BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1308


                                                                    Page  1


          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1308 (Perea)


          As Amended  June 23, 2015


          Majority vote


           -------------------------------------------------------------------- 
          |ASSEMBLY:  |      | (May 4, 2015) |SENATE: |      | (June 25, 2015) |
          |           |53-23 |               |        |26-12 |                 |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |
           -------------------------------------------------------------------- 


          Original Committee Reference:  L. & E.




          SUMMARY:  Revises a specified "needs requirement" under existing  
          law related to the approval of apprenticeship programs.   
          Specifically, this bill:


          1)Requires, in order to establish that apprenticeship training  
            needs justify the approval of a new program, that existing  
            programs do not have the capacity, or neglect or refuse, to  
            dispatch sufficient apprentices to qualified employers who  
            "have requested apprentices", as shown by a "sustained pattern  
            of unfilled requests."


          2)Eliminates a provision of existing law that authorizes the  
            California Apprenticeship Council to approve a new  
            apprenticeship program if special circumstances, as  








                                                                    AB 1308


                                                                    Page  2


            established by regulation, justify the establishment of the  
            program.


          3)Provides that for purposes of this requirement, an existing  
            apprenticeship program serves the "same craft or trade" as a  
            proposed apprenticeship program when there would be a  
            substantial overlap in the work processes covered by the  
            programs or when graduates of the existing program would be  
            qualified to perform a substantial portion of the work that  
            would be performed by graduates of the new program.  


          The Senate amendments add co-authors.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          COMMENTS:  This bill is sponsored by the State Building and  
          Construction Trades Council.  They argue that it provides much  
          needed clarification to Division of Apprenticeship Standards  
          (DAS) for the purpose of determining when an existing program is  
          deficient.  Adding "have requested apprentices" to the law  
          clarifies that contractors must actually request apprentices  
          before existing programs may be found to lack the capacity or  
          willingness to dispatch them.   The sponsor states that during  
          Governor Schwarzenegger's administration, the DAS sought to rely  
          on Employment Development Department projections of future  
          apprentice needs to justify approval of new programs even though  
          there was no evidence contractors had sought apprentices from  
          existing programs and were unable to receive them.


          In addition, current law allows the California Apprenticeship  
          Council (CAC) to promulgate a regulation providing for "special  
          circumstances" that justify approval of new apprenticeship  
          programs even if one is not needed.  The sponsor notes that this  
          statutory provision was adopted in 1999, and CAC has never  
          promulgated such a regulation.  Therefore, this bill removes  
          this statutory provision.  








                                                                    AB 1308


                                                                    Page  3




          Finally, the sponsor states that this bill protects existing  
          high performing programs that graduate apprentices by ensuring  
          the DAS approves new programs only when the proposed new program  
          does not substantially overlap with an existing program's work  
          processes.


          Opponents argue that this bill exacerbates the damaging aspects  
          of the needs test by adding ambiguous language and deleting the  
          very modest authority of the CAC to approve a new apprenticeship  
          program "justified by special circumstances by regulation."   
          While it may be suggested that adding a requirement that there  
          be a "sustained pattern of unfilled requests" to justify new  
          apprenticeship opportunities, they argue that this vague  
          requirement of "sustained" will never be satisfactory to those  
          who prefer monopoly over fair and open competition and training  
          opportunities for all.


          Analysis Prepared by:                                             
          Ben Ebbink / L. & E. / (916) 319-2091FN: 0001084