Apprenticeship Programs, Labor Standards for Registration, Amendment of Regulations, 71020-71038 [E7-24178]

Agencies

• DEPARTMENT OF LABOR

[Federal Register Volume 72, Number 239 (Thursday, December 13, 2007)]
[Proposed Rules]
[Pages 71020-71038]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-24178]



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Part V





Department of Labor





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29 CFR Part 29



 Apprenticeship Programs, Labor Standards for Registration, Amendment 
of Regulations; Proposed Rule

Federal Register / Vol. 72 , No. 239 / Thursday, December 13, 2007 / 
Proposed Rules

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DEPARTMENT OF LABOR

29 CFR Part 29

RIN 1205-AB50


Apprenticeship Programs, Labor Standards for Registration, 
Amendment of Regulations

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice of Proposed Rulemaking (NPRM); Request for comments.

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SUMMARY: The Department of Labor (DOL or Department) is issuing a 
Notice of Proposed Rulemaking (NPRM) to update the regulations that 
implement the National Apprenticeship Act of 1937. 29 U.S.C. 50. On 
February 18, 1977, the Department promulgated 29 Code of Federal 
Regulations (CFR) part 29 to establish, for certain Federal purposes, 
labor standards, policies and procedures for the registration, 
cancellation and deregistration of apprenticeship programs, and 
apprenticeship agreements. Part 29 also provided for the recognition of 
a State Apprenticeship Agency as an agency authorized to register local 
apprenticeship programs for Federal purposes, and for the revocation of 
such recognition. In the succeeding 30 years, the American economy and 
workforce have changed significantly. The proposed rule addresses those 
changes by both making the procedures for apprenticeship program 
registration more flexible and by strengthening oversight of program 
performance. The proposed rule also updates part 29 to incorporate 
gender neutral terms and technological advances in the delivery of 
related technical instruction. Such revisions will enable DOL to 
promote apprenticeship opportunity in the 21st century while continuing 
to safeguard the welfare of apprentices.

DATES: The Department invites interested persons to submit comments on 
this proposed rule. To ensure consideration, comments must be in 
writing and must be received on or before February 11, 2008.

ADDRESSES: You may submit comments, identified by Regulatory 
Information Number (RIN) 1205-AB50, by either one of the two following 
methods:
     Federal e-Rulemaking Portal: www.regulations.gov. Follow 
the Web site instructions for submitting comments.
     Mail/Hand Delivery/Courier: Written comments, disk, and 
CD-Rom submissions may be mailed or delivered by hand delivery/courier 
to Thomas M. Dowd, Administrator, Office of Policy Development and 
Research, U.S. Department of Labor, 200 Constitution Avenue NW., Room 
N-5641, Washington, DC 20210.
    Instructions: Please submit one copy of your comments by only one 
method. All submissions received must include the agency name, as well 
as RIN 1205-AB50.
    Please be advised that the Department will post all comments 
received on www.regulations.gov without making any change to the 
comments, including any personal information provided. The 
www.regulations.gov Web site is the Federal e-rulemaking portal and all 
comments posted there are available and accessible to the public. 
Therefore, the Department recommends that commenters safeguard their 
personal information such as Social Security Numbers, personal 
addresses, telephone numbers, and e-mail addresses included in their 
comments. It is the responsibility of the commenter to safeguard his or 
her information.
    Also, please note that due to security concerns, postal mail 
delivery in Washington, DC, may be delayed. Therefore, in order to 
ensure that comments receive full consideration, the Department 
encourages the public to submit comments via the Internet as indicated 
above.
    Docket: The Department will make all the comments it receives 
available for public inspection during normal business hours at the 
above address. If you need assistance to review the comments, the 
Department will provide you with appropriate aids such as readers or 
print magnifiers. The Department will make copies of the proposed rule 
available, upon request, in large print or electronic file on computer 
disk. The Department will consider providing the proposed rule in other 
formats upon request. To schedule an appointment to review the comments 
and/or obtain the proposed rule in an alternate format, contact the 
office of Thomas M. Dowd at (202) 693-3700 (VOICE) (this is not a toll-
free number) or (877) 889-5627 (TTY/TDD). You may also contact Mr. 
Dowd's office at the address listed above.

FOR FURTHER INFORMATION CONTACT: Sherril Hurd, Acting Regulation Unit 
Team Leader, Office of Policy Development and Research, U.S. Department 
of Labor, 200 Constitution Avenue NW., Room N-5641, Washington, DC 
20210; E-mail hurd.sherril@dol.gov; Telephone (202) 693-3700 (this is 
not a toll-free number).
    Individuals with hearing or speech impairments may access the 
telephone number above via TTY by calling the toll-free Federal 
Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION: This preamble is divided into three 
sections. Section I provides general background information on the 
development of the proposed revisions to 29 CFR part 29. Section II is 
a section-by-section analysis of the proposed regulatory text. Section 
III covers the administrative requirements for this proposed rulemaking 
as mandated by statute and executive order.

I. Background

    The National Apprenticeship Act of 1937 authorized DOL

to formulate and promote the furtherance of labor standards 
necessary to safeguard the welfare of apprentices, to extend the 
application of such standards by encouraging the inclusion thereof 
in contracts of apprenticeship, to bring together employers and 
labor for the formulation of programs of apprenticeship, and to 
cooperate with State agencies engaged in the formulation and 
promotion of standards of apprenticeship * * *

    In the 30 years since the Department promulgated the existing 
standards at 29 CFR part 29 that provide for the registration of 
apprenticeship programs, technological advances, demographic changes, 
and globalization have significantly altered the context in which 
apprenticeship programs operate. The revision of part 29 will enable 
the National Apprenticeship System to keep pace with changes in the 
economy and corresponding workforce challenges, continue 
apprenticeship's vital role in developing a skilled, competitive 
workforce, and further promote registered apprenticeship as an 
important talent development strategy offered through the public 
workforce investment system. For example, the proposed revisions 
enhance flexibility in the requirements for provision of related 
technical instruction, permit competency-based progression through an 
apprenticeship program, and establish requirements for education and 
training of apprenticeship instructors that align with developments in 
the workforce and education systems.
    In developing the proposed rule, DOL consulted extensively with its 
Advisory Committee on Apprenticeship (ACA). Chartered under the Federal 
Advisory Committee Act (FACA), the ACA provides advice and 
recommendations to the Secretary of Labor (Secretary) on a wide range 
of matters related to apprenticeship. The ACA is comprised of 
approximately 30 members with equal representation of employers, labor 
organizations, and the public. In June

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2006, the ACA unanimously adopted the draft regulatory text developed 
by the Committee's Work Group on Regulations and Competency-Based 
Training and, in August 2006, forwarded the recommended text to the 
Department. The ACA's recommendations focused on the provisions of 
existing part 29 (Sec. Sec.  29.1 through 29.11) that pertain to 
apprenticeship program standards, registration and deregistration.
    In addition to updating the provisions that address DOL's 
registration and oversight of apprenticeship programs, the Department 
proposes to revise the provisions of existing part 29 (Sec. Sec.  29.12 
and 29.13) that pertain to administration of the National 
Apprenticeship System. The Department drafted the proposed regulatory 
text with input from the National Association of State and Territorial 
Apprenticeship Directors (NASTAD) and from State Apprenticeship 
Agencies. The proposed provisions effectuate the Department's mandate 
under the National Apprenticeship Act by establishing clear 
accountability within the National Apprenticeship System.

II. Summary and Discussion of Regulatory Provisions: Labor Standards 
for the Registration of Apprenticeship Programs

    Throughout the proposed rule, the name of the organization in DOL 
that is responsible for apprenticeship has been changed from the Bureau 
of Apprenticeship and Training (BAT) to reflect its current name, the 
Office of Apprenticeship. All language that was gender specific has 
been modified to a gender-neutral term (e.g., journeyman has been 
changed to journeyworker).

Purpose and Definitions (Sec. Sec.  29.1 and 29.2)

    Proposed revisions in Sec.  29.1(b) add an additional purpose to 
this section to ``promote apprenticeship opportunity.'' This addition 
would further articulate the Department's mandate under the National 
Apprenticeship Act of 1937 to expand the National Apprenticeship 
System. In recent years, the Department has engaged in several pilot 
and demonstration programs to expand apprenticeship opportunities for 
workers in industries that have not traditionally used the registered 
apprenticeship model. This proposed addition would implement the 
Department's intention to further expand registered apprenticeship into 
new industries and occupations, and to continue to align registered 
apprenticeship with the changing workforce needs of business and 
industry.
    The Department proposes to delete existing Sec.  29.1(c), which 
provides contact information for individuals requesting further 
information about part 29. The information in this paragraph is out-of-
date. The Department has determined that contact information should not 
be codified, given the rate at which it becomes obsolete, so Sec.  
29.1(c) is proposed for deletion.
    Proposed Sec.  29.2 clarifies and redesignates existing definitions 
and establishes new definitions for certain terms used in the 
registration of apprenticeship programs and in the ongoing operations 
of the National Apprenticeship System. Proposed Sec.  29.2 organizes 
the definitions alphabetically. Thus, there is no longer a need to 
designate paragraphs in this section using an alphanumeric format. In 
addition, the proposed rule adds new definitions for the terms 
``competency,'' ``electronic media,'' ``interim credential,'' 
``journeyworker,'' ``Office of Apprenticeship,'' ``provisional 
registration,'' ``State office,'' ``supplemental instruction,'' 
``technical assistance,'' and ``transfer.'' Most of the revisions and 
additions reflect changes that State Apprenticeship Agencies, 
apprenticeship program sponsors, and the Department have incorporated 
into the National Apprenticeship System in the last decade. Those 
proposed definitions provide underpinnings for proposed provisions that 
offer greater flexibility for registered apprenticeship programs to 
address changing workforce demands.
    The Department proposes to carry forward the following existing 
definitions for terms defined in the current regulations: 
``administrator,'' ``apprentice,'' ``apprenticeship program,'' 
``cancellation,'' ``Department,'' ``employer,'' ``Federal purposes,'' 
``registration of an apprenticeship agreement,'' ``registration of an 
apprenticeship program,'' ``sponsor,'' and ``State.'' Accordingly, the 
Department is not inviting comment on those terms.
    Proposed Sec.  29.2 revises the existing definitions for 
``apprenticeship agreement'' and ``apprenticeship committee'' to 
clarify that an apprenticeship agreement is between an apprentice and 
either the apprentice's program sponsor, or an apprenticeship committee 
acting as an agent for the program sponsor. Program sponsor is a more 
appropriate term than ``employer,'' which is used in the current 
regulations for the entity with which the apprentice enters an 
apprenticeship agreement because the apprenticeship program sponsor is 
the entity that signs the apprenticeship agreement. The revision to 
``apprenticeship committee'' clarifies that the committee acts as an 
agent for the sponsor in the administration of an apprenticeship 
program.
    Proposed Sec.  29.2 revises the existing term ``certification'' to 
be ``certification or certificate'' and revises the existing 
definition. The proposed definition carries forward the existing 
provisions for certification of National Guidelines for Apprenticeship 
Standards and certification that an individual is eligible for 
probationary employment as an apprentice under a registered 
apprenticeship program. The proposed definition also incorporates two 
circumstances (issuance of a certificate that documents completion of 
apprenticeship, as provided in Sec.  29.5(b)(15), and issuance of a 
Certificate of Registration, as provided in Sec.  29.3(f)) that 
correspond to existing requirements but have not been previously 
included in the definition of certification. The proposed definition 
also adds the circumstance where a Registration Agency determines that 
an apprentice has successfully met the requirements to receive an 
interim credential. This added component of the definition facilitates 
compliance with proposed Sec.  29.5(b)(15), which provides for the 
issuance of an interim credential.
    Proposed Sec.  29.2 adds definitions for two related terms, 
``interim credential'' and ``competency.'' These definitions would be 
added because, in the past 6 years, business, industry, and labor have 
requested a more flexible and accountable National Apprenticeship 
System that meets their workforce development needs. To address these 
requests, the Department conducted pilot programs in which sponsors 
measured apprentices' attainment of certain skills and competencies 
rather than using the traditional, time-based approach.
    To this end, the Department has defined ``interim credential'' as 
``a document issued by the Registration Agency upon request of the 
appropriate sponsor as certification of competency attainment by an 
apprentice;'' and ``competency'' as ``the attainment of manual or 
technical skills and knowledge, as specified by an occupational 
standard.'' Rather than providing that an apprentice could only receive 
one credential (certificate of completion of apprenticeship), which is 
the norm under a time-based apprenticeship approach, the proposed 
definitions and the associated regulatory provisions would enable 
apprentices to obtain portable credentials

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commensurate with increasing skills and competencies acquired and 
demonstrated throughout an apprenticeship program.
    These proposed definitions also implement the Department's 
intention to provide multiple points of entry to and exit from 
apprenticeship programs, and would codify the Department's existing 
practice of registering apprenticeship programs that issue interim 
credentials. These provisions will formalize the process used in the 
pilot programs and further promote apprenticeship opportunities to 
employees and employers that have not previously participated in the 
National Apprenticeship System.
    Proposed Sec.  29.2 adds a new definition for ``electronic media'' 
for use in related technical instruction and defines the term to mean 
``media that utilize electronics or electromechanical energy for the 
end user (audience) to access the content, and includes, but is not 
limited to, electronic storage media, transmission media, the Internet, 
extranet, lease lines, dial-up lines, private networks, and the 
physical movement of removable/transportable electronic media and/or 
interactive distance learning.'' This definition provides for increased 
flexibility in the related technical instruction component of an 
apprenticeship program and enables the National Apprenticeship System 
to keep pace with the changing dynamics and progressive nature of 
education through distance learning and multiple delivery approaches. 
Additionally, the proposed definition would clarify that related 
technical instruction in the National Apprenticeship System is not 
confined to a physical classroom setting. The Department based this 
proposed definition on consultations with the ACA and NASTAD.
    Proposed Sec.  29.2 adds a new definition, ``journeyworker,'' which 
is ``a worker who has attained a level of skill and competency 
recognized within an industry as having mastered the skills and 
competencies required for the occupation.'' The Department proposes to 
add this definition to provide a designation of a level of skill, 
ability and knowledge possessed by an individual in a specific 
occupation, as defined and used by employers, industry, and labor, 
which is recognized as having attained mastery of that occupation. The 
definition is based on industry norms and common language used in the 
National Apprenticeship System.
    Proposed Sec.  29.2 adds a new term, the ``Office of 
Apprenticeship,'' which is defined as ``the office designated by the 
Employment and Training Administration to administer the National 
Apprenticeship System or its successor organization.'' This definition 
would be added in anticipation of any future name changes to the DOL 
entity responsible for oversight of the National Apprenticeship System. 
The definition is based on DOL's organizational structure for 
administration of the National Apprenticeship System.
    Proposed Sec.  29.2 adds a new term, ``provisional registration'' 
which refers to the 1 year provisional approval of a newly registered 
apprenticeship program. This definition has been added to facilitate 
compliance with Sec.  29.3(g), through which the Department seeks to 
ensure that new program sponsors are focused on development of 
successfully functioning apprenticeship programs.
    Further, proposed Sec.  29.2 expands the current definition of 
``Registration Agency,'' by listing the primary responsibilities of a 
registration agency to facilitate compliance with the requirements of 
this part.
    Proposed Sec.  29.2 revises the current definition of ``related 
instruction,'' by adding ``related technical instruction'' as part of 
the defined term. The proposed text specifies the methods by which 
related instruction may be provided and adds distance learning through 
``electronic media'' as defined in this section to the instructional 
methods that traditionally have been used. The revisions are based on 
the need for clarification of what constitutes related technical 
instruction and the acceptable methods for delivering related 
instruction.
    Proposed Sec.  29.2 revises the existing definition of 
``Secretary'' to mean the Secretary of Labor or any person designated 
by the Secretary. This revision explains who has authority to implement 
the revisions of this part.
    The Department proposes to revise the definitions for State 
Apprenticeship Agency and State Apprenticeship Council by separately 
defining the two entities. ``State Apprenticeship Agency'' is defined 
as ``an agency of a State government that has responsibility and 
accountability for apprenticeship within the State.'' The proposed 
revisions provide that State Apprenticeship Agencies may seek 
recognition and authority from the Office of Apprenticeship to register 
and oversee apprenticeship programs and agreements for Federal 
purposes. The proposed revisions also reflect the Department's view 
that it is best to recognize only State government entities, in order 
to ensure accountability for oversight and management of a State's 
apprenticeship system for Federal purposes.
    The Department proposes to separately define ``State Apprenticeship 
Council'' to help underscore the role a council would play in a State 
Apprenticeship Agency. The proposed revisions clarify that a State 
Apprenticeship Council is ineligible for recognition as the State's 
Registration Agency. The definition is based on the Department's view 
that it is best to recognize only State government agencies as 
Registration Agencies. The proposed definition also clarifies that a 
State Apprenticeship Council operates at the direction and discretion 
of the State Apprenticeship Agency. Depending on this direction and 
discretion, a State Apprenticeship Council may provide regulatory or 
advisory functions for the operation of the State's apprenticeship 
system.
    Proposed Sec.  29.2 adds a definition for ``State office,'' to 
facilitate compliance with proposed Sec.  29.13(b)(3) and the 
requirements for recognition of a State Apprenticeship Agency. The 
definition is based on the need to have a single identified point of 
contact with whom the Department will conduct the business of the 
National Apprenticeship System.
    Proposed Sec.  29.2 adds a new term, ``supplemental instruction,'' 
which is defined as ``instruction in non-core related requirements, for 
example, job site management, leadership, communications, first-aid/
CPR, field trips, and new technologies/processes.'' This new definition 
would facilitate compliance with proposed Sec. Sec.  29.5(b)(4) and 
29.7(e). The Department proposes this definition to make it clear that 
supplemental instruction focuses on non-core job requirements in 
response to requests from business, industry, and labor seeking 
clarification on the difference between related technical instruction 
and supplemental instruction.
    Proposed Sec.  29.2 adds a new term, ``technical assistance,'' to 
clarify the types of guidance and assistance that Registration Agencies 
provide to program sponsors for the implementation of this part. This 
new definition would spell out the guidance that a Registration Agency 
would provide to help program sponsors comply with the requirements of 
this part.
    Proposed Sec.  29.2 adds a new term, ``transfer,'' which is defined 
as ``a shift of apprenticeship registration from one program to 
another, or from one employer within a program to another employer 
within that same program. Transfer may be initiated either by the

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employer, the sponsor, or the apprentice.'' The definition has been 
added to correspond to the process addressed in proposed Sec.  
29.5(b)(13) for the transfer of an apprentice between and within 
apprenticeship programs. Apprentices' ability to transfer reduces the 
need for cancellation and re-registration of an apprentice, thereby 
promoting continuity of participation in apprenticeship.

Eligibility and Procedure for Registration of an Apprenticeship Program 
(Sec.  29.3)

    Section 29.3 covers the eligibility criteria and procedure for 
registering a program of apprenticeship. The proposed revisions and 
additions to Sec.  29.3 update the process by which the Department or a 
recognized State Apprenticeship Agency determines a program's 
eligibility for registration and oversees the operations of registered 
apprenticeship programs. While the substance of the proposed Sec.  29.3 
is based largely on the existing rule, some changes are proposed in 
order to further ensure high quality among all registered 
apprenticeship programs. Additionally, the revisions will assist 
program sponsors by providing for early intervention and technical 
assistance to enable program sponsors to continue their apprenticeship 
programs. Further, these provisions provide program sponsors with the 
means to measure apprentice progress and also encourage the development 
of a closer working relationship between the apprenticeship sponsor and 
Registration Agency staff.
    The Department proposes changes in paragraphs (a), (c), and (f) of 
proposed Sec.  29.3 to update and clarify terms, which are not intended 
to change the substance of those paragraphs. Proposed Sec.  29.3(b) is 
a revised statement of the criteria for apprenticeship program and 
agreement registration by a Registration Agency, that is substantially 
the same as the current regulation.
    Proposed Sec.  29.3(d) establishes a requirement for the 
appropriate Registration Agency to be notified within the first 45 days 
of an apprentice's probationary employment. This is a change from the 
existing 90-day requirement. Proposed Sec.  29.3(e) would require 
program sponsors to notify the appropriate Registration Agency within 
45 days of the completion of an apprenticeship program and notice to 
the Registration Agency of transfers and the cancellation or suspension 
of any apprenticeship agreement with a statement of the reasons 
therefore. This would be a change to existing Sec.  29.3(e), which 
simply requires ``prompt'' notice to the ``appropriate registration 
office.'' The Department proposes these changes to Sec. Sec.  29.3(d) 
and 29.3(e) to require specific and consistent timeframes which are 
intended to enhance the efficiency of the National Apprenticeship 
System.
    Proposed Sec.  29.3(g) is a new provision which establishes 
provisional approval of 1 year for new programs that the Registration 
Agency preliminarily determines comply with part 29. The Department 
would add this paragraph to increase the success rate of new programs 
by prescribing a review after the first year of program registration. 
Also, provisional registration would potentially discourage 
applications from prospective sponsors that do not have a long-term 
commitment to provide employment and training for registered 
apprentices.
    Proposed Sec.  29.3(h) is another new provision which establishes 
the process by which a registered program would move beyond provisional 
approval and provides for subsequent reviews at the completion of the 
first full training cycle, normally a 5-year period. Proposed 
paragraphs (g) and (h) are intended to ensure adequate oversight over 
apprenticeship programs and to further improve quality in the National 
Apprenticeship System.
    Proposed Sec.  29.3(i) addresses the timeframe for processing a 
sponsor's request for modification of a registered program, to improve 
customer service and promote consistency across the National 
Apprenticeship System. The proposed rule would require the Registration 
Agency to complete action on the request, whether by approving or by 
rejecting with appropriate guidance, within 45 days of receipt. This 
would differ from the existing rule, Sec.  29.3(g), which simply 
provides for ``prompt'' submission of requests for modification and 
sets no timeframe for response from the Registration Agency and 
provides no guidance on what the Registration Agency must do to process 
the application or modification.
    Proposed Sec.  29.3(j) would revise the timeframe set by existing 
Sec.  29.3(h), ``not less than 30 days nor more than 60 days,'' to 
provide that a union has 45 days to submit comments about a program 
application proposed by an employer or employers' association, where a 
union has the right, under a collective bargaining agreement or other 
instrument, to participate in an apprenticeship program but does not 
participate in any manner in the operation of substantive matters of 
the apprenticeship program. This reduced timeframe would further 
improve efficiency in the program registration process.
    Proposed paragraph Sec.  29.3(k) simply carries forward the 
provisions of existing Sec.  29.3(i), which covers program registration 
by an employer or group of employers where the employees to be trained 
do not have a collective bargaining agent, and adds employer 
associations to the groups that can propose programs for registration.

Criteria for Apprenticeable Occupations (Sec.  29.4)

    Proposed Sec.  29.4 updates the criteria for determining when an 
occupation qualifies as apprenticeable. Based on over 30 years of 
experience in implementing the current regulations, the Department 
proposes to revise the existing introductory language to indicate that 
apprenticeable occupations are specified by industry, including 
employers and labor representatives. Changes to paragraphs (a) and (b) 
align these paragraphs with the proposed format for this section, and 
are not intended to change the substance of those paragraphs. The 
proposed revision to Sec.  29.4(c) updates the provision to reflect 
changes to the means of progression through an apprenticeship program 
as discussed further in Sec.  29.5(b)(2).
    Proposed Sec.  29.4(d) is the same as the current regulation except 
that it adds ``learning'' after ``training.'' This proposed addition 
clarifies that registered apprenticeship involves learning subject 
matter relevant to an occupation, as well as training in that 
occupation.

Standards of Apprenticeship (Sec.  29.5)

    Proposed Sec.  29.5 updates the existing standards for registered 
apprenticeship programs to increase the flexibility of requirements for 
on-the-job learning, and related and supplemental instruction as 
defined in proposed Sec.  29.2, and provides for granting advanced 
standing or credit. Existing Sec.  29.5(b)(8), (b)(9), (b)(10) and 
(b)(14) would be carried forward unchanged and therefore are not being 
presented for comment. These sections are reprinted below for ease of 
reference.
    The proposed introductory text and paragraph (a) minimally revise 
the existing provisions for the sake of clarity. Proposed Sec.  29.5(b) 
outlines the proposed requirements for program standards. Changes to 
paragraphs (b)(1), (b)(3), (b)(5), (b)(6), (b)(7), (b)(16), and (b)(22) 
in proposed Sec.  29.5 update language to use current common terms such 
as ``skilled occupation,'' rather than ``skilled trade;'' and ``must'' 
rather than ``shall.''
    Proposed Sec.  29.5(b)(2), which is based on the existing 
requirement that work

[[Page 71024]]

experience must be consistent with industry practice, presents three 
methods by which an individual apprentice may progress toward the 
industry standard for work experience required under Sec.  29.4(c). 
These methods are: (i) a time-based approach involving completion of at 
least 2,000 hours of on-the-job work experience; (ii) a competency-
based approach involving successful demonstration of acquired skills 
and knowledge by an apprentice, as verified by the program sponsor; and 
(iii) a hybrid approach involving completion of a specified minimum 
number of hours plus the successful demonstration of competency. The 
time-based approach retains the 2,000-hour minimum of on-the-job work 
experience set by existing Sec.  29.4(c). In a competency-based 
approach, a program sponsor would allow an individual apprentice to 
demonstrate the requisite competencies for an apprenticeable occupation 
without having to satisfy a minimum number of hours of on-the-job work 
experience. In a hybrid approach, a program sponsor would provide an 
opportunity for an individual apprentice to demonstrate requisite 
competencies for an apprenticeable occupation after having completed a 
specified minimum number of hours of on-the-job work experience. For 
example, an apprentice may be required to complete 1,500 hours of on-
the-job work experience to attain basic skills and knowledge and then 
permitted to show the attainment of the required skills and knowledge 
through demonstrated competencies. The competency-based and hybrid 
approaches may enable an apprentice to progress through the program in 
less time than would be required under a time-based approach. Proposed 
Sec.  29.5(b)(2) will provide greater flexibility for registered 
apprenticeship programs to address career development plans of 
registered apprentices. This proposed approach reflects the experience 
of the traditional building and construction trades and industrial 
sectors with registered apprenticeship, and addresses the needs of new 
and emerging industries seeking to participate in the National 
Apprenticeship System.
    Proposed Sec.  29.5(b)(4) allows for related technical instruction 
to be accomplished through methods such as classroom, occupational or 
industry courses, electronic media, or other instruction approved by 
the Registration Agency. Proposed paragraph (b)(4) would also establish 
requirements for an apprenticeship instructor, which would be similar 
to States' requirements such as meeting the State Department of 
Education's requirements for vocational-technical instructor, and/or 
being recognized as a subject matter expert. It would also require that 
instructors have training in teaching techniques and adult learning 
styles. The Department has proposed these changes to further ensure 
quality in the related technical instruction component of registered 
apprenticeship by establishing minimum standards for apprenticeship 
instructors. Proposed paragraph (b)(4) provides flexibility to 
accommodate variations in the requirements for instructors in different 
industries and occupations.
    Proposed revisions to Sec.  29.5(b)(11) clarify that a written 
apprenticeship agreement must meet the requirements of the laws and 
regulations of a recognized Registration Agency.
    Proposed Sec.  29.5(b)(12) revises the existing requirements for 
granting an apprentice advanced standing or credit to include 
demonstrated competencies. This addition provides greater flexibility 
for an apprentice to progress through an apprenticeship program. 
Proposed Sec.  29.5(b)(13) clarifies and revises the existing 
requirements for transfer of apprentices between apprenticeship program 
sponsors. While existing paragraph (b)(13) only governs transfers 
within the same program, the proposed paragraph governs transfers 
between programs as well.
    Proposed paragraph (b)(13)(i) would require the program sponsor or 
committee to provide the transferring apprentice with a transcript of 
related training and on-the-job learning completed. This would provide 
the apprentice with a portable credential that could, for example, 
enable the apprentice to attain advanced standing or credit under Sec.  
29.5(b)(12). Proposed paragraph (b)(13)(ii) permits the transfer to be 
either to the same or to a related occupation in contrast to the 
current regulation which only mentions transfer to another employer in 
the same program. Proposed paragraph (b)(13)(iii) requires the 
execution of a new apprenticeship agreement. This expansion of 
transferability provides greater flexibility for apprentices, and is 
intended to accommodate variations in apprentices' career development 
plans in which an apprentice may need to transfer between 
apprenticeship programs, not just within one apprenticeship program.
    Proposed Sec.  29.5(b)(15) provides recognition for successful 
completion of apprenticeship or the attainment of an interim 
credential. The proposed revisions clarify that a certificate would be 
issued by a Registration Agency. The provision for interim credential 
has been added to ensure that apprentices receive credit for attaining 
particular skills or satisfying certain requirements as they progress 
in apprenticeship.
    Proposed Sec.  29.5(b)(17) clarifies that any modifications or 
amendments to program standards must be submitted to the Registration 
Agency for approval.
    Proposed Sec.  29.5(b)(18) simply incorporates the proposed term 
``Registration Agency'' into the existing requirement for the program 
sponsor to notify the Registration Agency of apprenticeship completion, 
transfer, suspension, and cancellation of apprenticeship agreements and 
makes a few other clarifying changes.
    Proposed Sec.  29.5(b)(19) replaces the existing term 
``termination'' with a more appropriate term, ``cancellation,'' to 
describe the cessation of an apprenticeship agreement between an 
apprentice and program sponsor prior to successful completion or 
transfer. The term cancellation does not carry the negative 
connotations associated with termination, and cancellation reflects the 
more common language. The proposed paragraph also provides that 
cancellations during an apprentice's probationary period will not 
adversely impact the sponsor's completion rates. The proposed rule adds 
this provision in recognition of the fact that apprentices leave 
apprenticeship programs, particularly during the probationary period, 
for numerous reasons, many of which have nothing to do with the quality 
of the apprenticeship program. Excluding such cancellations from the 
completion rate data is appropriate to avoid stigmatizing programs that 
happen to have a high attrition rate during the probationary period.
    Proposed Sec.  29.5(b)(20) simply consolidates the requirements for 
compliance with 29 CFR part 30 from the existing Sec.  29.5(b) 
introductory text and existing Sec.  29.5(b)(20) and provides some 
clarifying language.
    Proposed Sec.  29.5(b)(21) updates the existing requirement for 
name and address of the appropriate authority to receive, process and 
make disposition of complaints. The proposed paragraph simply adds 
telephone number and e-mail address as potential forms of contact 
information.

Program Performance Standards (Sec.  29.6)

    Proposed Sec.  29.6 is a new provision that would set new 
requirements for program performance. Proposed Sec.  29.6(a) provides 
that an apprenticeship program must have at least one registered 
apprentice in order to be designated and retain designation

[[Page 71025]]

as a registered apprenticeship program. This provision reflects the 
common sense notion that it would be pointless to have a registered 
program without apprentices.
    Proposed Sec.  29.6(b) provides a non-exclusive list of the tools 
and factors that must be considered in evaluating program performance. 
In particular, programs will be reviewed based on quality assurance 
assessments, Equal Employment Opportunity Compliance Reviews, and 
completion rates. These factors have been specified because they would 
enable a Registration Agency to develop a fair understanding of program 
quality. The Department recognizes that other tools and factors may 
also be useful. Therefore, the proposed provisions in Sec.  29.6(b) are 
not intended to limit the Registration Agency's discretion to use other 
factors and tools in addition to those listed.
    Proposed Sec.  29.6(c) provides for evaluation of completion rates 
of programs located in the same geographical areas, and as necessary, 
further review and provision of technical assistance to maintain and 
improve program performance. Under proposed Sec.  29.6(d), the 
cancellation of apprenticeship agreements during the probationary 
period will not have an adverse impact on a sponsor's completion rate. 
The use of completion rates in program reviews is not intended to limit 
or terminate existing apprenticeship programs that receive technical 
assistance from a Registration Agency and demonstrate improved program 
performance, or to impede prospective apprenticeship program sponsors. 
Rather, the use of completion rates will focus on strengthening the 
program outcomes of the National Apprenticeship System. The Office of 
Apprenticeship will provide guidance to its field staff and to State 
Apprenticeship Agencies about establishing bench marks for completion 
rates for use in program reviews as proposed in this section. Such 
guidance will enable the Registration Agency to use appropriate data in 
formulating bench marks, incorporate analysis of relevant data in 
program reviews, and provide technical assistance. While every 
reasonable effort will be made to improve program performance, the 
Department contemplates that a program that demonstrates persistent 
deficiencies will be proposed for deregistration under Sec.  29.8 of 
this part. This approach will maximize program sponsors' ability to 
improve program performance. These provisions will ensure program 
quality and accountability in the National Apprenticeship System.

Apprenticeship Agreement (Sec.  29.7)

    Proposed Sec.  29.7, which is based on existing Sec.  29.6, sets 
the requirements for apprenticeship agreements. An apprenticeship 
agreement, as defined in Sec.  29.2, is the written agreement between 
an apprentice and either the apprentice's program sponsor or committee 
acting as agent for the program sponsor(s), which contains the terms 
and conditions of the employment and training of the apprentice. Except 
for proposed paragraphs (b), (e), and (j), the changes simply update 
terminology and do not alter the existing requirements.
    Proposed Sec.  29.7(b) carries forward the existing requirement 
that the agreement include the apprentice's date of birth and adds 
provision for a space on the agreement in which apprentices would 
voluntarily provide their Social Security Number. The Registration 
Agency will use apprentices' Social Security Numbers for performance 
management and Davis Bacon Act purposes; in particular, for use in 
calculating employment outcomes of the National Apprenticeship System 
as defined in the Department's common measures for Federal job training 
programs. The Office of Management and Budget (OMB) has approved the 
request for Social Security Number information on an apprenticeship 
agreement (OMB Control Number 1205-0223).
    Proposed Sec.  29.7(e) updates the Apprenticeship Agreement to 
accommodate the information about the approach to apprenticeship 
progression (either time-based approach, competency-based approach, or 
hybrid approach, as defined in Sec.  29.5(b)(2)) that the 
apprenticeship sponsor has selected. The Department proposes to carry 
forward the existing requirement about the number of hours to be spent 
in related technical and supplemental instruction. The number of hours 
of related instruction specified in an Apprenticeship Agreement is 
unaffected by the approach to progression through an apprenticeship 
program chosen by the sponsor.
    Proposed Sec.  29.7(j) carries forward existing requirements 
regarding equal opportunity in all phases of apprenticeship employment 
and training.

Deregistration of a Registered Program (Sec.  29.8)

    Proposed Sec.  29.8 clarifies the existing Sec.  29.7 provisions 
for deregistration of registered apprenticeship programs. The existing 
regulation refers to ``Bureau [Office of Apprenticeship] registered 
programs.'' References to the Federal registration agency have been 
removed to make it clear that the section applies to registrations with 
all Registration Agencies. In addition, we propose to delete the phrase 
``but not limited to'' in the introductory language to proposed Sec.  
29.8(a) because it contributes nothing to the meaning of the paragraph. 
Proposed Sec.  29.8(a) also replaces the term ``registration officer'' 
with the term ``Registration Agency'' and establishes a requirement for 
sponsors whose program has been deregistered to refer all impacted 
apprentices to the Registration Agency for information about potential 
transfer to other registered apprenticeship programs. Proposed 
paragraphs 29.8(b)(1) through (b)(8) outline deregistration by the 
Registration Agency based upon reasonable cause.
    Additionally, proposed Sec.  29.8(b)(7) shifts Departmental 
decision making and action from the Secretary to the Administrator of 
the Office of Apprenticeship, the Office of Administrative Law Judges 
(OALJ) and the Administrative Review Board (ARB). The proposed 
revisions, which are consistent with revisions in proposed Sec. Sec.  
29.10 and 29.13, implement Secretary's Order 1-2002, 67 FR 64272, Oct. 
17, 2002.

Reinstatement of Program Registration (Sec.  29.9)

    Proposed Sec.  29.9 is revised to provide that requests for 
reinstatement must be filed with and decided by the Registration 
Agency.

Hearings (Sec.  29.10)

    Proposed Sec.  29.10 would institute a new procedure for appeals of 
deregistration decisions more in line with current practice at DOL. As 
noted in the discussion of Sec.  29.8, this procedure shifts 
Departmental decision making and action from the Secretary to the 
Administrator of the Office of Apprenticeship, the OALJ and the ARB. 
The proposed revisions implement Secretary's Order 1-2002, 67 FR 64272, 
Oct. 17, 2002.
    Under proposed Sec.  29.10(a), requests for hearing will be sent to 
the Administrator who will forward them to the OALJ. The OALJ will 
assign an Administrative Law Judge (ALJ) to hear the case. The ALJ will 
issue a notice of hearing. Under proposed Sec.  29.10(b), the ALJ would 
generally govern the hearing under the OALJ's rules of procedure in 29 
CFR part 18. Under proposed Sec.  29.10(c), discretionary appeals to 
the ARB would be available to any party dissatisfied with the ALJ's 
decision. The request for appeal must be filed within 15 days and must 
specify the parts of

[[Page 71026]]

the decision to which exception is taken. The ARB must decide whether 
to accept the appeal within 30 days, and must issue its decision within 
180 days after the close of the record.

Limitations (Sec.  29.11) and Complaints (Sec.  29.12)

    All modifications in these sections are changes to language that 
simply harmonize these sections with provisions and language updates 
discussed in other sections.

Recognition of State Apprenticeship Agencies (Sec.  29.13)

    Proposed Sec.  29.13 would revise the provisions (in current Sec.  
29.12) that address the recognition of State Apprenticeship Agencies 
for Federal purposes. These proposed revisions clarify how the Office 
of Apprenticeship oversees the National Apprenticeship System.
    Proposed Sec.  29.13(a) differs significantly from the existing 
regulation (Sec.  29.12(a)), in that it does not include State 
Apprenticeship Councils as entities eligible for recognition. Proposed 
Sec.  29.13(a) provides that the Department will ``recognize'' a State 
Apprenticeship Agency which complies with the specified requirements, 
granting that agency authority to register apprenticeship programs and 
apprentices for Federal purposes. The Department has proposed this 
change to ensure that the governmental entity to be held accountable 
for conformity with part 29 is clearly identified. Current regulations 
do not specify that a recognized Registration Agency must be a 
government entity. Proposed Sec.  29.13(a) clarifies this requirement 
and further aligns the proposed regulations for the National 
Apprenticeship System with the National Apprenticeship Act, which 
states that the Department is to ``cooperate with State agencies 
engaged in the formulation and promotion of standards of 
apprenticeship.''
    Additionally, proposed Sec.  29.13(a) provides that the 
Department's recognition of State Apprenticeship Agency confers ``non-
exclusive authority'' to determine whether an apprenticeship program 
meets published standards and is eligible for those Federal purposes 
which require such a determination. With this provision and 
corresponding language in proposed Sec.  29.13(j), the Department 
retains full authority to register programs and apprentices located in 
all States and Territories where the Office of Apprenticeship has 
determined such action is necessary to further the interests of the 
National Apprenticeship System. These provisions clarify the 
Department's interpretation of the existing rule and codify existing 
practice. The Department has long used its authority to register 
apprenticeship programs in Federal enclaves and has stepped in to 
register programs when a State Apprenticeship Agency has been unable to 
timely register apprenticeship programs.
    Proposed Sec.  29.13(a)(2) consolidates the provisions related to 
the State Apprenticeship Councils from existing Sec.  29.12(a)(2) and 
Sec.  29.12(b)(2). Proposed Sec.  29.13(b)(2) also deletes language in 
the existing regulation Sec.  29.12(b)(2) regarding voting procedures 
in a State Apprenticeship Council. These deletions are proposed 
because, under the proposed new rule under which only State government 
agencies will be recognized as State Apprenticeship Agencies, issues 
pertaining to State Apprenticeship Councils are under the direction and 
the discretion of the State Apprenticeship Agency, and are no longer 
appropriate matters for the Department to direct through the 
requirements of this part. Proposed Sec.  29.13(a)(3) through (a)(5) 
carry forward existing provisions in Sec.  29.12(a)(3) through (a)(5).
    Proposed Sec.  29.13(a)(6) establishes a new requirement for the 
State Apprenticeship Agency to integrate registered apprenticeship into 
the State's economic development strategies and public workforce 
investment system. Such integration would further the National 
Apprenticeship Act mandate to bring together employers and labor for 
the formulation of programs of apprenticeship. Through increased 
coordination, State Apprenticeship Agencies can promote registered 
apprenticeship to a broader audience and further expand apprenticeship 
into high growth, high demand occupations. This effort would promote 
registered apprenticeship as a critical post-secondary education, 
training, and employment option available through the One Stop Career 
Center system.
    Proposed Sec.  29.13(b) further clarifies basic requirements for 
the Department's recognition of a State Apprenticeship Agency. Proposed 
paragraph (b)(2) requires that State Apprenticeship Agencies provide 
sufficient budget and staff to carry out the functions of a 
Registration Agency. The Department is adding this provision to ensure 
that if a State that wishes to undertake the responsibilities required 
of a State Apprenticeship Agency, it must be prepared to commit the 
resources necessary to carry out those responsibilities. Currently, 
some State Apprenticeship Agencies depend completely on DOL staff to 
maintain registered apprenticeship functions in their States. Under the 
proposed rule, a State that seeks the authority to register 
apprenticeship programs and apprentices, for Federal purposes, within 
its jurisdiction, must assume corresponding responsibilities. The 
proposed rule deletes existing Sec.  29.12(b)(1) language that 
prescribes the location of a State Apprenticeship Agency and subsumes 
existing Sec.  29.12(b)(4), which requires the State to designate the 
entity responsible for registration and deregistration. This proposed 
deletion would increase States' flexibility to determine where within 
the State government the State Apprenticeship Agency authority resides.
    Proposed Sec.  29.13(b)(3) includes a new requirement to delineate 
powers and duties of the State Apprenticeship Agency, in addition to 
those of the State office and State Apprenticeship Council. Proposed 
Sec.  29.13(b)(4) restates the corresponding provisions of existing 
Sec.  29.12(b)(5). Proposed Sec.  29.13(b)(5) effectively restates the 
corresponding provisions of existing Sec.  29.12(b)(6).
    Proposed Sec.  29.13(b)(6) revises the existing provisions in Sec.  
29.12(b)(7) for registration of apprenticeship programs to emphasize 
occupations in high growth and high demand occupations. This provision 
aligns with the Department's focus on addressing industry demands, 
particularly in high growth occupations.
    Proposed Sec.  29.13(b)(7) expands the provisions of existing Sec.  
29.12(b)(8), which currently provide for reciprocal recognition for 
programs and standards other than in the building and construction 
trades. The proposed revision would cover all registered apprentices, 
apprenticeship programs, and standards, with no exceptions, for Federal 
purposes. This would enable apprentices registered in one State to work 
as registered apprentices in other States, if their apprenticeship 
program sponsor requests reciprocal recognition for Federal purposes 
from the Registration Agency. This proposed expansion promotes the 
National Apprenticeship Act's requirement for the furtherance of labor 
standards necessary to safeguard the welfare of apprentices. 
Additionally, this expansion of reciprocity will enable the National 
Apprenticeship System to further address the needs of businesses and 
labor, while maintaining high quality standards for apprenticeship 
programs.
    Proposed Sec.  29.13(b)(8) carries forward the provisions of 
current Sec.  29.12(b)(9)

[[Page 71027]]

with regard to cancellation of programs and apprenticeship agreements.
    Proposed Sec.  29.13(b)(9) is a new provision that has been added 
to clarify requirements for State Apprenticeship Agencies to submit 
proposed modifications in the State's apprenticeship legislation, 
regulations, policies, and/or operational procedures for Departmental 
review and approval prior to implementation for conformity with the 
National Apprenticeship Act and the implementing regulations in 29 CFR 
parts 29 and 30. The State Apprenticeship Agency's submission of 
proposed legislation, regulations, policies and/or operational 
procedures will enable the Department to identify and take action to 
resolve concerns.
    The proposed rule deletes existing Sec.  29.12(b)(10) because this 
requirement for employers to consult with collective bargaining agents 
about proposed unilateral apprenticeship program duplicates existing 
Sec.  29.3(h), which is being carried forward as proposed Sec.  
29.3(j).
    The proposed language implements the Department's authority to 
administer the National Apprenticeship System. The current regulations 
could be interpreted to permit States to change their laws and 
practices after approval of their applications, without the 
Department's review and approval. Such an interpretation could lead to 
a situation in which a State Apprenticeship Agency violated 29 CFR part 
29 without consequences. This was never the Department's intent. The 
proposed provision clarifies that to be recognized as a State 
Apprenticeship Agency, a State's law and procedures must conform with 
part 29, initially, and must continue to comply with those 
requirements.
    Proposed Sec.  29.13(c), which is based on existing Sec.  29.12(c), 
addresses the process by which State Apprenticeship Agencies apply for 
recognition from the Department. State Apprenticeship Agencies 
recognized by the Department under current regulations would be 
required to reapply for recognition within 1 year from effective date 
of the final rule. This shift furthers the Department's efforts to 
ensure continuing conformity with part 29, and effectuates the 
Department's authority to administer the National Apprenticeship System 
under the National Apprenticeship Act.
    Proposed Sec.  29.13(d) is a new provision that establishes a 5-
year period for recognition of a State Apprenticeship Agency by the 
Department and provides a process for renewal and maintenance of 
recognition. This provision has been added to ensure consistency and 
quality across the National Apprenticeship System. The existing 
regulations confer open-ended recognition on State Apprenticeship 
Agencies for Federal purposes and do not clearly specify that a State 
Apprenticeship Agency must continue to meet regulatory requirements for 
continued recognition. In the Department's view, a 5-year period 
provides a reasonable level of continuity for State Apprenticeship 
Agencies, while providing an efficient way to ensure that State 
Apprenticeship Agencies remain in conformity with Federal requirements.
    Proposed Sec.  29.13(e) is a new provision that addresses 
Departmental review and monitoring of Registration Agencies for 
compliance with the requirements of this part. This provision would 
effectuate the Department's authority to administer the National 
Apprenticeship System. The requirements of proposed paragraph (e), 
which provide for on-site review; self-assessment; and monitoring of 
the State's apprenticeship law and procedures, simply codify the 
Department's existing procedures for determining if State 
Apprenticeship Agencies are complying with part 29. The monitoring and 
reviews outlined in this proposed approach would form the basis for the 
Office of Apprenticeship's decision whether to continue recognition 
every 5 years.
    Proposed Sec.  29.13(f) is a new provision that would provide for 
the steps to be taken if a State Apprenticeship Agency is found to be 
out of compliance with part 29. These provisions are based on the 
Department's current practice of compliance assistance. Those practices 
include the provision of technical assistance, and, where problems are 
found, conferral of ``Conditional Recognition'' for 45 days during 
which the State Apprenticeship Agency must submit a corrective action 
plan to remedy the conforming activity for failure to maintain 
compliance. These proposed procedures are necessary to ensure that non-
conformity with part 29 is detected and addressed expeditiously.
    Proposed Sec.  29.13(g), which is based on existing Sec.  29.12(d), 
simplifies and clarifies the process for determining whether to deny a 
State Apprenticeship Agency recognition and provides the procedures for 
appeal of that decision. The proposed new procedure provides for a 
direct appeal by the State Apprenticeship Agency to the OALJ, for a 
hearing before an ALJ which will result in a recommended decision, with 
a final decision by the ARB. The hearing will be governed by the OALJ 
procedural rules in 29 CFR part 18 with some exception to ensure the 
reception of documentary evidence and to relax the application of 
formal rules of evidence.
    Proposed Sec.  29.13(h), which is based on existing Sec.  29.12(e), 
carries forward the requirements for conformity with pertinent law and 
the Office of Apprenticeship registration of apprenticeship programs 
and apprentices under certain conditions.
    Proposed Sec.  29.13(i) is a new provision which provides a process 
and procedure for a State to voluntarily relinquish its authority to 
administer registered apprenticeship for Federal purposes. This new 
section clarifies the Department's requirements for States seeking to 
transition administration of registered apprenticeship for Federal 
purposes from a State Apprenticeship Agency to the Office of 
Apprenticeship. These requirements include submitting a formal notice 
of intent, timely provision of all original, pertinent documents, and 
full cooperation during any transition period. These provisions would 
ensure smooth, seamless continuity of operations in the National 
Apprenticeship System, and further support the Department in fulfilling 
its obligations and responsibilities to registered apprentices and 
program sponsors. The proposed requirements in Sec.  29.13(i)(2) and 
(3) are identical to the corresponding provisions in proposed Sec.  
29.14(h), which sets the requirements for transition when the 
Department has withdrawn recognition.
    Proposed Sec.  29.13(j) provides that the Department retains full 
authority to register apprenticeship programs and apprentices, for 
Federal purposes, in all States and Territories where the Office of 
Apprenticeship determines that such action is necessary to further the 
interests of the National Apprenticeship System. This new provision 
clarifies that the Department's granting of recognition to a State 
Apprenticeship Agency does not confer exclusive authority to register 
apprenticeship programs and apprentices for Federal purposes in that 
State. The Department has determined that this clarification is 
necessary to ensure that all current and potential program sponsors 
seeking to participate in the National Apprenticeship System have full 
access to a Registration Agency regardless of their geographic 
location. Further, this clarification codifies the Office of 
Apprenticeship's existing practice. When State Apprenticeship Agencies 
have unreasonably delayed or denied registration to apprenticeship 
programs that meet the criteria established in this part, the 
Department has used its authority to register such apprenticeship 
programs for Federal purposes. The

[[Page 71028]]

National Apprenticeship Act and Sec.  29.1, ``Purpose and scope,'' of 
the existing regulations provide the Office of Apprenticeship the 
authority to register apprenticeship programs and apprentices for 
Federal purposes, as defined in existing regulations at Sec.  29.2.

Derecognition of State Agencies (Sec.  29.14)

    The Department also proposes to revise the provisions for 
derecognition of State Apprenticeship Agencies (existing Sec.  29.13, 
proposed Sec.  29.14) to further enhance the Department's oversight of 
the National Apprenticeship System. Proposed paragraphs (a), and (b), 
of proposed Sec.  29.14 carry forward existing procedures used under 
the current regulations and incorporate the updated term ``Office of 
Apprenticeship.''
    Proposed Sec.  29.14(c) clarifies how the Department will proceed 
with derecognition, depending on how the State Apprenticeship Agency 
responds to the notice issued under proposed Sec.  29.14(b). Proposed 
paragraph (c)(1) provides for suspension of the derecognition process, 
if the Office of Apprenticeship determines that the State 
Apprenticeship Agency has sufficiently specified proposed remedial 
actions and committed the State to remedying identified deficiencies. 
Proposed paragraph (c)(1)(i) provides for termination of derecognition 
proceedings, if the Office of Apprenticeship determines that the 
State's corrective action has addressed the identified concerns. 
Proposed paragraph (c)(1)(ii) provides the Administrator must issue a 
notice proposing derecognition and offering the opportunity for a 
hearing if the Administrator finds that the corrective action has 
failed to remedy the identified concerns.
    Proposed paragraphs (c)(2) and (3) provide a new procedure from 
existing Sec.  29.13(c)(2). Proposed paragraph (c)(2) provides that, 
where the State Apprenticeship Agency fails to either comply with the 
notice issued under Sec.  29.14(b) or request a hearing, the 
Administrator must take the steps described in Sec.  29.14(d), (e), 
(f), and (g) to assume control of registration in the State for Federal 
purposes and to transfer State registered programs to Federal 
registration.
    Proposed paragraph (c)(3) adopts the hearing and appeal procedures 
of Sec.  29.13(g) to govern the hearing, leading to a final decision by 
the ARB. In particular, this paragraph specifies the use of an ALJ to 
develop proposed findings and a recommended decision that would be 
referred to the ARB for final decision. As provided under Secretary's 
Order 1-2002, 67 FR 64272, Oct. 17, 2002, paragraph (a)(25), the 
Secretary has delegated the authority to review and make final 
decisions on administrative adjudication regarding the National 
Apprenticeship Act to the ARB. Therefore, the final decision on 
derecognition would be issued by the ARB.
    Proposed Sec.  29.14(d) and (e) carries forward the procedures for 
transferring the registration of apprenticeship programs from State to 
Federal registration under existing Sec.  29.13(d). Proposed paragraphs 
(d)(1) and (d)(2) present the notice requirements with which the Office 
Apprenticeship must comply. Proposed paragraph (e) carries forward the 
existing provisions that enable apprenticeship program sponsors 
impacted by State Apprenticeship Agency derecognition to request 
registration with the Office of Apprenticeship.
    Proposed Sec.  29.14(f) carries forward existing provisions in 
Sec.  29.13(e) that address the situation where a sponsor fails to 
request registration with the Office of Apprenticeship. Proposed Sec.  
29.14(g) carries forward existing provisions in Sec.  29.13(f) that 
require sponsors to notify apprentices of the impact of derecognition 
for Federal purposes, and imposes a new requirement on sponsors to 
refer all apprentices to the Office of Apprenticeship for information 
about potential transfer to other registered apprenticeship programs.
    Proposed Sec.  29.14(h) would establish requirements for a State 
Apprenticeship Agency whose recognition has been withdrawn for Federal 
purposes to provide all documents relating to the State's 
apprenticeship programs to the Department and to cooperate fully during 
the transition period. The proposed requirements are identical to the 
corresponding provisions in proposed Sec.  29.13(i)(2) and (3).
    Proposed Sec.  29.14(i) carri