Brief Description: Authorizing community colleges to deduct certain payments from tuition waivers.

Sponsors: Representatives Sells, Campbell, Fromhold, McCoy and Chase.

Hearing Date: 2/22/05

Staff: Barbara McLain (786-7383).

Background:

Apprenticeship programs enable individuals to learn trades and occupations through on-the-job training and related or supplemental instruction. Apprenticeship programs are sponsored by committees made up of joint employer and labor groups, individual employers, or employer associations.

Most apprenticeship committees contract with a community or technical college to provide the related or supplemental instruction for the program. The nature of the contract varies. Some training trusts hire their own instructor but use a college facility. Others rely fully on the college for instruction, location, and administration and record-keeping. In 1997, college presidents, the State Board for Community and Technical Colleges (SBCTC), and the apprenticeship training community agreed that there should be established rates for contracted training and rent payments. The contract rate for 2003-05 is $2,307 per full-time equivalent (FTE) apprentice and rent is $384 per FTE.

Even if the contract calls for the college to pay the apprenticeship committee, the apprentices in the program still owe their tuition to the college. A rule established by the SBCTC prohibits a college from deducting the tuition owed on behalf of apprentices from the training contract. As a result, the college and apprenticeship committee must complete two financial transactions.

Summary of Bill:

For courses offered for the purpose of related or supplemental instruction in an approved apprenticeship program, a community or technical college may deduct tuition owed from training contracts with apprentice organizations.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.