiscal effects:
          1)Grants: Substantial ongoing costs, likely in the millions to  
            tens of millions of dollars; to the extent funds are  
            appropriated in the annual Budget Act.   
          2)Program administration: Approximately $85,000 (General Fund)  
            in annual CDE costs to administer the program.

           COMMENTS  :   
           Career Technical Education
           With the dramatic changes in business and industry processes and  
          procedures, as well as expectations from employers for those  
          preparing to enter the 21st century workforce, the SBE adopted  








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          revised CTE Model Curriculum Standards in January, 2013. These  
          CTE standards, although common to all, are customized to better  
          reflect the specific conditions and expectations of each  
          industry sector.  Standards for Career Ready Practices, within  
          the CCSS, are intended for all students and are in response to  
          the expectation of career and college readiness upon completion  
          of the high school experience.

          Under current law, districts are required to adopt alternative  
          means for pupils to complete the prescribed course of study  
          which may include practical demonstration of skills and  
          competencies, supervised work experience or other outside school  
          experience, CTE classes, courses offered by ROC/Ps,  
          interdisciplinary study, independent study, and credit earned at  
          a postsecondary institution.  Districts also have the option of  
          adopting alternatives for pupils to complete high school  
          graduation requirements. 

           Apprenticeships  
          According to the author, youth unemployment is one of the most  
          serious challenges to California's economic recovery.  Last  
          year, the Bureau of Labor Statistics estimated that 20% of  
          Californians age 16-24 were neither working nor in school,  
          creating the fourth-highest youth unemployment rate in the  
          nation.  Yet, despite this large, untapped demographic,  
          businesses often cite that young applicants do not have the job  
          skills needed to succeed.  This lack of opportunity prevents  
          young people from fully participating in society and can stunt  
          professional and personal growth.   To address this problem,  
           this bill  , looks to model programs in Switzerland and Germany  
          which have run world renowned apprenticeship programs that are  
          successful in helping students develop work skills and find job  
          placements; Massachusetts, South Carolina, and Minnesota have  
          also developed successful programs.

          Those model European programs have created far-reaching,  
          high-quality apprenticeship programs that connect young people  
          to well-paying careers. The German system of education and  
          training is renowned, and around 70 percent of Swiss young  
          people enter the labor market through some form of vocational  
          apprenticeship training. In his 2014 State of the Union address,  
          President Obama called for expanded access to apprenticeships  
          and improved job training programs at community colleges that  
          are better-aligned with the skills that employers demand.  This  
          bill  takes a small step in this direction.








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           Committee Considerations
           This bill duplicates much of the current pilot program  
          authorized as the California Career Pathways Trust.  The  
          existing program, like this bill, encourages the establishment  
          of career pathways that include apprenticeship programs.  While  
          this bill places an increased focus on the apprenticeship aspect  
          of career education, the committee may wish to consider whether  
          another grant program is wise until the results of the  
          California Career Pathways Trust program have been reported and  
          a more informed approach to CTE can be taken.  

           Related Legislation
           SB 897 (Steinberg) of 2014, in relevant part, codifies the  
          California Career Pathways Trust.  This bill is set for hearing  
          in the Assembly Education Committee on June 25.

          AB 2033 (Salas) of 2013, pursuant to the Agricultural Career  
          Technical Education Incentive Program , require the  
          Superintendent of Public Instruction to award a grant to a  
          school district that, in addition to meeting the existing  
          requirements of the grant program, demonstrates how the  
          expenditure of the grant funds will be consistent with its  
          adopted local control and accountability plan.  This bill is  
          pending in the Senate Agricultural Committee and has also been  
          referred to the Senate Education Committee.

          AB 1950 (Campos) of 2014, establishes the Career Education  
          Incentive Program under the administration of the CDE and  
          authorizes school districts, county offices of education,  
          charter schools, and community college districts to establish  
          career education consortia. The bill authorizes these consortia  
          to be organized as joint powers agencies. and requires the  
          Superintendent of Public Instruction, in developing the program,  
          to consider requiring consortia, as a condition of the receipt  
          of funds, to annually report certain information to the  
          governing boards of the member local educational agencies,  
          including member community college districts.  This bill failed  
          passage in the Assembly Appropriations Committee. 
           
          Prior Legislation  
          SB 660 (Hancock) of 2013, establishes new reporting  
          requirements, effective for the 2013-14 and 2014-15 fiscal  
          years, for county offices of education and school districts that  
          operate or participate in ROC/Ps.  This bill was set for hearing  








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          in the Assembly Education Committee on August 14, 2013, but was  
          cancelled at the request of the author.

          AB 1330 (Furutani), Chapter 621, Statutes of 2011, adds CTE, as  
          defined, as an option for pupils to fulfill the existing high  
          school graduation requirement to complete a course in visual or  
          performing arts or foreign language and sunsets these provisions  
          on January 1, 2017.  The Assembly Education Committee passed  
          this bill by a vote of 8-0.

          SB 253 (Wyland) of 2009, authorizes school districts and county  
          offices of education to offer pupils a CTE certificate upon  
          meeting specified requirements.  The Assembly Education  
          Committee passed this bill by a vote of 11-0. The bill died in  
          the Assembly Appropriations Committee.

          SB 381 (Wright) of 2009, requires districts adopting a college  
          preparation curriculum for high school graduation to require  
          students to also complete CTE courses in order to earn a high  
          school diploma.  The Assembly Education Committee passed this  
          bill by a vote of 6-3. The bill died in the Assembly  
          Appropriations Committee.

          SB 515 (Hancock) of 2009, requires that at least half of  
          sequenced CTE courses that are linked to regional or state high  
          priority workforce needs. The Assembly Education Committee  
          passed this bill by a vote of 9-0. This measure was vetoed by  
          Governor Schwarzenegger with the following veto message:

               I am returning Senate Bill 515 without my  
               signature. 

               During my Administration, I have worked to  
               revitalize career technical education (CTE)  
               programs throughout the state by increasing  
               funding for programs and facilities, streamlining  
               the credentialing process for teachers, and  
               supported expansion of existing programs. I  
               believe that current law provides sufficient  
               safeguards to ensure that the courses and  
               programs offered to our students lead them to  
               opportunities in the workforce or postsecondary  
               education. Placing additional restrictions on CTE  
               programs could prevent them from qualifying for  
               funding, limit expansion, or result in  








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               termination for non-compliance.

               For these reasons, I am unable to sign this bill.

               Sincerely,

               Arnold Schwarzenegger

          SB 725 (Hancock) of 2009, authorizes ROC/Ps to offer  
          apprenticeship preparation programs.  This bill died in the  
          Senate Appropriations Committee.

          AB 2448 (Hancock), Chapter 527, Statutes of 2006, refocuses  
          ROC/P services to high school students and ensure the courses  
          are part of occupational course sequences.  The Assembly  
          Education Committee passed this bill by a vote of 9-0. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           American Association of University Women
          Butte County Office of Education
          California School Employees Association
           
            Opposition 
           California Right to Life Committee, Inc.

           Analysis Prepared by  :    Jill Rice / ED. / (916) 319-2087