[Federal Register Volume 89, Number 11 (Wednesday, January 17, 2024)]
[Proposed Rules]
[Pages 3118-3298]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27851]



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Vol. 89

Wednesday,

No. 11

January 17, 2024

Part III





Department of Labor





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 Employment and Training Administration





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29 CFR Parts 29 and 30





National Apprenticeship System Enhancements; Proposed Rule

Federal Register / Vol. 89 , No. 11 / Wednesday, January 17, 2024 / 
Proposed Rules

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DEPARTMENT OF LABOR

Employment and Training Administration

29 CFR Parts 29 and 30

[Docket No. ETA-2023-0004]
RIN 1205-AC13


National Apprenticeship System Enhancements

AGENCY: Employment and Training Administration, Labor.

ACTION: Proposed rule.

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SUMMARY: The Department of Labor (DOL or the Department) is proposing 
issuing this notice of proposed rulemaking (NPRM or proposed rule) to 
revise the regulations for registered apprenticeship by enhancing 
worker protections and equity, improving the quality of registered 
apprenticeship programs, revising the State governance provisions, and 
more clearly establishing critical pipelines to registered 
apprenticeship programs, such as registered career and technical 
education (CTE) apprenticeships. The proposed rule would improve the 
capacity of the National Apprenticeship System to respond to evolving 
employer needs, provide workers equitable pathways to good jobs, and 
increase the system's long-term resilience.

DATES: Interested persons are invited to submit written comments on the 
proposed rule on or before March 18, 2024.

ADDRESSES: You may send comments, identified by Docket No. ETA-2023-
0004 and Regulatory Identification Number (RIN) 1205-AC13, by any of 
the following methods:
    <bullet> Federal eRulemaking Portal: https://www.regulations.gov. 
Search for the above-referenced RIN, open the proposed rule, and follow 
the on-screen instructions for submitting comments.
    <bullet> Instructions: All submissions received must include the 
agency name and docket number for this rulemaking or ``RIN 1205-AC13.''
    Please be advised that the Department will post all comments 
received that relate to this NPRM without changes to https://www.regulations.gov, including any personal information provided. The 
https://www.regulations.gov website is the Federal eRulemaking Portal 
and all comments posted there are available and accessible to the 
public. Therefore, the Department recommends that commenters remove 
personal information (either about themselves or others) such as Social 
Security numbers, personal addresses, telephone numbers, and email 
addresses included in their comments, as such information may become 
easily available to the public via the https://www.regulations.gov 
website. It is the responsibility of the commenter to safeguard 
personal information.
    Docket: For access to the docket to read background documents or 
comments received, go to https://www.regulations.gov (search using RIN 
1205-AC13 or Docket No. ETA-2023-0004). The Department also will make 
all the comments it receives available for public inspection by 
appointment during normal business hours at the Office of Policy 
Development and Research, U.S. Department of Labor, Employment and 
Training Administration, 200 Constitution Avenue NW, Room N-5641, 
Washington, DC 20210. If you need assistance to review the comments, 
the Department will provide appropriate aids such as readers or print 
magnifiers. The Department will make copies of this NPRM available, 
upon request, in large print and electronic file. To schedule an 
appointment to review the comments or obtain the NPRM in an alternative 
format or both, contact the Office of Policy Development and Research 
at 202-693-3700 (this is not a toll-free number). You may also contact 
this office at the address listed above.
    Comments under the Paperwork Reduction Act (PRA): In addition to 
filing comments on any aspect of this proposed rule with the 
Department, interested parties may submit comments that concern the 
information collection (IC) aspects of this NPRM to: Office of 
Information and Regulatory Affairs, Attn: OMB Desk Officer for DOL-ETA, 
Office of Management and Budget, 725 17th Street NW, Washington, DC 
20503, Fax: 202-395-6881 (this is not a toll-free number), Email: 
<a href="/cdn-cgi/l/email-protection#430c0a11021c3036212e2a30302a2c2d032c2e216d262c336d242c35"><span class="__cf_email__" data-cfemail="4a0503180b15393f28272339392325240a252728642f253a642d253c">[email protected]</span></a>.
    Docket: Go to the Federal eRulemaking Portal at: https://www.regulations.gov/document/ETA-2023-0004-0001 for access to the 
rulemaking docket, including any background documents and the plain-
language summary of the proposed rule of not more than 100 words in 
length required by the Providing Accountability Through Transparency 
Act of 2023.

FOR FURTHER INFORMATION CONTACT: Michelle Paczynski, Administrator, 
Office of Policy Development and Research, U.S. Department of Labor, 
Employment and Training Administration, 200 Constitution Avenue NW, 
Room N-5641, Washington, DC 20210, Telephone: 202-693-3700 (voice) 
(this is not a toll-free number). For persons with a hearing or speech 
disability who need assistance to use the telephone system, please dial 
711 to access telecommunications relay services.

SUPPLEMENTARY INFORMATION: 

Preamble Table of Contents

I. Acronyms and Abbreviations
II. Executive Summary
III. Background
    A. Introduction to Registered Apprenticeship
    B. Statutory and Regulatory History of Registered Apprenticeship
    C. Need for the Proposed Rulemaking
    D. Stakeholder Outreach
    E. Vision and Goals of This Rulemaking
IV. Section-by-Section Discussion of the Proposed Changes
    A. Introduction to the Regulations for the National 
Apprenticeship System Under the National Apprenticeship Act of 1937
    B. Subpart A--Standards for Registered Apprenticeship Programs
    C. Subpart B--Career and Technical Education Apprenticeship
    D. Subpart C--Administration and Coordination of the National 
Apprenticeship System
    E. Part 30 Revisions
V. Regulatory Analysis and Review
    A. Executive Orders 12866 (Regulatory Planning and Review), 
14094 (Modernizing Regulatory Review), and 13563 (Improving 
Regulation and Regulatory Review)
    B. Regulatory Flexibility Act, Small Business Regulatory 
Enforcement Fairness Act of 1996, and Executive Order 13272 (Proper 
Consideration of Small Entities in Agency Rulemaking)
    C. Paperwork Reduction Act
    D. Executive Order 13132 (Federalism)
    E. Unfunded Mandates Reform Act of 1995
    F. Executive Order 13175 (Indian Tribal Governments)
    G. Internet Address of NPRM Summary (5 U.S.C. 553(b)(4))

I. Acronyms and Abbreviations

AAI American Apprenticeship Initiative
ACA Advisory Committee on Apprenticeship
ARB Administrative Review Board
BLS U.S. Bureau of Labor Statistics
CHIPS Act Creating Helpful Incentives to Produce Semiconductors Act 
of 2022
COVID-19 coronavirus disease of 2019
CTE career and technical education
DEIA diversity, equity, inclusion, and accessibility
DOL or the Department U.S. Department of Labor
E.O. Executive Order
ED Department of Education
EDP Energy Document Portal
EEO equal employment opportunity
ERISA Employee Retirement Income Security Act
ETA Employment and Training Administration
ETP Eligible Training Providers
FTC Federal Trade Commission

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FY fiscal year
HR human resources
IC information collection
ICR information collection request
ILO International Labour Organization
IRA Inflation Reduction Act of 2022
IRFA initial regulatory flexibility analysis
IT information technology
LEA local educational agency
NAA National Apprenticeship Act of 1937
NASTAD National Association of State and Territorial Apprenticeship 
Directors
NCES National Center for Education Statistics
NPRM or proposed rule notice of proposed rulemaking
O*NET Occupational Information Network
OA Office of Apprenticeship
OALJ Office of Administrative Law Judges
OIRA Office of Information and Regulatory Affairs
OMB Office of Management and Budget
Perkins Carl D. Perkins Career and Technical Education Act of 2006, 
as amended by the Strengthening Career and Technical Education for 
the 21st Century Act
PRA Paperwork Reduction Act of 1995
RAPIDS Registered Apprenticeship Partners Information Data System
RFA Regulatory Flexibility Act
RIA regulatory impact analysis
ROI return on investment
SAA State Apprenticeship Agency
TEGL Training and Employment Guidance Letter
TEN Training and Employment Notice
UMRA Unfunded Mandates Reform Act
VALOR Veterans Apprenticeship and Labor Opportunity Reform Act
WANTO Women in Apprenticeship and Nontraditional Occupations
WIOA Workforce Innovation and Opportunity Act

II. Executive Summary

    The Department's current regulations at 29 CFR part 29 addressing 
labor standards of apprenticeship and the governance of the National 
Apprenticeship System were last updated in a final rule published on 
October 29, 2008 (73 FR 64402). In this proposed rule, the Department 
seeks to strengthen, expand, modernize, and diversify the National 
Apprenticeship System by enhancing worker protections and equity, 
improving the quality of registered apprenticeship programs, and 
revising the State Apprenticeship Agency (SAA) governance provisions so 
that the National Apprenticeship System is more navigable and 
responsive to current worker and employer needs.
    The proposed rule would enhance the ability of the Employment and 
Training Administration's (ETA) Office of Apprenticeship (OA) to 
implement and administer the National Apprenticeship Act of 1937 (NAA), 
Act of Aug. 16, 1937, 75th Cong., ch. 663, 50 Stat. 664 (codified as 
amended at 29 U.S.C. 50), including approving apprenticeship programs 
and standards as a Registration Agency and recognizing SAAs, to protect 
the safety and welfare of apprentices, and to meet the 21st century 
skill needs of industry. Central to the expanded role is the ability to 
promote the value of apprenticeship, advance the benefits of 
apprenticeship as a diversity, equity, inclusion, and accessibility 
(DEIA) strategy for program sponsors, maintain National Apprenticeship 
System data for Registration Agencies, facilitate registered 
apprenticeship across the United States, and develop partnerships with 
stakeholders throughout the National Apprenticeship System.
    Essential to strengthening, modernizing, expanding, and 
diversifying the National Apprenticeship System is the advancement of 
worker protections and equity. The Department's proposal would create 
more safeguards for apprentices to ensure that they have healthy and 
safe working and learning environments as well as just and equitable 
opportunities throughout their participation in a registered 
apprenticeship program. This emphasis on worker protections and equity 
for apprentices is founded on the recognition that some populations, 
such as women and people of color, have historically faced systemic 
barriers to successfully access, participate in, and complete a 
registered apprenticeship program. This proposed rule seeks to mitigate 
barriers and facilitate equal access and greater success for 
underserved communities, as defined in proposed Sec.  29.2. 
Additionally, the proposed rule seeks to enhance opportunities for 
younger workers to safely and equitably participate in registered 
apprenticeship programs.
    Through this proposed rule, the Department is proposing to 
modernize and standardize the criteria and process for developing 
quality labor standards for apprenticeship. To maintain the integrity 
of registered apprenticeship as an industry-driven workforce 
development model, the Department recognizes that all apprenticeship 
programs must maintain labor standards that are objective, accountable, 
flexible and efficient. The Department seeks to fulfill this 
modernization effort by creating a framework for developing minimum 
labor standards of apprenticeship that combines the key attributes of 
the competency- and time-based approaches to on-the-job training into a 
unitary, coherent training model across all programs. The Department 
anticipates that modernizing and standardizing the labor standards for 
all registered apprenticeship programs would support the expansion of 
registered apprenticeships into new industries and occupations that do 
not have an established history with registered apprenticeship: 
programs in these industries new to apprenticeship would benefit from 
increased avenues to contribute to the development of industry- and 
occupation-specific training regimens, and from the increased clarity 
established by the universal baseline standards the Department seeks to 
apply across all registered programs. In addition, the Department is 
institutionalizing National Program Standards for Apprenticeship and 
National Guidelines for Apprenticeship Standards and aligning them with 
National Occupational Standards for Apprenticeship, a product that 
would further standardize industry-validated occupational standards for 
apprenticeship.
    The Department's proposal would also create a more objective, 
proactive, and transparent process for the determination of occupations 
suitable for registered apprenticeship that balances the flexibility 
needed to accommodate programs in new and emerging industries while 
establishing safeguards against adverse impacts to existing, 
established registered apprenticeship programs. The Department's 
proposed updates to the suitability process are designed to include 
flexibilities that would support expansion of the registered 
apprenticeship model to emergent occupations in non-traditional 
apprenticeship industries while providing protections against the 
splintering of existing programs covering occupations previously 
established as suitable for apprenticeship training (which could have a 
negative impact on workers' wages and job quality). The Department 
seeks to reinforce that new occupations suitable for registered 
apprenticeship meet industry-recognized criteria that support 
apprentices' ability to access a lifelong career pathway and attain 
economic mobility. Ensuring that registered apprenticeship programs 
lead to quality careers and enhance apprentices' economic mobility is 
one of the Department's guiding principles in overseeing the National 
Apprenticeship System, grounded in its statutory responsibility to 
protect the welfare of apprentices and the Administration's priority to 
promote economic opportunity for underrepresented or underserved 
populations. To help ensure that apprentices obtain the

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requisite skills and competencies for proficiency in an occupation 
suitable for registered apprenticeship, the Department has also 
proposed a new requirement in their approved quality labor standards 
for the assessment of apprentice progress by means of an end-point 
assessment.
    The Department is also proposing to revise the framework for 
collecting program sponsor and apprentice data to ensure greater 
accountability, transparency, and equity, and would utilize the 
information collected to oversee program reviews, improve apprentice 
demographic data, and establish new program- and system-level metrics 
and indicators.
    The Department has consulted, where appropriate, with the U.S. 
Department of Education (ED) in the development of the proposed 
registered CTE apprenticeship model, which seeks to align with 
secondary and postsecondary State-approved CTE programs, namely those 
funded by the Carl D. Perkins Career and Technical Education Act of 
2006,\1\ as amended by the Strengthening Career and Technical Education 
for the 21st Century Act \2\ (as codified at 20 U.S.C. 2301 et seq.) 
(Perkins). This new model would establish specific standards of 
apprenticeship for students enrolled in high school or in community and 
technical colleges who seek to continue their education while 
participating in the labor market, and would provide students 
opportunities to attain a recognized postsecondary credential, complete 
college coursework and a registered apprenticeship program, and 
participate in paid on-the-job learning. This model is intended to 
result in participating students' enrollment in a postsecondary 
educational program, an apprenticeship program registered under subpart 
A, placement into employment, or a combination thereof. The registered 
CTE apprenticeship regulations as proposed would not govern or 
otherwise impact the operation of ED's Perkins CTE program, but rather 
the program would offer State-approved CTE programs as an additional 
discretionary program, which could provide students the benefits of 
participation in both CTE and an aligned registered CTE apprenticeship 
program.
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    \1\ Public Law 109-270, 120 Stat. 683 (2006).
    \2\ Public Law 115-224, 132 Stat. 1563 (2018).
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    Finally, the Department is proposing to revise State governance 
requirements for States seeking to be recognized by OA as an SAA State, 
and for renewing such status. The Department proposes revising the 
governance process to promote greater uniformity and accountability, 
including the establishment of a State planning requirement involving 
the development of a strategic vision and goals to expand and diversify 
registered apprenticeship, as well as robust data collection and 
reporting to track the achievement of systemwide goals. Through this 
proposed revision, the Department also sees an opportunity for States 
to lead on innovation and partner with intermediaries to create an 
interconnected ecosystem that can support existing and new industries 
and career seekers in the National Apprenticeship System.
    The Department also proposes to make technical and conforming 
adjustments to the current text of 29 CFR part 30 (governing equal 
employment opportunity (EEO) in apprenticeships) as appropriate.

III. Background

A. Introduction to Registered Apprenticeship

    For nearly a century, registered apprenticeship has been an 
effective and successful workforce development model that has helped 
employers recruit, train, and retain highly proficient, diverse workers 
in the skilled occupations employers need, and that has provided job 
seekers with access to high-quality training and stable, well-paying 
careers. Registered apprenticeship is a structured, industry-driven, 
flexible workforce training model, and employers and industry 
stakeholders have updated and customized the model over decades to meet 
evolving workforce needs and address occupational skill needs that 
arise as incoming workers seek to establish or enhance successful 
careers. From the perspective of the apprentice, registered 
apprenticeship represents an affordable pathway to a high-quality, 
high-paying career. Apprentices obtain paid work experience and 
training so that they can sustain themselves and their families while 
training and preparing for success in their career of interest. 
Apprentices entering into a registered apprenticeship program share 
several common indicia: they enter into a paid job from the outset; 
they receive progressive wage increases reflecting their progress 
through a training regimen developed by industry stakeholders; they 
participate in related instruction informing them of the theoretical or 
academic concepts that underpin the work processes and competencies 
critical to success in their chosen career; and they ultimately develop 
a set of portable, in-demand job skills culminating with the awarding 
of a nationally recognized certificate of completion of a registered 
apprenticeship that benefit them throughout their careers.
    As an earn-and-learn workforce development strategy, registered 
apprenticeship combines on-the-job training with related (classroom) 
instruction, blending the practical and theoretical aspects of training 
for highly skilled occupations. On-the-job training and related 
instruction are critical, definitional elements of registered 
apprenticeship that provide practical benefits to both employers and 
apprentices. Apprentices training in an occupation apply occupational 
techniques and theoretical concepts throughout their training and, 
later, throughout their careers, which helps them develop into the 
productive, skilled, and safety-conscious workers whom employers need. 
Registered apprenticeship is an effective tool for both providing the 
training necessary for a worker's success in an occupation, and for 
measuring an apprentice's developing proficiency in the occupation. 
Because registered apprenticeship is primarily driven by industry 
needs, and employers are able to specifically tailor their workforce 
training regimen to such needs, registered apprenticeship provides 
assurances to employers that their incoming workforce is prepared and 
set up for success.
    Registered apprenticeship programs are sponsored voluntarily by a 
wide range of organizations, including individual small to large 
employers, employer associations, joint labor-management organizations, 
workforce intermediaries, and educational institutions. These and other 
stakeholders comprise the National Apprenticeship System, a voluntary 
system of registered apprenticeship programs and their sponsors, SAAs, 
and the industry stakeholders that drive the formulation of 
apprenticeship training regimens that best fit their industry.\3\ The 
National Apprenticeship System is further supported by the experts in 
workforce development policy that provide advice and counsel to the 
Department on matters relating to registered apprenticeship. These 
experts include the Advisory Committee on Apprenticeship (ACA); other 
workforce development programs that connect job seekers and employers 
(such as those programs funded through the Workforce Investment Act of 
1998,\4\ as amended by the Workforce Innovation and

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Opportunity Act \5\ (as codified at 29 U.S.C. ch. 32) (WIOA)); and 
educational institutions that prepare students for quality careers.
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    \3\ In registered apprenticeships, such training plans are 
referred to as ``work process schedules.''
    \4\ Public Law 105-220, 112 Stat. 936 (1998).
    \5\ Public Law 113-128, 128 Stat. 1425 (2014).
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    Apprenticeship is an international workforce development strategy 
that provides high-quality training for desirable careers in many 
countries.\6\ The Department engages in ongoing consultations and 
discussions with other national governments, international labor 
organizations, and other international stakeholders to further inform 
oversight of the system of registered apprenticeship in the United 
States. For example, the Department follows and contributes to the 
deliberations of the International Labour Organization (ILO) and the 
International Labour Conference that informs the ILO's recommendations 
and statements on best practices in labor policy (including the 
elements of quality apprenticeships). In addition, through joint 
declarations of intent and memoranda of understanding with foreign 
nations with sophisticated apprenticeship systems (such as with 
Austria, Germany, and Switzerland), the Department continues to engage 
with international partners to learn about the elements of successful 
apprenticeships across the globe, and to explore strategies for 
applying such lessons so as to improve the overall quality of training 
provided within the National Apprenticeship System.
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    \6\ For example, the ILO serves as an international repository 
of workforce development expertise from around the globe. See ILO, 
``Apprenticeships,'' https://www.ilo.org/global/topics/apprenticeships/lang-en/index.htm (last visited July 20, 2023).
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    Apprentices who complete a registered apprenticeship program 
receive an industry-recognized credential and a long-lasting economic 
benefit. Registered apprenticeship provides high-quality on-the-job 
training and related instruction, while conferring a nationally 
recognized credential upon successful completion of the program.\7\ The 
success of this workforce development model with respect to apprentice 
outcomes is clearly validated by the data; for example, 90 percent of 
apprentices who complete a registered apprenticeship program retain 
employment with the employer connected to the program, and apprentices 
who complete such programs earn an average annual salary of $77,000.\8\ 
One study of registered apprenticeship programs in ten States found 
that the estimated lifetime career earnings of registered 
apprenticeship participants in those States average $98,718 more than 
similar individuals who did not participate in a registered 
apprenticeship program. In the study, apprentices who completed the 
program in those States on average have lifetime earnings $240,037 
greater than similar individuals who did not participate in a 
registered apprenticeship program.\9\ Everyone benefits from enhanced 
systems to develop skilled workers in high-paying occupations, 
including job seekers and their families, employers, and communities. 
Education, industry, and government can work together to support 
quality training programs, supporting a national economy that provides 
opportunities for workers and businesses alike.
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    \7\ The Certificate of Completion, conferred to apprentices who 
complete a registered apprenticeship program, represents the 
universal, nationally recognized credential available in all 
registered apprenticeship programs. In addition, many registered 
apprenticeship programs provide interim credentials upon the 
successful completion of interim trainings related to the 
development of occupation- or industry-critical job skills, or an 
occupational credential recognized throughout an industry (i.e., a 
portable credential).
    \8\ OA, ``Explore Registered Apprenticeship,'' Aug. 2022, 
https://www.apprenticeship.gov/sites/default/files/dol-industry-factsheet-apprenticeship101-v10.pdf.
    \9\ Mathematica Policy Research, ``An Effectiveness Assessment 
and Cost-Benefit Analysis of Registered Apprenticeship in 10 States: 
Final Report,'' July 25, 2012, https://wdr.doleta.gov/research/FullText_Documents/ETAOP_2012_10.pdf.
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B. Statutory and Regulatory History of Registered Apprenticeship

    The NAA (29 U.S.C. 50) authorizes the Secretary of the Department 
of Labor (the Secretary) 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.'' Under this authority, the Department 
has established the registered apprenticeship program. The Department 
has set forth labor standards designed to facilitate these statutory 
directives through its implementing regulations at 29 CFR part 29. 
Those regulations prescribe minimum quality and content requirements 
with respect to a program's standards of apprenticeship and its 
apprenticeship agreements; establish procedures concerning the 
registration, cancellation, and deregistration of apprenticeship 
programs; and set forth a mechanism for the recognition of SAAs as 
Registration Agencies authorized to register and oversee registered 
apprenticeship programs in a State. A companion regulation, at 29 CFR 
part 30, also implements the NAA by setting forth minimum EEO 
requirements that registered apprenticeship programs must follow in 
order to obtain and maintain registration status. The first version of 
the labor standards of apprenticeship regulation at 29 CFR part 29 was 
issued by the Department in 1977 and was subsequently revised in 2008. 
The part 30 regulations were last updated in a final rule published in 
the Federal Register in December 2016.\10\
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    \10\ 81 FR 92026 (Jan 18, 2017) (2016 EEO final rule).
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    Within the Department, the responsibility for administering the 
requirements of the NAA and its implementing regulations rests with OA. 
OA oversees the National Apprenticeship System and currently serves as 
the Registration Agency for registered apprenticeship programs 
operating in 22 States and Puerto Rico.\11\ OA also provides 
recognition, oversight, and technical assistance on the requirements of 
29 CFR parts 29 and 30 to SAAs in the other States, and in the District 
of Columbia, the Virgin Islands, and Guam. In these ``SAA States,'' the 
SAA has requested and received recognition from the Department to serve 
as the entity authorized to register and oversee State and local 
apprenticeship programs for Federal purposes. In SAA States, SAAs must 
work closely with OA to implement registered apprenticeship programs 
consistent with the Federal regulations to maintain their recognition 
status.
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    \11\ For a list of States and Territories where OA serves as the 
Registration Agency, see OA, ``About Us,'' https://www.apprenticeship.gov/about-us/apprenticeship-system (last visited 
July 20, 2023).
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    In the 15 years since the current version of 29 CFR part 29 was 
published, the scope and visibility of registered apprenticeship in the 
United States has expanded significantly. Since 2008, when the 
registered apprenticeship regulations were last updated, significant 
developments in technology, including its capabilities and centrality 
to business' priorities and Americans' daily lives, have altered the 
landscape for the primary stakeholders in the apprenticeship system. 
Historically, registered apprenticeship has been a successful model for 
the construction industry and for the skilled trades. For example, 
Federal benefits are tied to the use of apprentices in registered 
apprenticeship programs on construction projects under the Davis-Bacon 
and related Acts. The Davis Bacon and Related Acts regulations allow 
employers on certain construction

[[Page 3122]]

projects to pay apprentices participating in a registered 
apprenticeship program at less than the prevailing wage.\12\ More 
recently, because the registered apprenticeship model has shown 
tangible benefits for both workers and employers in industries beyond 
the traditional trades, both Federal and State laws are increasingly 
promoting the utilization of registered apprenticeship for the training 
and employment of workers.\13\ For example, at the Federal level, WIOA 
promoted the benefits of registered apprenticeship to increase economic 
opportunities for workers. Registered apprenticeship programs are 
automatically eligible to be listed as Eligible Training Providers 
(ETPs) within the Federally funded workforce development system under 
WIOA,\14\ an important signal to job seekers, workforce policy 
stakeholders, and employers that registered apprenticeship programs 
offer quality occupational skills training intended to equip workers 
with the skills local employers are looking for. Additionally, since 
2016, the Department has been appropriated specific resources for the 
purposes of expanding registered apprenticeship programs. Most 
recently, the Inflation Reduction Act of 2022 (IRA) signed into law by 
President Biden provided for the first Federal tax credit directly tied 
to the utilization of apprentices in registered apprenticeship programs 
on certain clean energy projects. In addition, several agencies funded 
under the Bipartisan Infrastructure Law and CHIPS and Science Acts, 
respectively, have prioritized applications that partner with 
registered apprenticeship programs in certain funding 
opportunities.\15\
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    \12\ Wage and Hour Division, ``Fact Sheet #66: The Davis-Bacon 
and Related Acts (DBRA),'' Mar. 2022, https://www.dol.gov/agencies/whd/fact-sheets/66-dbra.
    \13\ For a list of States that offer tax credits and tuition 
support for apprentices, see OA, ``State Tax Credits and Tuition 
Support,'' https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/state-tax-credits-and-tuition-support (last 
visited July 20, 2023).
    \14\ Abt. Associates and Urban Institute, ``Challenges and 
Opportunities for Expanding Registered Apprenticeship with Workforce 
Innovation and Opportunity Act (WIOA) Title I: Findings from the 
American Apprenticeship Initiative Evaluation,'' Aug. 2022, https://wdr.doleta.gov/research/FullText_Documents/ETAOP2022-39_AAI_Brief-WIOA_Final_508_9-2022.pdf.
    \15\ DOL, ``The Good Jobs Initiative Impact,'' https://www.dol.gov/general/good-jobs/gji-impact (last visited Oct. 2, 
2023).
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C. Need for the Proposed Rulemaking

    Registered apprenticeship is growing and diversifying. It has 
maintained its status as the ``gold standard'' for workforce 
development in the construction and skilled trades sectors where 
registered apprenticeship has been prevalent and successful for 
decades. In addition, it is increasingly seen as a viable option for 
employers to develop the incoming workforce, and for job seekers to 
identify and pursue quality career paths in a wide range of new and 
emerging industries. In 2009, the year after the last update to the 
part 29 regulations was finalized, there were 420,140 active 
apprentices in the United States, participating in 26,622 active 
programs (of which, 1,456 were new programs started within the previous 
year).\16\ In 2022, there were 599,246 active apprentices participating 
in 24,400 active programs (of which, 2,343 were new).\17\ Registered 
apprenticeship has proven resilient as well--though the coronavirus 
disease of 2019 (COVID-19) pandemic caused a 12-percent decrease in new 
apprentices between fiscal years (FY) 2019 and 2020, the program 
bounced back with a 9-percent increase in new apprentices in FY21.\18\ 
Still, despite its growth and resiliency, registered apprenticeship is 
underutilized as a workforce development solution in the United States, 
where apprentices have constituted a significantly smaller share of the 
overall workforce than in other countries (such as Australia, Canada, 
Germany, and the United Kingdom).\19\
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    \16\ Apprenticeship data by fiscal year is accessible at OA, 
``About Apprenticeship,'' https://www.dol.gov/agencies/eta/apprenticeship/about (last visited July 20, 2023).
    \17\ Ibid.
    \18\ Ibid.
    \19\ See ``Apprenticeships and their potential in the U.S.,'' 
Keith Rolland, Federal Reserve Bank of Philadelphia, Winter 2015, 
https://www.philadelphiafed.org/community-development/workforce-and-economic-development/apprenticeships-and-their-potential-in-the-us 
(citing at footnote 14 a presentation by Professor Robert I. Lerman 
of the Urban Institute, which noted that apprentices constituted 
only 0.2% of the U.S. labor force, compared with 2.2% in Canada, 
2.7% in Great Britain, and 3.7% in Australia and Germany). See also 
Lerman, ``Proposal 7: Expand Apprenticeship Opportunities in the 
United States,'' The Hamilton Project of the Brookings Institution, 
2015, at p. 3, https://www.hamiltonproject.org/assets/legacy/files/downloads_and_links/expand_apprenticeship_opportunities_united_states_lerman.pdf.
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    Working with stakeholders like the ACA,\20\ the Department 
continues to identify strategies and opportunities to expand registered 
apprenticeship into new sectors. The Department views registered 
apprenticeship as an important piece of America's workforce development 
system and Americans' economic well-being, and is committed to meeting 
the moment by updating and modernizing the regulations in part 29. 
Ultimately, the Department's goal in pursuing this rulemaking is to 
facilitate the evolution of a National Apprenticeship System that 
maintains the hallmarks of apprenticeship quality developed over the 
past century, keeps pace with the evolving needs of a growing set of 
industries, and incorporates flexibilities and system modernizations to 
facilitate the expansion and growth of registered apprenticeship.
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    \20\ Expansion into new and emerging industries was a 
significant focus of the most recent term of the ACA. The ACA 
organized a subcommittee entirely focused on such expansion efforts, 
and workforce development experts from the employer, labor, and 
public sectors came together to deliberate and deliver 
recommendations on this topic in the ACA's 2023 Biennial Report. 
ACA, ``Biennial Report to the Secretary of Labor,'' May 10, 2023, 
https://www.apprenticeship.gov/sites/default/files/Final%20ACA%20Biennial%20Report%20-%20May%2010%202023.pdf.
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    In this proposal to revise the part 29 regulations, the Department 
seeks to advance several interrelated goals that shape the Department's 
vision for an improved National Apprenticeship System. Foremost among 
these goals is the preservation of quality throughout all registered 
apprenticeship programs, both existing programs and new programs that 
will enter the system in the coming years. Throughout the proposal, the 
Department seeks to improve the quality of apprenticeship training and 
the quality of working conditions for apprentices, and to further 
promote DEIA principles and goals throughout the National 
Apprenticeship System. In line with the Department's statutory 
responsibility to safeguard the welfare of apprentices, the Department 
is proposing quality improvements throughout the system to improve the 
protection, safety, and welfare of apprentices, such as proposed 
prohibitions on non-compete and non-disclosure provisions in 
apprenticeship agreements between sponsors and apprentices and enhanced 
protections against unreasonable participation costs for apprentices.
    Relatedly, the Department has determined that establishing improved 
accountability measures throughout the system is a necessary component 
of maintaining the high level of quality that makes registered 
apprenticeship such a useful tool for job seekers and employers in the 
United States. Accordingly, the Department proposes several 
accountability enhancements throughout this proposal, including a 
clearer assignment of responsibilities for employers that participate 
in a registered apprenticeship program (but do not serve as a program 
sponsor). In line with its goals to maintain quality and improve 
accountability throughout the National Apprenticeship System, the 
Department is also proposing

[[Page 3123]]

reforms to the governance structure and the relationship between OA and 
SAAs, including clarifying the respective roles and duties of SAAs and 
State Apprenticeship Councils.
    In addition to the foregoing proposed enhancements to the 
registered apprenticeship model, the Department has determined that the 
core concepts of earn and learn, quality labor standards, and skill 
development can be expanded to benefit many additional groups, 
including in-school youth and individuals from underserved communities 
who have often faced barriers to the job market. The Department 
proposes to establish regulations for an additional model of 
apprenticeship that aligns State-approved CTE programs, in particular 
those funded under the Perkins program, with foundational elements of 
apprenticeship. This model, which the proposed rule defines as 
registered CTE apprenticeship, would deliver the industry-specific 
portions of the paid on-the-job training and related instruction 
components of registered apprenticeship through a State-approved CTE 
program. The Department envisions that registered CTE apprenticeship 
programs would be most accessible and propitious for secondary and 
postsecondary students, and would generally target individuals at the 
earliest stages of their career development or who are transitioning 
into a different career.
    Accordingly, the Department's proposed baseline requirements for 
registered CTE apprenticeship programs would account for this target 
population and the increased alignment with educational institutions 
(as compared to registered apprenticeship). The Department's vision for 
the possible outcomes of registered CTE apprenticeship programs also 
aligns with the unique considerations of those in the earliest stages 
of career development--registered CTE apprenticeship programs would 
place apprentices in employment, a postsecondary educational program, 
or a registered apprenticeship program under subpart A, potentially 
with advanced standing or credit to accelerate their progress through 
the program. This new model would bridge the existing education and 
workforce development systems to build a skilled talent pipeline.
    Lastly, in the Department's view, the National Apprenticeship 
System and its diverse stakeholders would be better served by a more 
uniform and nationally applicable approach to system governance. 
Employers whose operations extend nationwide, or throughout a 
multistate region, face challenges when engaging with Registration 
Agencies across the National Apprenticeship System wherein the 
approach, parameters, and outcomes of such engagement may differ from 
State to State. Throughout this proposal, the Department seeks to 
establish a more uniform, national system, including by retaining the 
ultimate authority and responsibility to make determinations regarding 
an occupation's suitability for registered apprenticeship training and 
through the introduction of a State planning process for SAAs to 
establish transparency and alignment throughout the system. The 
Department also views the improved collection and analysis of 
apprenticeship data as a critically important goal of its proposal to 
update the part 29 regulations. To maximize the benefits of improved 
data collection for all stakeholders in the National Apprenticeship 
System, including apprentices, program sponsors, and employers, the 
Department seeks to establish a truly national and comprehensive 
database of information about registered apprenticeship programs and 
apprentices in order to accurately assess the performance and equity of 
these important workforce development programs.

D. Stakeholder Outreach

    The Department has been continuously engaged with apprenticeship 
stakeholders to pursue improvements and growth throughout the system, 
and such engagement has been particularly useful in the development of 
this proposal. The Department has sought advice, recommendations, and 
guidance from a number of external sources, research, and stakeholder 
inputs, including:
    <bullet> The 2022 interim recommendations \21\ of the ACA and its 
2023 Biennial Report,\22\ which incorporates the ACA's 2022 Interim 
Report recommendations and includes additional guideposts for OA to 
consider related to registered apprenticeship;
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    \21\ ACA, ``Interim Report to the Secretary of Labor,'' May 16, 
2022, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
    \22\ ACA, ``Biennial Report to the Secretary of Labor,'' May 10, 
2023, https://www.apprenticeship.gov/sites/default/files/Final%20ACA%20Biennial%20Report%20-%20May%2010%202023.pdf.
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    <bullet> Virtual Listening Sessions in 2021 coordinated by OA in 
partnership with various partners and stakeholders to hear perspectives 
on the current state of the National Apprenticeship System and to 
gather ideas and suggestions on ways to modernize registered 
apprenticeship programs; \23\
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    \23\ OA, ``2021 Apprenticeship Listening Sessions,'' Dec. 2021, 
https://www.apprenticeship.gov/sites/default/files/APPROVED%20Listening%20Session%20Report%20%2812-6-22%29%20%28002%29.pdf.
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    <bullet> National Online Dialogue in 2022, led by OA and launched 
by ePolicyWorks (entitled ``Advancing the National Apprenticeship 
System''), which asked participants, including various partners and 
stakeholders, to describe what they believed to be the optimal 
implementation of the registered apprenticeship model; \24\
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    \24\ Entries in the Advancing the National Apprenticeship System 
dialogue are available at Ideascale Feedback Software, ``Advancing 
the National Apprenticeship System,'' https://advancingapprenticeships.ideascale.com/c (last visited June 26, 
2023).
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    <bullet> Virtual Listening Sessions in 2023, coordinated by OA, 
wherein partners and stakeholders were given the opportunity to share 
perspectives on the current state of the National Apprenticeship System 
and to share policy recommendations for ways to strengthen and 
modernize the system. Questions for these sessions were developed, in 
part, by reviewing the ACA's 2022 Interim Report;
    <bullet> The 2023 Quality Apprenticeships Recommendation (ILO 
Recommendation No. 208), adopted by the 111th International Labour 
Conference on June 16, 2023, which describes the fundamental attributes 
of quality apprenticeships; \25\ and
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    \25\ ILO, ``Quality Apprenticeships Recommendation, 2023'' (ILO 
Recommendation No. 208), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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    <bullet> Regular stakeholder engagements related to the expansion 
of the registered apprenticeship model, including with industry groups, 
labor unions, worker advocates, State and local workforce partners, 
education systems, and intermediaries.
    Ongoing oversight of the National Apprenticeship System conducted 
by OA's staff at the national and regional level, including technical 
assistance and support provided to registered apprenticeship program 
sponsors, potential sponsors interested in apprenticeship, and other 
stakeholders, as well as formal reviews of individual programs, 
internal processes, and apprenticeship's place in national workforce 
development, has also been an important source of data that underpins 
this proposal. Analyzing lessons learned from OA's outreach and support 
provided to potential program sponsors has helped OA better

[[Page 3124]]

understand the misconceptions or barriers that employers perceive as 
they inquire about or pursue setting up a registered apprenticeship 
program. The Department considered these data in developing key 
priorities for the proposed regulation and to advance the Department's 
goal of expanding registered apprenticeship's footprint in new and 
emerging industries. Key reforms in this proposal that the Department 
expects will support this goal include system modernization and the 
definition and dissemination of new tools and resources to ease the 
program onboarding process.
    OA's role providing oversight of the National Apprenticeship System 
by conducting reviews of programs, working with Federal, State, and 
local partners to resolve issues or disputes, and otherwise monitoring 
stakeholder compliance with the existing regulations, has also been 
informative and instrumental in developing the enhanced quality 
elements in this proposed rule. Program and system oversight has 
influenced OA's identification of the hallmarks of quality registered 
apprenticeship programs, persistent issues that impact programs, and 
gaps or weaknesses in the existing regulatory framework. Analyzing 
these data has informed the development of key quality and 
accountability aspects of this proposal, including the proposed 
protections for apprentices against undue costs of participation and 
restrictions on their labor market mobility and clarifications 
regarding the appropriate roles and responsibilities of stakeholders 
within the system (such as clearly articulating the roles and 
responsibilities of participating employers and clarifications on the 
appropriate role of State Apprenticeship Councils in system 
governance).

E. Vision and Goals of This Rulemaking

    Overall, outreach and engagement with the National Apprenticeship 
System's many diverse stakeholders has been a central element of OA's 
efforts to identify high-level priorities for this proposed update to 
the part 29 regulations. These priorities reflect OA's consideration, 
synthesis, and proposed approach to the implementation of the 
recommendations and priorities arising from engagement with 
stakeholders holding diverse perspectives based on their backgrounds 
from different sectors of the economy and roles within the National 
Apprenticeship System.\26\ The resulting NPRM reflects a balance of 
priorities and perspectives that, in the Department's view, would 
result in a National Apprenticeship System that is responsive to 
industry needs, promote and maintain the hallmarks of high-quality 
apprenticeships, and clearly define and facilitate the roles and 
responsibilities of stakeholders. The following discusses this NPRM's 
guiding priorities, including the issues that give rise to each and the 
Department's proposed approach to addressing those issues.
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    \26\ For example, the ACA comprises equal numbers of 
representatives from the public, private, and labor sectors. Later 
in this NPRM, the Department proposes a parallel requirement for the 
makeup of State Apprenticeship Councils to ensure that these diverse 
perspectives (and the natural tension thereof) are considered as 
State Apprenticeship Councils deliberate and offer non-binding 
advice to SAAs.
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Expansion With Quality
    Stakeholders throughout the National Apprenticeship System, as well 
as potential stakeholders representing new industries or expressing 
interest in developing new opportunities for the system's growth, have 
consistently advised the Department that systemwide modernization is 
essential for advancing the Department's goal of expanding registered 
apprenticeship. The current regulations were finalized during an era in 
which the economy as a whole and the landscape for registered 
apprenticeship in particular were very different. The Department 
intends to modernize the regulations to reflect the contemporary era 
and the expanded potential for registered apprenticeship. The proposed 
rule would position registered apprenticeship as a mainstream, high-
quality postsecondary training strategy that offers a career path 
across industries and sectors.
    First, the scope of business sectors, industries, and occupations 
that have benefitted and would benefit from registered apprenticeship 
has expanded, including both the emergence of entirely new industries 
and occupations (within the IT and education sectors, for example), as 
well as evolutions within existing industries and occupations. Economic 
and technological evolution have also greatly impacted the outlook for 
existing and potential apprentices, including how they are made aware 
of registered apprenticeship and other workforce training programs, how 
they access such programs, their options for participation and 
interaction with such programs, and the scope of careers and job skills 
they can pursue.
    Second, the advent of increased funding opportunities to support 
the development of registered apprenticeship programs has further 
expanded registered apprenticeship's potential scope. As Federal and 
State resources are made available to support the expansion of 
registered apprenticeship, this is a critical opportunity to strengthen 
and reinforce the labor standards to affirm the core guarantees of 
registered apprenticeship for workers and employers in an evolving 
labor market. Beginning in 2015, the Department began announcing the 
availability of funding for registered apprenticeship through several 
different vehicles. This included approximately $175 million to expand 
apprenticeship into sectors with few apprenticeships and to populations 
traditionally underrepresented in apprenticeship through AAI,\27\ 
investments to support registered apprenticeship intermediaries focused 
on specific industries or equity,\28\ and provide funding on an annual 
basis to support States' efforts to expand capacity, increase the 
number of registered apprentices, and modernize the National 
Apprenticeship System.\29\ Grant funding appropriated for States 
between 2016 and 2023 was $419,500,000. Over the years, the further 
funding announced by the Department included over $10 million to 
support women's participation in registered apprenticeship programs 
through the Women in Apprenticeship and Nontraditional Occupations 
(WANTO) grants since 2019,\30\ $20 million to support the execution of 
a collaborative partnership with the American Association of Community 
Colleges to support the Expanding Community College Apprenticeship 
initiative in 2019, and $284 million to support expansion of 
apprenticeships into non-traditional industries in 2019-2020.\31\ 
Competitive rounds of funding have also been awarded to reach other 
types of organizations. In 2020, the Department announced $42.5 million 
for Youth Apprenticeship Readiness Grants. In 2022, the Department 
announced more than $171 million for the Apprenticeship Building 
America

[[Page 3125]]

grants.\32\ The reauthorization of WIOA in 2014 and the reauthorization 
of Perkins in 2018 (also known as Perkins V) brought additional 
opportunities to align Federal education and workforce investments with 
registered apprenticeship programs. Opportunities include State and 
local workforce development board membership, State and local planning, 
funding for pre-apprenticeship programs, and funding availability to 
support WIOA participants' placement in registered apprenticeship 
programs.\33\ The Department anticipates additional investments that 
align with The Good Jobs Principles, a shared vision of job quality, 
equity, and worker empowerment published in 2022 by the Department and 
Department of Commerce.\34\ Additionally, the principles have been 
reflected or referenced in funding opportunities implementing 
infrastructure investments through the Bipartisan Infrastructure Law 
and the IRA.
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    \27\ See a list of past funding opportunities and awardees at 
OA, ``Past Grants and Contracts,'' https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/past-grants-and-contracts (last visited July 20, 2023).
    \28\ See OA, ``National Industry and Equity Apprenticeship 
Intermediaries: Advancing Registered Apprenticeship for Businesses 
and Workers in the U.S.,'' Jan. 19, 2021, https://www.apprenticeship.gov/sites/default/files/Industry-and-Equity-Intermediary-Accomplishment-Fact-Sheet.pdf.
    \29\ See OA, ``State Apprenticeship Expansion,'' https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/state-apprenticeship-expansion#awardee_list (last visited July 20, 
2023).
    \30\ DOL, WANTO Grant Program, https://www.dol.gov/agencies/wb/grants/wanto (last visited Oct. 23, 2023).
    \31\ See ``H-1B Skills Training Grants,'' https://www.dol.gov/agencies/eta/skills-grants/h1-b-skills-training (last visited July 
20, 2023).
    \32\ ETA, ``State Apprenticeship Expansion Formula,'' FOA-ETA-
23-09, Mar. 17, 2023, https://www.grants.gov/web/grants/view-opportunity.html?oppId=345785.
    \33\ For information regarding how WIOA relates to 
apprenticeship, see OA, ``Workforce Innovation and Opportunity 
Act,'' https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/workforce-innovation-and-opportunity-act (last 
visited July 20, 2023).
    \34\ See DOL, ``The Good Jobs Initiative,'' https://www.dol.gov/general/good-jobs/principles (last visited July 20, 2023).
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    These historic investments in the National Apprenticeship System, 
along with the new opportunities uncovered by an evolving economy and 
national workforce model, have introduced a much broader range of 
registered apprenticeship stakeholders (including existing, newly 
established, and potential stakeholders) since the regulations were 
last updated in 2008. Accordingly, the Department has determined that 
the part 29 regulations must be modified and modernized in order to 
accommodate the growing set of stakeholders, provide tools and 
resources to ease their entry into the system, and maximize the impact 
of the aforementioned investments. In the proposed regulation, the 
Department introduces and defines the purpose of new products to 
support the development of new registered apprenticeship programs. 
These products--National Occupational Standards for Apprenticeship, 
National Guidelines for Apprenticeship Standards, and National Program 
Standards for Apprenticeship--would feature ample opportunities for 
industry to provide input and feedback. They would also leverage the 
Department's existing and emerging relationships to ensure efforts to 
expand registered apprenticeship are responsive to the evolving and 
distinct needs of all industries, including those targeted for 
expansion.\35\
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    \35\ In this proposal, the Department seeks to further clarify 
the role of industry through the text, including by defining the 
term ``intermediary'' (used commonly in practice by industries but 
not defined in the current regulations at part 29) and establishing 
clear roles for intermediaries in the process to develop National 
Occupational Standards for Apprenticeship, National Guidelines for 
Apprenticeship Standards, and National Program Standards for 
Apprenticeship.
---------------------------------------------------------------------------

    The Department's vision for a modern system also includes an 
acceleration of its ongoing efforts to leverage advancements in 
technology to improve its internal systems and data analysis 
capabilities; modernize and strengthen the reporting tools available to 
registered apprenticeship program sponsors, SAAs, and other 
stakeholders; and move the system's administrative functions fully 
online. The Department anticipates that such improvements would 
complement the proposed regulation's introduction of industry-driven 
tools for onboarding new programs. Keeping pace with evolving 
industries, technological developments, and emerging opportunities for 
alignment among national workforce system programs is essential for 
achieving the Department's goal of expanding registered apprenticeship. 
It would also help the Department advance opportunities to access the 
National Apprenticeship System, provide oversight and assistance to new 
and existing stakeholders, and streamline administrative functions 
throughout the system.
    In line with the Department's prioritization of system 
modernization in this proposed rule, the Department views the enhanced 
capacity to collect and analyze data as a key advantage of keeping pace 
with technological developments. As such, the Department is 
prioritizing the ongoing development of a modernized and enhanced data 
collection and analysis framework. Though much of this work occurs 
outside of the regulatory space, the Department has identified a need 
to update regulatory requirements around data collection to improve its 
ability to make data-driven decisions about apprenticeship policy, 
review and assess registered apprenticeship program performance, and 
communicate the value of apprenticeship as a viable workforce training 
model. The Department believes this is an opportunity to orient the 
National Apprenticeship System around increased performance 
accountability, transparency, and a focus on outcomes.
    In the years since the registered apprenticeship regulations were 
last updated, the Department has invested resources to improve its 
processes for the collection of data pertaining to apprenticeship and 
the secure storage of such data. Such resources were also distributed 
among States to improve SAAs' data collection and reporting 
capabilities.\36\ The Department has also collaborated with registered 
apprenticeship programs, industry intermediaries, other government 
agencies, and other interested stakeholders to better understand the 
insights and performance benchmarks that can be drawn and applied 
through targeted analyses of registered apprenticeship data. The 
lessons learned from these ongoing, collaborative engagements were 
echoed by the members of the ACA, who provided several recommendations 
related to data for the Department's consideration. The ACA discussed 
the value of developing a more national, comprehensive set of data 
related to registered apprenticeship. Currently, data pertaining to 
registered apprenticeship are collected in a disparate manner: data 
collection practices are distinct for SAA States and OA States, and not 
all States provide data to the Department's primary data repository, 
Registered Apprenticeship Partners Information Data System 
(RAPIDS).\37\ The ACA also recommended that OA update its data 
collection and analysis capabilities to improve its ability to glean 
data-driven insights and make informed policy or oversight decisions 
based on such insights.\38\ To do this, the Department must take steps 
towards developing a data collection framework that collects uniform 
data elements on a nationwide basis in order to disaggregate such data

[[Page 3126]]

in key ways (such as by race and ethnicity, industry, occupation, from 
a State or national perspective) and assess information that accurately 
compares program outcomes.\39\ The Department is interested in 
improving its ability to assess accurate, up-to-date registered 
apprenticeship data related to equitable participation and program 
outcomes for apprentices, the prevalence and usefulness of interim 
credentials or other industry-recognized certifications provided to 
apprentices, and wages earned by apprentices who complete registered 
apprenticeship programs, among other measures that may offer useful 
insights to registered apprenticeship program success and opportunities 
for targeted improvements.
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    \36\ ETA, ``State Apprenticeship Expansion Formula,'' FOA-ETA-
23-09, Mar. 17, 2023, https://www.grants.gov/web/grants/view-opportunity.html?oppId=345785.
    \37\ The ACA recommended that OA work with States to encourage 
full participation in RAPIDS, with the goal of developing a more 
national and comprehensive data set: ``Generally, encourage those 
States that do not participate in the RAPIDS system, or participate 
to a lesser degree than full participant States, to participate in 
the collection and sharing of apprenticeship data for the benefit of 
the national dataset (RAPIDS).'' ACA, ``Interim Report to the 
Secretary of Labor,'' May 16, 2022, at 16, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
    \38\ The ACA recommended that OA ``measure and track success 
through Equity Indices showing the representation of new, active, 
and completing apprentices from each underserved demographic group 
in the context of local area, industry, education/skills, and wages/
promotions.'' Id. at II-10.
    \39\ The ACA recommended that OA ``make apprentice demographic 
data, disaggregated by race, ethnicity, and sex, and separately for 
each State and for each standard occupation code, public on a 
dashboard site.'' Ibid.
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    Accordingly, the Department's proposed rule would update 
requirements regarding the collection and maintenance of data for 
program stakeholders. The proposed rule also presents new data elements 
for collection to better understand the apprenticeship landscape and 
enhance OA's and SAAs' ability to make data-driven decisions and 
improvements throughout the National Apprenticeship System. Such new 
data elements would include requiring program sponsors to provide data 
on the interim credentials or other industry-recognized certifications 
offered through their programs and requiring that applications for a 
determination on an occupation's suitability for registered 
apprenticeship training include information relating to the career wage 
profile of the subject occupation. Additionally, the Department would 
collect information from sponsors on pre-apprenticeship program 
engagement and placement as part of this proposed rule. Proposed 
reforms to the registered apprenticeship regulations would also 
prioritize collecting information on both postsecondary academic credit 
and industry-recognized credentials that apprentices acquire as part of 
their participation in registered apprenticeship programs, in addition 
to their acquisition of Certificates of Completion of registered 
apprenticeship programs. These reforms would allow students, job 
seekers, and workers to make better informed choices regarding their 
career needs.
    These data elements, along with proposed updates to the part 29 
regulations intended to encourage a more uniform and consistent 
approach to data collection and analysis,\40\ would greatly enhance the 
Department's ability to derive accurate, timely, and consequential 
insights about registered apprenticeship on a nationwide basis. This 
would ultimately improve the Department's ability to provide guidance 
and oversight to stakeholders throughout the National Apprenticeship 
System.
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    \40\ For example, see the Department's discussion of its 
proposal to make SAA planning and data reporting more consistent 
through the implementation of State Apprenticeship Plans in the 
section-by-section analysis of this NPRM for proposed Sec.  29.27.
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    Accurately assessing the quality of registered apprenticeship 
programs, and actively pursuing opportunities to improve such quality 
across all registered apprenticeship programs, remains one of the 
Department's most important responsibilities related to its oversight 
of the National Apprenticeship System. Establishing a baseline for 
registered apprenticeship program quality is one of the most salient 
and practical functions of the part 29 regulations. While the 
Department believes that the current regulations have successfully 
guided the development and expansion of quality registered 
apprenticeship programs presently in existence, the Department has 
identified potential improvements to the program quality framework that 
it is pursuing in this proposed rule. The Department's identification 
of these quality improvements stems from its ongoing collaborations 
with industry partners and apprenticeship stakeholders, analysis of the 
persistent issues that arise as the Department executes program 
reviews, and feedback from apprentices, program sponsors, and employers 
participating in registered apprenticeship programs (including both 
success stories and efforts to review and address complaints related to 
registered apprenticeship programs).
    First, the Department relies on the part 29 regulation's standards 
of apprenticeship to apply quality standards consistently across all 
registered apprenticeship programs. Any program seeking registration by 
the Department for Federal purposes must develop a set of program 
standards that apply to the specific program and align with the minimum 
quality standards contained within the part 29 regulations (currently 
at 29 CFR 29.5). Accordingly, many of the program quality enhancements 
the Department is pursuing in this proposed regulation would update the 
proposed section for standards of apprenticeship (at proposed 29 CFR 
29.8). Engagement with stakeholders, including the ACA, and review of 
the Administration's priorities for the Department (such as the Good 
Jobs Initiative driven by the Administration and led by the Department 
\41\), has helped the Department identify several areas ripe for 
improved quality standards for registered apprenticeship. These include 
ensuring that all registered apprenticeship programs convey 
competencies and lead to occupational proficiency for apprentices who 
complete programs (see the Department's proposed consolidation of the 
apprenticeship training models at proposed 29 CFR 29.8(a)(4)), 
assurances that determinations on occupations' suitability for 
registered apprenticeship training consider the career wage profile 
related to the subject occupation (see the Department's proposed 
inclusion of wage considerations in occupational suitability 
determinations at proposed 29 CFR 29.7(b)(2)), and enhanced protections 
for apprentices against unreasonable training costs and restrictions on 
their labor market mobility (at proposed 29 CFR 29.9).
---------------------------------------------------------------------------

    \41\ See information about the Good Jobs Initiative and its 
impact at DOL, ``The Good Jobs Initiative,'' https://www.dol.gov/general/good-jobs (last visited July 20, 2023).
---------------------------------------------------------------------------

Embedding Equity at the Center of Registered Apprenticeship
    Advancing equity in registered apprenticeship programs--applicable 
to program recruitment, participation, treatment during the course of a 
program, and program outcomes--remains a critical priority for the 
Department as a whole. The Nation's implementation of an industrial 
strategy through historic investments in infrastructure,\42\ 
technology,\43\ and clean energy \44\ together generate tremendous 
opportunities for good jobs but also challenges for recruiting skilled 
workers. Engaging workers from underserved communities can be a key 
strategy for addressing these challenges. In addition, advancing equity 
in registered apprenticeship is central to the Department's proposed 
updates to the quality baselines contained in the part 29 regulations. 
In particular, the Department has identified several opportunities to 
align the part 29 regulations with the EEO in Apprenticeship 
regulations at 29 CFR part 30, which were finalized in 2016. The 
Department seeks to align the

[[Page 3127]]

proposed updates to 29 CFR part 29 with elements of the 2016 EEO final 
rule to advance equity in registered apprenticeship programs by 
requiring sponsors to identify and reduce barriers to enrollment in, 
and completion of, such programs by individuals from all underserved 
communities. In furtherance of this effort, the proposed regulation 
would require all sponsors seeking registration of an apprenticeship 
program to articulate an equitable, intentional, and achievable 
strategy for advancing the program's recruitment, hiring, and retention 
of individuals from underserved communities, including through 
documented partnerships with pre-apprenticeship or registered CTE 
apprenticeship programs. In addition, the proposal would continue to 
require registered apprenticeship programs to adhere to all of the 
applicable non-discrimination and EEO requirements contained in 29 CFR 
part 30.
---------------------------------------------------------------------------

    \42\ Infrastructure Investment and Jobs Act, Public Law 117-58, 
135 Stat. 429 (2021).
    \43\ Creating Helpful Incentives to Produce Semiconductors Act 
of 2022 (CHIPS Act), div. A of Public Law 117-167, 136 Stat. 1366 
(2022).
    \44\ IRA, Public Law 117-169, 136 Stat. 1818 (2022).
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    In general, the Department is pursuing greater alignment between 
the regulations at parts 29 and 30, which were finalized 8 years apart 
and have not been updated since the EEO regulations were promulgated in 
2016. The Department notes that it is not considering substantive 
changes to 29 CFR part 30 in this proposal, and the proposed amendments 
to 29 CFR part 30 are limited to the sections and changes necessary to 
align with the proposed changes in 29 CFR part 29. As a result, the 
Department is not accepting comments on the substantive content of the 
regulations at 29 CFR part 30 (beyond the proposal to incorporate the 
part 30 definitions into part 29 and any technical edits to part 30 
necessary to align with proposed changes to part 29). However, the 
Department encourages the public to submit comments on how to best 
advance equity in registered apprenticeship as proposed in this NPRM.
    The Department understands, based on several decades of oversight 
of the National Apprenticeship System, that the quality standards and 
other regulatory requirements are only as strong as the accountability 
measures that establish roles, responsibilities, and expectations of 
key stakeholders in the National Apprenticeship System. Where such 
accountability is unclear or undefined in the part 29 regulations, 
individuals' or entities' responsibility for preventing or addressing 
issues, shortcomings, or problematic outcomes related to registered 
apprenticeship programs can be questioned, contested, or avoided. This 
leaves apprentices with an unclear path forward and, at times, stuck 
with an unfavorable outcome. In order to fulfill its statutory 
obligation to protect apprentices' welfare and well-being, the 
Department has identified several areas where accountability within the 
system can be strengthened or clarified. For example, this proposed 
rule contains provisions intended to ensure that both registered 
apprenticeship program sponsors and, critically, any employers that 
have adopted the sponsor's standards of apprenticeship (referred to in 
the proposed regulation as ``participating employers'') are responsible 
for adhering to the minimum labor standards stipulated in 29 CFR part 
29, as well as the EEO requirements contained in 29 CFR part 30. The 
proposed rule would also require the sponsors of group programs to both 
screen and actively monitor participating employers to ensure their 
compliance with the foregoing regulatory provisions. Such enhanced 
accountability mechanisms are intended to ensure that apprentices are 
afforded all of the rights and protections required under the Federal 
rules pertaining to apprenticeship.
    The Department expects that these proposed updates to the part 29 
regulation would advance quality, equity, and accountability throughout 
the National Apprenticeship System. These proposed quality enhancements 
would benefit both existing registered apprenticeship programs and any 
new programs entering the system in the coming years. The Department 
anticipates that apprentices entering the system, along with their 
parents, guardians, dependent family members, and community members, 
would benefit from increased confidence in the consistency of quality 
throughout the system. The Department invites comments from the public 
on the best ways to advance quality, equity, and accountability 
throughout the National Apprenticeship System, including reactions to 
the proposed updates to the part 29 regulations contained in this 
proposal and any additional suggestions or recommendations for the 
Department's consideration.
Building a More Consistent and Innovative National Apprenticeship 
System
    In addition to the recommendations to pursue systemwide 
modernization, better leverage apprenticeship-related data, and promote 
quality, equity, and accountability in the National Apprenticeship 
System, stakeholders have consistently advised the Department to 
consider additional pathways to participating in a registered 
apprenticeship program and pursuing the apprenticeship model for career 
preparation and development, particularly for younger students or job 
seekers. The ACA advanced several recommendations related to career 
pathways for youth (including those developed by the ACA's dedicated 
subcommittee for this issue, the Pathways subcommittee). These included 
recommendations to define what is meant by a ``pre-apprenticeship'' 
program,\45\ invest and encourage participation in workforce readiness 
and pre-apprenticeship programs,\46\ and pursue opportunities for 
collaboration with other sectors (such as education) to promote 
awareness and uptake of pre-apprenticeships and registered 
apprenticeships.\47\ The Department is energized by these discussions 
of the evolving strategies to achieve growth throughout the National 
Apprenticeship System by identifying and promoting opportunities for 
younger students or job seekers to prepare for, and eventually enter 
into, a registered apprenticeship program.
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    \45\ See the ACA's recommendations, arising from multiple 
subcommittees, that the Department ``Define `apprenticeship,' `pre-
apprenticeship,' and `youth apprenticeship''' to ensure programs 
align with quality metrics. ACA, ``Interim Report to the Secretary 
of Labor,'' May 16, 2022, at 13 and 33, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
    \46\ See the ACA's recommendations that ``Federal and State 
agencies should invest in quality workforce readiness and pre-
apprenticeship programs'' and that the Department encourage 
employers and registered apprenticeship programs to uplift pre-
apprenticeship (e.g., provide conditional offers of registered 
apprenticeship employment or interviews upon completion of pre-
apprenticeship). Id. at 36 and II-13.
    \47\ See the ACA's recommendation to include (1) tools for 
school counselors and teachers to integrate pre-apprenticeship into 
curricula and offer students advice on career pathways; (2) 
resources to connect employers, schools, students, and parents to 
achieve greater buy-in; and (3) retooling of Apprenticeship.gov to 
educate public and highlight opportunities. Id. at 36.
---------------------------------------------------------------------------

    The proposed regulations, in addition to the enhancements to the 
registered apprenticeship model, would provide a more robust framework 
for identifying and promoting a system of apprenticeship-related 
pathways that can lead to sustainable careers. This would include 
defining pre-apprenticeship models that the Department believes could 
lead to diverse pathways to registered apprenticeship, with greater 
assurance that registered apprenticeship would be accessible, 
particularly for underserved communities. The proposal would also 
provide career seekers looking to get into registered apprenticeship 
programs entry points into programs, particularly if they do not 
currently meet the entry-level requirements for registered

[[Page 3128]]

apprenticeship programs. Pre-apprenticeship programs are designed to 
equip apprentices with the foundational skills required by registered 
apprenticeship programs, in order to facilitate the placement of pre-
apprenticeship program participants. Therefore, instead of designing a 
model of registering pre-apprenticeships, the Department believes 
registered apprenticeship program sponsors would be best positioned to 
determine the quality of pre-apprenticeship programs. The proposed rule 
would provide more clarity in the system about the meaning of pre-
apprenticeship programs, enable data collection on these programs from 
sponsors, and promote greater alignment with other Federal workforce 
investments that may support pre-apprenticeship models.
    Additionally, a key proposed reform in this rulemaking would be the 
development of labor standards for a new model of registered 
apprenticeship focused on registered CTE apprenticeships. This proposed 
new model of registered apprenticeship would be consistent with 
stakeholder recommendations \48\ and the Department's ongoing efforts 
to expand employment and training opportunities for youth. Registered 
CTE apprenticeship programs would create stronger and more seamless 
linkages between educational institutions and workforce development 
programs, and they would expand the registered apprenticeship model to 
support youth and other individuals entering the workforce through 
their enrollment in State CTE programs funded by ED's Perkins program. 
Proposed subpart B is designed to strengthen the ties between 
individuals in State-approved CTE programs and employment around a 
quality framework of labor standards. The Department, in coordination 
with ED, has identified an opportunity to increase job quality and 
training for youth and other individuals enrolled in State-approved CTE 
programs to benefit from structured and common basic labor standards. 
The registered CTE apprenticeship model would build on the key tenets 
of registered apprenticeship but would have some differences to account 
for the unique needs of the population it is designed to serve and 
individuals enrolled in State-approved CTE programs.
---------------------------------------------------------------------------

    \48\ For example, see the ACA's recommendation to support 
promotion, awareness, and uptake of apprenticeship programs among 
youth, including through tools to integrate pre-apprenticeship 
elements into educational curricula. ACA, ``Interim Report to the 
Secretary of Labor,'' May 16, 2022, at p. 36, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
---------------------------------------------------------------------------

National Apprenticeship System Governance and Planning
    A key role in implementing the promises of the proposed rule is to 
ensure the development of a system of governance for key partners and 
leaders in the National Apprenticeship System, particularly SAAs that 
have been provided OA's authority to serve as Registration Agencies in 
their States. As mentioned previously, OA is responsible for 
establishing a system of recognition and governance of SAAs, which 
operate as key partners in the National Apprenticeship System. To that 
end, the Department is seeking to build a more cohesive system and 
structure that promotes greater consistency and minimum standards for 
the roles and responsibilities of SAAs through a State planning 
approach, as well as criteria around SAAs' approval of registered 
apprenticeship programs for Federal purposes, while simultaneously 
encouraging strategic planning and innovation in registered 
apprenticeship models in the States.
    With more than 30 States currently recognized or seeking 
recognition as an SAA State, this proposed rulemaking seeks to 
modernize and build a State planning framework for the recognition of 
SAAs that both satisfies the need for procedural reform and encourages 
innovative strategies and ideas for the expansion and modernization of 
registered apprenticeship. Accordingly, the proposed rule includes 
provisions that would carefully delineate the respective roles and 
responsibilities of OA, SAAs, and State Apprenticeship Councils within 
the National Apprenticeship System. The proposed rule would also 
establish a planning process for SAAs to ensure coordination within the 
National Apprenticeship System in pursuit of apprenticeship expansion 
and quality, equity, and consistency in experience for sponsors. This 
State planning process would also ensure that SAAs are maintaining 
minimum standards of registered apprenticeship that safeguard the 
safety and welfare of apprentices. Submission of State Apprenticeship 
Plans would take place on a cyclical basis, thereby allowing OA to 
ensure sufficient staffing capacity to review plans and provide 
technical assistance as needed.
    The Department anticipates that the National Apprenticeship System 
under this proposed rule would provide both workers and businesses with 
high-quality, inclusive, and adaptable training models to build a 
skilled American workforce for the 21st century across numerous 
industries. This proposed rule seeks to ensure the expansion of 
apprenticeship models with high-quality standards to address the 
evolving needs of the labor market. The Department is proposing 
Sec. Sec.  29.1 through 29.6 as applicable to the entire part, while 
also proposing three unique subparts for this proposed rulemaking. 
Subpart A would address standards for registered apprenticeship 
programs, which would update the current section of 29 CFR part 29 
regarding the approval of occupations suitable for registered 
apprenticeship, the registration standards of apprenticeship, 
apprenticeship agreements, and other requirements related to the 
development of quality labor standards. Subpart B would address the 
proposed registered CTE apprenticeship model, including the 
requirements associated with registering a program under that model. 
Subpart C would address the Administration and Coordination of the 
National Apprenticeship System, including the reporting requirements, 
SAA recognition and planning provisions, and a provision about sharing 
information to support the integration of registered apprenticeship 
into other Federal and State laws. The Department welcomes comments 
throughout this proposed rule, particularly those focused on ideas to 
promote higher quality and to facilitate expansion to new industries 
and occupations.

IV. Section-by-Section Discussion of the Proposed Changes

A. Introduction to the Regulations for the National Apprenticeship 
System Under the National Apprenticeship Act of 1937

Section 29.1--Purpose and Scope
    The ``Purpose and scope'' section in the current regulation 
describes and cites to the Secretary's statutory authority to formulate 
and promote labor standards for registered apprenticeship programs to 
safeguard the welfare of apprentices participating in such programs. 
The Department proposes to remove existing Sec.  29.1(a), which 
describes and cites to the Department's authority under the NAA, 
because it is unnecessary to repeat the statutory language in the text 
of the regulation. The Department has determined that the ``Purpose and 
scope'' section for 29 CFR part 29 should instead focus on the 
Department's intent and objectives for the part 29 regulations and the 
sub-issue areas that follow in the part 29 regulations, all of which 
would be

[[Page 3129]]

consistent with the Department's statutory authority.
    Proposed 29 CFR 29.1 would largely retain the regulatory text from 
current 29 CFR 29.1(b), with a few additions to reflect updates to the 
evolving system of registered apprenticeship programs and priorities to 
address the expanded role education partners and intermediaries bring 
in facilitating the connections between employers and labor as 
described in the NAA. Other proposed additions would cover the 
Department's role in promoting the expansion of quality registered 
apprenticeship programs across a wide array of industries, the critical 
role the Department and Registration Agencies have in ensuring 
equitable and inclusive opportunities for all American workers, the 
proposed new registered model for CTE apprenticeship, the collection of 
data, and the oversight of registered apprenticeship programs.
Section 29.2--Definitions
    In 2007, when the Department proposed an update to the part 29 
registered apprenticeship regulations in an NPRM, the preamble noted 
that the Department's proposed updates to the ``Definitions'' section 
in 29 CFR 29.2 were intended to clarify and redesignate existing 
definitions and establish new definitions used in the registration of 
registered apprenticeship programs and in ``ongoing operations of the 
National Apprenticeship System.'' \49\ Since 2008, there have been 
numerous changes that have impacted the terminology related to the 
registration of registered apprenticeship programs and the National 
Apprenticeship System's ongoing operations, including revisions or 
changes to reflect new understandings or uses of previously defined 
terms, the introduction of new terminology to reflect the expansion of 
registered apprenticeship concepts, stakeholders, and strategies, as 
well as updates that have rendered existing definitions inaccurate, 
irrelevant, or obsolete.
---------------------------------------------------------------------------

    \49\ 72 FR 71019 (Dec. 13, 2007) (NPRM and request for 
comments).
---------------------------------------------------------------------------

    One important development was the revision to the regulations at 29 
CFR part 30, which introduced a set of key defined terms that are 
relevant and applicable to the regulations at 29 CFR part 29. Having 
misaligned definitions, as well as two sets of definitions governing 
OA's regulations, could cause unnecessary confusion and burden for the 
regulated community and other stakeholders. Accordingly, the Department 
proposes to set forth all applicable definitions governing 29 CFR parts 
29 and 30 at 29 CFR 29.2. This would centralize the definitions 
governing all aspects of the National Apprenticeship System, thereby 
better aligning the operation of parts 29 and 30 and eliminating 
unnecessary duplication and any inadvertent inconsistency. To 
effectuate this change, the Department proposes to revise 29 CFR 30.2 
to state that part 30 incorporates the definitions found at 29 CFR 
29.2. The Department invites comment on this organizational change, 
particularly on its efforts to ensure the regulated community has one 
section for all of the definitions pertaining to the National 
Apprenticeship System. The Department requests that any comments on the 
substance of a proposed definition reference 29 CFR 29.2 rather than 29 
CFR 30.2.
    Proposed modifications to any definitions currently found at 29 CFR 
30.2 as a result of this proposed rulemaking are explained below. The 
terms currently found at 29 CFR 30.2 that are not identified below as 
undergoing modification would remain unchanged and would simply be 
recodified at 29 CFR 29.2. These terms are ``direct threat,'' 
``disability,'' ``EEO,'' ``ethnicity,'' ``genetic information,'' 
``major life activities,'' ``physical or mental impairment,'' 
``qualified applicant or apprentice,'' ``race,'' ``reasonable 
accommodation,'' ``selection procedure,'' and ``undue hardship.'' The 
Department is proposing that the definition of ``qualified applicant or 
apprentice'' include the clarifying clause ``for purposes of part 30.'' 
This change is proposed to clarify that the definition of ``qualified 
apprentice'' in this proposed rule would apply only to the part 30 
regulations and would not conflict with the definition of ``qualified 
apprentice'' under the IRA's registered apprenticeship 
requirements.\50\ The term ``qualified apprentice'' would not appear in 
the part 29 regulations other than in the ``Definitions'' section of 
the proposed rule and therefore this clarifying clause would have no 
impact on the requirements of part 29 or part 30. Moreover, the 
Department views this clarifying clause as important to avoiding 
potential confusion about the definition of ``qualified apprentice.''
---------------------------------------------------------------------------

    \50\ 26 U.S.C. 45(b)(8)(E)(ii); see Public Law 117-169 sec. 
13101(f)(8)(E)(ii).
---------------------------------------------------------------------------

    The remainder of this discussion of proposed Sec.  29.2 discusses, 
in alphabetical order, new, revised, or deleted definitions for part 29 
and definitions from part 30 that the Department is proposing to 
change. In addition to the definitions proposed for deletion and 
replacement by another definition as described below, the Department 
proposes deleting the definitions of ``registration of an 
apprenticeship agreement,'' ``registration of an apprenticeship 
program,'' and ``State Office'' from the part 29 regulations. While 
these definitions are proposed for deletion, the concept for 
``registration of an apprenticeship agreement'' would be addressed by 
the proposed ``apprenticeship agreement'' definition and the 
apprenticeship agreement section in proposed Sec.  29.9. Similarly, 
while the definition of ``registration of an apprenticeship program'' 
is proposed for deletion, the concept would be addressed by the 
proposed ``registered apprenticeship program'' definition and the 
operative sections at proposed Sec. Sec.  29.8 and 29.10. Likewise, the 
Department believes the definition of ``State Apprenticeship Agency'' 
includes the meaning that a State government agency assumes the roles 
of an SAA and, therefore, the Department does not believe the term 
``State Office'' would have utility under the proposed rule. The 
Department believes these concepts would be addressed in the modified 
definitions but welcomes comments as to whether there are reasons to 
keep these definitions for the regulated community.
    Proposed Sec.  29.2 would define terms applicable to all sections 
of the NPRM unless otherwise stated.
    Proposed Sec.  29.2 would retain the existing definition of 
``Administrator'' from the existing registered apprenticeship 
regulations. This term would still refer to the Administrator of OA or 
any person specifically designated by the Administrator of OA.
    Proposed Sec.  29.2 would add a new definition of ``annual 
completion rate,'' which would be a new program quality measure a 
Registration Agency would be able to calculate to assist in assessing 
program quality. This measure would be calculated by identifying all 
the apprentices who leave a program during a fiscal year as the 
denominator and the number of those who complete the program as the 
numerator. This new measure would assist Registration Agencies in 
seeing if programs are exiting significant numbers of apprentices 
without graduating them and enable them to use that information as a 
basis for technical assistance. This measure, unlike the proposed 
cohort completion rate, would not exclude exiters during the 
probationary period of the program. This measure would also align with 
the Department's ETP reporting under WIOA for program completion rates. 
This measure would

[[Page 3130]]

be calculated as part of the data requirements of proposed Sec.  29.25 
and be subject to program reviews under proposed Sec.  29.19. The 
Department would consider this measure as being useful for considering 
any impacts in program design that lead to apprentices not completing 
their programs once they are apprentices. The Department is interested 
in any comments on this approach, whether probationary period should be 
a consideration, as well as any other measures proposed.
    Proposed Sec.  29.2 would modify the definition of ``apprentice.'' 
The proposed modification clarifies that an apprentice, as the term is 
used in parts 29 and 30, is an individual participating in a program 
subject to the requirements of 29 CFR parts 29 and 30, rather than an 
individual participating in any apprenticeship program. The Department 
would retain language that an apprentice must be a worker at least 16 
years of age, except where a higher minimum age standard is otherwise 
fixed by law, to align with the Fair Labor Standards Act (29 U.S.C. 
212) and its implementing regulations (29 CFR part 570), which 
generally permit bona fide apprentices to perform otherwise prohibited 
work in nonagricultural employment once they reach the age of 16.
    Proposed Sec.  29.2 would modify the definition of ``apprenticeship 
agreement.'' The proposed modification would stipulate that an 
apprenticeship agreement must satisfy each of the applicable regulatory 
requirements contained in proposed Sec.  29.9. The proposed definition 
also stipulates that such agreements must describe the terms and 
conditions of the employment and training of the apprentice, and it 
further clarifies that an apprenticeship agreement may also include the 
execution of any subsequent contractual provisions or agreements 
between the apprentice and the program sponsor (or a participating 
employer) during the remainder of the apprenticeship term.
    Proposed Sec.  29.2 would retain the definition for 
``apprenticeship committee (committee)'' from the existing regulations.
    Proposed Sec.  29.2 would modify the definition of 
``cancellation.'' The Department is proposing to modify this definition 
to reflect that an apprenticeship agreement may be canceled by either 
the apprentice or the sponsor as discussed in proposed Sec.  29.9. 
Additionally, the Department is proposing to modify this definition to 
remove the concept of cancellation of a program because this concept is 
synonymous with voluntary deregistration of a program. The Department 
does not see a difference between these two concepts, and so the 
Department is proposing that cancellation be a term that applies only 
to apprenticeship agreements, and that voluntary deregistration, as 
described in proposed Sec.  29.20, to be the appropriate process for 
programs seeking to end their registration status.
    Proposed Sec.  29.2 would add the definition for ``career and 
technical education (CTE),'' which would be utilized primarily in 
subpart B, from the existing definition in sec. 3(5) of Perkins.\51\ 
The proposed registered CTE apprenticeship model intends to incorporate 
Perkins' program elements. To provide consistency and clarity for the 
regulated community, the Department is aligning the proposed definition 
of CTE with the definition used in Perkins.
---------------------------------------------------------------------------

    \51\ Strengthening Career and Technical Education for the 21st 
Century Act, Public Law 115-224, 132 Stat. 1563 (2018).
---------------------------------------------------------------------------

    Proposed Sec.  29.2 would add the existing definition of ``career 
pathway'' from WIOA.\52\ The purpose of adding career pathway is to 
intentionally connect the regulation to the concept of a career pathway 
that is used in practice across the broader workforce development 
system and enable the use of shared terminology for practitioners 
developing opportunities for participants in education and workforce 
development programs.
---------------------------------------------------------------------------

    \52\ 29 U.S.C. 3102(7); WIOA sec. 3(7).
---------------------------------------------------------------------------

    Proposed Sec.  29.2 would eliminate the existing definition of 
``certification or certificate'' and establish definitions for the 
different certificates described in part 29. The purpose of 
establishing standalone definitions for certificates is to minimize 
confusion and provide clarity for National Apprenticeship System 
stakeholders on the functional types of documentary evidence that may 
be provided or used for the purposes of proposed Sec.  29.18, proposed 
Sec.  29.30, or any other applicable purpose.
    Proposed Sec.  29.2 would add a definition for ``Certificate of 
Completion'' and incorporate the existing language at 29 CFR 29.2 that 
a Certificate of Completion is a document that establishes that a 
Registration Agency has determined that an individual has successfully 
completed a registered apprenticeship program as set forth at proposed 
Sec.  29.16(d).
    Proposed Sec.  29.2 would add a definition for the new term 
``certificate of completion of registered CTE apprenticeship.'' A 
certificate of completion of registered CTE apprenticeship would be a 
document that establishes that a Registration Agency has determined 
that an individual has successfully completed a registered CTE 
apprenticeship program as documented under proposed paragraph (f). The 
purpose of this new term is to differentiate between the certificate of 
completion for registered apprenticeship under subpart A and a 
certificate of completion of registered CTE apprenticeship discussed 
for the new proposed model of registered CTE apprenticeship under 
subpart B.
    Proposed Sec.  29.2 would add a definition for ``Certificate of 
Participation'' and define it for the first time as documentation that 
an apprentice has participated or is participating in a registered 
apprenticeship program. Examples of a Certificate of Participation 
could include evidence necessary to document a construction 
contractor's compliance with the Davis-Bacon and related Acts' 
registered apprenticeship requirements regarding the payment of 
prevailing wages to apprentices at 29 CFR part 5 or a verification of 
an individual's status as an apprentice. Such a certificate would be 
OA's official method of verifying an apprentice's participation in a 
registered apprenticeship program.
    Proposed Sec.  29.2 would add a definition for ``Certificate of 
Recognition'' to describe the document provided to indicate that OA has 
approved a sponsor's National Guidelines for Apprenticeship Standards 
as described in proposed Sec.  29.15.
    Proposed Sec.  29.2 would add a definition for ``Certificate of 
Registration'' to describe the document provided to indicate that a 
Registration Agency has registered an apprenticeship program under 
proposed Sec.  29.10(c).
    Proposed Sec.  29.2 would define ``cohort completion rate,'' and 
this definition would modify the language from the current definition 
of ``completion rate,'' which covers the percentage of an 
apprenticeship cohort that receives a Certificate of Completion within 
1 year of the projected completion date. The proposed definition of 
``cohort completion rate'' describes an apprenticeship cohort as the 
group of individual apprentices registered to a specific program during 
a given fiscal year, which is a change from the current language in the 
current definition of ``completion rate'' that describes it as the 
group of individual apprentices registered to a specific program during 
a 1-year timeframe. The term ``cohort completion rate'' is designed to 
distinguish this concept from the proposed addition of ``annual 
completion rate.'' This change would provide clarity on the existing 
practice

[[Page 3131]]

of calculating the cohort completion rate on a fiscal year basis to 
enable more consistent data reporting. This proposed definition 
continues to explain, without change, when an apprentice will not be 
included in the calculation.
    Proposed Sec.  29.2 would add a definition for ``collective 
bargaining agreement'' and define it for the first time in parts 29 or 
30 as the written agreement between an employer (or a group of 
employers) and the bargaining representative(s) of a labor union to 
which employees of the employer(s) belong that addresses such topics as 
wages, hours, workplace health and safety, employee benefits, and other 
terms and conditions of employment. When applicable, collective 
bargaining agreements inform the development of registered 
apprenticeship program standards and, typically, govern an employer's 
participation in a group program. This is a term used often in this 
proposed rule and the 2008 final rule. The Department believes that it 
is important for the regulated community to understand what the 
Department means when it uses this term, particularly for industries 
not familiar with registered apprenticeship. This proposed term was 
first used by OA in Bulletin 2010-29.\53\ The Department proposes to 
modify and elaborate upon that definition to more closely align it with 
the common understanding of collective bargaining agreements. The 
Department is seeking any comments or proposed modifications to the 
proposed definition to increase clarification on this term.
---------------------------------------------------------------------------

    \53\ OA, Bulletin 2010-29, ``Amendment to the Revised National 
Guidelines for Apprenticeship Standards Boilerplates--Individual 
Non-Joint (INJ), Group Non-Joint (GNJ), Individual Joint (IJ), and 
Group Joint (GJ) for Federal, State or Local Government Agency 
Programs,'' Sept. 30, 2010, https://www.apprenticeship.gov/sites/default/files/bulletins/Bulletin_2010-29a_Amendment_Revised_Boilerplates-Federal_Programs.doc.
---------------------------------------------------------------------------

    Proposed Sec.  29.2 would modify the definition of ``competency'' 
to describe the attainment of knowledge, skills, and abilities 
specified in a work process schedule. The Department is removing the 
terms ``manual, mechanical or technical skills and knowledge'' from the 
technical definition to be in greater alignment with the Department's 
understanding of what the attainment of competency means based on 
competency frameworks, such as the Occupational Information Network 
(O*NET) system, DOL competency models,\54\ and competency-based 
occupational frameworks,\55\ that are used as industry-recognized 
reference tools in the development of a work process schedule, as 
specified in proposed Sec.  29.7(b). In addition to knowledge, skills, 
and abilities, the proposed definition includes the measurable 
attainment of techniques as a qualifier for the types of hands-on 
practices, such as the physical use of equipment and tools, associated 
with on-the-job, industry-based proficiency.
---------------------------------------------------------------------------

    \54\ See Competency Model Clearinghouse, ``Overview of the 
Competency Model Clearinghouse,'' https://www.careeronestop.org/CompetencyModel/GetStarted/overview-of-cmc.aspx (last visited July 
20, 2023).
    \55\ See Urban Institute, ``Competency-Based Occupational 
Frameworks for Registered Apprenticeship,'' https://www.urban.org/policy-centers/center-labor-human-services-and-population/projects/competency-based-occupational-frameworks-registered-apprenticeships 
(last visited July 20, 2023).
---------------------------------------------------------------------------

    Proposed Sec.  29.2 would add a definition for ``corrective action 
plan'' to describe the product that must be produced when a State 
Apprenticeship Plan is not granted full approval by the Department as 
described in proposed Sec.  29.27 of this part. This plan is designed 
to provide SAAs with clear actions needing to be taken to be eligible 
for full approval of the State Apprenticeship Plan.
    Proposed Sec.  29.2 would add a definition for ``credential rate'' 
to explain how to calculate the percentage of registered apprenticeship 
program completers in a cohort that receive an interim credential, as 
defined below. This new program performance measure is intended to 
incentivize the leveraging of recognized postsecondary credentials, 
including industry-recognized credentials, into a registered 
apprenticeship program's design. While the Certificate of Completion 
remains the premier credential obtained for participation in a 
registered apprenticeship program, this measure would not include 
Certificates of Completion. This measure would incentivize additional 
credentials to be included and tracked and would drive greater 
portability and national recognition for programs and credentials 
obtained in programs. Programs are not required to offer interim 
credentials as a requirement for registration; however, the Department 
considers a measure that tracks this attainment as a key opportunity to 
enhance data collection and understanding of programs for both 
apprentices in programs and job seekers considering registered 
apprenticeship programs. The Department acknowledges that not all 
industries or sectors may issue interim credentials. For that reason, 
the Department is not intending this proposed measure to be a sole 
indicator of program quality. The metric would help OA to understand 
which programs provide credentials while participating in a program, 
ultimately leading to a Certificate of Completion. Lastly, similar to 
the cohort completion rate measure, the Department is proposing to 
exclude those apprentices whose participation in the program ends 
during the program's probationary period because apprentices may decide 
early in a program that they do not wish to pursue the chosen 
occupation, and OA does not seek to disincentivize programs or add 
barriers to programs seeking to recruit and accept participants. 
Additionally, for this measure an apprentice would be unlikely to 
attain a credential during that time. The Department is open to 
comments on whether this measure should include those apprentices who 
leave during the probationary period.
    Proposed Sec.  29.2 would add the definition for the new term of 
``CTE apprentice.'' CTE apprentices are participants at least 16 years 
of age, except where a higher minimum age standard is otherwise fixed 
by law, in a registered CTE apprenticeship program covered by the 
requirements of subpart B and part 30. The Department is aligning the 
definition with the definition of ``apprentice'' that is utilized for 
the purpose of subpart A. As described in the ``apprentice'' definition 
discussion, the Department is retaining language that an apprentice 
must be a worker at least 16 years of age, to reflect the general 16-
year minimum age requirement for employment under the Fair Labor 
Standards Act. See 29 U.S.C. 203(l). However, the proposed definition 
explicitly states that the minimum age standard may be higher than 16 
years if required by Federal, State, or local law. The Department is 
generally seeking alignment as much as possible between the terms ``CTE 
apprentice'' and ``apprentice.'' The primary purpose of this new term 
is to differentiate the use of the term ``apprentice,'' which is used 
throughout subpart A to refer to an individual participating in a 
registered apprenticeship program registered under subpart A of this 
part. This would help ensure clarity for the regulated community as to 
which model apprentices are participating in going forward. The 
proposed definition also provides that a CTE apprentice is not an 
apprentice for purposes of 29 CFR 4.6(p), 5.2, 5.5(a)(4), and 
570.50(b).
    Proposed Sec.  29.2 would add a definition for the new term ``CTE 
apprenticeship agreement.'' A CTE apprenticeship agreement would be a 
written agreement that complies with the requirements in proposed Sec.  
29.24 and that contains the terms and conditions for the employment and

[[Page 3132]]

training of the CTE apprentice. The purpose of this new term is to 
differentiate between the apprenticeship agreement for registered 
apprenticeship under subpart A and a CTE apprenticeship agreement 
discussed for the new proposed model of registered CTE apprenticeship 
under subpart B. As discussed below in the section-by-section analysis 
for subpart B and the CTE apprenticeship agreement at proposed Sec.  
29.24(e), the proposed requirements for the makeup of a CTE 
apprenticeship agreement largely follow the proposed requirements for 
apprenticeship agreements for registered apprenticeship at proposed 
Sec.  29.9, with a few minor differences reflecting the differences 
between registered apprenticeship and the newly proposed registered CTE 
apprenticeship model (e.g., a shorter maximum duration for the length 
of a probationary period under registered CTE apprenticeship).
    Proposed Sec.  29.2 would add a definition for the new term ``CTE 
apprenticeship-related instruction.'' CTE apprenticeship-related 
instruction would be the organized and systematic form of instruction 
that provides a CTE apprentice with knowledge of the theoretical and 
technical subjects related to an approved industry skills framework. 
CTE apprenticeship-related instruction would be required to be 
delivered through a State-approved CTE program. A sponsor could 
prescribe additional coursework, including coursework outside of the 
program, as part of the CTE apprenticeship-related instruction. 
Instruction could be given in a classroom, through electronic media, or 
through other forms of study approved by the State CTE Agency and 
Registration Agency. The purpose of this new term is to differentiate 
it from the defined term ``related instruction'' used in subpart A, 
which does not directly require a State-approved CTE program.
    Proposed Sec.  29.2 would add a definition for ``day'' to provide 
clarity to the regulated community that the usage of the word ``day'' 
throughout this proposed rule and 29 CFR part 30 means calendar day, 
and not business day or workday. The Department considers this an 
important term to include to remove ambiguity where this term is used. 
When the word ``day'' is used throughout this proposed rule this 
meaning (i.e., calendar day) is meant.
    Proposed Sec.  29.2 would retain the existing definition of 
``Department'' from the existing registered apprenticeship regulations. 
This term would still refer to DOL and is used accordingly throughout 
this NPRM.
    Proposed Sec.  29.2 would add the existing definition of ``direct 
threat'' in 29 CFR part 30.
    Proposed Sec.  29.2 would add the existing definition of 
``disability'' in 29 CFR part 30.
    Proposed Sec.  29.2 would add the existing definition of ``EEO'' in 
29 CFR part 30.
    Proposed Sec.  29.2 would modify the definition of ``electronic 
media'' to remove the examples from the regulatory text because any 
examples too quickly become outdated due to the rapid pace of 
technological development. Updated and contemporary examples of 
electronic media as of the date of this proposal include but are not 
limited to end-users utilizing a computer or mobile device to: access 
and interact with an interactive map or database on an accessible web-
based platform; download, edit, and transmit digital files of PDFs, 
images, or project-management tools; participate by using a chat 
function or providing verbal or non-verbal visual cues in a meeting 
through a video conferencing platform; and access digital written 
documents through an enterprise-level document-sharing application.
    Proposed Sec.  29.2 would revise the existing definition of 
``employer'' to specify that, in relation to apprentices, the employer 
is the entity that employs an apprentice during the on-the-job training 
component of the apprenticeship program and provides the apprentice 
training under an approved set of standards of apprenticeship and 
apprenticeship agreement. This proposed definition also includes a 
clarification that it applies to the employment of apprentices for 
subparts A, B, and C of this part. This is meant to address the 
employment of apprentices for both registered apprenticeship programs 
under subpart A and the employment of CTE apprentices under subpart B. 
For the purposes of subpart C, it would apply to the requirement of 
reporting from sponsors on employers in the system described in that 
subpart. The Department uses the term ``employer'' as a general term in 
the proposed rule as well as a term specific to the employer of 
apprentices; therefore, the Department proposes clarifying these two 
uses of the word in the definition. The Department has determined that 
the existing definition of ``employer,'' when used in reference to 
employers of apprentices, does not sufficiently describe the employer/
apprentice relationship with regard to the provision of the on-the-job 
training component of the registered apprenticeship program and is 
required to be in accordance with the program's standards. This 
proposed definition is meant to ensure that all entities employing an 
apprentice during the apprentice's time in the registered 
apprenticeship program understand their role as employers as 
articulated in the standards of apprenticeship governing the program. 
The Department thinks that this revision would provide clarity for the 
regulated community and would assure apprentices that any entities 
participating as employers in their registered apprenticeship program 
would understand their role in the apprenticeship program and abide by 
the on-the-job training requirements and program standards set forth in 
their apprenticeship agreement.
    Proposed Sec.  29.2 would add the existing definition of 
``ethnicity'' in 29 CFR part 30.
    Proposed Sec.  29.2 would add a definition for ``exit'' for the 
purpose of calculating certain performance measures such as ``annual 
completion rate,'' ``cohort completion rate,'' or ``credential rate'' 
described in proposed Sec.  29.25. Under the proposed definition, an 
exit is when an apprentice has ended their participation in a 
registered apprenticeship program. This would include apprentices who 
have completed a registered apprenticeship program or who have canceled 
or been canceled from a registered apprenticeship program. The 
Department proposes including these groups together to ensure it can 
accurately measure outcomes of all apprentices in a program after their 
probationary period.
    Proposed Sec.  29.2 would revise the definition of ``Federal 
purposes'' by adding ``registered'' before the term ``apprenticeship'' 
to align with the changes throughout this proposed rule. This proposed 
change would clarify that the use of apprenticeship means ``registered 
apprenticeship'' unless otherwise stated in the proposed rule. The 
Department notes that the use of the term ``Federal purposes'' 
throughout this proposed rule is used to characterize apprenticeship 
registration in the National Apprenticeship System as overseen by OA. 
Additionally, registration for Federal purposes may convey additional 
benefits or obligations that arise under Federal laws such as the 
Davis-Bacon and related Acts, the IRA, and WIOA, among others. This 
term is meant to capture the authority the Department conveys when 
registering apprenticeship programs or recognizing SAAs to perform this 
function.
    Proposed Sec.  29.2 would add a definition for the term ``fiscal 
year.''

[[Page 3133]]

Fiscal years are the accounting period of the Federal Government, and 
while these proposed regulations would not directly impact financial 
reporting, the Department is proposing the inclusion of this term to be 
used and commonly understood as a 1-year period covering October 1 of a 
given calendar year through September 30 of the following calendar 
year. The corresponding name of the fiscal year is always the calendar 
year in which the covered period ends. For example, the time period 
covering October 1, 2022, to September 30, 2023, is fiscal year 2023. 
The Department is proposing the term be used to set parameters around 
the ``annual completion rate'' and ``cohort completion rate'' measures 
defined in this section.
    Proposed Sec.  29.2 would add the existing definition of ``genetic 
information'' in 29 CFR part 30.
    Proposed Sec.  29.2 would add a definition for the term ``group 
program.'' This term, which has been widely used on an informal basis 
over the years, refers to a program that is sponsored and registered by 
an organization that develops a set of registered apprenticeship 
program standards that are adopted on a formal, contractual basis by 
one or more participating employers (typically pursuant to a collective 
bargaining agreement or a program standards adoption agreement) in 
accordance with the program standards developed by the sponsor of the 
group program.
    Proposed Sec.  29.2 would add a definition for the new term 
``industry skills framework.'' The purpose of this new term is to 
establish the concept of an industry skills framework for utilization 
in the development of an on-the-job training outline, which would be a 
distinct component of the standards of a registered CTE apprenticeship 
program under subpart B.
    Proposed Sec.  29.2 would add the definition of ``institution of 
higher education'' from an existing definition in the Higher Education 
Act of 1965.\56\ Proposed Sec.  29.24 in subpart B identifies 
institutions of higher education as eligible program sponsors of 
registered CTE apprenticeships. To provide consistency and clarity for 
the regulated community, the Department is aligning the definition of 
institution of higher education with the definition used in the Higher 
Education Act of 1965.
---------------------------------------------------------------------------

    \56\ 20 U.S.C. 1001 et seq.
---------------------------------------------------------------------------

    Proposed Sec.  29.2 would modify the definition of ``interim 
credential'' to specify that an interim credential is a recognized 
postsecondary credential (see proposed definition in Sec.  29.2) and to 
acknowledge that it is documentation of the significance of an 
apprentice attaining competency milestones within an occupation 
suitable for registered apprenticeship training. An interim credential 
is usually earned as a part of a career pathway, sequence, or 
progression towards the attainment of more advanced competencies and 
credentials in that occupation.
    This proposed change would bring the definition into alignment with 
ETA's definition of recognized postsecondary credentials by aligning it 
with acceptable documentation for measuring credential attainment under 
WIOA.\57\ While interim credentials may be used as documented 
milestones in the progress toward completion, interim credentials under 
the proposed definition would be standalone recognized postsecondary 
credentials, and much like the concept of non-degree credentials, could 
be bundled or stacked and portable across industries and 
occupations.\58\ Existing Sec.  29.5(b)(16) provides for interim 
credentials as credentials issued by the Registration Agency, upon 
request of the appropriate sponsor, as certification of competency. The 
Department is changing this definition to align with WIOA and focus on 
the importance of attaining industry-recognized credentials in a 
program, which the Department considers to be valuable. In this 
proposed rule, interim credentials could be provided to apprentices by 
a sponsor, in coordination with a related instruction provider, 
employer, or industry intermediary, to recognize and document 
completion of competency attainment, or another form of measurable 
skill gain, that would be part of a work process schedule in an 
approved occupation under proposed Sec.  29.8(a)(8).
---------------------------------------------------------------------------

    \57\ ETA, Training and Employment Guidance Letter (TEGL) No. 13-
16, ``Guidance on Registered Apprenticeship Provisions and 
Opportunities in the Workforce Innovation and Opportunity Act 
(WIOA),'' Jan 12, 2017, https://dol.gov/agencies/eta/advisories/training-and-employment-guidance-letter-no-13-16.
    \58\ Rutgers Education and Employment Research Center, ``Non-
Degree Credential Quality: A Conceptual Framework to Guide 
Measurement,'' July 2019, https://smlr.rutgers.edu/sites/default/files/Documents/Centers/EERC/rutgerseerc_ndcquality_framework_full_paper_final.pdf.
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    Proposed Sec.  29.2 would add a new proposed definition for 
``intermediary'' to recognize these important stakeholders within the 
National Apprenticeship System and describe their role within the 
system. Given intermediaries' current prevalence in apprenticeship and 
role described in these proposed regulations, the Department wanted to 
codify the definition to ensure a common understanding of the term. The 
Department proposes to define ``intermediary'' as an entity that 
assists in the provision or coordination of a registered apprenticeship 
program or that otherwise provides support to a registered 
apprenticeship program. Consistent with current practice within the 
National Apprenticeship System, such support could include assistance 
with the important industry-driven aspects of a registered 
apprenticeship program, including industry vetting of training and 
related instruction components necessary for proficiency in an 
occupation; the establishment of networks and partnerships to support 
registered apprenticeship program development and functionality; and 
other types of support arising from the intermediary's familiarity with 
and expertise within an industry. In adding this proposed definition to 
the registered apprenticeship regulations, the Department also seeks to 
clarify that intermediaries' appropriate role within the National 
Apprenticeship System would not include any of the responsibilities 
reserved for Registration Agencies (i.e., SAAs and OA), such as the 
responsibility for making final determinations on an occupation's 
suitability for registered apprenticeship training or final approval of 
a program's standards. The Department has invested in industry 
intermediaries \59\ to support the expansion of registered 
apprenticeship programs into high-growth industries to date and to 
improve equity in these programs, and their role has shown promise in 
this regard.\60\ Such entities to date have included labor 
organizations, trade organizations, industry experts, and other 
organizations with experience in registered apprenticeship. The 
Department is committed to providing a definition for these important 
stakeholders in the National Apprenticeship System and welcomes 
comments on this definition to accurately define their role in the 
system.
---------------------------------------------------------------------------

    \59\ See OA, ``Industry Intermediaries to Expand Registered 
Apprenticeship Programs,'' https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/industry-intermediaries-expand-registered (last visited July 20, 2023).
    \60\ See OA, ``National Industry and Equity Apprenticeship 
Intermediaries: Advancing Registered Apprenticeship for Businesses 
and Workers in the U.S.,'' https://www.apprenticeship.gov/sites/default/files/Industry-and-Equity-Intermediary-Accomplishment-Fact-Sheet.pdf (last visited July 20, 2023).
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    Proposed Sec.  29.2 would revise the definition of 
``journeyworker'' to simplify the definition and clarify that

[[Page 3134]]

such workers should be experienced in their industry or occupation and 
proficient in the skills and competencies necessary to be successful in 
an industry or occupation. Accordingly, the Department proposes to add 
``experienced'' before ``worker'' in the existing definition and 
proposes to replace existing language stating that journeyworkers must 
have ``attained a level of skill, abilities and competencies recognized 
within an industry as having mastered the skills and competencies 
required for the occupation'' with language clarifying that 
journeyworkers must be ``proficient'' in such skills and competencies. 
The Department recognizes that the level of experience to gain 
proficiency would differ among industries and occupations. The 
Department has determined that the use of the term ``proficient'' is 
appropriate and uses it throughout the registered apprenticeship 
regulations because it is a clear and understandable term capturing the 
extent of an individual's mastery or expertise with respect to critical 
job skills and competencies necessary for such individuals to transfer 
their mastery and expertise to apprentices training in a registered 
apprenticeship program. The Department also acknowledges this term may 
be used interchangeably in industries with the following terms: mentor, 
experienced worker, technician, specialist, supervisor, or skilled 
worker, among other similar terms. The Department is also proposing to 
add language that a journeyworker may be proficient in an industry or 
occupation. The Department recognizes that industry expertise may be 
sufficient to obtain the proficiency necessary for someone to properly 
oversee and train an apprentice. However, the Department is encouraging 
commenters to identify if industry proficiency is sufficient for a 
journeyworker or if occupational proficiency for a journeyworker must 
be present.
    The concept of ``proficiency,'' as defined in proposed at Sec.  
29.2, is central to registered apprenticeship and apprentices' success 
in the careers they are pursuing by enrolling in a registered 
apprenticeship program. For a journeyworker to effectively provide the 
on-site instruction, the Department considers it important that the 
journeyworker has proficiency in the industry or occupation to 
effectively train the apprentice on-the-job. Consider an electrician or 
other trades worker who has been called to a residence to complete a 
job. If the worker is proficient in the job skills and competencies 
required for their profession, they will be able to complete the task 
to the satisfaction of the customer and their employer and within a 
period that allows their employer to make a profit, or otherwise gain a 
meaningful economic benefit, for the services rendered. Often within 
the trades, time to complete a task is set by the market, and 
tradespeople must be able to complete the task within that period to 
remain competitive. Employers may also need workers to complete 
multiple tasks or orders within a given timeframe, and workers' 
proficiency in completing each task or order directly correlates with 
the employer's bottom line in employing the worker and advertising 
their available services. Someone who does not possess the level of 
proficiency to accomplish these tasks safely and efficiently is not 
someone whom the Department thinks could or should be training and 
supervising the work of an apprentice. Accordingly, the Department 
proposes to include the term ``proficiency'' in the definition of 
``journeyworker.''
    Proposed Sec.  29.2 would add the definition of ``local educational 
agency (LEA)'' from an existing definition in the Elementary and 
Secondary Education Act of 1965.\61\ Proposed Sec.  29.24 in subpart B 
identifies LEAs as eligible program sponsors of registered CTE 
apprenticeships. To provide consistency and clarity for the regulated 
community, the Department is aligning the definition of LEA with the 
definition used in the Elementary and Secondary Education Act of 1965.
---------------------------------------------------------------------------

    \61\ 20 U.S.C. 8101 et seq.
---------------------------------------------------------------------------

    Proposed Sec.  29.2 would add the definition of ``local 
registration'' and define it for the first time. The purpose of adding 
this definition is to formally define a term and concept that is 
currently used to describe the registration of an apprenticeship 
program for Federal purposes by a Registration Agency within a 
particular State. In accordance with proposed Sec.  29.7(a), 
occupations determined suitable for registered apprenticeship would be 
eligible for local registration for Federal purposes by a Registration 
Agency, consistent with the approved work process schedule and related 
instruction outline. This is designed to indicate the difference 
between programs registered locally and programs registered nationally. 
Both methods of registration convey the benefits of registered 
apprenticeship to a program for Federal purposes; however, national 
programs are defined separately with separate criteria as discussed in 
proposed Sec.  29.14. Additionally, local registration pertains to the 
registered apprenticeship program registration process of a local 
affiliate that belongs to a national organization that has established 
templates and program guidelines through National Guidelines for 
Apprenticeship Standards under proposed Sec.  29.15(c).
    Proposed Sec.  29.2 would add the existing definition of ``major 
life activities'' in 29 CFR part 30.
    Proposed Sec.  29.2 would add a definition of ``National 
Apprenticeship System'' to describe the full scope of stakeholders 
involved with maintaining and supporting registered apprenticeship in 
the United States. In this proposed regulation, the Department seeks to 
describe and regulate a national, comprehensive system to develop, 
oversee, and promote registered apprenticeship across the country. In 
addition to the relevant Registration Agencies within the system--the 
Department's OA and SAAs recognized by OA--employers, labor unions, 
business organizations, trade and industry groups, educational 
institutions, intermediaries, and other stakeholders play critical 
roles in the country's system of registered apprenticeship by 
establishing robust connections between job seekers, workers, and 
employers, and equipping the system with capable instructors, trainers, 
and educators. Throughout this proposal, including the NPRM's preamble 
and the proposed regulatory text, the Department makes use of the term 
``National Apprenticeship System'' where appropriate to describe and 
refer to the coordinated efforts of the Department and stakeholders in 
the system of registered apprenticeship. The Department's proposed 
definition of this term is intended to provide clarity to the regulated 
community as to which entities are included as registered 
apprenticeship stakeholders when the Department makes reference to the 
national system.
    Proposed Sec.  29.2 would add the definition of ``National 
Guidelines for Apprenticeship Standards.'' While National Guidelines 
for Apprenticeship Standards currently exist as an option, commonly 
being used as a template of registered apprenticeship program 
standards, developed by a labor union, trade or industry association, 
or other organization with national scope, that is recognized by OA and 
may be adapted for local registration, proposed Sec.  29.15 is new and 
would establish criteria and a process for the recognition of National 
Guidelines for Apprenticeship

[[Page 3135]]

Standards.\62\ The Department proposes to add this definition here in 
conjunction with the proposed addition at Sec.  29.15.
---------------------------------------------------------------------------

    \62\ ETA, OA Circular No. 2022-02, ``Guidance--National 
Guidelines for Apprenticeship Standards,'' Feb. 16, 2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-02.pdf.
---------------------------------------------------------------------------

    Proposed Sec.  29.2 would add a new definition for ``National 
Occupational Standards for Apprenticeship'' as part of the Department's 
effort to define the different products in the system it has made 
available, or would make available, to support the development of 
registered apprenticeship programs both in traditional industries and 
occupations as well as new and emerging industries and occupations 
where registered apprenticeship is not widespread. The Department's 
definition of this term would help stakeholders understand the product 
described at proposed Sec.  29.13 of this part. OA is committed to 
updating and refining these tools, and the proposed definition for 
``National Occupational Standards for Apprenticeship'' lays the 
groundwork for OA's future development and refinement of this important 
program onboarding resource.
    The related National Guidelines for Apprenticeship Standards and 
National Program Standards for Apprenticeship would also be nationally 
applicable but represent different use profiles within the system. The 
proposed definition for National Guidelines for Apprenticeship 
Standards describes these as a template of registered apprenticeship 
program standards that are developed by an entity with national scope 
(such as a labor union or trade association), recognized by OA, and 
later adapted for local registration of a registered apprenticeship 
program. In contrast, the proposed definition for National Program 
Standards for Apprenticeship states that these are developed by a 
program sponsor for registration on a nationwide, reciprocal basis by 
OA. Eventually, the Department envisions that any programs basing their 
standards on National Guidelines for Apprenticeship Standards or 
National Program Standards for Apprenticeship would adopt National 
Occupational Standards for Apprenticeship that are tailored to the 
specific occupation covered by a registered apprenticeship program. The 
Department recognizes that the development of National Occupational 
Standards for Apprenticeship requires a robust process to ensure that 
they are relevant to industry stakeholders and would only require 
program sponsors to adopt National Occupational Standards as they 
become available.
    Proposed Sec.  29.2 would add the definition of ``National Program 
Standards for Apprenticeship'' and define it for the first time. While 
National Program Standards for Apprenticeship have been in common 
practice as a set of registered standards of apprenticeship developed 
and adopted by a program sponsor that are registered on a nationwide, 
reciprocal basis by OA,\63\ proposed Sec.  29.14 is new and would 
establish criteria and a process for the registration of National 
Program Standards for Apprenticeship. The Department proposes to add 
this definition here in conjunction with the proposed addition at Sec.  
29.14.
---------------------------------------------------------------------------

    \63\ ETA, OA Circular No. 2022-01, ``Updated Guidance--Minimum 
National Program Standards for Registered Apprenticeship Programs,'' 
Feb. 16, 2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-01.pdf.
---------------------------------------------------------------------------

    Proposed Sec.  29.2 would add the definition of ``non-compete 
clause,'' which means a term in the apprenticeship agreement or other 
agreement between an employer or sponsor and an apprentice that 
prohibits the apprentice from seeking or accepting employment with 
another employer during the registered apprenticeship program or 
registered CTE apprenticeship program.
    Proposed Sec.  29.2 would largely retain the existing definition of 
``Office of Apprenticeship'' from the registered apprenticeship 
regulations but would make minor changes to more accurately reflect the 
designation of responsibility for National Apprenticeship System 
oversight within DOL. In the proposed update to the definition of 
``Office of Apprenticeship (OA),'' the Department proposes to add a 
reference to the Secretary's designation of National Apprenticeship 
System oversight to ETA and OA. The Department also proposes to 
capitalize ``Apprenticeship'' in this updated definition to align with 
OA's official title.
    Proposed Sec.  29.2 would add the definition of ``on-the-job 
training'' and define the term for the first time. This term is 
referred to as ``on-the-job learning'' in the current rule. The 
Department is both proposing a definition for this concept in 
registered apprenticeship and updating it to ``training'' to align with 
other workforce development programs, such as those authorized under 
WIOA. Registered apprenticeship has two essential yet distinct 
components: related instruction and on-the-job training. While learning 
is involved in all aspects of apprenticeship, it is important to define 
on-the-job training as distinct, to explain what programs are required 
to provide and to mitigate compliance issues about the component of an 
apprenticeship that requires an apprentice to be paid wages while they 
are employed and learn an occupation suitable for registered 
apprenticeship. On-the-job training is an organized and systematic form 
of training conducted at a workplace or jobsite that is designed to 
provide the apprentice with the hands-on knowledge, skills, techniques, 
and competencies that are necessary to achieve proficiency in an 
occupation determined suitable for registered apprenticeship training. 
It is a requirement for apprentices in on-the-job training to be paid a 
wage based on the wage progression schedule in approved program 
standards or a collective bargaining agreement when apprentices are on 
the worksite and contributing to an employer's productivity. In 
contrast, related instruction is an organized and systematic form of 
instruction designed to provide the apprentice with knowledge of the 
theoretical and technical subjects related to the apprentice's 
occupation. Such instruction, unlike on-the-job training, may be given 
in a classroom, through occupational or industrial courses, or by 
correspondence courses of equivalent value, electronic media, or other 
forms of self-study approved by the Registration Agency with a 
requirement of no less than an average of 144 hours per every 2,000 
hours of on-the-job training under proposed Sec.  29.7(b)(4). In 
contrast, the registered CTE apprenticeship model proposed under 
subpart B will require a minimum of 540 hours of CTE apprenticeship-
related instruction, which encompasses not less than 12 postsecondary 
credit hours as part of the program.
    Proposed Sec.  29.2 would add a definition for the term 
``participating employer.'' A participating employer would be an 
employer that does not assume the role of a program sponsor under the 
proposed rule, but that has agreed--pursuant to either a collective 
bargaining agreement establishing a joint committee that sponsors a 
registered apprenticeship program, or a program standards adoption 
agreement (defined below) with a sponsor that is reached outside of a 
collective bargaining process--to adopt the sponsor's standards of 
apprenticeship and to serve as the employer of record for the 
apprentices who are enrolled in the sponsor's program. Accordingly, a 
participating employer would pay wages and provide closely supervised, 
on-the-job training to the apprentices.

[[Page 3136]]

As discussed below, this arrangement is designed to ensure that 
participating employers would be held accountable for meeting the 
requirements contained in this part and in 29 CFR part 30.
    Proposed Sec.  29.2 would add the existing definition of ``physical 
or mental impairment'' from 29 CFR part 30.
    Proposed Sec.  29.2 would add a definition of ``pre-apprenticeship 
program'' to the text of 29 CFR part 29. While the EEO in 
Apprenticeship regulations at 29 CFR 30.2 currently contains a 
definition of pre-apprenticeship, there is no corresponding definition 
of that term in the current version of the labor standards of 
apprenticeship regulation at 29 CFR 29.2. This proposed definition 
would apply to the usages of the term in both parts 29 and 30 to ensure 
consistent use in the regulations governing the National Apprenticeship 
System. The proposed definition retains many aspects of the 29 CFR part 
30 definition regarding pre-apprenticeship, but some changes are 
proposed to more closely align to the definitions of the same term that 
appear in the WIOA regulations at 20 CFR 681.480 and in the 2023 
Quality Apprenticeships Recommendation (ILO Recommendation No. 
208).\64\ The proposed definition includes elements regarding access to 
educational and career counseling, supportive services, and 
opportunities to earn industry-recognized credentials as described in 
the WIOA definition. The inclusion of this definition in a revised 29 
CFR part 29 is relevant because the proposed rule (at 29 CFR 29.25) 
would authorize the collection of information from registered 
apprenticeship program sponsors about pre-apprenticeship programs, and 
the apprentices they recruit from these programs, with which the 
sponsor has established a written partnership. The Department notes 
that an individual participating in a pre-apprenticeship program would 
not be considered an ``apprentice'' covered by these regulations. 
However, the role the Department has in promoting opportunities for 
workers and in promoting labor standards includes these critical talent 
pipelines to registered apprenticeship programs. Therefore, the 
Department is defining the proposed term here and in doing so 
recommending criteria that may be utilized by sponsors to accurately 
report the efficacy of such activities under 29 CFR 29.25. 
Additionally, it is important for registered apprenticeship programs to 
partner and form agreements and partnerships with pre-apprenticeship 
programs to establish a reliable pipeline of apprentices into the 
program and ensure they are diversifying their recruitment methods to 
meet EEO requirements in 29 CFR part 30. Pre-apprenticeship models 
should have an equitable, intentional, and achievable strategy for 
advancing the program's recruitment, hiring, and retention of 
individuals from underserved communities, and use the non-
discrimination and EEO requirements contained in 29 CFR part 30 as the 
basis for identifying and eliminating barriers to opportunity in the 
program. As the Department has invested in pre-apprenticeship program 
models over the years, it has identified the elements laid out in this 
definition to be critical to laying a foundation in the broader 
workforce development community of what elements must be in a pre-
apprenticeship program. The Department's experience further suggests 
that it is necessary to collect more robust information on pre-
apprenticeship programs' effectiveness in placing participants as 
apprentices, as well as to better ascertain a registered apprenticeship 
program's efforts to meet their outreach and recruitment goals required 
in 29 CFR part 30. This definition would be necessary for stakeholders 
to understand how the term is used throughout the proposed regulation, 
and it also would better align registered apprenticeship and WIOA, with 
the Department's long-term goal being greater integration between pre-
apprenticeship programs and registered apprenticeship programs to 
benefit career seekers, prospective apprentices, and employers.
---------------------------------------------------------------------------

    \64\ ILO, ``Quality Apprenticeships Recommendation, 2023'' (ILO 
Recommendation No. 208), Conclusion 1(c), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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    Finally, the Department views pre-apprenticeship, registered CTE 
apprenticeship, and registered apprenticeship collectively as a broader 
apprenticeship pathways system with additional entry points for career 
seekers, particularly those from underserved communities, leading to 
registered apprenticeship. Pre-apprenticeship activities, including 
other forms of work-based learning such as job shadowing, project-based 
learning, and internships, may be utilized for CTE students, 
particularly those younger than 16, to better prepare them for success 
in registered CTE apprenticeship. Ultimately, in certain situations, an 
individual could progress from pre-apprenticeship to registered CTE 
apprenticeship, and then to registered apprenticeship.
    Proposed Sec.  29.2 would add the definition of ``proficiency'' and 
define it for the first time. Proficiency would mean, for purposes of 
subpart A of this part, the demonstrated, measurable attainment by an 
apprentice of each of the relevant job skills and competencies that are 
necessary to perform successfully at the journeyworker level in a given 
occupation. The purpose for adding the definition, among other things, 
is to clarify that the attainment of each of the various competencies 
associated with an occupation culminates in an apprentice's acquisition 
of overall occupational proficiency in that field.
    Proposed Sec.  29.2 would add a new definition for ``program 
review'' to replace the definition of ``quality assurance assessment,'' 
which the Department proposes removing, and bring the registered 
apprenticeship regulations in line with current administrative 
practices related to OA's oversight of the National Apprenticeship 
System. OA conducts program reviews to assess whether programs are in 
full compliance with the registered apprenticeship regulations in parts 
29 and 30. The Department has determined that it would benefit the 
regulated community to include a definition for this important 
administrative process in the proposed update to the registered 
apprenticeship regulations so that stakeholders, in particular program 
sponsors, fully understand what is meant by a program review as that 
term is used below and as used in any communications or interactions 
with the Department or SAA. As discussed below, a program review could 
include technical assistance, which could be provided to a program 
sponsor as needed to assist the program with achieving full compliance 
with the regulations.
    Proposed Sec.  29.2 would add a definition for the term ``program 
standards adoption agreement.'' This term would apply to written 
agreements reached outside of a collective bargaining process between a 
sponsor that has developed a written set of registered standards of 
apprenticeship and work processes, and a Participating Employer that 
has agreed to utilize and adhere to the program sponsor's standards of 
apprenticeship and work processes for the training of apprentices in 
its employ.
    Proposed Sec.  29.2 would largely retain the definition of 
``provisional registration'' from the existing registered 
apprenticeship regulations with a few minor proposed adjustments. The

[[Page 3137]]

proposed definition for ``provisional registration'' would replace 
``rescinded'' with ``deregistered'' to align with current 
administrative practices and the proposed language and process for 
program registration at proposed Sec.  29.10 because, as discussed 
below, the Department has determined that ``deregistered'' is a more 
suitable term to describe the scenario wherein a program that has been 
granted provisional approval is determined to be out of compliance with 
the registered apprenticeship regulations following a review by the 
Registration Agency. The Department is proposing to remove the term 
``1-year'' to align with the procedural changes described in proposed 
Sec.  29.10, which provides for a provisional period covering the first 
full training cycle of a registered apprenticeship program. In addition 
to the change described above, the Department proposes to change the 
cross-reference at the end of the existing definition of ``provisional 
registration'' to refer to ``this part'' (i.e., the registered 
apprenticeship regulations at 29 CFR part 29). The Department has 
determined that it would be beneficial to clarify to the regulated 
community that provisional registration involves reviews for compliance 
with the entirety of parts 29 and 30, and not just compliance with the 
provisions cited in the existing definition (existing 29 CFR 29.3(g) 
and (h)).
    Proposed Sec.  29.2 would add the existing definition of 
``qualified applicant or apprentice'' in 29 CFR part 30.
    Proposed Sec.  29.2 would add the existing definition of ``race'' 
in 29 CFR part 30. This definition would have the same meaning as under 
the Office of Management and Budget's (OMB) Standards for the 
Classification of Federal Data on Race and Ethnicity, or any successor 
standards.
    Proposed Sec.  29.2 would add the existing definition of 
``reasonable accommodation'' in 29 CFR part 30.
    Proposed Sec.  29.2 would add the definition of ``reciprocity of 
registration'' and define it for the first time. While the concept of 
reciprocity is referenced in existing regulation at Sec.  29.13(b)(7) 
as a requirement imposed on SAAs, the purpose of adding the definition 
is to define the concept of reciprocity more clearly as the provision 
of local registration status by an SAA in that State for a registered 
apprenticeship program registered by another Registration Agency.
    Proposed Sec.  29.2 would add the definition of ``recognized 
postsecondary credential'' and define it for the first time. The 
purpose of adding the definition of a recognized postsecondary 
credential is to clarify what this type of credential is in the 
National Apprenticeship System and to align with WIOA's definition of 
this term so that there is a shared definition across programs to 
assist program sponsors and workforce professionals operating and 
administering WIOA programs. Recognized postsecondary credentials 
awarded in a registered apprenticeship program should confer 
recognition of an apprentice's attainment of measurable technical or 
industry and occupational skills necessary to advance within an 
industry and occupation. These technical or industry and occupational 
skills generally are based on standards developed or endorsed by 
employers or industry associations. Apprentices may attain more than 
one recognized postsecondary credential during a program or upon 
completion. Relatedly, the Department has proposed modifying its 
definition for interim credential, discussed above, to be those 
recognized postsecondary credentials obtained during an apprentice's 
participation in a registered apprenticeship program. For the purposes 
of registered apprenticeship, the proposed definition of a recognized 
postsecondary credential includes: an industry-recognized certificate 
or certification, a Certificate of Completion, which is a requirement 
for all registered apprenticeship program sponsors, in coordination 
with a Registration Agency, to administer and provide to an apprentice 
upon completion of an approved program; a Federal, State, or local 
license in an occupation suitable for registered apprenticeship where 
such occupational licensure is required; or an associate or 
baccalaureate degree. Defining the term for Federal purposes would 
bring it into better alignment with usage and application as a 
programmatic outcome under WIOA and Perkins, and it could be used for 
assessing apprentices' rate of credential attainment for program and 
system reporting purposes under proposed Sec.  29.25.\65\ The 
Department is encouraging commenters to describe any increased 
opportunities for alignment with WIOA's credential measure, any 
comments where there may be challenges to alignment with this measure, 
and if the Department should continue its role in providing interim 
credentials strictly for competency attainment.
---------------------------------------------------------------------------

    \65\ ETA, Training and Employment Notice (TEN) No. 25-19, 
``Understanding Postsecondary Credentials in the Public Workforce 
System,'' June 8, 2020, https://www.dol.gov/agencies/eta/advisories/training-and-employment-notice-no-25-19.
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    Proposed Sec.  29.2 would delete the definition of ``apprenticeship 
program'' that appears in the current version of the labor standards of 
apprenticeship regulation at 29 CFR 29.2 and replace it with a more 
comprehensive definition of ``registered apprenticeship program.'' The 
new definition would stipulate that such apprenticeship programs must 
be of minimum duration and consist of both a paid on-the-job training 
component and a related instruction component and be registered by a 
Registration Agency.
    Proposed Sec.  29.2 would add a definition for the new term 
``registered CTE apprenticeship program.'' A registered CTE 
apprenticeship program would be a program registered under subpart B 
and refers to a model of registered apprenticeship that is a structured 
integrated education and career training program embedded within a CTE 
program and includes a paid, on-the-job training component. This 
program would be distinct from registered apprenticeship programs in 
subpart A. Such a program would admit students, as CTE apprentices, who 
have signed a CTE apprenticeship agreement approved by a Registration 
Agency. Registered CTE apprenticeship programs would be designed to 
provide curriculum and on-the-job training for industrywide skills and 
competencies that may be applicable for any number of occupations. 
However, it should be noted that registered apprenticeship under 
subpart A would have a requirement of no less than an average of 144 
hours per every 2,000 hours of on-the-job training under proposed Sec.  
29.7(b)(4). In contrast, the registered CTE apprenticeship model 
proposed under subpart B would require a minimum of 540 hours of CTE 
apprenticeship-related instruction, which encompasses not less than 12 
postsecondary credit hours. Registered CTE apprenticeship programs 
would not be a substitute for registered apprenticeship programs under 
subpart A. Program sponsors of registered CTE apprenticeship would be 
encouraged to develop standards for use in a registered apprenticeship 
program under subpart A and meet the requirement of that part, 
especially where there are programmatic opportunities and a workforce 
need for alignment.
    Proposed Sec.  29.2 would revise the existing definition for 
``Registration Agency'' to align with proposed changes to the part 29 
regulations. The proposed definition for ``Registration Agency'' 
largely retains the existing definition but capitalizes ``Agency'' and 
adds

[[Page 3138]]

language clarifying that a Registration Agency must be a governmental 
entity to clarify that these are official government entities with a 
defined role and mission. The proposed definition also replaces the 
existing definition's references to ``reviews for compliance'' and 
``quality assurance assessments'' with a general reference to ``program 
reviews'' that encompass assessments for compliance with both 29 CFR 
parts 29 and 30. In this proposed regulation, the Department proposes 
to refer to such compliance checks as ``program reviews,'' includes a 
proposed new definition for the term ``program review,'' and proposes 
to include a new section at Sec.  29.19 that describes program reviews 
(see proposed Sec.  29.19).
    Proposed Sec.  29.2 would retain the existing definition of 
``related instruction.'' As discussed above, related instruction would 
be distinct from ``on-the-job training'' in a registered apprenticeship 
program.
    Proposed Sec.  29.2 would make minor changes to the existing 
definition for ``Secretary'' intended to clarify DOL's key role in 
overseeing the National Apprenticeship System. The proposed definition 
for ``Secretary'' would clarify that the referenced individual is the 
U.S. Secretary of Labor and would further clarify that ``Secretary'' 
may also refer to any official of DOL designated by the Secretary to 
clarify the scope individuals to whom the Secretary's authority may be 
delegated.
    Proposed Sec.  29.2 would add the existing definition for 
``selection procedure'' from 29 CFR part 30.
    Proposed Sec.  29.2 would modify the definition of ``sponsor'' by 
expanding the illustrative list of entities that could be a sponsor to 
include intermediaries, which aligns with current practice. The 
proposed definition adds ``employer'' to more accurately describe the 
parties that can be a sponsor. In addition, the proposed definition 
retains association, committee, or organization that operates a 
registered apprenticeship program in whose name that program is 
registered. The proposed definition specifies that, in addition to 
operating a program, a sponsor also administers a program. The proposed 
definition also specifies that a Registration Agency is the 
registration and approval entity.
    Proposed Sec.  29.2 would add a new definition for ``Standards of 
Apprenticeship'' to the list of defined terms in the part 29 
regulations. ``Standards of Apprenticeship'' is an important term of 
art in registered apprenticeship that refers to the organized, written 
plan containing the terms and conditions of employment, training, and 
supervision within a given registered apprenticeship program, the 
requirements of which are discussed in proposed Sec.  29.8 below. The 
Department's proposed definition for ``Standards of Apprenticeship'' 
clarifies that these apply to registered apprenticeship programs.
    Proposed Sec.  29.2 would modify the definition of ``State'' to 
align with WIOA. The definition of ``State'' under section (sec.) 3 of 
WIOA includes the Commonwealth of Puerto Rico explicitly. The 
Department's proposed definition also utilizes WIOA's definition of 
``outlying area'' rather than the existing term ``Territory or 
possession of the United States.'' Outlying area under WIOA includes 
American Samoa, Guam, Commonwealth of the Northern Mariana Islands, the 
Republic of Palau, and the United States Virgin Islands. This proposed 
alignment is another area where the Department is attempting further 
integration between apprenticeship and the broader workforce system by 
recognizing that the outlying areas, which receive funding under title 
I of WIOA, should be able to make greater use of the National 
Apprenticeship System to develop a more comprehensive workforce 
strategy.
    Proposed Sec.  29.2 would retain the definition for ``State 
Apprenticeship Agency'' from the existing regulations with minor 
adjustments. The proposed definition provides more clarity that only a 
State government agency or department may seek recognition as an SAA.
    Proposed Sec.  29.2 would modify the definition of ``State 
Apprenticeship Council.'' The previous definition was updated in the 
2008 final rule and limited an earlier definition that granted 
authority to promulgate apprenticeship laws in the event a State 
Apprenticeship Council was established as a regulatory body. The 
purpose of the proposed changes to Sec.  29.2 in this proposed rule is 
to reflect the proposed changes in Sec.  29.26, which would require 
that State Apprenticeship Councils act solely in an advisory capacity 
and prohibit an SAA from delegating regulatory or oversight functions 
to the State Apprenticeship Council.
    Proposed Sec.  29.2 would add a definition for ``State 
Apprenticeship Plan.'' This definition is being added due to its 
inclusion in proposed Sec.  29.27 as a mandatory submission from a 
State government agency seeking to obtain or maintain recognition as an 
SAA. Establishing a definition of ``State Apprenticeship Plan'' is 
necessary to provide clear differentiation from other required plans in 
this part and 29 CFR part 30. This definition would also clarify that a 
plan covers a State government agency's recognition for 4 years as an 
SAA.
    Proposed Sec.  29.2 would add a definition for the term of ``State 
CTE Agency.'' A State CTE Agency would be a State board designated or 
created consistent with State law as the sole State government agency 
responsible for the administration of CTE in the State or for the 
supervision of the administration of CTE in the State, or another State 
government agency delegated the authority by such State board to 
administer Perkins. Under subpart B, the State CTE Agency would have 
the responsibility to coordinate with a Registration Agency for the 
coordination of registered CTE apprenticeship programs if a State 
chooses to register such programs.
    Proposed Sec.  29.2 would add the definition of ``supportive 
services'' and define it for the first time. The purpose of adding the 
proposed definition is to recognize the types of services provided in 
current practice by National Apprenticeship System stakeholders and 
partners that are necessary to enable an individual to participate and 
succeed in registered apprenticeship programs, as well as registered 
CTE apprenticeship and pre-apprenticeship programs. The proposed 
definition is aligned with the existing definition found under sec. 3 
of WIOA. Under WIOA, the term ``supportive services'' means services 
such as transportation, childcare, dependent care, housing, and needs-
related payments that are necessary to enable an individual to 
participate in activities authorized under the Act. The holistic 
provision of supportive services through cross-system coordination has 
been found to be beneficial as a programmatic intervention that enables 
program participants who may face barriers, such as affordable 
childcare, housing assistance, and reliable transportation, to 
participate in and complete a pre-apprenticeship or registered 
apprenticeship program. Supportive services may include, but are not 
limited to: assistance with transportation; assistance with childcare 
and dependent care; linkages to community services; assistance with 
housing; assistance with educational testing; referrals or coverage for 
physical or mental health care services; assistance with uniforms or 
other appropriate work attire and work-related tools, including such 
items as eyeglasses and protective eye gear; assistance with books, 
fees, school supplies, and other necessary items for students enrolled 
in college or career readiness, secondary, and

[[Page 3139]]

postsecondary education classes; payments and fees for employment and 
training-related applications, tests, and certifications; needs-related 
payments; and legal aid services.\66\ Several types of National 
Apprenticeship System stakeholders and partners, including 
intermediaries and local workforce boards, provide supportive services. 
Local workforce areas may provide supportive services, in coordination 
with career or training services or both, consistent with WIOA sec. 
134(d)(2) and State and local policies, to participants in a registered 
apprenticeship program.\67\
---------------------------------------------------------------------------

    \66\ For more on the Department's approach to supportive 
services, see 20 CFR 680.900 (``What are supportive services for 
adults and dislocated workers?'') in the WIOA regulations and ETA, 
TEN No. 12-21, ``Practitioners Guide to Supportive Services,'' Oct. 
15, 2021, https://www.dol.gov/agencies/eta/advisories/training-and-employment-notice-no-12-21.
    \67\ ETA, TEGL No. 19-16, ``Guidance on Services provided 
through the Adult and Dislocated Worker Programs under the Workforce 
Innovation and Opportunity Act (WIOA) and the Wagner-Peyser Act 
Employment Service (ES),'' Mar. 1, 2017, https://www.dol.gov/agencies/eta/advisories/training-and-employment-guidance-letter-no-19-16.
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    Proposed Sec.  29.2 would largely retain the existing definition 
for ``technical assistance,'' with a minor change to the final clause 
describing what technical assistance is meant to accomplish. The 
existing part 29 regulations define ``technical assistance'' as 
guidance or assistance to further program compliance with the part 29 
regulations or guidance provided to an SAA on how to ``remedy 
nonconformity'' with the regulations. The Department has proposed to 
replace that language to clarify that ``technical assistance'' refers 
to any support provided to help an entity--a program sponsor or an 
SAA--satisfy the requirements of parts 29 and 30. Technical assistance 
does not only arise out of a problem, or in response to a finding of 
noncompliance with the registered apprenticeship regulations. Technical 
assistance is also a proactive activity or resource that can help 
stakeholders understand and comply with requirements at the outset of 
setting up a program, during the course of a program when a question 
arises, or in response to new developments that affect a given 
program's circumstances. To assist the regulated community with 
understanding and complying with this proposed regulation, and in 
accordance with the Department's historical practice, the Department 
plans to engage in a proactive, comprehensive technical assistance 
campaign that includes written resources and guides and increased 
avenues for the provision of customer service, including additional 
staffing to address individual issues and improved forums or portals 
for requesting and receiving technical assistance.
    Proposed Sec.  29.2 would retain the definition for ``transfer'' 
from the existing regulations.
    Proposed Sec.  29.2 would add a definition of ``underserved 
communities.'' One of the key goals of this proposed rule is to enhance 
opportunities to support greater equity in the National Apprenticeship 
System. The Department is adding this term, as it is used throughout 
the proposed rule, to ensure SAAs, program sponsors, and other 
stakeholders have an intentional strategy to recruit from and retain 
individuals from these communities. The Department's proposed 
definition is derived from several sources: the Good Jobs Principles; 
the protected bases in 29 CFR part 30; and populations described in 
WIOA as potentially needing more services for full access to training 
and employment. The Department welcomes comments on this proposed 
definition, as well as recommendations for how to embed strategies for 
recruiting and retaining apprentices from these communities into the 
National Apprenticeship System. The Department welcomes comments on 
this proposed definition, as well as recommendations for how to embed 
strategies for recruiting and retaining apprentices from these 
communities into the National Apprenticeship System.
    Proposed Sec.  29.2 would add the existing definition of ``undue 
hardship'' from 29 CFR part 30.
    Proposed Sec.  29.2 would add a definition of ``work process 
schedule.'' The current version of 29 CFR 29.2 does not include a 
definition of the term ``work process schedule,'' although this term is 
referenced at current Sec.  29.5(b)(3), as well as in other provisions 
of the current regulations. This omission would be rectified in 
proposed Sec.  29.2 of the NPRM so that there is clear understanding of 
what the regulations mean when they use the term work process schedule. 
The new definition of the term would clarify that a work process 
schedule is a training plan that establishes a series of measurable 
competency benchmarks whose acquisition by the apprentice should lead 
to occupational proficiency by the conclusion of the apprenticeship 
term.
Section 29.3--Office of Apprenticeship
    This proposed section ``Office of Apprenticeship'' is included to 
describe the roles and responsibilities of the DOL's OA, which have 
evolved over time, and is intended to provide clarity to the regulated 
community on the activities OA performs. OA is the office established 
in ETA to be the administrative and coordinating entity of the National 
Apprenticeship System. The Department is adding this section to more 
accurately describe the role and responsibilities of OA, particularly 
in light of the changes that have occurred in apprenticeship and in the 
broader economy that occurred since the publication of the current 29 
CFR part 29 in 2008.
    In a rapidly changing apprenticeship environment, OA continues to 
have the responsibility to implement and administer the NAA, including 
by safeguarding the welfare of apprentices through approving registered 
apprenticeship programs and standards as a Registration Agency and 
cooperating with State government agencies by recognizing SAAs. The 
proposed section also recognizes and describes OA's role and 
responsibility to lead and coordinate the National Apprenticeship 
System on national policy efforts, manage any resources provided to 
support apprenticeship, convene industry to promote the importance of 
apprenticeship including the advantages of adopting standards of 
apprenticeship, promote the value of apprenticeship, advocate EEO for 
apprentices and the benefits of apprenticeship as a DEIA strategy for 
sponsors, maintain National Apprenticeship System data for OA and SAAs, 
and provide technical assistance to National Apprenticeship System 
partners, including sponsors and SAAs. Finally, OA has the role and 
responsibility to engage with a variety of entities and organizations 
to develop and facilitate apprenticeship in the United States and 
develop partnerships with stakeholders throughout the National 
Apprenticeship System including sponsors, intermediaries, and States.
    Proposed Sec.  29.3(a) through (d) describe the administrative 
duties OA fulfills to formulate and update regulations, issue 
subregulatory guidance, policies, and procedures in connection with the 
implementation of the NAA (29 U.S.C. 50), and to register 
apprenticeship programs and standards that satisfy the requirements of 
29 CFR parts 29 and 30. Proposed Sec.  29.3(c) also maintains OA's 
existing role for granting recognition to SAAs that are established 
under State laws and regulations, and that also satisfy the 
requirements that are outlined in proposed Sec.  29.26. These proposed 
paragraphs also include OA's role in promoting the development of 
industry-validated standards as part of the suitability determination 
process

[[Page 3140]]

described in proposed Sec.  29.7, the development of National 
Occupational Standards for Apprenticeship described in proposed Sec.  
29.10, and industry skills frameworks described in subpart B of this 
part.
    Proposed Sec.  29.3(e) would require OA to maintain National 
Apprenticeship System data pertaining to apprentices and apprenticeship 
programs that are registered by either OA or SAAs. The purpose of this 
provision is to support proposed Sec. Sec.  29.25 and 29.8 as a 
modernization effort to facilitate data collection and reporting. OA's 
operation and management of this data system would make the system more 
transparent and accountable; promote equitable program outcomes for 
apprentices; and build capacity to disaggregate demographic, 
geographic, and industry data to evaluate and assess program quality.
    Proposed Sec.  29.3(f) would establish the administrative role of 
OA to promote DEIA in apprenticeship, including for those from 
underserved communities. In addition, this provision would include OA's 
role in enforcing equal opportunity for apprentices and applicants for 
apprenticeship in registered apprenticeship programs consistent with 
part 30.
    Proposed Sec.  29.3(g) would establish the coordinating role for OA 
to deliver technical assistance to registered apprenticeship program 
sponsors, SAAs, companies, Federal agencies, and other key stakeholders 
in the development of apprenticeship program standards and the 
operation of apprenticeship programs. The Department also anticipates 
that under this proposed rule it would provide significant technical 
assistance to SAAs and sponsors on the data reporting requirements in 
proposed Sec. Sec.  29.25 and 29.28, including promoting and training 
on the practices for the collection and utilization of data. An example 
of how this coordination role has been operationalized is through the 
Department's investments in industry intermediaries that work across 
both OA and SAA States to deliver timely technical assistance. 
Technical assistance is a critical OA function that provides assistance 
to employers, education providers, and other stakeholders in program 
design and in compliance-related matters as well.
    Proposed Sec.  29.3(h) would also establish a coordinating role for 
OA to engage in discussions with relevant stakeholders, including 
multilateral institutions, businesses, and non-governmental 
organizations in order to facilitate the development and expansion of 
apprenticeships in the United States. The purpose of this new provision 
is to institutionalize longstanding relationships the Department has 
created with apprenticeship stakeholders across the globe through 
mechanisms such as the development of memoranda of understanding that 
promote the exchange of ideas and best practices for expanding 
registered apprenticeship programs, bolster U.S. efforts to establish 
new apprenticeship programs, increase awareness of opportunities, and 
create career pathways for apprentices. This paragraph would also 
establish a coordinating role for OA to develop partnerships with 
apprenticeship stakeholders that could facilitate and accelerate the 
expansion of quality registered apprenticeship programs across the 
National Apprenticeship System.
    Proposed Sec.  29.3(i) would provide OA the flexibility to conduct 
other activities that support the National Apprenticeship System. This 
is to account for the wide array of activities that OA may conduct to 
further the goals of the National Apprenticeship System. Such 
activities have historically included overseeing registered 
apprenticeship-related appropriations and investments, an annual 
National Apprenticeship Week, recognition programs such as 
Apprenticeship Ambassadors, and many others.
Section 29.4--Relation to Other Laws and Agreements
    Proposed Sec.  29.4 would describe how the proposed regulation 
would relate to other laws and agreements that could apply to the 
entities covered by this proposed rule. To align with a similar 
existing provision in part 30, proposed Sec.  29.4(a) makes clear that 
the provisions set forth in the revised part 29 would not invalidate or 
supersede any other Federal, State, or local law establishing more 
protective or stringent minimum labor standards of apprenticeship than 
those contained in part 29. Similarly, proposed Sec.  29.4(b) 
stipulates that part 29 would not invalidate any provision in any 
collective bargaining agreements applicable to a registered 
apprenticeship program that establishes more protective or stringent 
minimum labor standards of apprenticeship. The provisions of part 29 
establish the minimum requirements or a floor for program standards, 
and not a ceiling. The Department notes that there are many successful 
programs that exceed these minimum standards and encourages all 
programs to do so in support of developing high-quality training 
programs for apprentices and employers. Where such higher standards are 
established, this provision would make it clear that they, rather than 
the requirements of this part, are controlling.
Section 29.5--Severability
    The Department proposes to include a severability provision as part 
of this proposed rule. To the extent that any provision, or any portion 
of any provision, of 29 CFR part 29 that has been proposed or modified 
in this proposed rule is declared invalid by a court of competent 
jurisdiction, the Department intends for all other provisions of this 
part that are capable of operating in the absence of the specific 
provision, or portion of such provision, that has been invalidated to 
remain in effect.
Section 29.6--Transition Provisions
    The Department is proposing this section to establish reasonable 
transition periods to allow for the orderly implementation of the 
amended regulations. In developing these proposed transition periods, 
the Department has made a concerted effort to account for the unique 
needs, circumstances, and potential burdens different stakeholders and 
regulated entities may face in transitioning their operations, 
policies, or administrative procedures to come into compliance with the 
updated regulation. These proposed transition periods balance a 
reasonable timeline to accommodate current and potential system 
stakeholders against the need to build a stronger National 
Apprenticeship System with core quality elements.
    The essential quality elements that the Department seeks to realize 
within the National Apprenticeship System relate to approving 
occupations with respect to their suitability for registered 
apprenticeship training, registering apprenticeship programs, approving 
work process schedules, enhancing worker protections in apprenticeship 
agreements, and enhancing data and performance reporting and measuring. 
The Department invites comments on each transition provision, including 
whether a transition period is necessary, the length of time provided, 
and whether additional transition provisions should be included. In 
particular, the Department is interested in comments from the primary 
parties that would have to come into compliance in the time allotted by 
these proposed provisions--namely, applicants for suitability 
determinations, existing and potential program sponsors, labor 
organizations, Registration Agencies (SAAs), and any other 
organizations or stakeholder groups that would be impacted (or whose 
constituencies

[[Page 3141]]

would be impacted) by the proposed transition timelines. The Department 
seeks their input on the reasonableness and feasibility of the proposed 
transition provisions, their impact on the National Apprenticeship 
System and efforts to expand registered apprenticeship, and any 
additional considerations from their valuable perspectives.
    Proposed paragraph (a) addresses the implementation of the proposed 
rule as it pertains to proposed Sec.  29.7 and the updated process for 
making determinations on occupations' suitability for registered 
apprenticeship. The provisions at proposed Sec.  29.7 would ultimately 
pertain to occupations not yet determined suitable prior to the 
effective date of the proposed regulation (potential occupations), 
occupations previously recognized as suitable for registered 
apprenticeship training (formerly, ``apprenticeable'') by the 
Administrator (OA) under the existing regulatory framework at Sec.  
29.4 (existing suitable occupations), and occupations recognized as 
suitable for registered apprenticeship training by an SAA prior to the 
effective date of the proposed regulation (SAA-approved occupations). 
The Department has organized the proposed transition provisions related 
to proposed Sec.  29.7 around these three categories to promote 
clarity. In short, if an occupation has not been previously determined 
to be suitable for registered apprenticeship training prior to the 
effective date of this proposed regulation, the provisions at proposed 
Sec.  29.7 would apply within 90 days of the effective date of the 
final rule. If an occupation has been previously determined to be 
suitable for registered apprenticeship training prior to the effective 
date of the regulation, the provisions at proposed Sec.  29.7 would 
apply 4 years following the effective date of the final rule.
    The following table summarizes the proposed transition provisions 
relating to proposed Sec.  29.7, which would apply to applicants for 
suitability determinations as described above (as well as sponsors of 
existing programs utilizing occupations recognized as suitable for 
registered apprenticeship training prior to the final rule's effective 
date):

             Proposed Transition Provisions for Sec.   29.7
        [Occupations' suitability for registered apprenticeship]
------------------------------------------------------------------------
                 Scenarios                  Proposed transition timeline
------------------------------------------------------------------------
Potential occupations--occupations not      90 days following the
 determined suitable for registered          effective date of the final
 apprenticeship training prior to the        rule.
 effective date of the final rule.
Existing suitable occupations--occupations  4 years following the
 deemed suitable for registered              effective date of the final
 apprenticeship training by the              rule.
 Administrator prior to the effective date
 of the final rule.
SAA-approved occupations--occupations       4 years following the
 deemed suitable for registered              effective date of the final
 apprenticeship training by an SAA.          rule.
------------------------------------------------------------------------

    As described in the table above, the Department believes these are 
the three different scenarios relevant to the proposed transition 
provisions for proposed Sec.  29.7. Proposed paragraph (a)(1) is for 
occupations that have not been determined suitable (formerly 
``apprenticeable'') as of the effective date of this proposed rule. The 
Department is proposing that applications for suitability 
determinations for potential new occupations must reflect the updated 
requirements in proposed Sec.  29.7 beginning 90 days after the 
effective date of the final rule, and that during this transition 
period, the requirements of the existing rule's Sec.  29.4 would remain 
in effect. The Department seeks to implement the new proposed process 
for making determinations on occupations' suitability for registered 
apprenticeship training shortly after the effective date of the final 
rule, but recognizes that it could be necessary to provide a transition 
period to accommodate any applications that may have been in process, 
update systems, develop and issue technical assistance documents, and 
otherwise leave time for both the regulated community and the 
Department to prepare for the changes to the updated process.
    Proposed paragraph (a)(2) would implement the proposed requirement 
of Sec.  29.7(a) that occupations may only be determined suitable by 
the Administrator. Under this transition provision, SAAs that make 
apprenticeability determinations under the current rule's Sec. Sec.  
29.4 and 29.13 would not be able to make suitability determinations 
under proposed Sec.  29.7 for Federal purposes upon the effective date 
of this proposed rule.
    Proposed paragraph (a)(3) addresses the transitioning of 
occupations previously determined apprenticeable under the current 
regulatory framework at Sec.  29.4. These occupations would be 
considered suitable for registered apprenticeship by the Administrator 
until OA reviews the occupation for continued suitability under 
proposed Sec.  29.7(h), which provides for a 5-year review process of 
suitable occupations, work process schedules, and related instruction 
outlines. The Department recognizes the significant undertaking 
required to review previously approved occupations under current Sec.  
29.4 with the criteria under proposed Sec.  29.7, and thus it proposes 
in Sec.  29.7(h) an ongoing 5-year review process for suitable 
occupations to maintain their suitability status. The Department 
intends to avoid and minimize any adverse impacts to established 
programs associated with the implementation of this proposed rule, and 
the provisions of proposed Sec.  29.7(h) provide programs with 
sufficient notice about the timing regarding an update to existing 
occupations. The Department also intends to develop and disseminate 
comprehensive technical assistance resources around the updated 
suitability process and continue to provide responsive, effective 
customer service to existing and potential stakeholders at the 
regional, State, and local levels. The Department has decided not to 
permanently exempt existing occupations beyond the provisions described 
in proposed Sec.  29.7(h) because the Department wants to ensure a 
process where all occupations remain updated to the needs of industry 
to ensure the training of apprentices remains at the highest quality 
possible. The Department is interested in comments about the length of 
this transition provision, impacts to current sponsors, and 
alternatives such as permanently exempting those occupations versus the 
goal of building a more cohesive National Apprenticeship System with 
occupations that are approved under a consistent approach as envisioned 
in this proposed regulation.
    Proposed paragraphs (b) and (c) address the implementation of 
proposed Sec. Sec.  29.8 through 29.23, which concern proposed 
standards for registered

[[Page 3142]]

apprenticeship programs and other proposed regulatory requirements 
pertaining to registered apprenticeship programs. For these sections of 
the proposed regulation, program sponsors would ultimately be 
responsible for their registered apprenticeship program's compliance 
with the updated part 29 regulations, consistent with these transition 
provisions. As with the proposed transition provisions for Sec.  29.7, 
the Department envisions three different scenarios relevant to the 
proposed transition provisions for the remainder of proposed subpart A. 
First, the Department proposes that any new programs that were not 
registered by the Administrator prior to the effective date of the 
final rule (potential programs) would need to comply with the updated 
requirements in subpart A after the effective date of this proposed 
rule. The Department plans to make available to sponsors an electronic 
submission process for the submission of registered apprenticeship 
applications, at which time those sponsors would be expected to comply 
with the updated submission process. The Department anticipates making 
this process available as close to the effective date of the proposed 
rule as possible and communicating the electronic process through 
subregulatory guidance. Second, the Department proposes that programs 
registered by the Administrator prior to the effective date of the 
final rule (existing registered apprenticeship programs) would need to 
comply with the updated requirements in subpart A within 2 years of the 
effective date of the final rule.
    The following table summarizes the proposed transition provisions 
relating to the remainder of subpart A:

              Proposed Transition Provisions for Subpart A
                    [Sec.  Sec.   29.8 Through 29.23]
------------------------------------------------------------------------
               Scenarios                   Proposed transition timeline
------------------------------------------------------------------------
Potential programs--new programs not     Effective date of the final
 previously registered by the             rule or when OA makes
 Administrator prior to the final         available an electronic
 rule's effective date.                   submission process to
                                          potential sponsors.
Existing registered apprenticeship       2 years following the effective
 programs--registered apprenticeship      date of the final rule.
 programs previously registered by the
 Administrator prior to the effective
 date of the final rule.
SAA-approved registered apprenticeship   2 years following the SAA
 programs--registered apprenticeship      coming into compliance with
 programs previously registered by an     the final rule; all programs
 SAA prior to the effective date of the   approved by SAAs after the
 final rule.                              effective date of the final
                                          rule must remain in
                                          provisional status until the
                                          SAA has determined them in
                                          compliance with the
                                          requirements of their approved
                                          State Apprenticeship Plan.
------------------------------------------------------------------------

    Proposed paragraph (b) provides an immediate effective date for 
programs not previously registered by the effective date of the final 
rule for registering programs under subpart A, when an electronic 
submission process would be available to sponsors. The Department is 
proposing this to allow OA to provide the necessary supports and 
technical assistance to potential sponsors relating to the requirements 
of this proposed rule through an electronic submission process. Such 
technical assistance could include the development of boilerplate 
standards of apprenticeship for use by sponsors, webinars on different 
aspects and requirements of the proposed rule, electronic tools to 
assist programs, and any other requirements. The Department is 
interested in any comments on the sufficiency of this time period, 
including whether this transition period is necessary, whether it is 
sufficient to allow for OA to develop the necessary supports for 
potential sponsors while also adhering to the goal of transitioning 
this provision more quickly (which may impact OA's ability to provide 
sufficient technical assistance to stakeholders).
    Proposed paragraph (c) addresses the transition timeline for 
programs previously registered by OA to comply with the requirements of 
this proposed rule. The Department anticipates significant changes 
would need to be made to program standards, apprenticeship agreements, 
and other requirements proposed in subpart A. The Department recognizes 
that established programs could need a longer transition period than 
new, potential programs, and thus it proposes a 2-year timeline for 
registered apprenticeship programs in the system prior to the effective 
date of the final rule to comply with the updated regulation. For 
example, an established program could need time to complete the 
training cycle for a cohort of apprentices under its previous standards 
before moving to update them or could need time to develop questions 
pertaining to their program in response to subregulatory guidance 
issued by the Department. The Department is interested in any comments 
regarding the appropriate length of time to transition previously 
approved programs to the enhanced quality requirements of this proposed 
rule taking into account the burden of sponsors and the goals of 
ensuring the enhancements made in this rulemaking are implemented 
throughout the National Apprenticeship System.
    The Department recognizes that occupations and registered 
apprenticeship programs established within the National Apprenticeship 
System prior to the effective date of the final rule would need to 
consider two different compliance timelines: a longer, 4-year timeline 
for ensuring their occupation meets the updated suitability 
requirements at proposed Sec.  29.7, and a 2-year timeline for ensuring 
their program standards and other program elements align with proposed 
subpart A. For example, an existing registered apprenticeship program 
would have to update its program standards within 2 years of the final 
rule's effective date, and it could also need to gather and report data 
to the Administrator regarding the subject occupation's typical wage 
profile within 4 years of the final rule's effective date. The 
Department anticipates that established programs could need significant 
time, technical assistance, or other support to align with either the 
updated standards or suitability requirements. In particular, a 
competency-based program or a hybrid program (under the existing 
training model framework) could need significant support in 
transforming their program's work process schedule to meet the 2,000-
hour on-the-job training requirement. The Department plans to extend 
opportunities to such programs to submit requests for extensions of the 
transition timeline for good cause, which would also help the 
Department identify types or trends of technical assistance issues 
throughout the implementation process. The

[[Page 3143]]

Department invites comment, particularly from stakeholders of existing 
programs, as to the feasibility and reasonableness of the proposed 
transition timelines, opportunities for requesting extensions for good 
cause, or any other potential questions or issues with respect to this 
proposed rule and the proposed transition timelines in this section.
    Paragraph (d) proposes transition provisions related to SAAs 
recognized by the Administrator as of the effective date of the 
proposed rule, the occupations they have approved as ``apprenticeable'' 
under the current rule, and the programs they have registered for 
Federal purposes under the current rule. Proposed paragraph (d) 
provides that SAAs recognized under the current rule would be 
recognized until December 31, 2026. The Department anticipates this 
would provide sufficient time for a State to make the needed changes to 
transition. State government agencies seeking continued recognition for 
Federal purposes would need to seek recognition as described in 
proposed Sec.  29.27 within that timeframe or they would lose their 
status as recognized SAAs. The Department is interested in comments 
about the timing and other relevant factors impacting previously 
recognized SAAs as they work towards complying with the requirements of 
the proposed rule. The Department is aware that States may need to 
change their apprenticeship-related laws to address the requirements in 
this proposed rule and is interested in comments regarding whether the 
proposed transition timeline provides sufficient time for those laws to 
be updated and for the recognition requirements of proposed Sec.  29.27 
to be fulfilled. The Department has an interest in building greater 
alignment in the National Apprenticeship System through these proposed 
regulations but is interested in comments that may address 
implementation challenges and timing for those States.
    Proposed paragraph (d)(1) concerns programs registered by SAAs 
prior to the approval of a State's State Apprenticeship Plan (discussed 
in detail in the section-by-section discussion at proposed Sec.  29.27 
of this NPRM). Under proposed paragraph (d)(1), SAAs must ensure that 
such programs' registration is consistent with the applicable elements 
of an approved State Apprenticeship Plan within 2 years of the date the 
State Apprenticeship Plan is approved. The Department recognizes that 
this would be a longer time period for compliance in programs 
registered by SAAs, because the Department acknowledges that SAAs would 
need to make changes to their laws to meet the requirements of this 
proposed rule and because they would be responsible for the 
registration of programs it would not be fair to hold programs 
accountable for registration in the State prior to the State making the 
needed updates to their State laws. The 2 years from approval of the 
State Apprenticeship Plan would be in alignment with the 2 years the 
Department proposes providing for programs registered by OA from the 
approval of this proposed rule. While the Department proposes providing 
this longer period for programs in SAAs to be compliant with these 
requirements, proposed paragraph (d)(1) also provides that any program 
registered after the effective date of the final rule, but before the 
State Apprenticeship Plan, would remain in provisional status until the 
program is determined by the SAA to be in compliance with the 
requirements of its State Apprenticeship Plan, which includes compliant 
laws with the requirements of proposed Sec. Sec.  29.26 and 29.27. 
Paragraph (d)(2) proposes a transition period for occupations that may 
have been determined ``apprenticeable'' by an SAA, but not by the 
Administrator. As described below in proposed Sec.  29.7, this proposed 
rule reserves the role of making determinations regarding occupational 
suitability for registered apprenticeship training (previously called 
``apprenticeability'') role exclusively for the Administrator. The 
Department is proposing a 4-year period by which those occupations 
previously approved by SAAs must be approved by the Administrator under 
proposed Sec.  29.7 in order to continue to be registered for Federal 
purposes. These timelines, and the relevant members of the regulated 
community for scenarios involving occupations or registered 
apprenticeship programs previously deemed suitable, or registered, by 
SAAs, are clarified in the tables above (see rows for ``SAA-approved 
occupations'' and ``SAA-approved registered apprenticeship programs'' 
in the tables above). The Department is interested in comments 
regarding this transition period, particularly those that weigh the 
benefits of a more aligned and consistent system against the burden on 
sponsors or SAAs to submit suitability requests under proposed Sec.  
29.7 to continue their registration.
    Paragraph (e) proposes that for State government agencies not 
previously recognized as an SAA by the Administrator, they must seek 
recognition under proposed Sec.  29.27 upon the effective date of the 
final rule.
    The following table summarizes the proposed transition periods 
related to SAAs, the occupations they have previously determined 
suitable for registered apprenticeship training, and the apprenticeship 
programs they have previously registered.

 Proposed Transition Provisions for SAAs, SAA-Approved Occupations, and
                 SAA-Registered Apprenticeship Programs
------------------------------------------------------------------------
               Scenarios                   Proposed transition timeline
------------------------------------------------------------------------
Potential SAAs not previously            The effective date of the final
 recognized by the Administrator prior    rule--new SAAs will need to
 to the effective date of the final       comply with the proposed
 rule.                                    requirements at Sec.   29.27
                                          to receive recognition as an
                                          SAA from the Administrator.
SAAs previously recognized by the        Previously recognized SAAs must
 Administrator prior to the effective     come into full compliance with
 date of the final rule.                  the updated regulations at
                                          proposed Sec.   29.27 by
                                          December 31, 2026.
SAA-approved registered apprenticeship   2 years following the SAA
 programs--registered apprenticeship      coming into compliance with
 programs previously registered by an     the final rule (2 years
 SAA prior to the effective date of the   following the approval of a
 final rule.                              State Apprenticeship Plan).
SAA-approved occupations--occupations    4 years following the effective
 deemed suitable for registered           date of the final rule.
 apprenticeship training by an SAA.
------------------------------------------------------------------------


[[Page 3144]]

B. Subpart A--Standards for Registered Apprenticeship Programs

Section 29.7--Occupations Suitable for Registered Apprenticeship
    The National Apprenticeship System is built on registering 
apprenticeship programs, and the first step to registering any program 
is determining whether it involves an occupation that is suitable for 
registered apprenticeship training. For this reason, determining 
whether an occupation is suitable for registered apprenticeship 
training--what OA used to describe as an ``apprenticeable occupation'' 
determination--is a critical responsibility within the National 
Apprenticeship System. An occupation's suitability for registered 
apprenticeship training is inextricably linked with the requirements 
and purpose of apprenticeship itself. The primary purpose of a 
registered apprenticeship program is to support industry's needs for 
hiring and training a skilled and diverse workforce and preparing 
apprentices for successful careers by producing individuals who are 
fully proficient in their chosen occupation. The Department believes 
the criteria established in this section are critical for achieving 
these goals.
    To have a successful career and achieve full proficiency requires a 
degree of rigor that distinguishes apprenticeship from other forms of 
training and work-based learning and goes beyond the acquisition of 
short-term credentials. These consistent factors across a range of 
industries and occupations also provides an indicator of quality and 
results for all stakeholders. This is important for building a National 
Apprenticeship System wherein apprentices receive training and 
instruction to prepare them for successful, sustainable careers within 
a quality career path and skills that are portable across an industry.
    Determinations of an occupation's suitability for registered 
apprenticeship training is also a central consideration in the 
Department's efforts to expand registered apprenticeship to new 
industries and sectors. The expansion of registered apprenticeship is 
an ongoing, driving focus for the Department. However, expansion 
efforts must balance flexibility and quality control to ensure that any 
potential new programs have room within the regulatory framework to 
adapt the model to their industry and occupation, while also ensuring 
that potential apprentices seeking to enter into a program can expect 
to receive quality training that is transferrable throughout an 
industry and applicable and beneficial throughout their careers.
    Under the current regulatory framework, an occupation is considered 
suitable for registered apprenticeship training if it meets four 
distinct criteria set forth at current 29 CFR 29.4. Occupations 
suitable for registered apprenticeship training (``apprenticeable'' 
occupation) must: (1) involve job skills customarily acquired through 
on-the-job training; (2) be ``clearly identifiable and recognizable'' 
in an industry; (3) involve the progressive acquisition of skills and 
knowledge which would require at least 2,000 hours of on-the-job 
training; and (4) require related instruction in addition to the on-
the-job training component.
    The Department has determined, based on the successful functioning 
of the National Apprenticeship System, consideration of national and 
international apprenticeship practices,\68\ and input from industries 
where registered apprenticeship has successfully led to the development 
of a skilled workforce that meets industries' evolving needs, that a 
quality registered apprenticeship program must involve at least 1 year 
of full-time training or its equivalent in the subject occupation. 
Accordingly, in this revision to the registered apprenticeship 
regulations at proposed 29 CFR 29.7(b)(4), the Department proposes to 
retain the existing requirement from 29 CFR 29.4(c) that states 
``apprenticeable'' occupations must involve the progressive attainment 
of skills and knowledge over the course of ``at least 2,000 hours'' of 
on-the-job training. This time period equates to approximately 1 year 
of full-time work,\69\ and the Department has determined that in order 
for an occupation to be suitable for registered apprenticeship training 
and eligible for registration within the National Apprenticeship 
System, the training regimen for that occupation must meet this minimum 
duration requirement. The Department views this minimum duration 
requirement as an important hallmark of a quality registered 
apprenticeship program that effectively imparts occupational 
proficiency for apprentices.
---------------------------------------------------------------------------

    \68\ Apprenticeships in Canada ordinarily are between 2 and 5 
years in duration. See Government of Canada, ``How to become an 
apprentice,'' https://www.canada.ca/en/services/jobs/training/support-skilled-trades-apprentices/become-apprentice.html (last 
updated Mar. 31, 2023). Apprenticeships in Australia are ordinarily 
between 1 and 4 years in duration. See Fair Work Ombudsman of the 
Australian Government, ``Guide to Starting an Apprenticeship,'' June 
2023, at 2, https://www.fairwork.gov.au/sites/default/files/migration/712/guide-to-starting-an-apprenticeship.pdf. 
Apprenticeships in England are ordinarily between 1 and 5 years in 
duration and cannot be less than 1 year in duration. See Andrew 
Powell, ``Apprenticeships Policy in England,'' House of Commons 
Library, Jan. 20, 2023, at 10, https://researchbriefings.files.parliament.uk/documents/SN03052/SN03052.pdf, 
as well as the information available at https://www.gov.uk/employing-an-apprentice (last visited July 20, 2023).
    \69\ Based on a 40-hour workweek and 50 weeks of full-time work 
in a year.
---------------------------------------------------------------------------

    As discussed throughout, the Department recognizes the importance 
of ensuring that apprentices who complete a registered apprenticeship 
program are proficient in the subject occupation. The 2023 Quality 
Apprenticeships Recommendation of the ILO advises Member States to 
consider the scope of competencies required for an occupation, as well 
as the duration of the apprenticeship term that would be required to 
impart such competencies, in making determinations about an 
occupation's suitability for registered apprenticeship training.\70\ 
Based on its experience and in its work with its international peers, 
the Department views the 2,000-hour minimum duration requirement as an 
important minimum quality assurance for employers that hire apprentices 
who have completed registered apprenticeship programs. The Department 
intends for the National Apprenticeship System to consistently produce 
cohorts of workers employed in skilled careers that employers are eager 
to hire, that are competent in the individual job tasks and skills that 
constitute the full scope of work for an occupation, and that are fully 
proficient in the covered occupation. Before assigning key aspects of 
their business operations to new workers, employers must have 
confidence that they can rely on such workers to perform tasks safely, 
accurately, efficiently, and in a timely manner such that the work 
rendered contributes to a profitable enterprise. The Department has 
determined that the 2,000-hour minimum duration requirement is critical 
for imparting the necessary safety training, competency development, 
and strategies for the efficient completion of tasks to apprentices. 
For example, programs registered for the electrician occupation 
typically have a time-based requirement for an apprentice to achieve 
occupational proficiency in no less than 8,000 hours, or approximately 
4 years.
---------------------------------------------------------------------------

    \70\ ILO, ``Quality Apprenticeships Recommendation, 2023'' (ILO 
Recommendation No. 208), Conclusion 9(c), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
---------------------------------------------------------------------------

    In order to become proficient in the subject occupation, 
apprentices must learn the appropriate safety techniques

[[Page 3145]]

and technical procedures associated with an occupation and must 
continuously apply such techniques and procedures in order to strike 
the appropriate balance between safety, accuracy, and efficiency. This 
learning and continuous application of safety measures, skills, and 
techniques takes time and resources, and such an investment of time and 
resources is critical to realizing the benefits of quality 
apprenticeship training for both employers and workers.
    Further, the Department views the 2,000-hour minimum duration 
requirement as an important protection for apprentices, and in line 
with the Department's statutory obligation to protect the welfare of 
apprentices. Such a minimum duration requirement is important for the 
protection of apprentices' welfare in three important respects--
acquiring occupational proficiency on-the-job, ensuring the delivery of 
adequate and proper safety training to new and inexperienced workers 
(particularly in higher hazard occupations), and demonstrating success 
in competency acquisition through supervised on-the-job training. 
Approximately 1 year of full-time training is necessary to establish a 
track record of occupational proficiency, demonstrated understanding of 
safe occupational and workplace practices and techniques, and 
experience in learning and achieving competencies on-the-job under 
appropriate supervision. With respect to apprenticeships in hazardous 
occupations, safety training does not solely involve teaching 
apprentices the appropriate techniques for the safe and secure 
operation of a piece of machinery or interaction with a known hazard. 
In order for apprentices to operate in a safe environment, they must 
also be trained to recognize the signs of a potential hazard, to be 
proactive in applying safety measures and precautions, and to be 
diligent and aware on the job.
    Registered apprenticeship is ultimately meant to transform 
apprentices into full-time, proficient, and highly effective employees. 
In a registered apprenticeship program, apprentices learn job skills 
and techniques that are portable within an occupation and across 
employers hiring for that occupation. Completing a quality registered 
apprenticeship program should firmly place apprentices on a pathway to 
a stable, quality career. Conversely, if a training program only 
prepares an apprentice to enter into employment with a single employer, 
with little opportunity for vertical or horizontal career mobility, the 
benefits of the training program are limited for both the trainee and 
any prospective employer. As with safety training, developing the full 
set of occupational competencies necessary to become proficient in the 
occupation (i.e., to transform from an apprentice to a fully proficient 
skilled worker in the occupation) takes time, continuous practice and 
application of learned skills, and periodic assessments by program 
operators to confirm that apprentices are learning all the skills 
necessary for immediate and future career opportunities. The 
Department's proposal is ultimately based on its experience operating 
the National Apprenticeship System and consideration of the minimum 
program requirements for demonstrated occupational proficiency in other 
countries with highly sophisticated apprenticeship systems, such as 
Canada, Switzerland, Germany, the United Kingdom, and Austria.
    The Department is interested in any public comments on a minimum 
duration of the training period for quality registered apprenticeship 
programs, and whether the longstanding quality hallmark of a 2,000-
hour, yearlong training program works well for existing stakeholders, 
and whether this period should be shorter or longer. In particular, for 
comments on the 2,000-hour minimum duration requirement, the Department 
is interested in reviewing data, statistics, and practical examples 
from existing workforce training programs (including existing 
registered apprenticeship programs) that illustrate or inform the 
merits of establishing a minimum duration of training in terms of 
overall training program quality.
    Relatedly, apprentices in most registered apprenticeship programs 
currently operating within the National Apprenticeship System receive 
at least 144 hours (on average per year, or per 2,000 hours, of on-the-
job training) of related instruction to complement the on-the-job 
training elements of their program. Such related instruction--also 
referred to as ``classroom'' learning or by other terms that reflects 
the academic nature of related instruction in the apprenticeship 
context--enables apprentices to learn the theoretical concepts that 
underpin the work performed in the subject occupation and supplements 
their understanding of the job skills and competencies they acquire 
through on-the-job training. The Department views related instruction 
as a critical element of quality registered apprenticeship programs 
that is essential for the ultimate success of the apprentice in their 
transformation from an apprentice into a fully proficient worker in the 
occupation. While 144 hours of related instruction is only a minimum 
recommendation under the current regulatory framework at 29 CFR 
29.5(b)(4), because of its importance to the future success of an 
apprentice, at proposed Sec.  29.7(b)(4), the Department is proposing 
to require that an occupation's proposed work process schedule include 
at least 144 hours of related instruction, on average, per 2,000 hours 
of on-the-job training, in order for the Department to determine that 
the occupation is suitable for registered apprenticeship training. For 
example, under this proposal a submission of an occupation for 4,000 
hours of on-the-job training would need to provide a related 
instruction outline that includes at least 288 hours of related 
instruction to maintain the 144-hour average requirement. Because this 
applies at 2,000-hour on-the-job training intervals, a 3,000-hour on-
the-job training program would only be required to provide at least 144 
related instruction hours.
    The Department believes that proposing the establishment of a 
uniform minimum requirement of 144 hours of organized, related 
instruction in technical subjects related to the covered occupation--
rather than merely referencing such a quantitative instructional 
standard as a recommendation, as the current regulation at 29 CFR 
29.5(b)(4) does--accords with the usual instructional standard of 144 
hours of related instruction for each year of on-the-job training that 
is, with very few exceptions, utilized by registered apprenticeship 
programs across a wide range of occupations in their standards of 
apprenticeship. The 144-hour related instruction standard posits a 
scenario where an apprentice attends such classroom instruction for 4 
hours per week over the course of a 36-week period (4 x 36 = 144), a 
period that coincides with the term of instruction in a typical school 
year calendar. The Department takes the view that it is essential for 
apprentices to have a broad educational and theoretical component to 
their training as a foundation of knowledge to help them adapt to 
changes in the market and to maintain currency with occupation 
competencies. Hence, the Department believes that the establishment of 
a uniform 144-hour related instruction requirement would help to ensure 
that apprentices receive a sufficient number of hours of classroom 
instruction to supplement and reinforce the practical skills obtained 
during the on-the-job training component of the apprenticeship,

[[Page 3146]]

thereby ensuring the attainment of the requisite occupational 
competencies at the conclusion of the apprenticeship.
    In most instances, program sponsors require that an apprentice 
fulfill the related instruction component of the apprenticeship during 
after-work hours. This approach is both realistic and sensible, given 
that the average age of apprentices in the United States is 
approximately 29 years old \71\--a considerably older age cohort than 
is found in the national apprenticeship systems of the European Union, 
where an average age under the age of 20 is not uncommon.\72\ As a 
practical matter, the prevalence of an older apprenticeship age cohort 
in the United States means that many such apprentices may be required 
to balance competing work-life demands, such as holding down a second 
job or providing parental care for young children. Additionally, while 
many apprenticeship sponsors pay for or reimburse apprentices for the 
related instruction component of an apprenticeship, some sponsors may 
require an apprentice to absorb the costs of such classroom 
instruction. Because of the widespread prevalence of such outside 
obligations and economic burdens among older apprentices, the 
Department believes that the retention of the usual 144-hour 
quantitative standard for related instruction for each 2,000 hours of 
on-the-job-training in this proposal would be sensible, and that any 
significant increase in the duration of such instruction could prove 
unduly burdensome to those U.S. apprentices who must navigate such 
challenges.
---------------------------------------------------------------------------

    \71\ Taylor White, ``Young Adults in Registered Apprenticeship: 
What New Data Can and Cannot Tell Us,'' New America, Sept. 20, 2022, 
https://www.newamerica.org/education-policy/edcentral/young-adults-in-registered-apprenticeship-what-new-data-can-and-cannot-tell-us/.
    \72\ Briefing Note, ``Apprenticeships for Adults,'' European 
Centre for the Development of Vocational Training, June 2020, 
https://www.cedefop.europa.eu/files/9147_en.pdf.
---------------------------------------------------------------------------

    The Department is interested in comments to this approach, 
including any alternatives such as a minimum ratio of 144 hours of 
related instruction per 2,000 that would be applied to the total hours. 
In the example of a 3,000-hour on-the-job training program, the ratio 
of 144 related instruction hours to 2,000 hours of on-the-job training 
would equate to a floor of 216 hours of related instruction. The 
existing requirement for apprenticeability only requires that there 
must be related instruction to supplement the on-the-job training, 
without setting a minimum number of hours.
    The Department seeks comments on the inclusion of the related 
instruction hours as part of the determination of suitability, 
particularly those that may recommend no criteria be used in the 
occupational eligibility process and how the Department could still 
ensure more occupational consistency and integrity in its training of 
apprentices. The Department is also interested in comments about a 
minimum average as part of the suitability process, particularly 
whether to apply it at the 2,000-hour level or if an alternative method 
of scaling an increase in related instruction consistent with an 
increase in on-the-job training hours should be considered. In line 
with the Department's guiding principle to ensure registered 
apprenticeship programs are responsive to employer needs, the 
Department is proposing these minimum standards for consideration by 
the regulated community in this NPRM and is interested in feedback from 
all apprenticeship stakeholders regarding the proposed minimum 
standards for occupational suitability in this proposal.
    In addition to the minimum standards proposed in this section, an 
applicant submitting a suitability request could submit an occupation, 
work process schedule, and related instruction outline that exceeds the 
minimum standards for the purposes of setting an industry standard for 
the suitable occupation. For example, an electrician apprenticeship 
program could submit an occupational request for 8,000 on-the-job 
training hours as the industry standard at proposed paragraph (c). At 
proposed Sec.  29.7(d), the Administrator would solicit public comment 
to assist in evaluating whether submissions meet the requirements of 
proposed paragraph (c). Additionally, the Administrator could consider 
other information such as industry or occupational data to assist in 
making any determinations. An example could include the utilization of 
the O*NET system,\73\ which includes national and localized data. Such 
requests for comment and information may include an opportunity for 
industry leaders, programs, and other members of the public to comment 
on the number of hours proposed for the occupation's industry standard, 
including feedback that it should be higher. Due to its statutory 
obligation to protect the welfare of apprentices, the Department's 
strong view is that programs training apprentices to perform an 
occupation must meet some minimum parameters related to on-the-job 
training and related instruction, which may also be higher based on an 
industry standard for that occupation. Such consistency is important 
for ensuring that all apprentices attain proficiency in an occupation 
through their participation in a registered apprenticeship program, an 
important goal and protection for apprentices within the National 
Apprenticeship System that ensures they enjoy labor market mobility in 
their careers (both with employers associated with the program, and 
other employers hiring workers in that occupation).
---------------------------------------------------------------------------

    \73\ DOL, O*NET OnLine, https://www.onetonline.org/ (last 
updated Oct. 3, 2023).
---------------------------------------------------------------------------

    The Department recognizes that, in the United States, many jobs do 
not require a year of paid, full-time, work-based learning, nor a 
significant investment of time spent providing related instruction to 
workers. Ultimately, registered apprenticeship training is not suitable 
for all occupations, including many occupations that are essential for 
the healthy functioning of the national economy. Because the Department 
must meet its statutory obligation to protect apprentices' welfare in 
overseeing the National Apprenticeship System, it must consider 
programs' potential effectiveness for preparing apprentices to enter 
into stable, rewarding careers. As such, determining an occupation's 
suitability for registered apprenticeship training is central and 
definitional to the registered apprenticeship model and quality 
assurance throughout the National Apprenticeship System. This more 
uniform approach to suitability minimizes the possibility that 
individual programs provide vastly different employment and training 
experiences. As discussed above, these minimum standards are designed 
to ensure a minimum framework for determining the suitability of 
occupations for use in registered apprenticeship programs, acquiring 
skills and competencies acquired, and the type and amount of related 
instruction, as well as common expectations on how much on-the-job 
training is necessary for a typical apprentice to achieve proficiency. 
Accordingly, the Department proposes to carry forward the existing 
2,000-hour minimum duration of on-the-job training requirement 
criterion for an occupation's suitability for registered apprenticeship 
training, and to require, rather than recommend, that an occupation 
provide at least 144 hours of related instruction, on average, per 
2,000 hours of on-the-job training.
    The Department has further determined that the existing regulatory 
framework on ``apprenticeability'' needs to be modernized and 
strengthened in order to preserve and enhance quality, maintain and 
build both registered apprenticeship program and

[[Page 3147]]

occupational consistency, and ensure apprentice mobility throughout a 
national system of quality apprenticeships. Many employers with 
multistate or nationwide operations would benefit from a registered 
apprenticeship program to train their future workforce and address 
their talent needs. Such employers and apprentices would benefit from a 
clear, national, uniform set of regulatory parameters related to the 
identification of occupations that are suitable for registered 
apprenticeship training. For an employer operating in multiple States 
or on a nationwide basis, the potential for an occupation to ultimately 
be determined to be suitable for registered apprenticeship training in 
one State, but not in another, would present challenges in planning and 
operations for multistate employers and would dilute the effectiveness 
of registered apprenticeship in addressing workforce needs. For 
example, the current approach does not require any showing that a 
particular occupation is recognized throughout an industry as a stand-
alone occupation, nor does it require a general understanding of the 
skills and time necessary to obtain proficiency. This proposed approach 
would establish a more uniform process and uniform results, reducing 
uncertainty, preventing fragmentation of workforce training operations, 
and enhancing the attractiveness and potential effectiveness of a 
registered apprenticeship program for a nationwide or multistate 
employer.
    The ACA's 2022 Interim Report included recommendations related to 
the ``apprenticeability'' framework to complement efforts to expand 
registered apprenticeship, including a recommendation from the Industry 
Engagement in New and Emerging Sectors ACA subcommittee for the 
Department to have sole responsibility for designating occupations as 
suitable for registered apprenticeship training.\74\ The ACA 
recommended that the criteria for determining an occupation's 
suitability for registered apprenticeship training should be universal 
for all potential programs--that is, a potential program sponsor 
seeking recognition for an occupation in one State should not face a 
different set of circumstances in seeking to register a program in 
other States or nationwide. The Department concurs with these 
recommendations to ensure a truly national system of occupations 
eligible for registration for Federal purposes based on established, 
universal criteria, which the Department views as key principles to 
advance the goals of program transparency, enhanced portability of 
programs and credentials, equity among programs and participating 
apprentices, and program quality and integrity. Accordingly, the 
Department proposes several changes to the process for determining an 
occupation's suitability for registered apprenticeship, as further 
discussed below.
---------------------------------------------------------------------------

    \74\ ACA, ``Interim Report to the Secretary of Labor,'' May 16, 
2022, at 28, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
---------------------------------------------------------------------------

    Another consideration to guide expansion and quality oversight of 
the National Apprenticeship System, arising from the Department's 
ongoing consultations with registered apprenticeship stakeholders, 
including the ACA and representatives from industries where registered 
apprenticeship is both new and well-established, is striking the 
appropriate balance between expansion of the registered apprenticeship 
model and the impact of any change on established programs. The 
proposed regulation would set the minimum occupational standard by 
which an occupation may be determined suitable for registered 
apprenticeship and provide for the input of industry to set higher 
minimum standards for on-the-job training at proposed Sec.  29.7(d). 
The minimum standard exists in the current regulation at 29 CFR 
29.4(c), which provides for both the 2,000-hour minimum and that it be 
in accordance with the ``industry standard for the occupation.'' For 
example, an established program may have a set of standards of 
apprenticeship that exceed the minimum 2,000-hour on-the-job training 
requirements in the existing regulation based on the ``industry 
standard for the occupation.'' This industry standard is not imposed by 
OA, but rather is set through the apprenticeship suitability process. 
In this example, an industry standard for an occupation may be the 
equivalent of 3 full-time years of training (e.g., 6,000 hours of on-
the-job training, well above the minimum requirement of 2,000 hours for 
a time-based program under the existing regulation). If a new program 
enters the system in the same occupation and submits standards of 
apprenticeship that are significantly lower than those associated with 
the established program, such as only requiring the minimum 2,000 hours 
of on-the-job training, the established program is not in alignment 
with the industry standard for the occupation. A departure this 
significant likely indicates an entirely separate occupation 
potentially only training in a subset of the skills required or outside 
of an industry norm for an apprentice to achieve the same degree of 
proficiency. The Department would have concerns that an existing 
program's quality standards would be undercut by the introduction of a 
new, less rigorous program in the same occupation. These concepts about 
maintaining and enhancing both a minimum floor for any occupation to be 
eligible for a registered apprenticeship program, and potentially a 
higher floor based on industry standards, help to ensure greater 
consistency both in the skill acquisition and occupational proficiency 
of apprentices. The introduction of a new, less rigorous program also 
would raise concerns in the marketplace where employers may be 
competing for talented workers and would also be eligible for potential 
Federal, State, and local benefits associated with employing 
apprentices in a registered apprenticeship program. Maintaining and 
building on both of these concepts is critical to avoid a ``race to the 
bottom'' and to avoid incentivizing less skilled labor, less safe 
workplaces, and potentially lower wages for workers in any particular 
occupation. Ultimately, OA seeks to preserve and enhance the 
established level of quality for all registered apprenticeship programs 
in the occupations that have been determined suitable for registered 
apprenticeship training within the National Apprenticeship System, and 
to maintain that standard of quality going forward. The ACA framed this 
potential issue as ``splintering'' and discussed it from two different 
perspectives--the potential for recognition of an occupation to detract 
from the successful operation of established programs for very similar 
occupations, and the ``excessive partitioning'' of an occupation into 
overly specific job skill sets.
    The ACA identified these potential ``splintering'' issues in its 
2022 Interim Report,\75\ and proposed addressing the issues related to 
splintering, in part, by leveraging labor data, such as industry data 
from DOL's O*NET and the DOL's Bureau of Labor Statistics (BLS), to 
inform expansion efforts. The Department agrees that the issues 
identified by the ACA are worth considering as it pursues efforts to 
expand and strengthen the National Apprenticeship System and has 
determined that updates to strengthen the regulatory framework for 
determining an occupation's suitability

[[Page 3148]]

for registered apprenticeship training are necessary to facilitate 
expansion efficiently and without adverse impacts to the existing, 
successful National Apprenticeship System. Accordingly, the Department 
proposes to create an updated and expanded provision in the part 29 
regulations, discussed in further detail below.
---------------------------------------------------------------------------

    \75\ ACA, ``Interim Report to the Secretary of Labor,'' May 16, 
2022, at 15, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
---------------------------------------------------------------------------

    Proposed Sec.  29.7 would make several significant changes to 
update key terminology to more accurately describe this important first 
step in creating a registered apprenticeship program. The proposal 
would replace the term ``apprenticeability'' with the term 
``suitability,'' and describes the process that OA would use to 
determine if an occupation is suitable for registered apprenticeship 
training. Proposed Sec.  29.7 would also implement the ACA's 
recommendation to avoid ``splintering'' \76\ within occupations. The 
Department believes that the changes to existing Sec.  29.4 would 
ensure that completing a registered apprenticeship program places 
apprentices on a pathway to sustainable careers with a fair opportunity 
for career advancement and economic mobility, discussed in more detail 
below. The Department also proposes that if no sponsor has registered a 
program in a given occupation for a number of years, OA may, at its 
discretion, rescind an existing apprenticeability or suitability 
determination.
---------------------------------------------------------------------------

    \76\ See the recommendation from the ACA's Modernization 
subcommittee. ACA, ``Interim Report to the Secretary of Labor,'' May 
16, 2022, at 14, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
---------------------------------------------------------------------------

    Proposed paragraph (a) explains that an occupation determined to be 
suitable for registered apprenticeship would be eligible for local 
registration by any Registration Agency. The reference to local 
registration is intended to clarify that while a positive suitability 
determination would be the first step for registration of National 
Program Standards for Apprenticeship or National Guidelines for 
Apprenticeship Standards, such registration would require sponsors to 
satisfy the additional criteria in proposed Sec. Sec.  29.14 and 29.15 
in this part, respectively.
    The 2008 final rule did not definitively state whether SAAs have 
the authority to approve occupations for Federal purposes. This lack of 
clarity has created several problems, including ambiguity around 
whether occupations approved by SAAs are eligible for Federal purposes 
as defined in proposed Sec.  29.2. Some States have delegated 
apprenticeability (suitability) determinations to non-governmental 
advisory boards. In addition, there are different applications of the 
regulatory criteria in approving occupations that create inconsistency 
in both the identification of industry recognition of an occupation and 
the minimum quality standards associated with such occupation. This has 
created planning and operational challenges for national employers 
seeking to establish workforce training programs through registered 
apprenticeship in multiple States and complicates the Department's 
planning and execution of targeted efforts to expand registered 
apprenticeship's footprint nationwide. To address these issues and 
clarify who is able to fulfill this key duty, proposed paragraph (a) 
states that the Administrator would have the sole discretion to 
determine whether an occupation is suitable for registered 
apprenticeship. This would apply to States where OA serves as the 
Registration Agency, as well as States where SAAs serve as Registration 
Agencies.
    In pursuing a national approach to making determinations about an 
occupation's suitability for registered apprenticeship training, the 
Department seeks to maximize the impact of Federal benefits (such as 
the disbursement of investments, the availability of tax credits 
available under the IRA, prevailing wage considerations for apprentices 
under the Davis-Bacon and related Acts, resources providing support to 
apprentices such as WIOA, and uniformity in administrative and 
oversight practices related to registered apprenticeship) throughout 
the system. The Department considers it critical that suitability 
determinations be made by OA to maintain consistency across the 
National Apprenticeship System so that different States do not make 
substantially different suitability determinations. In addition, 
centralized suitability determinations would ensure that they can be 
made with the benefit of conferring with industry leaders across the 
country, and, once occupations are deemed suitable for apprenticeship, 
they could be registered across the country. Moreover, given the role 
and increasing Federal benefits associated with registration for 
Federal purposes, OA seeks to avoid situations in which the same 
occupation would be ineligible for registration in some States but 
eligible for registration and Federal benefits in other States.
    Under this proposed rule, SAAs would be able to submit suitability 
applications to the Department for determination, including for those 
occupations they have previously approved but OA has not approved. The 
Department acknowledges that its decisions could impact receipt of 
State benefits conferred to employers, organizations, or other 
apprenticeship stakeholders.\77\ Under this proposed rule, the 
Department would consider any such implications when a State submits 
suitability applications for previously recognized occupations to OA 
and would prioritize avoiding any adverse impacts to established 
programs.
---------------------------------------------------------------------------

    \77\ For example, many States offer tax credits for businesses 
that hire apprentices from approved registered apprenticeship 
programs. For a list of such programs by State, see OA, ``State Tax 
Credits and Tuition Support,'' https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/state-tax-credits-and-tuition-support (last visited July 20, 2023).
---------------------------------------------------------------------------

    The Department is interested in comments about this approach, or 
any alternatives, such as whether States should formally have the 
authority to approve occupations for Federal purposes within their 
State, or an additional option where an SAA could apply to OA for 
approval of an occupation for Federal purposes specific to that State. 
The Department is particularly interested in any comments on how this 
approach may impact reciprocity with other States or OA, the 
transferability and portability of a program that is approved for 
Federal purposes exclusively in that State, and what criteria the 
Department should consider when approving and implementing the 
determination that an occupation is suitable for ``Federal purposes'' 
(as described in Sec.  29.2 of this proposed rule) specific to a State. 
The Department considered another alternative approach to revising the 
regulations for making suitability determinations wherein occupations 
could be approved for Federal purposes as ``regional'' occupations 
where appropriate (for example, an occupation that is prevalent in a 
State or region of States, but that otherwise does not have a 
nationwide footprint), and invites comments on this and all other 
regulatory alternatives, including transferability, criteria, 
implementation, or any other alternative approaches to the suitability 
process.
    Proposed paragraph (b) would establish the minimum criteria that 
must be met for an occupation to be determined to be suitable for 
registered apprenticeship.
    Proposed Sec.  29.7(b)(1) would replace existing Sec.  29.4(b) with 
the additional clarification that to be suitable for registered 
apprenticeship, the occupation must be clearly identified and commonly 
recognized as a stand-alone and distinct occupation. The added terms 
are intended to be

[[Page 3149]]

responsive to the ACA's Interim Recommendation to avoid 
``splintering,'' which the ACA described as occurring when an 
occupation is too specific or specialized within an occupational 
subset. This proposal is intended to prevent a favorable suitability 
determination where an occupation may be clearly identified and 
commonly recognized yet be so similar to all or parts of an existing 
occupation that recognizing both occupations could undermine the labor 
mobility, transferability, and career prospects of apprentices. For 
example, if a sponsor were to submit a suitability determination 
request for an occupation that replicates many, but not all, of the 
work processes in an occupation previously determined to be suitable 
for registered apprenticeship, the Administrator could determine that 
the occupation in question is not stand-alone and distinct and thus not 
suitable for registered apprenticeship. The Department has determined 
that avoiding the ``splintering'' of occupations into occupational 
subsets is critical for ensuring that completing apprentices possess 
portable credentials that are widely recognized by employers in the 
apprentice's industry. If the occupation were determined to be 
suitable, then the lesser standard it represents would lead to a less 
skilled apprentice who would be less able to find and retain the type 
of work the registered apprenticeship program is designed to provide to 
apprentices. The Department remains committed to working with industry 
to inform suitability determinations and invites public comments on the 
Department's proposed approach to avoid splintering occupations, 
potential examples of overly specific occupational subsets, or any 
other elements of the proposed process for making determinations about 
occupations' suitability for registered apprenticeship training. If OA 
concludes that a new occupation cannot be recognized as suitable for 
apprenticeship because of proposed Sec.  29.7(b)(1), OA would inform 
the applicant of already suitable occupations to facilitate the 
registration of a program using an already suitable occupation.
    Proposed Sec.  29.7(b)(2) is new and would require applicants for a 
suitability determination to demonstrate that the occupation under 
consideration leads to a sustainable career. A sustainable career is 
one that places apprentices who complete their program on a trajectory 
to a sustainable career, one that provides a fair opportunity for 
career advancement and economic mobility. This proposed requirement is 
responsive to the ACA's interim recommendation that wages be taken into 
consideration in the process of determining which occupations may be 
suitable for registered apprenticeship. The proposed requirement is not 
intended to limit the number of programs or apprentices in occupations 
that have slower-than-average projected growth rates or estimated 
future job openings. The applicant may also provide supplemental 
information demonstrating that the occupation is associated with a 
career ladder or a ``stackable'' set of occupational credentials in 
that occupation to demonstrate the occupation's opportunity for career 
advancement and economic mobility.
    The Department provides the following scenarios to illustrate the 
options available to applicants proposing a new occupation for a 
suitability determination. An applicant could propose a new occupation, 
such as Technologist I (term of 1 year), that upon completion has a 
compensation profile for a journeywork of $25,000 per year. An 
applicant could also propose a new occupation, such as Technologist II 
(term of 2 years), that has a compensation profile for a journeyworker 
of $70,000 per year. Finally, an applicant could propose a 
``stackable'' apprenticeship model for Technologist II (term of 2 
years) but include an interim credential at Year 1 to convey competency 
at the Technologist I level.
    The Department is interested in hearing views on this approach, 
including perspectives on whether applying a more specific wage 
standard as part of the suitability determination process is 
appropriate, or if alternative standards or approaches should be 
considered, balanced against the goal of expanding apprenticeships 
models into new industries and building career ladders to higher 
quality jobs. In addition, the Department invites comments on what 
criteria should be taken into account to determine whether an 
occupation leads to sustainable careers.
    Proposed Sec.  29.7(b)(3) and (4) would replace existing Sec.  
29.4(a) and (c) and would require that a structured registered 
apprenticeship program provide the skills, techniques, and competencies 
required to attain proficiency in the occupation. However, proposed 
Sec.  29.7(b)(3) would remove the qualifier of skills being ``manual, 
mechanical or technical'' as those terms are linked specifically to 
skilled trades and are not as broadly applicable to other industries 
expanding into developing registered apprenticeship models. The 
requirement that skills attainment be progressive would also be deleted 
in favor of the requirement of skill acquisition leading to proficiency 
in the occupation, as would be required by proposed Sec.  29.7(b)(3). 
Proposed Sec.  29.7(b)(4) would retain the requirement that at least 
2,000 hours of on-the-job training be necessary to achieve proficiency 
in the occupation. As explained above, this 2,000-hour requirement is 
intended to capture roughly 1 year of full-time on-the-job training. 
The requirement is intended to distinguish between other forms of work-
based learning, such as programs that only support on-the-job training, 
incumbent worker training, and other shorter certificate programs on 
the one hand, and proficiency in an occupation that would afford 
apprentices a lifelong career, on the other. Notably, the 2,000-hour 
requirement would apply specifically to on-the-job training--work 
process schedules that would last a calendar year or more but that 
would not require 2,000 hours of on-the-job training would not satisfy 
this requirement. The fact that an individual applicant for a 
suitability determination would require 2,000 hours of on-the-job 
training would not be dispositive in OA's analysis because OA would 
look to the number of on-the-job training hours typically required to 
achieve proficiency in the occupation. In addition, proposed Sec.  
29.7(b)(4) would require an industry standard of not less than a 
minimum average of 144 hours of off-the-job, related instruction for 
every 2,000 hours of on-the-job training in order to obtain proficiency 
in the occupation.
    Proposed Sec.  29.7(c) is new and explains the information that 
would be submitted electronically to the Administrator in support of a 
suitability determination request. The Department believes that 
specifying the documentation and explanation necessary for the 
Administrator to reach a new suitability determination would assist 
applicants who may be unfamiliar with this process.
    Proposed Sec.  29.7(c)(1) explains that an applicant for a 
suitability determination would need to submit sufficient documentation 
to demonstrate that the elements in proposed Sec.  29.7(b)(1) through 
(4) are satisfied.
    Proposed Sec.  29.7(c)(2) would require that the applicant provide 
a work process schedule as well as an explanation of how the components 
of the work process schedule are appropriately structured such that 
completing apprentices will have achieved proficiency in the 
occupation. As part of the suitability determination,

[[Page 3150]]

the work process schedule associated with the occupation submitted in 
this section would be the work process schedule in which sponsors must 
substantially align their standards of apprenticeship under proposed 
Sec.  29.8.
    Proposed Sec.  29.7(c)(3) would require an applicant for a 
suitability determination to document the number of hours required to 
achieve proficiency in an occupation. Although the minimum number of 
hours would always be 2,000 as established by proposed Sec.  29.7(b)(4) 
above, some occupations could require more than 2,000 hours of on-the-
job training to achieve proficiency. For example, an industry standard 
term might be set at 8,000 hours for certain occupations. If an 8,000-
hour term were to be set for an occupation through this process, future 
sponsors' work process schedules and related instruction outlines would 
need to substantially align with the work process schedule and related 
instruction outline approved under proposed Sec.  29.7. If a work 
process schedule and related instruction outline submitted for 
registration under proposed Sec.  29.10 do not substantially align, for 
example because the required hours of on-the-job training are 
substantially fewer, then a new suitability determination would be 
required as provided for in proposed Sec.  29.10(b)(1). The Department 
acknowledges that an industry standard may change over time given 
changes in technology or other factors, which is addressed through 
proposed paragraph (h) of this section.
    Proposed Sec.  29.7(c)(4) is new and would require a related 
instruction outline that describes the proposed curriculum. The number 
of hours of related instruction would need to be at least an average of 
144 hours for every 2,000 hours of on-the-job training. The number of 
related instruction hours would not need to be evenly distributed 
during the term of the apprenticeship as long as this average were 
achieved.
    Proposed Sec.  29.7(c)(5) is new and would require an applicant for 
a suitability determination to disclose if there are any interim 
credentials, recognized postsecondary credentials, or license 
requirements for an apprentice to obtain during their registered 
apprenticeship program to work in that occupation. This is important to 
ensure OA can validate those submissions through a process to ensure 
programs registered in an approved occupation provide the industry-
validated credentials required for the occupation. The Department notes 
that programs may provide interim credentials to apprentices, which can 
signify the attainment of industry-recognized competencies; however, 
under this provision applicants would need to disclose required 
credentials needed to practice an occupation in a given State. For 
instance, some occupations, such as a teacher, nurse, or electrician, 
require a license in every State. This criterion would help provide 
more clarity to sponsors seeking to register programs regarding what 
credentials they must offer in a program, as well as what credentials a 
program may offer to apprentices.
    As described earlier, proposed Sec.  29.7(d) explains that the 
Administrator would solicit public comment for at least 30 days on all 
occupational suitability determinations. This addition would also 
ensure feedback from industry leaders is considered, while also 
allowing for additional registered apprenticeship and industry experts 
to provide input into the occupational and work process schedule 
design. The Administrator would render a determination within 90 
calendar days from receiving a completed application, though this time 
period could be extended by notifying the applicant that more time is 
needed to reach a determination. Proposed Sec.  29.7(d) would also 
require the Administrator to maintain an up-to-date publicly available 
list of all occupational determinations related to suitability for 
registered apprenticeship.
    Generally, as a first step in evaluating an application, the 
Administrator would utilize a standardized process to identify a 
proposed occupation and determine whether it is already recognized as 
part of an existing suitable occupation. In practice, the Administrator 
currently utilizes industry-validated resources to assist in this 
determination such as the O*NET Program. The O*NET program assists the 
Administrator in identifying standardized and occupation-specific 
descriptors, such as core Tasks, and important knowledge, skill, and 
ability areas, for almost 1,000 occupations covering the entire U.S. 
economy. As an example of what might occur under this proposed 
provision, the Administrator could identify an O*NET code for each 
submission. Next, the Administrator would share the application with 
industry leaders and solicit feedback. Soliciting feedback from such 
stakeholders regarding whether an application for a suitability 
determination satisfies the requirements in proposed Sec.  29.7(b) 
would assist the Administrator to adjudicate applications and to ensure 
that the work process schedule and related instruction outline are in 
accord with industry standards.
    Although the Department feels that a process of soliciting feedback 
from industry leaders has worked well to date, the Department requests 
comments regarding how it may seek input from a wider distribution of 
industry leaders, the public, and other stakeholders, or utilize 
alternative or innovative methods such as analyzing data to assist the 
Administrator in making suitability determinations. In addition, the 
Department is interested in comments regarding when it may be 
appropriate to vary the process (i.e., when it may be most appropriate 
to consult with the public versus employing data analysis). In 
particular, the Department wants to ensure that a process of soliciting 
feedback from industry leaders does not limit the expansion of 
apprenticeship into new industries where fewer industry leaders 
familiar with apprenticeship may exist.
    Proposed Sec.  29.7(e)(1) through (4) explain the basis by which 
the Administrator could reach an unfavorable suitability determination. 
Proposed Sec.  29.7(e)(1) explains that an application for a 
suitability determination could be rejected if the application were 
incomplete, meaning that it did not include or address all of the 
elements in proposed Sec.  29.7(b) or include all of the information 
required in proposed Sec.  29.7(c).
    Proposed Sec.  29.7(e)(2) explains that to be suitable for 
registered apprenticeship, all of the criteria in proposed Sec.  
29.7(b) would need to be satisfied. Ultimately, the discretion as to 
whether these criteria are satisfied would rest solely with the 
Administrator for the reasons discussed above.
    Proposed Sec.  29.7(e)(3) and (4) are intended to prevent the 
``splintering'' of occupations as described above. Proposed Sec.  
29.7(e)(3) would prevent the Administrator from recognizing as suitable 
for registered apprenticeship an occupation if the scope of the 
apprenticeship training is confined to a narrowly specialized subset of 
skills and competencies within an established occupation that are not 
readily transferable between employers in the sector.
    Proposed Sec.  29.7(e)(4) would prohibit the Administrator from 
making a favorable suitability determination where the occupation under 
adjudication replicates a significant portion of the work processes 
from another occupation that OA previously approved as suitable for 
registered apprenticeship training without leading to a more advanced 
occupation. Thus, for example, if an occupation already considered 
suitable trains apprentices in

[[Page 3151]]

48 competencies and would result in a professional certification, but 
the Administrator were to receive a suitability determination request 
for a new occupation that replicates some, but not all, of the 48 
competencies and would not result in a professional certification, the 
Administrator could decline to find the new occupation suitable for 
registered apprenticeship. The Administrator would consult with 
industry leaders and stakeholders to inform the determination as to 
whether an occupation is not suitable for registered apprenticeship due 
to splintering concerns. The standard supplied in proposed Sec.  
29.7(e)(4) is not intended to present an opportunity for a single 
industry leader or stakeholder to ``veto'' a new occupation, and the 
Administrator would analyze all feedback received in reaching a 
determination. If an occupation under consideration replicates a 
significant portion of the work processes of more than one occupation 
previously determined to be suitable for registered apprenticeship, the 
Administrator would analyze the multiple occupations for potential 
splintering according to the standard in Sec.  29.7(e)(4). The 
qualifier that a new occupation may replicate a significant number of 
work processes but lead to a more advanced occupation is intended to 
facilitate the development of occupations with multiple levels (i.e., 
Boilermaker I versus Boilermaker II) and stackable credentials.
    Proposed Sec.  29.7(f) explains that in the event the Administrator 
determines that an occupation is not suitable for registered 
apprenticeship, the Administrator would notify the applicant and 
provide the Administrator's reasoning. In such cases of a final agency 
determination, the Administrator would need to publish the final agency 
determination on an OA public-facing website in compliance with 
proactive disclosure requirements under the Freedom of Information Act 
(5 U.S.C. 552 (a)(2)). An applicant could reapply by addressing the 
issues raised by the Administrator, and the Administrator could, in 
their discretion, reevaluate such an application and approve the 
application provided that it meets the criteria for approval.
    Proposed Sec.  29.7(g) provides that adjustments to existing 
suitable occupations, work processes, duration, or other significant 
adjustments in scope would need to be submitted to and approved by the 
Administration to remain valid. The Department anticipates that over 
time occupations could significantly adjust in scope or duration based 
on the needs of industry, advancements in technology, or other changes. 
Requiring adjustments to be submitted to the Administrator would help 
ensure that suitable occupations and work process schedules remain 
relevant for industry and provide the required training for an 
occupation.
    Proposed Sec.  29.7(h) is new and explains that the Administrator 
would review existing occupations determined to be suitable for 
registered apprenticeship on a 5-year cycle. In addition to determining 
whether the occupation is still suitable for registered apprenticeship, 
the Administrator would review to ensure that the work process 
schedule(s) and related instruction outline(s) approved with the prior 
suitability determination remain consistent with industry standards. In 
conducting this review, the Administrator would use the process 
described in Sec.  29.7(d), meaning that the Administrator would seek 
public comment, input from industry leaders or other stakeholders, and 
make use of other relevant information to assist with reaching a 
suitability determination and updating the work processes schedule and 
related instruction outline. The substantive criteria for determining 
continued suitability on a 5-year cycle would be the same as outlined 
in Sec.  29.7(b). If the Administrator determines that previously 
approved work processes schedules and related instruction outlines 
require revisions, the Administrator would notify in writing existing 
programs in the occupation of the need for updates. Existing programs 
would need to submit updated standards to their Registration Agency 
that reflect updates before the start of the next training cycle. If an 
occupation is determined to no longer be suitable for registered 
apprenticeship, the Administrator would notify any existing programs in 
writing and the programs would no longer be permitted to register 
apprentices in the occupation after the conclusion of their current 
training cycle.
Section 29.8--Standards of Apprenticeship
    Proposed Sec.  29.8 describes the minimum standards of 
apprenticeship that would apply for all apprenticeship programs that 
are registered by a Registration Agency. The establishment and 
implementation of robust standards of apprenticeship is essential to 
ensuring that registered apprenticeship programs deliver consistently 
high-quality training to apprentices, while also ensuring that 
apprentices are trained in a safe and accessible workplace environment 
where they are protected from exploitation and abuse. While the current 
version of the labor standards of apprenticeship regulation at 29 CFR 
29.5 does establish minimum standards of apprenticeship for the conduct 
of registered programs that address key program components (such as 
progressively increasing wages, apprentice-to-journeyworker ratios, 
work process schedules, safety requirements, probationary periods, and 
advanced standing and credit), the revised regulation would further 
elaborate and strengthen those minimum standards. As discussed in 
detail below, the proposed rule would extend the application of such 
minimum standards of apprenticeship to important topics that are not 
addressed in the current regulation, such as establishing a cost 
transparency and reasonableness requirement for registered 
apprenticeship programs, as well as stipulating that such programs 
undertake effective measures to ensure that apprentices are free from 
violence, intimidation, and retaliation in the workplace. Proposed 
Sec.  29.8 would change the order in which the standards of 
apprenticeship are listed to assist program sponsors, participating 
employers, apprentices, and other interested parties in understanding 
the minimum standards of apprenticeship. Finally, proposed Sec.  29.8 
would include additional requirements as a result of statutory changes 
enacted by Congress. Taken together, the updated standards provisions 
contained in proposed 29 CFR 29.8 are intended to enhance registered 
apprenticeship program quality and to safeguard the welfare of 
apprentices.
    Proposed paragraph (a) is based on an existing provision that sets 
forth that a registered apprenticeship program must have a written set 
of standards of apprenticeship and outlines what provisions must be 
included in those standards.
    Proposed Sec.  29.8(a)(1), which is based on an existing provision, 
would require that the standards of apprenticeship contain a provision 
that establishes the minimum eligibility requirements for entry into 
the registered apprenticeship program. Proposed Sec.  29.8(a)(1), as 
with the existing provision, sets forth the minimum starting age for an 
apprentice of not less than 16 years to reflect the general 16-year 
minimum age requirement for apprentices to be employed in otherwise 
prohibited occupations in nonagricultural employment under the Fair 
Labor Standards Act. See 29 U.S.C. 203(l). However, proposed Sec.  
29.8(a)(1) would update the provision by explicitly stating that the 
minimum starting age could be higher than 16 years if required

[[Page 3152]]

by Federal, State, or local law. Certain occupations suitable for 
registered apprenticeship could be subject to Federal or State laws 
that require a minimum starting age that is higher than 16 years; for 
example, an electrician's occupation would require individuals to be at 
least 18 years of age in many circumstances.\78\
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    \78\ See ETA, TEN No. 31-16, ``Framework on Registered 
Apprenticeship for HS Students,'' including Attachment 1, ``Guide on 
Child Labor Laws and Workers' Compensation for Apprentice Minors,'' 
Jan. 17, 2017, https://www.dol.gov/agencies/eta/advisories/training-and-employment-notice-no-31-16.
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    Proposed 29 CFR 29.8(a)(2) is not a new requirement for program 
sponsors. Under the current regulations at 29 CFR 29.5(b)(21), the 
Department requires program sponsors to include a provision in their 
program standards that describes the program's method for the selection 
of apprentices. The current regulations specify that program standards 
for all registered apprenticeship programs must fully comply with the 
EEO in Apprenticeship regulations at 29 CFR part 30, and current 29 CFR 
29.5(b)(21)--which forms the basis for the language proposed at Sec.  
29.8(a)(2) in this NPRM--specifies that selection procedures must 
conform to the regulations governing the selection of apprentices at 
current 29 CFR 30.10. The current regulatory text covers selection 
procedures within a provision that includes other requirements for 
program sponsors that have EEO elements and corresponding part 30 
requirements. The Department has determined that the regulatory 
community would benefit from the clarity that would arise from 
separating these elements out into distinct provisions. Accordingly, 
the Department proposes to relocate a distinct provision covering 
selection procedures to proposed 29 CFR 29.8(a)(2) and clarifies in 
this proposed provision that selection procedures must conform to the 
corresponding requirements at 29 CFR 30.10.
    The EEO in Apprenticeship regulations at 29 CFR 30.10 reiterate the 
part 29 requirement that sponsors must submit selection procedures in 
the written plan for their program standards, which are submitted to 
and approved by the Registration Agency. The regulations at 29 CFR 
30.10 stipulate that sponsors may use any method or combination of 
methods for the selection of apprentices, as long as the selection 
method(s) comply with the Uniform Guidelines on Employee Selection 
Procedures found at 41 CFR part 60-3, which require an evaluation of 
the selection procedures' impact on race, sex, and ethnic groups, as 
well as a demonstration of the business necessity for procedures that 
result in an adverse impact across any of these demographic groups. The 
regulations at 29 CFR 30.10 also stipulate that selection procedures be 
applied uniformly and consistently across all applicants and 
apprentices, and that the selection procedures must comply with title I 
of the Americans with Disabilities Act (ADA) and the implementing 
regulations at 29 CFR part 1630. Finally, the regulations at 29 CFR 
30.10 clarify that selection procedures must be facially neutral with 
respect to race, color, religion, national origin, sex, sexual 
orientation, age (40 or older), genetic information, and disability. 
Per the ruling from Washington v. Davis, 426 U.S. 229 (1976),\79\ a 
decision (or selection procedures, in the case of the apprenticeship 
regulations at parts 29 and 30) appears facially neutral if it neither 
creates a ``suspect classification'' nor infringes on a ``fundamental 
right.'' These regulatory requirements are unchanged by this NPRM, and 
existing program sponsors in compliance with the existing regulations 
would not need to make any changes to their current practices with 
respect to selection procedures and the submission of information about 
selection procedures to the Registration Agency. Any potential new 
programs seeking to enter the National Apprenticeship System must 
comply with the selection procedures regulations at parts 29 and 30, 
and the Department stands ready to provide subregulatory guidance on 
these requirements or any other requirements related to the 
development, submission, and approval of program standards.
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    \79\ Thomas B. Henson, ``Proving Discriminatory Intent From a 
Facially Neutral Decision With A Disproportionate Impact,'' 36 Wash. 
& Lee L. Rev. 109 (1979), https://scholarlycommons.law.wlu.edu/wlulr/vol36/iss1/5.
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    Proposed 29 CFR 29.8(a)(3) is a new proposed provision in the 
program standards section of the part 29 registered apprenticeship 
regulations, but it corresponds to existing requirements in the part 30 
EEO regulations regarding the registered apprenticeship program 
sponsor's obligation to take affirmative steps to provide EEO in 
apprenticeship. Proposed paragraph (a)(3) would require program 
sponsors to include a description of their recruitment area for new 
apprentices in their program in the written program standards they 
submit to the Registration Agency. The Department has determined that 
the benefits of requiring a written statement on recruitment area in 
the program standards are two-fold: first, as a matter of transparency 
and access, receiving this information from sponsors would enable OA, 
SAAs, and other stakeholders to collaborate with program sponsors in 
outreach and awareness efforts to attract new apprentices to a program. 
Understanding whether a program is recruiting new participants online, 
in a given geographic area, or some combination thereof, for example, 
is useful information for OA, SAAs, and other stakeholders to include 
in publicizing registered apprenticeship program availability and 
options for potential apprentices, such as through the Apprenticeship 
Finder portal on Apprenticeship.gov.
    In addition to the benefits related to access and transparency for 
this proposed addition, the Department has determined that requiring 
sponsors to report their recruitment area in their program standards 
would ultimately benefit sponsors in meeting their EEO obligation to 
engage in universal outreach and recruitment, as required by the 
existing regulations at 29 CFR 30.3(b). Identifying the recruitment 
area is a key piece of a program's outreach because the EEO regulations 
require that sponsors implement measures to ensure outreach and 
recruitment efforts extend to all people available to potentially 
participate in a registered apprenticeship program without excluding 
any person based on race, sex, ethnicity, or disability. Understanding 
a program's recruitment area is also important for identifying 
potential partnerships in a given area--these may be local government-
funded resources, like one-stop centers or local workforce development 
boards, private-sector partners looking to support workforce 
development and locate potential talent for businesses, or community-
based organizations or other community non-profit entities that are 
engaged and active with the local community and its resident. 
Ultimately, proposed paragraph (a)(3) is not a new requirement for 
program sponsors, which must identify their recruitment area as part of 
compliance with the part 30 EEO regulations. The Department has 
determined that requiring that program sponsors include information 
about their recruitment area in their program standards would provide 
transparency on programs' recruitment processes, would improve access 
to programs for interested apprentices, and would assist programs in 
meeting their EEO requirements. Examples of the recruitment area could 
include a range of miles from the location of the sponsor

[[Page 3153]]

(e.g., within 100 miles of a city) or a political jurisdiction (e.g., 
residents of a State or counties). Identifying the program's 
recruitment area would also help the program identify resources to 
assist with outreach to a diverse set of prospective apprentices in a 
given area. OA's Universal Outreach Tool includes contact information 
for non-profit, State, local, and community organizations, and other 
resources to assist with targeted outreach.\80\ Ultimately, the 
requirement for programs to divulge their recruitment area is meant to 
assist programs with recruitment. Programs benefit from diversity 
within apprentice cohorts due to the variety of experiences and 
perspectives that diverse communities bring to the table, and the 
corresponding EEO requirements are intended to assist programs with 
recruiting valuable candidates and to help connect prospective 
apprentices with opportunities they might not be aware of but for such 
active recruitment efforts.
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    \80\ OA, ``Outreach Tool,'' https://www.dol.gov/agencies/eta/apprenticeship/eeo/recruitment/outreach-tool (last visited July 20, 
2023).
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    Under the current labor standards of apprenticeship regulation at 
Sec.  29.5(b)(2), a registered apprenticeship program may adopt one of 
three alternative approaches to providing apprenticeship training: (1) 
a ``time-based'' approach, which imputes an apprentice's acquisition of 
relevant occupational skills through their completion of at least 2,000 
hours of on-the-job apprenticeship training; (2) a ``competency-based'' 
approach, under which a sponsor determines the apprentice's acquisition 
of relevant occupational skills during the apprenticeship, without 
specifying the minimum duration of such training; or (3) a ``hybrid'' 
approach, under which an apprentice acquires skills through a 
combination of a minimum number of on-the-job training hours and the 
successful demonstration of occupational competency. In addition, Sec.  
29.5(b)(4) of the current regulation stipulates that a program's 
standards of apprenticeship provide for organized, related instruction 
in technical subjects related to the occupation, and further states 
that a minimum of 144 hours of such instruction is recommended for each 
year of apprenticeship training.
    In this proposed rule at Sec.  29.8(a)(4)(i), the Department 
proposes to eliminate the tripartite on-the-job training approaches 
established in the current regulation and substitute a streamlined, 
unitary training approach for use by all registered apprenticeship 
programs that would combine key features of the current time-based and 
competency-based approaches to on-the-job training approaches. Proposed 
Sec.  29.8(a)(4)(i) would establish a uniform minimum term of on-the-
job apprenticeship training of not fewer than 2,000 hours in duration 
to ensure an apprentice's acquisition of proficiency in all of the 
skills and competencies relevant to an occupation during that 
apprenticeship term; \81\ it would combine this minimum on-the-job 
durational component with a requirement that the apprenticeship program 
provide an apprentice with all of the skills and competencies necessary 
to become proficient in the covered occupation. In effect, the proposed 
unitary approach to on-the-job training for all apprenticeship programs 
would resemble the ``hybrid'' approach to apprenticeship training found 
at 29 CFR 29.5(b)(2)(iii) of the current regulation, one that that 
measures skill acquisition through a combination of a specified number 
of hours of on-the-job training and a demonstration of relevant 
occupational competencies.
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    \81\ As a matter of current administrative practice, OA has 
ordinarily not registered a set of standards of apprenticeship that 
have included fewer than 2,000 hours of on-the-job training for 
apprentices, as the current regulations (at 29 CFR 29.4) do not 
regard an occupation that requires fewer than 2,000 hours as one 
that is suitable for apprenticeship training.
---------------------------------------------------------------------------

    The Department recognizes that the minimum apprenticeship term for 
a particular occupation may be greater than the 2,000-hour threshold in 
those instances where a longer term of apprenticeship training is the 
customary industry standard for acquiring technical proficiency within 
that occupation. Conversely, the Department notes that the proposed 
minimum 2,000-hour requirement for program duration could be reduced on 
a case-by-case basis for individual apprentices in instances where an 
apprentice is granted advanced standing or credit by the program for 
prior learning or previously acquired skills and experience,\82\ or in 
instances where an apprentice makes accelerated progress in the 
acquisition of occupational competencies during the course of their 
apprenticeship (see proposed Sec.  29.8(a)(20)).
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    \82\ The Department notes that the proposed minimum 2,000-hour 
requirement for program duration could be reduced on a case-by-case 
basis for individual apprentices in instances where an apprentice is 
granted advanced standing, receives credit by the program for prior 
learning or previously acquired skills and experience, or completes 
a registered CTE apprenticeship or pre-apprenticeship program, or in 
instances where an apprentice makes accelerated progress in the 
acquisition of occupational competencies during the course of their 
apprenticeship (see proposed Sec.  29.8(a)(20)).
---------------------------------------------------------------------------

    The adoption of a unitary on-the-job training approach in the 
standards of apprenticeship would serve to clearly differentiate 
registered apprenticeship programs from shorter-term, less intensive 
workforce training approaches (i.e., training programs of less than a 
year of full-time work in duration), while also expressly linking this 
minimum durational requirement to a fundamental premise: that all 
registered apprenticeship programs must impart occupational skills and 
competencies to the apprentices whom they train, and that apprentices 
reach proficiency in the occupation when they complete the 
apprenticeship (this idea was discussed at length in the preamble to 
proposed Sec.  29.7 above). Combining occupational competency and 
proficiency outcomes with a uniform minimum durational requirement 
would address a criticism that the current ``time-based'' approach to 
apprenticeship training permitted under the current regulation only 
obligates apprentices to complete a designated quantity of on-the-job 
``seat time'' in that program to obtain a Certificate of Completion. 
Moreover, this proposed reform would prevent sponsors from providing 
considerably less than 2,000 hours of on-the-job training by utilizing 
the ``competency-based'' approach. Such a lower durational threshold 
for competency-based training would be conspicuously at odds with the 
current 2,000-hour minimum standard required for an occupation to be 
considered suitable for registered apprenticeship training under the 
current regulation at 29 CFR 29.4 and in proposed Sec.  29.7. That 
approach, if used by a program to seek program registration for the 
Federal benefits associated with such registration but without 
providing an opportunity for the apprentice to reach proficiency in an 
occupation through dedicated employment in on-the-job training, would 
harm the apprentice's ability to learn and benefit from registered 
apprenticeship.
    The notion of linking the minimum duration of an apprenticeship 
term to the acquisition of key occupational competencies by apprentices 
received a clear endorsement in the ACA's 2022 Interim Report, which 
recommended updating the current regulatory framework ``to ensure 
competency attainment is achieved through all [training] models, while 
providing certain protections into standards with regard to time in 
[on-the-job training] to ensure proficiency is obtained, potentially 
expanding the hybrid model as a long-term goal for quality

[[Page 3154]]

standards.'' \83\ The proposed unitary training approach also would 
align with the 2023 Quality Apprenticeships Recommendation of the ILO, 
which advises Member States to establish standards for quality 
apprenticeships that address, among other things, ``the expected 
minimum and maximum duration of [an] apprenticeship'',\84\ and it also 
would be fully consistent with another provision of the same ILO 
recommendation, which advises Member States to take into account ``the 
duration of the apprenticeship required to acquire [occupational] 
competencies.'' \85\
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    \83\ ACA, ``Interim Report to the Secretary of Labor,'' May 16, 
2022, at 14, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
    \84\ ILO, ``Quality Apprenticeships Recommendation, 2023'' (ILO 
Recommendation No. 208), Conclusion 10(g), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
    \85\ ILO, ``Quality Apprenticeships Recommendation, 2023'' (ILO 
Recommendation No. 208), Conclusion 9(c), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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    The proposed establishment of a 2,000-hour (or 1 year of full-time 
work equivalent) minimum standard for on-the-job-training would also be 
consistent with the notion of a minimum duration of on-the-job training 
for apprenticeship programs that are regulated in G20 nations and other 
peer countries,\86\ including Canada,\87\ Australia,\88\ the United 
Kingdom (i.e., England),\89\ Switzerland,\90\ and Germany.\91\ 
Accordingly, if workers in the United States who complete a registered 
apprenticeship program are to remain competitive with their 
counterparts from these other nations, it is imperative that American 
apprentices receive the same quality and quantity of substantial, 
sustained, on-the-job apprenticeship training that is offered to 
similarly situated workers elsewhere.
---------------------------------------------------------------------------

    \86\ ILO, ``Overview of Apprenticeship Systems and Issues: ILO 
Contribution to the G20 Task Force on Employment,'' Nov. 2012, at 5 
(see Table 2, ``Regulated apprenticeship and youth unemployment in 
selected G20 countries'').
    \87\ Apprenticeships in Canada ordinarily are between 2 and 5 
years on duration. See Government of Canada, ``How to become an 
apprentice,'' https://www.canada.ca/en/services/jobs/training/support-skilled-trades-apprentices/become-apprentice.html (last 
updated Mar. 31, 2023).
    \88\ Apprenticeships in Australia are ordinarily between 1 and 4 
years in duration. See Fair Work Ombudsman of the Australian 
Government, ``Guide to Starting an Apprenticeship,'' June 2023, at 
2, https://www.fairwork.gov.au/sites/default/files/migration/712/guide-to-starting-an-apprenticeship.pdf.
    \89\ Apprenticeships in England are ordinarily between 1 and 5 
years in duration and cannot be less than 1 year in duration. See 
Andrew Powell, ``Apprenticeships Policy in England,'' House of 
Commons Library, Jan. 20, 2023, at 10, https://researchbriefings.files.parliament.uk/documents/SN03052/SN03052.pdf, 
as well the information on the following website: https://www.gov.uk/employing-an-apprentice.
    \90\ Apprenticeships in Switzerland are ordinarily between 1 and 
2 years in duration. See SwissInfo, ``Apprenticeships and high 
school,'' https://www.swissinfo.ch/eng/politics/apprenticeship-system/43796482 (last visited July 20, 2023).
    \91\ Apprenticeships in Germany are ordinarily between 2 and 3.5 
years in duration. See Fazit Communication GmbH, ``Dual vocational 
training,'' https://www.tatsachen-ueber-deutschland.de/en/working-germany/dual-vocational-training (last visited July 20, 2023).
---------------------------------------------------------------------------

    The advantage of linking a minimum term of on-the-job 
apprenticeship training to the acquisition of an apprentice's 
acquisition of occupational proficiency was articulated in a 2012 
landmark report prepared for the Government of the United Kingdom (the 
Richard Review of Apprenticeships) \92\ that spurred the enactment of 
major apprenticeship reforms by the United Kingdom parliament. The 
review's author, Doug Richard, made the following observations, which 
the Department believes are both relevant and applicable to registered 
apprenticeship in the United States:
---------------------------------------------------------------------------

    \92\ Doug Richard, ``The Richard Review of Apprenticeships: Main 
Report,'' Nov. 2012, https://www.gov.uk/government/publications/the-richard-review-of-apprenticeships.

    [A]pprenticeships must endure. There is real value in an 
apprenticeship lasting for a year or more. Apprenticeships measured 
in weeks or months, even if it is enough time to teach the required 
material and gain the requisite experience, can still fall short. It 
is as though the apprenticeship experience itself requires time to 
bed in and for the individual to transform from an apprentice to a 
skilled worker.\93\ . . . [A] minimum duration [of apprenticeship 
training] should be made mandatory . . . [and] may help guard 
against instances of poor employer practice and protect the 
interests of the learner.\94\
---------------------------------------------------------------------------

    \93\ Doug Richard, ``The Richard Review of Apprenticeships: Call 
For Evidence,'' June 2012, at 10, https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/34708/richard-review-full.pdf.
    \94\ Id. at 90.

    The Department expects that ensuring that the on-the-job-training 
component of a registered apprenticeship program has a sustained 
duration of at least 2,000 hours would benefit program sponsors, 
employers, and the economy at large because workers completing such 
programs would be well-grounded and proficient in the skills and 
competencies associated with the occupation for which they have 
received training, thereby enhancing their overall productivity and 
labor market mobility.<SUP>95 96</SUP> To ensure that such a minimum 
durational requirement could be sustained by apprentices who face 
structural barriers to registered apprenticeship programs, the proposed 
regulation contains a provision (at Sec.  29.10(a)(4)) that would 
require sponsors, as a condition for program registration, to submit a 
written plan for the equitable recruitment and retention of 
apprentices. The plan could describe any partnerships that the 
apprenticeship program will establish with external entities to provide 
for the delivery of supportive services to apprentices who face such 
impediments.\97\ The Department also believes that the adoption of this 
proposed unitary approach to apprenticeship training would provide all 
apprentices, including those from underserved communities, with a more 
sustained and comprehensive training regimen for acquiring the skills 
required to attain proficiency in an occupation than the shorter-term 
``competency-based'' alternatives that have been proposed by some 
applicants.
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    \95\ See Beth Stackpole, ``Practical Ways to Tackle 
Manufacturing's Labor Crunch,'' Massachusetts Institute of 
Technology Sloan School of Management, May 16, 2022, https://mitsloan.mit.edu/ideas-made-to-matter/practical-ways-to-tackle-manufacturings-labor-crunch.
    \96\ See Beth Stackpole, ``How to Make `Work of the Future' Work 
for Everyone,'' Massachusetts Institute of Technology Sloan School 
of Management, Apr. 26, 2022, https://mitsloan.mit.edu/ideas-made-to-matter/how-to-make-work-future-work-everyone.
    \97\ See Gregory Ferenstein, ``Job Training Programs Are Rarely 
Flexible Enough to Succeed,'' Brookings Institution, Sept. 16, 2019, 
https://www.brookings.edu/blog/techtank/2019/09/16/jobs-training-programs-are-rarely-flexible-enough-to-succeed.
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    It is also important to note that the longstanding 2,000-hour 
minimum durational standard in the United States for the on-the-job 
training component of an apprenticeship that is expressed in the 
current regulation actually predates the enactment of the NAA. The 
standard was established, pursuant to the labor standards-setting 
authority contained in the National Industrial Recovery Act of 1933, 
under President Franklin D. Roosevelt's Executive Order (E.O.) 6750-C 
(June 27, 1934); the same presidential directive also established the 
Federal Committee on Apprenticeship Training (the forerunner of today's 
ACA) to advise the Secretary on apprenticeship-related matters. 
Pursuant to that executive order, the Secretary issued ``General 
Regulation No. 1'' on August 14, 1934, which

[[Page 3155]]

directed the Federal Committee on Apprenticeship Training to promulgate 
standards of apprenticeship consisting of not fewer than 2,000 hours of 
on-the-job training and not fewer than 144 hours of ``group 
instructions in general and technical subjects.'' \98\ There has been 
almost 90 years of successful implementation of this 2,000 hour minimum 
on-the-job training durational standard at the Federal level, and this 
standard has been accepted over the years and across all industries as 
a key attribute of a high-quality apprenticeship program.
---------------------------------------------------------------------------

    \98\ Lucius Q.C. Lamar, ``History of General Exemptions,'' 
National Recovery Administration, Division of Review, Mar. 1936, at 
36-37, https://www.govinfo.gov/content/pkg/GOVPUB-Y3_N21_8-07cbfa706293e70fe6faff2cd615eb3d/pdf/GOVPUB-Y3_N21_8-07cbfa706293e70fe6faff2cd615eb3d.pdf.
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    The proposed rule at Sec.  29.8(a)(4)(ii) also would modify the 
current regulatory provision that appears at 29 CFR 29.5(b)(4) by 
expressly requiring, rather than recommending, that registered 
apprenticeship programs provide to apprentices a minimum average of 144 
hours of related instruction in technical subjects relevant to the 
occupation for every 2,000 hours of on-the-job training provided by the 
program. As discussed above, the related instruction portion of the 
program is necessary to complement the on-the-job training by providing 
an apprentice with a sufficient amount of classroom learning that 
conveys key foundational and theoretical concepts that an apprentice 
needs to acquire in order to obtain full proficiency in the occupation 
covered by the program. In this connection, the Department invites 
comment from the public on whether the proposed 144-hour minimum 
durational requirement for related instruction is sufficient, or 
whether it should be raised to a higher amount, given that several 
Western nations (such as Canada,\99\ Austria,\100\ and England \101\ 
(in the case of English apprentices who work more than 30 hours a 
week)) stipulate that at least 20 percent of the apprentice's paid 
hours, over the usual minimum duration of a 1-year apprenticeship, have 
to be spent on off-the-job training (which would correspond to a 400-
hour minimum durational requirement for related instruction for U.S. 
apprenticeships of 2,000 hours in duration). Commenters who advocate a 
higher minimum threshold for related instruction than the one set forth 
in this proposal should also provide their opinion regarding whether 
such a revised requirement should be phased in over time.
---------------------------------------------------------------------------

    \99\ See Government of Canada, ``How to become an apprentice,'' 
https://www.canada.ca/en/services/jobs/training/support-skilled-trades-apprentices/become-apprentice.html (last updated Mar. 31, 
2023).
    \100\ See Federal Ministry of Labour and Economy, 
``Apprenticeship training procedure (vocational training, 
apprenticeship diploma),'' Feb. 24, 2023, https://www.oesterreich.gv.at/en/themen/bildung_und_neue_medien/lehre/Seite.333400.html.
    \101\ See Andrew Powell, ``Apprenticeships Policy in England,'' 
House of Commons Library, Jan. 20, 2023, at 10, https://researchbriefings.files.parliament.uk/documents/SN03052/SN03052.pdf.
---------------------------------------------------------------------------

    The Department is also interested in any alternative suggestions 
from commenters, particularly as the Department is looking to align 
education systems more closely with registered apprenticeship, on 
whether a topic such as semester or trimester hours should be 
considered. Based on analysis by ED, 30 in-class or ``clock'' hours 
equates to 1 semester hour of academic credit.\102\ The 144-hour 
standard would approximately equate to 4 semester or trimester hours, 
plus an additional 24 clock hours.
---------------------------------------------------------------------------

    \102\ See Federal Student Aid, ``Implementation of updated 
clock-to-credit conversion regulations,'' May 25, 2021, https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2021-05-25/implementation-updated-clock-credit-conversion-regulations-ea-id-general-21-34.
---------------------------------------------------------------------------

    The Department is proposing flexibility for program sponsors in how 
they would count the number of hours related to this requirement. 
Sponsors may utilize contact hours, credit hours, a conversion of 
credit to clock hours, or any combination. The Department is interested 
in any comments related to ensuring and calculating the total number of 
hours of related instruction for programs. The Department considers 
this to be an appropriate minimum amount because additional related 
instruction such as safety training, EEO training, anti-harassment 
training, and other sponsor or employer specific related instruction is 
likely necessary to successfully supplement the on-the-job training 
portion of the registered apprenticeship program. The Department 
believes that a minimum number of hours should be required but is open 
to comments on these alternative amounts or on whether a minimum amount 
should be established by occupation, and if so, how such occupation 
specific standards should be established.
    Proposed Sec.  29.8(a)(5) would require that the program's 
occupation(s), work process schedules, and related instruction 
outline(s) be included in the standards of apprenticeship. The 
submission by a registered apprenticeship program of the occupation and 
work process schedule is currently required under the existing 
regulation at 29 CFR 29.5(a)(3). However, the proposed revised 
standards of apprenticeship would also expressly require the submission 
of a related instruction outline so that a Registration Agency would 
have a clear understanding of the breadth and quality of such an off-
the-job curriculum, and its relevance to providing an apprentice with 
the theoretical knowledge needed to attain full proficiency in an 
occupation. The Department notes that a sponsor could submit standards 
for multiple occupations as part of their submission, and if so, would 
need to submit work process schedules and related instruction outlines 
for every occupation for which it is seeking program registration.
    Proposed Sec.  29.8(a)(6) would add a new requirement that the 
standards of apprenticeship must include the related instruction 
provider and the instructional methods used to deliver related 
instruction. Currently, there is not a provision for including the 
related instruction provider or the instructional methods used to 
deliver related instruction in the development and subsequent approval 
of standards of apprenticeship. However, information about the related 
instruction provider and types of methods to deliver instruction is 
collected during program registration through Section I of the ETA 671 
Form. Currently Sec.  29.5(b)(4) requires standards of apprenticeship 
to include a ``[p]rovision for organized, related instruction in 
technical subjects related to the occupation'' and provides examples of 
how the instruction in technical subjects may be delivered. Permissible 
instructional methods include in-person classroom instruction; 
occupational or industry courses; electronic media, such as delivery 
via web-based instructional platforms; or other appropriate 
instructional methods that are approved by the Registration Agency. The 
proposed requirement for including this new information in standards of 
apprenticeship would create a record of the instructional methods 
utilized by the program to deliver related instruction to apprentices, 
thus providing the Department with a better picture of the types and 
prevalence of the different instructional modes and methods used by 
programs generally.
    Proposed Sec.  29.8(a)(7) is new and would create a requirement 
that the standards of apprenticeship include an attestation to document 
in writing that the qualifications and experience of the trainers and 
instructors providing the on-the-job training and related instruction 
to apprentices satisfy the

[[Page 3156]]

requirements in proposed Sec.  29.12. The proposed requirement in this 
section would be an acknowledgment in the standards that the 
requirements of proposed Sec.  29.12 are being met. The Department 
believes it is important that the standards of apprenticeship include 
this requirement so that programs can ensure they meet these 
requirements and submit it as part of their application in the 
standards in proposed Sec.  29.10.
    Proposed Sec.  29.8(a)(8) is new and would create a requirement 
that the standards of apprenticeship include a description of interim 
credentials (including recognized postsecondary credentials), 
qualification, or credit received by an apprentice during the term or 
upon the completion of the registered apprenticeship program. The 
Department proposes this new requirement to provide increased 
transparency to the apprentice who, with this description, would be 
better able to understand the credentials and credit that they would 
receive because of participating in the apprenticeship program. 
Proposed Sec.  29.8(a)(8)(i), which is based on an existing 
requirement, would require that the description include any interim 
credentials issued to an apprentice during the term of the registered 
apprenticeship program. Proposed Sec.  29.8(a)(8)(ii) would require 
that the description include any industry-portable occupational 
qualification, license, credential, or certification that the 
apprentice receives, or may be eligible to receive, upon completion of 
the registered apprenticeship program. The Department is interested in 
collecting this information because it is aware that some programs do 
provide this information, and the potential benefits to apprentices as 
result of the attainment of these credentials means that the Department 
should begin collecting more information from program sponsors on this 
development. The Department is interested in any comments on this new 
requirement to collect more information about credentials and other 
measures as part of the registration process.
    Proposed Sec.  29.8(a)(8)(iii) would recognize that some registered 
apprenticeship programs may be operated by, or in partnership with, 
educational institutions that provide postsecondary credit.\103\ 
Accordingly, this provision would require that the description include 
any postsecondary credit that an apprentice receives, or may be 
eligible to receive, upon completion of the related instruction or on-
the-job training components of the registered apprenticeship program. 
The Department notes that there would not be a requirement to provide 
additional credentials or postsecondary credit in a registered 
apprenticeship program; however, it acknowledges that many programs do 
provide this already, and is requiring this to be included in the 
standards to support the welfare of apprentices by providing them key 
information about the credentials and credit they would obtain as part 
of their participation in a registered apprenticeship program.
---------------------------------------------------------------------------

    \103\ ED, Office of Career, Technical, and Adult Education, 
``Opportunities for Connecting Secondary Career and Technical 
Education (CTE) Students and Apprenticeship Programs,'' June 2017, 
https://careertech.org/resource/connecting-secondary-cte-and-apprenticeships.
---------------------------------------------------------------------------

    Proposed Sec.  29.8(a)(9) would create a new, separate provision 
that would require a statement in the standards of apprenticeship of 
whether time the apprentice spends in the related instruction component 
of the apprenticeship training would be counted as hours worked, and if 
so, what the wage rate and any fringe benefits would be for those 
hours. This requirement would serve as a safeguard to ensure that 
sponsors consider the payment of wages for related instruction and to 
provide notice to the apprentices of whether paid related instruction 
is a part of the registered apprenticeship program's standards. In 
considering whether related instruction would be paid, sponsors must 
comply with any Federal, State, or local legal requirements regarding 
the payment of wages for training time, including, but not limited to, 
the Fair Labor Standards Act and its implementing regulations. In 
addition, regardless of any legal obligations to pay for related 
instruction time, sponsors may choose to do so for the benefit of the 
apprentices.
    Proposed Sec.  29.8(a)(10) would be a new requirement for sponsors 
to set forth a process for regularly assessing and providing feedback 
to the apprentice regarding the apprentice's acquisition of job-related 
knowledge, skills, and competencies during the on-the-job training 
component of the apprenticeship. It would expand upon the requirement 
in existing Sec.  29.5(b)(6) of periodic review and evaluation of the 
apprentice's performance on the job by requiring that a process for 
regular assessment of knowledge, skills, and competencies be set forth 
in the standards and that such feedback be shared with the apprentice. 
The Department notes the importance that feedback provided would be 
inclusive and structured in a way that would be accessible to all 
apprentices, including those with disabilities. This provision is 
intended to complement proposed Sec.  29.8(a)(4), which would set forth 
the minimum term for the registered apprenticeship program sufficient 
for an apprentice to attain proficiency in the occupation, and proposed 
Sec.  29.10(a)(1), which would require a sponsor to include in the 
submission for program registration the work process schedule and 
related instruction outline, by coupling the time requirements of the 
overall apprenticeship term, and work process schedule within such 
apprenticeship term, with a process for regular assessments. A clear 
process for regular assessment throughout the term of the 
apprenticeship, using the work process schedule and the term of the 
apprenticeship to measure progress, would ensure that the apprentice is 
achieving competencies and advancing throughout the registered 
apprenticeship program in accordance with the program standards. 
Additionally, a process for regular feedback would ensure ongoing 
dialogue regarding the performance of the apprentice and their progress 
through the program, as measured against the work process schedule and 
the term of the apprenticeship as set forth in the performance 
standards. Finally, to the extent that the progressive wage is measured 
by certain competencies achieved (rather than a set schedule per the 
terms of a collective bargaining agreement, for example), a process for 
regular assessment and feedback would ensure that the apprentice is on 
track for the wage progression set forth in the program standards and 
the apprenticeship agreement.
    This proposed paragraph also provides that in instances in which an 
apprentice attains such occupational skills and competencies at an 
accelerated pace, the program may grant advanced standing to such an 
individual pursuant to proposed Sec.  29.8(a)(20). This would allow 
flexibility for high performing apprentices who progress through their 
apprenticeship at an accelerated rate to gain advanced standing or 
credit and an increased wage commensurate with such progression. In 
this way, there would be flexibility for the sponsor to adapt to the 
progress of apprentices throughout the registered apprenticeship 
program and allow for acceleration where appropriate. The Department 
anticipates that such individual apprentices, may be able to complete 
their apprenticeship terms with fewer hours of on-the-job training or 
related instruction than the minimum standard established under the 
proposed rule at Sec.  29.8(a)(4). Because of

[[Page 3157]]

the requirement around the attainment of competencies that lead to 
occupational proficiency, and the requirement that apprentices be 
continuously assessed on their progress, it is critical that programs 
establish clear methods to assess the progress of all apprentices and 
to accurately identify and credit those apprentices who are progressing 
at an accelerated pace.
    Proposed Sec.  29.8(a)(11) would address the utilization of end-
point assessments the program uses to determine if an apprentice is 
fully proficient in the occupation and eligible to complete their 
registered apprenticeship program. Proposed Sec.  29.16 would require 
stipulating the administration of an end-point assessment to 
apprentices at the conclusion of their apprenticeship term and proposed 
Sec.  29.18 would require the maintenance of appropriate apprentice 
progress records by the sponsor or participating employer. As explained 
more fully at proposed Sec.  29.16, an end-point assessment would serve 
to validate that the apprentice was successful in acquiring the skills 
and competencies necessary for proficiency in the covered occupation. 
The Department notes the importance of structuring end-point 
assessments in a manner that is inclusive to all apprentices, including 
those with disabilities. The requirement in this section would be an 
acknowledgment in the standards that the requirements of Sec.  29.16 
are being met. The Department believes it is important that the 
standards of apprenticeship include this requirement so that the 
process is clear to anyone reviewing the program standards.
    Proposed Sec.  29.8(a)(12) would retain language from the 2008 
final rule at Sec.  29.5(b)(8), which stipulates the provision of a 
probationary period that is ``reasonable'' and does not exceed 25 
percent of the length of the program, or 1 year, whichever is shorter.
    Proposed Sec.  29.8(a)(13) is new and would require that the 
standards of apprenticeship include a statement that the registered 
apprenticeship program will be conducted in accordance with all 
applicable Federal, State, or local laws. The Department proposes to 
add this requirement to emphasize that the apprenticeship programs 
registered under this part must ensure apprentice safety and welfare. 
Program sponsors are responsible for ensuring their programs meet the 
requirements for apprentices to legally work in the occupation in which 
they are doing on-the-job training, such as if there are State licenses 
required to perform the work. In instances where the sponsor is not 
operating in accordance with all applicable law, they could be subject 
to deregistration proceedings for noncompliance with their program 
standards.
    Proposed Sec.  29.8(a)(14) is new and would require that the 
standards of apprenticeship include a statement that apprentices 
participating in an apprenticeship program registered under this part 
are entitled to the same worker allowances, rights, and protections, 
afforded by applicable Federal, State, or local laws, to which 
similarly situated, non-apprentice employees would be entitled. Such 
worker allowances, rights, and protections could include, but would not 
be limited to, family and medical leave; workers' compensation; and 
health and retirement plan benefits. The Department proposes to add 
this requirement in furtherance of its goal to ensure that these 
minimum standards of apprenticeship protect apprentice safety and 
welfare, while noting that it would not require that apprentices 
receive allowances, rights, and protections that similarly situated 
non-apprentices would not also be entitled to receive. The Department 
anticipates that adding this requirement would also provide apprentices 
with information about the allowances, rights, and protections to which 
they may be entitled, increasing transparency, and allowing potential 
apprentices to make an informed choice regarding a specific program.
    Proposed Sec.  29.8(a)(15) would expand upon an existing 
requirement and make changes to further emphasize the Department's 
commitment to ensuring apprentice safety and welfare. Specifically, 
proposed Sec.  29.8(a)(15) would require that the standards of 
apprenticeship include an attestation that the program sponsor will 
provide adequate, safe, and accessible facilities for the training and 
supervision of apprentices. Additionally, sponsors should provide any 
documentation, where available, to support their attestation, such as 
any OSHA or other relevant certifications. The Department acknowledges 
that not all sponsors may have such certifications at the time of 
program registration, or they may not be relevant to all sponsors. 
However, this information could assist the Department in ascertaining a 
program's ability to meet this requirement. The Department proposes to 
change the existing requirement by requiring that the attestation 
include that the program sponsor will provide accessible facilities 
(including for individuals with disabilities), aligning with the 
Department's broader goal that apprenticeship programs registered under 
this part are career pathways available to everyone. For example, to 
ensure facilities are accessible, programs should ensure bathrooms and 
changing facilities, including for provision of lactation, should be 
close to sites where work and training is taking place. Additionally, 
such attestations and documentation for safety would need to ensure 
that personal protective equipment is available to apprentices and fits 
appropriately according to each apprentice's size and body type. The 
Department adds that the attestation also would require that the 
facilities be compliant with all applicable Federal, State, and local 
laws, including, but not limited to, disability, occupational safety, 
and occupational health laws.
    Proposed Sec.  29.8(a)(16) would create a new requirement that the 
standards of apprenticeship include an attestation that the program 
sponsor will provide adequate, industry-recognized safety training for 
apprentices in both the on-the-job training and related instruction 
components of the registered apprenticeship program. This proposed 
change would expand upon the existing requirement at 29 CFR 29.5(b)(9) 
that addresses safety training in the standards of apprenticeship. This 
expanded requirement would further the goal of ensuring apprentice 
safety and welfare. Proposed Sec.  29.8(a)(16) would require that 
safety training provided to apprentices be tailored to mitigate the 
potential workplace hazards that may be encountered in the covered 
occupation. For example, the standards of apprenticeship for registered 
apprenticeship programs in the electrician occupation would need to 
include an attestation that the program sponsor will provide adequate, 
industry-recognized safety training that addresses potential workplace 
hazards encountered specifically by electricians.
    Proposed Sec.  29.8(a)(17) would require the written standards to 
include wages and fringe benefits that the apprentice will receive 
during the registered apprenticeship program. The current regulation at 
29 CFR 29.5(b)(5) stipulates the payment of a progressively increasing 
schedule of wages to be paid to the apprentice with the skill required, 
and the entry wage may not be less than the Fair Labor Standards Act 
minimum wage, where applicable, unless a higher wage is required by 
other applicable Federal law (such as the Davis-Bacon and related 
Acts), State law, respective regulations, or by collective bargaining 
agreement.
    In the proposed rule at Sec.  29.8(a)(17), the Department proposes 
to add the requirement that fringe benefits provided to the apprentice 
also be articulated in the program standards.

[[Page 3158]]

The phrase ``fringe benefits'' is intended to convey the generally 
understood meaning of providing benefits as a part of overall 
compensation, such as health insurance and contributions to retirement 
plans. For registered apprenticeship programs subject to the Davis-
Bacon and related Acts and the McNamara-O'Hara Service Contract Act, 
the more specific requirements of the Acts, including those relating to 
fringe benefits, apply in addition to the proposed requirements of this 
section. The Department views the proposed addition of ``fringe 
benefits'' as strengthening the standards by providing clarity and 
transparency around the fringe benefits provided to apprentices.
    The Department also proposes to retain the requirement of a minimum 
wage floor at the outset of the apprenticeship and a graduated schedule 
of progressively increasing wages for apprentices during the remainder 
of the apprenticeship term. However, the proposed Sec.  29.8(a)(17) 
would stipulate that the graduated schedule of wages paid to an 
apprentice would increase over the balance of the apprenticeship term 
to reflect the apprentice's progressive acquisition of occupational 
skills and competencies.\104\
---------------------------------------------------------------------------

    \104\ This proposal is aligned with Conclusion 16(a) of the 2023 
Quality Apprenticeships Recommendation of the ILO, which recommends 
that apprentices ``receive adequate remuneration . . . which may be 
increased at different stages of the apprenticeship to reflect the 
progressive acquisition of occupational competencies.'' ILO, 
``Quality Apprenticeships Recommendation, 2023'' (ILO Recommendation 
No. 208), Conclusion 16(a), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.

                 Basic Requirements for the Proposed Wage Standard in Registered Apprenticeship
  [Sample program with the minimum required 2,000-hour duration, and with a journeyworker wage of $20.00/hour]
----------------------------------------------------------------------------------------------------------------
  Initial Apprentice Wage       Intermediate Step 1 3      Intermediate Step 2 6       Final Apprentice Wage 9
       Entry-3 months              months-6 months            months-9 months        months-completion (1 year)
----------------------------------------------------------------------------------------------------------------
                  $7.25                      $10.00                      $12.50                        $15.00
----------------------------------------------------------------------------------------------------------------
This table reflects the basic requirements of the proposed wage standard for registered apprenticeship. Under
  the proposed wage standard, wages for apprentices would need to (1) be at least at or above the Federal,
  State, or local minimum wage (in this example, the initial wage is the Federal minimum wage of $7.25); (2)
  include at least one wage progression (in this example, there are intermediate steps reflecting wage increase
  after 3 and 6 months); and (3) be at least 75% of the typical journeyworker wage after the final wage
  progression (in this example, the apprentice's final wage, paid through months 9 through 12 of the program, is
  $15.00/hour, 75% of the journeyworker wage of $20.00/hour).

    The Department also proposes that the graduated schedule of 
increasing apprentice wages paid by an employer include at least one 
incremental wage step increase between the entry wage and the final 
wage step during the first 2,000 hours of the apprenticeship term, with 
additional wage step increments scheduled at reasonable intervals for 
program terms of longer duration designed to support apprentices' 
progression and success throughout their apprenticeship. This proposed 
language is intended to require a thoughtful approach to wage 
progression in instances in which there is no governing collective 
bargaining agreement, such that adequate consideration is given to 
recognizing and compensating an apprentice's progress through the 
program. In addition, the Department proposes that the wages provision 
stipulate that the apprentice's final wage step in the program must be 
not less than 75 percent of the usual journeyworker wage paid by the 
employer for that occupation, except in instances where the scheduled 
progression of apprentice wages is stipulated by other applicable 
Federal, State, or local laws, such as those governing the payment of 
prevailing wages, or by the terms of an applicable collective 
bargaining agreement. This final requirement would be especially 
relevant for programs of longer duration where the apprentice may have 
spent several years with the employer and where it is more likely that 
the apprentice would be doing similarly skilled work as journeyworkers 
and should therefore be paid commensurate with that experience. The 
Department notes that Florida and Delaware have established similar 
standards for the final wage step paid to an apprentice for registered 
apprenticeship programs operating in those States, pegging that 
terminal wage to a percentage of the established wage paid to 
journeyworkers by an employer.\105\
---------------------------------------------------------------------------

    \105\ See Florida Administrative Code, Chapter 6A-
23.004(2)(e)(5), which utilizes the minimum standard of 75 percent 
of the established journeyworker wage for the final wage step of the 
apprenticeship term, and Delaware Administrative Code, title 19, 
chapter 1101, sec. 6.2.7.3, which utilizes the minimum standards of 
85 percent of the established journeyworker wage for the final wage 
step of the apprenticeship term.
---------------------------------------------------------------------------

    This revised wage provision is intended to protect apprentices from 
receiving low and relatively flat wages over the course of the 
apprenticeship term. Taken together, the enhanced wage provisions 
contained at proposed Sec.  29.8(a)(17) are intended to place 
apprentices on a more secure career pathway, to enable apprentices to 
support themselves during an apprenticeship, and to provide skilled and 
productive apprentices with a positive incentive for completing the 
training program. The Department invites comments on these provisions 
to bolster the registered apprenticeship progressive wage requirements 
and is interested in the feasibility of this approach across 
industries. The Department believes that most programs already provide 
progressive wages consistent with these requirements but invites 
comments on a way to ensure continuous progressive wages with 
competency attainment against the needs for flexibility for industry 
regarding wage increases.
    In addition to these proposed wage progression revisions, the 
Department reminds sponsors that, consistent with the requirements of 
29 CFR part 30, the wages paid by a sponsor or a participating employer 
to an apprentice must not discriminate against such persons on the 
basis of race, color, religion, national origin, sex, sexual 
orientation, gender identity, age (40 or older), genetic information, 
or disability. In addition, the Department reminds both registered 
apprenticeship program sponsors and participating employers that 
apprentices who meet the definition of an employee under either the 
Internal Revenue Code or the Fair Labor Standards Act--which they will 
in virtually every instance--must not be misclassified by such sponsors 
or employers as independent contractors.
    Proposed Sec.  29.8(a)(18) would address program costs and expenses 
incurred by apprentices. The current regulations do not address or 
place any limitations upon the costs, fees, or expenses that an 
apprentice may be obligated to assume

[[Page 3159]]

in connection with their on-the-job training or related instruction. As 
some individual apprentices lack economic bargaining power relative to 
their potential sponsors and employers, the absence of regulatory 
language governing program costs in the existing rule has the potential 
to undermine the welfare of apprentices by exposing such persons to a 
heightened risk of financial exploitation. For instance, there is 
currently no obligation placed upon sponsors or employers in the 
current regulation to disclose to potential apprentices, in advance of 
their enrollment, the nature and amount of any costs, fees, or expenses 
that those individuals may incur in connection with their participation 
in the program. Moreover, there is no requirement in the current rule 
stipulating that only program costs that are both necessary and 
reasonable may be charged to a participating apprentice. The Department 
is aware of circumstances where apprentices in certain programs have 
been confronted with exorbitant costs for training, related 
instruction, and other fees that have subjected them to financial 
hardship and personal indebtedness. Such costs have sometimes also 
prevented apprentices from either completing their apprenticeship 
training, or from enrolling in the apprenticeship program in the first 
place.
    To address these concerns, the proposed Sec.  29.8(a)(18) would 
establish cost transparency and reasonableness provisions as part of a 
program's standards of apprenticeship, requiring a sponsor or a 
participating employer to include in the program standards the nature 
and amount of any unreimbursed costs, expenses, or fees that the 
apprentice may incur for participating in the program (such as for 
equipment, supplies, on-the-job training, related instruction, books, 
tuition, or assessment fees). This provision would further stipulate 
that such unreimbursed costs, expenses, or fees could be assessed by a 
sponsor or participating employer only if they are necessary and 
reasonable, do not impose substantial or inequitable barriers to 
program enrollment or completion by an apprentice, and are compliant 
with all applicable Federal, State, and local wage laws and 
regulations, including but not limited to the Fair Labor Standards Act, 
the Davis-Bacon and related Acts, the McNamara-O'Hara Service Contract 
Act, and their implementing regulations. In instances where a program 
sponsor or a participating employer engages an outside party or 
educational institution (such as a community college) to provide 
related instruction to apprentices enrolled in the program, such 
sponsor or employer should ensure that the terms as articulated in the 
standards are complied with and that the costs of such instruction do 
not impose financial burdens of a magnitude that could jeopardize such 
a person's ability to participate in or complete the registered 
apprenticeship program.
    This new regulatory provision would empower potential apprentices 
by providing them with the fundamental consumer protection of having 
complete program cost information disclosed to them prior to their 
participation in the program. In addition, this provision would serve 
to protect enrolled apprentices from possible financial exploitation or 
abuse by prohibiting the imposition of unnecessary or unreasonable 
costs by program sponsors or participating employers during the course 
of the apprenticeship term. The Department thinks that the inclusion of 
a cost transparency and reasonableness provision in the standards of 
apprenticeship would help to advance DEIA in registered apprenticeship 
programs by reducing or eliminating barriers to program access and 
completion by individuals from underserved communities and populations. 
The Department believes mitigation and removal of such financial 
barriers is essential if registered apprenticeship is to fulfill its 
potential as an effective vehicle for enabling persons from underserved 
communities and population to achieve economic mobility.
    The Department is cognizant of the fact that, despite its proven 
capacity to provide a skilled and talented workforce, a registered 
apprenticeship program nevertheless requires a significant investment 
of time and funds by a sponsor or an employer to achieve its desired 
outcomes. To mitigate such training costs, many sponsors and employers 
have formed effective partnerships with labor unions, intermediaries, 
educational institutions, trade and industry associations, and other 
organizations to create efficiencies of scale that can reduce the costs 
of delivering on-the-job training and related instruction to 
apprentices. In addition, sponsors and employers may qualify to receive 
Federal or State apprenticeship grants, tax credits, or other resources 
that may help to offset such training costs. The utilization of such 
partnerships and grant opportunities by sponsors and employers to 
defray training costs can also serve to minimize the imposition of such 
costs upon apprentices, many of whom may not be able to sustain such a 
financial burden. The Department encourages sponsors to partner with 
organizations that can provide resources in their communities to 
mitigate any costs passed on to apprentices, which may include tuition, 
supportive services, or other assistance.
    The Department is also interested in receiving comments on the 
impact of costs borne by apprentices that relate to the up-front 
purchase of equipment and supplies essential to their work or required 
by the sponsors or participating employers, but that have not been not 
paid for by such sponsors or participating employers; in addition, the 
Department is interested in receiving comments on the impact of any 
deferred payments required of apprentices that relate to the costs of 
maintaining such essential equipment and supplies. In addition, the 
Department is interested in receiving comments as to whether the 
``necessary and reasonable'' standard for evaluating unreimbursed costs 
in this provision should be modified to establish a more precise, 
mathematical formula for ascertaining cost reasonableness (such as a 
threshold value as a percentage share of wages), or whether the more 
flexible standard proposed in this provision is more appropriate and 
administratively feasible.
    Proposed Sec.  29.8(a)(19) would update and reformat an existing 
requirement that is addressed in Sec.  29.5(b)(7), regarding the ratio 
of apprentices to journeyworkers. The intended purpose of this ratio 
requirement is to further the Department's goal of ensuring the safety 
and welfare of apprentices, while on the job, via an established ratio 
of apprentices to journeyworkers. Proposed Sec.  29.8(a)(19)(i) would 
specify that the sponsor's ratio must be approved by a Registration 
Agency, consistent with the proper safety, health, supervision, and 
training of the apprentice. This requirement would center apprentice 
safety and welfare as the main considerations in the establishment of 
the specific numeric ratio for a registered apprenticeship program. To 
ensure that the ratio is consistent with the proper safety, health, 
supervision, and training of the apprentice, program sponsors and the 
reviewing Registration Agency should consider factors that could 
endanger the welfare of an apprentice who is participating in the 
program, such as risk of exposure to hazardous working conditions and 
risk of serious bodily injury or death while on the job.
    One such consideration to help protect the safety and welfare of

[[Page 3160]]

apprentices is ensuring a proper apprentice-to-journeyworker ratio in 
industry sectors with a high rate of fatal work-related injuries. High-
hazard industries, empirically defined with data compiled by BLS, may 
be subject to a heightened level of scrutiny with respect to their 
utilization beyond an apprentice-to-journeyworker ratio of one-to-one 
(1:1).\106\ Industries that have been identified as high-hazard 
industries have an average fatal work injury rate exceeding 5 deaths 
per 100,000 full-time equivalent workers over the 3 most recent 
calendar years for which such statistics are available and include such 
industry sectors as: construction; transportation and warehousing; 
mining, quarrying, and oil and gas extraction; and agriculture, 
forestry, fishing, and hunting. Less hazardous industries or 
occupations in other (non-high-hazard) industries may not require as 
much scrutiny and may be able to use expanded ratios, but each ratio 
would be reviewed and considered on a case-by-case basis.
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    \106\ ETA, OA Circular No. 2021-02, ``Guidelines for Reviewing 
Apprentice to Journeyworker Ratio Requests,'' Jan. 12, 2021, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular%25202021-02%2520FINAL%25201.12.21.doc.
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    The Department is adding ``health'' to the list of factors for 
establishing a numeric ratio. Health and safety go hand in hand, and 
the Department thinks that apprentices should have proper supervision 
and training when they participate in on-the-job training at worksites 
that may expose them to toxic materials or harmful physical agents. 
This change would ensure that program sponsors, employers, and 
Registration Agencies are aware of and consider potential health risks 
for apprentices at worksites, and that an appropriate numeric ratio of 
apprentice-to-journeyworkers is used to allow for the necessary 
training and supervision to mitigate potential material impairment of 
health or functional capacity of an apprentice who may be exposed to 
toxic materials or harmful substances while on the job.
    The Department notes that it has not included ``continuity of 
employment'' in the factors. ``Continuity of employment'' was 
previously listed with additional factors, such as ``proper 
supervision, training, and safety,'' in establishing a numeric ratio of 
apprentices-to-journeyworkers under 29 CFR 29.5(b)(7). The Department 
understands that the term has been carried forward from previous 
rulemaking and may have numerous operational meanings as a term of use; 
however, the Department no longer thinks that it is relevant to an 
assessment of whether a particular ratio is appropriate--that is, 
whether a particular ratio will further the safety of the apprentice. 
Accordingly, the Department is proposing to remove it as a factor. 
However, the Department is interested in comments as to what and how 
``continuity of employment'' could or should mean in the context of 
ratios and providing a safe workplace and any rationales for continuing 
to have that language or alternative language to address the proper 
ratio factors.
    In practice, a ratio of one apprentice to one journeyworker has 
been the norm for programs; however, as registered apprenticeship has 
expanded into new industries the Department has considered expanded 
ratios particularly in industries where there is a reduced safety risk 
(for example, a job primarily in an office setting).
    While apprentice safety is the focus of the proposed requirement, 
there would also be flexibility provided to sponsors in setting the 
specific numeric ratio. Proposed Sec.  29.8(a)(19)(ii) would specify 
that sponsors must use a ratio that is consistent with the provisions 
of any applicable collective bargaining agreements, as well as any 
applicable Federal and State laws governing ratios of apprentices to 
journeyworkers, and specific and clearly described as to its 
application to a particular workforce, workplace, job site, department, 
or plant. The Department recognizes that a one-size-fits-all approach 
would not be feasible with respect to ratios and that ratios could 
differ depending upon the specific industry or occupation in which the 
registered apprenticeship program is taking place. The Department also 
recognizes that a specific numeric ratio of a registered apprenticeship 
program could be set in an applicable collective bargaining agreement 
or by applicable Federal and State laws. Ultimately, each program must 
have a ratio specific to that program that is designed to protect the 
safety of its apprentices consistent with the considerations described 
and discussed above. The Department is seeking comments on these 
longstanding criteria, particularly to ensure how the ratios are 
applied in both emerging and traditional industries.
    Proposed Sec.  29.8(a)(20) would change an existing requirement 
concerning the granting of advanced standing, credit, and an increased 
wage to an apprentice. The proposed provision would require that the 
standards of apprenticeship grant advanced standing, credit, and an 
increased wage to an apprentice when appropriate, and in such 
circumstances would instruct sponsors to include a process by which 
they would reduce the usual term of on-the-job training or related 
instruction. This change would recognize that the reduction of the 
usual term of on-the-job training or related instruction could be 
appropriate in two scenarios: (1) where an apprentice comes to a 
program with prior qualifications that warrant the reduction of the 
usual term of on-the-job training or related instruction; and (2) where 
an apprentice demonstrates expedited progress while in a registered 
apprenticeship program that warrants the reduction of the usual term of 
on-the-job training or related instruction. Proposed Sec.  
29.8(a)(20)(i) would require that the established process be fair, 
transparent, and objective in identifying, assessing, and documenting 
an apprentice's prior learning or experience as well as any accelerated 
progress made by an apprentice.\107\ Proposed Sec.  29.8(a)(20)(ii) 
would require that the process must result in advanced standing, 
credit, and an increased wage that is commensurate with any progression 
granted because of the apprentice's prior qualifications or accelerated 
progress. The Department encourages the use and development of 
appropriate methods of applying advanced standing. Examples of advanced 
standing because of an apprentice's prior qualifications could include 
prior experience and training related to military service for veterans 
joining a registered apprenticeship program, an apprentice's completion 
of a pre-apprenticeship program which has a documented partnership with 
the registered apprenticeship sponsor, as well as an individual's 
completion of a registered CTE apprenticeship program under subpart B. 
In addition to advanced standing for prior experience, the Department 
notes that the feature of accelerating apprentices for their 
achievements during a program was a feature of the competency-based 
model of registered apprenticeship under the current rule, which the 
Department is proposing to remove as a separate model. The Department's 
proposal seeks to combine the benefits of competency attainment from 
the competency-based

[[Page 3161]]

model with minimum employment duration requirements for on-the-job 
training. This proposal would allow sponsors the flexibility to advance 
apprentices, and for apprentices to receive commensurate advancement in 
wages, based on their prior experience. This proposal would help to 
ensure sponsors continue to have some of the main flexibility 
components of the competency-based approach, with key quality 
enhancements where the Registration Agency could review to ensure 
apprentices are progressed fairly and such processes are equitable and 
objective.
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    \107\ Proposed Sec.  29.8(a)(20) aligns with the 2023 Quality 
Apprenticeships Recommendation of the ILO at Conclusion 10(h), which 
advises Member States to establish apprenticeship standards that 
describe ``the extent to which the expected duration of the 
apprenticeship may be reduced on the basis of prior learning or 
progress made during the apprenticeship.'' ILO, ``Quality 
Apprenticeships Recommendation, 2023'' (ILO Recommendation No. 208), 
Conclusion 10(h), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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    The Department's proposed method of requiring a minimum amount of 
on-the-job training hours while allowing advanced standing based on 
existing competency would be similar to the current ``hybrid'' model 
and provide the right balance of training participants to an industry 
standard and duration, while recognizing the unique skill and 
competency progressions of apprentices. This provision would also 
ensure that an apprentice does not have an abbreviated on-the-job 
training experience in the program if circumstances do not warrant it, 
so that a program is not graduating apprentices from their program 
before they have completed their training and demonstrate the requisite 
proficiency.
    Proposed Sec.  29.8(a)(21) would update an existing requirement 
concerning the transfer of apprentices. The changes made by proposed 
Sec.  29.8(a)(21) would be non-substantive and seek to increase clarity 
by explicitly stating that the standards of apprenticeship must include 
a provision addressing the transfer of apprentices. The substantive 
elements of existing Sec.  29.5(b)(13)(i) through (iii), which require 
that a transferring apprentice be provided a transcript of related 
instruction and on-the-job learning, transfer to the same occupation, 
and sign a new apprenticeship agreement when the transfer occurs, would 
remain unchanged in proposed Sec.  29.8(a)(21).
    Proposed 29 CFR 29.8(a)(22) would build upon the existing 
regulations at 29 CFR 29.5(b)(23) and add a reference to participating 
employers. The Department has determined that the maintenance of 
apprenticeship records by all parties involved with operating or 
participating in a registered apprenticeship program is critical to 
achieving the Department's goal of collecting and analyzing high-
quality data to enhance its ability to oversee, analyze, and improve 
registered apprenticeship and the National Apprenticeship System. 
Information about an apprentice's interactions with an employer 
participating in their registered apprenticeship program, such as 
whether the apprentice was ultimately hired, any interim credentials 
earned by the apprentice that would certify them to complete job tasks 
for an employer, the apprentice's wage upon hire, and other important 
data, is vital for achieving the Department's data and information 
goals. Adding participating employers here would allow the Department 
to collect more important data on the utilization of registered 
apprenticeship programs by employers.
    In addition to adding participating employers to the maintenance of 
records requirement, the Department proposes to replace the existing 
language of 29 CFR 29.5(b)(23) covering recordkeeping requirements that 
``may be required by the Office of Apprenticeship or recognized State 
Apprenticeship Agency and other applicable law'' with a cross-reference 
to the proposed recordkeeping provisions set forth in this NPRM at 
proposed Sec.  29.18. As described below, the Department has determined 
that enhancements to the recordkeeping requirements for registered 
apprenticeship are essential for the development of a comprehensive, 
national dataset on apprenticeship, for garnering data-driven insights 
about the National Apprenticeship System, and for making data-driven 
decisions to improve the National Apprenticeship System. The change 
made here would clarify that program sponsors and participating 
employers must maintain the records specified in proposed Sec.  29.18 
for five years.
    Proposed Sec.  29.8(a)(23) would address a program's adherence to 
EEO Requirements. The proposed Sec.  29.8(a)(23) would replicate the 
requirement currently at Sec.  29.5(b)(21), which stipulates that the 
standards of apprenticeship must include a statement that the program 
must be conducted, operated, and administered in conformity with 29 CFR 
part 30, as amended, or, if applicable, an approved State EEO plan.
    Proposed Sec.  29.8(a)(24) would address maintaining a safe and 
inclusive workplace. The proposed Sec.  29.8(a)(24) would obligate 
program sponsors and participating employers to promote and maintain a 
safe and inclusive workplace environment that is free from violence, 
harassment, intimidation, and retaliation against apprentices. The 
requirement to maintain such a workplace environment would include an 
obligation to develop and implement procedures to ensure that its 
apprentices are not harassed and the program is free from intimidation 
and retaliation. The inclusion of this provision in the standards of 
apprenticeship would serve to supplement and reinforce the retained 
non-discrimination and EEO requirement at proposed Sec.  29.8(a)(23) 
and is intended to make it clear that any such conduct or actions 
directed against apprentices is completely unacceptable.\108\ As with 
other instances of noncompliance with the standards of apprenticeship, 
any failure to abide by this requirement could be grounds for a 
Registration Agency to impose sanctions against any program sponsor or 
participating employer that fails to take immediate and effective 
action to remedy the situation. Such sanctions could include the 
initiation of deregistration proceedings and referral to law 
enforcement agencies, as appropriate. The inclusion of a prohibition on 
intimidation and retaliation against apprentices in this provision of 
the standards of apprenticeship is intended to deter sponsors and 
participating employers from enabling or tolerating a climate of fear 
in the workplace that might deter apprentices from reporting instances 
of misconduct by supervisors, journeyworkers, or colleagues (including 
instances of sexual assault), or alternatively, from joining a labor 
union or engaging in organizing activities.
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    \108\ Proposed Sec.  29.8(a)(23) and (24) are consistent with 
the content of Conclusion 22 of the ILO's 2023 Quality 
Apprenticeships Recommendation, which advises that Member States 
``should take effective measures to prevent and eliminate any 
discrimination, violence and harassment and exploitation against 
apprentices.'' ILO, ``Quality Apprenticeships Recommendation, 2023'' 
(ILO Recommendation No. 208), Conclusion 22, June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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    Proposed Sec.  29.8(a)(25) is new and is being added to ensure 
compliance with a related Federal law. Proposed Sec.  29.8(a)(25) would 
require, for those apprenticeship programs registered on or after 
September 22, 2020, that the standards of apprenticeship include an 
attestation that the program sponsor will provide each of the written 
assurances as required under sec. 2(b)(1) of the Support for Veterans 
in Effective Apprenticeships Act of 2019 (Pub. L. 116-134, 134 Stat. 
277, 29 U.S.C. 50c). The Department has previously implemented these 
provisions through its information collection requests (ICRs) under OMB 
Control Number 1205-0223; however, as this is a statutory requirement 
the Department considers it important to include in the operative 
regulatory text.
    Proposed Sec.  29.8(a)(26) would carry forward an existing 
requirement that the

[[Page 3162]]

standards of apprenticeship identify the contact information of the 
individual with authority in the program to receive, process, and make 
disposition of complaints. The Department is proposing to make an email 
address a requirement, whereas the current rule only says, ``if 
appropriate.''
    Proposed Sec.  29.8(b) would address a gap in the existing minimum 
standards of apprenticeship by creating a new requirement with respect 
to group programs and participating employers. Currently, employers can 
participate in a group program, and these employers often sign an 
agreement (commonly referred to as an employer acceptance agreement), 
or participate via a collective bargaining agreement, with a joint 
labor-management group program sponsor. This agreement seeks to ensure 
that the participating employer will abide by the minimum standards of 
apprenticeship, but the existence of such an agreement is not currently 
required. This lack of requirement means that the sponsor is not 
formally required to ensure that the employer is abiding by the terms 
of the standards of apprenticeship and apprenticeship agreement, and 
therefore limits the Registration Agency's ability to hold the sponsor 
responsible. The lack of accountability may allow harm caused to 
apprentices to go unaddressed, or at least make it harder to address 
and remedy.
    This rulemaking proposes a new Sec.  29.11, Program Standards 
Adoption Agreement, which would outline the requirements of such 
agreements signed by participating employers. Proposed Sec.  29.8(b) 
would synchronize the minimum standards of apprenticeship with proposed 
Sec.  29.11, creating a corresponding requirement on group program 
sponsors to ensure that the minimum standards of apprenticeship include 
an attestation from each participating employer, which is required 
prior to the employer being admitted to the program. Proposed Sec.  
29.8(b)(1) would require the attestation include that a participating 
employer will abide by the requirements in parts 29 and 30.
    Proposed Sec.  29.8(b)(1) would require group program sponsors to 
ascertain, via the attestation, whether a participating employer has 
violated any applicable laws governing workplace practices or conduct, 
and actions taken to remedy any violation. This disclosure would not 
prevent a program from being registered or from allowing the sponsor to 
enter into an agreement with the participating employer; however, the 
Department, in safeguarding the welfare of apprentices, considers it 
important that a Registration Agency know of these instances as part of 
its program oversight role. If an entity fails to disclose such 
violations, then, as with any materially false, fictitious, or 
fraudulent statement or representation knowingly and willfully to the 
Federal Government, a referral to the Department of Justice for a 
potential violation of 18 U.S.C. Sec.  1001 would be necessary.
    Proposed Sec.  29.8(b)(3) would require group program sponsors to 
monitor participating employers for their compliance with the minimum 
standards of apprenticeship and other requirements contained in parts 
29 and 30. The Department has determined that creating this requirement 
would help address a gap in existing requirements with respect to group 
programs and participating employers. Through this requirement, the 
Department anticipates furthering apprentice safety and welfare by 
adding a check on the actions of the participating employer and 
providing a mechanism for the Registration Agency to hold the sponsor 
accountable. These safeguards would promote compliance with the terms 
of the standards of apprenticeship and apprenticeship agreement. While 
not an explicit requirement, group program sponsors may need to 
dedicate staff as coordinators to ensure all the program partners and 
employers are coordinated and connected in the delivery of the 
registered apprenticeship program.
Section 29.9--Apprenticeship Agreements
    As discussed above, one of the principles informing the development 
of this proposed regulation is the desire to increase transparency and 
accountability throughout the National Apprenticeship System. The 
apprenticeship agreement between registered apprenticeship program 
sponsors and apprentices joining their programs is critical to allowing 
the apprentice to understand their rights and obligations. The 
apprenticeship agreement is the agreement that governs the relationship 
between the apprentice and the sponsor (and employers, where 
applicable) regarding the terms and conditions of the registered 
apprenticeship program. A potential apprentice seeking to join a 
program should have access to as much information as possible to help 
them make such an important career decision, including any costs 
associated with participating in or completing the program, the types 
of training and instruction they can expect to receive, what will be 
expected of them in order to complete the program, and what completion 
of the program will mean for their near- and longer-term career 
development.
    The agreement also serves as an assurance to the potential 
apprentice, as well as the Department and any other entities with a 
role in overseeing a program, that the program sponsor will abide by 
the terms and conditions of the registered apprenticeship program as 
laid out in the agreement. As an important tool for achieving optimal 
transparency and accountability within the National Apprenticeship 
System, the apprenticeship agreement is central to registered 
apprenticeship and thus represents an important piece of the 
Department's focus in proposing strengthened transparency, 
accountability, and worker protections in the part 29 regulations.
    The current regulatory provisions governing the apprenticeship 
agreement are at 29 CFR 29.7. The Department proposes to move that 
provision to Sec.  29.9, retaining and reorganizing many of the 
existing provisions and adding further measures to strengthen 
transparency, accountability, and worker protections within the 
National Apprenticeship System.
    The apprenticeship agreement is intended to clearly encompass all 
fundamental aspects of the terms and conditions of the registered 
apprenticeship program, as described in the requirements below, and 
cannot be modified or altered by a subsequent agreement that 
contravenes the requirements of this part.
    Proposed Sec.  29.9(a) would require that all apprenticeship 
programs registered by a Registration Agency develop and establish a 
written apprenticeship agreement that contains the terms and conditions 
of the employment and training of the apprentice, and that such 
agreement must be signed by the parties prior to the start of the 
apprenticeship term. Proposed Sec.  29.9(a) incorporates existing text 
currently at Sec.  29.7 that establishes the requirement for an 
apprenticeship agreement setting forth the terms and conditions of the 
employment and training of the apprentice and existing text at Sec.  
29.7(a) requiring the signatures of the relevant parties. It would 
further require the signature of a participating employer in a group 
program that has adopted the sponsor's standards of apprenticeship 
through a program standards adoption agreement. This is to ensure that 
the participating employer understands the terms and conditions of the 
apprentice's employment and training and can be held accountable by the 
apprentice or a Registration Agency for any violations of the terms and 
conditions of the

[[Page 3163]]

agreement. This requirement would be specific to participating 
employers in group programs with a standards adoption agreement. 
Further, this paragraph would clarify that the agreement must be signed 
prior to the start of the apprenticeship term. This clarification would 
add a temporal requirement to the apprenticeship agreement in that it 
must be agreed to by the parties prior to the start of the 
apprenticeship. This would be consistent with the intent of the 
apprenticeship agreement to set forth the terms of the apprentice's 
training and employment, would ensure that there is a valid operative 
agreement governing the relationship of the parties at the start of the 
program, and would allow the apprentice to review and understand the 
terms of the program before joining the program.
    Proposed section 29.9(b) contains a new requirement that, prior to 
signing the apprenticeship agreement, an apprentice who has been 
admitted to the apprenticeship program must be furnished by the program 
sponsor with a copy of both the proposed apprenticeship agreement and 
the program's standards of apprenticeship, and must also be provided 
with a reasonable opportunity to inspect and review the content of 
those documents. Proposed section 29.9(b) also stipulates that, after 
the apprenticeship agreement has been signed by the apprentice, the 
sponsor, and any other relevant parties, the sponsor must transmit or 
deliver to the apprentice a copy of the executed apprenticeship 
agreement and the program's standards of apprenticeship not later than 
the starting date of the apprenticeship. The Department takes the view 
that this disclosure provision is necessary to ensure that apprentices 
are made fully aware of the terms and conditions of their employment 
before entering into an apprenticeship agreement with the sponsor or 
participating employer and beginning their work as an apprentice. The 
inclusion of this disclosure requirement is also a recognition that 
apprenticeship agreements entered into between apprentices and sponsors 
or participating employers often involve a significant imbalance of 
bargaining power between the contracting parties, and that apprentices 
are thus more susceptible to entering into an apprenticeship agreement 
without an understanding of the terms of the contract or, in some 
circumstances, as a result of coercion, deception, and other forms of 
procedural unconscionability. The Department further believes that 
adherence to this disclosure requirement should help to ensure that the 
apprenticeship agreement is procedurally lawful, and that the 
apprentice has entered into the agreement freely, voluntarily, and with 
a reasonable opportunity to review its terms and understand its 
meaning. The Department has refrained from establishing in proposed 
Sec.  29.9(b) a uniform, minimum duration of time that would constitute 
``a reasonable opportunity to inspect and review the content'' of the 
apprenticeship agreement and the program's standards of apprenticeship; 
in this connection, the Department has abstained from specifying such a 
quantitative requirement in order to provide program sponsors with some 
measure of flexibility in determining what would constitute an 
appropriate period of time for an apprentice to review the documents, 
based upon a given set of facts and circumstances. However, the 
Department invites comments on whether the establishment of a specified 
minimum duration of time for an apprentice to review these documents 
would be appropriate in this rulemaking, and, if so, what that duration 
of time should be.
    The Department understands that the proposed requirement to include 
the standards of apprenticeship in the apprenticeship agreement may 
appear to be duplicative, as such standards include similar provisions 
such as the progressive wage schedule and associated program costs. 
However, it is important to include the standards in the agreement to 
make compliance with the standards part of the contract between the 
apprentice, program sponsor, and participating employer. Moreover, 
because the standards could be incorporated by reference, the 
apprenticeship agreement would not need to repeat verbatim the content 
of the standards, but rather would only need to provide the information 
described in paragraphs (c)(1) through (3). The proposed requirement to 
give the apprentice both the signed apprenticeship agreement and the 
program standards accompanies the requirement in proposed Sec.  
29.9(c)(4) to incorporate the program standards into the apprenticeship 
agreement either directly or by reference and would expand upon the 
current apprenticeship agreement requirement to incorporate by 
reference the standards of apprenticeship.
    Proposed Sec.  29.9(c) would contain the minimum requirements of 
the apprenticeship agreement. It would incorporate many of the current 
requirements in Sec.  29.7. As discussed above, existing Sec.  29.7(a) 
would now be a part of proposed Sec.  29.9(a).
    Proposed Sec.  29.9(c)(1) would require apprentice contact 
information and identifying information for the apprentice, including 
the apprentice's date of birth and, on a voluntary basis, their Social 
Security number. Both the date of birth and the voluntary provision of 
the apprentice's Social Security number are in the current requirement 
at Sec.  29.27(b). Proposed Sec.  29.9(c)(1) would also require that 
the apprentice's contact information be provided. This would be 
consistent with current practice and necessary for the administration 
of the apprenticeship program and registration of the agreement. 
Apprentices may not be denied program entry or subjected to any adverse 
action taken by a program sponsor if an apprentice refuses to disclose 
their Social Security number.
    Proposed Sec.  29.9(c)(2) would require that the apprenticeship 
agreement contain the contact information for the Registration Agency, 
the program sponsor, and the participating employer(s). This 
requirement would be similar to the existing requirement in Sec.  
29.7(c), with the addition of the contact information for any 
participating employers that are signatories to the agreement at the 
time the apprenticeship agreement is signed. However, the 
apprenticeship agreement would not need to be modified or re-signed if 
any participating employers join the registered apprenticeship program 
after the apprenticeship agreement is signed because those 
participating employers agree to comply with the existing program 
standards and are bound by the program adoption agreement to employ 
apprentices based on the terms of the apprenticeship agreement. The 
Department is proposing this while mindful of the potential burden of 
re-signing apprenticeship agreements for each program standards 
adoption agreement that an apprentice may be employed by. The 
Department is interested in any comments on this proposed flexibility, 
or any comments recommending a requirement that the agreements be re-
signed as a transparency feature for an apprentice.
    Proposed Sec.  29.9(c)(3) would incorporate the existing 
requirements in Sec.  29.7 to include the occupation in which the 
apprentice is to be trained as well as the associated work process 
schedule and related instruction outline.
    Proposed Sec.  29.9(c)(4) would require that the program's 
standards of apprenticeship be incorporated into the apprenticeship 
agreement either directly or by reference. This requirement is in

[[Page 3164]]

current Sec. Sec.  29.5(b)(11) and 29.7(i) and would be carried forward 
in this proposal.
    Proposed Sec.  29.9(c)(5) is new and would require that the 
apprenticeship agreement contain a description of the respective roles, 
duties, and responsibilities of the parties to the apprenticeship 
agreement. This description would need to include the responsibility of 
sponsors and any participating employers to provide information to 
apprentices about their rights and protections under Federal, State, 
and local laws, including their right to file complaints with the 
applicable Registration Agency. This proposed provision would capture 
an important element of the apprenticeship agreement--that the parties 
have clearly defined roles and responsibilities--and would emphasize 
that a particularly important responsibility of the sponsors and 
employers is to ensure that apprentices are aware of their rights under 
the apprenticeship agreement and applicable laws. This proposed 
provision would also align with the 2023 Quality Apprenticeships 
Recommendation of the ILO, specifically Conclusion 18(a), which advises 
that Member States should ensure that an apprenticeship agreement 
``clearly defines the parties' respective roles, rights and 
obligations.'' \109\ Explicitly requiring that the agreement include 
information about their rights and the complaint filing process would 
better protect the apprentice by easily allowing them to exercise their 
rights if necessary. In light of the Department's mandate to protect 
the welfare of apprentices, the Department thinks this is an important 
safeguard.
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    \109\ ILO, ``Quality Apprenticeships Recommendation, 2023'' (ILO 
Recommendation No. 208), Conclusion 18(a), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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    Proposed Sec.  29.9(c)(6) would require that the agreement contain 
the dates of the registered apprenticeship program, including the 
beginning date and expected duration of the apprenticeship program, the 
beginning date of the on-the-job training, and the duration of any 
probationary period of the apprenticeship program. This would 
incorporate requirements in existing Sec.  29.7(d) and (h) regarding 
dates, expected duration of the apprenticeship, and the length of the 
probationary period. By requiring disclosure of the start date of the 
program and start date of the on-the-job training portion of the 
program apprentices would have more complete information and 
expectations of when they will begin the paid on-the-job training 
portion of the program. In addition to these key dates, the 
apprenticeship agreement would also inform the apprentice of the 
expected duration of the registered apprenticeship program in addition 
to the duration of any probationary period.
    Proposed Sec.  29.9(c)(7) would require a detailed statement of the 
entry wage, subsequent graduated scale of increasing wages to be paid 
to the apprentice over the term of the apprenticeship, the 
journeyworker wage, and any fringe benefits. This requirement would 
incorporate the existing requirement in Sec.  29.7(g) but would add the 
requirement that the wages correspond to specific periods of time: an 
entry wage, a graduated scale of wages that correspond to the 
apprentice's attainment of occupational skills and competencies 
throughout the registered apprenticeship program, and the journeyworker 
wage that the apprentice can expect to receive upon their successful 
completion of the apprenticeship. This added requirement in the 
apprenticeship agreement would align with the program standards 
requirements for a graduated schedule of increasing wages, from entry 
wage to journeyworker wage, in proposed Sec.  29.8(a)(17)(B) and is 
intended to provide explicit notice to the apprentice of the expected 
cadence of wage increases that corresponds to the acquisition of 
specific occupational skills and competencies. It would also give 
notice to the apprentice of fringe benefits provided as a part of the 
registered apprenticeship program.
    Proposed Sec.  29.9(c)(8) would require that the apprenticeship 
agreement disclose the expected minimum number of hours that are 
allocated by the program to the on-the-job training component and the 
related instruction component during the apprenticeship term. In 
practice, because progress in the program is measured through both time 
in on-the-job training and competency attainment, this may include an 
approximate range of hours from the minimum to a maximum number of on-
the-job training hours to obtain proficiency in the occupation. This 
proposed provision would replace existing Sec.  29.7(e) and align with 
the program standards requirement in proposed Sec.  29.8(a)(4) 
regarding the minimum duration of the on-the-job training and related 
instruction components of the registered apprenticeship program.
    Proposed Sec.  29.9(c)(9) would be a new requirement for the 
apprenticeship agreement to include a description of the methods used 
during the course of the apprenticeship to measure progress on 
competency attainment and the program's end-point assessment. The 
Department emphasizes here that the methods should be inclusive and 
accessible to all apprentices, including those with disabilities and 
others from underserved communities. This proposed requirement would 
add transparency to the apprenticeship agreement regarding the 
assessment and evaluation of apprentices, both on a continuous basis 
throughout the apprenticeship and at the end of the registered 
apprenticeship program. It corresponds to the new requirements at 
proposed Sec.  29.8(a)(10) and (11) regarding regular and end-point 
assessments in the program standards of apprenticeship. As with many 
other requirements, the Department thinks that adding this information 
into the apprenticeship agreement would ensure transparency to the 
apprentice, who would have a better understanding of the program they 
are joining, what will be expected of them, and, in this case, how they 
will be assessed.
    Proposed Sec.  29.9(c)(10) would be a new requirement that the 
apprenticeship agreement include a description of any supportive 
services that may be available to the apprentice including childcare, 
transportation, equipment, tools, or any other supportive service 
provided by the sponsor or a partnering organization. This proposal 
would provide transparency to the apprentice of any supports they may 
receive during their participation in the program. Such supports may be 
arranged through partner organizations or in coordination with the 
workforce development system.
    Proposed Sec.  29.9(c)(11) would be a new requirement that the 
apprenticeship agreement disclose the nature and amount of any 
unreimbursed costs, expenses, or fees that the apprentice may incur 
during their participation in the registered apprenticeship program. 
This corresponds with the proposed Sec.  29.8(a)(18) requirements in 
the standards of apprenticeship regarding disclosure and conditions of 
any unreimbursed costs, expenses, or fees incurred by the apprentice 
during the registered apprenticeship program. The Department discussed 
above its reasons for requiring this information in the program 
standards. This proposed addition here would give the apprentice 
explicit notice of such costs, expenses, or fees so that they have 
necessary and relevant information regarding their wages and costs 
during the registered apprenticeship program and can plan accordingly. 
It would also ensure

[[Page 3165]]

transparency to assist in protecting the apprentice from hidden or 
arbitrary costs, fees, or expenses.
    Proposed Sec.  29.9(c)(12) would be a new requirement that the 
apprenticeship agreement must describe any recognized postsecondary 
credits, credentials, and occupational qualifications that the 
apprentice will receive or be eligible to receive upon successful 
program completion, as well as a description of any additional 
conditions or requirements that the apprentice must fulfill to satisfy 
any applicable Federal, State, or local qualification and licensure 
requirements to engage in the occupation. This proposed inclusion in 
the apprenticeship agreement corresponds with the proposed standard at 
Sec.  29.8(a)(8) to include a description of any interim credentials, 
occupational qualifications, licenses, credentials, or certification, 
or postsecondary credit that an apprentice may receive or be eligible 
to receive upon successful completion of the registered apprenticeship 
program. This provision would provide notice to the apprentice of 
expected outcomes throughout and at the conclusion of the registered 
apprenticeship program and would allow the apprentice to understand the 
full benefits of the apprenticeship program.
    Proposed Sec.  29.9(c)(13) would require a statement in the 
agreement that the parties will adhere to the applicable requirements 
of 29 CFR part 30 as amended and, where applicable, an approved State 
EEO plan. This would replace the requirement in Sec.  29.7(j) to 
include an equal opportunity statement with a statement instead 
regarding adherence to part 30 and any applicable State EEO plan. This 
proposed change is meant to explicitly reference the requirements in 
part 30 in their entirety to not only avoid duplication but also 
clarify that the expectation is for sponsors and employers to adhere to 
all applicable requirements.
    Proposed Sec.  29.9(c)(14) would require a statement addressing 
whether the apprentice is paid wages and any fringe benefits during the 
related instruction component of the program and, if so, what the wage 
rate and fringe benefits are, and whether the related instruction is 
provided during work hours. This requirement would be similar to the 
existing requirement in Sec.  29.7(g) that the apprenticeship agreement 
specify whether related instruction is compensated; however, it would 
more precisely require that the apprenticeship agreement address both 
any wages (i.e., not some other form of compensation) and fringe 
benefits and whether related instruction occurs during work hours. This 
would provide notice to the apprentice of whether to expect related 
instruction to occur on their own time and, regardless of when related 
instruction takes place, whether it is paid and at what rate. As 
discussed in proposed Sec.  29.8(a)(9), sponsors must consider, as a 
part of their programs' standards of apprenticeship, whether to pay 
wages for related instruction. Since registered apprenticeship is an 
``earn-and-learn'' model, this provision would provide transparency to 
the apprentice about when wages will be received, what wages will be 
received, and during what component(s) of the program. This provision 
would also make transparent a schedule of paid and unpaid time an 
apprentice is expected to be present to fulfill learning and worksite 
productivity objectives when attending related instruction and on-the-
job training. Making this information available to apprentices for 
transparency purposes would provide apprentices with the necessary 
information to make financial decisions, seek out resources or 
supportive services through a program sponsor to attend related 
instruction or compensate costs incurred, and manage time to 
accommodate responsibilities, such as providing care to family members.
    Proposed Sec.  29.9(c)(15) would be the existing requirement in 
Sec.  29.7 that the apprenticeship agreement include the contact 
information of the appropriate party to address complaints within the 
program. As discussed below, in addition to filing complaints with the 
program, apprentices may make complaints to a Registration Agency 
consistent with proposed Sec.  29.17, and information on how to do so 
would need to be included in the apprentice agreement as required by 
proposed Sec.  29.9(c)(5).
    Proposed Sec.  29.9(c)(16) is new and would require the 
apprenticeship agreement to contain a description of the processes and 
procedures that the sponsor will utilize to grant advanced standing or 
credit to apprentices. The processes and procedures in the 
apprenticeship agreement would need to be the same as in the sponsor's 
approved standards. This proposed provision would ensure that 
apprentices are aware of the processes and procedures in place for 
receiving advanced standing before the apprentice signs the 
apprenticeship agreement.
    Proposed Sec.  29.9(d) is new and would prevent sponsors and 
participating employers from including in the apprenticeship agreement 
or otherwise imposing on apprentices a non-compete provision or similar 
provision that would restrict an apprentice's labor market mobility and 
limit competition among employers. Proposed Sec.  29.9(d) would include 
a prohibition on any provisions restricting the apprentice's ability to 
seek or accept employment with another employer prior to the completion 
of the registered apprenticeship program. The substance of a non-
compete provision may vary between employers and jurisdictions, but the 
general purpose of a non-compete provision is to restrict the ability 
of a worker to compete with their current employer for some specified 
period of time, often in a specified geographic area.<SUP>110 111</SUP> 
Non-compete provisions undermine workers' mobility and rights, and the 
proposal to restrict them is meant to further protect the safety and 
welfare of apprentices and to promote competition for labor services. 
The Department has tentatively determined that where a non-compete 
provision seeks to restrict the apprentice's labor market mobility, 
including prior to the completion of the registered apprenticeship 
program, the inclusion of a non-compete provision is impermissible 
because it harms the apprentice by preventing them from finding or 
accepting employment. Moreover, the use of non-compete provisions by 
program sponsors or participating employers in the sponsor's program 
can substantially undermine a key purpose of registered 
apprenticeships, which is to provide a worker with marketable and 
portable occupational skills when the apprenticeship has concluded.
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    \110\ U.S. Department of the Treasury, Office of Economic 
Policy, ``Non-compete Contracts: Economic Effects and Policy 
Implications,'' Mar. 2016, https://home.treasury.gov/system/files/226/Non_Compete_Contracts_Econimic_Effects_and_Policy_Implications_MAR2016.pdf.
    \111\ U.S. Department of the Treasury, ``The State of Labor 
Market Competition,'' Mar. 7, 2022, https://home.treasury.gov/system/files/136/State-of-Labor-Market-Competition-2022.pdf.
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    At the turn of this century, the use of non-compete provisions in 
employment contracts was typically concentrated within higher paying 
occupations requiring advanced levels of education; today, however, 
such restrictive employment covenants have increasingly been utilized 
by employers for workers entering jobs in occupations that pay 
considerably less.\112\ Moreover,

[[Page 3166]]

when such contractual provisions are enforced, they have been shown to 
harm lower income workers in particular by undermining employment 
opportunities that can provide greater economic stability and 
mobility.\113\ A number of States have prohibitions on non-compete 
provisions that disproportionately impact workers who are paid an 
hourly wage,\114\ make equal or less than an hourly wage of $15 
($31,200 annually),\115\ or work for technology businesses.\116\ 
Safeguarding the ability for an apprentice to traverse the labor market 
with employable skills and competencies attained while in a registered 
apprenticeship program has several benefits that accrue to apprentices 
and the communities where they live and work. Prohibiting such 
restrictions on apprentices' labor market mobility enables them to 
pursue the broadest possible scope of employment opportunities, and 
also benefits the communities where apprentices live and work.
---------------------------------------------------------------------------

    \112\ See ibid. Note: Non-compete provisions are common among 
workers who report lower rates of trade secret possession: 15 
percent of workers without a 4-year college degree are subject to 
non-compete provisions, and 14 percent of workers earning less than 
$40,000 are subject to non-compete provisions. This is true even 
though workers without 4-year degrees are half as likely to possess 
trade secrets as those with 4-year degrees, and workers earning less 
than $40,000 possess trade secrets at less than half the rate of 
their higher earning counterparts.
    \113\ Ayesha Bell Hardaway, ``The Paradox of the Right to 
Contract: Noncompete Agreements as Thirteenth Amendment 
Violations,'' 39 Seattle U. L. Rev. (2016), 957, 959, https://digitalcommons.law.seattleu.edu/cgi/viewcontent.cgi?article=2334&context=sulr.
    \114\ Nevada AB276 (2017) prohibits a non-compete provision from 
applying to an employee who is paid solely on an hourly wage basis, 
exclusive of any tips or gratuities.
    \115\ Maryland SB 328 (2019) makes null and void any non-compete 
or conflict of interest provision in an employment contract that 
restricts the ability of an employee who earns equal to or less than 
$15 per hour or $31,200 annually to enter into employment with a new 
employer or to become self-employed in the same or similar business.
    \116\ Hawaii HB 1090 (2015) prohibits non-compete provisions 
among employees of technology businesses.
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    Prohibiting the inclusion of a non-compete provision in the 
apprenticeship agreement would align with the Department's broader goal 
of ensuring good jobs, increased earnings for workers, and competition 
among employers. A Federal Trade Commission (FTC) proposal that would 
ban non-compete provisions more broadly in the American economy 
estimated a potential increase in workers' earnings by nearly $300 
billion per year.\117\ Though the Department's proposal has a more 
limited reach than the FTC's proposal, a review of that agency's 
estimates suggests that restricting non-compete provisions in the 
Department's proposal would lead to an increase in apprentice earnings. 
While the Department's proposal fundamentally is designed to help 
workers ensure their labor is mobile, the Department believes such a 
ban on non-compete provisions could ultimately benefit sponsors and 
employers as well since they would have access to a greater pool of 
qualified workers. The Department is also interested in comments on how 
the proposal to restrict non-compete provisions would impact employers 
in the National Apprenticeship System.
---------------------------------------------------------------------------

    \117\ Federal Trade Commission, ``FTC Proposes Rule to Ban 
Noncompete Clauses, Which Hurt Workers and Harm Competition,'' Jan. 
5, 2023, https://www.ftc.gov/news-events/news/press-releases/2023/01/ftc-proposes-rule-ban-noncompete-clauses-which-hurt-workers-harm-competition.
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    Proposed Sec.  29.9(e) would prevent including in the 
apprenticeship agreement or otherwise imposing on apprentices a non-
disclosure provision that would have the effect of preventing the 
worker from working in the same field after the conclusion of the 
worker's employment with the employer, or that would restrict an 
apprentice's ability to file a complaint with a Registration Agency or 
other governmental body concerning possible violations of this part or 
of 29 CFR part 30. Non-disclosure provisions, more acutely, can have 
the effect of silencing workers if and when they experience harassment, 
discrimination, or violations of worker rights.\118\ This provision 
would serve to promote accountability by ensuring that all apprentices 
can file complaints concerning harassment and discrimination in the 
workplace.
---------------------------------------------------------------------------

    \118\ One in three women has faced sexual harassment in the 
workplace during her career, and an estimated 87 to 94 percent of 
those who experience sexual harassment never file a formal 
complaint; additionally, sexual harassment in the workplace forces 
many women to leave their occupation or industry or pass up 
opportunities for advancement. See Select Task Force on the Study of 
Harassment in the Workplace, ``Report of Co-Chairs Chai R. Feldblum 
& Victoria A. Lipnic,'' June 2016, https://www.eeoc.gov/select-task-force-study-harassment-workplace.
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    Non-disclosure provisions, like non-compete provisions, vary in 
substance, but they share a common purpose in seeking to prevent 
disclosure of information designated as confidential by the 
agreement.\119\ The Department notes that this proposed prohibition on 
non-disclosure provisions would apply to all circumstances in which a 
non-disclosure provision would effectively prevent the worker from 
working in the same field or effectively restrict the worker from 
filing a complaint alleging a violation of the workers' rights. 
Regardless of the intent of the non-disclosure provision, if it would 
have such an effect, then it would be prohibited. Notwithstanding these 
restrictions, however, a sponsor or participating employer may include 
a non-disclosure provision that relates to the protection of the 
sponsor's or participating employer's confidential business information 
or trade secrets, such as in the IT industry where an employee could 
otherwise disclose their programming source codes. This provision 
intends to protect an apprentice's future job prospects while also 
recognizing the need of businesses to safeguard confidential business 
information.
---------------------------------------------------------------------------

    \119\ Rachel Arnow-Richman, Gretchen Carlson, Orly Lobel, Julie 
Roginsky, Jodi Short, and Evan Starr, ``Supporting Market 
Accountability, Workplace Equity, and Fair Competition by Reining in 
Non-Disclosure Agreements,'' Federal of American Scientists, Jan. 
31, 2022, https://www.dayoneproject.org/ideas/supporting-market-accountability-workplace-equity-and-fair-competition-by-reining-in-non-disclosure-agreements.
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    Proposed Sec.  29.9(f) would require the program sponsor to submit 
a copy of the executed apprenticeship agreement for each apprentice 
registered to the program's Registration Agency within 30 days of 
execution. This change, which would be a reduction in time from the 45 
days currently required, is being proposed as part of a broader change 
to require more expedited reporting to OA from 45 days to 30 days, 
which the Department thinks is reasonable given the advancements in 
technology available to sponsors and the ability to use RAPIDS, which 
provides for these submissions electronically. In proposing this 
change, the Department expects sponsors to take active steps to provide 
all appropriate information required in the agreement. Agreements 
submitted with incomplete or inaccurate information would not be deemed 
to have met this requirement. Further, in situations in which a sponsor 
submits an apprenticeship agreement that covers multiple apprentices 
and contains a list of signatories, the sponsor would need to provide 
the updated list of signatories to the apprenticeship agreement within 
30 days.
    Proposed Sec.  29.9(g) is based on an existing requirement that the 
apprenticeship agreement may be cancelled during the probationary 
period specified in the agreement by either party without cause and 
would modify the current provision relating to this topic found in the 
existing regulation at Sec.  29.7(h)(1). As discussed below, the 
current language in Sec.  29.7(h)(1) regarding written notice to the 
Registration Agency would be relocated to proposed Sec.  29.25(a)(2).
    Proposed Sec.  29.9(h) states that after the probationary period of 
the apprenticeship concludes, the apprenticeship agreement: (1) may be 
cancelled at the request of the apprentice at any time; or (2) may be

[[Page 3167]]

suspended or cancelled by the program sponsor only for good cause, and 
after reasonable opportunity for corrective action. When terminating an 
agreement, the sponsor would need to provide written notice to the 
apprentice explaining the cause for the termination and provide written 
notice to the Registration Agency of the termination. These 
requirements would incorporate the existing requirements in Sec.  
29.7(h)(2) with minor rewording that would not change the substance of 
the requirement. Examples of good cause could include misconduct, a 
violation of a sponsor's policies, or continuous and documented poor 
performance. The Department is interested in comments that can provide 
clarity for the Department and regulated community on what a ``good 
cause'' cancellation by the sponsor should entail. These requirements 
would incorporate the existing requirements in Sec.  29.8(a)(12) with 
minor rewording that would not change the substance of the requirement. 
This provision would ensure that the apprentice is aware of their right 
to cancel the apprenticeship agreement at any time and that the 
apprentice is notified of and given a chance to address any concerns or 
issues raised by the sponsor about the apprentice's performance or 
conduct. It would also require that sponsors provide written notice 
explaining the decision to cancel the apprenticeship agreement, which 
would mean the termination of the apprentice's participation in the 
registered apprenticeship program. As is currently required, the 
sponsor would also need to provide written notice to the Registration 
Agency of the cancellation of the apprenticeship agreement and 
termination of the apprentice from the registered apprenticeship 
program so that they are aware of the matter and can take any action 
they think may be appropriate.
Section 29.10--Program Registration
    The ``Program registration'' section would incorporate requirements 
from existing Sec. Sec.  29.3 and 29.6 for program registration and the 
provisional registration of new programs while adding further 
provisions containing the requirements for a prospective program 
sponsor's application for apprenticeship program registration and the 
process for determination, provisional and permanent registration, and 
ongoing program compliance. Provisions in this section would describe 
the required contents of the application, such as the inclusion of a 
work process schedule that has been developed for an occupation 
suitable for registered apprenticeship as determined by the 
Administrator. This section would describe new requirements that a 
prospective program sponsor must include in their application, such as 
a written plan of recruitment sources, information on a potential 
program's financial capacity for program sustainability, and disclosure 
of violations and actions taken to correct violations. Requirements for 
applications described in this section would also include a written 
acknowledgement of whether or not the program would participate in 
partnership through such mechanisms as a collective bargaining 
agreement and how the program sponsor intends to align with 29 CFR part 
30 requirements. A Registration Agency's determination process and 
subsequent issuance of a Certificate of Registration for provisional 
approval if requirements are met would be described in this section. 
This section would also include the requirements for permanent approval 
along with the necessary compliance measures for programs to meet 29 
CFR parts 29 and 30 requirements and maintain at least one apprentice 
with a given timeframe.
    Proposed Sec.  29.10(a) would contain the requirements for 
submitting an application for registration of a new apprenticeship 
program. The Department anticipates electronic submission of 
applications, which would lead to a more efficient process, increased 
timeliness of reviews, and improved technical assistance. The 
Department has successfully launched a web-based platform called 
Standards Builder,\120\ which has also been leveraged by SAAs. Current 
regulations do not require that standards be submitted electronically 
and this proposed rule would change that by mandating electronic 
submission. The Department anticipates that requiring submissions 
electronically would result in better customer service, enable 
technical assistance to be provided electronically and instantly, and 
could yield more responsive approvals of programs that meet the 
requirements of this part and part 30. The Department anticipates 
continuing to expand and refine its development of web-based tools to 
assist in the registration process, and requiring electronic 
submissions would allow OA to focus its efforts more on providing 
sponsors technical assistance than on reviewing and providing feedback 
through nonelectronic means.
---------------------------------------------------------------------------

    \120\ OA, ``Standards Builder,'' https://www.apprenticeship.gov/employers/registered-apprenticeship-program/register/standards-builder (last visited July 20, 2023).
---------------------------------------------------------------------------

    Proposed Sec.  29.10(a)(1) through (3) would require a prospective 
program sponsor to submit: (1) the work process schedule and related 
instruction outline that is consistent with an occupation deemed 
suitable for registered apprenticeship by the Administrator, set forth 
in proposed Sec.  29.7; (2) the standards of apprenticeship for the 
proposed program, set forth in proposed Sec.  29.8; and (3) the 
apprenticeship agreement for the registered apprenticeship program, set 
forth in proposed Sec.  29.9.
    Proposed Sec.  29.10(a)(1) would explicitly require that the 
occupation has been determined suitable for registered apprenticeship. 
OA maintains a list and sample work process schedules of occupations 
suitable for registered apprenticeship, which is available at OA's 
Occupation Finder Tool.\121\ If the sponsor is submitting a program 
that is in an occupation that has not been deemed suitable for 
registered apprenticeship, the sponsor would need to request a 
suitability determination in accordance with the process in proposed 
Sec.  29.7. This is a fundamental first step for any program 
registration: if the occupation has not been deemed suitable for 
registered apprenticeship, then the prospective program is not eligible 
for registration. The proposal would also require the submission of a 
work process schedule and related instruction outline that is 
consistent with an occupation deemed suitable for registered 
apprenticeship by the Administrator so that a Registration Agency can 
assess the alignment of the work process schedule and related 
instruction with the occupation in which the apprentice is training, 
per proposed Sec.  29.10(b)(1) described below. The Department notes 
that a sponsor may submit standards for multiple occupations as part of 
their submission, and if so, would need to submit work process 
schedules and related instruction outlines for every occupation for 
which it is seeking program registration. There would be no prohibition 
on a sponsor submitting an application for registration under this 
section along with a request for a suitability determination under 29 
CFR 29.7. However, because suitability is a threshold requirement for 
approval of the standards, OA would not review the proposed standards 
until the suitability determination has been approved. The

[[Page 3168]]

Department notes that often during a suitability process, changes may 
be required to ensure the occupation meets the requirements of industry 
described in proposed Sec.  29.7, which would in turn require changes 
to the application. Submitting the suitability request for review 
before the standards would be the more efficient approach.
---------------------------------------------------------------------------

    \121\ OA, ``Explore Approved Occupations for Registered 
Apprenticeship,'' https://www.apprenticeship.gov/apprenticeship-occupations (last visited July 20, 2023).
---------------------------------------------------------------------------

    Proposed Sec.  29.10(a)(4) is a new provision that would require a 
prospective program sponsor to submit a written plan for the equitable 
recruitment and retention of apprentices, including those from 
underserved communities. This provision is intended to ensure that all 
registered apprenticeship programs, including those that are not 
subject to the affirmative action requirements of 29 CFR part 30, 
develop and implement intentional and achievable strategies for 
optimizing apprenticeship program participation by individuals who face 
persistent structural or environmental barriers to program entry or 
retention, such as persons from underserved communities. For example, a 
sponsor's plan could detail how it intends to leverage local 
partnerships with third-party entities such as intermediaries, State or 
local workforce development boards, one-stop centers, pre-
apprenticeship programs, educational institutions, labor unions, 
community-based organizations, or regional economic development bodies 
to facilitate access to a suite of supportive services for its 
apprentices, such as the provision of childcare services, and 
transportation. The provision of supportive services to individuals 
from underserved communities often plays a critical role in enabling 
such persons to enroll in, and complete, a registered apprenticeship 
program, thereby optimizing the recruitment and retention of a talented 
and motivated cadre of apprentices who reflect the demographic 
composition of the community in which the sponsor operates.
    Potential program sponsors may utilize technical assistance from 
Registration Agency field representatives in helping to identify 
potential community or intermediary partnerships. Potential program 
sponsors are strongly encouraged to develop effective partnerships with 
educational and workforce intermediary organizations to form the 
foundation of a coherent strategy for the equitable recruitment and 
retention of apprentices. In particular, the formation of close 
partnerships between registered apprenticeship programs and local pre-
apprenticeship programs can be an effective vehicle for optimizing 
sponsor access to untapped pools of talent, as many of the participants 
in pre-apprenticeship programs are drawn from underserved communities. 
Partnerships with one-stop centers, workforce boards, and community 
organizations can also be particularly advantageous for those program 
sponsors with limited financial resources, as such networks can provide 
sponsors with a cost-effective strategy for gaining access to 
supportive services provided by such third parties. Local partnerships 
with intermediary organizations can also assist sponsors in advancing 
equity goals by providing access to funding sources that can alleviate 
the cost burdens typically associated with the operation of a 
registered apprenticeship program (such as for tuition, books, 
supplies, and equipment); these costs often pose barriers to program 
entry and retention for individuals, particularly those from 
underserved communities, when they are passed along to such persons by 
apprenticeship programs with limited resources.
    Proposed Sec.  29.10(a)(5) is a new provision that would require 
that a prospective program sponsor submit information showing that it 
possesses and can maintain the financial capacity and other resources 
necessary to operate the proposed program on a sustained basis. For 
example, the prospective program sponsor may submit a narrative 
explaining its financial capacity to operate a program, in particular 
its ability to ensure pay to apprentices over a sustained period. In 
instances where employers are sponsors, they could demonstrate this by 
identifying their intent to hire and train apprentices in the program, 
and through the wages they pay apprentices. Additionally, this 
provision would be particularly useful for programs where the employers 
are not the sponsors of programs, and the payment to apprentices would 
be made through a group program with participating employers. Among 
other considerations, this provision is intended to protect against the 
proliferation of registered apprenticeship programs that are initially 
set up and financed through a grant program but lack the financial 
resources, consistent funding streams, or both that would be necessary 
to maintain a registered apprenticeship program over an extended period 
beyond the life cycle of a grant.
    The Department anticipates that the submission of a forward-looking 
narrative around the sponsor or sponsor organization's financial 
planning, funding streams, and overall financial solvency would satisfy 
the financial integrity provision at proposed Sec.  29.10(a)(5). The 
Department primarily wants to see some discussion in the application 
about how the sponsor or sponsor's organization intends to operate and 
sustain itself, whether it is an employer sponsor that is ensuring it 
has the necessary in-house infrastructure or partnerships, a community 
college sponsor ensuring it has the sufficient commitment of employers 
and resources to provide related instruction, or other entities such as 
intermediary sponsors indicating they have the necessary programmatic 
infrastructure and resources to maintain the programmatic requirements. 
Given its role in protecting the safety and welfare of apprentices, the 
Department envisions this requirement to ensure the sponsor is 
intentional in its commitment and securing of resources for the 
employment and training of apprentices in a registered apprenticeship 
program. The Department is interested in public comments on the value 
and feasibility of this proposed financial integrity provision, as well 
as additional examples or suggestions regarding the information 
sponsors may submit to demonstrate financial solvency.
    The purpose of this provision is to ensure that prospective program 
sponsors are financially solvent and can maintain financial integrity, 
transparency, and accountability to sustain program operations. In 
particular, if the program anticipates relying on grants or other 
resources, such as WIOA, to fund some of the program operations, it 
would be expected to disclose this information. Workforce investments, 
such as investments in industry intermediaries, have shown promise in 
expanding registered apprenticeship models to new industries; however, 
many of these investments are designed to assist in starting a program. 
Over the long term, programs should not need to rely on grant funds for 
their day-to-day operations.
    Proposed Sec.  29.10(a)(6) is a new provision that would require a 
prospective program sponsor to submit with their application a 
disclosure in writing of all instances where a Federal, State, or local 
government agency has issued a final agency determination that the 
prospective sponsor (or any of its officers or employees) has violated 
any applicable laws pertaining to occupational safety and health, fair 
labor standards (including wage and hour requirements), financial 
mismanagement or abuse, EEO, protections for employees against 
harassment or assault, or other

[[Page 3169]]

applicable laws governing workplace practices or conduct; such 
disclosure would need to include a description of the violation(s), as 
well as the actions taken by the prospective sponsor to remedy the 
violation(s). This requirement would further the Department's mission 
in safeguarding the welfare of apprentices because a prospective 
sponsor's violations of laws governing workplace practices or conduct 
is relevant to a determination that the prospective sponsor is able to 
provide a safe training environment for apprentices and to a 
determination that the prospective sponsor will abide by the terms of 
the program standards and apprenticeship agreement, including payment 
of the required wages and benefits. The Department notes that any 
information submitted by a prospective sponsor in response to this 
requirement would be considered in the Administrator's review of an 
application and could provide sufficient grounds for denial of 
registration by the Department. The Department would use this 
information as part of its evaluation in determining whether a 
prospective program sponsor meets the standards for program 
registration.
    Proposed Sec.  29.10(a)(7) would incorporate an existing 
requirement at Sec.  29.3(j) about union participation. It would divide 
the requirement at Sec.  29.3(j) into two parts and make non-
substantive edits to the first part. The proposed provision would 
require the sponsor to include union participation provisions in the 
application where the apprentice(s) in the program would be a part of a 
collective bargaining unit and would incorporate existing language at 
current Sec.  29.3(j) regarding collective bargaining agreements. It 
would be divided into two parts: one relating to programs in which the 
union participates in the operation of the registered apprenticeship 
program and one relating to programs in which there is no union 
participation in the operation of the apprenticeship program. Section 
29.10(a)(7)(i) would provide that in instances where a registered 
apprenticeship program is proposed for registration by a sponsor, 
employer, or employers' association and the standards of 
apprenticeship, collective bargaining agreement, or other instrument 
provides for participation by a labor union in any manner in the 
operation of the substantive matters of the apprenticeship program (and 
where such participation is exercised), written acknowledgement of 
union agreement or lack of objection to the registration is required. 
Section 29.10(a)(7)(ii) would provide that where no such participation 
is evidenced and practiced, the sponsor, employer, or employers' 
association must simultaneously furnish to an existing union, which is 
the collective bargaining agent of the employees to be trained, a copy 
of its application for registration and of the apprenticeship program. 
The Registration Agency would need to provide for receipt of union 
comments, if any, within 45 days before final action on the application 
for registration or approval. Both proposed Sec.  29.10(a)(7)(i) and 
(ii) are existing requirements in Sec.  29.3(j) and function to provide 
appropriate participation of the union that represents the prospective 
apprentices' collective bargaining unit.
    Proposed Sec.  29.10(a)(8) would require sponsors to submit to the 
Registration Agency a description of the immediate steps it will 
undertake to implement the requirements of 29 CFR 30.3(b). This 
description would need to, at a minimum: identify the individual(s) 
responsible for overseeing the sponsor's EEO obligations; identify how 
the EEO pledge will be published, publicized, and available to 
apprentices; describe the planned schedule for EEO related orientation 
and information sessions; provide the list and contact information of 
current recruitment resources that will generate referrals and describe 
procedures to address anti-harassment training and procedures for 
handling complaints about harassment and intimidation. These part 30 
elements would be required in the application because they must be 
implemented at the time of program registration, and Registration 
Agencies are expected to evaluate applications to determine whether 
they include sufficient information that these elements will be met at 
the time of registration.
    Proposed Sec.  29.10(b) states that a complete electronic 
application for registration of an apprenticeship program that includes 
all of the requirements of proposed Sec.  29.10(a) would be reviewed 
within 90 calendar days by the Registration Agency. An application 
would need to be complete in order to start the 90-day review period 
for a decision on the application. Paragraphs (b)(1) through (8) would 
describe how the application will be reviewed and what determinations 
the Registration Agency must make in reviewing the application. These 
determinations would correspond to the materials submitted by the 
sponsor in support of their application for program registration. All 
eight requirements would need to be met to receive approval for program 
registration. The Department has made notable strides to provide 
sponsors with the opportunity to access the registration process 
electronically both through the provision and release of boilerplate 
standards of apprenticeship, which have eased the process of assembling 
compliant standards, as well as the launch of OA's Standards Builder 
tool, which allows potential sponsors to begin the registration process 
online.\122\ The Department will continue enhancing these resources to 
ensure sponsors have a clear and navigable process to registering their 
programs with OA.
---------------------------------------------------------------------------

    \122\ OA, ``Standards Builder,'' https://www.apprenticeship.gov/employers/registered-apprenticeship-program/register/standards-builder (last visited July 20, 2023).
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    Proposed Sec.  29.10(b)(1) would require a determination from the 
Administrator that the occupation covered by the proposed program is 
suitable for registered apprenticeship training pursuant to proposed 29 
CFR 29.7. This would be a step taken by the Registration Agency to 
verify that the occupation of the proposed program is suitable for 
registered apprenticeship. If the occupation has not been determined to 
be suitable for registered apprenticeship, then the Registration Agency 
may not approve the application. As discussed in proposed Sec.  
29.10(a)(1), the sponsor should verify that the occupation has been 
deemed suitable for registered apprenticeship or should obtain such a 
determination prior to or at the time of applying for program 
registration under this part. Proposed Sec.  29.10(b)(1) would further 
clarify that the Administrator may in their sole discretion determine 
whether the work process schedule submitted for registration under 
proposed Sec.  29.10(a) substantially aligns with those previously 
approved work process schedules such that the occupation in question 
needs to be determined to be suitable under proposed Sec.  29.7. A 
suitability determination under proposed Sec.  29.7(a) would always be 
made consistent with the work process schedule and related instruction 
outline submitted in support of the suitability determination request. 
Even if an application for registration is submitted for an occupation 
previously determined to be suitable for registered apprenticeship, the 
Administrator could need to make a new suitability determination if the 
work process schedule and related instruction outline submitted for 
registration differ significantly from the work process schedule and 
related instruction outline previously approved under Sec.  29.7. In 
other words, the Administrator would

[[Page 3170]]

never be constrained by a sponsor's representation as to what 
occupation a work process schedule represents. If the Administrator 
determines that a suitability determination is necessary, the 90-day 
period for OA to review an application would not start until the 
suitability determination is complete. The Department is interested in 
any comments regarding the appropriate amount of discretion SAAs that 
serve as the Registration Agency for Federal purposes should have to 
ensure a submission substantially aligns with an approved occupation.
    Proposed Sec.  29.10(b)(2) would require a determination that the 
work process schedule proposed for that occupation provides training in 
the specific skills and competencies associated with the approved 
occupation as required by proposed Sec.  29.7.
    Proposed Sec.  29.10(b)(3) would require a determination that the 
applicant's work process schedule and related instruction outline would 
provide an apprentice with a portable set of occupational skills and 
competencies that are readily transferable between employers within the 
same industry or sector as required by proposed Sec.  29.7.
    Proposed Sec.  29.10(b)(4) would require a determination that the 
standards of apprenticeship submitted are consistent with the 
requirements of proposed Sec.  29.8.
    Proposed Sec.  29.10(b)(5) would require a determination that the 
apprenticeship agreement adheres to the requirements of proposed Sec.  
29.9.
    Proposed Sec.  29.10(b)(6) would require a determination that the 
sponsor possesses the financial capacity and other resources necessary 
to operate the proposed program.
    Proposed Sec.  29.10(b)(7) would require a determination that the 
types of misconduct or violations of law acknowledged by the applicant 
pursuant to proposed Sec.  29.10(a)(6) have been satisfactorily 
addressed and cured by the applicant, and therefore would not pose a 
significant ongoing risk to the welfare of apprentices who elect to 
enroll in the program.
    Proposed Sec.  29.10(b)(8) would require a determination that the 
union participation requirements of paragraph (a)(7) are satisfied, if 
applicable. The Registration Agency would review the documents 
submitted verifying the required union engagement as outlined in 
proposed Sec.  29.10(a)(7) and determine whether the requirements have 
been met.
    Proposed Sec.  29.10(b)(9) would require a determination that the 
sponsor's submission of their written plan for the equitable 
recruitment and retention of apprentices is satisfactory and that they 
have included a satisfactory description of how they will implement, 
upon registration, each of the EEO requirements in proposed Sec.  
29.10(a)(8).
    Proposed Sec.  29.10(c) describes the potential outcomes of the 
Registration Agency's review of the apprenticeship program application. 
It states that applications for new programs that the Registration 
Agency determines meet the required standards for program registration 
would be given a Certificate of Registration and provided provisional 
registration. It further provides that in instances where a 
Registration Agency declines to register a program, the Registration 
Agency would provide a written explanation of the reasons why it 
determined the application does not meet the requirements of this 
subpart, and how any deficiencies could be cured, to the applicant. 
Finally, it provides that applicants denied approval could resubmit 
consistent with the requirements of this subpart. The written notice of 
denial by the Registration Agency should contain adequate explanation 
for the sponsor to understand why the application was denied and any 
specific instructions for resubmitting an application with new or 
supplemental information.
    Proposed Sec.  29.10(d) provides additional explanation of 
provisional registration and review of provisionally registered 
programs for permanent registration. The purpose of the provisional 
status for new programs is to establish the relationship between the 
program sponsor and Registration Agency and ensure that new program 
sponsors fully understand and are willing to take action on 
requirements for compliance, that program sponsors can request and 
access technical assistance from a Registration Agency, and that 
program sponsors make necessary changes to their program during the 
expected timeframe to build and sustain an effective and successful 
program that is compliant. This provisional status would also serve to 
protect apprentices in newer programs until they have established that 
they are operating in accordance with Registration Agency approval and 
to ensure that any necessary corrections are made at an early stage by 
programs. It would require the Registration Agency to review all 
provisionally registered programs for compliance with the requirements 
of this part and of 29 CFR part 30 within 2 years of the program's 
registration date or at the end of the first training cycle, whichever 
is sooner. This means that provisionally registered programs with a 
duration of less than 2 years would be reviewed at the end of their 
training cycle, rather than at the 2-year mark. The proposed change 
from a review after the first year, as currently provided in Sec.  
29.3(h), to a review at either the end of the full training cycle or 
the 2-year mark, whichever is sooner, would allow sufficient time for 
programs of longer durations to progress through their programs prior 
to being subject to an initial review and also would eliminate a need 
for two-part review for programs with full training cycles that are 
longer than 1 year but shorter (or equal to) 2 years. This would allow 
for programmatic efficiencies both for the Registration Agency and the 
registered apprenticeship program sponsor. It would also coincide with 
the requirement in 29 CFR 30.4(e) to have an initial written 
affirmative action plan completed within 2 years of program 
registration.
    Proposed Sec.  29.10(d)(1) describes the two possible scenarios 
after a Registration Agency approves an application. If the 
provisionally registered program has completed its first full training 
cycle, then it would be granted permanent registration. If the 
provisionally registered program has not completed its first training 
cycle, then it would continue to be provisionally approved until it 
receives its subsequent program review at the end of the first full 
training cycle. Proposed Sec.  29.10(d)(2) provides that if a program 
is not found to be operating in compliance with the requirements of 
this part and part 30, it would be subject to the deregistration 
procedures at proposed Sec.  29.20. It is important to note here that 
proposed Sec.  29.20(a) would allow a Registration Agency to provide 
technical assistance to a program such that it can continue to operate 
subject to additional oversight, so a provisionally registered program 
that is found to be noncompliant may receive technical assistance and 
enhanced oversight prior to formal deregistration actions being taken. 
Finally, proposed Sec.  29.10(d)(3) provides that programs that receive 
permanent registration would be subject to subsequent program reviews 
by Registration Agencies as provided in proposed Sec.  29.19.
    Proposed Sec.  29.10(e) is a new provision that would incorporate 
the requirement in existing Sec.  29.6(a) that every registered 
apprenticeship program must have at least one apprentice and would add 
to this requirement by providing that the failure to comply could 
result in deregistration proceedings. Specifically, proposed Sec.  
29.19(e) states that if a registered apprenticeship program does not 
have at least one apprentice enrolled and participating in the 
apprenticeship program and registered with the

[[Page 3171]]

Registration Agency, the Registration Agency could initiate 
deregistration proceedings as described in proposed Sec.  29.20. 
Proposed Sec.  29.10(e) would incorporate the language in Sec.  
29.6(a)(1) and (2) that the requirement to have at least one apprentice 
does not apply during the following periods of time, which may not 
exceed 1 year: (1) between the date when a program is registered and 
the date of registration for its first apprentice(s); or (2) between 
the date that a program graduates an apprentice and the date of 
registration for the next apprentice(s) in the program.
    This proposed requirement is primarily administrative in nature and 
is intended to underscore that registered apprenticeship programs must 
have apprentices participating in their programs in order to remain 
registered or else risk deregistration. Such a requirement is also 
administratively appropriate to address those limited instances where a 
newly registered apprenticeship program uses that registration to 
qualify for the Department's Eligible Training Provider List and 
receive Federal WIOA funds but fails to actually enroll any 
apprentices. This proposed requirement, however, is not intended to 
create undue burdens for new programs that are just beginning to 
register apprentices or smaller programs that may have gaps between the 
graduation of one apprentice and the start date of another, and it 
would allow for a 1-year grace period under these circumstances. The 
Department also notes that programs deregistered for having zero 
apprentices could reregister with a Registration Agency when they 
anticipate utilizing their program again, if it meets the requirements 
of this part and part 30. The Department is interested in comments as 
to whether a ``latency'' period of more than 1 year of no apprentice 
enrollment by a program would be a more appropriate grace period, such 
as in instances where an economic downturn may impact apprenticeship 
hiring. The Department is also interested in any comments that can 
address scenarios where programs have apprentices but do not 
successfully graduate or convert them. While the Department is 
proposing two different completion rate metrics (annual and cohort), it 
is interested in any comments that may address this scenario to ensure 
programs are seeking to graduate apprentices and not just to access 
benefits available for Federal purposes such as those available under 
29 CFR part 5.
    Proposed Sec.  29.10(f) would update an existing requirement in 
Sec.  29.5(b)(18) concerning modifications to standards of 
apprenticeship. It would provide that any sponsor proposals for 
modification(s) or change(s) to standards of apprenticeship or 
certified National Guidelines for Apprenticeship Standards for a 
registered program must be submitted to the Registration Agency. It 
would also provide that the Registration Agency must make a 
determination on whether such submissions are consistent with the 
requirements of this part and 29 CFR part 30, and if so, will approve 
such submissions within 90 calendar days from the date of receipt of a 
complete submission. Finally, it would provide that, if approved, the 
modification(s) or change(s) will be recorded and acknowledged within 
90 calendar days of approval as an amendment to such program, and if 
not approved, the sponsor must be notified of the disapproval and the 
reasons therefore and provided the appropriate technical assistance. 
This language would clarify the process for reviewing and approving or 
denying modifications or changes to approved standards.
Section 29.11--Program Standards Adoption Agreement
    Proposed Sec.  29.11 would prescribe the content and operational 
requirements for a written program standards adoption agreement, as 
defined in proposed Sec.  29.2, between a sponsor and a participating 
employer that is reached outside of a collective bargaining process. 
Agreements between the non-union sponsors of a registered 
apprenticeship program and an individual employer that elects to 
participate in that sponsor's program are not uncommon, but there is 
currently no mechanism in place to ensure participating employers' 
accountability for compliance with the program's standards and 
apprenticeship agreement and no mechanism to hold sponsors accountable 
for the actions of the entities with whom they partner. The Department 
believes that the inclusion of a regulatory provision expressly 
obligating participating employers to comply with the sponsor's 
standards of apprenticeship and to adhere to the requirements contained 
in 29 CFR parts 29 and 30 would serve to bolster registered 
apprenticeship program accountability and integrity and protect the 
safety and welfare of apprentices. Because a participating employer in 
a sponsor's group program is typically the entity that employs and pays 
wages to the apprentices enrolled in that program, and that also 
typically provides close on-the-job direct supervision and training to 
such individuals, it follows that such employers should be 
contractually obligated to adhere to the same standards of 
apprenticeship and regulatory obligations as the sponsor of the 
program. This would ensure that apprentices are protected and receive 
the full benefit of the program.
    Specifically, proposed Sec.  29.11(a) would require that the terms 
and conditions of a program standards adoption agreement include the 
requirements that a participating employer will: (1) adopt and comply 
with the sponsor's registered standards of apprenticeship; (2) comply 
with all other applicable requirements in this part; and (3) cooperate 
with, and provide assistance to, the program sponsor to meet the 
program sponsor's obligations under this part and 29 CFR part 30, 
including by providing any apprenticeship-related data and records 
necessary to assess compliance with these regulatory provisions. These 
requirements would operate in tandem to ensure that the employers of 
apprentices clearly understand their obligations to comply with the 
sponsor's registered standards of apprenticeship, comply with the 
applicable requirements in 29 CFR parts 29 and 30, and assist in any 
review or compliance efforts concerning such compliance, including 
providing any information necessary to assess compliance. Program 
sponsors would need to ensure that these requirements are clearly 
articulated in every program standards adoption agreement and that 
participating employers understand their obligations under these 
requirements. This requirement is modeled after the existing practice 
of an ``Employer Acceptance Agreement,'' for which a template exists 
currently in Appendix D of OA's boilerplate standards of apprenticeship 
in Bulletin 2022-17.\123\
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    \123\ OA, Bulletin 2022-17, ``Modifications to the Boilerplate 
Standards of Apprenticeship,'' Nov. 19, 2021, https://www.apprenticeship.gov/sites/default/files/bulletins/Bulletin-2022-17_0.docx.
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    Proposed Sec.  29.11(b) would require transmission of the program 
standards adoption agreement to the Registration Agency within 30 days 
of the execution of the agreement. This would be necessary for the 
Registration Agency to verify compliance with this subpart as well as 
provide assurance that employers understand their obligations and 
responsibilities as employers of apprentices in registered 
apprenticeship programs and to allow the Registration Agency to engage 
in more comprehensive oversight of the program.

[[Page 3172]]

    Proposed Sec.  29.11(c) would provide the process for the 
suspension or cancellation of a program standards adoption agreement. 
As described below, a participating employer could cancel the agreement 
by providing 30-day written notice to the sponsor, and a sponsor could 
cancel or suspend the agreement if the participating employer violates 
the terms of the program standards adoption agreement relating to 
proposed Sec.  29.11(a)(1) through (3).
    Proposed Sec.  29.11(1) provides that the agreement could be 
cancelled by the participating employer upon providing 30 days written 
notice to the sponsor. The Department anticipates that a participating 
employer that decides to cancel the agreement would not have 
apprentices in their employment at the time of the cancellation, 
meaning that prior to cancellation, the employer's apprentices were 
converted into regular employees, ended their on-the-job training with 
the employer, or were otherwise placed by the sponsor with a different 
participating employer.
    Proposed Sec.  29.11(c)(2) provides that the agreement would be 
suspended or cancelled by the program sponsor if the program sponsor 
determines that the participating employer failed to satisfy the 
requirements of the program standards adoption agreement's mandatory 
provisions described in proposed Sec.  29.11(a). The sponsor would be 
responsible for determining compliance with the program standards 
adoption agreement and cancellation or suspension of such agreement if 
there were noncompliance by the participating employer.
    Proposed Sec.  29.11(c)(2)(i) through (iii) discuss the process 
that sponsors would follow to suspend or cancel the program standards 
adoption agreement.
    Proposed Sec.  29.11(c)(2)(i) would require the program sponsor to 
provide written notice of any suspension or cancellation to the 
participating employer, all apprentices affected by the suspension or 
cancellation, and to the applicable Registration Agency. It would also 
specify that the notice must explain the reason for the suspension or 
cancellation. The purpose of this proposed provision is to ensure that 
adequate written notice is provided to everyone affected by a 
cancellation or suspension of a program standards adoption agreement 
and the reason for the suspension or cancellation.
    Proposed Sec.  29.11(c)(2)(ii) provides that if the suspension or 
cancellation results in an interruption or cessation of training for 
apprentices, the program sponsor would need to make a reasonable effort 
to place such individuals with another of the sponsor's participating 
employers or a different registered apprenticeship program in the same 
occupation. The purpose of this proposed provision is to ensure that 
any apprentices whose programs are affected by such cancellation or 
suspension are placed with either another employer or another 
registered apprenticeship program, to the extent possible. Registration 
Agencies could provide technical assistance upon request if the sponsor 
encounters challenges to placing apprentices with other employers or 
programs.
    Proposed Sec.  29.11(c)(2)(iii) provides that in instances where a 
program sponsor fails to suspend or cancel a program standards adoption 
agreement as required by this paragraph, the Registration Agency could 
initiate deregistration proceedings against the sponsor pursuant to 
proposed Sec.  29.20. This proposed provision is intended to both 
signal to the sponsor the importance of monitoring compliance with 
program standards adoption agreements and to emphasize that neglecting 
to do so risks deregistration per the procedures in proposed Sec.  
29.20.
Section 29.12--Qualifications of Apprentice Trainers and Providers of 
Related Instruction
    In registered apprenticeship, trainers and instructors play a 
pivotal role in the realization of the benefits of the system's earn-
and-learn framework. The quality of the source material and resources 
underpinning training and instruction in registered apprenticeship 
programs is vital, but in order for such material to take hold among 
apprentices learning about an occupation, the individuals providing 
training and instruction must be knowledgeable experts in their field, 
must be skilled in instructional competencies, and must be willing and 
able to take a lead role in establishing a safe and welcoming 
environment conducive to learning for apprentices of all backgrounds.
    The current regulatory framework for registered apprenticeship does 
not establish any baseline qualifications for apprentice trainers. The 
Department has determined that establishing such a baseline in 
regulation would benefit all existing and potential registered 
apprenticeship programs and apprentices by promoting quality and 
transparency within the National Apprenticeship System. Potential 
program sponsors of new registered apprenticeship programs would 
benefit from regulatory provisions that clarify the baseline elements 
of quality trainers and instructors in apprenticeship. Ultimately, the 
Department proposes to include a provision on trainer and instructor 
quality to ensure that all programs recognize the importance of trainer 
and instructor quality, to encourage programs to take steps to keep 
trainers and instructors up-to-date on emerging techniques and 
technologies, and to promote transparency for potential apprentices, 
who would understand the qualifications of those they are receiving 
training from and that any trainers and instructors in any registered 
apprenticeship program will meet baseline quality standards.
    Proposed Sec.  29.12 is a new provision stipulating proposed 
requirements for the qualifications of individuals designated to 
provide training and related instruction to apprentices. For 
apprentices, training and learning while on the job is a core, 
definitional element of registered apprenticeship. Trainers and 
instructors (traditionally referred to as ``journeyworkers'' in the 
apprenticeship context, and used here in the proposed regulatory text 
to align with the journeyworker-to-apprentice ratio requirements 
discussed above in this NPRM) hold the key to the benefits of 
apprenticeship for all stakeholders: apprentices benefit from such 
training and learning by developing in-demand skills and becoming 
proficient in job tasks that are central to the careers they are 
pursuing, and employers benefit from a capable workforce that can 
deliver a quality work product. As such, the Department has determined 
that trainer and instructor (journeyworker) quality is central to the 
success of registered apprenticeship and proposes to include a new 
section in the registered apprenticeship regulations at 29 CFR 29.12 to 
outline the attributes, qualifications, and experiential requirements 
necessary to ensure all training and learning in registered 
apprenticeship is high in quality.
    Proposed Sec.  29.12(a) would require that all sponsors and 
participating employers in the National Apprenticeship System must 
ensure that journeyworkers providing on-the-job training meet the 
quality requirements that follow in paragraphs (a)(1) through (6). The 
proposed regulatory text would clarify that the proposed quality 
requirements at paragraphs (a)(1) through (6) are minimum requirements, 
and the Department expects that most registered apprenticeship programs 
or their participating employers already employ journeyworkers whose 
qualifications meet and exceed these proposed minimum requirements.
    The first proposed minimum requirement at proposed 29 CFR

[[Page 3173]]

29.12(a)(1) states that apprentice trainers or providers of related 
instruction would need to possess a mastery of the relevant job skills, 
techniques, and relevant competencies of the occupation. Apprentices 
participating in a quality registered apprenticeship program are on a 
pathway to become proficient in all the relevant job skills, 
techniques, and competencies in the occupation for which they are 
training, and the quality of the training they receive during their 
program is the single most critical success factor for achieving such 
proficiency. Employers need workers who can perform critical job tasks 
competently and proficiently, especially in trades or occupations where 
time to complete a job task is critical to the employee and employer's 
bottom line (such as an electrician who must be able to complete 
complex job tasks accurately and efficiently within a certain 
timeframe). In order for apprentices to become proficient in the 
critical job tasks for an occupation, the training and instruction they 
receive during their registered apprenticeship program must be provided 
by trainers and instructors who are not only proficient in the tasks 
themselves, but who possess a mastery of these skills, techniques, and 
competencies such that they can impart their mastery on to the 
apprentices training in their registered apprenticeship program.
    Proposed Sec.  29.12(a)(2) would further require that 
journeyworkers stay up to date on the latest advances in technology, 
technical knowledge, new and emerging techniques, and evolving job 
skills necessary to maintain their proficiency and mastery in an 
occupation. Emerging technologies, technical and mechanical refinements 
to machinery and equipment, the proliferation of digital and online 
tools, platforms, and capabilities, and developments in the modern 
workspace and the emergence of remote work \124\ all carry meaningful 
implications for workforce training and development. The Department has 
determined that introducing regulatory requirements for journeyworkers 
providing training to maintain their proficiency is essential for 
ensuring that such developments are reflected throughout the National 
Apprenticeship System. Continuous learning and upskilling for 
journeyworkers providing training and instruction in registered 
apprenticeship programs would be critical for ensuring the 
journeyworker retains a mastery as required by proposed paragraph 
(a)(1) and for ensuring the skills and techniques apprentices are 
learning throughout their program are relevant and up to date.
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    \124\ For example, the COVID-19 pandemic has resulted in a major 
shift towards remote work throughout the United States workforce. 
See Kim Parker, Juliana Menasce Horowitz, and Rachel Minkin, 
``COVID-19 Pandemic Continues to Reshape Work in America,'' Pew 
Research Center, Feb. 16, 2022, https://www.pewresearch.org/social-trends/2022/02/16/covid-19-pandemic-continues-to-reshape-work-in-america.
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    Proposed Sec.  29.12(a)(3) through (5) discuss the proposed 
requirements for journeyworkers' capabilities as instructors, 
communicators, and evaluators. In addition to possessing a mastery of 
the relevant job skills and techniques for their occupation and keeping 
up to date on their mastery and proficiency, journeyworkers would need 
to be effective communicators to ensure their mastery is passed on to 
the apprentices training in their programs. Proposed paragraph (a)(3) 
would require that journeyworkers be effective communicators capable of 
transmitting and demonstrating any specialized knowledge, job skills, 
techniques, or processes necessary for achieving proficiency in an 
occupation.
    Paragraph (a)(4) would cover another critical aspect of instruction 
and training: journeyworkers' ability to evaluate apprentices' progress 
and performance fairly and objectively throughout the term of a 
registered apprenticeship program, including the ability to evaluate 
apprentices' progress in attaining competencies during on-the-job 
training. The Department views the fair and transparent evaluation of 
apprentices throughout a program as a critical element for registered 
apprenticeship program success, because such evaluation is essential 
for understanding if apprentices have learned all they need to during 
their program and are assured that they are emerging from the programs 
with a valuable set of transferrable skills for their careers. Fair, 
transparent, and effective evaluation is also an important equity 
consideration, and in line with its goal of advancing equity in the 
National Apprenticeship System with this proposed regulation, the 
Department seeks to embed such qualities in the evaluations provided by 
apprentice trainers through the proposed minimum trainer qualification 
requirement at proposed paragraph (a)(4). This proposed minimum trainer 
qualification requirement is intended to protect apprentices from 
diverse backgrounds against unequal treatment in evaluation, to 
establish a baseline of equitable and objective evaluation for all 
apprentices in a program, and to ensure that apprentices from diverse 
backgrounds receive training from, and are evaluated by, qualified and 
experienced trainers.\125\ It would also require that a trainer is able 
to assess the attainment of competencies acquired by apprentices during 
their on-the-job training. This would include the ability to assess 
whether apprentices are meeting the appropriate targets at each stage 
of the program. Under the Department's proposed approach, all 
apprentices would be advanced through programs by their successful 
attainment of competencies acquired over a minimum duration of time on-
the-job. A trainer's ability to assess and recognize when an apprentice 
has reached a level of competency so as to be proficient in it is vital 
to the operation of a registered apprenticeship program. This ability 
to assess competency attainment is also vital in programs that 
accelerate an apprentice's time in the program based on the rapid 
attainment of proficiency in competencies, because acceleration should 
only take place when an apprentice is proficient and not just to move 
quickly through a program. A core tenet of registered apprenticeship is 
journeyworkers' mastery of the job skills within their occupation, and 
journeyworkers are therefore in the best position to evaluate whether 
an apprentice has achieved the occupational proficiency that all 
registered apprenticeship programs should confer upon participating 
apprentices.
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    \125\ Proposed paragraph (a)(4) aligns with other Federal 
government agencies' efforts to establish equitable access to 
qualified and skilled educators and instructors. For example, in 
2014, ED launched the ``Excellent Educators for All Initiative'' 
requiring States to submit plans to ensure ``poor and minority 
children are not taught at higher rates than other children by 
inexperienced, unqualified, or out-of-field teachers.'' Westat, 
``Equitable Access to Excellent Educators: An Analysis of States' 
Educator Equity Plans,'' 2016, https://www2.ed.gov/programs/titleiparta/equitable/titleiiequityanalysis1031.pdf.
---------------------------------------------------------------------------

    Proposed Sec.  29.12(a)(5) would concern apprentice trainers' role 
in establishing practical connections between the conceptual and 
theoretical knowledge apprentices attain through related instruction 
and their implications and applications for the covered occupation. 
Such connections may clarify how to perform a job-related task 
successfully, explain a task or sub-task's importance to successful, 
safe, and efficient performance within the occupation, or otherwise 
provide apprentices with theoretical context and broader understanding 
of the tasks they must perform in the occupation. The Department has 
determined that apprentices benefit from developing a clear 
understanding of why they are required to participate in the related

[[Page 3174]]

instruction element of registered apprenticeship, and that apprentices' 
primary trainers--journeyworkers--must play an essential role in 
developing such understanding among the apprentices they train.
    Finally, proposed Sec.  29.12(b) would require that journeyworkers 
fulfill their important role in ensuring apprentices are receiving 
training in a safe and inclusive work environment that supports the 
effective development of apprentices from all backgrounds. Studies, 
research, and evaluations applying the DEIA lens to analyzing the roles 
of trainers, instructors, mentors, and others in positions of authority 
indicate that such individuals are in a unique position to shape the 
learning and professional environments in which they are operating, 
including the creation of an inclusive environment where everyone feels 
represented, supported, empowered to speak up, and protected from 
harassment, intimidation, or retaliation. OA's fact sheet on advancing 
DEIA in registered apprenticeship, designed to inform registered 
apprenticeship stakeholders on the key elements and benefits of robust 
DEIA protocols in registered apprenticeship programs, discusses the 
importance of inclusive leaders in establishing workplace culture and 
the role of mentors in building networks to help apprentices from 
diverse backgrounds develop positive connections with their place of 
work.\126\ OA has also established partnerships with advocacy 
organizations to harness the expertise of stakeholders in workforce 
development to develop and produce guidance on promising practices for 
inclusive workplaces. Research, guidance, and frameworks developed by 
these organizations also point to the importance and benefits of 
advancing DEIA in registered apprenticeship, including through the 
incorporation of authentic program participant voices, training and 
instruction that is accessible and representative of diverse 
participants in a program, and quality mentorship.\127\ Quality 
mentorship is particularly important for youth in educational and 
training environments, further supporting the Department's proposal to 
include minimum requirements for the journeyworker role in establishing 
inclusive workplace environments as the Department seeks to advance 
opportunities for increased youth participation in quality registered 
apprenticeship programs.\128\
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    \126\ OA, ``Scaling Diversity, Equity, Inclusion and 
Accessibility (DEIA) in Registered Apprenticeship,'' https://www.apprenticeship.gov/sites/default/files/DOL_DEIAFactsheet_v2.pdf 
(last visited July 20, 2023).
    \127\ Vanessa Bennett, Maria Cabiya, Myriam Sullivan, and 
Deborah Kobes, ``JFF's Program Design Framework for Diversity, 
Equity, Inclusion, and Accessibility in Registered Apprenticeship,'' 
Center for Apprenticeship & Work-Based Learning, https://info.jff.org/apprenticeshipdeia-framework (last visited July 20, 
2023).
    \128\ Urban Institute, ``Mentoring Matters: The Role of 
Mentoring in Registered Apprenticeship Programs for Youth,'' Nov. 8, 
2021, https://www.urban.org/events/mentoring-matters-role-mentoring-registered-apprenticeship-programs-youth.
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    Proposed paragraph (b) would also reiterate that trainers in 
registered apprenticeship programs must also have completed all anti-
harassment trainings required in the part 30 regulations, which is not 
a new requirement for program sponsors. Additionally, the Department is 
proposing that the trainer should not have a record of substantiated 
noncompliance with the EEO requirements to ensure that trainers are 
fully inclusive of the EEO in apprenticeship requirements and that 
apprentices are protected from trainers unwilling to incorporate these 
requirements. The Department has determined that including the 
maintenance of a safe and inclusive working and learning environment is 
equally important as the anti-harassment training requirements for 
ensuring apprentices are supported and protected by the trainers 
guiding their professional development during their 
apprenticeship.\129\ Such an environment is important for the quality 
of the experience of apprentices in the program, which in turn impacts 
programs' ability to retain apprentices, and positive feedback and 
messaging about the quality, safety, and inclusiveness of a work 
environment may also have positive impacts on registered apprenticeship 
programs' ability to attract new apprentices. Though not a requirement, 
the Department does encourage the adoption of DEIA training for 
trainers as a best practice and encourages comments on the advantages 
of embedding DEIA training into registered apprenticeship programs.
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    \129\ See, e.g., Alexia Fernandez Campbell and Claire Molloy, 
``Attacked Behind the Wheel,'' The Center for Public Integrity, Dec. 
11. 2022, https://publicintegrity.org/labor/female-drivers-attacked-behind-the-wheel/.
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    Proposed Sec.  29.12(c)(1) and (2) would concern providers of 
related instruction and the minimum requirements such individuals must 
possess in the registered apprenticeship context. These proposed 
paragraphs would relocate much of the existing regulatory text in the 
Standards of Apprenticeship section of the regulation at 29 CFR 
29.5(b)(4)(i) and (ii) with minor adjustments and are not new 
requirements for registered apprenticeship programs. Proposed paragraph 
(c)(1) would require that providers of related instruction must either 
be faculty members or instructors at an accredited postsecondary 
institution or meet the State's certification requirements for CTE 
instructors in the State where the apprenticeship program is 
registered. The Department proposes to add to the existing regulatory 
text on this topic, found in the existing regulation at 29 CFR 
29.5(b)(4)(i), by clarifying that providers of related instruction who 
serve as a faculty member or instructor at an accredited postsecondary 
institution would meet the proposed requirement at Sec.  29.12(c)(1). 
The Department also proposes to retain the language from the existing 
regulation at Sec.  29.5(b)(4)(i) stating that a subject-matter expert, 
such as a journeyworker, may also provide related instruction to 
apprentices. Many registered apprenticeship programs rely on their 
journeyworker assets to provide such instruction because such 
individuals possess a mastery of the occupation that enables them to 
select the related instruction curricula most appropriate for a 
worker's success in the occupation. The Department has determined it is 
important to maintain this flexibility in the proposed rule and is 
including that language in proposed Sec.  29.12(c)(1).
    The Department has determined that it is prudent to maintain these 
requirements because the quality of the related instruction components 
of registered apprenticeship programs depends on the qualities and 
capabilities of the instructor, including their capabilities as an 
educator and their ability to communicate complex subject matter. The 
certification requirements at proposed paragraph (c)(1) are intended to 
ensure that instructors are capable and effective teachers, which the 
Department views as a unique skill that transcends the occupation-
specific aspects for any registered apprenticeship program.
    Proposed paragraph (c)(2) is not a new requirement and leverages 
the existing regulatory language at 29 CFR 29.5(b)(4)(ii). The 
Department proposes to maintain the existing requirement that 
instructors possess skills in teaching techniques for different 
audiences, including adult learning styles. Apprentices in a given 
registered apprenticeship program may come from a variety of 
backgrounds, and many are adult workers seeking to retrain or upskill 
in a different career or occupational sector. As with journeyworkers 
providing on-the-job training, providers of related instruction

[[Page 3175]]

must understand the unique characteristics and needs of adult learners 
and must be able to apply appropriate instructional techniques to 
ensure apprentices of all backgrounds--including adult learners--
receive and understand the instructional components within their 
registered apprenticeship program.
    While the Department expects that training and related instruction 
providers in most registered apprenticeship programs either will 
already meet these proposed minimum qualification requirements or will 
have clear options available to ensure they meet these proposed 
requirements (through existing partnerships, industry certification 
programs, learning certification programs, or others), the Department 
is committed to providing technical assistance to programs to 
streamline registered apprenticeship programs' compliance with this 
proposed section. In addition, the Department will commit to promoting 
the development of mentorships, templates for trainer and instructor 
assessment, and a system-wide network of stakeholders (currently 
contemplated as an ``Registered Apprenticeship Academy'') to facilitate 
mentoring and trainer development, create a critical feedback loop, and 
otherwise provide support for programs and the trainers and instructors 
who are so critical to the registered apprenticeship program and 
apprentices success profile.\130\
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    \130\ Encouraging the inclusion of mentorships in registered 
apprenticeship programs aligns with the 2023 Quality Apprenticeships 
Recommendation of the ILO at Conclusion 25(o). ILO, ``Quality 
Apprenticeships Recommendation, 2023'' (ILO Recommendation No. 208), 
Conclusion 25(o), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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Section 29.13--Development of National Occupational Standards for 
Apprenticeship
    Proposed 29 CFR 29.13 is a new proposed section of the part 29 
regulations that would describe the development and intended use of 
National Occupational Standards for Apprenticeship. Accelerated 
expansion of the National Apprenticeship System is one of the 
Department's primary goals in the development of this proposal, and OA 
views the continued development of National Occupational Standards for 
Apprenticeship as an important tool for achieving that goal. National 
Occupational Standards for Apprenticeship are industry-validated 
standards that are national in scope and can be used to accelerate the 
development of a registered apprenticeship program. National 
Occupational Standards for Apprenticeship are intended to be an off-
the-shelf resource for potential programs seeking to establish a 
registered apprenticeship program in an occupation that is national in 
scope and suitable for registered apprenticeship, and they would enable 
potential sponsors to quickly develop a set of standards of 
apprenticeship particular to their proposed program that aligns with 
the apprenticeship training standards for the occupation as advanced by 
stakeholders and experts in their industry.
    The Department has received feedback from stakeholders, including 
the members of the 2021-2023 term of the ACA, that potential registered 
apprenticeship program sponsors need robust tools, templates, and other 
resources to assist sponsors in meeting the required steps for setting 
up a new registered apprenticeship program. The Department agrees with 
this feedback, captured in several recommendations from the ACA's 2022 
Interim Report, and will continue to work with industry stakeholders to 
develop such tools.\131\ For National Occupational Standards for 
Apprenticeship, OA will work with industry stakeholders to identify the 
training needs of particular occupations, ensure national applicability 
of those training needs, and develop products (such as sample work 
process schedules) based on those needs consistent with the 
occupational suitability provisions of 29 CFR 29.7. Sponsors utilizing 
National Occupational Standards for Apprenticeship would be able to 
accelerate the development of their programs based on their utilization 
of these comprehensive standards, which could accelerate the review of 
their registration on a national basis either as National Program 
Standards for Apprenticeship or as National Guidelines for 
Apprenticeship Standards, consistent with proposed Sec. Sec.  29.14 and 
29.15 of this part.
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    \131\ ACA recommendations on this topic from its 2022 Interim 
Report include:
    <bullet> Identify opportunities for more standardization across 
the registered apprenticeship system while preserving necessary 
flexibilities to ensure the registered apprenticeship model is 
adaptable to different industry and regional needs.
    <bullet> Provide detailed guidance so that State-level or 
employer/sponsor-level stakeholders know exactly where they need to 
go and what they need to do to register a program, obtain answers to 
questions, pursue funding opportunities, and whether there are 
templates or other guidance to get them started.
    <bullet> Create a toolkit/resource to communicate this 
information and refine apprenticeship referral processes, support 
provided to apprentices, etc.
    <bullet> Leverage existing tools for onboarding, such as the 
Standards Builder (https://www.apprenticeship.gov/employers/registered-apprenticeship-program/register/standards-builder) and 
the Apprenticeship Playbook (https://www.apprenticeship.gov/sites/default/files/playbook.pdf), and develop additional requirements 
guides as needed.
    ACA, ``Interim Report to the Secretary of Labor,'' May 16, 2022, 
https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
---------------------------------------------------------------------------

    With regard to these standards, the Department envisions its role 
as being a convener of national stakeholders that would take the 
initiative in the development of such occupational standards across a 
given industry. OA's vision for National Occupational Standards for 
Apprenticeship is to convene industry leaders for their expertise and 
input on the development of such standards. Engagement with industry 
leaders will ensure that occupational competencies needed for 
apprentices to be fully proficient in an occupation are industry-
recognized. In addition, OA will seek public comment on the National 
Occupational Standards for Apprenticeship in the Administrator's 
determination process. OA anticipates that industry leaders and other 
stakeholders will have ample opportunity to provide comprehensive input 
to inform these new products.
    The purpose of National Occupational Standards for Apprenticeship 
is to ensure that registered apprenticeship programs continually adapt 
to meet quality training needs of industry, and that programs that 
leverage these standards can ensure that they are training apprentices 
utilizing a nationally recognized approach. As occupations, technology, 
and the overall economy evolve, National Occupational Standards for 
Apprenticeship may need to be updated or revised, underscoring the 
importance of OA's continuous engagement with industry stakeholders and 
leaders. The Department recognizes that such industry stakeholders will 
be the first to know about changes to technology or business needs that 
would necessitate an update to the training standards for an occupation 
and intends to rely on those stakeholders to bring forth suggested 
changes to established National Occupational Standards for 
Apprenticeship for registered apprenticeship programs within their 
industry. The Department will be responsive to such industry 
suggestions and will work with stakeholders to update, vet, and re-
establish National Occupational Standards for Apprenticeship as needed. 
The Department further invites comments on the most effective ways to 
keep pace with evolving industry needs and their implications for 
established templates for National Occupational Standards for 
Apprenticeship.

[[Page 3176]]

    While the procedure for receiving approval for an occupation in 
proposed Sec.  29.7 does have a process for industry vetting, that 
process would be more reactive to the first entity that proposes a work 
process schedule for an occupation. The process for the development of 
National Occupational Standards for Apprenticeship would not be 
designed as a first-come, first-served approach to registered 
apprenticeship training. Instead, it would be based on intentional, 
proactive, nationwide, and industry-validated curriculum for on-the-job 
training and related instruction, including relevant interim 
credentials and industry-validated end-point assessments that can be 
responsive to emerging labor force needs. The section would provide the 
criteria that the Administrator will use in reviewing National 
Occupational Standards for Apprenticeship for approval. The criteria 
listed in the section would include the suitability of an occupation 
for registered apprenticeship under proposed Sec.  29.7 and an 
industry-validated work process schedule. Additional criteria described 
in this section would include proposed standards that have a nationally 
applicable, industry-validated curriculum framework for the provision 
of related instruction and the methods for conducting ongoing 
evaluations of apprentices successfully attaining the skills and 
competencies under such frameworks. As such, proposed Sec.  29.13 is 
new and sets forth a discretionary process by which the Administrator 
would develop and approve National Occupational Standards for 
Apprenticeship. The Department proposes the development of National 
Occupational Standards for Apprenticeship as a driver of system quality 
and a resource for easing a sponsor's access to the National 
Apprenticeship System by making these standards publicly available to 
be utilized by sponsors and employers. These would be required as they 
are developed to ensure greater quality and industry support for 
programs with a national scope as described in proposed Sec. Sec.  
29.14 and 29.15 to a common set of high-quality standards.
    Proposed paragraph (a) describes the purpose of the proposed 
National Occupational Standards for Apprenticeship. The Department, in 
developing National Occupational Standards for Apprenticeship, intends 
to drive the growth of high-quality registered apprenticeship programs 
across a wide range of sectors and occupations deemed suitable for 
registered apprenticeship training under proposed Sec.  29.7. The 
Department, aligning with broader administration goals, has specific 
interest in using National Occupational Standards for Apprenticeship to 
increase registered apprenticeship programs in emerging and high-growth 
occupations; in occupations and sectors where apprenticeship programs 
are not currently widespread; and in occupations and sectors that the 
Administration has deemed critical to maintaining or enhancing the 
manufacturing capacity, critical infrastructure, public health and 
safety, supply chain resilience, environmental protection, renewable 
energy resources, educational and cultural advancement, or economic and 
national security of the United States. Expansion of the registered 
apprenticeship model into new and emerging industries would also align 
with recommendations and guidance provided by national apprenticeship 
stakeholders. For example, multiple subcommittees of the ACA, including 
a subcommittee entirely devoted to this area (the Industry Engagement 
in New and Emerging Sectors subcommittee), recommended that OA target 
new and emerging sectors for registered apprenticeship expansion.\132\
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    \132\ ACA recommendations on this topic from its 2022 Interim 
Report include:
    <bullet> Accelerate registered apprenticeship deployment in 
growing industries and sectors, while ensuring curricula are 
responsive to industry needs, and templates and requirements are 
compatible with and flexible for different kinds of jobs and 
industries.
    <bullet> Continue expansion of industry intermediary contracts 
targeting new and emerging sectors, which have been effective 
engines to target incentives.
    Ibid.
---------------------------------------------------------------------------

    Proposed paragraph (b) describes the criteria by which the 
Administrator would review and approve proposed National Occupational 
Standards for Apprenticeship. As noted previously, the Administrator 
and OA continually engage with industry representatives, labor unions, 
workforce development experts, and other relevant stakeholders to keep 
abreast of evolving industry needs and priorities and updates or 
changes to work processes and job skills necessary for successful job 
performance in an occupation or industry. Such ongoing engagement 
ensures that National Occupational Standards for Apprenticeship remain 
current and are also supported and relevant for industry, that any 
registered apprenticeship programs informed by such National 
Occupational Standards for Apprenticeship are responsive to and in 
alignment with industry needs and priorities, and that the workers 
entering into such industries are prepared for success based on the 
factors and standards applicable to a particular industry. 
Apprenticeship stakeholders in the ACA have identified the need to 
develop, maintain, and update template occupational standards in 
service of multiple goals, including system alignment and easing the 
onboarding of new programs, and OA intends to implement such a process 
for the development of National Occupational Standards for 
Apprenticeship to achieve these goals based on the criteria in (b)(1) 
through (4).\133\
---------------------------------------------------------------------------

    \133\ For example, the ACA recommended that DOL ``should develop 
a plan and the necessary infrastructure to move toward a system for 
developing, classifying, and updating occupational training 
standards in [registered apprenticeship].'' Ibid.
---------------------------------------------------------------------------

    Proposed Sec.  29.13(b)(1) would require that the National 
Occupational Standards for Apprenticeship must be for an occupation 
that has been determined suitable for registered apprenticeship 
training by the Administrator, pursuant to proposed Sec.  29.7. 
National Occupational Standards for Apprenticeship are ultimately 
intended as a resource to help set up new registered apprenticeship 
programs in their associated occupations, and to help registered 
apprenticeship programs providing apprenticeship training for an 
occupation stay up to date on the evolving needs of industry. In order 
for National Occupational Standards for Apprenticeship to be useful and 
relevant within the National Apprenticeship System, they must be tied 
to an occupation that has been deemed suitable for registered 
apprenticeship training. These products would inform the development of 
National Guidelines for Apprenticeship Standards and National Program 
Standards for Apprenticeship, all of which would be tools for 
onboarding new registered apprenticeship programs. As such, the 
national standards frameworks discussed in this proposal would all 
relate to an occupation deemed suitable for registered apprenticeship 
training.
    Proposed Sec.  29.13(b)(2) would require that the work process 
schedule framework associated with the occupation be documented as 
nationally applicable. In order to make National Occupational Standards 
for Apprenticeship a useful resource for setting up programs covering 
an occupation that is national in scope, OA would work with industry 
and other relevant stakeholders to determine if the occupation's 
proposed work process schedule is workable and applicable

[[Page 3177]]

nationwide (and not just in regional or local settings). The proposed 
requirement seeks to ensure that the National Occupational Standards 
for Apprenticeship, as confirmed by the associated industry in which 
the standards are being developed, further the growth and establishment 
of registered apprenticeship programs that can meet the training needs 
of an occupation on a national level.
    Proposed Sec.  29.13(b)(3) would require that the National 
Occupational Standards for Apprenticeship include a curriculum 
framework for related instruction. As with proposed Sec.  29.13(b)(2), 
this proposed requirement seeks to ensure that the National 
Occupational Standards for Apprenticeship are documented or endorsed by 
relevant stakeholders for the occupation for which the standards are 
being developed. This approach to curriculum development would further 
the growth and establishment of registered apprenticeship programs, on 
a national scope, that provide apprentices with the necessary related 
instruction for the subject occupation. OA also intends for curricula 
in National Occupational Standards for Apprenticeship to remain up to 
date, in line with the ACA's recommendation to update standards to 
reflect emerging technologies, work processes, or economic trends 
affecting an occupation.\134\
---------------------------------------------------------------------------

    \134\ ``Update and enhance standards and guidance to reflect new 
and emerging technologies (including any updates to existing or 
emerging Standards Builder boilerplates/templates).'' Ibid.
---------------------------------------------------------------------------

    Proposed Sec.  29.13(b)(4) would require the inclusion of methods 
to evaluate apprentice progress throughout the registered 
apprenticeship program, including the development of an appropriate 
end-point assessment. This proposed requirement seeks to ensure that 
the National Occupational Standards for Apprenticeship are documented 
as relevant for the occupation and provide a framework for the methods 
to assess the attainment of the skills and competencies required under 
the work process schedule framework. As with the other requirements in 
this proposed provision, these methods would need to be nationally 
applicable and validated by industry. This provision would build on the 
Department's goals to elevate registered apprenticeship program quality 
and establish greater accountability measures in the National 
Apprenticeship System's governing regulations by requiring that 
programs develop transparent, accountable assessments to evaluate 
apprentices' attainment of proficiency in an occupation. In the 
Department's view, this proposed new requirement for registered 
apprenticeship programs also represents an opportunity to further 
engage with industry to refine registered apprenticeship programs' 
responsiveness to industry needs. The Department expects that industry 
stakeholders and leaders will be instrumental in the development and 
refinement of rigorous, nationally applicable methods for assessing 
apprentices' attainment of proficiency in occupations. In addition to 
the assurances that the successful completion of an end-point 
assessment would provide for employers hiring apprentices, this new 
requirement could also be leveraged by program sponsors to analyze 
their program's overall effectiveness and implement continuous 
improvements in program design.
    Proposed Sec.  29.13(c) explains the proposed process for approving 
National Occupational Standards for Apprenticeship. Once the 
Administrator has developed National Occupational Standards for 
Apprenticeship for an occupation, OA would seek public comment on the 
standards to include a nationally applicable end-point assessment. This 
process of seeking public comment is intended to ensure that the 
finalized National Occupational Standards for Apprenticeship are 
industry-vetted and will lead to occupational proficiency anywhere in 
the country. To ensure that OA receives sufficient feedback from 
industry leaders, OA may specifically invite industry leaders to submit 
public comments. Public comments would be accepted for at least 30 
calendar days, and the National Occupational Standards for 
Apprenticeship in question would be finalized within 90 calendar days 
from the opening of the public comment period, though this time period 
may be extended at the discretion of the Administrator. The 
Administrator may also consider data and other relevant information to 
assist in evaluating whether the requirements in proposed Sec.  
29.13(b) are satisfied, such as O*NET data. Finally, proposed Sec.  
29.13(c) provides that the Administrator will maintain an up-to-date 
list of all National Occupational Standards for Apprenticeship.
    The Department is interested in any comments about the proposed 
development of National Occupational Standards for Apprenticeship and 
their potential benefit to potential sponsors or current sponsors in 
providing support on some of the upfront challenges with starting a 
registered apprenticeship program for an occupation, identifying high-
quality apprenticeship curriculum, development of end-point 
assessments, and in turn implementing it at a program level. The 
Department is also interested in any comments about the proposed 
criteria by which it would evaluate proposed National Occupational 
Standards for Apprenticeship, including comments regarding any 
additional or different criteria that would assist in meeting the needs 
of employers or in successfully training apprentices.
Section 29.14--National Program Standards for Apprenticeship
    The ``National Program Standards for Apprenticeship'' section 
describes the criteria for establishing National Program Standards for 
Apprenticeship, the scope and reciprocity of registration, and 
alignment with the National Occupational Standards for Apprenticeship. 
The concept of National Program Standards for Apprenticeship has been 
developed by OA through subregulatory guidance.\135\ Recent Federal 
legislation in the Veterans Apprenticeship and Labor Opportunity Reform 
(VALOR) Act has leveraged its use to expedite the approval of programs 
for the Department of Veterans Affairs Education Benefits, such as the 
GI Bill. National Program Standards for Apprenticeship are an 
administrative procedure; the Administrator has to register a program 
nationally if the program operates on a national basis, allowing the 
program to operate in every State without seeking further registration 
from OA or an SAA.\136\ In creating National Program Standards for 
Apprenticeship, the Department seeks to drive system alignment and 
apprenticeship expansion on a national scale. The Department 
anticipates that this process will ensure that registered 
apprenticeship programs established on a national scale will adhere to 
a common set of industry-validated standards and enable apprentices who 
participate in these programs to receive a uniform training experience 
regardless of where it takes place. Proposed Sec.  29.14 sets forth the 
process by which sponsors could establish registered apprenticeship 
programs on a national basis. The criteria for National Program 
Standards for Apprenticeship that would be established in this section

[[Page 3178]]

would require that prospective sponsors seeking approval must provide 
apprenticeship training for occupations that are not ordinarily subject 
to licensing requirements; be national or multistate in design, 
suitability, and scope; and satisfy the applicable requirements of this 
part and 29 CFR part 30. This section would establish the Administrator 
as the approving entity as well as the reciprocity of registration for 
SAAs to provide reciprocal registration for approved programs. This 
section also describes the proposed requirement for National Program 
Standards for Apprenticeship to align with National Occupational 
Standards for Apprenticeship under proposed Sec.  29.13.
---------------------------------------------------------------------------

    \135\ ETA, OA Circular No. 2022-01, ``Updated Guidance--Minimum 
National Program Standards for Registered Apprenticeship Programs,'' 
Feb. 16, 2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-01.pdf.
    \136\ OA, ``Hire Veterans,'' https://www.apprenticeship.gov/employers/hire-veterans (last visited July 20, 2023).
---------------------------------------------------------------------------

    Proposed paragraph (a) would establish the criteria that National 
Program Standards for Apprenticeship must meet to be registered by the 
Administrator.
    Proposed Sec.  29.14(a)(1) would explain that National Program 
Standards for Apprenticeship must be for training in an occupation not 
ordinarily subject to Federal, State, or local licensing requirements. 
The Department recognizes that the existence of Federal, State, or 
local licensing requirements impedes the ability of a registered 
apprenticeship program to operate with a uniform set of standards 
nationally. For an occupation with licensing requirements that differ 
across jurisdictions, the training and related instruction necessary to 
prepare an apprentice for that occupation would not be adequately 
addressed by National Program Standards for Apprenticeship that aim to 
provide a uniform standards and training experience regardless of where 
the program is taking place. Accordingly, the Department has determined 
that National Program Standards for Apprenticeship would be appropriate 
for occupations not subject to differing licensing requirements.
    Proposed Sec.  29.14(a)(2), in alignment with the Department's 
broader goal of driving system alignment and apprenticeship expansion 
on a national scale, would require that National Program Standards for 
Apprenticeship must be national or multistate in their design, 
suitability, and scope. The Department recognizes that there are 
multiple ways in which a program may be national or multistate in 
design, suitability, and scope. For instance, a program sponsor may be 
a national or multistate employer with business operations in multiple 
States. In addition, a program sponsor may be an international or 
transnational company with business operations in multiple States as 
well as in different countries. Also, a sponsor may be a national 
organization that has only one physical location in a single State but 
is affiliated with multiple employers that operate in multiple States.
    Proposed Sec.  29.14(a)(3) explains that any National Program 
Standards for Apprenticeship would need to meet the requirements in 
proposed parts 29 and 30.
    Proposed paragraph (b) explains that upon demonstration that the 
National Program Standards for Apprenticeship meet the established 
criteria set forth in proposed paragraph (a), the Administrator would 
register the standards on a nationwide basis for Federal purposes. The 
Administrator would endeavor to render a determination on whether to 
approve and register a set of National Program Standards for 
Apprenticeship within 90 days of their receipt from an applicant, 
consistent with proposed Sec.  29.8. If the Administrator were to 
decline to register the standards, the Administrator would provide a 
written explanation explaining the decision.
    Proposed paragraph (c) explains how National Program Standards for 
Apprenticeship would be treated by SAAs. In furtherance of the goal of 
driving system alignment and apprenticeship expansion on a national 
scale, SAAs would be required to reciprocally approve and register 
programs registered via National Program Standards for Apprenticeship.
    Proposed paragraph (d) would explain that National Program 
Standards for Apprenticeship must use any existing National 
Occupational Standards for Apprenticeship that have been approved under 
proposed Sec.  29.13. This requirement would only apply if a sponsor is 
seeking registration of National Program Standards for Apprenticeship 
in an occupation for which the Administrator has already approved 
National Occupational Standards for Apprenticeship. For those 
occupations where National Occupational Standards for Apprenticeship 
currently exist, a program sponsor seeking registration of its National 
Program Standards for Apprenticeship would need to use such National 
Occupational Standards. The Department further clarifies that a program 
could pursue registration using National Program Standards for 
Apprenticeship if there is no established set of National Occupational 
Standards for Apprenticeship for the subject occupation. The existing 
National Program Standards for Apprenticeship are already in use within 
the National Apprenticeship System and were last updated and outlined 
in the Department's OA Circular No. 2022-01.\137\ National Program 
Standards for Apprenticeship are meant to assist a national 
organization or employer set up a high-quality apprenticeship training 
program with a nationally applicable set of standards. Under the 
existing system, programs that use the existing National Program 
Standards for Apprenticeship and operate a program on a multistate or 
nationwide basis do not need to register their apprenticeship program 
in each of the States in which it operates. Proposed paragraph (d) 
would provide that when a set of National Occupational Standards for 
Apprenticeship has been vetted by industry and approved by the 
Administrator for an occupation, National Program Standards for 
Apprenticeship for a registered apprenticeship program in the 
occupation must align with the established National Occupational 
Standards. This requirement to utilize approved National Occupational 
Standards for Apprenticeship, where they exist, would be included to 
make sure that National Program Standards for Apprenticeship align with 
approved National Occupational Standards for Apprenticeship, which the 
Department thinks will further its goal of driving system alignment by 
ensuring that all National Program Standards for Apprenticeship, in a 
given occupation, adhere to a common set of industry-validated 
standards. In addition, greater utilization would support the National 
Apprenticeship System modernization efforts to enhance the quality of 
programs and create greater efficiency in the development and 
registration of programs.
---------------------------------------------------------------------------

    \137\ ETA, OA Circular No. 2022-01, ``Updated Guidance--Minimum 
National Program Standards for Registered Apprenticeship Programs,'' 
Feb. 16, 2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-01.pdf. Note this circular's statement that 
it ``supersedes and replaces OA Circular 2018-01,'' reflecting that 
OA has been developing and refining tools for national 
organizations, employers, or both to set up and operate quality 
apprenticeship training programs on a nationwide basis for several 
years.
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    Programs registered with National Program Standards for 
Apprenticeship may receive certain benefits, such as reduced reporting 
requirements to Registration Agencies, VALOR Act eligibility, and 
registration status for Federal purposes, so the need to ensure high-
quality programs is vital. The Department is interested in any comments 
on this approach given the increased Federal benefits associated with 
this model, the quality expectations of a program operating with this 
designation, and any potential burdens with following a National 
Occupational Standard approach. The

[[Page 3179]]

Department notes that while National Occupational Standards for 
Apprenticeship are approved as the industry consensus apprenticeship-
related training curriculum for an occupation, an entity seeking 
approval of National Program Standards for Apprenticeship may make 
minor modifications to the National Occupational Standards based on the 
needs of the sponsor provided that the submitted National Program 
Standards substantially align with the National Occupational Standards. 
Examples of modifications that would be acceptable include any 
additions of sponsor or employer-specific training in addition to what 
is in the approved framework, the addition of competencies or on-the-
job training hours to achieve those competencies or both, and the 
addition of any additional or academic-credit-bearing related 
instruction. The Department is interested in any comments as to what 
the Department should identify as acceptable deviations that 
substantially align without undermining the occupation or quality of 
the standards.
Section 29.15--National Guidelines for Apprenticeship Standards
    Proposed Sec.  29.15, the ``National Guidelines for Apprenticeship 
Standards'' section is new and describes the proposed criteria for 
approval of National Guidelines for Apprenticeship Standards, the 
Certificate of Recognition, local registration requirement, the 
criteria for resubmission, and required alignment with the National 
Occupational Standards for Apprenticeship. National Guidelines for 
Apprenticeship Standards are a template of standards of apprenticeship 
that are registered nationally and adopted locally. They would allow 
local affiliates of national organizations or an employer with 
locations in multiple States to efficiently adapt recognized guidelines 
for local registration of program standards. Since National Guidelines 
for Apprenticeship Standards are intended to be adapted for local 
registration by local affiliates of national organizations or an 
employer with a national presence with locations in multiple States, 
the establishment of a uniform process to recognize such standards 
would drive system alignment by ensuring locally registered programs 
adhere to a common set of industry-validated standards.
    Unlike National Program Standards for Apprenticeship, which can be 
registered once nationwide, National Guidelines for Apprenticeship 
Standards are a customizable template for registered apprenticeship 
program standards. They would provide a nationally certified--but 
locally registered--framework for occupational standards, while also 
preserving programmatic flexibility to account for local needs and 
requirements. For example, potential program sponsors with nationally 
designed apprenticeship program standards that cover certain 
occupations that are subject to extensive State licensing requirements 
may be more appropriately served by obtaining National Guidelines for 
Apprenticeship Standards certification for their program and then 
registering each program utilizing such standards on a State-by-State 
basis; this is because the National Guidelines for Apprenticeship 
Standards model would allow the template standards developed by the 
sponsor to be modified to account for these additional State law 
requirements and then registered in those States. In addition, the 
National Guidelines for Apprenticeship Standards approach may be more 
suitable for organizations with national scope, including labor 
organizations as well as trade and industry associations, that wish to 
provide State or local affiliates of their organizations with the 
option to adapt a set of nationally designed apprenticeship program 
standards to meet local conditions and register such programs on a 
State-by-State basis. Similarly, the National Guidelines for 
Apprenticeship Standards, with its ability to adapt to local labor 
market needs, may be more suitable for workforce intermediary program 
sponsors that only intend to provide related instruction in connection 
with a registered apprenticeship program.
    Adoption of National Guidelines for Apprenticeship Standards often 
provides an expedited pathway for a local affiliate to register an 
apprenticeship program and provides program flexibility to accommodate 
local industry and regional economy needs. Proposed Sec.  29.15(c) 
provides for State or local affiliates of a national organization to 
use the proposed National Guidelines for Apprenticeship Standards as a 
template for their specific standards of apprenticeship that are 
submitted to the applicable Registration Agency, including SAAs, for 
registration of individual programs. By using a template that has 
already been registered, the sponsor would be able to more easily meet 
the requirements for registration locally. For those occupations where 
National Occupational Standards for Apprenticeship currently exist, a 
program sponsor seeking certification of its National Guidelines for 
Apprenticeship Standards would need to use such National Occupational 
Standards. If a sponsor is seeking certification of National Guidelines 
for Apprenticeship Standards in an occupation for which the 
Administrator has already approved National Occupational Standards for 
Apprenticeship pursuant to proposed Sec.  29.13, the sponsor would need 
to use those approved National Occupational Standards.\138\
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    \138\ The Department clarifies that programs can still use 
National Guidelines for Apprenticeship Standards if there is not an 
established set of National Occupational Standards for 
Apprenticeship for the subject occupation (see below).
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    The criteria for National Guidelines for Apprenticeship Standards 
established in this section would require that guidelines submitted by 
organizations must be national in their applicability and scope with 
respect to the covered occupation; be suitable for either adoption or 
adaptation by State or local affiliates of the program sponsor; and 
satisfy the applicable requirements of this part and 29 CFR part 30. 
This section would grant the Administrator sole approval authority. 
This section would also describe the requirement for State and local 
affiliates to register a program in accordance with proposed Sec.  
29.10 and the requirement for National Guidelines for Apprenticeship 
Standards to align with National Occupational Standards for 
Apprenticeship under proposed Sec.  29.13.
    National Guidelines for Apprenticeship Standards are a concept that 
exists in the National Apprenticeship System pursuant to the current 
Sec.  29.3(h)(1), and they have been further recognized in previously 
issued subregulatory guidance.\139\ The Department has seen significant 
success in their use, particularly in certain occupations and 
industries such as construction where there are national and local 
organizations affiliated with each other; the national organization is 
responsible for maintaining the core criteria and elements of the 
templates; and the local affiliates of the national organization 
locally register with a Registration Agency. Their use, and the 
elevation of them as a tool in this proposed regulation, would ensure 
this vital concept can drive apprenticeship expansion.
---------------------------------------------------------------------------

    \139\ ETA, OA Circular No. 2022-02, ``Guidance--National 
Guidelines for Apprenticeship Standards,'' Feb. 16, 2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-02.pdf.
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    Proposed paragraph (a) would establish the criteria that National 
Guidelines for Apprenticeship Standards must meet to be recognized by 
the Administrator.

[[Page 3180]]

    Proposed Sec.  29.15(a)(1) would explain that National Guidelines 
for Apprenticeship Standards must be national in their applicability 
and with respect to the covered occupation. The Department recognizes 
that there are multiple ways in which an organization may demonstrate 
that their standards are national in applicability and scope. For 
example, an organization seeking recognition of National Guidelines for 
Apprenticeship Standards may demonstrate that they have a national 
presence with local affiliates in different States, or by demonstrating 
that they have a presence in multiple States, even if the organization 
is concentrated regionally. The Department has proposed this criterion 
because the intent of National Guidelines for Apprenticeship Standards 
is to create an adaptable template of standards that can be tailored to 
meet regional labor market requirements. For example, an occupation 
suitable for registered apprenticeship may need to be adjusted to align 
with local conditions or requirements such as the terms of a collective 
bargaining agreement, or applicable State and local laws and 
regulations such as occupational licensing or ratio requirements.
    Proposed Sec.  29.15(a)(2) would explain that National Guidelines 
for Apprenticeship Standards must be suitable for use by State or local 
affiliates of the program sponsor. National Guidelines for 
Apprenticeship Standards are a template intended for adaptation, 
customization, and ultimately, registration at the local level. 
Accordingly, the Department proposes this requirement to ensure that 
National Guidelines for Apprenticeship Standards would be designed for 
this intended purpose.
    Proposed Sec.  29.15(a)(3) would explain that, as with any program 
standards, National Program Standards for Apprenticeship must meet the 
requirements in proposed parts 29 and 30.
    Proposed paragraph (b) would explain that upon demonstration that 
the National Guidelines for Apprenticeship Standards meet the 
established criteria set forth in proposed paragraph (a), the 
Administrator will recognize the standards. If the Administrator 
declines to recognize the standards, the Administrator would provide a 
written explanation explaining the decision. The Administrator would be 
solely responsible for the recognition of National Guidelines for 
Apprenticeship Standards and would seek to review these submissions 
within 90 days of receipt, consistent with the Administrator's goal to 
review National Program Standards for Apprenticeship submissions within 
90 days of receipt.
    Proposed paragraph (c) would explain the process by which State or 
local affiliates of the organization receiving recognition of National 
Guidelines for Apprenticeship Standards may seek registration of an 
individual program. National Guidelines for Apprenticeship Standards 
are a template intended to be adapted or adopted for local 
registration. Accordingly, the Department provides in proposed 
paragraph (c) that State or local affiliates of a national organization 
may use the National Guidelines for Apprenticeship Standards as a 
template for their specific standards of apprenticeship that are 
submitted to the applicable Registration Agency, including SAAs, for 
registration of individual programs. National Guidelines for 
Apprenticeship Standards may be adjusted for the purposes of local 
registration to meet State or local requirements such as ratios, 
safety, occupational licensing requirements, different wage scales, and 
contact information. The Department is interested in any comments about 
other acceptable adjustments between the certified National Guidelines 
for Apprenticeship Standards and the locally registered standards.
    Proposed paragraph (d) would explain when National Guidelines for 
Apprenticeship Standards must be resubmitted for approval by the 
Administrator. The Department recognizes that organizations may amend 
the content of National Guidelines for Apprenticeship Standards based 
on changes to an occupation's training needs, the needs of its State 
and local affiliates, or other reasons. The Department also recognizes 
that a periodic review can help ensure that National Guidelines for 
Apprenticeship Standards continue to meet the training needs of 
apprentices and to meet the industry-validated standards for a specific 
occupation. Accordingly, proposed paragraph (d) would require that 
National Guidelines for Apprenticeship Standards must be resubmitted 
for approval upon amendment to the standards or at least every 5 years, 
from the date that the standards are originally approved. The 
Department is proposing 5 years to align with the general requirement 
that program reviews occur every 5 years. Generally, the program review 
period has been an opportunity for programs to update their standards 
to ensure they continue to meet the requirements of 29 CFR parts 29 and 
30, and are current with any changes to approved occupations, new laws, 
regulations, or subregulatory guidance. There is no similar requirement 
currently for sponsors of National Guidelines for Apprenticeship 
Standards to update their standards, which leads to inconsistencies 
between the local registrations and National Guidelines for 
Apprenticeship Standards. This proposal would require a certification 
timetable. The Department is interested in any comments about this 
concept or any different timeframes it should consider.
    Proposed paragraph (e) would explain that National Guidelines for 
Apprenticeship Standards must use any existing National Occupational 
Standards for Apprenticeship that have been approved under proposed 
Sec.  29.13. This requirement would only apply if a sponsor is seeking 
registration of National Guidelines for Apprenticeship Standards in an 
occupation for which the Administrator has already approved National 
Occupational Standards for Apprenticeship. To define and communicate 
the purpose and intended use of National Occupational Standards for 
Apprenticeship, National Program Standards for Apprenticeship, and 
National Guidelines for Apprenticeship Standards, the Department 
clarifies that programs can pursue registration using National 
Guidelines for Apprenticeship Standards in scenarios where National 
Occupational Standards have not been developed. National Guidelines for 
Apprenticeship Standards are an existing tool for potential registered 
apprenticeship stakeholders to utilize, and their use and parameters 
were outlined in the Department's OA Circular No. 2022-02.\140\ 
National Guidelines for Apprenticeship Standards have been used by 
national organizations seeking to establish registered apprenticeship 
programs amongst their local affiliates and can be adjusted based on 
local workforce needs or conditions. The Department expects that the 
proposed National Guidelines for Apprenticeship Standards would 
continue to be used for this purpose, including when there is no 
established set of National Occupational Standards for Apprenticeship. 
However, when National Occupational Standards for Apprenticeship have 
been developed and approved for an occupation (with substantial 
industry vetting and review and approval by the Administrator), the 
Department seeks to align any National Guidelines for Apprenticeship 
Standards within that occupation with the established National 
Occupational Standards.
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    \140\ Ibid.
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    The Department anticipates that aligning National Guidelines for

[[Page 3181]]

Apprenticeship Standards with approved National Occupational Standards 
for Apprenticeship would further its goal of driving system alignment 
by ensuring that all National Guidelines for Apprenticeship Standards, 
in a given occupation, adhere to a common set of industry-validated 
standards. The Department notes that while National Occupational 
Standards for Apprenticeship are approved as the industry consensus 
apprenticeship-related training curriculum for an occupation, there may 
be some minor modifications to the National Occupational Standards 
based on the needs of the sponsor. Deviations from the National 
Occupational Standards for Apprenticeship would be allowed, but the 
Administrator would ensure that submissions of National Guidelines for 
Apprenticeship Standards substantially align with the National 
Occupational Standards. In addition to the examples mentioned in 
paragraph (c) above, additional examples of modifications that would be 
acceptable include any additions of sponsor or employer-specific 
training in addition to what is in the approved framework, the addition 
of competencies or on-the-job training hours to achieve those 
competencies or both, and the addition of any additional or academic-
credit-bearing related instruction. The Department is interested in any 
comments as to what they recommend are acceptable deviations that still 
substantially align with National Occupational Standards for 
Apprenticeship for that occupation without undermining the occupation 
or quality of the standards.
Section 29.16--End-Point Assessment and Certificate of Program 
Completion
    Proposed Sec.  29.16 would require registered apprenticeship 
programs to administer an end-point assessment at the conclusion of the 
apprenticeship term to establish the apprentice's successful attainment 
of all of the knowledge, skills, and competencies associated with the 
occupation. The purpose of this new requirement is to provide objective 
confirmation that the apprentice has acquired all of the skills and 
competencies required to be proficient in the occupation covered by the 
program. A rigorous end-point assessment at the conclusion of the 
apprenticeship is essential to give employers in an industry or sector 
confidence that the worker can perform successfully in the occupation 
in which they have been trained, and possess a set of relevant skills 
that are transferrable within that industry. The absence of an end-
point assessment requirement in the current apprenticeship regulation 
means that individual apprenticeship program sponsors can adopt widely 
differing methods of assessing apprentice performance, which means that 
other employers within an industry or sector cannot be sure whether a 
graduating apprentice has really ``made the grade'' for proficiency in 
the occupation. The end-point assessment should be the culminating 
activity of the apprenticeship, and an apprentice should only be 
awarded a Certificate of Completion upon successful completion of the 
assessment. The Department takes the view that any additional burdens 
that this new requirement may impose on program sponsors would be 
outweighed by the significant practical benefits that would accrue to 
both employers and apprentices on account of a more uniform and 
rigorous standard for assessing and confirming the competencies 
acquired by apprentices. The proposed introduction of an end-point 
assessment requirement for apprenticeship programs is also consistent 
with the Department's goal of developing a highly skilled American 
workforce that is capable, agile, and competitive at both the domestic 
and international level.
    Throughout the course of a registered apprenticeship program, 
apprentices will learn how to perform critical job tasks, understand 
and apply theoretical concepts, and continuously develop a set of core 
competencies for the occupation for which they are receiving 
apprenticeship training. Developing occupational competencies is 
important for apprentices' ability to adequately complete the discrete 
set of tasks necessary to accomplish a job task they would be assigned 
in the occupation after their apprenticeship training. In order to 
fully realize the benefits of the high-quality training and instruction 
of a registered apprenticeship program for both apprentices and their 
employers, apprenticeship programs should implement effective training 
protocols and accurate assessments to ensure apprentices are not only 
competent in the discrete job tasks for an occupation, but also 
proficient in the occupation overall. This includes assessing the 
apprentice's ability to perform the task(s) safely and accurately 
(competently), as well as timely and efficiently. Businesses often need 
their workforce to complete work to the satisfaction of their customers 
within a timeframe that makes it worthwhile (i.e., profitable) for the 
business to assign tasks to their workers. For example, an electrician 
may need to complete work within a set timeframe to ensure that the 
hourly charge to the customer, the hourly wages paid to the 
electrician, and the other costs of completing the work (e.g., 
equipment maintenance, travel costs), all add up to a profitable 
endeavor. Or a business may depend on fitting as many customer orders 
as possible into a certain timeframe (e.g., a day, a week) to offset 
costs and turn a profit. The Department proposes to add end-point 
assessments to the registered apprenticeship model to encourage 
programs to consider this important apprenticeship outcome--the 
proficiency of the workforce in an occupation--and develop a program 
that results in a highly trained, proficient workforce. The Department 
expects that end-point assessments will ultimately benefit individual 
employers or sponsors as well as the quality, skill, and readiness of 
the occupational workforce throughout a given sector.
    Apprentices who successfully complete the assessment would be able 
to demonstrate to employers throughout an industry or sector that they 
are proficient in their occupation, and that their skills are 
transferrable between employers in the relevant sector. The successful 
completion of an end-point assessment would benefit apprentices by 
improving their employability and labor mobility and would add value to 
the Certificate of Completion earned by the apprentice. The assessment, 
which the sponsor develops according to the parameters of their 
program, could involve a practical, hands-on application of the 
apprentice's acquired skills to the completion of a project or the 
solution of a problem; alternatively, it may involve both a practical 
component and a written component that assesses the acquisition of 
occupation-relevant theoretical knowledge by the apprentice. Other 
methods would be allowed under this approach and may simply take the 
form of an individual meeting, such as a performance review, to assess 
and provide feedback on the apprentice's proficiency.
    Several nations with well-regarded apprenticeship systems require 
an apprentice to complete an end-point assessment at the conclusion of 
their apprenticeship training; among these nations are Canada, England, 
Germany, Switzerland, and Austria. These assessments utilize nationally 
applicable standards in evaluating the apprentice's proficiency in an 
occupation. The Department expects that the end-point assessment 
requirement would lend greater credibility and value to the 
apprenticeship credential, and potential

[[Page 3182]]

employers might have greater confidence in the capabilities of 
apprentices who have passed such an examination at the conclusion of 
their training. In Canada, for example, the Red Seal Program has 
established such final assessments in dozens of skilled trades, and the 
passage of a Red Seal examination provides employers with an assurance 
that the passing apprentice is proficient in an occupation. In 
addition, apprenticeship stakeholders in the United States, such as the 
ACA, have discussed the importance of conferring proficiency in 
apprenticeship training.\141\ The ACA's 2022 Interim Report also 
contained a recommendation to review international workforce training 
and apprenticeship models to understand best practices and identify 
potential enhancements to the U.S. system. The Department thinks that 
an end-point assessment is a way for an apprentice to demonstrate 
proficiency (as suggested by the ACA), and to do so in a manner that 
has worked in other countries.
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    \141\ Recommended principle: Competency must be obtained under 
any of these three models; include standards around time in on-the-
job training to ensure proficiency. ACA, ``Interim Report to the 
Secretary of Labor,'' May 16, 2022, at 14, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
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    Proposed Sec.  29.16(a) would establish the requirement of an end-
point assessment requirement for all programs to ensure that they 
measure an apprentice's attainment of occupational skills, knowledge, 
and competencies necessary to determine proficiency in an occupation. 
The Department recognizes that end-point assessments developed and 
administered by a given program's operators may result in an assessment 
that is more relevant to the training and instruction provided through 
the program. However, the Department also recognizes the value of 
assessments performed by independent organizations or third parties to 
reduce any undue bias and incorporate ideas from outside partners. The 
Department invites public comment about the value and feasibility of 
end-point assessments generally, as well as whether such assessments 
should be performed by independent or third parties or by those 
operating a program and delivering on-the-job training or related 
instruction.
    Proposed Sec.  29.16(b) would provide that an apprentice must be 
entitled to at least one additional opportunity to complete an end-
point assessment if they do not pass on the first attempt. This is 
intended to ensure apprentices are entitled to a fair opportunity to 
pass the assessment if their first attempt to do so is not successful, 
and that the end-point assessment does not operate as an inequitable 
significant barrier to program completion and journeyworker entry, such 
as for apprentices with disabilities. The Department is interested in 
any comments on if there should be a limit to the number of 
opportunities an apprentice may have to complete the assessment, 
balancing the burden of performing multiple assessments against the 
importance of providing opportunities for apprentices to demonstrate 
proficiency.
    Proposed Sec.  29.16(c) would include a provision that ensures an 
apprentice's end-point assessment includes an appropriate reasonable 
accommodation, if requested prior to the administration of the 
assessment. This proposed provision is intended to ensure that 
registered apprenticeship programs are fully accessible to job seekers, 
including those with disabilities that may require reasonable 
accommodations. The ACA's DEIA subcommittee recommended OA take steps 
to identify and assess any barriers to accessing or completing a 
registered apprenticeship program, and the Department agrees that 
programs should make reasonable accommodations when appropriate.\142\
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    \142\ Specifically, the ACA recommended that DOL should gather 
new data on registered apprenticeship programs' and apprentices' 
needs through formal, representative surveys, including 
understanding barriers to completion and long-term career pathways. 
CA, ``Interim Report to the Secretary of Labor,'' May 16, 2022, at 
9, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
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    Proposed Sec.  29.16(d) would provide that individuals who 
successfully complete the on-the-job training and related instruction 
requirements of a program and pass an end-point assessment are eligible 
for a Certificate of Completion from the appropriate Registration 
Agency.
    As proposed, this section would not require that sponsors use a 
specific type of assessment, given the unique needs of different 
industries and occupations. However, the Department sees an opportunity 
for greater standardization of tools, such as an end-point assessment, 
by engaging industry and sponsors alike through the development and 
subsequent approval process of National Occupational Standards for 
Apprenticeship. The Department invites comments on whether the final 
rule should expressly require that all end-point assessments 
administered by sponsors should objectively measure the apprentice's 
acquisition of the relevant knowledge, skills, and competencies 
necessary to demonstrate proficiency in the occupation covered by the 
program, or if the proposed rule should remain silent and leave it to 
sponsors to establish what they think is an appropriate assessment. The 
Department is particularly interested in comments around any burdens or 
challenges with this approach, the extent to which programs have 
already adopted an end-point assessment as a means for measuring 
attainment, and the value of strengthening those requirements.
    In addition, the Department invites commenters to discuss whether 
the final rule should expressly require that end-point assessments 
should only be administered by qualified and objective examiners who 
have not previously provided either on-the-job training or related 
instruction to the apprentice during the apprenticeship term. Finally, 
the Department invites commenters to opine on whether the final rule 
should permit sponsors to utilize third-party examinations as the 
program's end-point assessment in instances where: (1) an independent 
certification body within a particular industry or sector offers a 
nationally recognized examination that incorporates uniform, industry-
recognized quality standards to objectively measure and validate the 
attainment of the relevant knowledge, skills, and competencies for the 
occupation(s) covered by the registered apprenticeship program; or (2) 
the occupation covered by the apprenticeship program is one that 
requires the passing of a State-mandated and administered examination 
to receive a license or certificate enabling qualified individuals to 
perform work in that occupation within a particular jurisdiction.
Section 29.17--Complaints
    Complaints or expressions of concern about a program are critical 
for transparency into the daily operation of a registered 
apprenticeship program, an apprenticeship program's adherence to the 
labor and quality standards throughout the parts 29 and 30 regulations, 
and ultimately, the protection of apprentices' welfare and well-being. 
Apprentices are vulnerable to retaliation or other negative outcomes if 
their ability to speak up confidentially and securely is curtailed or 
compromised. Apprentices must be afforded opportunities to file 
complaints if they are subjected to unsafe or unfair conditions. The 
Department believes that the existing complaints process in part 29 
should be retained and proposes enhancements to the complaints policy 
and additional procedures to investigate complaints, protect 
complainants, and improve transparency and accountability throughout 
the National

[[Page 3183]]

Apprenticeship System. Proposed Sec.  29.17 would also allow for non-
apprentices to file complaints so long as the complaint arises under a 
registered apprenticeship agreement or alleges a violation of this 
part.
    Proposed Sec.  29.17 would carry forward much of existing Sec.  
29.12 with a few notable changes. Proposed Sec.  29.17(e) would 
establish more robust and detailed procedures for investigating 
complaints and would afford anonymity to complainants, to the extent 
practicable, as explained below.
    Proposed Sec.  29.17(a) would carry forward existing Sec.  29.12(a) 
verbatim.
    Proposed Sec.  29.17(b) would carry forward much of existing Sec.  
29.12(b), which allows apprentices not covered by a collective 
bargaining agreement to submit a complaint to the Registration Agency 
when a controversy or difference arises under an apprenticeship 
agreement. Two changes in proposed Sec.  29.17(b) would permit but not 
require that disputes be resolved locally before a complaint is 
submitted to the Registration Agency. OA anticipates that most 
complaints will be resolved most efficiently and effectively by the 
program sponsor. However, the proposed change to Sec.  29.17(b) 
recognizes that there should be an avenue for complaints to be filed 
directly with the Registration Agency, such as if the matter complained 
of is particularly egregious or if the complainant wishes to remain 
anonymous. Complainants who wish to remain anonymous would need to file 
their complaints directly with the Registration Agency. Under proposed 
Sec.  29.17(b), a Registration Agency would still be prohibited from 
resolving a complaint covered by a collective bargaining agreement. 
Upon receiving a complaint relating to a union program, OA would be 
able to ask the sponsor, participating employer, complainant, or union 
representatives whether the complaint is covered by a collective 
bargaining agreement. OA would also be able to request a copy of the 
collective bargaining agreement. Proposed Sec.  29.17(b) would also 
clarify that a complaint must either arise under an apprenticeship 
agreement or allege a violation of this part. Minor stylistic changes 
were also incorporated into proposed Sec.  29.17(b) for clarity.
    Proposed Sec.  29.17(c) would revise the content of the first 
sentence of existing 29 CFR 29.12(c) and would establish a deadline to 
file a complaint within 300 calendar days after the conclusion of the 
events that gave rise to the dispute or the alleged violation of this 
part. In the case of an alleged continuing violation of this part, the 
300-day period would begin on the day when the violation ceases. 
However, to accommodate extenuating circumstances that an apprentice 
might face, the Registration Agency would be able to extend the filing 
time upon a showing of good cause. For example, the granting of an 
extension for good cause could arise where the complainant only became 
aware of the alleged violation at a point in time more than 300 days 
after the alleged occurrence of the alleged event, or such an extension 
might be granted in instances where an apprentice missed the 300-
calendar-day deadline because of an illness or an injury that prevented 
them from filing a timely complaint. This proposed time period aligns 
with the complaint timeline under 29 CFR part 30 and is designed to 
allow apprentices sufficient time to file a complaint with the 
Registration Agency. The Department is also proposing a period of 300 
days to file a complaint in recognition of the important quality 
control function that complaints and complaint investigations serve.
    Proposed Sec.  29.17(d)(1) is new and would require that the 
complaint include a means of contacting the complainant or the 
authorized representative. Requiring the complaint to contain a means 
for contacting the complainant or authorized representative, but not 
identifying information such as a name or physical address, is intended 
to facilitate the submission of anonymous complaints while also 
allowing the Registration Agency to contact the complainant or 
representative as part of their review of the complaint. The 
requirement in existing Sec.  29.12(c) that complaints be signed would 
not be carried forward in this proposed rule to facilitate the 
submission of anonymous complaints.
    Proposed Sec.  29.17(d)(2) is new and would require that the 
complaint include the identity of the individual or entity that is 
alleged to be responsible for the conduct giving rise to the complaint 
to facilitate the Registration Agency's investigation of any complaint.
    Proposed Sec.  29.17(d)(3) incorporates language in existing Sec.  
29.12(c) with minor clarifying changes. As proposed, it would require a 
short description of the events, facts, or circumstances giving rise to 
the complaint, including a discussion of when the events giving rise to 
the complaint took place.
    Proposed Sec.  29.17(e) is new and would explain the process by 
which the Registration Agency will investigate a complaint. It would 
require that the Registration Agency proceed expeditiously to 
investigate complaints. The proposed requirement that investigation of 
complaints be conducted expeditiously is intended to require 
Registration Agencies to resolve complaints, whenever possible, before 
impacted apprentices complete the program so that the apprentice can 
benefit from any action necessary to address the matter. However, the 
Department invites comments as to whether it is either feasible or 
appropriate to establish a uniform ceiling in this proposed rulemaking 
on the number of days allotted to a Registration Agency to complete the 
investigation of a complaint.
    Proposed Sec.  29.17(e)(1)(i) would require the Registration Agency 
to provide written notice that the complaint was received. Initially, 
only the complainant and the authorized representative, if any, would 
receive notice of the complaint.
    Proposed Sec.  29.17(e)(1)(ii) would require the Registration 
Agency to investigate complete complaints.
    Proposed Sec.  29.17(e)(1)(iii) would require the Registration 
Agency to complete a thorough investigation of the complaint. 
Documentation in the complaint file should include the complaint 
itself, a rebuttal statement from the respondent (if provided), 
interview statements, copies of pertinent documents as appropriate, and 
a narrative report of findings. Proposed Sec.  29.17(e)(1)(iii) is 
intended to require Registration Agencies to compile a robust complaint 
investigation file, especially where the complaint was filed with the 
Registration Agency in the first instance. A robust file is needed to 
ensure that an adequate investigation was completed, to facilitate 
further review, and to facilitate referral to other government agencies 
or the initiation of a program review, if warranted. Although 
Registration Agencies would collect names and contact information of 
witnesses, Registration Agencies should protect such identifying 
information consistent with privacy laws, including the Freedom of 
Information Act, including withholding information where appropriate.
    Proposed Sec.  29.17(e)(1)(iv) would require the Registration 
Agency to provide a written notification of its findings to the 
complainant and respondent at the conclusion of the investigation.
    Proposed Sec.  29.17(e)(2) is new and would require the 
Registration Agency to protect the identity of the complainant to the 
extent practicable. If a complainant expresses a desire to remain 
anonymous, the complaint would need to be filed with the Registration 
Agency in the first instance, and the Registration Agency would need

[[Page 3184]]

to take reasonable steps to protect the identity of the complainant, 
such as not naming the complainant in interviews or in response to 
inquiries from the sponsor or respondent. Nevertheless, many complaint 
identities may be deduced by the respondent, sponsor, or employer 
because the complaint relates to a workplace-specific dispute or 
because of the relatively small number of apprentices in the program. 
Where complaints are filed anonymously, the Department anticipates that 
the assigned investigator and the complainant will confer early in the 
complaint investigation process and as needed thereafter to discuss 
what steps may be taken to investigate the complaint without 
compromising the anonymity of the complainant. As discussed below, 
proposed Sec.  29.17(i) would incorporate an anti-retaliation provision 
designed to protect complainants from adverse actions for filing a 
complaint, which is meant to mitigate a complainant's concern and 
foster the filing of complaints and the complainant's cooperation.
    Proposed Sec.  29.17(e)(3) explains that if at the conclusion of a 
complaint investigation, the Registration Agency determines that a 
violation of part 29 or the apprenticeship agreement occurred, the 
Registration Agency would attempt to resolve the violation as quickly 
as possible, generally through technical assistance, initiating a 
program review, or the initiation of deregistration proceedings.
    Proposed Sec.  29.17(f) would carry forward existing Sec.  
29.12(e), which states that no part of existing Sec.  29.12 precludes 
apprentices from pursuing alternative avenues of relief authorized 
under Federal, State, or local law.
    Proposed Sec.  29.17(g) would carry forward existing Sec.  29.12(f) 
but clarify that, for an SAA to utilize a complaint review procedure 
that differs from the one provided here, the complaint review procedure 
would need to first be approved by the Administrator as part of the 
process described in proposed Sec.  29.27.
    Proposed Sec.  29.17(h) is new and would establish anti-retaliation 
protections under part 29 by adapting language from part 30. This 
provision would prohibit a broad range of adverse actions, including 
intimidation, threats, coercion, retaliation, and discrimination. The 
provision would protect a broad range of protected activities, 
including filing a complaint, opposing a practice prohibited by this 
part or an apprenticeship agreement, furnishing information, or 
exercising any rights or privileges afforded under this part or an 
apprenticeship agreement. Notably, anti-retaliation complaints cannot 
be filed anonymously because Registration Agencies must always reveal 
the identity of the complainant to seek a remedy.
    Proposed Sec.  29.17(i) would speak to consequences for sponsors 
that fail to prevent or remedy retaliation as defined in paragraph (h), 
including retaliation by a participating employer in the sponsor's 
program. The presumptive remedy for sponsors found to have retaliated 
in violation of Sec.  29.17(h) would be to make the apprentice whole. 
If, for example, an apprentice is terminated from a program for filing 
a complaint, the presumptive remedy would be for the apprentice to be 
reinstated to the same step in the registered apprenticeship program 
with back pay plus interest. OA also may pursue a remedy for violations 
of Sec.  29.17(h) by limiting the responsibilities of the individual 
responsible for misconduct such as removing the individual from 
interactions with the complainant, to the extent practicable. 
Regardless of what the appropriate remedy would be, sponsors that fail 
to remedy retaliation may be subject to deregistration under Sec.  
29.20(a).
Section 29.18--Recordkeeping by Registered Programs
    Recordkeeping is an essential and fundamental requirement in 
documenting compliance with the requirements of this rulemaking. Under 
this proposed rule, programs would need to maintain records for the 
purposes of demonstrating compliance to a Registration Agency as part 
of a program review and assisting a Registration Agency in conducting a 
complaint investigation. Programs would also need to maintain sources 
of data or information used to report to the Registration Agency. The 
Department thinks that these proposed requirements balance the needs of 
sponsors, employers, and Registration Agencies to conduct effective 
monitoring and oversight of program compliance with the burden of 
maintaining the required records. The Department is interested in any 
comments on whether the Department should add or subtract records from 
this proposed section.
    Proposed Sec.  29.18 is a new section that would expand upon the 
recordkeeping requirement that is in current Sec.  29.5(b)(23) and 
detail the categories of records that sponsors and any participating 
employers are expected to maintain. Proposed Sec.  29.18 would describe 
the general recordkeeping requirement with respect to specific records, 
the requirement to maintain records for a specific period of time, the 
requirement to allow the Registration Agency access to the records, and 
the format of such records. The section would mirror some of the 
recordkeeping requirements of 29 CFR 30.12 in order to create uniform 
requirements for recordkeeping for registered apprenticeship programs.
    Proposed Sec.  29.18(a) would state the general obligation of the 
program sponsor, and any participating employer, to maintain any 
records that the Registration Agency considers necessary to determine 
whether the sponsor has complied or is complying with the requirements 
of this part and any applicable Federal or State laws. It would further 
list in paragraphs (a)(1) and (2) the specific categories of documents 
that are required to be maintained.
    Proposed Sec.  29.18(a)(1) would require that records be maintained 
concerning employment decisions, such as the hiring or placement, 
promotion, demotion, transfer, layoff, termination, right of return 
from layoff, and rehiring of apprentices. These are typically 
employment records maintained in the ordinary course of business. The 
Department considers these records paramount for a sponsor to maintain 
since they relate to a foundational requirement of registered 
apprenticeship programs, the employment of apprentices. Effective 
oversight of the program would not be possible without such records.
    Proposed Sec.  29.18(a)(2) would require that records be maintained 
related to the operation of the registered apprenticeship program, 
including but not limited to the specific requirements in paragraphs 
(a)(1)(i) through (x).
    Proposed Sec.  29.18(a)(2)(i) would require the maintenance of 
records containing information related to the qualification, 
recruitment, employment, and training of apprentices, such as the 
apprenticeship program standards, apprenticeship agreements, completion 
records, cancellation and suspension records, and program review files. 
This provision would complement proposed Sec.  29.18(a)(1) in that it 
would require maintaining records specific to the operation of the 
apprenticeship training program in addition to the requirements of 
proposed Sec.  29.19(a)(1) regarding the individual employment 
decisions concerning each apprentice. These records are necessary to 
ensure the program is operating in compliance with proposed Sec. Sec.  
29.8 through 29.10.
    Proposed Sec.  29.18(a)(2)(ii) would require maintaining records 
pertaining to each apprentice's performance and

[[Page 3185]]

progress in both the on-the-job training and related instruction 
components of the registered apprenticeship program, as well as records 
related to the apprentice end-point assessments. These recordkeeping 
requirements would also be referenced in the proposed program standards 
at Sec.  29.8(a)(10) and (11). The records are important to demonstrate 
the apprentice's progress during the apprenticeship and at the end-
point assessment. They are related to other important aspects of the 
apprenticeship, such as work process schedules and wage progression, 
and help document the key quality criteria in this proposed rule 
regarding regular assessments of competency. Because competency 
attainment enables apprentices to progress through an apprenticeship, 
records as to how competency attainment is measured are critical for a 
sponsor to retain and have available.
    Proposed Sec.  29.18(a)(2)(iii) would require maintaining records 
pertaining to an apprentice's attainment of an interim credential as 
part of the program, postsecondary academic credit, or other interim 
milestones attained during the course of an apprentice's participation 
in the program, if available. The Department acknowledges that not all 
programs may provide interim credentials or postsecondary academic 
credit; however, those that do would need to maintain records of their 
provision to apprentices. One quality metric proposed in this NPRM 
relates to credential attainment, and maintaining records associated 
with those credentials would be required. The Department has proposed a 
requirement in this proposed rule to have sponsors disclose any interim 
credentials an apprentice receives in the program. Credentials are both 
a key source for documenting apprentice progression and success in a 
program and represent an additional, tangible benefit for apprentices 
in the program. This proposed rule does not propose interim credentials 
or academic credit be provided, but because it would ask that they be 
disclosed, it is vital that the Department can validate this 
information from the sponsor's records if needed.
    Proposed Sec.  29.18(a)(2)(iv) would require maintaining records 
for each apprentice regarding the number of hours of on-the-job 
training, the number of hours of related instruction, the total number 
of hours worked, and the wages and fringe benefits paid for all hours. 
This is an integral part of the standards of apprenticeship and 
apprenticeship agreement, and these records are necessary to 
demonstrate compliance with both.
    Proposed Sec.  29.18(a)(2)(v) would require that records be 
maintained, including personnel records, applicable to any non-EEO 
complaints filed with the Registration Agency pursuant to proposed 
Sec.  29.17.
    Proposed Sec.  29.18(a)(2)(vi) would require that all records be 
maintained related to the safety record of the sponsor and all 
participating employers in the sponsor's program, where applicable, 
including records relating to any safety and health training provided 
to apprentices, incident logs required to be maintained under 
applicable Federal or State occupational safety and health laws, and 
current worker's compensation documentation.
    Proposed Sec.  29.18(a)(2)(vii) would require maintaining any 
records required to be maintained by a program sponsor under 29 CFR 
part 30.
    Proposed Sec.  29.18(a)(2)(viii) would require maintaining any 
records required to be maintained under title 38, United States Code, 
in order for veterans and other individuals eligible for educational 
assistance under such title to use such assistance for enrollment in 
registered apprenticeship programs.
    Proposed Sec.  29.18(a)(2)(ix) would require maintaining records 
demonstrating program compliance with registered apprenticeship 
requirements to meet Federal purposes as defined in this part. This 
could include documents maintained for purposes of compliance with 
registered apprenticeship requirements in Federal grants such as WIOA, 
the IRA, the Davis-Bacon and related Acts, and any Federal purposes.
    Proposed Sec.  29.18(b) is a new requirement in part 29 but would 
use the language in part 30 at Sec.  30.12(d) regarding maintenance of 
records to provide some uniformity to the recordkeeping requirements 
across both sections. Proposed Sec.  29.18(b) would provide that the 
records required by this part and any other information relevant to 
compliance with these regulations must be maintained by a program 
sponsor (or any participating employer, if applicable) for 5 years from 
the date of the making of the record or the personnel action involved, 
whichever occurs later. The 5-year timeframe would be consistent with 
the recordkeeping requirement in 29 CFR 30.12 and align with the 5-year 
program review requirement in proposed Sec.  29.19. This provision 
would also provide that failure to preserve complete and accurate 
records (as would be required by paragraph (a) of this section) 
constitutes noncompliance with this part that could lead to OA 
initiating deregistration proceedings. This language would be similar 
to the language in Sec.  30.12(d).
    Proposed Sec.  29.18(c) would provide that the program sponsor (and 
any participating employer) must allow the Registration Agency access 
to the records described in paragraph (a) of this section upon request 
for the purpose of conducting program reviews and investigating 
complaints arising under part 29; such program reviews and 
investigations may involve the inspecting and copying of books, 
accounts, records (including electronic records), and any other 
material the Registration Agency deems relevant to the review or 
investigation and pertinent to compliance with this part. It would also 
provide that, upon request, the program sponsor (and any participating 
employer) must provide the Registration Agency information about all 
format(s), including specific electronic formats, in which its records 
and other information are available. Finally, it would clarify that 
information obtained in this manner will be used only in connection 
with the administration of this part or other applicable laws. Proposed 
Sec.  29.18(c) would adopt language similar to the part 30 
recordkeeping requirements at Sec.  30.12(f) but specific to records 
related to program reviews and investigations under part 29. This 
access provision is important for the Registration Agency to conduct 
program reviews and investigate complaints arising under part 29.
    Proposed Sec.  29.18(d) is a new requirement. It would acknowledge 
that forms, records, and any other documents used and maintained by the 
program sponsor (and any participating employer) in the administration 
of this part may exist in paper or electronic form or a combination 
thereof. It would also specify that, regardless of the medium, these 
records must be available and accessible as required under paragraph 
(c) of this section for oversight and compliance purposes.
Section 29.19--Program Reviews
    The Department's ability to conduct comprehensive reviews of the 
apprenticeship programs it registers and oversees is the linchpin for 
the quality standards, worker protections, and transparency and 
accountability measures discussed throughout this NPRM's preamble and 
envisioned in the Department's proposed update to the part 29 
regulations. Establishing a clear, transparent, and fair process for 
such reviews in the part 29 regulations is critical for all 
stakeholders within the

[[Page 3186]]

system, including the governmental entities overseeing programs, the 
designers and operators of registered apprenticeship programs, and the 
apprentices who participate in apprenticeship programs. While program 
reviews are essential for giving the Department the tools necessary to 
enforce the part 29 regulations and fulfill its statutory mandate to 
protect the welfare and well-being of apprentices, these reviews are 
also opportunities for programs to identify and address issues or 
discrepancies in service of program improvement. The proposed process 
for program reviews aligns with the Department's current practice of 
allowing programs time to address issues internally and request 
guidance and assistance from the Department or other stakeholders. 
Programs should view program reviews as a useful opportunity for 
program assessment and the identification of near- and long-term steps 
towards improvements in program quality.
    To provide clarity for the regulated community, the Department has 
decided to propose a new section of the part 29 regulations to 
encapsulate all elements of the program review process, which is 
referenced in several places throughout the existing parts 29 and 30 
regulations. For example, 29 CFR 29.5(b)(21), in the existing 
regulation's section on program standards, states that programs must 
affirm compliance with the part 30 EEO regulations, and Sec.  
29.6(b)(1)(ii) refers to EEO compliance reviews as a responsibility of 
Registration Agencies. Under the Department's proposed regulation, EEO 
compliance reviews, quality assurance assessments, and other oversight 
activities would be covered by this new section, now collectively 
referred to as ``program reviews,'' which would clarify the scope of 
Registration Agency review of programs' compliance with the entirety of 
the regulations at parts 29 and 30. In addition to this reorganization 
and consolidation of the program review provisions in the existing 
regulation, the Department is proposing various enhancements to the 
program review process to increase transparency and accountability in 
the system in service of maintaining and improving program quality 
throughout the system.
    Proposed Sec.  29.19(a) would explain that once a program's 
registration is made permanent, the applicable Registration Agency must 
conduct a program review at least every 5 years, though more frequent 
reviews are permitted based on capacity. This timeframe aligns with the 
current rule, wherein new registered apprenticeship programs enter into 
an initial, ``provisional'' status upon registration, and are reviewed 
approximately 1 year after the registration date. Provided that the 
program is operating in accordance with the standards approved by the 
Registration Agency, the program then moves out of ``provisional'' 
status and continues operating as a registered apprenticeship program. 
Such programs are then reviewed once every 5 years, with more frequent 
reviews occurring depending on specific circumstances.\143\ This 
timeframe further aligns with other timelines in the existing 
regulations governing registered apprenticeship, such as the 
requirement that programs undergo a compliance review ``no less 
frequently than every 5 years'' at 29 CFR 29.3(h) and the 5-year 
recordkeeping requirement in the EEO regulations at 29 CFR 30.18(b).
---------------------------------------------------------------------------

    \143\ Circumstances that may trigger more frequent reviews 
include, for example, a program's reported outcomes are consistently 
falling short of expectations or requirements, and whether serious, 
unaddressed complaints related to the program, recognized as 
legitimate by reviewers, consistently arise.
---------------------------------------------------------------------------

    Proposed paragraph (a) would further clarify that the Registration 
Agency will include a review of any participating employers in a 
sponsor's program during such program reviews, in line with the 
proposal's overall goal of establishing and maintaining accountability 
throughout the National Apprenticeship System. Throughout the proposal, 
the Department seeks to establish accountability measures to monitor, 
assess, and address participating employers' compliance with the 
proposed registered apprenticeship regulations, and has proposed 
changes to the existing registered apprenticeship regulations to 
require participating employers' compliance where appropriate. Proposed 
Sec.  29.19(a) would establish the necessary connection between 
participating employers and the Registration Agency's primary oversight 
mechanism--program reviews--to establish such accountability.
    Proposed Sec.  29.19(b) would require the Registration Agency to 
conduct a review of a program if it receives credible information that 
a program, participating employer, or other registered apprenticeship 
stakeholder is not operating in compliance with the program's accepted 
program standards or any other requirements set forth in this part or 
29 CFR part 30. Such credible information or allegations could be 
received through any means including, but not limited to, complaints, 
referrals, or news stories. Proposed Sec.  29.19(b) would also require 
a Registration Agency to conduct program reviews at the request of the 
Administrator. The Administrator may request that a Registration Agency 
conduct program reviews because the Administrator has received credible 
information that a program is not operating in conformance with its 
registered standards, part 29 or part 30, because the Administrator 
disagrees with a Registration Agency as to whether credible information 
of potential noncompliance exists, or for any other reason the 
Administrator determines a review is warranted.
    Proposed Sec.  29.19(c) would clarify that Registration Agencies 
may consider all information and data that are pertinent to the purpose 
of the review in reaching a determination at the conclusion of the 
review. Registration Agencies would need to consider the program's 
performance under Sec.  29.25(b). This provision would ensure that 
program performance is included as part of a program review and can 
ensure that technical assistance related to program performance is 
provided to sponsors.
    Proposed Sec.  29.19(d) would require sponsors and participating 
employers to cooperate with requests for interviews and documentation 
from the Registration Agency. This proposed paragraph would further 
clarify that sponsors and participating employers may never impede the 
Registration Agency's ability to interview prospective, current, or 
former apprentices because such interviews are essential to conducting 
a program review. Registration Agencies would be entitled to draw 
adverse inferences in the event that a sponsor or participating 
employer declines to answer questions, gives evasive answers, or fails 
to produce records that the sponsor or participating employer is 
required to maintain pursuant to proposed Sec.  29.18. This section is 
intended to make program reviews by Registration Agencies as efficient 
and effective as possible.
    Proposed Sec.  29.19(e) explains what would happen at the 
conclusion of a program review. At the conclusion of a program review, 
the Registration Agency would need to provide its Notice of Program 
Review Findings to the sponsor using the contact information listed in 
the registered standards. The Department is proposing to notify the 
sponsor using the most recent contact information provided in the 
standards because it assumes that the sponsor has provided the most up-
to-date, accurate contact information with its standards, because the 
Department should be able to rely on the sponsor's representation that 
it can

[[Page 3187]]

effectively receive communication via that contact information, and 
because the registered standards require a sponsor to designate a point 
of contact to receive complaints.
    Paragraphs (e)(1) though (4) would detail what must be contained in 
a Notice of Program Review Findings, including a summary of any 
noncompliance identified, a concise explanation as to how the 
noncompliance may be cured, an explanation that the sponsor has to 
develop a compliance action plan as described in paragraph (f), and a 
statement that an enforcement action may be taken if compliance is not 
achieved within an established timeframe. The Department thinks that 
the information required here is sufficient to make the sponsor aware 
of the Registration Agency's concerns and steps needed to address areas 
of noncompliance.
    Proposed Sec.  29.19(f) would describe the steps that the sponsor 
must take when it receives a notice pursuant to paragraph (e) as well 
as the further actions that the Registration Agency may take in 
response.
    Proposed Sec.  29.19(f)(1) would explain that where a Notice of 
Program Review Findings details one or more areas of noncompliance, the 
sponsor is afforded 45 calendar days from the date of notification to 
either rebut the findings or submit a compliance action plan. The 
Department notes that 29 CFR 30.15 affords sponsors 30 days to 
implement a compliance action plan. In proposed Sec.  29.19(f)(1), the 
time period would be extended from 30 to 45 days to ensure that the 
time period is not shorter than that referenced in Sec.  30.15. The 45-
calendar-day period may be extended once by the Registration Agency for 
up to 45 additional days for good cause. Good cause to extend the 
period may be present if, for example, the sponsor recently implemented 
staffing changes that would alter the personnel responsible for 
rebutting the findings or developing a compliance action plan. The 
determination as to whether the findings are appropriately rebutted 
would be entirely within the discretion of the Registration Agency.
    Proposed Sec.  29.19(f)(2) would detail the minimum requirements 
that must be included in a compliance action plan. A compliance action 
plan would need to make a specific commitment in writing to correct or 
remediate identified deficiency(ies) and area(s) of noncompliance, 
specify actions that will be taken to remedy each deficiency, specify a 
timeline, and provide the name of the individual responsible for 
correcting each deficiency. Proposed Sec.  29.19(f)(2) would also 
explain that if a sponsor submits a rebuttal to the Notice of Program 
Review Findings that in the discretion of the Registration Agency does 
not rebut the Findings, the sponsor is afforded 45 calendar days from 
receipt of the final notice to submit a compliance action plan for 
approval. The compliance action plan should include: (1) a written 
commitment to correct or remediate any deficiencies and areas of 
noncompliance that have been identified by a Registration Agency; (2) 
the precise actions a program sponsor will take for each deficiency 
identified; (3) the time period within which a program sponsor will 
remedy each deficiency that has been cited and any corresponding 
program changes implemented to correct each cited deficiency; and (4) 
the name of the individual or individuals responsible for correcting 
each deficiency.
    Proposed Sec.  29.19(g) explains the menu of options that would be 
available to Registration Agencies upon receiving and reviewing a 
compliance action plan. Proposed paragraph (g)(1) states that a 
Registration Agency could approve the compliance action plan, determine 
that the sponsor is in compliance, and terminate the program review 
process. This first option is more likely to be selected upon receipt 
of a particularly robust compliance action plan. A program sponsor 
charged with developing a compliance action plan would need to take 
steps to implement that plan in accordance with the requirements of the 
regulation, even in instances where the formal program process has been 
completed.
    Proposed paragraph (g)(2) states that a Registration Agency could 
approve the compliance action plan but continue the program review 
process until the compliance action plan is appropriately implemented. 
This second option may be more appropriate where the Registration 
Agency determines that continued monitoring may be necessary to ensure 
appropriate implementation of the compliance action plan. For example, 
a sponsor could submit, and the Registration Agency could approve, a 
compliance action plan that details the sponsor's plan to register its 
first apprentice. However, the Registration Agency may elect to wait 
until the sponsor in fact registers its first apprentice before making 
the determination that the compliance action plan is appropriately 
implemented and the sponsor is in compliance.
    Proposed paragraph (g)(3) states that a Registration Agency could 
reject the compliance action plan and proceed with deregistration 
according to proposed Sec.  29.20. A Registration Agency may elect to 
work with the sponsor to revise a compliance action plan that had been 
rejected instead of proceeding with deregistration.
Section 29.20--Deregistration of a Registered Program
    Proposed Sec.  29.20 would substantially revise the existing 
provisions regarding deregistration of a registered apprenticeship 
program found at 29 CFR 29.8 of the current regulation. Under the 
current 29 CFR 29.8, the Department is afforded no administrative 
tools, sanctions, or alternatives short of initiating formal 
deregistration proceedings in instances where a program is not being 
conducted, operated, or administered in accordance with the program's 
registered provisions or the requirements of 29 CFR part 29. This 
administrative inflexibility stands in sharp contrast to the more 
graduated EEO in apprenticeship enforcement provisions found at 29 CFR 
30.15, which permit the Department to work with a program sponsor to 
rectify areas of noncompliance with the EEO regulatory requirements of 
29 CFR part 30 through the pursuit of an intermediate administrative 
step: the development of a limited-time compliance action plan that 
identifies and rectifies a program's operational deficiencies. 
Accordingly, to better align and harmonize the enforcement structures 
in 29 CFR parts 29 and 30, the Department has proposed substantially 
replicating the compliance action plan procedural mechanism currently 
found at 29 CFR 30.15 and incorporating it into the proposed program 
review process outlined at Sec.  29.19(f) and (g) of this proposed 
regulation (see above). Should a sponsor fail to develop a compliance 
action plan that satisfies the Department's requirements, however, 
formal deregistration proceedings may then be initiated by the 
Department as a last resort under this proposed Sec.  29.20, which the 
Department has proposed be significantly updated to improve procedural 
clarity and efficiency. Proposed Sec.  29.20(a) would replace the 
undesignated introductory paragraph in existing Sec.  29.8 and 
eliminate ambiguous references to ``deregistration proceedings'' in 
favor of outlining the process step by step. The first step would be to 
notify a sponsor or a participating employer of the specific violations 
of parts 29 or 30 that were identified as a result of a program review, 
complaint investigation, or ``any other basis.'' The reference to ``any 
other basis'' is intended to capture the

[[Page 3188]]

multitude of less common methods by which a Registration Agency could 
learn of a violation of parts 29 or 30, such as through the news or by 
referral from another government agency. However, where a news story or 
referral from another government agency may benefit from additional 
investigation, the Registration Agency may elect to initiate a program 
review to gather additional facts. Proposed Sec.  29.20(a) proposes a 
new reference to ``participating employer'' to clarify that a 
participating employer can be offered technical assistance by a 
Registration Agency if suspected not to be operating in accordance with 
parts 29 or 30. Ultimately, however, because a participating employer 
is not a sponsor, it would be up to the sponsor to suspend the 
participating employer from the program. The addition of a reference to 
``participating employer'' is further intended to clarify that a 
sponsor may ultimately be deregistered when a participating employer 
that has adopted the sponsor's standards is not operating in accordance 
with those standards or parts 29 or 30. The notice provided under 
proposed Sec.  29.20(a) would in practice be very similar to the Notice 
of Program Review Findings under proposed Sec.  29.19(f)(1) in that 
both notices would identify an area of noncompliance on the part of the 
sponsor and the remedial action that would be taken by the Registration 
Agency as a result. However, a Notice of Program Review Findings would 
always afford a sponsor the opportunity to submit a compliance action 
plan whereas a notice under proposed Sec.  29.20(a) may reference a 
wider array of options, including notifying the sponsor that the 
program is deregistered.
    Proposed Sec.  29.20(a)(1) through (4) are new and detail a 
proposed menu of options available to a Registration Agency upon making 
a determination that a violation of this part occurred. A Registration 
Agency could proceed with any single option or multiple options 
concurrently if the Registration Agency thinks such action is necessary 
to address the noncompliance, these include
    (1) offering the sponsor or participating employer technical 
assistance to promote compliance;
    (2) requiring the sponsor to submit a compliance action plan 
pursuant to Sec.  29.19(f);
    (3) suspending the sponsor's right to register new apprentices for 
a specified time period; or
    (4) deregistering the program pursuant to paragraph Sec.  29.20(b) 
of this section.
    Proposed Sec.  29.20(a)(1) would be an option to provide technical 
assistance to the sponsor. This option may be selected where there is a 
clear misunderstanding of the regulatory requirements on the part of 
the sponsor and technical assistance may support a timely remedy to the 
violation.
    Proposed Sec.  29.20(a)(2) would be an option to require that the 
sponsor submit a compliance action plan that meets the requirements of 
proposed Sec.  29.19(f)(2). This option may be selected where the 
noncompliance was discovered outside of the program review process.
    Proposed Sec.  29.20(a)(3) would be an option to suspend the 
sponsor's right to register apprentices for a set period of time. This 
option may be appropriate where there is a concern about the safety of 
apprentices in the program.
    Finally, proposed Sec.  29.20(a)(4) would be an option to 
deregister the program for cause pursuant to proposed Sec.  29.20(b). 
Proceeding to deregistration may be appropriate if the sponsor was 
already afforded an opportunity to submit a compliance action plan and 
the plan was rejected, in the case of particularly egregious 
violations, or where the program has failed to respond to the 
Registration Agency.
    Proposed Sec.  29.20(b) would substantially streamline existing 
Sec.  29.8(b). It would remove references to persistent and significant 
failure to perform successfully and other enumerated bases for 
deregistration and would instead implement a standard for 
deregistration by which any program not operated in accordance with 
parts 29 or 30 could be deregistered if the sponsor fails to correct 
the violations or fails to receive approval of a compliance action plan 
and implement that compliance action plan within the required 
timeframes. The determination as to whether a compliance action plan is 
approvable and whether an approved compliance action plan is being 
appropriately implemented would be at the sole discretion of the 
Registration Agency. Proposed Sec.  29.20(b) would eliminate references 
to ``reasonable cause to deregister,'' which in existing Sec.  
29.8(b)(5) serves as the point at which an appeal of the Registration 
Agency's decision must be taken. By requiring a sponsor to appeal 
deregistration before a final agency determination as to deregistration 
has issued, current Sec.  29.8 requires appeals to be taken before they 
are ripe. Proposed Sec.  29.20(b) would correct this problem by making 
a Notice of Deregistration the point after which a sponsor may either 
request a review by the Administrator or, in certain cases, request a 
hearing before the Office of Administrative Law Judges (OALJ).
    Proposed Sec.  29.20(c) would carry forward much of existing Sec.  
29.8(a). References to cancellation are proposed to be struck to avoid 
confusion with the cancellation of apprenticeship agreements. The 
proposed paragraph would clarify that the Registration Agency will 
deregister a program upon receipt of a written request, in contrast 
with the existing text that says a Registration Agency may do so. This 
change would reflect the reality that OA will always deregister a 
program upon the request of the sponsor.
    Proposed Sec.  29.20(d) is new and would establish the process by 
which the Administrator will review the Registration Agency's Notice of 
Deregistration. In summary, this provision would establish a three-step 
process of review when a Notice of Deregistration is issued by an SAA: 
(1) Informal Resolution (by the Administrator); (2) Appeal (to OALJ); 
and Appeal (to ARB). The Department is proposing the addition of this 
review process for two reasons. First, the Department believes that 
where the deregistration decision was made by an SAA, the Administrator 
should review the SAA's deregistration decision so that any novel 
issues relating to this part, part 30, or the National Apprenticeship 
System are resolved by the Administrator in the first instance, as 
opposed to the OALJ. Accordingly, where the Notice of Deregistration 
was issued by an SAA, this review process would be a required step 
before requesting a hearing before the OALJ. Where the Notice of 
Deregistration was issued by the Administrator, this review process 
would not be necessary before a request for a hearing is requested. 
Second, the Department is proposing the process in Sec.  29.20(d) to 
minimize the Departmental resources that must be used to deregister 
programs that become unresponsive, even after multiple attempts by the 
Registration Agency to contact the sponsor, or where the sponsor fails 
to register at least one apprentice. Accordingly, where the Notice of 
Deregistration states the basis for deregistration as a failure to 
respond to multiple attempts from the Registration Agency to contact 
the sponsor or a failure to register at least one apprentice, or both, 
the outcome of this review process would serve as the final agency 
determination of the Department regarding deregistration. The 
Administrator shall publish a notice of final agency determination on 
an OA public-facing website in compliance with proactive disclosure 
requirements under the FOIA (5 U.S.C. 552 (a)(2)).

[[Page 3189]]

    Paragraph (d)(1) would explain how a former sponsor may request 
review from the Administrator. Requests would need to be submitted 
electronically and in writing within 30 calendar days from the date of 
the Notice of Deregistration. The request would not need to be made in 
any particular format, but the request itself would need to provide any 
and all relevant facts or documentation that exist as of the time of 
the request. It would be entirely the obligation of the former sponsor 
to provide any arguments, facts, and documents in an understandable 
manner as part of the request for review. The Administrator would take 
into consideration the totality of the request and supporting 
documentation presented and render the Administrator's final decision.
    Paragraph (d)(2) would address deregistrations where an SAA is the 
Registration Agency. In these situations, the request for review would 
need to be sent to the Registration Agency and the Administrator 
simultaneously such that the Administrator and the SAA are provided 
with identical copies of the request and all supporting documentation. 
The SAA would then have 15 calendar days to provide the Administrator 
with a record containing the pertinent facts underlying the SAA's 
deregistration determination. The Administrator could request 
additional information from the sponsor, the Registration Agency, or 
both, though the Administrator would not be required to do so.
    Paragraph (d)(3) would explain that if OA is the Registration 
Agency, OA will compile for the Administrator's review all relevant 
information already in OA's possession or already submitted by the 
former sponsor, and may request additional information from the former 
sponsor, though OA is not obligated to do so.
    Paragraph (d)(4) would explain that the Administrator will issue a 
final decision that explains the basis for the decision as quickly as 
practicable after receiving all information necessary for the 
Administrator to make a decision. While the Administrator would work as 
quickly as possible, the Department has not included a required 
timeframe because the facts and issues in specific cases may require 
more or less time to make a decision and, therefore, a uniform 
timeframe may inadvertently require the Administrator take less time 
than necessary to fully consider a request for reconsideration.
    Paragraphs (d)(5) and (6) would explain that except where the basis 
for deregistration is a failure to respond to multiple attempts from 
the Registration Agency to contact the sponsor or a failure to register 
at least one apprentice, or both, the former sponsor may still request 
a hearing before the OALJ within 15 calendar days of receipt of the 
Administrator's final decision. Where the former sponsor does not 
request a hearing within 15 calendar days, or where the basis for 
deregistration is a failure to respond or a failure to register at 
least one apprentice, the Administrator's final decision would be the 
Department's final agency action and the OALJ would not have 
jurisdiction to consider an appeal. The Department's intent in 
proposing to preclude the OALJ from hearing appeals based on a failure 
to respond or a failure to register at least one apprentice is to limit 
the expenditure of Departmental resources on disputes that are 
typically very straightforward and easily resolved by engagement with 
the Registration Agency. The Department's intent is to encourage 
sponsors of such programs to work with the Registration Agency before 
deregistration to address the lack of responsiveness or failure to 
register an apprentice through the provision of technical assistance or 
an action plan. If the cause of the deregistration stems from the 
program's lack of commitment to operating an apprenticeship training 
program, the Department thinks that it is better for the broader 
apprenticeship system to deregister such programs expeditiously. In 
addition, because these problems are readily resolved, sponsors may 
always seek reinstatement of their program under proposed Sec.  29.22 
once the issue that gave rise to the failure to respond or failure to 
register an apprentice is resolved.
    Proposed Sec.  29.20(e) would address the process for requesting a 
hearing before the OALJ and would streamline existing Sec.  29.8(b)(6) 
through (8). Proposed paragraph (e)(1) would explain that all requests 
for hearings must be sent to the OALJ. It would further note that where 
an SAA is the Registration Agency, the former sponsor has 15 calendar 
days from the date of the Administrator's final decision to request a 
hearing. Where an SAA deregistered the program, the Department is 
proposing to require the former sponsor to request review by the 
Administrator first to ensure that any novel or incorrect 
interpretations of parts 29 or 30 are not decided in the first instance 
by the OALJ. As OA is the Department's subject-matter expert on 
apprenticeship, the Department thinks it most appropriate that OA 
should always be afforded the opportunity to review a deregistration 
decision by an SAA before the OALJ or the Administrative Review Board 
(ARB) render the final agency decision for the Department. As noted 
above, this would allow OA to provide input on any novel issues 
relating to this part, part 30, or the National Apprenticeship System 
that are present in the matter.
    Proposed paragraph (e)(2) would explain that a request for a 
hearing must simultaneously be furnished to the Administrator (see 
https://www.dol.gov/agencies/eta/apprenticeship for contact 
information), and the Associate Solicitor for Employment and Training 
Legal Services (see https://www.dol.gov/agencies/sol/divisions/employment-training-legal-services for contact information). The 
paragraph would further explain that the Administrator will promptly 
compile and submit to the OALJ the administrative file containing the 
documentation relied on by the Administrator in reaching the 
Administrator's final decision or the Notice of Deregistration, as 
applicable.
    Proposed paragraph (e)(3) would explain that hearings would be 
conducted per proposed Sec.  29.21.
Section 29.21--Hearings on Deregistration
    Proposed Sec.  29.21 would carry forward much of current Sec.  
29.10. However, existing Sec.  29.10(a), which currently requires the 
Administrator to request a hearing from the OALJ, would be deleted 
entirely and replaced with the process described above. The Department 
determined that the current process outlined in Sec.  29.10(a) is 
inefficient and that the appealing party's notice is sufficient.
    Proposed Sec.  29.21(a)(1) and (2) would carry forward existing 
Sec.  29.10(b)(1) and (2) verbatim. In addition, the proposed rule 
would add paragraphs (a)(3), to clarify that the request for a hearing 
is not a complaint to which an answer is required, and (a)(4), to 
clarify that limited pre-hearing motions and discovery may be permitted 
at the discretion of the assigned Administrative Law Judge. The 
clarification in paragraph (a)(3) that no answer to a request for 
hearing would be required is intended to supplement the OALJ 
regulations at 29 CFR part 18 and capture the reality that an 
Administrative Law Judge assigned to a deregistration hearing will 
receive a comprehensive administrative file from the Administrator, 
which should render a separate answer unnecessary. The clarification in 
paragraph (a)(4) is intended to allow for limited discovery, though the 
Department anticipates that in most instances the case will be able to 
be decided on the record without further discovery.

[[Page 3190]]

    Proposed Sec.  29.21(b) would carry forward existing Sec.  29.10(c) 
with the only additions being added citations to the ARB's recently 
promulgated Rules of Practice and Procedure and the inclusion of a 
standard of review for the OALJ. The Department proposes to clarify 
that the arbitrary and capricious standard of review applies because it 
is regularly used in administrative adjudications reviewing final 
agency determinations. The arbitrary and capricious standard of review 
would require the Administrative Law Judge to uphold the 
Administrator's decision unless it is shown by the sponsor to be 
arbitrary, capricious, an abuse of discretion, or otherwise not in 
accordance with the law.
Section 29.22--Reinstatement of Program Registration
    Proposed Sec.  29.22 is new and would explain that an 
apprenticeship program that is deregistered may have its registration 
reinstated if the prospective sponsor submits adequate evidence that 
the program is operating in compliance with parts 29 and 30. Although a 
former sponsor would normally be able to reapply for registration, this 
section would establish a parallel process by which a former sponsor 
with an active but unregistered program could submit evidence in 
support of having its registration reinstated. The Department envisions 
that this process would address situations where a former sponsor's 
deregistered standards are in conformance with parts 29 and 30 but 
where the former sponsor was deregistered for not operating its program 
in conformance with the standards, with part 29, or with part 30. For 
example, a sponsor could be deregistered for failure to register a 
single apprentice, but post-deregistration provide the Registration 
Agency with evidence of registering at least one apprentice as well as 
an adequate explanation for not doing so previously; the determination 
as to what constitutes adequate evidence lies exclusively with the 
Registration Agency.
Section 29.23--Exemptions
    Proposed Sec.  29.23 would permit the Administrator to entertain 
requests for exemptions from any or all of the provisions contained in 
subpart A of 29 CFR part 29. Such requests would be required to be made 
in writing and transmitted to the Administrator and would also be 
required to contain a statement of the reasons supporting the request. 
The Administrator would only grant an exemption for good cause. Good 
cause may be found in instances where the sponsor demonstrates to the 
Administrator that the granting of the exemption will expand or support 
the safety and welfare of apprentices. The Department would not grant 
an exemption that would reduce or minimize the protections afforded 
apprentices under this proposed regulation. The Department is 
interested in any comments regarding criteria the Department could use 
to establish when good cause may be found.
    This proposed exemption provision would be similar to the existing 
exemption allowance contained in 29 CFR 30.19 of the EEO in 
Apprenticeship regulations, except that SAAs would be excluded from 
involvement in the consideration or issuance of exemptions under 
proposed Sec.  29.23, and the Administrator would retain the full and 
exclusive authority to evaluate and grant exemptions from the 
provisions of subpart A of 29 CFR part 29.
    The Department also wishes to note that the proposed exemption 
provision would not apply to any of the regulatory provisions contained 
in either subpart B or subpart C of the revised 29 CFR part 29. The 
Department is proposing this to ensure the exemptions are solely based 
on labor standards requirements. The Department would consider comments 
on exemptions for subpart B for potential sponsors of registered CTE 
apprenticeship. The Department is not proposing an exemption authority 
for subpart C because that subpart addresses the collection of 
apprenticeship data, which as described below is a key priority of this 
rulemaking to ensure a comprehensive data set on registered 
apprenticeship programs. Subpart C also governs the SAAs; the 
Department is not proposing any exemptions regarding their individual 
governance, in an effort to build a more cohesive system. While the 
Department may consider individual program level exemptions on labor 
standards, given the Department's goal of building a National 
Apprenticeship System, the elements of subpart C are not being proposed 
to be eligible for exemption.
C. Subpart B--Career and Technical Education Apprenticeship
    The Department has long heard from National Apprenticeship System 
stakeholders that creating additional apprenticeship opportunities 
would expand the benefits of apprenticeship and maximize its workforce 
development potential, particularly for individuals who are in the 
early stages of career development, such as students in high school and 
postsecondary students who are actively taking steps to begin their 
future careers and assessing the postsecondary opportunities available 
to them. It also would be a beneficial model for businesses looking to 
expand their talent pipelines, including businesses that participate in 
registered apprenticeship programs under subpart A. Registered 
apprenticeship has been a successful workforce development tool for job 
seekers for decades, and the Department recognizes that many of the 
occupational training and professional development elements of 
registered apprenticeship would be valuable for the subset of the 
population who are enrolled in high school and in community and 
technical colleges and are taking steps to improve their career 
opportunities. However, the existing National Apprenticeship System has 
had very limited participation from high-school-aged youth. In FY 2022, 
only 1.2 percent of active apprentices, or 7,643 apprentices, in 
registered apprenticeship programs were 16-18 years old.\144\ Most 
youth ages 16-18 are in high school, and these years are critical for 
helping students understand and make informed choices for their 
education and career paths, particularly for youth who do immediately 
enter postsecondary education.\145\
---------------------------------------------------------------------------

    \144\ OA, ``Data and Statistics,'' https://www.apprenticeship.gov/data-and-statistics (last updated June 16, 
2023).
    \145\ OA, ``Data and Statistics,'' https://www.apprenticeship.gov/data-and-statistics (last updated June 16, 
2023).
---------------------------------------------------------------------------

    More broadly, the Department is concerned about the persistent 
decline in youth labor force participation, as well as an unemployment 
rate more than twice as high as the national average, for those 
individuals aged 16 to 24 years old. The summer labor force 
participation rate for 16- to 24-year-olds was 60.2 percent in July 
2023, down from 61.8 percent in July 2019.\146\ Youth labor force 
participation has been trending downward since reaching a high of 77.5 
percent in July 1989 due to a number of factors, such as lack of 
training and work experience, transportation and access to work sites, 
and the lasting impact of labor market disruptions during and following 
economic downturns.\147\ While some individuals aged 16 to 24 years old 
may be attending some type of education or

[[Page 3191]]

training and forgoing employment, research indicates these factors may 
also underlie why the unemployment rate for this population, those who 
are actively looking for work but are unemployed, is more than twice as 
high as the national average. This population's unemployment rate (ages 
16-24) remains well above the national average based on the BLS 
``Employment and Unemployment Among Youth Summary,'' published in 
August 2023, which showed the July 2023 unemployment rate for youth was 
8.7 percent,\148\ compared to 3.5 percent overall at the same time. 
Ongoing declines in labor force participation and disparities in 
unemployment may create long-term challenges for those individuals in 
this population who seek job opportunities that provide economic 
mobility and may disrupt the development of a skilled workforce needed 
to address demographic shifts and sustain U.S. economic 
competitiveness. The Department recognizes the need to engage and 
support school-aged individuals and adult learners who are seeking to 
enter a career pathway and utilize an earn-and-learn model such as 
registered apprenticeship, which will help to increase labor force 
participation and close the gap in unemployment rates relative to the 
rest of the working population.
---------------------------------------------------------------------------

    \146\ BLS, The Economics Daily, Aug. 29, 2023, https://www.bls.gov/opub/ted/2023/60-2-percent-of-youth-participated-in-the-labor-force-in-july-2023.htm (last visited Oct. 5, 2023).
    \147\ Note: After peaking at 77.5 percent in July 1989, the rate 
trended downward then ranged between 60.0 to 60.6 percent during 
2012 to 2018. Congressional Research Service, ``Youth and The Labor 
Force: Background and Trends,'' Aug. 20, 2018, https://crsreports.congress.gov/product/pdf/R/R42519.
    \148\ BLS, Economic News Release, ``Employment and Unemployment 
Among Youth Summary,'' Aug. 16, 2023, https://www.bls.gov/news.release/youth.nr0.htm.
---------------------------------------------------------------------------

    Nationally, Perkins CTE programs enroll roughly 8.3 million 
secondary students and 3.5 million postsecondary students,\149\ and 
they are open for enrollment by students looking to attain industry-
recognized competencies and skills, a recognized postsecondary 
credential, and work-based learning experiences. Additionally, the 
inclusion of CTE programs within the current registered apprenticeship 
model has provided a promising opportunity to bridge education and 
workforce development. After working and consulting with registered 
apprenticeship stakeholders, workforce development analysts and 
experts, and Federal partners at ED, the Department is proposing a new 
and emergent type of registered apprenticeship--registered CTE 
apprenticeship--modeled on the most relevant elements of traditional 
registered apprenticeship but with key distinguishing features to 
accommodate students in high school and postsecondary education.
---------------------------------------------------------------------------

    \149\ ED, Perkins Collaborative Resource Network, ``National 
Summary,'' https://cte.ed.gov/profiles/national-summary (last 
visited Sept. 8, 2023).
---------------------------------------------------------------------------

    This proposed registered CTE apprenticeship model seeks to 
strengthen the connection with secondary and postsecondary education 
programs by bringing together the core concepts of registered 
apprenticeship and CTE, and working to ensure that strong State-level 
coordination exists to manage the program. To this end, the Department 
has proposed the registered CTE apprenticeship program be delivered 
through a Perkins-eligible recipient's CTE program because Perkins 
already provides a high-quality framework for apprenticeship-related 
instruction and can capture economies of scale in matching students 
interested and involved in CTE with registered apprenticeship. Perkins-
eligible recipients may choose to become CTE apprenticeship sponsors to 
expand and enhance their Perkins CTE program with high-quality on-the-
job experience for their students, culminating in a credential that 
would enhance CTE students' prospects to transition to employment, 
registered apprenticeship under subpart A, or postsecondary education. 
The proposed regulation and registered CTE apprenticeship program would 
not impact the independence and function of ED's Perkins program or 
that of Perkins grantees and subgrantees. That is, the proposed subpart 
would only apply to States that develop a written agreement between 
their State CTE Agency and a Registration Agency, States that wish to 
become Registration Agencies, and States and CTE programs that wish to 
become registered CTE apprenticeship sponsors as recognized by DOL. 
Further, ED's implementation and oversight of the Perkins CTE program 
would be unaffected. In addition, though the regulations propose that 
the State CTE Agency (i.e., the agency with authority to oversee 
Perkins) is a required partner, the regulations would not alter the 
existing authorities of the State CTE Agency for implementation and 
oversight of Perkins.
    The proposed requirements for registered CTE apprenticeship's labor 
standards, program registration, and program administration would 
largely reflect the labor standards, program registration, and program 
administration requirements for registered apprenticeship, with some 
distinctions and differences as explained in this NPRM's preamble for 
subpart B. Many of the proposed requirements are already common 
practice in high-quality CTE programs and related work-based learning 
programs. The primary distinctions between these two types of 
registered apprenticeship programs, under subparts A and B, would be: 
(1) the required use of industry skills frameworks to support CTE 
apprenticeship-related instruction and provide direction for on-the-job 
training; (2) different hours thresholds for related instruction and 
on-the-job training; (3) different eligibility requirements for who may 
serve as program sponsors; and (4) student outcomes focused on post-
completion career pathways. The Department proposes to center 
registered CTE apprenticeship programs around industry skills 
frameworks (rather than the occupational basis of most registered 
apprenticeship programs). Industry skills frameworks more broadly 
encompass the range of career options available to high school and 
college students by integrating industry-recognized competencies and 
skills. Registered CTE apprenticeship programs would be guided by an 
approved industry skills framework and delivered through a Perkins-
eligible recipient's CTE program and paid on-the-job training.\150\
---------------------------------------------------------------------------

    \150\ The Perkins statute safeguards local control over 
instructional content, academic standards and assessments, 
curricula, and programs of instruction. 20 U.S.C. 2306a(a). 
Accordingly, the regulations proposed would only impact and control 
DOL CTE apprenticeship programs and would not create any rules 
governing the operation of Perkins programs. Nothing in this 
proposed regulation would mandate, direct, or control a State's, 
local educational agency's, eligible Perkins recipient's, or 
school's specific instructional content, academic standards and 
assessments, curricula, or program of study.
---------------------------------------------------------------------------

    In addition, the registered CTE apprenticeship model would place a 
greater emphasis on the related instruction element of registered 
apprenticeship, and proposes to involve a higher amount of required 
time spent in related instruction (CTE apprenticeship-related 
instruction) with postsecondary credit hours and a lesser amount of on-
the-job training, compared to the proposed program in subpart A. For 
registered CTE apprenticeship, the Department proposes a minimum of 540 
hours of required CTE apprenticeship-related instruction, which 
encompasses not less than 12 postsecondary credit hours as part of the 
program. The proposed 540 hours of CTE apprenticeship-related 
instruction and 900 hours of on-the-job training could occur while a 
student is enrolled in high school, or while a student is enrolled in 
postsecondary education, or the program could be structured to span 
high school and postsecondary education.
    For secondary school systems, the registered CTE apprenticeship 
model may expand opportunities for students

[[Page 3192]]

to pursue postsecondary coursework, create opportunities to earn 
recognized postsecondary credentials that students earn in CTE 
programs, including a nationally recognized certificate of completion 
of registered CTE apprenticeship, and expand work-based learning to 
include paid on-the-job training with designed wage increases, and 
support the alignment of CTE programs to registered apprenticeship 
programs under subpart A, in addition to postsecondary credential and 
degree programs.
    For postsecondary institutions the registered CTE apprenticeship 
model may create opportunities to develop additional employer-driven 
educational programs, particularly in programs where clinical 
experiences and similar models may not exist, and where students would 
benefit from paid on-the-job training offered alongside or included as 
part of a postsecondary credential and/or degree program. Registered 
CTE apprenticeship may also help postsecondary institutions to create 
education programs that bridge their workforce and degree programs 
within their institution, potentially creating opportunities for 
students to access federal student aid to support their participation 
in the program, in addition to creating opportunities to embed an 
apprenticeship program within a degree program, and expand programs 
that are offered as an ETP under WIOA.
    For regions that are seeking to create or have already established 
strong linkages between their secondary education system and community 
and technical college system, registered CTE apprenticeship can be 
structured to bridge these two education systems, ensuring that 
students graduate high school, transition into postsecondary education 
with at least 12 postsecondary credit hours, earn a recognized 
postsecondary credential, and have strong pathways to continue their 
education while simultaneously participating in the workforce and 
receiving progressive wage increases. Registered CTE apprenticeship may 
also help these communities to better position employers as co-owners 
of their education and workforce systems, support paid on-the-job 
learning and other forms of Federal and State financial aid that may be 
available, to help to offset their education costs, provide additional 
student mentorship, and leverage additional support from community-
based organizations to provide wraparound or other student services.
    In contrast, for registered apprenticeship under subpart A, the 
Department is proposing 144 hours of related instruction for every 
2,000 hours of on-the-job training. The higher amount of CTE 
apprenticeship-related instruction is proposed to ensure that CTE 
apprentices have the requisite number of hours to successfully complete 
a program and academic requirements for graduation. The lower amount of 
on-the-job training hours is proposed to ensure that CTE apprentices 
receive the technical, hands-on opportunities to demonstrate their 
progress and attainment of industry-recognized competencies and skills 
while also ensuring that CTE apprentices work an age-appropriate number 
of hours while attending school. Specifically, researchers have 
consistently found that there are negative academic outcomes for 
students who work intensively (e.g., more than 20 hours) during high 
school. For example, one study that examined the impact of employment 
on academic performance and behavioral outcomes (e.g., effort, truancy, 
misbehavior, and suspensions) of students in 8th, 10th, and 12th grade 
found that intensive work in high school, defined as working more than 
20 hours per week, was associated with lower grade point averages, 
lower school effort, and greater frequencies of misbehavior. Those who 
worked more limited hours (20 hours or less per week) increased their 
odds of obtaining a bachelor's degree and exhibited no differences in 
high school academic or behavioral outcomes than those who did not work 
at all.\151\
---------------------------------------------------------------------------

    \151\ Jeremy Staff et al., ``Adolescent work intensity, school 
performance, and academic engagement,'' Sociology of Education, 
83(3), 183-200 (July 2010), https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2926992/.
---------------------------------------------------------------------------

    Standards of registered CTE apprenticeship would be based on 
approved industry skills frameworks and delivered through CTE programs 
and paid on-the-job training that must be completed by a CTE apprentice 
to receive a certificate of completion of registered CTE 
apprenticeship. Completing a registered CTE apprenticeship program 
would provide a CTE apprentice with industrywide skills and 
competencies, a recognized postsecondary credential(s) and at least 12 
transferable postsecondary credit hours, which would enable CTE 
apprentices to enroll in a postsecondary educational program, enroll in 
a registered apprenticeship under subpart A, potentially with advanced 
standing, or continue employment.
    While the new model of registered CTE apprenticeship is designed to 
align with Perkins CTE programs, CTE apprenticeship programs under this 
proposal also would have the option to design programs that meet the 
registration requirements of subpart A, particularly in CTE program 
areas that are more occupationally based. In doing so, secondary and 
postsecondary institutions may choose to build onto their existing 
registered apprenticeship programs to create additional opportunities 
for learners or they may wish to connect registered apprenticeship 
programs that are developed under subparts A and B to create stackable 
instructional models. For secondary and postsecondary institutions that 
already support registered apprenticeship programs under subpart A, the 
development of registered CTE apprenticeship programs may help to 
create new pathways into registered apprenticeship, may support 
diversity, equity, inclusion, and accessibility efforts, and may create 
opportunities to engage existing or new employers to expand their 
partnership in new or different occupations and industries.
    Registered CTE apprenticeship would be an additional model designed 
to specifically align labor standards with State-approved CTE programs 
and, where appropriate, State or locally developed educational 
curriculum, where it may not always be feasible under subpart A and, in 
doing so, would provide multiple postsecondary pathways for CTE 
students and employment, and may include opportunities for CTE students 
to earn advanced standing in registered apprenticeship under subpart A. 
Registered CTE apprenticeship would retain most of the key elements of 
the registered apprenticeship model as set forth in proposed subpart A, 
with some differences or adjustments based on the unique 
characteristics of the population registered CTE apprenticeship will 
serve--namely, high school and college students--including, among other 
considerations, their age and typical experience, their courseload, 
schedule, and stage of career development or transition into a new 
career. As proposed, the Department envisions some key adjustments to 
the registered apprenticeship model for registered CTE apprenticeship. 
The Department considered using exemptions proposed under subpart A to 
accommodate this program design, but determined that the requirement 
for Registration Agency coordination with State CTE Agencies is an 
essential element of this proposal and could not be implemented through 
use of exemptions under subpart A. In addition, programs are not exempt 
from the establishment and implementation

[[Page 3193]]

of robust standards of registered CTE apprenticeship. Such standards 
are essential to ensuring that registered CTE apprenticeship programs 
deliver consistently high-quality education and training, while also 
ensuring that CTE apprentices are trained in a safe and accessible 
workplace environment where they are protected from exploitation and 
abuse.
    The Department coordinated and sought consultation with ED in 
developing the proposed regulations for registered CTE apprenticeship. 
In addition, this new model is informed by existing and ongoing efforts 
to develop youth and registered apprenticeship models that incorporate 
CTE.\152\ In coordination with ED, the Department will seek to provide 
technical assistance to States and local stakeholders as needed to 
implement this new model.
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    \152\ Joseph B. Fuller et al., The Project on Workforce, Harvard 
University, ``The Options Multiplier: Decoding the CareerWise Youth 
Apprenticeship Journey,'' Nov. 14, 2022, https://www.hbs.edu/faculty/Pages/item.aspx?num=63353.
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    The Department has also taken into consideration the 
recommendations from the ACA to expand apprenticeship opportunities 
that offer postsecondary credit and the ability to advance along a 
career pathway for in-school youth and other individuals.\153\ The 
registered apprenticeship model has been highly successful, as 
described throughout this rulemaking, in successfully training 
individuals outside of the current secondary and postsecondary 
education systems. However, it has not been able to systematically 
align with CTE programs and employment opportunities for those students 
who may have difficulty meeting the minimum eligibility requirements 
for entering into a registered apprenticeship program under subpart A.
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    \153\ See ACA, ``Interim Report to the Secretary of Labor,'' May 
16, 2022, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf. ACA recommendations on this topic 
include to coordinate with ED and education institutions to promote 
the provision of academic credit for apprenticeship training or 
tuition reimbursement and to enhance high school-level 
apprenticeships with credit given for direct entry into formal 
registered apprenticeship programs.
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    The Department recognizes that previous efforts to create and 
strengthen articulation between secondary and postsecondary 
institutions have had positive effects for the populations targeted by 
this proposal. From fall 2019 to fall 2021, 586,000 fewer recent high 
school graduates were enrolled in community college compared with 
277,000 fewer older adults, a troubling trend as students of all ages 
enter or re-enter the labor market without the necessary education and 
training for economic success. However, during this same time, dual 
enrollment, a hallmark of successful CTE programs and youth 
apprenticeship models that incorporate CTE, continued to grow with high 
school students accounting for one in five community college 
students.\154\ The impact of obtaining postsecondary education is 
profound: for all demographic groups by gender and race, the labor 
force participation rate increases by 4.4 percent and the unemployment 
rate decreases by 0.5 percent for high school graduates with some 
college compared to those who graduated high school but have no 
college.\155\ In addition, data from the High School Longitudinal Study 
of 2009 indicate that, 3 years after completing high school, public 
high school graduates who were not enrolled in a postsecondary 
credential program and who had earned 3.00 or more CTE credits during 
high school had a lower unemployment rate than their peers who earned 
fewer CTE credits.\156\ Additionally, at the secondary level students 
who concentrate \157\ in a CTE program have a 96.2 percent 4-year 
graduation rate in the aggregate and greater than 90 percent for all 
students subgroups disaggregated by gender, race, ethnicity, and 
special populations with the exception of youth in foster care (86.7 
percent) and youth who are single parents (89.3 percent),\158\ which 
are closer to the national average of 87 percent.\159\ By incorporating 
the benefits of strong academic and technical preparation and 
established articulation between secondary and postsecondary credits, 
which is found in high-quality CTE programs, along with establishing 
quality labor standards for the paid work-based learning component for 
students in the registered CTE apprenticeship program, the Department 
anticipates this model will be successful in establishing a strong 
skills-based foundation with quality work experience to jumpstart CTE 
apprentices' careers, while also ensuring that students continue to 
meet core educational milestones.
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    \154\ John Fink, ``What Happened to Community College Enrollment 
During the First Years of the Pandemic? It Depends on the Students' 
Age,'' Jan. 9, 2023, https://ccrc.tc.columbia.edu/easyblog/what-happened-to-community-college-enrollment-depends-students-age.html.
    \155\ BLS, Labor Force Statistics from the Current Population 
Survey, ``Employment status of the civilian noninstitutional 
population 25 years and over by educational attainment, sex, race, 
and Hispanic or Latino ethnicity,'' https://www.bls.gov/cps/cpsaat07.htm (last updated Jan. 25, 2023).
    \156\ National Center for Education Statistics, ``Data Point: 
Labor Market Outcomes for High School Career and Technical Education 
Participants: 2016,'' Apr. 2020, https://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2020060.
    \157\ In Perkins, the term ``CTE concentrator'' means: (1) at 
the secondary school level, a student served by an eligible 
recipient who has completed at least two courses in a single career 
and technical education program or program of study; and (2) at the 
postsecondary level, a student enrolled in an eligible recipient who 
has either earned at least 12 credits within a career and technical 
education program or program of study or completed such a program if 
the program encompasses fewer than 12 credits or the equivalent in 
total (Perkins sec. 3(12)). This means that once a student completes 
two courses in a single CTE program of study, they are counted as a 
CTE concentrator.
    \158\ ED, Perkins Collaborative Resource Network, ``National 
Summary,'' https://cte.ed.gov/pcrn/profile/national/performance/2021/population/1s1/met/secondary/race (last visited Oct. 23, 2023).
    \159\ National Center for Education Statistics, ``Fast Facts, 
High School Graduation Rates,'' https://nces.ed.gov/fastfacts/display.asp?id=805 (last visited Oct. 23, 2023).
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    The Department believes a unique model of quality labor standards, 
based on the success of registered apprenticeship, that is designed for 
individuals in secondary or postsecondary education can help students 
have successful careers and can benefit employers in developing a 
skilled workforce. This model, in conjunction with an existing 
infrastructure that supports the capacity and expertise to administer 
and provide quality CTE curricula and program offerings, could help to 
close a widening divide and ensure all learners and workers who face 
labor market disparities have greater opportunities for economic 
mobility. These quality labor standards while participating in 
education activities can be especially beneficial for youth and other 
individuals starting their careers by ensuring they are receiving and 
applying industry-validated skills and competencies in a paid work 
setting.
Section 29.24--Registration of Career and Technical Education 
Apprenticeship Programs
    Proposed Sec.  29.24 would create the regulatory structure for 
registered CTE apprenticeship programs to meet the following core 
requirements: coordination between a Registration Agency and State CTE 
Agency; program standards and the requirement that they be registered 
with a Registration Agency; alignment of competencies obtained through 
on-the-job training outlined in approved industry skills frameworks 
that provide CTE apprentices with industry-recognized skills and 
competencies; CTE apprenticeship-related instruction component of the 
standards delivered through a CTE program; program sponsor eligibility 
and requirements for LEA, institutions of higher education, State CTE 
Agencies, or designated intermediaries; partnership

[[Page 3194]]

requirements and coordination with employers and intermediaries; and 
CTE apprenticeship agreements. This is a new and emerging model that is 
intended to integrate labor standards and industrywide skills and 
competencies into CTE programs and would support the development of a 
talent pipeline to meet current and future employer workforce needs. 
The Department is interested in comments regarding these proposed core 
requirements, which are described herein, including any recommendations 
regarding different or additional requirements and any information that 
can substantiate those recommendations.
29.24(a) Required coordination
    Proposed Sec.  29.24(a)(1) would establish the requirement for a 
Registration Agency, whether it is OA or the SAA, and the State CTE 
Agency to coordinate on the administration of Registered CTE 
apprenticeship programs in each State. The purpose of this requirement 
is to facilitate a flexible framework between the Registration Agency, 
which would have the responsibility for approving standards of 
registered CTE apprenticeship, and the State CTE Agency, which has the 
existing responsibility to oversee Perkins CTE programs within 
respective States and approved CTE programs. Areas of coordination 
include the process of program approvals, program reviews, data 
collection, and compliance activities established within this part. The 
purpose of coordinating administrative responsibilities is to ensure 
that both parties work cooperatively to support registered CTE 
apprenticeship program sponsors, such as LEAs, institutions of higher 
education, and their designated intermediaries, in the coordination of 
registered CTE apprenticeship programs while ensuring that such 
programs meet the requirements of this part. Most importantly, 
coordination is necessary to ensure the welfare of CTE apprentices, 
many of whom are likely to be high school and community college 
students who will be transitioning into a postsecondary educational 
program, a registered apprenticeship program under subpart A, or other 
employment following the completion of the registered CTE 
apprenticeship. Coordination to engage industry and business is 
integral to the success of all registered apprenticeship programs, 
especially a new model that would provide career readiness and 
exploration through paid on-the-job training for students in State-
approved CTE programs. A State CTE Agency and Registration Agency are 
encouraged to coordinate industry engagement, provide services to 
business and employers, promote CTE apprenticeships, and provide 
technical assistance on developing program standards.
    While high school youth can currently participate in registered 
apprenticeship programs under subpart A, this new model would provide 
an opportunity for secondary and postsecondary schools to engage with 
the National Apprenticeship System and work with education 
administrators, instructors, and practitioners to utilize and leverage 
their institutional expertise in developing and structuring CTE related 
instruction and paid on-the-job training. The Department understands 
that the State CTE Agency would have the statutory responsibility for a 
number of requirements under this part. If the proposed rule is adopted 
as drafted, it would be incumbent on States to develop the proper 
coordination to ensure that the welfare of CTE apprentices and 
administrative oversight by each party meet all existing Federal and 
State statutory and regulatory requirements. The Department notes that 
nothing in this proposed rule is intended to alter the existing 
authorities of the State CTE Agency for oversight of Perkins and the 
Registration Agency for oversight of any registered apprenticeship 
program. The Department is interested in comments on how Registration 
Agencies and State CTE Agencies should develop the necessary 
coordination, what elements should be included in the coordination 
process, and what challenges and barriers may exist that would require 
technical assistance or additional subregulatory guidance.
    Proposed Sec.  29.24(a)(2) would establish the requirement for the 
State CTE Agency and Registration Agency to enter into a written 
agreement for the statewide coordination and operation of registered 
CTE apprenticeship programs. The written agreement should describe the 
roles and responsibilities of each agency that has programmatic and 
administrative responsibilities throughout this part. The Department 
recognizes that States can develop various agreements, such as 
memoranda of understanding, interagency agreements, and other types of 
written agreements, that establish roles and responsibilities for the 
purposes of aligning State resources, administrative infrastructure, 
and program accountability. States should have maximum flexibility in 
developing such written agreements, but the requirement to have a 
written agreement is designed to ensure that a formal understanding 
about roles and responsibilities has been agreed upon. The Department 
is interested in comments about whether there should be additional 
guidance on what should be included in a written agreement. The 
Department is also interested in comments about existing coordination 
mechanisms for the establishment of written coordination agreements 
between a Registration Agency and State CTE Agency that might be 
incorporated into SAA State Apprenticeship Plan efforts described below 
and in subpart C to facilitate program oversight and fulfill 
administrative requirements, such as program review processes and data 
sharing agreements.
Sec.  29.24(b) Approval of Industry Skills Framework
    Proposed Sec.  29.24(b) would establish industry skills frameworks 
as a distinct requirement and component of registered CTE 
apprenticeship that would be required to be included in registered CTE 
apprenticeship program standards. An industry skills framework 
describes industrywide competencies and skills that are foundational to 
any number of career pathways within an industry or industry sector for 
which the framework has been developed. Industry skills frameworks 
would provide the basis for assessing competency and skill attainment 
of CTE apprentices in the on-the-job training component of a registered 
CTE apprenticeship. They also would be the framework whereby high-
quality labor standards can be applied and integrated into the 
registered CTE apprenticeship model. In conjunction with CTE 
apprenticeship-related instruction, industry skills frameworks would 
enable the programmatic outcomes of placement into employment, a 
postsecondary educational program, or a registered apprenticeship 
program under subpart A.
    Industry skills frameworks are similar in concept to the National 
Occupational Standards for Apprenticeship detailed in proposed Sec.  
29.13 but are different in that they focus on industrywide 
competencies, whereas National Occupational Standards focus on 
occupational proficiency. Industry skills frameworks are foundational 
industrywide skills and competencies that enable access to a career 
pathway and are the essential ``building blocks'' for greater 
occupational proficiency. Similar to National Occupational Standards 
for Apprenticeship, the Administrator would oversee the development of 
and updates to industry

[[Page 3195]]

skills frameworks. As part of the proposed approval process, the 
Administrator would ensure that such frameworks are industry validated, 
rigorously developed, and portable. Industry skills frameworks should 
be designed to incorporate foundational skills and competencies, such 
as employability skills or workplace competencies, that are accepted 
industrywide and, in combination with technical skills, are applicable 
to real-world workplace tasks and activities. Industry skills 
frameworks comprehend skills and competencies that are portable across 
a number of occupations within the industry. As such, registered CTE 
apprenticeship programs would provide an opportunity for CTE 
apprentices to discover occupations that would be included within any 
one industry skills framework.
    Industry skills frameworks can be the foundational component for 
developing both standards of registered CTE apprenticeship and a work 
process schedule for greater occupational proficiency if a potential 
program sponsor endeavors to operate both models of registered 
apprenticeship under subparts A and B. Industry skills frameworks are 
not, however, a replacement for a work process schedule in the 
determination of an occupation suitable for registered apprenticeship 
under proposed Sec.  29.7 in subpart A or a framework that is a 
substitute for National Occupational Standards for Apprenticeship under 
proposed Sec.  29.13 in subpart A. The Department notes that creating a 
broad industry skills and competency foundation as a starting point in 
program development for registered CTE apprenticeship programs as 
opposed one that ultimately requires to proficiency in a specific 
occupation is one of the key departures from the registered 
apprenticeship model under subpart A. However, the Department envisions 
the industry skills framework can be complementary in helping students 
get skills and competencies that can be built into registered 
apprenticeship programs under subpart A. These proposed industry skills 
frameworks establish the floor for student skill development, allowing 
programs to build on top of this foundation to create programmatic 
opportunities for greater specificity as to the skills and competencies 
that would lead toward occupational proficiency, including 
opportunities for alignment to registered apprenticeship programs under 
subpart A where appropriate. Proposed Sec.  29.24(b)(1) describes the 
criteria that must be met before the Administrator will approve an 
industry skills framework for use in a registered CTE apprenticeship 
program.
    Proposed Sec.  29.24(b)(1)(i) would establish the requirement for 
an industry skills framework to include a structure for the development 
of professional behaviors, workplace competencies, and academic 
competencies required by an industry. Examples of professional 
behaviors include but are not limited to reliability, initiative, 
interpersonal skills, and adaptability; academic competencies might 
include the ability to effectively read and write, problem-solve, and 
think critically; and workplace competencies might include 
collaboration and teamwork, oral and written communication, and 
customer service.
    Proposed Sec.  29.24(b)(1)(ii) would establish the requirement that 
industry skills frameworks are validated, widely recognized, and 
nationally applicable in the industry to which the framework is 
intended to apply. Industry skills frameworks recognize that many 
skills and competencies are cross-cutting, across industries and 
sectors, and provide a strong foundation for greater technical 
proficiency applied toward learning an occupation or across an 
occupational cluster. To the extent that industry skills frameworks 
align with CTE Career Clusters and the process by which State and local 
advisory councils address workforce needs by providing recommendations 
on CTE programmatic alignment, the Department is interested in comments 
that explore this interconnection and alignment to create greater 
feedback on the development of industry skills frameworks and their 
required use in standards of registered CTE apprenticeship.\160\ The 
Department envisions leveraging the proposed process for establishing 
National Occupational Standards for Apprenticeship (see Sec.  29.13 in 
subpart A of this proposal) to develop industry skills frameworks. The 
Department anticipates that the initial process for developing industry 
skills frameworks would engage a broad set of industry stakeholders.
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    \160\ The National Career Clusters[supreg] Framework serves as 
an organizing tool for CTE programs, curriculum design and 
instruction. There are 16 Career Clusters in the National Career 
Clusters Framework, representing 79 career pathways to help learners 
navigate their way to greater success in college and career. The 
framework also functions as a useful guide in developing programs of 
study bridging secondary and postsecondary systems and for creating 
individual student plans of study for a complete range of career 
options. As such, it helps learners discover their interests and 
their passions, and empowers them to choose the educational pathway 
that can lead to success in high school, college, and career. More 
information, including crosswalks with DOL's O*Net occupational 
codes can be found here: https://careertech.org/career-clusters.
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    Proposed Sec.  29.24(b)(1)(iii) would require that the skills and 
competencies specified within the on-the-job training outline be 
obtained by a CTE apprentice through the attainment of at least 900 
hours of on-the-job training over the course of the program, as 
explained below. The 900 hours may be spread across multiple years; 
however, the Department does consider a minimum requirement of on-the-
job training hours to be an important requirement of the registered CTE 
apprenticeship model to ensure CTE apprentices are obtaining employment 
in the program, at a sufficient length, in order to obtain industrywide 
or industry-sector technical competencies.\161\
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    \161\ See DOL, ``Building Blocks Model,'' https://www.careeronestop.org/CompetencyModel/competency-models/building-blocks-model.aspx (last visited July 20, 2023).
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    Proposed Sec.  29.24(b)(1)(iv) would establish the requirement that 
an industry skills framework align with an approved CTE program so that 
the employment component of the registered CTE apprenticeship is 
providing the appropriate practical on-the-job training supported by 
the CTE apprenticeship-related instruction. In this connection to the 
National Apprenticeship System, registered CTE apprenticeship programs 
with approved industry skills frameworks will align with the National 
Career Clusters[supreg] Framework Perkins Career Clusters published by 
Advance CTE and associated CTE programs. The Department is interested 
in comments that address potential alignment and implementation to 
create systematic cohesion and seamless transitions for CTE apprentices 
to successfully participate, progress through, and complete a 
registered CTE apprenticeship.
    Proposed Sec.  29.24(b)(1)(v) would establish the requirement that 
industry skills frameworks detail the industry-validated methods for 
ongoing evaluations to assess an apprentice's attainment of a 
competency to make sure that CTE apprentices are regularly evaluated as 
they progress through the registered CTE apprenticeship. As explained 
in the preamble for subpart A's proposed Sec.  29.16, the Department 
views regular evaluations of apprentices in registered apprenticeship 
programs as a central element of program design that verifies whether 
or not programs are meeting apprenticeship's foundational goal of 
preparing apprentices for their future careers. The Department notes

[[Page 3196]]

that student skill demonstrations and evaluation currently exist in 
high-quality CTE programs. Programs must perform assessments or 
evaluations to verify that apprentices have learned and retained the 
job skills, knowledge of theoretical concepts that underpin successful 
performance of such skills, and professional behaviors that will make 
them successful in their careers.
    At proposed Sec.  29.24(b)(1)(v), the Department proposes to 
include regular evaluations as a required element of registered CTE 
apprenticeship, and as with the proposed assessment framework for 
registered apprenticeship in subpart A, would leave all aspects of the 
design of such assessments up to registered CTE apprenticeship program 
sponsors. The Department expects that industry stakeholders, 
educational and workforce development experts, and other leaders will 
be instrumental in developing frameworks for the evaluation of CTE 
apprentices in registered CTE apprenticeship programs, and that 
individual programs would tailor such frameworks to the specific 
elements and needs of their program, course of study, and CTE 
apprentice population.
    For registered CTE apprenticeship, such evaluations will be 
important, but should take a different form than the more robust 
evaluation and end-point assessment framework proposed in this 
rulemaking for registered apprenticeship programs (at proposed Sec.  
29.16). In the Department's view, registered CTE apprenticeship 
programs would not need to confer occupational proficiency for all 
participants. Registered CTE apprenticeship programs may serve more 
secondary and postsecondary student apprentices than registered 
apprenticeship programs under subpart A and would benefit such 
apprentices by introducing them to career options and ideas, developing 
professional behaviors, and conferring occupational competencies that 
will aid them in their efforts to find and retain meaningful careers 
and pursue higher levels of education. The Department does not view the 
attainment of occupational proficiency as an appropriate baseline 
requirement for registered CTE apprenticeship programs, because the 
unique design of this model focuses more on foundational industry 
skills than on occupational proficiency, which the Department has 
determined requires more on-the-job training hours to achieve, as 
described in subpart A. However, the Department notes that some 
registered CTE apprenticeship programs and registered apprenticeship 
programs under subpart A should align to support student learning 
progression through both programs, and in doing so will blend industry 
skills frameworks with established occupational work process schedules 
or National Occupational Standards for Apprenticeship under subpart A 
to support student mastery of both models.
    The Department invites public comments on the proposed requirement 
to regularly assess CTE apprentices' progress at proposed Sec.  
29.24(b)(1)(v), including the differences between the minimum 
requirements for evaluating apprentices across registered 
apprenticeship and registered CTE apprenticeship. The Department notes 
that there are already existing assessments being utilized by many high 
quality CTE programs; however, the Department is seeking comments as to 
whether an industry-recognized end-point assessment for registered CTE 
apprenticeship would strengthen the relevance of the skills and 
competencies attained and maximize the likelihood that students seeking 
to directly enter high-quality careers will be able to do so. The 
Department is generally interested in comments regarding ideas and 
approaches to strengthen the connection between registered CTE 
apprenticeship programs and the labor market, and specifically whether 
the inclusion of an end-point assessment requirement would strengthen 
this connection.
    Proposed Sec.  29.24(b)(2) would establish the requirement for the 
Administrator to solicit public feedback, including from industry in 
evaluating suitability of industry skills frameworks. The purpose of 
this proposed provision is to ensure the Administrator would be able to 
engage the public and industry leaders, such as industry associations, 
large, medium, and small employers, labor unions and, to the extent 
feasible, State and local CTE advisory council industry membership, to 
ensure that industry skills frameworks are continuously updated to 
reflect the changing needs of industry for which a skills framework has 
been developed. Such a process, along with the requirement of 30 days 
of public comment would ensure the opportunity for robust feedback on 
the applicability of standards to industry and ensure standards are of 
the highest quality and relevance. Additionally, to ensure transparency 
OA would maintain a publicly accessible link to the approved industry 
skills frameworks as well as any that were not approved. Lastly, this 
provision provides that the Administrator may also use relevant 
industry data or information to validate the relevance of industry 
skills frameworks. Such resources may include the O*NET database, 
industry and occupational data from BLS and other federal agencies, as 
well as other data and information available to ensure industry skills 
frameworks are aligned with the needs of their respective industries.
    The Department recognizes that for a potential program sponsor 
looking to develop a registered CTE apprenticeship program, an industry 
skills framework must first be developed and approved by the 
Administrator. The Department also recognizes that as a new model of 
registered apprenticeship, implementation will require a reasonable 
timeframe to develop processes through subregulatory guidance, a 
written agreement for the coordination between a Registration Agency 
and State CTE Agency, registered CTE apprenticeship programs, and 
approved industry skills frameworks. The Department anticipates a 
robust process for the development of industry skills frameworks will 
be required to ensure that industry, across both the National 
Apprenticeship System stakeholder and Perkins communities, are engaged 
and invited to participate in such frameworks. State CTE Agencies will 
be important leaders in these conversations and State CTE standards may 
provide a foundation for some industry skills frameworks. This process 
will also help the Department determine in which industries such 
industry skills frameworks must first be developed, the number of 
industry skills frameworks, and their alignment and application with 
other frameworks. Until the frameworks are developed and approved, a 
registered CTE apprenticeship program sponsor will not be able to 
properly develop and align their on-the-job training outlines with the 
approved industry skills framework required in this section.
Sec.  29.24(c) Standards of Registered CTE Apprenticeship
    Proposed Sec.  29.24(c) would describe the minimum standards of 
registered CTE apprenticeship that all registered CTE apprenticeship 
programs must include to be registered by a Registration Agency. The 
establishment and implementation of robust standards of registered CTE 
apprenticeship is essential to ensuring that registered CTE 
apprenticeship programs deliver consistently high-quality education and 
training to registered CTE apprentices, while also ensuring that CTE 
apprentices are trained in a safe and accessible workplace environment 
where they are protected from exploitation and abuse. Standards of

[[Page 3197]]

registered CTE apprenticeship largely would follow the labor standards 
of apprenticeship under subpart A that elaborate and strengthen the 
current standards of apprenticeship for the conduct of registered 
apprenticeship programs that address key program components, such as 
progressively increasing wages, apprentice-to-journeyworker ratios, 
safety requirements, advanced standing and credit, cost transparency, 
and effective measures to ensure that apprentices are free from 
violence, intimidation, and retaliation in the workplace. These are the 
core requirements that help ensure that apprentices receive high-
quality training in a safe, healthy environment.
    Registered CTE apprenticeship program standards would differ from 
the standards set forth in subpart A by incorporating key concepts such 
as industry skills frameworks that inform the outline for the on-the-
job training component, CTE apprenticeship-related instruction that 
utilize State-approved CTE programs for the curriculum of non-
duplicative coursework, the requirement that standards include the 
awarding of at least 12 postsecondary credit hours leading to a 
recognized postsecondary credential attainment, and which may include 
advanced standing in registered apprenticeship programs under subpart 
A, and how such standards will enable CTE apprentices to enroll in 
postsecondary educational programs, engage in employment, or both. The 
Department's intention in creating the Registered CTE apprenticeship 
model with quality labor standards in conjunction with CTE 
apprenticeship-related instruction is to enable the foundation for 
sustained academic success within the program and beyond program 
completion, provide the opportunity for continuous skill and competency 
attainment that will enable greater proficiency in a job as students 
enter the labor market, and ensure the program is able to fulfill the 
Department's mission to safeguard the welfare of apprentices, which 
includes CTE apprentices. Similar to proposed Sec.  29.8, proposed 
Sec.  29.24(c) would ensure program sponsors, participating employers, 
registered CTE apprentices, and other interested parties understand the 
minimum standards of registered CTE apprenticeship and seek to provide 
apprentices the necessary skills and competencies for lifelong labor 
market success. Given the unique partnerships required at the State 
level and the incorporation of State-approved CTE programs embedded 
into the CTE apprenticeship-related instruction, the Department is not 
proposing a National Program Standards for Apprenticeship registration 
framework for registered CTE apprenticeship.\162\ The Department 
considers local registration as defined in proposed Sec.  29.2 as the 
appropriate method for registering CTE apprenticeship programs.
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    \162\ As previously stated, these proposed regulations would 
govern the proposed DOL CTE apprenticeship program; they would not 
govern ED or the Perkins program. In particular, the Perkins statute 
safeguards local control over instructional content, academic 
standards and assessments, curricula, and programs of instruction. 
20 U.S.C. 2306a(a). These regulations would only impact and control 
DOL CTE apprenticeship programs and would not create any rules 
governing the operation of Perkins programs. Nothing in this 
proposed regulation would mandate, direct, or control a State's, 
local educational agency's, eligible Perkins recipient's, or 
school's specific instructional content, academic standards and 
assessments, curricula, or program of instruction.
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    Proposed Sec.  29.24(c)(1) would establish the requirement for 
program sponsors to include an on-the-job training outline that aligns 
with an approved industry skills framework in standards for registered 
CTE apprenticeship. The Department envisions industry skills frameworks 
to be the guiding framework for program sponsors to use in determining 
the appropriate work activities that lead to proficiency of skills and 
competencies that a CTE apprentice would attain in a paid, on-the-job 
training work experience. Industry skills frameworks would be inclusive 
of all the requisite skills and competencies that an industry would 
both recognize and find valuable for employment in a number of 
occupations that are predominantly found within a single industry or 
across an industry sector. Such on-the-job training outlines aligned to 
industry skills frameworks would provide measurable proficiency in the 
attainment of industry-recognized skills and competencies. Registration 
Agencies would have the discretion to determine whether a proposed on-
the-job training outline submitted by a sponsor aligns with an approved 
industry skills framework approved by the Administrator. The Department 
acknowledges the need for a balance and customization of on-the-job 
training outlines with the goal of ensuring programs are providing 
competencies on the job in a way that is industry validated to ensure 
CTE apprentices have recognized work experience and are set up for 
career success in occupations throughout the respective industry.
    Proposed Sec.  29.24(c)(2) would establish the requirement for 
program sponsors of a registered CTE apprenticeship to include a 
description of the CTE apprenticeship-related instruction that must, at 
a minimum, include a State-approved CTE program and have a duration of 
at least 540 hours. The Department proposes a minimum of 540 hours of 
CTE apprenticeship-related instruction to earn a certificate of 
completion of registered CTE apprenticeship which would allow the CTE 
apprentice to concentrate in a postsecondary CTE program, as 
applicable, complete a recognized postsecondary credential and earn and 
receive at least 12 postsecondary credit hours towards a recognized 
postsecondary credential or degree, while also providing flexibility 
for eligible program sponsors to determine the appropriate number of 
hours above this requirement based on State and local CTE programs and 
the development of career pathway programs that connect registered CTE 
apprenticeship programs with additional postsecondary education 
opportunities.
    The Department proposes a minimum of 540 hours of CTE 
apprenticeship-related instruction to earn a certificate of completion 
of registered CTE apprenticeship because 540 hours would provide a CTE 
apprentice the opportunity to complete foundational coursework and more 
advanced coursework necessary to demonstrate success in postsecondary 
education, pursue registered apprenticeship under subpart A, and to 
seek further employment.
    Related to the 540 hour minimum requirement for CTE apprenticeship-
related instruction, the Department is proposing that CTE apprentices 
must receive a minimum of 12 postsecondary credit hours as part of 
their program. The Department intends for the use of the term ``credit 
hour'' to align with the definition under the Higher Education Act of 
1965 and its implementing regulations, as amended.\163\ The Department 
notes that each postsecondary credit hour translates to approximately 
30 clock hours.\164\ Generally, 12 postsecondary credit hours should 
comprise approximately 360 clock hours of the required 540 hour minimum 
for CTE apprenticeship-related instruction. However, the Department 
notes that postsecondary credit hours may also be acquired as part of 
the on-the-job training component of the program, that when combined 
with credit hours earned during the CTE apprenticeship-related

[[Page 3198]]

instruction should equal not less than 12 postsecondary credit hours.
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    \163\ https://www.ecfr.gov/current/title-34/part-600#p-600.2(Credit%20hour).
    \164\ https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2021-05-25/implementation-updated-clock-credit-conversion-regulations-ea-id-general-21-34.
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    The Department notes that the remaining CTE apprenticeship-related 
instruction hours may be acquired through additional postsecondary 
credit hours, secondary education, or through other industry or 
employer designed related instruction, as applicable. This proposal is 
designed to provide sponsors flexibility of how to attain the 540 
hours, in addition to the 12 postsecondary credit hour requirement.
    The postsecondary credit hour requirement is proposed so that the 
CTE apprenticeship-related instruction includes industrywide skills and 
competencies and the acquisition of college credit to ensure that CTE 
apprentices make significant progress toward a postsecondary credential 
or degree such as an associate's degree and/or bachelor's degree. 
Evidence shows clear economic gains for individuals as they attain 
higher levels of education after high school, such as the acquisition 
of postsecondary credit and credentials. According to the Department's 
Bureau of Labor Statistics (BLS), earnings increase and unemployment 
decreases among individuals who have attained postsecondary education 
and credentials when compared to individuals who have only completed 
high school.\165\ In addition, the Department believes the requirement 
for 12 postsecondary credit hours that can be applied towards a 
recognized postsecondary credential or degree will incentivize the 
greater utilization of college programs while students are in high 
school, which evidence suggests leads to improved student outcomes. 
These benefits include higher student performance on state assessments, 
higher high school graduation rates, increased enrollment and 
completion of postsecondary programs, and increased lifetime earnings 
for students.\166\ Finally, the model of adopting college, including 
postsecondary credit hours, in high schools has been shown to increase 
access and opportunity to college and postsecondary education for low-
income students, underserved populations, and first-generation college 
students.\167\ The Department believes the evidence associated with 
postsecondary educational attainment is a critical component and 
benefit to students in the design of registered CTE apprenticeship 
programs.
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    \165\ https://www.bls.gov/emp/chart-unemployment-earnings-education.htm.
    \166\ https://www.air.org/project/evaluating-impact-early-college-high-schools.
    \167\ Six Years and Counting: The ECHSI Matures (air.org).
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    The Department is proposing a 12 postsecondary credit hour standard 
because the Department believes that this level of credit has multiple 
benefits for CTE apprentices, while balancing the ability to design 
programs under this proposed approach. This includes helping CTE 
apprentices who are in secondary school to complete high school and 
transition into higher levels of education and employment, as evidenced 
by the benefits of dual enrollment, as well as serving adults who may 
be career changers, and subsequently providing these apprentices with a 
head start to pursue additional postsecondary education. Evidence 
suggests that the benefits of dual enrollment increase for secondary 
students with every postsecondary credit earned, particularly that 
benefits and educational attainment increase for those students with 12 
or more credits than those with less than 12 credits.<SUP>168 169</SUP> 
Therefore, the Department is proposing this approach to ensure the 
benefits of this evidence is incorporated into the program design of 
registered CTE apprenticeship. CTE apprentices under this approach will 
be in a strong position to build their careers with continued 
employment, including through registered apprenticeship programs under 
subpart A, continue their postsecondary education towards a 
postsecondary credential and degree, or both.
---------------------------------------------------------------------------

    \168\ Taylor, J.L., Allen, T.O., An, B.P., Denecker, C., 
Edmunds, J.A., Fink, J., Giani, M.S., Hodara, M., Hu, X., 
Tobolowsky, B.F., & Chen, W. (2022), Research priorities for 
advancing equitable dual enrollment policy and practice. Salt Lake 
City, UT: University of Utah. Retrieved from: https://cherp.utah.edu/_resources/documents/publications/research_priorities_for_advancing_equitable_dual_enrollment_policy_and_practice.pdf.
    \169\ Radunzel, J., Noble, J., & Wheeler, S. (2014). Dual-
credit/dual-enrollment coursework and long-term college success in 
Texas. ACT. https://www.act.org/content/dam/act/unsecured/documents/DualCreditTexasReport.pdf.
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    The Department is seeking comments on its proposal to require that 
all registered CTE apprentices earn 12 postsecondary credit hours as 
part of their participation in a registered CTE program, and is 
interested in comments that identify: (1) how this proposal supports 
the broader goal of the program to increase the labor market 
connectivity for CTE apprentices; (2) the benefits for CTE apprentices 
of this approach or an alternative standard of postsecondary credit 
hours should be considered; and (3) the feasibility for secondary 
school sponsors of registered CTE apprenticeship programs to design 
programs that include these requirements. Additionally, the Department 
is interested in comments regarding the impact of the 12 postsecondary 
credit hour requirement across all industries that would utilize 
registered CTE apprenticeship and registered apprenticeship programs 
under subpart A or if other factors should be considered on an industry 
basis.
    The Department is particularly interested in comments about how it 
can a support the growth of secondary educational models that imbed 
postsecondary credit hours into the program design. The Department is 
also interested in comments regarding the attainment of a minimum of 12 
postsecondary credit hours, including that it leads to a postsecondary 
credential or degree, evidenced by a postsecondary institution's 
official transcript(s) for a CTE apprentice, and any other factors that 
can increase access to the labor market and higher education 
opportunities for CTE apprentices. Finally, we recognize that many 
registered CTE sponsors will not be credit awarding institutions, 
particularly local education agencies. The Department is seeking 
comment on whether it will be feasible for sponsors to enter into 
partnerships with institutions of higher education or to make other 
arrangements for the awarding of the requisite credit hours, and 
whether the Department should include an affirmative partnership 
requirement between postsecondary institutions and local education 
agencies if they seek to sponsor a registered CTE apprenticeship 
program.
    In considering whether to establish a floor for the number of hours 
required in CTE apprenticeship-related instruction, the Department 
evaluated a number of factors, such as application of standard credit-
bearing unit, State flexibility for establishing credit hours, and 
Perkins performance accountability. Initially, the Department regarded 
the Carnegie unit as a universal unit of measurement in credit-bearing 
hours for a student's ability to successfully complete the necessary 
credits for attaining a recognized secondary or postsecondary 
degree.\170\ While the Carnegie unit is a standardized unit of 
measurement, under Perkins, States have flexibility in how they define 
courses and assign credits to courses. States that use Carnegie or 
other units

[[Page 3199]]

may translate those units into hours of instruction.
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    \170\ Carnegie Foundation for the Advancement of Teaching, 
``What is the Carnegie Unit?,'' https://www.carnegiefoundation.org/faqs/carnegie-unit (last visited July 20, 2023).
---------------------------------------------------------------------------

    Perkins-eligible recipients typically calculates contact hours for 
State accountability purposes. As an example calculation, a P-12 school 
year is typically 180 days, and if a student attends school every day 
and has 6 CTE contact hours during a school day, that student would 
accumulate 540 hours of contact hours. In this example, 540 hours 
supports the establishment of the required number of hours in CTE 
apprenticeship-related instruction, provided that these hours include 
the required postsecondary coursework. Postsecondary Perkins recipients 
may also choose to calculate instruction time using clock hour and 
credit hour requirements. In this example, 540 clock hours would equate 
to 18 credit hours using the guidance provided by Federal Student 
Aid.\171\
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    \171\ See Federal Student Aid, ``Implementation of updated 
clock-to-credit conversion regulations,'' May 25, 2021 https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2021-05-25/implementation-updated-clock-credit-conversion-regulations-ea-id-general-21-34.
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    In establishing a floor of 540 hours, the Department is allowing 
flexibility to accommodate variability in how eligible program sponsors 
define hours and how they are applied to meet the requirement for the 
CTE apprenticeship-related instruction component. The inclusion of at 
least 12 postsecondary credit hours within the 540 hours of CTE 
apprenticeship-related instruction is designed to ensure that there are 
strong linkages between secondary and postsecondary programs, and 
opportunities for students to achieve the desired outcomes of the 
program. The Department anticipates that there will be a range of 
applicable credit hours that are counted toward a CTE apprentice's 
participation in a program as a requirement of a CTE apprenticeship-
related instruction component included in the standards. A program 
sponsor would need to determine the required length of time a student 
may be enrolled in a corresponding program and as part of the overall 
CTE apprenticeship-related instruction. The Department recognizes that 
the requirement for 540 hours for CTE apprenticeship-related 
instruction may solely occur while students are in high school, may 
solely occur while students are enrolled in postsecondary education, 
and may also span students' high school experience and into 
postsecondary education. To the extent that States have CTE programs 
that include dual or concurrent enrollment agreements or articulation 
agreements that facilitate the extension of programs that have similar 
characteristics to registered CTE apprenticeship programs, the 
Department is interested in commenters' examples of such programs and 
the necessary coordination amongst CTE stakeholders to achieve the 540 
hours of CTE apprenticeship-related instruction and the inclusion of at 
least 12 postsecondary credit hours that will be necessary to enable 
and expand these types of educational pathways. The Department is also 
interested in comments about the established floor for CTE 
apprenticeship-related instruction and whether it should be lower or 
higher to best accommodate the proposed model while providing 
educational attainment pathways for enrolled students.
    This proposal also includes a provision found in subpart A 
regarding whether apprentices, or CTE apprentices in this instance, 
would be provided wages and fringe benefits during their participation 
in CTE apprenticeship-related instruction. The Department acknowledges 
that under the registered CTE apprenticeship model, where the CTE 
program is the primary form of CTE apprenticeship-related instruction, 
sponsors and employers may be less likely to provide support wages for 
the hours in which the CTE apprentices are participating in their CTE 
program. However, the Department encourages, where possible, registered 
CTE apprenticeship models in which employers elect to provide wages or 
fringe benefits during CTE apprenticeship-related instruction. This may 
also be relevant where employer-specific training is added to the CTE 
program as part of the total amount of CTE apprenticeship-related 
instruction.
    Proposed Sec.  29.24(c)(3) would establish the requirement that 
program sponsors of a registered CTE apprenticeship include a 
description of any recognized postsecondary credentials that would be 
awarded to a CTE apprentice as a programmatic outcome either during or 
at the completion of registered CTE apprenticeship. Program sponsors 
also would be required to include, as applicable, any associate or 
baccalaureate degree associated with the program and the amount of 
postsecondary credit hours that students will earn as a result of the 
registered CTE apprenticeship. Program sponsors must also include the 
name of any credential or certificate awarding entity, typically an 
accredited education institution, as part of the description. The 
Department has proposed a similar requirement in subpart A, requiring 
the disclosure of credentials provided by the program; however, the 
requirement to disclose the number of postsecondary credit hours is a 
proposed requirement for registered CTE apprenticeship. The Department 
has determined this information is valuable for Registration Agencies 
to have as part of its desire to build high-quality registered 
apprenticeship programs in both models.
    Proposed Sec.  29.24(c)(4) would establish the requirement that 
program sponsors of a registered CTE apprenticeship include a 
description of how the program will result in CTE apprentices' 
selection into an apprenticeship program registered under subpart A, 
enrollment in a postsecondary educational program, employment, or some 
combination thereof. The Department considers a program that 
accomplishes any one of these three outcomes as key to measuring the 
success of the registered CTE apprenticeship model, and believes it is 
important for sponsors to have considered these outcomes and for 
apprentices to have visibility into the potential outcome of their 
participation. Registered CTE apprenticeship programs should establish 
a documented relationship with a registered apprenticeship program 
established under proposed subpart A, especially in sectors where such 
programs are well-established, and with an institution of higher 
education, to maximize educational and employment opportunities for CTE 
apprentices.
    As previously discussed, an industry skills framework is utilized 
in developing the on-the-job outline that is a core component of a 
registered CTE apprenticeship. Such outlines must have a minimum 
duration of 900 hours of paid on-the-job training and lead to 
proficiency in the skills and competencies described in the industry 
skills framework. Proposed Sec.  29.24(c)(5) would establish the 
requirement that program sponsors of a registered CTE apprenticeship 
include a description of the employment in which CTE apprentices will 
be employed in on-the-job training with criteria included in the on-
the-job training outline. The Department is proposing this requirement 
because registered apprenticeship programs under subpart A are 
responsible for training in a specific occupation and, therefore, the 
specific type of employment is known in that model, under the 
registered CTE apprenticeship model, the Department is approving 
broader industry skills frameworks that could lead to attainment of 
foundational skills in multiple occupations within an industry. The 
Department considers the

[[Page 3200]]

requirement critical to ensuring the employment associated with the 
registered CTE apprenticeship is relevant to the industry skills 
framework. By including this description, a Registration Agency can 
better ascertain that the skills identified in the framework are being 
achieved by the CTE apprentice through employed on-the-job training.
    The Department is basing the 900 hours requirement on certain State 
youth apprenticeship models that require a minimum of 450 hours of on-
the-job training per year.\172\ The Department has also reviewed 
several State requirements of State youth apprenticeship models and how 
States and localities have incorporated CTE into such models, as well 
as the incorporation of CTE into pre-apprenticeship and registered 
apprenticeship.<SUP>173 174</SUP> Such practices are the basis for 
establishing the requirement of 900 hours of on-the-job training. For 
example, the State of Wisconsin has established that a youth 
apprenticeship consists, at minimum, of 1 year of employment of at 
least 450 hours and related instruction of at least two semester-long 
courses.\175\ In addition to completing 1 year of a youth 
apprenticeship, high school juniors or seniors may choose to also 
complete 2 years of employment of at least 900 hours and related 
instruction of at least four semester-long courses, which can be 
completed during the junior or senior year of high school (including 
over the summer or during breaks between semesters). Similarly, the 
State of Maryland offers youth apprenticeship opportunities for 
students typically in their junior and senior year of high school and 
requires students in such programs work a minimum of 450 hours with an 
employer approved by the Maryland Division of Workforce Development and 
Adult Learning while receiving concurrent related educational 
instruction that has been approved by their local school system.\176\ 
The Department is basing its approach off of these models' 1-year youth 
apprenticeship standard, which balances a student's education and work-
life, and applying it to a model that requires the equivalent of a 2 
year duration. This would help to ensure the programmatic goal of 
bridging secondary and postsecondary education with quality labor 
standards. Rather than impose a yearly requirement, the hourly 
requirement provides flexibility for multiple models of when the 
employment may take place, including during the school year or semester 
and over the summer or during breaks between semesters. The Department 
welcomes comments both on establishing a floor of paid on-the-job 
training hours for registered CTE apprenticeship, as well as any 
recommendations on the number of hours needed for that floor. The 
Department is interested in comments about whether this proposed floor 
limits program development. To the extent that potential program 
sponsors are interested in pursuing this new model, the Department is 
interested in comments addressing whether existing program design and 
outcomes provide evidence that the number of 900 hours should be 
lessened. The Department is also interested in comments addressing 
whether the 900-hour floor is sufficient to train apprentices on core 
industry competencies in a work setting or if a higher number should be 
considered.
---------------------------------------------------------------------------

    \172\ Wisconsin Department of Public Instruction, ``Career-Based 
Learning Experience: State-Certified Youth Apprenticeship,'' Aug. 
2022, https://dpi.wi.gov/sites/default/files/imce/acp/pdf/2022_08_State-Certified_Youth_Apprenticeship_handout.pdf.
    \173\ An explanation of youth apprenticeship utilizing 
registered apprenticeship can be found at https://www.jff.org/what-we-do/impact-stories/center-for-apprenticeship-and-work-based-learning/youth-apprenticeship. See also Joseph B. Fuller et al., The 
Project on Workforce, Harvard University, ``The Options Multiplier: 
Decoding the CareerWise Youth Apprenticeship Journey,'' Nov.14, 
2022, https://www.hbs.edu/faculty/Pages/item.aspx?num=63353.
    \174\ ED, ``Opportunities for Connecting Secondary Career and 
Technical Education (CTE) Students and Apprenticeship Programs,'' 
June 2017, https://careertech.org/resource/connecting-secondary-cte-and-apprenticeships.
    \175\ Wisconsin Department of Workforce Development, ``Youth 
Apprenticeship,'' https://dwd.wisconsin.gov/apprenticeship/ya (last 
visited July 20, 2023).
    \176\ Maryland Department of Labor, ``Policy Issuance 2022-12: 
Youth Apprenticeship,'' Dec. 19, 2022, https://www.labor.maryland.gov/employment/mpi/mpi12-22.pdf.
---------------------------------------------------------------------------

    Proposed Sec.  29.24(c)(6) largely follows proposed Sec.  
29.8(a)(17) and would require the written standards to include wages 
that the CTE apprentice will receive during the registered CTE 
apprenticeship program. The current regulation at 29 CFR 29.5(b)(5) 
stipulates the payment of a progressively increasing schedule of wages 
to be paid to the apprentice with the skill required. It further 
provides that the entry wage may not be less than the Fair Labor 
Standards Act minimum wage, where applicable, unless a higher wage is 
required by other applicable Federal, State, or local law, or 
respective regulations, or by collective bargaining agreement.
    The Department also proposes to retain the requirement of a minimum 
wage floor at the outset of the apprenticeship and a graduated schedule 
of progressively increasing wages for apprentices during the remainder 
of the apprenticeship term. However, similar to proposed Sec.  
29.8(a)(17), proposed Sec.  29.24(c)(6) would stipulate that the 
graduated schedule of wages paid to a CTE apprentice would increase 
over the balance of the apprenticeship term to reflect the apprentice's 
progressive acquisition of industry skills and competencies.
    The Department invites comments on these provisions to bolster the 
registered CTE apprenticeship progressive wage requirements. The 
Department is interested in comments regarding the feasibility of this 
approach across industries, and whether this requirement effectively 
balances the goal of providing continuous progressive wages with 
competency attainment against industry needs for flexibility regarding 
wage increases.
    In addition to these proposed wage progression revisions, the 
Department reminds sponsors that, consistent with the requirements of 
29 CFR part 30, the wages paid by a sponsor or a participating employer 
to a CTE apprentice must not discriminate against such persons on the 
basis of race, color, religion, national origin, sex, sexual 
orientation, gender identity, age (40 or older), genetic information, 
or disability. In addition, the Department reminds both registered CTE 
apprenticeship program sponsors and participating employers that CTE 
apprentices who meet the definition of an employee under either the 
Internal Revenue Code or the Fair Labor Standards Act--which they will 
in virtually every instance--must not be misclassified by such sponsors 
or employers as independent contractors.
    Proposed Sec.  29.24(c)(7) would follow proposed Sec.  29.8(a)(19) 
in subpart A, regarding the ratio of apprentices to journeyworkers, and 
would apply ratio requirements for registered CTE apprenticeship in 
this part. The intended purpose of this ratio requirement is to further 
the Department's goal of ensuring the safety and welfare of CTE 
apprentices while engaged in on-the-job training. Proposed Sec.  
29.24(c)(7)(i) would specify that the sponsor's ratio must be approved 
by a Registration Agency, consistent with the proper safety, health, 
supervision, and training of the CTE apprentice. This requirement would 
center apprentice safety and welfare as the main considerations in the 
establishment of the specific numeric ratio for a registered CTE 
apprenticeship program. To ensure that the ratio is consistent

[[Page 3201]]

with the proper safety, health, supervision, and training of the 
registered CTE apprentice, program sponsors and the reviewing 
Registration Agency should consider factors that could endanger the 
welfare of an apprentice who is participating in their program such as 
risk of exposure to hazardous working conditions and risk of serious 
bodily injury or death while on the job.
    In practice, a ratio of one apprentice to one journeyworker has 
been the norm for programs under subpart A; however, registered CTE 
apprenticeship may require greater scrutiny for ratios because there is 
a greater likelihood that high-school-aged CTE apprentices may 
participate in settings where they will need more supervision to ensure 
proper training and safety.
    While apprentice safety is the focus of the proposed requirement, 
there would also be flexibility provided to sponsors in setting the 
specific numeric ratio. Proposed Sec.  29.8(c)(7)(ii) would specify 
that sponsors must use a ratio that is consistent with the provisions 
of any applicable collective bargaining agreements, as well as any 
applicable Federal and State laws governing ratios of apprentices to 
journeyworkers, and specific and clearly described as to its 
application to a particular workforce, workplace, job site, department, 
or plant. The Department recognizes that a one-size-fits-all approach 
is not feasible with respect to ratios. Instead, the Department is 
cognizant that ratios may be different depending upon the specific 
industry or on-the-job training opportunity in which the registered CTE 
apprenticeship program is taking place. The Department also recognizes 
that a specific numeric ratio of an apprenticeship program may be set 
in an applicable collective bargaining agreement or by applicable 
Federal and State laws. As described in subpart A at proposed Sec.  
29.8, the current practice has been to approve a 1:1 ratio, with some 
deviations based on safety and other considerations of specific 
industries. The Department anticipates a similar ratio for registered 
CTE apprenticeship. Ultimately, each program must have a ratio specific 
to that program that is designed to protect the safety of its CTE 
apprentices consistent with the considerations described and discussed 
above. The Department is seeking comments on these longstanding 
criteria, particularly to ensure how the ratios are applied in both 
emerging and traditional industries that provide CTE apprentices with 
foundational skills and competencies and work experiences. The 
Department is also interested in comments about setting ratios where 
there is a blended on-the-job training component with a registered 
apprenticeship under subpart A. Finally, the Department seeks comments 
on whether it should require a different CTE apprentice-to-
journeyworker ratio because of the nature of this model being designed 
for students and their related employment.
    Proposed Sec.  29.24(c)(8) would establish the requirement for a 
probationary period that program sponsors of a registered CTE 
apprenticeship must include in program standards. The probationary 
period for registered CTE apprenticeship programs may not exceed 30 
days. Proposed Sec.  29.24(c)(8) differs from proposed Sec.  
29.8(a)(12) by creating a shorter probationary timeframe for registered 
CTE apprenticeship. The 30-day probation period aligns with customary 
practices Perkins-eligible recipients and institutions utilize to allow 
students to change courses at the outset of a semester. For example, a 
CTE apprentice may choose to change their course schedule or enroll in 
another program or other coursework unrelated to the registered CTE 
apprenticeship for which they were admitted. The probationary period is 
also shortened to recognize that registered CTE apprenticeship 
programs' on-the-job training hours are shorter in length than those of 
registered apprenticeship programs under subpart A. The Department is 
interested in comments about whether the probationary period length is 
appropriate for CTE students' participation in and program sponsors' 
operation of CTE programs and registered CTE apprenticeship programs.
    Proposed Sec.  29.24(c)(9) follows proposed Sec.  29.8(a)(15) and 
would require that the standards of registered CTE apprenticeship 
include an attestation that the program sponsor will provide adequate, 
safe, and accessible facilities for the training and supervision of 
apprentices. The attestation must include that the program sponsor will 
provide accessible facilities (including for individuals with 
disabilities), aligning with the Department's broader goal that 
registered CTE apprenticeship programs registered under this part are 
career pathways available to everyone. The Department adds that the 
attestation would also require that the facilities be compliant with 
all applicable Federal, State, and local laws, including, but not 
limited to, disability, occupational safety, and occupational health 
laws.
    Proposed Sec.  29.24(c)(10) follows proposed Sec.  29.8(a)(16) and 
would require that the standards of registered CTE apprenticeship 
include an attestation that the program sponsor will provide adequate, 
industry-recognized safety training for apprentices in both the on-the-
job training and CTE apprenticeship-related instruction components of 
the registered CTE apprenticeship program. Proposed Sec.  29.24(c)(10) 
would require that safety training provided to CTE apprentices be 
tailored to mitigate the potential workplace hazards that may be 
encountered in the covered industry skills framework on-the-job 
training outline. This proposed requirement would help ensure the 
safety of apprentices participating in registered CTE apprenticeship 
programs.
    Proposed Sec.  29.24(c)(11) would establish the requirement that 
program sponsors of a registered CTE apprenticeship include in their 
standards the minimum qualifications, if any, required by a sponsor and 
its participating employers for persons entering the CTE apprenticeship 
program. The purpose of this provision is to ensure that program 
eligibility and subsequent opportunities for CTE apprentices to 
participate in the paid on-the-job component of their registered CTE 
apprenticeship program have inclusive, achievable, and standardized 
minimum qualifications to ensure fair and equitable opportunities for 
all students looking to access and enter a registered CTE 
apprenticeship. This provision would also acknowledge that program 
sponsors and employers have minimum qualifications for entry, such as a 
student's responsibility to have completed requisite coursework, and 
have an appropriate attendance history. The Department requests comment 
on whether program sponsors and employers should be permitted to 
establish a certain minimum grade point average for CTE apprentices to 
obtain entry into, or maintain enrollment in, a registered CTE 
apprenticeship program.
    Proposed Sec.  29.24(c)(12) would follow existing requirements 
under the current regulations at 29 CFR part 29 and proposed Sec.  
29.8(a)(2) under subpart A and would apply to this part. Proposed Sec.  
29.24(c)(12) would require program sponsors of registered CTE 
apprenticeship programs to include a provision in their program 
standards that describes the program's method for the selection of 
apprentices. The current regulations specify that program standards for 
all registered apprenticeship programs must fully comply with the EEO 
in Apprenticeship regulations at 29 CFR part 30, and current 29 CFR 
29.5(b)(21)--which forms the basis for the language proposed at Sec.  
29.8(a)(2) in subpart A

[[Page 3202]]

and in this part in this NPRM--specifies that selection procedures must 
conform to the regulations governing the selection of apprentices at 
current 29 CFR 30.10. The current regulatory text covers selection 
procedures within a provision that includes other requirements for 
program sponsors that have EEO elements and corresponding part 30 
requirements. The Department has determined that the regulated 
community would benefit from the clarity that would arise from 
separating these elements out into distinct provisions. Accordingly, 
the Department proposes to include a provision covering selection 
procedures for registered CTE apprenticeship programs, similar to 
proposed 29 CFR 29.8(a)(2). Such selection procedures must conform to 
the corresponding requirements at 29 CFR 30.10.
    The EEO in Apprenticeship regulations at 29 CFR 30.10 reiterate the 
part 29 requirement that sponsors must submit selection procedures in 
the written plan for their program standards, which are submitted to 
and approved by the Registration Agency. The regulations at 29 CFR 
30.10 stipulate that sponsors may use any method or combination of 
methods for the selection of apprentices, as long as the selection 
method(s) comply with the Uniform Guidelines on Employee Selection 
Procedures found at 41 CFR part 60-3, which require an evaluation of 
the selection procedures' impact on race, sex, and ethnic groups, as 
well as a demonstration of the business necessity for procedures that 
result in an adverse impact across any of these demographic groups. The 
regulations at 29 CFR 30.10 also stipulate that selection procedures be 
applied uniformly and consistently across all applicants and 
apprentices, and that the selection procedures must comply with title I 
of the ADA and the implementing regulations at 29 CFR part 1630. 
Finally, the regulations at 29 CFR 30.10 clarify that selection 
procedures must be facially neutral with respect to race, color, 
religion, national origin, sex, sexual orientation, age (40 or older), 
genetic information, and disability. Per the ruling from Washington v. 
Davis, 426 U.S. 229 (1976), a decision (or selection procedures, in the 
case of the apprenticeship regulations at parts 29 and 30) appears 
facially neutral if it neither creates a ``suspect classification'' nor 
infringes on a ``fundamental right.'' \177\ As stated in subpart A, 
these regulatory requirements would be unchanged by this NPRM. However, 
for this subpart all potential program sponsors seeking approval of a 
registered CTE apprenticeship must be in compliance with the selection 
procedures regulations at parts 29 and 30, and the Department stands 
ready to provide subregulatory guidance on these requirements or any 
other requirements related to the development, submission, and approval 
of program standards.
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    \177\ Thomas B. Henson, ``Proving Discriminatory Intent From a 
Facially Neutral Decision With A Disproportionate Impact,'' 36 Wash 
& Lee L. Rev. 109, 1979, https://scholarlycommons.law.wlu.edu/cgi/viewcontent.cgi?article=2745&context=wlulr.
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    Proposed Sec.  29.24(c)(13) would require program sponsors to 
provide a list of any supportive services that may be available to the 
CTE apprentice, including childcare, transportation, equipment, tools, 
or any other supportive service provided by the sponsor or a partnering 
organization. This proposal would provide an opportunity for the CTE 
apprentice to be aware of any supports they may have access to or 
receive during their participation in the program. Such supports may be 
arranged through partner organizations or in coordination with the 
workforce development system.
    Proposed Sec.  29.24(c)(14) would largely follow proposed Sec.  
29.8(a)(20), which would change an existing requirement concerning the 
granting of advanced standing, credit, and an increased wage to an 
apprentice and confers this recognition to CTE apprentices. The 
proposed provision would require that the program sponsors' standards 
of registered CTE apprenticeship programs not only grant advanced 
standing, credit, and an increased wage to a CTE apprentice when 
appropriate, but explicitly instruct sponsors to include a process by 
which they will reduce the usual term of on-the-job training or CTE 
apprenticeship-related instruction. This change would recognize that 
the reduction of the usual term of on-the-job training or related 
instruction may be appropriate in two scenarios: (1) where a CTE 
apprentice comes to a program with prior qualifications that warrant 
the reduction of the usual term of on-the-job training or related 
instruction, such as previous enrollment in a program that aligns with 
the program in CTE apprenticeship-related instruction in a registered 
CTE apprenticeship program; and (2) where an apprentice demonstrates 
expedited progress while in a registered CTE apprenticeship program 
that warrants the reduction of the usual term of on-the-job training or 
related instruction, such as the attainment of postsecondary credit 
that may be counted for matriculation purposes.
    Further, proposed Sec.  29.24(c)(14) would create two requirements 
for the process by which sponsors must abide. Proposed Sec.  
29.24(c)(14)(i) would require that the established process be fair, 
transparent, and objective in identifying, assessing, and documenting a 
registered CTE apprentice's prior learning or experience as well as any 
accelerated progress made by a CTE apprentice. Proposed Sec.  
29.24(c)(14)(ii) would require that the process must result in advanced 
standing, credit, and an increased wage that is commensurate with any 
progression granted because of the registered CTE apprentice's prior 
qualifications or accelerated progress. The Department notes that this 
feature of accelerating CTE apprentices was a feature of the 
competency-based model of registered apprenticeship under the current 
rule, which the Department is proposing to remove as a separate model. 
The Department recognizes that the utilization of industry skills 
frameworks for the attainment of industrywide skills and competencies 
resembles the competency model in some regards but is differentiated by 
the successful attainment of industrywide skills and competencies and 
not proficiency in any one occupation suitable for registered 
apprenticeship. The Department's proposal seeks to embed the benefits 
of competency attainment from this model with minimum employment 
duration requirements for on-the-job training. This proposal would 
allow sponsors the flexibility to advance apprentices, and for CTE 
apprentices to receive commensurate advancement in wages, based on 
their prior experience. This proposal would help to ensure sponsors 
continue to have some of the key flexibility components of the 
competency-based approach that are well-suited for registered CTE 
apprentices, with key quality enhancements enabling the Registration 
Agency, in coordination with a State CTE Agency, to review to ensure 
CTE apprentices are progressed fairly, and such processes are 
equitable, objective, and align with educational requirements embedded 
within a program.
    The Department's proposed method of requiring a minimum amount of 
on-the-job training hours while allowing advanced standing based on 
existing competency is similar to the current ``hybrid'' model of 
registered apprenticeship and would provide the right balance of 
training participants to an industry standard and duration, while 
recognizing the unique skill and competency progressions of CTE

[[Page 3203]]

apprentices. This provision would also ensure that a CTE apprentice 
does not have an abbreviated on-the-job training experience in the 
program if circumstances do not warrant it, so that a program is not 
graduating apprentices from their program before they have completed 
their training and demonstrate the requisite proficiency. CTE 
apprentices may need to complete on-the-job training even when an 
academic school year has ended. The Department is interested in 
comments about the applicability of such mechanisms for recognition, 
such as prior learning in a program or transferable credit through dual 
or concurrent enrollment, in this new model and welcomes comments about 
other mechanisms that would enable CTE apprentices the opportunity for 
advanced standing, credit, and increased wages.
    Proposed Sec.  29.24(c)(15) would create a requirement that the 
standards of registered CTE apprenticeship include an attestation to 
document in writing that the qualifications and experience of the 
trainers and instructors providing the on-the-job training and CTE 
apprenticeship-related instruction to CTE apprentices satisfy the 
requirements in proposed Sec.  29.12 of subpart A. The requirement in 
this section would be an acknowledgment in the standards that the 
requirements of proposed Sec.  29.12 are being met. The Department 
believes it is important that the standards of registered CTE 
apprenticeship include this requirement so that the Registration Agency 
can ensure that trainers are qualified and so that apprentices know 
that they are being trained by qualified individuals.
    Proposed Sec.  29.24(c)(16) would require that registered CTE 
apprenticeship program sponsors identify the Registration Agency and 
State CTE Agency for which the program is being registered. The purpose 
of this proposed provision is to ensure that both coordinating entities 
are accurately identified and that such information is available to the 
CTE apprentices and their parents or guardian, if applicable, as well 
as the Registration Agency for conducting program reviews and 
coordinating with a State CTE Agency as applicable in the written 
agreement.
    Proposed Sec.  29.24(c)(17) would address a program's adherence to 
EEO Requirements and would stipulate that the standards of registered 
CTE apprenticeship must include the equal opportunity pledge as 
required in Sec.  30.3(c), as well as a statement that the program must 
be conducted, operated, and administered in conformity with all 
applicable provisions of 29 CFR part 30.
    Proposed Sec.  29.24(c)(18) would require program sponsors of a 
registered CTE apprenticeship to include in standards the contact 
information of the appropriate party to address complaints within the 
program. In addition to filing complaints with the program, CTE 
apprentices may make complaints to a Registration Agency consistent 
with paragraph (g) of this section, and information on how to do so 
must be included in the apprentice agreement as required by paragraph 
(e) of this section.
Sec.  29.24(d) Registered CTE Apprenticeship Program Sponsors
    Proposed Sec.  29.24(d) would describe the entities eligible to be 
a sponsor of a registered CTE apprenticeship program, the process for 
which a sponsor registers a registered CTE apprenticeship program, 
additional responsibilities for intermediaries designated to be program 
sponsors, and the requirement for program sponsors to enter into an 
adoption agreement.
Sec.  29.24(d)(1) Eligible Registered CTE Apprenticeship Program 
Sponsors
    Proposed Sec.  29.24(d)(1) would establish the types of 
organizations and entities that may be eligible for registration by a 
Registration Agency to serve as a sponsor of a registered CTE 
apprenticeship program. For the registered CTE apprenticeship model, 
the Department envisions LEAs, institutions of higher education, State 
CTE Agencies, or another State government agency that shares 
responsibility for CTE in the State, as the primary organizations and 
entities that may serve as a program sponsor. Such Perkins-eligible 
recipients and agencies are embedded within the existing infrastructure 
of Perkins and are well-positioned to perform many of the programmatic 
and administrative requirements that program sponsors must perform 
under this part. The proposed eligible registered CTE apprenticeship 
program sponsor organizations and entities have institutional 
experience and acumen working with and supporting students who are 
enrolled in CTE programs. Consistent with statutory Perkins 
requirements as administered by ED, Perkins-eligible recipients and 
agencies that provide administrative and programmatic oversight would 
be required to ensure that rigorous academic standards are developed, 
implemented, successfully met, and continuously refined to provide CTE 
students with educational outcomes that prepare them for career 
pathways in high-demand industries that offer good jobs. In addition, 
administrators and CTE faculty would be equipped with certified 
training to perform the requisite administration and execution of 
recognized programs that registered CTE apprenticeship has included as 
an integral component for CTE apprenticeship-related instruction. To 
the extent that any of the aforementioned organizations and entities 
chose to designate as a program sponsor an intermediary, they may do so 
by entering into an agreement.
    Proposed Sec.  29.24(d)(1)(iv) would allow a State CTE Agency, 
State Educational Agency, LEA, or institution of higher education to 
designate an intermediary to act as a program sponsor. To serve as a 
sponsor, intermediaries should have expertise in organizing and 
coordinating registered CTE apprenticeship programs or registered 
apprenticeship programs under subpart A. The following organizations 
and entities are examples of entities that may qualify to be designated 
as an intermediary: the local affiliate of a labor organization, such 
as a joint apprenticeship and training committee; an employer; the 
local affiliate of a trade or industry organization; a local workforce 
development board as established under WIOA; an institution of higher 
education (including community or technical colleges, 4-year degree 
granting institutions, Historically Black Colleges and Universities, 
Tribal Colleges and Universities, and Minority Serving Institutions); 
an LEA; and any other public, private, or not-for-profit entity that 
has experience coordinating Perkins funding. This broad list of 
examples shows the potential models that may be developed in 
coordination and partnership at the State or local level. In practice, 
a number of potential program sponsors that would be eligible under 
this part operate consortia and designate responsibility to LEAs, 
institutions of higher education, or non-profit organizations that 
specialize in the administration and operation of education programs. 
The Department understands that States and local education systems may 
need flexibility in designing registered CTE apprenticeship programs to 
accommodate nuances in the development and articulation. The Department 
is most interested in comments about both the feasibility and capacity 
of the proposed eligible organizations and entities and the types of 
intermediaries that may be designated through an agreement to develop 
registered CTE apprenticeship programs within existing CTE programs.

[[Page 3204]]

Sec.  29.24(d)(2) Sponsor Program Registration
    Proposed Sec.  29.24(d)(2) would contain the requirements for a 
program sponsor to submit an application for registration of a new 
registered CTE apprenticeship program. The Department anticipates 
electronic submission of applications, which would lead to increased 
timely technical assistance. The Department has successfully launched a 
web-based platform called Standards Builder, which has also been 
leveraged by SAAs and could be utilized for the registration of 
registered CTE apprenticeship programs. While there is no requirement 
that standards must be submitted electronically in the current rule for 
registered apprenticeship programs, the Department anticipates that 
requiring submissions electronically would result in better customer 
service, enable technical assistance to be provided electronically and 
timely, and could yield more responsive approvals of programs that meet 
the requirements of this part and part 30. The Department anticipates 
continuing to expand and refine its development of web-based tools to 
assist in the registration process, and requiring electronic 
submissions would allow OA to focus its efforts more on providing 
sponsors technical assistance than on reviewing and providing feedback 
through nonelectronic means.
    Proposed Sec.  29.24(d)(2)(i) through (v) would require a 
prospective program sponsor to submit: (1) an on-the-job training 
outline that aligns with an associated industry skills framework, set 
forth in proposed Sec.  29.24(b); (2) a registered CTE apprenticeship-
related instruction outline, set forth in proposed Sec.  29.24(c)(2); 
(3) standards of registered CTE apprenticeship for the proposed 
program, set forth in proposed Sec.  29.24(c); and (4) the CTE 
apprenticeship agreement for the registered CTE apprenticeship, set 
forth in proposed Sec.  29.24(e). These requirements would capture the 
core elements of a registered CTE apprenticeship program and ensure 
that program sponsors have addressed such core elements in the 
submission process to register a program.
    Proposed Sec.  29.24(d)(2)(v)(A) through (G) would require a 
registered CTE apprenticeship program sponsor to include a written plan 
with seven components. Proposed Sec.  29.24(d)(2)(v)(A) would require a 
description of how the program will ensure the students who are 
selected to participate in the registered CTE apprenticeship program 
reflect a diverse and inclusive cross-section of the current student 
body enrollment of the participating secondary or postsecondary 
school(s), consistent with the requirements of 29 CFR part 30. The 
purpose of this component of the written plan is for the program 
sponsor to demonstrate to the Registration Agency that the program 
sponsor is providing equitable opportunities for all students within 
the educational institution. Proposed Sec.  29.24(d)(2)(v)(B) would 
require a description of how the approved industry skills framework 
aligns with the existing CTE program. The purpose of this component of 
the written plan is to ensure that there is alignment between the 
industrywide skills and competencies detailed within an Administrator-
approved industry skills framework with a State-approved CTE program. 
Standards of registered CTE apprenticeship would not impact, direct, or 
control Perkins CTE programs, as such are completely within local 
control as established in 20 U.S.C. 2306a. Proposed Sec.  
29.24(d)(2)(v)(C) would require a description of recognized 
postsecondary credentials the program may provide, including how the 
program confers such credentials, and its usefulness for apprentices' 
entry into employment, a registered apprenticeship program under 
subpart A, a postsecondary educational program, or some combination 
thereof. The purpose of this component of the written plan is to 
demonstrate the likelihood that the registered CTE apprenticeship would 
provide corresponding educational credentials and provide a pathway for 
a CTE apprentice to enter into any one of the aforementioned outcomes.
    Proposed Sec.  29.24(d)(2)(v)(D) would require a written 
description from the registered CTE apprenticeship program sponsor of 
how they will ensure that each employer participating in the program 
has an established record of maintaining a safe and inclusive workplace 
that is free from discrimination, violence, harassment, intimidation, 
and retaliation against employees. The purpose of including this 
description is to ensure the safety and welfare of CTE apprentices 
participating in the on-the-job training component of the program.
    Proposed Sec.  29.24(d)(2)(v)(E) would require a written 
description from the registered CTE apprenticeship program sponsor of 
how CTE apprentices will have access to a broad range of career 
services and supportive services that enable participation in, and 
successful completion of, the CTE apprenticeship program. The purpose 
of including this assurance is to provide transparency to potential 
program participants and their families that such services are 
available so students can equitably access, participate in, and 
complete a CTE apprenticeship program regardless of potential 
socioeconomic barriers that would otherwise provide a financial 
hardship to the CTE apprentice or their families.
    Proposed Sec.  29.24(d)(2)(v)(F) would require a written 
description from the registered CTE apprenticeship program sponsor of 
how it will conduct routine monitoring and oversight of all aspects of 
the registered CTE apprenticeship program. The purpose of this written 
assurance is to ensure a program sponsor is aware of its responsibility 
to provide timely and accurate monitoring and oversight to maintain the 
functionality and integrity of the registered CTE apprenticeship 
program and to allow the Registration Agency to take necessary 
corrective action if the sponsor fails to abide by this assurance.
    Proposed Sec.  29.24(d)(2)(v)(G) would require a written 
description from the registered CTE apprenticeship program sponsor of 
how the program will take affirmative steps to adhere to the 
requirements of 29 CFR part 30. This section is the same concept as 
proposed for registered apprenticeship programs in proposed Sec.  
29.10(a)(8) and the Department is including this provision here, with 
updates to account for registered CTE apprenticeship programs and CTE 
apprentices in the proposed text to ensure this provision is 
referencing the terms of subpart B.
    Proposed Sec.  29.24(d)(2)(vi) would require a written assurance 
from the registered CTE apprenticeship program sponsor that parties 
involved with the operation of the registered CTE apprenticeship 
program, such as employers, partnering educational institutions, and 
designated intermediaries, agree to the specific commitments, roles, 
and responsibilities addressed in the program standards. In addition, 
proposed Sec.  29.24(d)(2)(vii) would require an assurance that such 
agreements be formalized through memoranda of understanding or other 
written agreements. This proposed provision would help establish that 
the prospective sponsor has engaged with these stakeholders and 
partners and would allow the Registration Agency to hold the sponsor 
accountable if they have not engaged these stakeholders and partners.
    Proposed Sec.  29.24(d)(2)(vii) would require a written assurance 
from the registered CTE apprenticeship program sponsor that, consistent 
with Sec.  29.18, the sponsor will maintain any required records that 
the Registration Agency considers necessary to determine

[[Page 3205]]

whether the sponsor has complied or is complying with the requirements 
of this part and any applicable Federal or State laws. The purpose of 
this written assurance is to provide a Registration Agency with 
pertinent records for conducting program reviews and other compliance 
activities. All records referenced in proposed Sec.  29.24(d)(2)(i) 
through (vii) would be subject to the records retention requirement in 
proposed Sec.  29.24(d)(2)(viii).
Sec.  29.24(d)(3) Additional Responsibilities for Intermediaries 
Serving as a Sponsor
    Proposed Sec.  29.24(d)(3) would require an intermediary that has 
been designated as a program sponsor under proposed Sec.  
29.24(d)(1)(iv) to comply with the requirements of this subpart and 
coordinate with relevant Perkins educational institutions and agencies 
to ensure program sponsor requirements are met, including the complete 
electronic submission of written assurances under proposed Sec.  
29.24(d)(2) as well as any and all State and local State laws, 
requirements of a State CTE Agency, and any other agency that 
administers Perkins CTE programs in the State for which there may be 
additional requirements that apply. The Department recognizes that 
intermediaries, depending upon the organization or entity designated, 
may need to coordinate with partnering educational institutions and 
agencies to share applicable registered CTE apprenticeship information, 
in compliance with section 444 of the General Education Provisions Act, 
as amended, commonly known as the Family Educational Rights and Privacy 
Act of 1974 (FERPA), to meet the proposed requirements of this part. 
The Department is interested in hearing from potential registered CTE 
apprenticeship intermediaries about the potential challenges and 
opportunities for meeting requirements of a program sponsor in this 
part and the role Registration Agencies and State CTE Agencies may play 
to facilitate an intermediary's participation in this new model.
Sec.  29.24(d)(4) Sponsor Standards Adoption Agreements
    Proposed Sec.  29.24(d)(4) follows the entirety of proposed Sec.  
29.11 in subpart A and would prescribe the content and operational 
requirements for a written sponsor standards adoption agreement, as 
defined in proposed Sec.  29.2, between a sponsor and a participating 
employer that is reached outside of a collective bargaining process. 
The Department believes this addition would be critical for the 
registered CTE apprenticeship model because employers are not eligible 
sponsors of this model. Given the vital role employers play in 
providing the on-the-job training in both the registered apprenticeship 
and registered CTE apprenticeship model, it is important that an 
adoption agreement for employers is developed. The Department notes 
that the main difference in subpart B is the name of the agreement, so 
the regulated community can distinguish between the agreements an 
employer signs for subpart A (a program standards adoption agreement) 
and the agreement an employer signs for subpart B (a sponsor standards 
adoption agreement). Agreements between the sponsors of a registered 
CTE apprenticeship program and an individual employer that participates 
in that sponsor's program would be required under this proposal for 
registered CTE apprenticeship. The Department believes that the 
inclusion of a regulatory provision expressly obligating participating 
employers to comply with the sponsor's standards of registered CTE 
apprenticeship and to adhere to the requirements contained in 29 CFR 
parts 29 and 30 would serve to bolster registered CTE apprenticeship 
program accountability and integrity and protect the safety and welfare 
of CTE apprentices. Because a participating employer in a sponsor's 
group program will typically be the entity that employs and pays wages 
to CTE apprentices enrolled in a registered CTE apprenticeship program, 
and that also typically provides close on-the-job direct supervision 
and training to such individuals, it follows that such employers should 
be obligated to adhere to the same standards of CTE apprenticeship and 
regulatory obligations as the sponsor of the program so that 
apprentices are protected and receive the full benefit of the program.
Sec.  29.24(e) CTE Apprenticeship Agreement
    As with registered apprenticeship, the Department views the formal 
apprenticeship agreement between a program sponsor and a CTE apprentice 
as a foundational element of registered CTE apprenticeship that 
protects the welfare of CTE apprentices by clarifying the terms and 
conditions of the program in which they intend to participate, and by 
serving as a verifiable record of such terms and conditions. The 
Department views the apprenticeship agreement as holding equal value 
and importance under each model, and accordingly has proposed 
provisions in subpart B that largely mirror the apprenticeship 
agreement provisions in subpart A, with some minor adjustments or 
revisions that reflect the relevant entities and context for registered 
CTE apprenticeship programs. As with registered apprenticeship, the 
Department views CTE apprenticeship agreements as a critical tool for 
protecting CTE apprentices' welfare by establishing transparency and 
accountability. Further, the Department recognizes that the success of 
efforts to expand registered apprenticeship, including through the 
creation of this newly proposed registered CTE apprenticeship model, 
depends in part on the effective communication of the benefits of CTE 
apprenticeship and what CTE apprentices can expect to achieve in terms 
of their career development through participation in a registered CTE 
apprenticeship program. The Department views the CTE apprenticeship 
agreement as an important tool not only for holding all parties 
accountable to a program's agreed-upon terms and conditions, but also 
as a tool to succinctly explain the purpose, benefits, and intended 
outcomes of a registered CTE apprenticeship program. For registered CTE 
apprenticeship, clarifying the shape and value of such outcomes, and 
the program's training and instruction plan for achieving such 
outcomes, is critical for explaining the potential value of this new 
apprenticeship model and encouraging enrollment in any newly created 
registered CTE apprenticeship programs.
    Proposed Sec.  29.24(e)(1) mirrors the proposed regulatory text at 
proposed Sec.  29.9(a) and would establish that all registered CTE 
apprenticeship programs must develop an apprenticeship agreement 
containing the terms and conditions of the training and instruction 
plan for CTE apprentices. The proposed text at Sec.  29.24(e)(1) 
differs slightly in that it would require that the agreement include 
the program's terms and conditions for education of registered CTE 
apprentices, in addition to the employment and training of apprentices 
contained at proposed Sec.  29.9(a). This reflects the educational 
context of registered CTE apprenticeship, including the entities the 
Department expects would establish and participate in such programs, 
and the model's increased focus on education and classroom learning.
    Proposed Sec.  29.24(e)(1)(i) through (v) would establish the list 
of parties that must sign the apprenticeship agreement for registered 
CTE apprenticeship programs. These parties would include the CTE 
apprentice (proposed paragraph (e)(1)(i)), the CTE apprentice's parent 
or legal guardian if the CTE apprentice is

[[Page 3206]]

under 18 years of age (proposed paragraph (e)(1)(ii)), the sponsor 
(proposed paragraph (e)(1)(iii)), the secondary or postsecondary 
educational institution where the CTE apprentice is enrolled (proposed 
paragraph (e)(1)(iv)), and any employers participating in the 
registered CTE apprenticeship program that have adopted or agreed to 
the sponsor standards adoption agreement (proposed paragraph 
(e)(1)(v)). These parties would reflect the same list as the parties 
that must sign the apprenticeship agreement for registered 
apprenticeship programs at proposed Sec.  29.9(a)(1) through (4), with 
one addition that reflects the educational context of the registered 
CTE apprenticeship program (the proposed requirement at Sec.  
29.24(e)(1)(iv) that the secondary or postsecondary institution sign 
the agreement for registered CTE apprenticeship). The Department views 
educational institutions as critical partners in the development and 
success of registered CTE apprenticeship, given that the Department 
envisions that this model would complement and build upon established 
CTE programs, curricula, and networks. The Department proposes to 
include educational institutions as required signatories for 
apprenticeship agreements to extend the transparency and accountability 
the agreement would establish to these partners. Further, as discussed 
earlier, enrollment as a student in a CTE program in a secondary or 
postsecondary institution is a proposed requirement to participate as a 
registered CTE apprentice, and the Department expects that requiring 
such institutions to sign apprenticeship agreements would further 
confirm and clarify participants' eligibility.
    Proposed Sec.  29.24(e)(2) would provide that the signed 
apprenticeship agreement (which includes the program standards for the 
registered CTE apprenticeship program) must be provided to the CTE 
apprentice and their parent or legal guardian, as applicable, prior to 
the apprenticeship's start date. This provision largely reflects the 
proposed requirement at proposed Sec.  29.9(b), but would intentionally 
include the CTE apprentice's parent or legal guardian as parties who 
must receive the agreement prior to the start of the apprenticeship 
term. This difference between the recipients of the apprenticeship 
agreement at proposed Sec.  29.9(b) and proposed Sec.  29.24(e)(2) 
reflects the school-aged population (secondary or postsecondary 
students) that may participate in registered CTE apprenticeship 
programs, and the importance of keeping their parents or legal 
guardians informed of the terms and conditions of this new career 
development opportunity for their child or dependent, including the 
hourly demands it will place on the students' schedules, assurances of 
the safe and welcoming environment the student would encounter through 
the program, and what their child or dependent can expect to receive 
through participating in the program to support their professional 
development.
    Proposed Sec.  29.24(e)(3)(i) through (xvi) would list 16 elements 
that apprenticeship agreements must contain for registered CTE 
apprenticeship, and this list of elements mirrors the elements that 
must be contained in apprenticeship agreements for registered 
apprenticeship at proposed Sec.  29.9(c)(1) through (16). Proposed 
Sec.  29.24(e)(3)(i) and (ii) would provide that apprenticeship 
agreements for registered CTE apprenticeship programs must include 
contact and identifying information for CTE apprentices (including date 
of birth and, on a voluntary basis, their Social Security number) and 
contact information for the Registration Agency, sponsor, and any 
participating employers. While the Social Security number is not 
required to be reported to the Registration Agency, it will need to be 
provided to the employer. These elements would mirror the required 
elements for the apprenticeship agreements in registered apprenticeship 
at proposed Sec.  29.9(c)(1) and (2) and would ensure that the 
apprenticeship agreement is a reliable source for up-to-date contact 
information for those individuals participating in registered CTE 
apprenticeship programs, and those parties involved in registering, 
overseeing, and operating a program.
    Proposed Sec.  29.24(e)(3)(iii) would contain some differences from 
its companion provision at proposed Sec.  29.9(c)(3). For registered 
CTE apprenticeship, the Department proposes that the apprenticeship 
agreement must include the identification of the job or occupation the 
CTE apprentice will be employed in, as well as the industry skills 
framework and CTE apprenticeship-related instruction outline that 
underpin the program's alignment with an established CTE course of 
study and a career readiness framework (in the context of registered 
CTE apprenticeship, this is known as the industry skills framework). 
These elements would mirror the related instruction and work process 
schedule for registered apprenticeship (the subject of proposed Sec.  
29.9(c)(3)) and the Department is including the relevant terminology at 
proposed Sec.  29.24(e)(3)(iii) for clarity regarding which terminology 
applies within each model.
    Proposed Sec.  29.24(e)(3)(iv) would provide that the 
apprenticeship agreement includes the program's standards for the 
registered CTE apprenticeship and would mirror the proposed regulatory 
text at proposed Sec.  29.9(c)(4) for apprenticeship agreements in 
registered apprenticeship. Proposed Sec.  29.24(e)(3)(v) would mirror 
the proposed regulatory text at proposed Sec.  29.9(c)(5) and would 
provide that apprenticeship agreements under the registered CTE 
apprenticeship model must describe the roles, duties, and 
responsibilities of CTE apprentices, sponsors, and participating 
employers. As with proposed Sec.  29.9(c)(5), proposed Sec.  
29.24(e)(3)(v) would stipulate that any employers participating in 
registered CTE apprenticeship programs must provide CTE apprentices 
with information about their rights and protections under Federal, 
State, and local labor laws and the process for filing complaints with 
the relevant Registration Agency. The reasons for these proposed 
requirements in the CTE apprenticeship agreement are the same as for 
the apprenticeship agreement under subpart A.
    Proposed Sec.  29.24(e)(3)(vi) would provide that the 
apprenticeship agreement must provide the beginning and expected end 
date for the term of the CTE apprenticeship, as well as the date when 
on-the-job training will begin. This differs from the requirement at 
proposed Sec.  29.9(c)(6), which would require that apprenticeship 
agreements for registered apprenticeship programs provide the beginning 
dates for the program overall, the beginning date for on-the-job 
training, and the duration of the probationary period for the program. 
Regarding the probationary period, this proposal would provide that 
apprenticeship agreements for registered CTE apprenticeship programs 
must include a description of the program's probationary period and 
would stipulate that such period may not exceed 30 days. The Department 
is proposing to take a slightly different approach to probationary 
periods under the registered CTE apprenticeship model and recognizes 
that allowing a probationary period that lasts longer than 30 days 
would not serve the best interests of CTE apprentices. Apprentices in 
registered CTE apprenticeship programs must also enroll in an 
established CTE program, while job seekers considering participating in 
a registered apprenticeship program are not so connected to the program 
or occupation

[[Page 3207]]

via other established enrollments. Accordingly, the Department believes 
that the probationary period for registered apprenticeship programs 
should be more flexible and subject to the sponsor's discretion, while 
the probationary period for registered CTE apprenticeship programs 
should have a shorter maximum length and should reflect that the CTE 
apprentice is firmly established in the job training program and course 
of study via multiple agreements and enrollments.
    Proposed Sec.  29.24(e)(3)(vii) concerns wages paid to CTE 
apprentices and contains some differences from the apprenticeship 
agreement section for wages in registered apprenticeship at proposed 
Sec.  29.9(c)(7). Proposed Sec.  29.24(e)(3)(vii) would require the 
apprenticeship agreement include the entry wage and graduated scale of 
increasing wages for registered CTE apprentices, as would be required 
at proposed Sec.  29.9(c)(7), but would not include the ``journeyworker 
wage'' nor the ``fringe benefits'' information that would be required 
at proposed Sec.  29.9(c)(7). The Department is not proposing any wage 
requirements tied to journeyworker wages in registered CTE 
apprenticeship programs. The CTE apprenticeship model's focus is on 
industry skills frameworks, and thus reflects an inherent flexibility 
in terms of a program's relation to several occupations, rather than 
just a single occupation as in registered apprenticeship. Thus, the 
Department does not view the journeyworker wage in an occupation as 
relevant to the apprenticeship agreement for registered CTE 
apprenticeship.
    Proposed Sec.  29.24(e)(3)(viii) would provide that the 
apprenticeship agreement must contain the allocation of hours between a 
registered CTE apprenticeship program's on-the-job training component 
and CTE apprenticeship-related instruction component, mirroring 
proposed Sec.  29.9(c)(8) with the slight adjustment of the term ``CTE 
apprenticeship-related instruction.''
    Proposed Sec.  29.24(e)(3)(ix) would provide that the 
apprenticeship agreement must explain the methods used over the course 
of the registered CTE apprenticeship program to measure CTE 
apprentices' attainment of competencies, which differs slightly from 
the requirement at proposed Sec.  29.9(c)(9) that would also include 
measuring the apprentice's progress towards acquiring the competencies 
necessary for a registered apprenticeship program's end-point 
assessment. As discussed above, the Department has determined that end-
point assessments will be a useful tool for measuring and affirming 
apprentices' proficiency in registered apprenticeship programs; 
however, such assessments would not be appropriate for the registered 
CTE apprenticeship model. The latter model is based on providing 
training and instruction within a broader scope of career readiness 
than the registered apprenticeship model, which focuses more acutely on 
proficiency within a specific occupation and aligns with an end-point 
assessment measuring such occupational proficiency. As such, the 
Department's proposed model for registered CTE apprenticeship does not 
include an end-point assessment and would grant registered CTE 
apprenticeship programs more flexibility in designing program 
completion measures that apply to the program's associated career 
pathways.
    Proposed Sec.  29.24(e)(3)(x) would mirror the proposed regulatory 
language at Sec.  29.9(c)(10) and would provide that, under both 
models, the apprenticeship agreement should describe any supportive 
services available to apprentices or CTE apprentices. These may include 
childcare services, transportation stipends or reimbursement programs, 
equipment or tools, or other supportive services under both models. 
This reflects the Department's consideration of advice from 
apprenticeship stakeholders, including the ACA, that the provision of 
supportive services is an important factor in addressing barriers to 
participation, particularly for underserved communities, individuals in 
rural communities, and individuals who face challenges or bear 
responsibilities for providing dependent care during typical working 
hours. The Department requests comment on whether registered CTE 
apprenticeship programs should be required to provide CTE apprentices 
with access to supportive services.
    Similarly, proposed Sec.  29.24(e)(3)(xi) would mirror the 
requirement at proposed Sec.  29.9(c)(11) that apprenticeship 
agreements contain a description of the nature and amount of any 
unreimbursed costs associated with a program. As discussed above, the 
Department is concerned about excessive or undue participation costs 
and the burden they place on job seekers seeking to improve their 
career readiness through participation in a registered CTE 
apprenticeship program. The Department therefore proposes that 
registered CTE apprenticeship programs disclose all participation costs 
in the apprenticeship agreement so that CTE apprentices are not faced 
with unexpected costs once they have taken steps to participating in a 
registered CTE apprenticeship program.
    To further its goal of establishing transparency throughout all 
apprenticeship programs registered for Federal purposes (including 
registered apprenticeship programs and registered CTE apprenticeship 
programs), the Department proposes to require that apprenticeship 
agreements under both models must include a description of any 
credentials, secondary credits, or postsecondary credit hours conferred 
upon participants who progress through the program. However, the 
Department expects that registered CTE apprenticeship programs may not 
provide the same breadth of credentials as a registered apprenticeship 
program more closely aligned with a specific occupation. Accordingly, 
the proposed regulatory text at proposed Sec.  29.24(e)(3)(xii) would 
differ slightly from the proposed regulatory text at Sec.  29.9(c)(12) 
in that the former would not refer to ``occupational qualifications,'' 
nor would it refer to other conditions or requirements that may be 
related to attaining an occupational qualification or licensure under 
Federal, State, or local laws or requirements. The Department expects 
that registered CTE apprenticeship programs would confer equally 
valuable credentials to registered CTE apprentices, in particular 
secondary credits or at least 12 postsecondary educational credit hours 
that may accelerate their progress through an educational curriculum or 
career development program. As such, for CTE apprenticeship agreements, 
the Department proposes that registered CTE apprenticeship programs 
include descriptions of the ``secondary or postsecondary credits or 
credentials'' associated with completing the program.
    Proposed Sec.  29.24(e)(3)(xiii) would provide that apprenticeship 
agreements for the registered CTE apprenticeship model must include an 
affirmation from all parties that they will adhere to the applicable 
requirements of parts 29 and 30 governing registered apprenticeship and 
EEO in registered apprenticeship. This language would mirror the 
proposed regulatory text at proposed Sec.  29.9(c)(13) and would 
reflect the Department's reiteration that, except when explicitly 
stated otherwise, the requirements of parts 29 and 30 would apply to 
any apprenticeship program registered for Federal purposes.
    Proposed Sec.  29.24(e)(3)(xiv) would require a statement 
addressing whether the CTE apprentice is paid wages and benefits during 
the CTE apprenticeship-related instruction component of the

[[Page 3208]]

program and, if so, what the wage rate is, and whether the CTE 
apprenticeship-related instruction is provided during work hours. This 
requirement would be the same as the proposed requirement in Sec.  
29.9(c)(14) that the apprenticeship agreement specify whether CTE 
apprenticeship-related instruction is compensated; however, it would 
more precisely require that the apprenticeship agreement address both 
wages (i.e., not some other form of compensation) and whether CTE 
apprenticeship-related instruction occurs during work hours. This would 
provide notice to the CTE apprentice of whether to expect CTE 
apprenticeship-related instruction to occur on their own time and, 
regardless of when CTE apprenticeship-related instruction takes place, 
whether it is paid and at what rate. The Department acknowledges that, 
under the registered CTE apprenticeship model, the CTE program would be 
the primary form of CTE apprenticeship-related instruction and less 
likely to result in a CTE apprentice receiving wages. The Department 
encourages, where possible, registered CTE apprenticeship models in 
which employers invest in their CTE apprentices with wages or fringe 
benefits paid during CTE apprenticeship-related instruction. As 
discussed in proposed paragraph (c)(2) sponsors must consider, as a 
part of their programs' standards of registered CTE apprenticeship, 
whether to pay wages for CTE apprenticeship-related instruction. Since 
registered CTE apprenticeship is an ``earn-and-learn'' model, this 
provision would provide transparency to the CTE apprentice about when 
and what wages would be received, and during what component(s) of the 
program. This provision would also make transparent a schedule of paid 
and unpaid time an CTE apprentice is expected to be present to fulfill 
learning and worksite productivity objectives when attending CTE 
apprenticeship-related instruction and on-the-job training. Making this 
information available to CTE apprentices for transparency purposes 
would provide apprentices with the necessary information to make 
financial decisions, seek out resources or supportive services through 
a program sponsor to attend CTE apprenticeship-related instruction or 
compensate costs incurred, and manage time to accommodate 
responsibilities, such as providing care to family members.
    Proposed Sec.  29.24(e)(3)(xv) would mirror the proposed regulatory 
language at proposed Sec.  29.9(c)(15) and would require that 
apprenticeship agreements for registered CTE apprenticeship contain the 
contact information of those individuals or entities designated by the 
program to receive, review, and address any controversies or complaints 
that may arise. The Department expects that CTE apprentices would 
benefit from the clarity of understanding the process for filing, 
reviewing, and resolving complaints, and as such, is including proposed 
regulatory language to include contact information related to the 
program's complaint process for both registered apprenticeship and 
registered CTE apprenticeship.
    Proposed Sec.  29.24(e)(3)(xvi) would require the apprenticeship 
agreement to include the consent of the CTE apprentice, or their parent 
or guardian if the CTE apprentice is under 18 and not in attendance at 
a postsecondary institution, permitting the secondary or postsecondary 
institution in which the CTE apprentice is enrolled as a student to 
disclose individual apprentice level information to the program 
sponsor, to the entity designating any intermediary organization as a 
sponsor, to participating employers, to the Registration Agency and the 
Department, if OA is not the Registration Agency, and to and any other 
institution involved in administering the registered CTE apprenticeship 
program, as would be required under proposed subpart B of this part. 
Secondary and postsecondary institutions that receive Federal education 
funds under a program administered by ED must comply with FERPA. FERPA 
requires, among other things, that a parent of a student, or an 
``eligible student'' (namely, a student who is 18 years of age or older 
or in attendance at a postsecondary institution at any age), provide 
prior written consent before an educational institution discloses 
personally identifiable information from the student's education 
records, unless an exception to FERPA's general written consent 
requirement applies. This provision would ensure that secondary or 
postsecondary institutions can meet their obligations under FERPA and 
disclose individual apprentice level information as required under the 
registered CTE apprenticeship program.
    Proposed Sec.  29.24(e)(4) would mirror the proposed regulatory 
text at proposed Sec.  29.9(d) that would prohibit registered 
apprenticeship program sponsors from including any non-compete 
provisions or other provisions that would serve to restrict an 
apprentice's labor market mobility. The Department views this proposed 
prohibition of non-compete and other restrictive labor clauses as a key 
reform in this proposed update to the part 29 regulations and seeks to 
apply this prohibition to any apprenticeship programs registered for 
Federal purposes. Given the nature of the registered CTE apprenticeship 
model's outcomes being designed for placement in employment, a 
postsecondary educational program, or a registered apprenticeship 
program under subpart A, the Department does not expect non-compete 
provisions would be as likely as in registered apprenticeship programs 
under subpart A. Nevertheless, the Department expects that this 
important worker protection would maximize the potential benefits of 
apprenticeship training for all participants, whether they are 
students, job seekers seeking to receive training in a specific 
occupation, or experienced workers seeking to change careers. As such, 
the Department proposes including the prohibition on non-compete and 
other restrictive labor clauses in the apprenticeship agreements 
section for registered CTE apprenticeship.
    Similarly, at proposed Sec.  29.24(e)(5), the Department proposes 
to apply the same prohibition against non-disclosure provisions from 
the proposed Sec.  29.9(e) covering apprenticeship agreements for 
registered apprenticeship programs. The Department sees no reason to 
exempt registered CTE apprenticeship programs from these proposed 
prohibitions on clauses that would serve to restrict an apprentice's 
labor market mobility and future success finding employment. On the 
contrary, CTE apprentices who receive training and instruction via an 
industry skills framework, potentially covering multiple occupations, 
are potentially more at risk of suffering career consequences via the 
inclusion of such clauses given that they are at an early stage of 
their careers and would not be well-served by any restriction on the 
employers or occupations they may wish to pursue.
    Finally, proposed Sec.  29.24(e)(6) would mirror the proposed 
requirement at proposed Sec.  29.9(f) and would stipulate that 
registered CTE apprenticeship program sponsors must submit a completed 
copy of the executed apprenticeship agreement for each individual 
apprentice it registers for participation in its program to the 
Registration Agency within 30 days of the execution of the agreement. 
In this NPRM's preamble section-by-section discussion at proposed Sec.  
29.9(f), the Department explains that the proposed 30-day timeframe for 
submitting executed apprenticeship agreements to the Registration 
Agency would be a reduction from existing policy (from 45 days to 30 
days) in the amount of time a sponsor has to submit agreements, and

[[Page 3209]]

that this proposed timeframe would be reasonable given the advancements 
in technology that enable streamlined submission of apprenticeship 
agreements via the RAPIDS system. The Department expects that these 
same technological advancements would facilitate the submission of 
apprenticeship agreements for registered CTE apprenticeship programs 
and proposes to align the timelines for submitting apprenticeship 
agreements under both models.
    The Department invites comments from the public on all aspects of 
the apprenticeship agreement requirements for registered CTE 
apprenticeship programs, including whether any of the apprenticeship 
agreement elements from proposed Sec.  29.9 (applying to registered 
apprenticeship programs) should not apply to registered CTE 
apprenticeship, or whether the Department should apply different 
parameters based on the differences between these two models of 
registered apprenticeship, or whether additional elements should be 
added.
Sec.  29.24(f) Certificate of Completion of Registered CTE 
Aprenticeship
    Proposed Sec.  29.24(f) provides that Registration Agencies would 
issue certificates of completion of registered CTE apprenticeship to 
CTE apprentices who complete all of the requirements of the program. 
This proposal is similar to the Certificate of Completion Registration 
Agencies would issue to apprentices in registered apprenticeship 
programs in subpart A. These Certificates of Completion are important 
milestones for all apprentices and help to signify their value in the 
job market and opportunities for advancement in their career. The 
Department envisions registered apprenticeship programs in subpart A 
would consider providing advanced standing as described in Sec.  29.8 
to CTE apprentices who complete a registered CTE apprenticeship program 
and can demonstrate their completion with a certificate of completion 
of registered CTE apprenticeship.
Sec.  29.24(g) Administrative Requirements of the Registration Agency
    Proposed Sec.  29.24(g) contains the provisions related to the 
administrative requirements for Registration Agencies operating 
Registered CTE apprenticeship programs. This section is designed to 
address the core duties of Registration Agencies and their roles and 
responsibilities in the registered CTE apprenticeship model. Included 
in this are key provisions related to technical assistance and 
registration of programs, establishment of a compliant process for CTE 
apprentices, the operation of program reviews, deregistration 
processes, the recognition of Registration Agencies, data collection 
and metrics from programs, and program exemptions.
    Proposed Sec.  29.24(g)(1) would provide the process that the 
Registration Agency uses when it receives an application from a 
prospective program sponsor. Similar to subpart A, the Registration 
Agency must make a determination within 90 days of the receipt of a 
complete application as to whether the program has met the requirements 
of this subpart and is eligible for program registration. The 
Registration Agency would be responsible for informing applicants in 
writing of all decisions regarding the program registration. 
Additionally, if programs are denied approval for registration, the 
reasons for the denial must be explained in writing. These provisions 
would help to ensure a transparent process for sponsors and 
Registration Agencies for the review and approval of programs.
    Proposed Sec.  29.24(g)(2) is a provision on the role of 
Registration Agencies in providing technical assistance and other 
support, including outreach, technical assistance, and other assistance 
such as referrals to registered apprenticeship programs under subpart A 
to sponsors or other potential partners to support the adoption and 
expansion of registered CTE apprenticeship programs in a State.
    Proposed Sec.  29.24(g)(3) would provide a provision for CTE 
apprentice complaints similar to what the Department has proposed for 
registered apprenticeship programs in subpart A at proposed Sec.  
29.17. The Department anticipates that complaints arising under the 
registered CTE apprenticeship model would undergo a similar process to 
complaints submitted by apprentices under subpart A, and the discussion 
of that process is described in Sec.  29.17. Though this section cites 
to Sec.  29.17 for this process, the Department is proposing one 
difference, which would provide that the Registration Agency may refer 
complaints to the State CTE Agency as appropriate. Due to the close 
coordination with the State CTE Agencies envisioned under this proposed 
subpart, the Department anticipates that some complaints filed with the 
Registration Agency may be better addressed through a referral to the 
State CTE Agency. For example, a CTE apprentice who has a concern about 
their CTE program may submit a complaint to the Registration Agency. In 
those instances, and depending on the nature of the complaint, the 
Department believes that the CTE apprentice's issue may be best 
addressed by the State CTE Agency. The Department envisions that the 
process for such referrals may be addressed in the written agreement 
between the Registration Agency and the State CTE Agency proposed in 
paragraph (a). The Department welcomes any comments on the value of a 
proposed alignment of complaint provisions with subpart A, or if any 
other processes or deviations other than the one discussed above should 
be considered.
    Proposed Sec.  29.24(g)(4) would provide for the conduct of program 
reviews to confirm the Registration Agency can ensure the program is 
operating in compliance with this subpart. The Department, under 
paragraph (g)(4)(i), is proposing to utilize the process described in 
proposed Sec.  29.19 in subpart A for the process and conduct of 
program reviews by a Registration Agency. Proposed paragraph (g)(4)(ii) 
would provide that the reviews should be coordinated between the 
Registration Agency and the State CTE Agency, the process for which 
would be addressed in the written agreement described in paragraph (a). 
The Department envisions that examples of quality program reviews may 
include the State CTE Agency reviewing the CTE portions of the program 
while the Registration Agency reviews the labor standards. The 
Department is allowing flexibility on how this is coordinated but does 
expect a strategy or agreement to be included in the written agreement 
described in paragraph (a). Proposed paragraph (g)(4)(iii) provides 
clarity that program reviews under this subpart would not impact an 
entity's eligibility under, or compliance with, the Perkins programs. 
This provision is to make clear that the Registration Agency's 
authority is limited to the registration of the program and would not 
extend to determining eligibility for CTE funding. Perkins CTE programs 
would not be governed by this subpart, but rather must meet the 
requirements of the Perkins statute as administered by ED. The 
Department welcomes comments on the alignment of program review 
provisions, including about the goal of a joint review process with the 
State CTE Agency. The current proposal encourages the idea of 
concurrent reviews but is proposing to provide flexibility to 
Registration Agencies and State CTE Agencies to address that process or 
alternatives as part of the written agreement in paragraph (a).
    Proposed Sec.  29.24(g)(5) would provide for the deregistration of 
programs that fail to meet the requirements of this subpart. The 
ability to deregister

[[Page 3210]]

programs for noncompliance with this subpart and part 30 is critical to 
the effective oversight of registered apprenticeship programs both 
under subparts A and B. Provided that the Department is proposing a 
registration process for programs that meet the requirements of this 
subpart and part 30, a deregistration process is necessary for those 
that do not continue to meet those requirements. The process for the 
deregistration of programs would be the same as the process in proposed 
Sec.  29.20 of subpart A. The Department envisions, similar to the 
process in subpart A, that a program review would occur to ascertain a 
sponsor's compliance with this subpart and part 30. The Department 
welcomes any comments on the alignment of deregistration proceedings, 
and the goals of aligning processes, where possible, with subpart A.
    Proposed Sec.  29.24(g)(6) would provide the same hearings process 
as described in proposed Sec.  29.21 in subpart A. Given that both 
models of registered apprenticeship under subparts A and B have similar 
processes for registration, review, and deregistration, the Department 
is proposing to align this process for hearings. The Department 
welcomes any comments on the proposed alignment of this process with 
subpart A, particularly regarding if any deviations would provide 
administrative efficiencies.
    Proposed Sec.  29.24(g)(7) would provide the same hearings on 
deregistration process proposed in Sec.  29.21 of subpart A. As 
described throughout this paragraph, the Department is proposing to 
align administrative processes as much as possible to minimize parallel 
processes for the registration, review, data collection, and oversight 
of registered CTE apprenticeship programs with registered 
apprenticeship programs in subpart A.
    Proposed Sec.  29.24(g)(8) would provide for the process of 
recognizing Registration Agencies for registered CTE apprenticeship. 
Registration Agencies would be responsible for the registration of CTE 
apprenticeship programs, which would provide opportunities to build 
alignment between registered apprenticeship programs in subpart A and 
registered CTE apprenticeship programs. Registration Agencies may be OA 
or a recognized SAA. Given the proposed requirement in paragraph (a) 
that there be a written agreement between the State CTE Agency and the 
Registration Agency, the Department does not anticipate considering 
National Program Standards for Apprenticeship, as proposed in subpart 
A, as an option for this model. One of the primary goals of this 
rulemaking is to bring greater alignment between registered 
apprenticeship models with State and local education systems. The 
Department envisions this localized alignment would result in quality 
program design tailored to local economies. As such, OA is only 
considering local registration by the State's respective Registration 
Agency. The Department is open to comments on national program 
registration models, and whether that could ensure alignment with State 
and local educational systems.
    The Department clarifies that adopting the requirements of subpart 
B would not be a requirement for an SAA to obtain or maintain 
recognition as a Registration Agency and SAA. The Department 
acknowledges the unique requirements and partnerships needed at the 
State and local level to develop quality registered CTE apprenticeship 
programs and would not condition an SAA's recognition to register 
apprenticeship programs under subpart A of this part on a requirement 
that they must also register programs described in this subpart.
    Proposed Sec.  29.24(g)(8)(i) would identify the circumstances in 
which OA may serve as the Registration Agency in a particular State. OA 
may serve as the Registration Agency in States where the OA 
Administrator has not recognized an SAA in the State, and there is a 
written agreement between OA and the State CTE Agency, as described in 
paragraph (a), for the registration of CTE apprenticeship programs in 
the State. Under this proposal, OA would not serve as a Registration 
Agency in States that have a recognized SAA or if there is not a 
written agreement with the State CTE Agency. Given the importance of 
aligning the State's education system with this model, the Department 
does not anticipate the registration of programs in States that do not 
develop written agreements with OA or do not have a recognized SAA.
    Proposed Sec.  29.24(g)(8)(ii)(A) through (D) would provide the 
process by which SAAs may seek recognition for the registration of CTE 
apprenticeship programs. The Department is proposing to limit the 
ability to be a Registration Agency to those entities that are 
Registration Agencies for the purposes of registering apprenticeship 
programs under subpart A. This would ensure alignment at the State 
level by providing that entities approving registered apprenticeship 
programs under subpart A are the same entities approving registered CTE 
apprenticeship programs under subpart B. This would help ensure greater 
alignment in program design, technical assistance, and administrative 
procedures and minimize redundancies at the State level for the 
registration of programs. SAAs recognized or seeking recognition under 
subpart C of this proposed rule would be recognized as Registration 
Agencies for CTE apprenticeship if they meet the criteria described in 
proposed paragraphs (g)(8)(ii)(A) through (D).
    Proposed Sec.  29.24(g)(8)(ii)(A) would provide that the State's 
proposed or current apprenticeship laws for registered CTE 
apprenticeship meet or exceed the requirements for protecting the 
safety and welfare of CTE apprentices set forth in subpart B. This is 
the same standard that is being proposed for SAAs seeking recognition 
under subpart C. The proposed regulations are designed to set the 
minimum standards for registration, and SAAs may adopt requirements 
that include more protections for CTE apprentices in their laws.
    Proposed Sec.  29.24(g)(8)(ii)(B) would provide that the SAA must 
have entered into a written agreement with the respective State CTE 
Agency as described in paragraph (a), which outlines the required 
coordination between the respective agencies, including roles and 
responsibilities. This requirement would allow the Administrator to be 
sure that necessary coordination is occurring at the State level.
    Proposed Sec.  29.24(g)(8)(ii)(C) would provide that the State has 
submitted its relevant apprenticeship laws and CTE engagement 
strategies as part of its State Apprenticeship Plan submitted according 
to proposed Sec.  29.27 in subpart C. This may be done concurrently as 
the State government agency is seeking recognition under subpart C for 
the purposes of registering apprenticeship programs under subpart A, or 
may be submitted as a modification to a State Apprenticeship Plan 
according to the criteria for modifications outlined in proposed Sec.  
29.27(a)(2).
    Proposed Sec.  29.24(g)(8)(ii)(D) would provide that the 
Administrator must approve concurrently, or have previously approved, 
the State government agency for recognition as an SAA under proposed 
Sec.  29.27. This is designed to ensure that State government agencies 
would not be recognized for registering apprenticeship programs under 
subpart B without being approved to register programs for subpart A. 
The Department discussed previously that it believes it is critical 
that the Registration Agency for a particular State must be approved to 
register apprenticeship programs for subpart A purposes in order to be 
able

[[Page 3211]]

to register programs for subpart B purposes. However, a State 
government agency may serve as an SAA only for the purposes of 
registering apprenticeship programs for subpart A.
    Proposed Sec.  29.24(g)(9) is a provision related to the collection 
of data and quality metrics concerning registered CTE apprenticeship 
programs. The Department is largely proposing to align the data 
collection from sponsors and SAAs consistent with the requirements 
described in proposed Sec.  29.25 of subpart C. The Department 
anticipates utilizing RAPIDS as the primary database and case 
management system for the collection and reporting of data on 
registered CTE apprenticeship programs and apprentices. The Department 
welcomes comments on the data collection for registered CTE 
apprenticeship, the proposed alignment with proposed Sec.  29.25, and 
the key differences discussed below in data collection. Collectively, 
the Department envisions that a comprehensive data set and the 
alignment of reporting across both models of registered apprenticeship 
in this proposed rule will enable the Department to provide robust 
technical assistance to support stakeholders' compliance with these 
regulations.
    Proposed Sec.  29.24(g)(9)(i) is a provision for the collection of 
CTE apprentice information. The information being proposed to be 
collected is largely consistent with apprentice information that would 
be collected for apprentices under subpart A as described in proposed 
Sec.  29.25(a). The discussion of those provisions is discussed in the 
preamble for Sec.  29.25(a). The Department is proposing a consistent 
collection here with a few exceptions. For registered CTE 
apprenticeship under paragraph (g)(9)(i)(A), the Department would 
collect an associated industry skills framework with the program rather 
than the occupation associated with a registered apprenticeship under 
proposed Sec.  29.25(a). This difference is based on the unique 
requirements in subpart B regarding associated industry skills 
frameworks as the basis for training in registered CTE apprenticeship 
rather than occupations suitable for registered apprenticeship. 
Separately, the Department is not proposing to collect pre-
apprenticeship participation information as a regulatory requirement in 
this section because the Department anticipates pre-apprenticeship 
models to be more closely associated with registered apprenticeship 
programs under subpart A.
    Proposed paragraph (g)(9)(i)(B) would provide for sponsors to 
report status updates based on similar changes as discussed in proposed 
Sec.  29.25(a), with the exception that the updates would be made on an 
academic semester basis rather than within 30 days. This is to account 
for the unique nature of this model, and requirement that sponsors be 
largely from the education system.
    Proposed Sec.  29.24(g)(9)(1)(ii) is a provision for the collection 
of program sponsor information and quality metrics that would be 
generally consistent with the proposed program sponsor information 
proposed for collection under Sec.  29.25 for registered apprenticeship 
programs under subpart A. The primary differences are that the program 
sponsor information would be collected for each industry skills 
framework in this section rather than by occupation under proposed 
Sec.  29.25. Additionally, this paragraph proposes collecting 
information on the outcomes of registered CTE apprenticeship, which are 
placement in a registered apprenticeship under subpart A, a 
postsecondary educational program, or employment at the time of program 
completion. Employment for this purpose would mean employment outside 
of the employment associated with a registered apprenticeship program 
under subpart A.
    Proposed Sec.  29.24(g)(9)(iii) is a provision for information and 
reports based on the information collected in paragraph (g)(9)(ii) to 
be made publicly available by the Registration Agency, which would 
align with proposed Sec.  29.25(c). This section also would include 
similar language to proposed Sec.  29.28 regarding the reporting of 
information from SAAs. These provisions would help support a 
comprehensive system data on both models of registered apprenticeship 
envisioned under these proposed regulations.
    Proposed Sec.  29.24(g)(10) would provide for exemptions from the 
subpart B requirements similar to the proposal in Sec.  29.23 of 
subpart A for registered apprenticeship. As described in the preamble 
to proposed Sec.  29.23, such requests would be required to be made in 
writing and transmitted to the Administrator and would also be required 
to contain a statement of the reasons supporting the request. The 
Administrator would only grant an exemption for good cause. Examples of 
good cause can be found in the preamble to proposed Sec.  29.23. The 
Department has added proposed language regarding exemptions that cannot 
be made because they are outside of this subpart, including exemptions 
to requirements provided for in other applicable Federal, State, or 
local laws. For instance, the Administrator cannot consider exemption 
requests from any CTE participation requirements related to a CTE 
program or provisions governing the Perkins programs.

D. Subpart C--Administration and Coordination of the National 
Apprenticeship System

Section 29.25--Collection of Data and Quality Metrics Concerning 
Apprenticeship
    In the 15 years since the registered apprenticeship regulations 
were last updated, advancements in technology and data functionality 
have transformed daily life in the United States and throughout the 
world. These developments include a major expansion of the ability to 
capture, collect, store, and use data. Institutions, businesses, 
governments, and organizations have prioritized the collection, 
application, and analysis of data to capitalize on opportunities to 
improve programs, policies, and outcomes. Within the world of 
registered apprenticeship, significant developments have been made 
since 2008 to keep pace with the increasing significance of data, 
including OA's efforts to develop and refine RAPIDS as a case 
management platform, with the goal of aligning with the growing role of 
data in the daily operations of employers and program sponsors within 
the National Apprenticeship System.
    As part of the Department's effort to modernize data collection and 
reporting capabilities through RAPIDS, significant investments have 
been made to improve functionality and provide access and 
interoperability to SAAs for their data collection and reporting needs. 
The enhanced collection of quality data by Federal agencies is 
supported by the provisions of the Foundations for Evidence-Based 
Policymaking Act of 2018 (Pub. L. 115-435), as well as President 
Biden's January 27, 2021 memorandum on restoring trust in government 
through evidence-based policymaking.\178\ RAPIDS is the case management 
system administered by OA, and it serves as the primary platform for 
program sponsors' management of apprentices, occupations, job openings, 
and other relevant program information. The Department plans to 
continue RAPIDS

[[Page 3212]]

as the primary database and case management system for the foreseeable 
future, but RAPIDS may undergo improvements or be altered over time, 
including to the name and affiliated acronym of such database and case 
management system, to meet the needs of National Apprenticeship System 
stakeholders. Technical assistance will be provided by OA, 
Apprenticeship Training Representatives, and applicable SAA staff as 
needed. This will help facilitate a connection between program sponsors 
using RAPIDS and Registration Agencies. While not a requirement for 
State recognition, SAA States and their sponsors may voluntarily opt to 
use the Department's case management system as a cost-effective 
approach to enable and support the data collection and reporting 
process described in proposed Sec.  29.28(d).
---------------------------------------------------------------------------

    \178\ President Joesph R. Biden, Jr., ``Memorandum on Restoring 
Trust in Government Through Scientific Integrity and Evidence-Based 
Policymaking,'' Jan. 27, 2021, https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/memorandum-on-restoring-trust-in-government-through-scientific-integrity-and-evidence-based-policymaking/.
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    Proposed Sec.  29.25 would formalize the requirements for sponsors 
to report apprentice and sponsor information to their Registration 
Agency and establish a requirement for the Department to make this 
information publicly available in the form of sponsor level and 
national summary reports. In practice, the Department has made 
available related information, but this proposal would provide 
stakeholders with more robust and consistent information about the 
National Apprenticeship System. The Department is interested in 
comments about the benefits of making public more information about the 
performance of registered apprenticeship programs and their benefits to 
apprentices or career seekers while balancing expectations for sponsors 
and apprentices with respect to program burden and privacy. While some 
of this type of reporting currently occurs through approved ICRs (see 
OMB Control Number 1205-0223), the requirements for reporting have not 
been included in regulations in the past and are therefore subject to 
some uncertainty in terms of how the requirements might change from 
year to year. The Department has made significant investments in 
reporting capabilities through RAPIDS, including by making it available 
to SAAs for their reporting and data collection needs. Additionally, 
the increased Federal funding and benefits associated with registered 
apprenticeship programs (such as Apprenticeship grants, WIOA, the 
Davis-Bacon and related Acts, and the IRA) enhance the need to develop 
a more structured, uniform, and accountable reporting structure while 
balancing the burdens associated with collecting this information from 
sponsors, apprentices, and employers. The Department is particularly 
interested in any comments about whether the proposed approach strikes 
the proper balance, if other critical information should be included, 
or if less critical information should be omitted. The Department is 
also interested in any proposed quality measures for Registration 
Agencies or sponsors described below. Lastly, the Department is 
interested in comments on how it can utilize the collection of quality 
participant data and identify effective performance measures at the 
National, State, industry, and occupational level to achieve greater 
equity across and within the National Apprenticeship System.
    Proposed Sec.  29.25(a) would establish the requirements for what 
information about individual apprentices must be collected and reported 
by sponsors to the Registration Agency. Under the current approach, 
this is done primarily through sponsors entering data into the RAPIDS 
system, and the Department anticipates this approach will continue. 
Sponsors in States that do not use the system provided by the 
Department, whether RAPIDS or another system, would use the case 
management system provided by their Registration Agency to collect this 
information. SAA States and their sponsors may voluntarily opt to use 
the Department's case management system as a cost-effective approach to 
enable and support the data collection and reporting process described 
in proposed Sec.  29.28(d). The Department is exploring approaches that 
would allow for apprentices to self-report and update demographic 
information through the mechanisms provided by the Department, which 
would help to meet this requirement. Such mechanisms would allow 
individual apprentices to report to the Department sensitive 
information that they might be hesitant to provide to their employer.
    The collection of individual information included in this proposed 
section would enable substantive program analyses, including cross-
sectional analyses and improved data disaggregation that would serve to 
identify strengths and weaknesses of the National Apprenticeship System 
when it comes to crucial goals like DEIA, identifying best practices, 
increasing economic mobility, and improving performance outcomes. 
Collecting data in this manner in a more uniform way and utilizing a 
system provided by the Department would also reduce the burden of data 
collection on employers and would enable the Department to ensure the 
questions being posed to apprentices are asked in a consistent manner 
during data collection. The Department will follow all applicable laws 
and procedures to ensure data security.
    Improved collection of demographic information would enable the 
Department to better disaggregate demographic data, in addition to 
leveraging such data to develop and track indices relating to equity in 
program access, exit, and completion, which can serve to inform and 
drive improvements towards greater equity in the National 
Apprenticeship System. These goals are not only important to the 
Department, but they are also aligned to the recommendations from the 
ACA on this subject. The Department is interested in comments about the 
Department's and SAAs' ability to collect individualized data and its 
benefits, particularly with regard to the ability to use cross-
sectional analysis of demographic information to ensure that programs 
are operating equitably. The Department is also interested in comments 
discussing information or strategies that would help the Department 
assess the performance of programs in a more standardized manner.
    Additionally, this section would establish that within 30 days of a 
change, in addition to a change of apprentice's status, sponsors must 
also report on the start date of on-the-job training for apprentices, 
changes to credentials attained, employment retention, and wage 
progression. This requirement would enable the Department to more fully 
track an apprentice's progress throughout the program including the 
issuance of licenses, degrees, and the full scope of credentials earned 
through registered apprenticeship programs, as recommended by the ACA. 
This additional information obtained through more regular updates would 
enable better analyses and more complete understanding of programs, 
particularly when it comes to assessments of program quality and 
informing potential apprentices' understanding of what to expect during 
their participation in a program.
    Another benefit of these proposed requirements is that they would 
result in closer alignment between the National Apprenticeship System 
and WIOA, as these updates would ensure that reporting timeframes, 
processes, and many of the definitions are brought into closer 
alignment with the requirements for WIOA programs. By aligning the 
reporting requirements, reporting definitions, and reporting processes 
more closely, States would benefit from efficiency improvements

[[Page 3213]]

and easier cross program collaboration as information collected by one 
program can be collected once and shared rather than similar 
information being collected separately in different ways. More 
congruity between programs and improved information would also enable 
both States and job seekers to make more data-driven decisions. For 
example, collecting data in a similar manner to WIOA's data collection 
can facilitate more direct comparisons between the data on WIOA ETPs 
and registered apprenticeship programs. Aligning this data collection 
would benefit job seekers and potential apprentices by enabling them to 
make informed decisions based on workforce data from these programs. 
This can also be beneficial to employers, as more transparent 
information can lead job seekers to seek out programs that they are 
more likely to stay with long term.
    Proposed Sec.  29.25(b) would establish the requirements for what 
information about sponsors and their programs must regularly be 
collected and reported by sponsors to the Registration Agency. 
Currently, this information is provided to the Department primarily by 
Registration Agencies entering data into the RAPIDS system, and the 
Department is anticipating that approach will continue. This 
information would include data about the sponsor and any participating 
employers. This section is divided into two paragraphs. Paragraph 
(b)(1) focuses on what type of information sponsors must update within 
30 days of a status change, and paragraph (b)(2) describes items that 
must be updated and certified by sponsors on an annual basis. For 
sponsors using the system provided by the Department, whether RAPIDS or 
another system capable of collecting this data should updates be made 
in the future to the Department's IT and reporting systems, the 
Department anticipates that this process would involve sponsors 
ensuring that their data and information in the system are up to date 
and then certifying in that system that the records are current and 
accurate. The Department anticipates that sponsors that are not using 
the system provided by the Department would need to submit and certify 
a report in the system provided by the Department.
    Under proposed Sec.  29.25(b)(2) the Department anticipates the 
annual information being made available to the public to assist job 
seekers in being able to make informed choices about programs, and 
stakeholders would have a greater understanding of the scope, scale, 
and effectiveness of registered apprenticeship programs. This proposal 
would significantly enhance the amount of public information made 
available about registered apprenticeship programs and their outcomes. 
The Department is interested in comments on the appropriate amount of 
information collected and reported for public purposes, taking into 
account any burdens and privacy protections afforded to apprentices or 
programs. In balancing this, the Department is proposing to largely use 
measures that a Registration Agency would be able to calculate on 
behalf of a sponsor, rather than requiring unique measures that may 
require manual tracking.
    One new measure would assist Registration Agencies in seeing if 
programs are exiting significant numbers of apprentices and not 
graduating them, which they can use as the basis for technical 
assistance. This measure, unlike the proposed cohort completion rate, 
would not exclude exiters during the probationary period of the 
program. However, the Department does consider this measure as being 
useful for considering any impacts in program design that lead to 
apprentices not completing their programs once they are apprentices. 
This measure would also align with the Department's ETP reporting under 
WIOA for program completion rates. This measure would be calculated as 
part of the data requirements of proposed Sec.  29.25 and be subject to 
program reviews under proposed Sec.  29.19. The Department is 
interested in any comments on this approach, including whether exits 
during the probationary period should be included and any other 
potential measures.
    Another new measure, proposed Sec.  29.25(b)(2)(viii), would assist 
Registration Agencies in determining the percentage of exiters that 
enter a postsecondary educational program or a career pathway program 
at the time of exit. The purpose of this new measure is to identify the 
extent to which apprentices who have either left a program prior to 
completion or completed a program enter into a postsecondary 
educational program or a career pathway program.\179\ In some non-
traditional industries for which registered apprenticeship programs 
currently exist, such as health care and education, some apprentices 
complete a program, receive a Certificate of Completion, and then 
enroll in a postsecondary educational program or another registered 
apprenticeship to continue education and training that leads to 
corresponding occupations that may provide a higher wage, are along a 
career pathway, and require additional competencies, skills, and 
recognized postsecondary credentials. The Department recognizes that 
the calculation of this metric may yield small percentages since it is 
not common across all industries and suitable occupations for 
apprentices to enroll in a postsecondary educational program or a 
career pathway program following the successful completion of a 
registered apprenticeship program. However, the calculation of this 
metric would help Registration Agencies identify which programs provide 
articulation and connections to the postsecondary system. These 
connections may be critical for programs that serve high-school-aged 
youth or are designed as entry-level opportunities in the health care 
or education industry. In addition, the information collected would 
enable the capacity for disaggregation by industry and occupation for 
registered apprenticeship exiters who enter into a postsecondary 
educational program or a career pathway program.
---------------------------------------------------------------------------

    \179\ WIOA sec. 3(7) (definition of career pathway).
---------------------------------------------------------------------------

    Proposed Sec.  29.25(c) would establish annual reporting 
requirements for Registration Agencies, including OA, based on the 
information collected in paragraph (b)(2) of this section. This would 
include State and sponsor-level reporting and a national summary 
report. These requirements would serve to further enhance equity in the 
National Apprenticeship System; improve the overall quality of 
registered apprenticeship programs through improved transparency and 
accountability; and allow for disaggregating registered apprenticeship 
data for more informative publicly available and accessible products, 
as is recommended by the ACA. The Department is proposing in Sec.  
29.25(c)(3) that Registration Agencies use a series of supplemental 
information sources, in IC efforts. Registration Agencies should 
provide the necessary sources of information, such as surveys, wage 
records, or other valid support and technical assistance to sponsors to 
ensure that supplemental sources are valid and meet the criteria for 
ensuring effective reporting requirements. These supplemental sources 
would enable the calculation of quality metrics on a system level, such 
as post-apprenticeship employment retention rates calculated 6 and 12 
months after program exit; annualized median earnings of exited 
apprentices; percentage of all completers of a registered 
apprenticeship program that are earning an income that allows them to 
support themselves and their

[[Page 3214]]

families, or are placed in a postsecondary educational program or a 
career pathway program, 1 year after program completion; and customer 
service metrics for Registration Agencies focused on customer 
satisfaction of sponsors with registered apprenticeship and 
Registration Agency services. In addition, the Department believes that 
system-level metrics for registered apprenticeship can be utilized as a 
mechanism to improve the overall job quality of a range of occupations 
as well as improve wages and working conditions for individuals pursing 
these careers.
    The registered apprenticeship system is intended to secure 
apprenticeship-related pathways that lead to occupations providing 
income that allow individuals to support themselves and their families. 
Accordingly, the Department seeks to establish a system-level 
performance reporting measure that would quantify income outcomes for 
apprentices registered under subpart A and CTE apprentices registered 
under subpart B. The Department is considering setting the income 
performance reporting measure at 200 percent of the Federal poverty 
level. (The Federal poverty level is a measure of income calculated 
annually by the Department of Health and Human Services and often used 
to determine Federal benefit eligibility.) If an individual receives at 
least 200 percent of the Federal poverty level (i.e., $49,720 a year 
for a family of 3 in the 48 contiguous States and the District of 
Columbia, or about $23.90 an hour assuming 2,080 work hours in a year) 
in the year after the successful completion of a registered 
apprenticeship program, this would be understood to be a successful 
program outcome. The Department envisions that making available to the 
public the data from this system-level performance reporting measure 
would benefit prospective apprentices exploring potential occupations 
and apprenticeship programs. The Department invites comments on this 
proposed methodology, including whether and how the Department should 
define a successful outcome for apprentices in terms of income and 
suggestions for modifying this proposed system-level performance 
reporting measure.
    The Department in proposed paragraph (c)(5) may decide to withhold 
certain information described above from publication for good cause 
(for example, if the publication of data may result in personally 
identifiable information becoming attributable to individuals, or if 
the data collected has been documented to be inaccurate). The 
Department is interested in any other comments regarding potentially 
withholding information from publication.
    To support operability and implementation of proposed system level 
metrics the Department would conduct additional research, such as 
researching the effective mechanisms needed for training through a 
registered apprenticeship model that leads to sustainable careers, how 
supportive services may increase the annual completion rate, the cohort 
completion rate, and the subsequent earnings potential of apprentices. 
Utilizing this framework, as noted in proposed paragraph (c)(4), the 
Administrator plans to conduct evaluations and longitudinal studies to 
assess the impact and improve the effectiveness of registered 
apprenticeship programs. To the extent that information is collected in 
this process for the development, calculation, and implementation of 
publicly facing products, such as program and Registration Agency 
reports or dashboards, the Department may omit or suppress data or data 
elements necessary to protect apprentice personally identifiable data. 
The Department also may omit or suppress other information provided by 
sponsors that is collected through standards or requisite agreements 
that sponsors request to not be disclosed. The Department will provide 
guidance on this process and operational protocol through subregulatory 
guidance.
    The Department is interested in any comments regarding these 
proposed measures, including additional or alternative measures. The 
Department is also interested in comments about the proposed 
measurement and IC framework as a means to make more programmatic 
information available to the public, particularly balancing the 
business needs of employers and sponsors, the privacy of apprentices, 
and the overarching goal of providing more information to the public, 
particularly to job seekers to assist in their career decisions.
Section 29.26--Roles and Responsibilities of State Apprenticeship 
Agencies
    The concept of SAAs serving as extensions of the Department in the 
registration of apprenticeship programs for Federal purposes has been 
and can continue to be an effective model to expand capacity, 
expertise, and local partnerships. SAAs can also serve as laboratories 
to promote innovative models of apprenticeship. SAAs have been 
innovative in moving into more formal roles in pre-apprenticeship 
programs and in youth apprenticeship models, even if those efforts to 
date are not officially recognized for Federal purposes. The Department 
supports these innovations at the State level that are designed to make 
more apprenticeship models and quality standards available to career 
seekers and youth.
    However, ambiguity about the roles and responsibilities of SAAs 
relative to the roles and responsibilities of State Apprenticeship 
Councils, and inconsistent alignment with the Department's current 
apprenticeship regulations, has created a highly fragmented, 
inconsistent system that has deviated from the model envisioned by the 
current regulation and that has, in some instances, created a 
challenging market for sponsors and employers seeking to enhance and 
invest in their worker training through the registered apprenticeship 
training model.
    Proposed Sec.  29.26 would substantially revise the content of the 
provisions in existing Sec.  29.13 concerning the duties and 
responsibilities of SAAs that are recognized by OA for Federal 
purposes. Among other things, this updated regulatory provision would 
describe the duties and responsibilities of recognized SAAs, as well as 
the proper allocation of responsibilities between such SAAs and the 
State Apprenticeship Councils that they are responsible for 
establishing and overseeing. The Department is concerned that the 
current version of the regulation has not been effective in delineating 
the respective duties and powers of the foregoing administrative and 
advisory bodies, which has seriously impeded the fair, efficient, 
consistent, and transparent operation of the National Apprenticeship 
System.
    The Department has long taken the view that SAAs--acting as 
impartial and disinterested governmental bodies that are accountable to 
the elected executive authority within their respective States--are 
best suited to fairly and equitably discharge the administrative and 
oversight duties with respect to apprenticeships that have been 
entrusted to such SAAs by the Administrator. While the Department notes 
that many SAAs have admirably fulfilled these administrative 
responsibilities in accordance with the current regulatory requirements 
established at 29 CFR 29.13, the Department has also observed that 
other States have not operated in accordance with the current 
regulation. Specifically, while the current regulation (at 29 CFR 
29.13(a)(2)) stipulates that a State Apprenticeship Council, which 
functions in a regulatory or advisory capacity, must be established by 
an SAA

[[Page 3215]]

and must operate under the direction of that SAA, the authority to 
evaluate and register apprenticeship programs in a number of States has 
been improperly ceded--on either a de facto or a de jure basis--to 
State Apprenticeship Councils or other non-governmental, external 
entities.
    The Department has received disturbing complaints from potential 
program sponsors--particularly those operating within the skilled 
trades--that have unsuccessfully sought to register apprenticeship 
programs in certain States where State Apprenticeship Councils have 
impermissibly exercised the authority to approve or deny applications 
for program registration. These complaints have often cited the 
infrequency of State Apprenticeship Council hearings to consider 
applications for registration (as these bodies typically meet only on a 
quarterly basis), repeated postponements of decisions by a State 
Apprenticeship Council on whether to approve or deny program standards 
or registration, and the absence of procedural due process, appeal 
rights, and a written record in those instances where a Council has 
improperly issued a negative final determination on a potential 
program's registration. Such conduct by State Apprenticeship Councils 
may help to explain why the speed of program registration in SAA States 
lags behind the pace of registrations in those States administered by 
OA.\180\ In instances where an applicant who otherwise appears to meet 
the existing regulatory requirements for program registration has 
encountered such inappropriate barriers to registration, the Department 
has been obligated to consider whether the exercise of its residual, 
plenary authority under existing 29 CFR 29.13(i) to register 
apprenticeship programs in any State would be warranted.
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    \180\ See Apprenticeships for America, ``The State of 
Apprenticeships in the U.S.: A Plan for Scale,'' July 2022, https://www.apprenticeshipsforamerica.org/white-paper.
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    Accordingly, this revised provision would clarify that an SAA that 
has received recognition (under proposed Sec.  29.27) from the 
Administrator possesses the exclusive, non-delegable authority to 
evaluate, approve, register, monitor, oversee, suspend, and deregister 
apprenticeship programs operating within that State. The only exception 
would be when the Administrator--taking into account the interests of 
the National Apprenticeship System as a whole--chooses to exercise its 
residual authority to register an apprenticeship program on either a 
State-by-State or a nationwide basis.
    Specifically, as a prerequisite for the recognition or continued 
recognition of an SAA by the Department, the proposed rule (at Sec.  
29.26(b)) would expressly prohibit a State--either in law or in 
practice--from delegating, assigning, or relinquishing any of the 
discretionary authority conferred by the Department upon an SAA, 
including with respect to registration determinations and the oversight 
of apprenticeship programs and standards within that State, to any 
external third-party entity, including a State Apprenticeship Council.
    In a related vein, the proposed rule (at Sec.  29.26(b)) would 
reiterate the requirement contained in the current rule (at 29 CFR 
29.13(a)(2)) that State Apprenticeship Councils must operate under the 
direction and control of the SAAs that have established them, and would 
also expressly prohibit State Apprenticeship Councils from assuming or 
exercising any of the discretionary and inherently governmental 
regulatory and oversight duties with respect to apprenticeship that are 
properly vested in an SAA. The proposed rule would also eliminate the 
somewhat inchoate distinction posited under the current version of the 
regulation (at 29 CFR 29.2 and 29.13(a)(2)) between those State 
Apprenticeship Councils whose purposes and functions are ``advisory'' 
in nature from those that are ``regulatory'' in nature. The proposed 
rule instead would stipulate that all State Apprenticeship Councils 
must serve an exclusively advisory function. Specifically, the proposed 
rule (at Sec.  29.26(c)) would limit the duties and powers of State 
Apprenticeship Councils to providing their respective SAAs with 
written, non-binding advice, recommendations, research, and reports 
concerning apprenticeship-related matters, and to providing advice in 
connection with the State's submission of the State Apprenticeship Plan 
that is required under Sec.  29.27 of the proposed rule.
    However, the Department wishes to note that the foregoing 
prohibition would not prohibit an SAA from using contractors or other 
third parties to perform tasks that do not involve or relate to duties 
described in proposed Sec.  29.26(a), such as providing assistance to 
the SAA with promotional and public outreach activities. The SAA must 
retain the ultimate decision-making authority regarding whether an 
apprenticeship program qualifies for registration. In addition, the 
proposed regulation (at Sec.  29.26(a)(5)) would require SAAs, as a 
precondition for receiving either initial or continued recognition, to 
provide OA with data relating to apprentices and registered 
apprenticeship programs in that State. This regulatory data-sharing 
requirement described in proposed Sec.  29.28, if adopted, would 
enhance registered apprenticeship program transparency, and provide the 
public with a truly national picture of the performance of the National 
Apprenticeship System.
    SAAs are defined, both under current regulations and under proposed 
Sec.  29.2, as the agency of a State government that has responsibility 
and accountability for apprenticeships within the State. An approved 
SAA steps into the role of OA in that State, administering registered 
apprenticeship in lieu of OA and in a manner consistent with OA's role 
as outlined in these proposed regulations. In furtherance of a unified 
National Apprenticeship System, an SAA can only exercise this 
responsibility once it has established, among other things, that its 
laws, statutes, and regulations are consistent with Federal 
regulations, as discussed below. This serves to promote uniformity and 
consistency of experience, particularly for sponsors of registered 
apprenticeship programs and apprentices, among not only SAAs, but also 
those States where apprenticeship is regulated and overseen by OA. In 
short, it facilitates the establishment of a more unified National 
Apprenticeship System. Currently, there are 30 SAAs serving as 
Registration Agencies, a number that has increased over the last 
several years. This section would provide an explanation of the roles 
and responsibilities of SAAs and the general requirements to obtain 
recognition from the Administrator.
    Proposed paragraph (a) is new and explains, upon recognition, what 
actions an SAA would be allowed to conduct for Federal purposes.
    Proposed Sec.  29.26(a)(1) and (7) would detail the SAA's role and 
responsibilities with respect to establishing and implementing 
apprenticeship-related regulations, policies, and procedures to meet 
the requirements of proposed parts 29 and 30. Proposed Sec.  
29.26(a)(2) through (6) and (8) through (10) would describe the SAA's 
role and responsibilities over the day-to-day establishment, operation, 
and oversight of registered apprenticeship programs. Efforts to expand 
and modernize the apprenticeship system must be inclusive of industries 
that are well-established within the apprenticeship system as well as 
industries seeking to begin or expand their participation. In 
furtherance of this goal, the SAA would

[[Page 3216]]

bear the responsibility of promoting cohesion and alignment among 
program sponsors and employers. Lastly, proposed Sec.  29.26(a)(11) 
would provide for the role SAAs may provide as Registration Agencies 
for registered CTE apprenticeship under subpart B. The primary 
discussion of SAA recognition for the purposes of subpart B is located 
in the preamble for Sec.  29.24(g)(8).
    The Department proposed paragraph (a) to clarify the expected role 
and responsibilities of the SAA. The requirements in current Sec.  
29.13 have some description of the expected roles and responsibilities 
of the SAA, but that section is not clear, and the relevant roles and 
responsibilities are spread throughout the section. This proposed 
paragraph would make those roles and responsibilities clear and include 
them in one location for ease of use. Further, the Department is adding 
proposed paragraph (a) to establish the key responsibilities of SAAs, 
which also applies to Registration Agencies generally and supports 
establishing the key roles and responsibilities in the system. The 
activities listed in proposed paragraph (a) are those that OA would 
ordinarily perform if a State did not have a recognized SAA. The 
Department anticipates that proposed paragraph (a) would reduce 
confusion about the expectations of the SAA and ensure that the SAA is 
fulfilling the needs of apprentices, sponsors, and employers in the 
State for which it has been recognized to be the Registration Agency 
for Federal purposes.
    Proposed paragraph (b) is new and explains that SAA functions in 
proposed Sec.  29.26(a) cannot be delegated, assigned, devolved, or 
relinquished to any other entity. Proposed paragraph (c), which 
describes the role of the State Apprenticeship Council, would further 
clarify that the functions described in (a) cannot be performed by the 
State Apprenticeship Council. In the preamble to the 2008 final rule 
that last updated the apprenticeship regulations in 29 CFR part 29, the 
Department confirmed that it would only recognize SAAs and would not 
recognize State Apprenticeship Councils in the discussion of public 
comments received on 29 CFR 29.13.\181\ The Department acknowledged 
that State Apprenticeship Councils comprise knowledgeable 
apprenticeship stakeholders representing ``diverse employer, labor, and 
public interests,'' but ultimately concluded that State Apprenticeship 
Council members are not State officials and are thus not accountable to 
the State nor the Department. The Department continues to view State 
Apprenticeship Councils as a valuable advisory resource for SAAs but 
continues to believe that authority over registered apprenticeship in a 
State should rest with a State government agency. The Department 
further believes that clarifying that SAAs cannot delegate regulatory 
and oversight functions to State Apprenticeship Councils would 
strengthen accountability within the National Apprenticeship System.
---------------------------------------------------------------------------

    \181\ See existing regulation at 29 CFR 29.13, concerning 
``Recognition of State Apprenticeship Agencies.''
---------------------------------------------------------------------------

    Despite the 2008 final rule's clarification that the Department 
would not recognize State Apprenticeship Councils, in some States, such 
entities have overtaken regulatory and oversight functions from SAAs. 
Commenters responding to the 2007 NPRM that preceded the 2008 final 
rule confirmed that this practice was ongoing before the 2008 update to 
the regulations and remarked that some State laws granting State 
Apprenticeship Councils oversight of the State's apprenticeship system 
or granting State Apprenticeship Councils the authority to promulgate 
regulations dictating the role and functions of SAAs, would need to be 
overturned. Such delegation of critical apprenticeship system oversight 
has continued in the intervening years, and in some States, State 
Apprenticeship Councils continue to perform key apprenticeship 
oversight functions, including making determinations on an occupation's 
suitability for registered apprenticeship training and making 
registration determinations. The Department is concerned that the State 
Apprenticeship Councils continue to play this role in some States, and 
maintains the view expressed in the preamble to the 2008 final rule 
that administration and oversight functions are the responsibility of 
government entities comprising Federal or State officials. State 
officials are accountable to the interests of an entire State and that 
State's population, while State Apprenticeship Council members are not. 
State Apprenticeship Council members appropriately comprise equal 
numbers of representatives from different sectors and bring diverse 
perspectives on apprenticeship to the table, but they are ultimately 
not accountable to the public in the same manner as State officials 
working in SAAs.\182\ As expressed in the preamble to the 2008 final 
rule, the Department maintains that the effective function of the 
relationship between the Federal government and State governments 
necessitates a direct relationship between Federal and State government 
agencies. The Department recognizes and appreciates the valuable 
expertise and advice that State Apprenticeship Councils have 
historically provided and expects that they will continue to serve as a 
valuable source of advice helping to inform matters related to 
registered apprenticeship, including ongoing efforts to expand 
registered apprenticeship into new and emerging industries and to new 
and diverse populations. However, in order to further establish 
effective accountability throughout the National Apprenticeship System 
and to provide optimal clarity to the regulated community, the 
Department has determined to propose revisions to the apprenticeship 
regulations to expressly state the appropriate, solely advisory role of 
State Advisory Councils and clarify that SAAs may not delegate 
apprenticeship oversight nor regulatory functions to such entities. 
SAAs are reminded that if the State Apprenticeship Council performs 
functions that can only be exercised by the SAA, then the Administrator 
can take appropriate remedial action including the initiation of 
derecognition proceedings.
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    \182\ The existing apprenticeship regulations at Sec.  
29.13(a)(2)(ii) require that State Apprenticeship Councils ``must 
include an equal number of representatives of employer and of 
employee organizations and include public members who shall not 
number in excess of the number named to represent either employer or 
employee organizations.'' The Department proposes to retain this 
requirement on the makeup of State Apprenticeship Councils in this 
proposed rule but offers more details on who would constitute a 
member of an ``employer organization,'' ``labor organizations,'' and 
``members of the public'' at proposed Sec.  29.26(d)(1)(i) through 
(iii).
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    The regulatory and oversight functions of an SAA are foundational 
in ensuring the establishment and maintenance of high-quality and safe 
apprenticeship training. For the reasons discussed above, the 
Department has determined that these functions should remain as 
responsibilities of the SAA, which it has recognized for the purpose of 
discharging these responsibilities for Federal purposes and which the 
Department monitors and oversees for compliance with the requirements 
in proposed parts 29 and 30.
    Proposed paragraph (c) is new and would consolidate requirements 
around the establishment and duties of State Apprenticeship Councils 
into one provision. Proposed paragraph (c) explains SAAs would be 
required to establish a State Apprenticeship Council. The Department 
emphasizes that proposed paragraph (c) would envision the creation of a 
single State Apprenticeship Council. While existing requirements may 
have been unclear as

[[Page 3217]]

to the Department's intention, in this rulemaking the Department makes 
clear that proposed part 29 would intend for only one State 
Apprenticeship Council to be established by a given SAA. As a purely 
advisory body, State Apprenticeship Councils' focus should be convening 
stakeholders from different sector perspectives--namely, employers, 
organized labor, and the public sector--to offer guidance and advice on 
apprenticeship matters that balances the priorities and perspectives of 
each sector. State Apprenticeship Councils should serve as the forum 
for meeting the challenge of balancing different sectoral perspectives 
and arriving at consensus advice through robust discussion, 
deliberation, and compromise among stakeholders from these sectors. The 
Department recognizes that the challenge of balancing competing 
perspectives to arrive at consensus advice on apprenticeship matters 
would be compounded if multiple State Apprenticeship Councils were 
operating in a single State. In such a situation, one State 
Apprenticeship Council may be engaged in robust debate on a challenging 
issue and arrive at a consensus recommendation over the course of a 
series of meetings, while another State Apprenticeship Council may take 
up the same issue, engage in such debate, and arrive at a completely 
different recommendation. Within each State Apprenticeship Council, the 
views of stakeholders from different sectors will have been heard and 
considered, but because discussions took place in two different forums, 
the ultimate recommendation for the State's consideration may be 
unclear. In the Department's view, based in part on successful 
interactions with the ACA at the national level, maintaining a single 
State Apprenticeship Council would be the best approach for convening 
apprenticeship stakeholders from different sectors to produce useful 
advice for SAAs on apprenticeship matters.
    In order to address the many issue areas and topics related to 
registered apprenticeship, and to more closely align the advisory work 
of a State Apprenticeship Council with the specific expertise and 
professional backgrounds of the individuals who comprise a State 
Apprenticeship Council, it may be useful for such Councils to establish 
subcommittees, appoint chairs, cochairs, or other leadership roles, and 
otherwise divide responsibilities within the Council. Aside from 
stipulating that State Apprenticeship Councils contain equal 
representation from employers, organized labor, and members of the 
public, and limiting the number of State Apprenticeship Councils in a 
State to one, the Department is not proposing any limitations or 
restrictions on the composition, division of responsibilities, or 
internal functions of State Apprenticeship Councils in this proposed 
regulation, provided the Council exercises only those functions that it 
is authorized to exercise under this proposed regulation.
    Proposed paragraph (c) would explain that State Apprenticeship 
Councils are strictly advisory bodies that are created by, and with the 
purpose to serve, the SAA by providing non-binding advice. State 
Apprenticeship Councils have historically provided valuable advice and 
insights for consideration by SAAs, and the Department recognizes the 
value such entities add to the National Apprenticeship System through 
the provision of non-binding advice and recommendations at the State 
level. State Apprenticeship Councils have provided, and will continue 
to provide, useful advice on sector-specific strategies to inform 
efforts to expand registered apprenticeship, considerations on how best 
to align different workforce development programs (such as WIOA), LEA 
initiatives, or public-private sector partnerships with registered 
apprenticeship, and other issues where an SAA benefits from the 
synthesis of diverse industry perspectives that may not exist among 
State employees working at an SAA. As this proposed rule would 
explicitly clarify the advisory role of State Apprenticeship Councils, 
the Department expects that State Apprenticeship Councils would be more 
effective and timelier in executing their pivotal role of providing 
advice on apprenticeship matters based on the input from diverse 
stakeholders from different sectors. This is especially true in cases 
where a State Apprenticeship Council has been performing functions that 
should have been reserved for SAAs, such as reviewing and adjudicating 
applications for an occupation's suitability for registered 
apprenticeship training or program registration. In such cases, these 
responsibilities would be appropriately retained by the SAA, and the 
State Apprenticeship Councils formerly acting in such capacity would be 
free to focus on deliberations on challenging issues and the provision 
of useful, consensus advice reflecting input from multiple sectors and 
industry stakeholders.
    The Department is also interested in hearing from stakeholders on 
the Department's proposal to transition State Apprenticeship Councils 
to a more strategic role and away from reviewing applications from 
prospective sponsors to allow for greater focus on expansion, quality 
improvements, equity, and system alignment initiatives within the 
State.
    Proposed Sec.  29.26(c)(1) concerns the composition of State 
Apprenticeship Councils and would expand upon the language in the 
existing regulation at 29 CFR 29.13(a)(2)(i) and (ii). The existing 
regulation provides that State Apprenticeship Councils must comprise 
individuals who are knowledgeable in matters pertaining to 
``apprenticeable occupations'' and must include equal numbers of 
representatives from employer and employee organizations, as well as 
public members ``who shall not number in excess of the number named to 
represent either employer or employee organizations.'' \183\ This 
proposed rule would retain the requirement that State Apprenticeship 
Councils contain an equal number of representatives from these three 
sectors--employers or employer organizations, labor organizations, and 
members of the public.\184\ It would further provide more granular 
information about the backgrounds of such individuals that would be 
useful for aligning State Apprenticeship Council membership with the 
Department's goals for expansion of the National Apprenticeship System 
and alignment with other workforce development entities and LEAs. This 
proposal also envisions that State Apprenticeship Councils would be 
balanced from an employer and labor perspective, but also that the 
membership would be reflective and inclusive of underserved communities 
so the State Apprenticeship Council can provide key recommendations 
that promote the goals of expansion, diversification, and greater 
equity in the National Apprenticeship System.
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    \183\ See 29 CFR 29.13(a)(2)(i) and (ii).
    \184\ While the current regulation does stipulate equal numbers 
of representatives from the employer and labor sectors, it only 
requires that the number of public representatives be equal to (or 
less than) the number of representatives from the employer sector or 
the labor sector (which are required to be equal). For example, the 
current regulation would allow for a State Apprenticeship Council to 
be made up of 10 representatives from each of the employer and labor 
sectors, and up to 10 (but no more than 10) representatives from the 
general public. The proposed regulation would require equal numbers 
of representatives from all three sectors--employer, labor, and 
public.
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    For example, at proposed 29 CFR 29.26(c)(1)(i), the Department 
explains that representatives from the employer sector (either 
employers or employer

[[Page 3218]]

organizations) may include representatives from sectors where 
apprenticeship is not currently widespread. Similarly, proposed 
paragraph (c)(1)(ii) explains that representatives from labor 
organizations or joint labor-management organizations (an organization 
that is known to and relevant for registered apprenticeship, wherein 
representatives from both the management and labor divisions of an 
organization form a deliberative body that addresses issues with input 
from both sides) may include those from industries or occupations where 
apprenticeship has not traditionally been utilized. This additional 
detail would align with the Department's goal of expanding registered 
apprenticeship generally, and particularly into new industries where 
registered apprenticeship has yet to take hold as an effective 
workforce training tool. The Department expects that State 
Apprenticeship Councils would be a useful resource to support this goal 
and encourages such bodies to recruit members who can provide insights 
from industries targeted for registered apprenticeship expansion.
    At proposed 29 CFR 29.26(c)(1)(iii), the Department proposes to 
require that State Apprenticeship Councils' representatives from the 
general public include at least one representative from the State's 
workforce development system, and at least one representative from the 
secondary or postsecondary education system in the State who is 
familiar with registered apprenticeship. The Department expects that 
improved alignment between the National Apprenticeship System and 
State-level workforce development programs and educational networks 
would be another area where State Apprenticeship Councils can provide 
valuable insight, advice, and recommendations to guide the ongoing 
integration of these related job strategies. Apprenticeship, workforce 
training, and education all share the common goal of preparing 
participants--whether apprentices, job seekers, or students--for 
success in the labor market, for stable careers, and for achieving 
financial security. Successful outcomes for such participants also 
benefit U.S. employers by helping them address their talent needs. 
Ultimately, successful outcomes for job seekers and employers make U.S. 
businesses more competitive in the global marketplace and provide a 
meaningful boost to the U.S. economy; achieving optimal alignment among 
apprenticeship, workforce development, and education is a critically 
important national interest. Accordingly, the Department proposes to 
require that State Apprenticeship Councils would recruit and retain 
members who represent workforce development and education to facilitate 
connections and provide insight for the mutual benefit of their 
respective systems and the National Apprenticeship System.
    Proposed Sec.  29.26(c)(2) is a new provision that, for the reasons 
discussed above, would prohibit State Apprenticeship Councils from 
assuming or carrying out any of the responsibilities and functions of 
the SAA listed in proposed Sec.  29.26(a).
    Proposed paragraph (d) would require that an SAA must establish a 
reciprocity process for providing approval in the SAA's State to 
apprentices, registered apprenticeship programs, and standards of 
apprenticeship that are registered by other Registration Agencies for 
Federal purposes. Proposed paragraph (d) would expand upon an existing 
requirement that an SAA must accord reciprocal approval for Federal 
purposes. The existing requirement does not specify how, or on what 
basis, an SAA must provide reciprocal approval which has led to 
uncertainty by sponsors on the process for being granted such 
reciprocity across SAAs. To address this gap, proposed paragraph (d) 
would specify that the process must provide for a determination on a 
program sponsor's application for reciprocity no later than 45 calendar 
days after receipt of the request. Further, proposed paragraph (e) 
would specify a reciprocity process established by an SAA provide 
reciprocal approval only when certain conditions are met.
    Proposed Sec.  29.26(d)(1) would require that the reciprocity 
process must ensure reciprocal approval only be provided where the 
program sponsor meets the statutory and regulatory wage and hour 
requirements and apprentice-to-journeyworker ratios of the State in 
which reciprocal approval is sought.
    Proposed Sec.  29.26(d)(2) would require that the reciprocity 
process ensures that the program and apprentices to which reciprocal 
approval is accorded are registered by the SAA.
    Proposed Sec.  29.26(d)(3) would require that the reciprocity 
process must account for the development of standards that meet or 
exceed the requirements of State or local licensure, if licensure is 
required for the occupation that is the subject of the program that is 
being accorded reciprocal approval. This proposed change from requiring 
reciprocity is a recognition of an evolution in the Department's 
understanding of how reciprocity works with regard to SAAs, State labor 
laws, licensing laws, and the expansion of State benefits associated 
with registration by an SAA. The Department believes the current 
regulatory text at Sec.  29.13(b)(7), which essentially requires SAAs 
to provide reciprocal approval, is overly simplistic and, if read 
literally, could jeopardize the ability of apprentices to legally work 
in a State. The current effect has been a barrier to registration 
status access and a failure to properly account for all the State 
issues related to apprenticeship programs. However, the Department does 
believe that reciprocity is a vital tool in assisting sponsors that 
have already met the registration requirements in a State but that have 
operations in another to more easily acquire registration status in 
that State. The Department, in acknowledging these two needs, is 
proposing to require that States develop a process in which they would 
provide reciprocity and articulate that process as part of their State 
Apprenticeship Plan submission in proposed Sec.  29.27(b)(3). The 
Department anticipates that expansion of this requirement and further 
elaboration upon the criteria that a reciprocity process must address 
would further its goal of driving alignment in the National 
Apprenticeship System and is interested in comments about this approach 
in terms of providing transparency to potential sponsors while 
balancing the complex State needs.
Section 29.27--Recognition of State Apprenticeship Agencies
    Proposed Sec.  29.27 would provide the framework for OA to confer 
recognition to States that seek to obtain recognition or renewal of 
recognition as an SAA State. In the process of obtaining recognition, 
States would undergo a strategic planning process that seeks to 
establish a broad vision of registered apprenticeship expansion, 
modernization, diversification, and equitable opportunities for all 
learners and workers. The strategic planning process would be an 
opportunity for States to convene stakeholders at the State level that 
find value and opportunity in bolstering the system of registered 
apprenticeship in the State. Through this process, States can build 
consensus around a shared strategic vision and goals; promote program 
quality and good jobs; leverage and align with an existing workforce 
and education infrastructure; meet the skilled workforce needs of 
employers in existing and emerging high-growth industries and 
occupations; galvanize commitments for increasing access to and support 
within registered apprenticeship for individuals from

[[Page 3219]]

underserved communities; and utilize data collection and reporting 
capacity for greater system accountability and transparency.
    The Department envisions that the State Apprenticeship Plan would 
be a blueprint for how a State will prioritize Federal and State 
investments in registered apprenticeship and align administrative, 
operational, and governance principles for more effective and efficient 
implementation of expansion and equity strategies and goals. To the 
extent this process for recognition and State apprenticeship planning 
is currently underway in States, either through executive order,\185\ 
statutory mandate,\186\ or unified or combined planning under WIOA 
\187\ and Perkins, States can build off of their lessons learned in 
this proposed process and continuously incorporate new investments, 
statutory or governance changes, and system innovations through 
utilization of maximum flexibility to modify plans. States also would 
have the opportunity to receive recognition from the Department for the 
purposes of operating registered CTE apprenticeship programs in their 
States as part of the State Apprenticeship Plan.
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    \185\ Office of the Governor of Kansas, Laura Kelly, Executive 
Order No. 22-07, ``Establishing the Office of Registered 
Apprenticeship,'' Sept. 6, 2022, https://sos.ks.gov/publications/Register/Volume-41/Issues/Issue-37/09-15-22-50504.html.
    \186\ Governor's Workforce Board, Rhode Island, ``Unlocking 
Apprenticeship: A Strategic Plan for Expanding New and Innovative 
Apprenticeship Models in Rhode Island,'' Dec. 2017, https://apprenticeshipri.org/wp-content/uploads/2018/01/2017-Apprenticeship-Report-Final.pdf.
    \187\ DOL, ``Required Elements for Submission of the Unified or 
Combined State Plan and Plan Modifications under the Workforce 
Innovation and Opportunity Act,'' OMB Control Number 1205-0522, 
Sept. 5, 2019, https://www.dol.gov/sites/dolgov/files/ETA/wioa/pdfs/State-Plan-ICR.pdf. Note: States must address all program-specific 
requirements for the WIOA core programs regardless of whether the 
State submits either a Unified or Combined State Plan. The Unified 
or Combined State Plan must, with respect to activities carried out 
under subtitle B of title I of WIOA, describe how the State will 
incorporate registered apprenticeship into its strategy for service 
design and delivery as well as provide the procedure, eligibility 
criteria, and information requirements for determining training 
provider initial and continued eligibility, including for registered 
apprenticeship programs.
---------------------------------------------------------------------------

    Through the State planning process for SAA recognition, States 
would have an opportunity to incorporate new and existing investments, 
innovations, and strategies into their plans. States can incorporate 
recent investments in the transportation, clean energy, and 
manufacturing sectors, and in more resilient infrastructure, for 
example, through the Bipartisan Infrastructure Law, IRA, and CHIPS Act. 
These laws aim to encourage the use of registered apprenticeship and 
would offer an opportunity to engage and convene stakeholders in new 
and emergent industries that may not have traditionally been 
participating in the National Apprenticeship System. Furthermore, 
investments that have been made by the Department under AAI, 
Apprenticeship Building America, and State Apprenticeship Expansion, 
Equity, and Innovation grants have been and continue to be a catalyst 
for encouraging States to make strategic investments through 
coordinated partnership with regional and local program sponsors and 
employers and to build a dynamic system of registered apprenticeship in 
their States. States also would have the opportunity to create and join 
an interconnected network of industry intermediaries at the national 
and State level to facilitate effective industry engagement and support 
efforts for program sponsors to better integrate equity into programs. 
To the extent that States choose to better align cross-system planning 
with WIOA or Perkins or both, States can use the State Apprenticeship 
Plan process for coordination at the State and local level to leverage 
resources for related instruction and on-the-job training. 
Additionally, this would enable the leveraging of Federal- and State-
funded workforce and education infrastructure and provide necessary 
supportive services for shared priority populations, underserved 
communities, and individuals who face barriers to economic mobility. 
This approach would also enable equitable access to career exploration, 
pre-apprenticeship, and Job Corps that lead to registered 
apprenticeship career pathways for job seekers. Lastly, this approach 
would enable SAAs to engage in employer-driven, innovative sector 
strategies and State economic development initiatives, as well as align 
measurable outcomes and disaggregated demographic data through data 
sharing and reporting strategies.
    Finally, proposed Sec.  29.27 would modify the existing regulatory 
requirement (found at 29 CFR 29.13(a)(1)) that an SAA, to be eligible 
for recognition by OA, must submit a State apprenticeship law that 
conforms to the requirements contained in 29 CFR parts 29 and 30. The 
proposed rule would instead require that a State's apprenticeship laws 
either meet or exceed the minimum requirements set forth in 29 CFR 
parts 29 and 30 for protecting the safety and welfare of apprentices, 
as discussed further below. Over time, the Department has observed that 
the existing State law conformity standard has greatly impeded the 
efficient and reasonable consideration of applications for recognition 
by many SAAs. The Department believes that this revision would ensure 
that all SAAs satisfy the minimum Federal labor standards and EEO in 
apprenticeship requirements established by the foregoing regulations, 
while also providing States with the regulatory flexibility to innovate 
and expand the scope of protections available to apprentices who are 
enrolled in, or seeking admission into, registered apprenticeship 
programs. This provision would also harmonize with the State law 
flexibilities that would be preserved under the proposed regulatory 
provision concerning ``Relation to Other Laws'' at proposed Sec.  29.5.
    The process proposed in this section would further promote 
consistency within the National Apprenticeship System as it is intended 
to establish a process that would be uniform and transparent for States 
seeking recognition or continued recognition as an SAA State. The 
implementation of a 4-year State planning process would satisfy each of 
those goals by simultaneously creating a consistent cadence by which 
all States would have their suitability for recognition assessed, and a 
basis to be used by the Administrator to approve or deny submitted 
State Apprenticeship Plans. This augmentation to the current process 
would leave in place integral components of systemic consistency such 
as demonstrated compliance with Federal regulations and submission of a 
State EEO plan. The addition of components such as the 
operationalization of requirements outlined in proposed Sec.  29.26, 
and clear communication of a strategic vision for the continued 
expansion and modernization of apprenticeship are needed to strengthen 
the existing recognition process. The Department intends to make the 
contents of such plans publicly available to promote greater 
transparency in the National Apprenticeship System.
    Proposed Sec.  29.27 would set forth new requirements for State 
government agencies to obtain or maintain recognition as an SAA. 
Specifically, this section describes the process by which a State 
government agency would submit a State Apprenticeship Plan to the 
Administrator for review and approval. As discussed below, this process 
would require a State government agency to submit, as part of the State 
Apprenticeship Plan, strategic planning elements that address the

[[Page 3220]]

State's goals to expand the registered apprenticeship model.
    Proposed paragraph (a) would outline the application process for 
the submission, review, approval, or disapproval of the State 
Apprenticeship Plan. Current Sec.  29.13(d) prescribes that the State's 
apprenticeship law will be reviewed for Federal conformity every 5 
years based on their last approval from OA. To address the lack of 
consistency, proposed Sec.  29.27(a)(1) would establish a clear process 
and a regular cadence for all States to submit a State Apprenticeship 
Plan for review and approval by the Administrator. Proposed Sec.  
29.27(a)(1) would set forth that State Apprenticeship Plans are due 
every 4 years, beginning for a State seeking recognition for a 4-year 
period after December 31, 2026, a departure from the current SAA 
recognition period of 5 years. This change is precipitated by ETA's 
desire to better align apprenticeship with the greater workforce 
development system, including WIOA and the Perkins program, which also 
utilizes a State planning process on a 4-year cycle. The selection of 
December 31, 2026, would provide at least 2 full calendar years for 
States to make the necessary changes to their laws and develop plans 
consistent with the requirements in this proposed rule. The timing of 
2026 generally aligns with the next WIOA State planning process that 
States undergo as required by title I of that Act as well as the 
Perkins program. While there is some inconsistency with the WIOA State 
planning process, which is for the period beginning July 1, 2026, the 
Department believes that States do need sufficient time to make 
changes, particularly in instances where State apprenticeship laws may 
need to be updated. While the cycles do not completely overlap, they do 
occur during the same calendar year and the Department considers this 
alignment in timing as a strategic opportunity to build greater 
cohesion and strategic State operations and coordination with the 
State's workforce system, CTE system, and system of registered 
apprenticeship, all of which are engaged in planning around the same 
time period. This alignment could lead to increased system cohesion and 
coordination. To address this gap in time, the Department is proposing 
the first State Apprenticeship Plan cycle to be slightly less than 4 
years. Proposed paragraph (a)(1)(ii) would provide that the first State 
apprenticeship planning cycle would cover SAA recognition from January 
1, 2027, through June 30, 2030. Proposed paragraph (a)(1)(iii) would 
provide that the second State apprenticeship planning period would 
cover the 4-year period beginning on July 1, 2030. The goal of this 
proposal is to align with WIOA's State planning process in the future. 
Proposed paragraph (a)(1)(iv) would provide that while a State can seek 
SAA recognition at any time, consistent with it being at least 120 days 
prior to when a State is requesting such recognition, the approved SAA 
must also submit a State Apprenticeship Plan to align with the next 
State apprenticeship planning cycle. For instance, if a State that has 
not been previously recognized as an SAA State applies for and receives 
SAA recognition from the Administrator in July 2028, they must still 
submit a State Apprenticeship Plan for recognition for the 4-year 
period spanning July 1, 2030, to June 30, 2034. The goal of this 
proposal is to ensure that all SAAs are on a consistent and aligned 
State planning cycle. In addition to ensuring consistency with other 
programs such as WIOA and Perkins to enhance synergies between the 
systems, it also may lead to benefits from SAAs sharing their planning 
experiences with each other to strengthen State coordination and 
alignment. Under proposed paragraph (a)(1)(i), SAAs seeking recognition 
from the Administrator must submit their plans for the Administrator's 
review at least 120 days prior to the proposed effective date of their 
recognition. This would mean that State government agencies seeking 
recognition for a period after December 31, 2026, must submit on 
approximately September 1, 2026, to meet the 120-day criteria. The 
Department is interested in comments about this approach, the ability 
of States to successfully transition, and any potential flexibilities 
the Administrator may need to provide under this approach. Commenters 
requesting flexibility are encouraged to describe a standard by which 
this could be accomplished so as to not perpetuate longstanding 
misalignment with these proposed regulations.
    Proposed Sec.  29.27(a)(2) would specify the circumstances that 
would lead to an SAA seeking a modification to their State 
Apprenticeship Plan. Proposed paragraph (a)(2)(i) outlines when a 
modification would be required. These circumstances would include 
changes in Federal or State law, changes to labor market conditions, or 
changes to State vision, strategies, policies, operational procedures, 
or organizational structure of the SAA that would materially impact the 
ability of the SAA to fulfill its plan as written and approved. For 
example, modifications would be necessary when a new State 
apprenticeship law adds further requirements not called for under these 
proposed regulations, or a State may restructure its oversight of its 
workforce training programs by shifting oversight to a different State 
government agency. However, a determination would need to be made that 
the modified submission meets the requirements for approval.
    Proposed Sec.  29.27(a)(2)(ii) would describe that an SAA also has 
the discretion to modify its State Apprenticeship Plan. This may 
include an SAA seeking a change in its recognition status from 
provisional to full under proposed paragraph (c) of this section. While 
regulatory in nature for the compliance of the SAA, the Department 
believes Plans are also strategic documents that can lead to greater 
institutionalizing of State-based systems of registered apprenticeship 
into not just a regulatory or passive role in reviewing programs but in 
proactive approaches and strategies to expanding high-quality 
registered apprenticeship programs. Another example of when an SAA may 
seek a modification to its State Apprenticeship Plan is if the SAA is 
seeking recognition for the purposes of registering CTE apprenticeship 
programs under subpart B. The Department envisions that SAAs may seek 
this recognition at a different time period than the initial SAA 
recognition process, and a State Apprenticeship Plan modification would 
be an appropriate method to seek recognition for the purposes of 
subpart B.
    Proposed Sec.  29.27(a)(2)(iii) would specify that modifications to 
an approved State Apprenticeship Plan must be submitted to the 
Administrator at least 120 days prior to the requested effective date 
of the modification. The Department is including this requirement to 
allow the Administrator sufficient time to review and confirm that any 
proposed modifications meet the requirements for approval.
    Proposed Sec.  29.27(a)(2)(iv) would provide that, if the 
modifications are approved by the Administrator, modified State 
Apprenticeship Plans remain approved until the end of the original 
cycle of the Plan.
    Proposed paragraph (b) describes the contents of the State 
Apprenticeship Plan. Proposed paragraph (b) begins by setting forth the 
minimum requirements by which a recognized SAA must abide. Then, 
proposed paragraph (b) goes on to describe the full contents of what a 
State Apprenticeship Plan must include.

[[Page 3221]]

    Proposed Sec.  29.27(b)(1) would establish what the Department has 
determined to be the core requirements of the registered apprenticeship 
model that a recognized SAA must meet or exceed. As part of this 
process the State must submit its proposed or current apprenticeship 
laws governing the standards of apprenticeship, apprenticeship 
agreements, registration requirements, program standards adoption 
agreements, qualifications of apprentice trainers and providers of 
related instruction, end-point assessments, complaints, recordkeeping, 
processes by which a program will be reviewed and if necessary 
deregistered, the roles and responsibilities of SAAs, and the reporting 
requirements for an SAA. This provision also would require that the SAA 
coordinate with the State's education system, including institutions of 
higher education, LEAs, State CTE and Educational Agencies, and other 
educational entities that support CTE programs and career pathways, and 
mandate that the SAA provide a description of any efforts to align and 
leverage apprenticeship-related data with education system and 
workforce development system data. The Department believes that these 
are core requirements of Registration Agencies and, as such, must 
govern the roles of SAAs. Instead of the current standard of conformity 
with 29 CFR part 29, the Department is proposing a standard that the 
State laws meet or exceed these requirements for protecting the safety 
and welfare of apprentices. The Department is proposing this more 
flexible approach for States to innovate beyond the current conformity 
standard, which essentially requires that the State laws mirror 29 CFR 
part 29 with few exceptions. This standard is designed to set the 
minimum quality requirements and would provide States the flexibility 
to innovate if they can demonstrate that it advances the goal of 
protecting the safety and welfare of apprentices. This standard is at 
the heart of the Department's mission under the NAA. The Department 
welcomes comments on this proposed standard including ideas by which 
the Department may apply it. Under the proposed standard, State laws 
that, for example, provide higher or more frequent wage progressions 
than the proposed rule, would require more frequent program reviews, or 
require more training for instructors or protections for apprentices 
may all be acceptable deviations.
    Proposed Sec.  29.27(b)(2) would identify the Strategic Planning 
Elements to be submitted as part of the State Apprenticeship Plan. 
Strategic planning elements provide an opportunity for the SAA to 
develop a vision for expanding and improving the registered 
apprenticeship model in its respective State, something that is 
integral to the robust cooperation between OA and SAAs. The absence of 
strategic alignment in the current recognition process limits OA's 
ability to promote and embed high-quality apprenticeship as a talent 
development strategy within States. Increased Federal benefits and 
strategies tied to the leveraging of registered apprenticeship programs 
have created a need to ensure further cooperation by SAAs to perform a 
strategic role in the State's strategic workforce initiatives. Examples 
of this increased need include the passage of WIOA and the strategic 
role registered apprenticeship programs are designed to play in 
fostering registered apprenticeship strategies, and the need to ensure 
an active role in promoting equity in apprenticeship in light of both 
the 29 CFR part 30 regulation and the Department's priorities. By 
mapping out both short-term and long-term strategies through 
utilization of available individual and cross-sectional labor market 
data that speaks to the past, present, and future potential of 
registered apprenticeship as a workforce development strategy, a State 
would be better positioned to work with OA and ETA to grow and 
modernize apprenticeship within the State. The strategic planning 
elements would allow OA to ascertain how an SAA will align with the 
Department's goal of, and initiatives around, driving ongoing 
modernization and system alignment across stakeholders. Components of 
the strategic planning elements would include goals for expanding the 
registered apprenticeship model in the State; goals for promoting 
registered apprenticeship programs for underserved communities in the 
State; goals for aligning a State's registered apprenticeship 
activities with broader education and workforce development activities; 
activities to coordinate with economic development entities within the 
State; and strategies for engaging and leveraging industry 
intermediaries as part of the State's strategy for expanding registered 
apprenticeship programs.
    Proposed Sec.  29.27(b)(3) would identify the Operational Planning 
Elements to be submitted as part of the State Apprenticeship Plan. 
Operational planning elements would identify key items that are 
necessary to the implementation of the vision developed in the 
strategic planning elements and that generally describe how the State 
government agency would perform the roles and responsibilities of an 
SAA described in proposed Sec.  29.26. Proposed Sec.  29.27(b)(3) would 
specify the required operational planning elements when a State is 
submitting its State Apprenticeship Plan for recognition as an SAA 
State every 4 years. The operational planning elements required in an 
initial State Apprenticeship Plan would be: the State's EEO plan, in 
conformity with part 30; the State's technical assistance plan; the 
State's process by which it will meet performance reporting 
requirements of proposed Sec.  29.28 including utilizations details of 
data management tools and data management procedures; the plan for 
conducting program reviews; the State's plans to operationalize 
registration standards; the State's reciprocity policy, in accordance 
with proposed Sec.  29.26(f); and the structure of how the State 
Apprenticeship Council is or will be structured consistent with the 
requirements of proposed Sec.  29.26.
    Proposed Sec.  29.27(b)(4) would identify the assurances to be 
provided to the Administrator as part of the State Apprenticeship Plan. 
The assurances would provide a simplified method for OA to ensure that 
an SAA is meeting other requirements of proposed parts 29 and 30, not 
already identified in the other subsections of proposed Sec.  
29.27(b)(4). The assurances identified would be: that the State will 
provide a process for local registration of National Guidelines for 
Apprenticeship Standards; that the State has the resources necessary to 
operate the SAA and is capable of carrying out all of the 
responsibilities of the SAA; that the State will have a publicly 
available website describing its apprenticeship-related laws, 
regulations, policies, and procedures; and that the State will require 
from sponsors a written assurance that they are complying with the 
requirements of the Support for Veterans in Effective Apprenticeships 
Act of 2019. The Department has determined that these assurances would 
be necessary to align the operations of recognized SAAs with that of 
OA. The Department anticipates that these assurances would help drive 
system alignment and deliver high-quality apprenticeship training to 
all apprentices by all Registration Agencies. The Department has 
proposed these provisions as assurances as a balance of prioritizing 
the most important elements where a narrative is needed for a State 
Apprenticeship Plan versus the need to have an SAA provide a more 
streamlined process for meeting these

[[Page 3222]]

key goals. The Department welcomes comments on these assurances, 
including the value an assurance in this situation brings, whether an 
assurance is sufficient to drive the alignment desired, and what, if 
any, other assurances should be considered in a State Apprenticeship 
Plan.
    Proposed Sec.  29.27(b)(5) would provide for the process by which a 
State government agency operating or seeking to operate as an SAA may 
apply for and receive recognition to register CTE apprenticeship 
programs in their State. States would not be required to seek 
recognition for registering CTE apprenticeship programs under subpart B 
to receive recognition for registering apprenticeship programs under 
subpart A. States that do seek this recognition would be required to 
submit their proposed or current registered CTE apprenticeship laws as 
described in proposed Sec.  29.24(g)(8) as part of their State 
Apprenticeship Plan or modification. Additionally, this section would 
include the requirement that the written agreement between the 
Registration Agency in proposed Sec.  29.24(a)(2) would be submitted 
with the State Apprenticeship Plan so that OA can ascertain that this 
requirement has been met prior to granting recognition. Lastly, the 
State Apprenticeship Plan must include a narrative description of how 
the State would seek to develop and expand registered CTE 
apprenticeship programs in the State. The Department is requiring this 
to ensure strategic alignment for the SAA in their strategies for 
expanding both registered apprenticeship under subpart A as well as 
registered CTE apprenticeship under subpart B.
    Proposed paragraph (c) explains the designations that OA would 
convey upon review of a State Apprenticeship Plan submitted by a State. 
The Department anticipates that this approach would better ensure that 
it can both further its goal of driving system alignment and high-
quality apprenticeship training across the National Apprenticeship 
System and provide flexibility to States in transitioning to the State 
planning process.
    Proposed Sec.  29.27(c)(1) would describe the conditions that must 
be met for OA to convey full recognition. The Department has determined 
that the State Apprenticeship Plan must demonstrate all conditions in 
proposed Sec.  29.27(c)(1) for full recognition because they would be 
necessary to ensure the State has addressed all of the requirements in 
the proposed rule regarding the increased role that the Department 
envisions for SAAs. Those requirements would include, but are not 
limited to, minimum labor standards, a comprehensive State 
Apprenticeship Plan that addresses all of the strategic and operational 
elements necessary to drive the expansion of quality registered 
apprenticeship programs, clear commitments and progress in promoting 
equity throughout the system, and strategies that integrate workforce 
development and educational activities.
    Proposed Sec.  29.27(c)(2) describes when OA would convey 
provisional recognition. Provisionally approved SAAs have provided a 
minimally sufficient State Apprenticeship Plan that has met the minimum 
requirements and standards set forth in proposed parts 29 and 30. 
However, these are plans that the Department has determined have one or 
more deficiencies regarding the State's planning that prevent the plan 
from obtaining full recognition. Proposed Sec.  29.27(c)(2)(i) 
describes the deficiencies that may result in provisional recognition, 
including strategic planning or operational elements that are not 
complete or responsive, such as not having a technical assistance 
strategy for the period covering the State Apprenticeship Plan.
    Proposed Sec.  29.27(c)(2)(ii) explains that OA would provide 
technical assistance to States as they develop, and prior to the 
submission of, any subsequent State Apprenticeship Plan, either a 
modification of the initially submitted plan or a new 4-year plan. OA 
would require the submission and approval of a corrective action plan 
for the purpose of obtaining full recognition. A corrective action plan 
would detail a set of actionable steps the SAA will undertake to 
address areas of concern in the State Apprenticeship Plan, including a 
timeline for the implementation of such activities. This provision also 
would contain the requirement that a State may not be provisionally 
recognized for more than one full planning cycle. This would allow 
provisionally recognized States the time needed to make the necessary 
adjustments to be fully recognized.
    Proposed paragraph (c)(3) would describe denial of recognition. 
Proposed Sec.  29.27(c)(3)(i) specifies that denial of recognition 
would mean that the Administrator has determined that the State's 
apprenticeship laws do not meet the minimum standards described in 
proposed Sec.  29.27(b)(1). Proposed Sec.  29.27(c)(3)(ii) would 
specify that denial of recognition would also be conveyed when the 
Administrator is unable to fully approve a State Apprenticeship Plan 
after the State was provisionally recognized for one full planning 
cycle as described in proposed Sec.  29.27(c)(2). Proposed Sec.  
29.27(c)(3)(iii) goes on to explain that the processes and procedures 
applicable to such denial of recognition would be described in proposed 
Sec.  29.29.
    Proposed paragraph (d) continues the concept in the current 
regulation at 29 CFR 29.13(i) that OA would also retain its existing 
authority to register an apprenticeship program on either a local 
registration or (with respect to National Program Standards for 
Apprenticeship) nationwide basis in instances where such an action 
would serve the interests of the National Apprenticeship System.
    Proposed paragraph (e) provides that OA would monitor and review 
SAAs to ensure they are operating consistent with their approved State 
Apprenticeship Plans. While the State Apprenticeship Plan would provide 
a regular 4-year cycle for the review of SAAs through their plan 
submissions, certain instances may warrant more frequent reviews. For 
example, if a State is provisionally granted recognition, OA may 
schedule a review to go over the corrective action plan and provide 
technical assistance to ensure the agreed upon benchmarks in the plan 
are being met or conclude that a revision is needed. The Department is 
interested in any comments about when periodic reviews could or should 
happen outside of the 4-year State apprenticeship planning cycle.
    Proposed paragraph (f) would provide for the derecognition of an 
SAA, whether fully or provisionally approved, when the Administrator 
determines that an SAA is not operating consistent with its approved 
State Apprenticeship Plan, and references the procedures described in 
proposed Sec.  29.29 below.
    Proposed paragraph (g) explains that OA may suspend an SAA's 
authority to register new apprenticeship programs where a corrective 
action plan is not submitted for review and approval, as contemplated 
by proposed paragraph (c)(2). Proposed paragraph (g) goes on to 
describe the process by which the suspension would take effect and the 
duration of the suspension. The Administrator would provide written 
notice to the State of the suspension, which would take effect 30 
calendar days after the date of the written notice. The suspension 
would end upon the State's submission of a corrective action plan, as 
described in proposed paragraph (c)(2). The Department has determined 
that this provision is necessary to ensure that States submit 
corrective action plans to OA to address their provisional status and a 
plan to

[[Page 3223]]

make the changes necessary for full recognition. While an SAA that does 
not submit a corrective action plan as part of its requirement for 
provisional recognition would ultimately be considered for 
derecognition proceedings, the Department envisions this suspension 
provision as an interim step that the Administrator may take prior to 
derecognition. The Department is interested in comments regarding an 
interim approach towards accountability in this regard, including if 
other interim steps should be considered, or if a State's failure to 
submit corrective action plans should immediately lead to denial of a 
State Apprenticeship Plan and derecognition.
    Proposed paragraph (h) explains that where a State Apprenticeship 
Plan is denied or where the Administrator derecognizes an SAA, a State 
would not be permitted to have a State government agency function as an 
SAA. Specifically, a State would not be authorized to conduct 
operations and activities, for Federal purposes, in connection with 
those responsibilities enumerated in proposed Sec.  29.26(a). Further, 
proposed paragraph (h) explains that this prohibition would continue 
until OA conveys full or provisional recognition to a State 
Apprenticeship Plan. States that have been denied recognition or 
derecognized may always submit an updated or new State Apprenticeship 
Plan to address the recognition requirements.
Section 29.28--Reporting Requirements for State Apprenticeship Agencies
    One of the key goals of the Department's proposed rule is the 
collection of accurate and complete registered apprenticeship data. A 
key goal for the Department to fully and accurately oversee the 
National Apprenticeship System, is to have comprehensive and complete 
data from the entire system, including SAAs. While the existing 
regulations do not impose a specific requirement regarding data 
collection from SAAs, OA and SAAs have made great strides to enhance 
and increase SAA data reporting to OA. While those voluntary 
submissions have greatly increased OA's ability to oversee the system 
and report its successes to stakeholders, the lack of a consistent 
reporting requirement leaves significant gaps in the quality of data. 
Data collection requirements that fail to mandate a central repository 
for program data and the data of individual apprentices do not give 
sufficient credence to the importance of data to the continued growth 
and modernization of apprenticeship. Data collection and data integrity 
are not optional tools to optimize the National Apprenticeship System, 
but rather compulsory elements. Replacing voluntary recommendations 
with mandatory requirements impresses upon SAAs the Department's 
commitment to the creation and sustainment of a transparent, unified 
data system.
    Proposed Sec.  29.28 would establish requirements for SAAs to 
collect and report apprentice and sponsor data and information to the 
Department. These requirements would include at least quarterly 
submission of individual apprentice records and annual submission of 
sponsor records, as defined in proposed Sec.  29.25. This requirement 
could be met by using the Department-provided case management system, 
such as many SAAs currently do with RAPIDS, or creating interoperable 
mechanisms in which the required information is reported accurately, 
timely, and with validity in the format determined by the Administrator 
on a quarterly and annual basis. Utilizing a central information and 
case management system provided by the Department would defer costs for 
States related to the development and ongoing maintenance of such 
systems and make available technical assistance to States to enable the 
technological expertise and capacity to reliably and validly enter 
accurate information to manage registered apprenticeship program 
participants while also fulfilling reporting requirements.
    The purpose of this proposed provision is to facilitate 
modernization of the National Apprenticeship System, as recommended in 
the ACA's 2022 Interim Report,\188\ and to increase the SAAs' reporting 
to OA's RAPIDS, by making data collection and reporting more uniform 
and standardized across the Department's and SAAs' case management 
systems. Creating a more unified and standardized approach to data 
collection and reporting also would enable system transparency and 
accountability. Greater transparency is another recommendation in the 
ACA's 2022 Interim Report, as enabling greater transparency can help 
States develop validation strategies for more reliable data.\189\ 
Furthermore, increased accountability can help States assess program 
quality and support equity strategies to increase registered 
apprenticeship program access, participation, and improve outcomes for 
underserved communities. Through more robust data collection and 
reporting, National Apprenticeship System stakeholders can make more 
informed, data-driven decisions about how to best target investments in 
registered apprenticeship programs.
---------------------------------------------------------------------------

    \188\ ACA recommendations from its 2022 Interim Report related 
to the uniform collection of apprenticeship data on a national scale 
include:
    <bullet> Analyze how to encourage more State participation in 
RAPIDS and consider withholding OA State-level funding for States 
that do not fully participate in the RAPIDS system. Encourage States 
that do not participate in the RAPIDS system, or participate only 
partially, to take part in the collection and sharing of 
apprenticeship data for the benefit of the national dataset 
(RAPIDS).
    <bullet> Encourage sponsors and apprentices to provide requested 
data for the benefit of a robust, national apprenticeship dataset.
    <bullet> To assist stakeholders, including States and sponsors, 
with improved data collection and usage, OA should consider 
investments or other financial support to incentivize complete and 
accurate data collection.
    ACA, ``Interim Report to the Secretary of Labor,'' May 16, 2022, 
https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
    \189\ One recommendation from the ACA's 2022 Interim Report was 
to ``[m]ake RAPIDS data more publicly available and accessible to 
improve transparency and accountability, and enable improved 
insights and analysis related to apprenticeship.'' ACA, ``Interim 
Report to the Secretary of Labor,'' May 16, 2022, at 16, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
---------------------------------------------------------------------------

    States would also be able to have a framework for disaggregating 
demographic data to support planning requirements and align State 
planning goals with State strategic planning efforts under WIOA and 
Perkins. Increased data collection and reporting can facilitate 
opportunities for States to rigorously evaluate and assess 
apprenticeship pathways. Understanding that many States have their own 
case management systems for sponsor and apprentice data, this 
modernization effort would support flexibility and create mechanisms 
for increased interoperability.
    Proposed Sec.  29.28(a) would establish the requirement that 
information about individual apprentices and sponsors must be collected 
by the Registration Agency, which is described in proposed Sec.  
29.25(a) and (b). This requirement makes clear that SAAs would be 
responsible for reporting to the Department the information that 
sponsors report to the Registration Agency under proposed Sec.  
29.25(a) and (b). These requirements are key to improving collection of 
demographic information that would enable the Department to better 
disaggregate and leverage such data to develop and track indices 
relating to equity. This data analysis can serve to inform and drive 
improvements towards greater equity in the apprenticeship system. These 
goals are not only important to the Department, they are also aligned 
to the recommendations from the ACA to

[[Page 3224]]

increase SAA reporting to OA on this subject.
    These changes not only serve the goals of greater transparency and 
equity, but would also enable the Department to modernize its systems 
to capture more fully an apprentice's progress throughout the program, 
including the capture of licenses, degrees, and the full scope of 
credentials earned through registered apprenticeship programs, as 
recommended by the ACA.
    Proposed Sec.  29.28(b) would establish the requirement that 
information collected under proposed Sec.  29.25(a) must be reported by 
the Registration Agency to the Department on at least a quarterly 
basis. Under the current approach, this type of reporting is done 
primarily through sponsors and Registration Agencies entering data into 
the RAPIDS system, and the Department anticipates that approach would 
continue. This would ensure that Registration Agencies are responsible 
for reporting quarterly to the Department the information that sponsors 
report to the Registration Agency under proposed Sec.  29.25(a). 
Reporting on a quarterly basis would align the reporting cadence with 
WIOA and most other workforce programs, and enable more timely 
availability of information as well as more timely identification of 
any reporting difficulties and deficiencies so that those issues can be 
resolved in advance of the submission of annual reports. Quarterly 
reporting also would enable the identification of patterns that occur 
within the year, such as seasonal changes in employment patterns.
    Proposed Sec.  29.28 (c) would establish the requirement that 
information collected under proposed Sec.  29.25(b) must be reported by 
the Registration Agency to the Department on an annual basis. Under the 
current approach, this type of reporting is done primarily through 
sponsors and Registration Agencies entering data into the RAPIDS 
system, and the Department anticipates that approach would continue. 
This would ensure that Registration Agencies are responsible for 
reporting annually to the Department the information that sponsors 
report to the Registration Agency under proposed Sec.  29.25(b).
    Proposed Sec.  29.28(d) would establish that the Department will 
make the information collected under proposed Sec.  29.28(c) publicly 
available. The Department anticipates utilizing a public-facing website 
on apprenticeship.gov to share this information. Information shared 
will include raw data in a variety of file formats. This would be 
responsive to the recommendation from the ACA to make disaggregated 
demographic data publicly available and modernize the National 
Apprenticeship System through quality data and analytics.
    Proposed Sec.  29.28(e) would establish that to meet the 
requirements in proposed Sec.  29.28(a) through (c), SAAs must either 
utilize a case management system provided by the Department, such as 
RAPIDS, or maintain a State system that is capable of reporting 
individual apprentice record level information to the Department in a 
manner that meets requirements prescribed by the Administrator and 
minimum security requirements consistent with FERPA. This would be a 
vital component to ensure that the data reported to OA is consistent 
nationally and across State lines. The Department is not proposing to 
mandate the use of RAPIDS or a future system; however, as of the end of 
fiscal year 2023, 19 States do utilize RAPIDS as their primary system 
and it is a service available to them to assist in meeting these 
requirements and 11 States use an external case management system, 
uploading results into RAPIDS on a quarterly basis. Separately, the 
Department acknowledges that some SAAs have their own systems and may 
collect additional information that is important for their 
stakeholders. This proposal would not require them to no longer use 
that system but would require that they report in a consistent format.
Section 29.29--Denial of a State Apprenticeship Plan for Recognition as 
a State Apprenticeship Agency and Derecognition of Existing State 
Apprenticeship Agencies
    The current regulations at Sec.  29.13 include a paragraph 
regarding the denial of an application for a State to become an SAA as 
well as a paragraph regarding procedures when an SAA voluntarily 
withdraws from recognition. The current regulations also feature a 
separate section describing the derecognition process at Sec.  29.14. 
Proposed Sec.  29.29 is new and would consolidate the processes and 
procedures concerning the denial of a State Apprenticeship Plan and the 
derecognition of an existing SAA into one section. Proposed Sec.  29.29 
would update the existing language and align these existing processes 
with the new State apprenticeship planning process in proposed Sec.  
29.27. The procedures concerning requests for a hearing after a final 
determination denying recognition or derecognizing an existing SAA 
would largely be the same as the current regulation but have been 
updated to align with the deregistration hearing procedures in proposed 
Sec.  29.21. Further, State obligations after derecognition of an 
existing SAA would largely retain the language in the current 
regulation.
    Proposed paragraph (a) would outline the processes and procedures 
when OA denies a State Apprenticeship Plan or derecognizes an existing 
SAA.
    Proposed Sec.  29.29(a)(1) explains that a written notice would be 
provided to a State when OA denies a State Apprenticeship Plan, 
pursuant to proposed Sec.  29.27(c)(3), or derecognizes an existing 
SAA, pursuant to proposed Sec.  29.27(f). The notice would include the 
reason, or reasons, for the denial or derecognition. The notice would 
also identify what remedial measures the State will need to take to 
address the denial or derecognition. Finally, the notice would set a 
timeline for addressing those measures, which must be no longer than 12 
months after the date of the written notice. Corrective action plans 
would be required in the case of a provisionally recognized SAA. Here, 
in the case of derecognition, corrective action plans would not exist. 
Instead, upon issuance of the written notice that is provided to an SAA 
that it will be derecognized including the reasons leading to the 
derecognition, the State would be given a timeline to complete 
necessary remedial measures to address the reasons leading to 
derecognition. The inclusion of a timeline is necessary so that a State 
can make the necessary changes or take the necessary actions to ensure 
compliance. If a State does not make the necessary changes or take the 
necessary actions, the Department would proceed with the denial or 
derecognition procedures described in proposed Sec.  29.29. The 
Department acknowledges that the reason for the denial or derecognition 
will vary based on the facts specific to the scenario, and, as a 
result, the time needed to address those measures will vary. However, 
the Department believes that a specific timeframe is necessary to 
ensure that the reason for denial or derecognition would be addressed 
in an expeditious manner. Accordingly, the Department determined that 
proposed Sec.  29.29(a)(1) should include a provision specifying that a 
State would be given no longer than 12 months after the date of the 
written notice to address identified remedial measures. The Department 
determined that 12 months would be an appropriate timeframe to allow a 
State to make potential changes to their State laws, which may require 
a significant amount of State legislative session scheduling. However, 
the Department does not want this timeframe to remain open-ended, and

[[Page 3225]]

12 months would provide the urgency needed to make the necessary 
changes.
    Proposed Sec.  29.29(a)(2) is based on the existing regulation and 
would explain that if a State does not address or fails to remedy the 
reason(s) for the denial or derecognition in the timeframe identified 
in the written notice, the Administrator may issue a final 
determination. In the final determination, the Administrator would 
include the reason(s) for the denial or derecognition and the State 
would be provided an opportunity to request a hearing within 30 
calendar days of the date of the final determination. The Department 
would provide notice to the public if a State has been derecognized by 
the Department.
    Proposed Sec.  29.29(a)(3) is based on existing provisions at Sec.  
29.13(g) and Sec.  29.14(c)(3). This section would describe the 
procedural requirements when a State requests a hearing upon receiving 
the Administrator's final determination. Proposed Sec.  29.29(a)(3) 
would provide that a request for a hearing must be sent to the OALJ and 
the Administrator, who, in turn, transmits the request to the Office of 
the Solicitor. The Administrator would also promptly provide the OALJ 
with the administrative file containing all relevant documents relied 
upon by the Administrator in making the final determination.
    Proposed Sec.  29.29(a)(4) and (5) are based on the existing 
provisions at Sec.  29.13(g)(1) through (4), respectively. Both 
proposed Sec.  29.29(a)(4) and (5) have been updated to align with the 
procedures for hearings on deregistration, described in proposed Sec.  
29.21.
    Proposed Sec.  29.26(a)(6) would describe the procedures applicable 
when an SAA voluntarily seeks withdrawal from recognition. This section 
would recognize that States have the discretion to voluntarily 
relinquish recognition of recognized SAAs.
    Proposed paragraph (b) is based on existing provisions at Sec.  
29.14(d) and (e) and would describe what actions the Administrator must 
take when an existing SAA is denied recognition, derecognized, or 
voluntarily seeks withdrawal of derecognition. Proposed Sec.  
29.29(b)(1) would be the same as existing Sec.  29.14(d)(1). Proposed 
Sec.  29.29(b)(2) would combine existing Sec.  29.14(d)(2) and (e) into 
a single provision and also update the procedures described therein. 
Specifically, proposed Sec.  29.29(b)(2) would set forth a requirement 
that the Administrator must notify sponsors, in the State where the SAA 
is derecognized, that the Department will cease to recognize their 
programs that were previously registered unless the sponsor submits an 
application for registration with OA within 45 calendar days after the 
date of the final agency determination to derecognize the SAA. Proposed 
Sec.  29.29(b)(2) goes on to describe that the sponsor's application 
for registration would be reviewed in accordance with the requirements 
and procedures described in proposed Sec.  29.10. Within 90 calendar 
days of receiving the application for registration, OA would review the 
application to determine if it meets the requirements for registration 
described in proposed Sec.  29.10(a) and would approve any applications 
for registration in accordance with the procedures and requirements 
described in proposed Sec.  29.10(b). OA would deny any applications 
for registration if the application does not meet the requirements in 
proposed Sec.  29.10(b). The procedures described in proposed Sec.  
29.10(c) would apply to any applications for registration that are 
declined.
    Proposed paragraph (c) is based on a requirement at existing Sec.  
29.14(h) and would explain what a State must do when its existing SAA 
has been denied recognition or derecognized by OA or has voluntarily 
withdrawn from recognition. Proposed Sec.  29.29(c)(1) would describe 
the transfer of apprenticeship-related records and information to the 
Department after derecognition. Proposed Sec.  29.29(c)(2) would update 
language from the current regulation to align with proposed paragraph 
(b), adding an additional requirement that the State must notify 
sponsors that their programs will no longer be registered for Federal 
purposes as of 45 calendar days after the date of the Administrator's 
final determination. Sponsors interested in registration with OA must 
submit an application for registration to OA, pursuant to proposed 
paragraph (b). Finally, proposed Sec.  29.29(c)(3) would require that 
States must cooperate fully with the Administrator during a transition 
period. For example, the Department, during such a transition, 
envisions that the State would maintain open lines of communication 
with the Department and would facilitate the transfer of pertinent 
records and information in a timely manner. The Department includes 
this proposed provision to ensure smooth, seamless continuity of 
operations in the National Apprenticeship System, and to further 
support the Department in fulfilling its obligations and 
responsibilities to apprentices and program sponsors.
Section 29.30--Apprenticeship Requirements in Other Laws
    Proposed Sec.  29.30 is designed to help the National 
Apprenticeship System integrate with other Federal or State laws that 
have been designed to support the expansion of registered 
apprenticeship programs by providing a Certificate of Participation to 
stakeholders, which provides information on apprentice participation 
that may be required by other Federal or State laws. This provision 
would seek to address situations where information on apprentices in 
registered apprenticeship programs is necessary to document compliance 
with Federal and State laws separate from the NAA. For example, the 
Department has a long history of providing information on apprentice 
participation to satisfy the prevailing wage requirements of the Davis-
Bacon and related Acts and 29 CFR part 5. Additionally, with the 
expansion of registered apprenticeship as an allowable activity under 
WIOA, the apprenticeship requirements of the IRA, and other Federal and 
State laws that provide Federal and State benefits associated with 
utilizing registered apprenticeship, there is, and will continue to be, 
a need for OA or SAAs to provide information to Federal and State 
officials responsible for implementing Federal and State laws, sponsors 
or participating employers seeking Federal or State benefits for 
participation in registered apprenticeship programs, workforce 
development system partners funding individual training accounts or on-
the-job training contracts under WIOA with registered apprenticeship 
programs, and potentially future stakeholders as Federal and State 
policymakers continue to embrace the registered apprenticeship model. 
The Department is adding this provision to make it clear that provision 
of this information would be permissible to allow other, related laws 
to be effectively implemented provided that it would be done so 
consistent with the requirement of any applicable Federal or State 
privacy law or other relevant law.

E. Part 30 Revisions

    As part of this proposed rule for 29 CFR part 29, the Department is 
proposing technical and conforming edits to 29 CFR part 30, which would 
address EEO in apprenticeship. The Department invites commenters to 
opine on the proposed technical and conforming edits to part 30; 
however, the scope of these changes is narrow and primarily confined to 
necessary adjustments to align with proposed

[[Page 3226]]

changes to 29 CFR part 29. The Department is fully committed to the 
enhanced alignment of the labor standards of 29 CFR part 29 with the 
part 30 requirements and has proposed changes through part 29 to bring 
about greater alignment. The Department believes that this increased 
alignment between the two parts would enhance the implementation of 29 
CFR part 30 across the National Apprenticeship System and promote 
greater equity and opportunity for job seekers and apprentices 
nationwide. Correspondingly, the Department proposes limited changes to 
29 CFR part 30 to ensure consistency with the quality enhancements 
proposed for 29 CFR part 29 in this rulemaking.
    The Department proposes a technical change to replace all cross-
references in part 30 that currently cite to specific sections of part 
29 with citations that simply cite to ``part 29.'' The Department 
proposes this change to remove what will now be outdated references and 
to avoid the need to update these cross-references again following any 
future reorganization of part 29. This change would affect the 
following sections: 29 CFR 30.3(b)(2)(i), 30.10(a), and 30.12(a)(3); 
the introductory language of 29 CFR 30.18(a)(1); 29 CFR 30.18(a)(3) and 
(4); the introductory language of 29 CFR 30.18(c); and 29 CFR 
30.18(c)(3) and (d).
    The Department also proposes a conforming change to replace the 
terms ``EEO compliance review'' and ``compliance review'' with 
``program review'' throughout part 30. This would be consistent with 
the terminology being proposed in part 29 and more accurately reflects 
the scope of OA's reviews, which include both parts 29 and 30 
components. This change is strictly one of terminology and the 
Department is not proposing to change anything about the nature of the 
reviews as they are described in part 30. This terminology change would 
affect the following sections: 29 CFR 30.5(b)(2) and (c)(6), 
30.7(d)(2)(ii), 30.12(f), and 30.13(a), (b), and (c); the introductory 
language to 29 CFR 30.15; and 29 CFR 30.17(a)(3) and 30.18(b) and 
(c)(1).
Section 30.2--Definitions
    Proposed 29 CFR 30.2 would revise the definition section to cite to 
the definitions of 29 CFR 29.2. The Department is proposing this change 
to place all definitions related to the National Apprenticeship System 
in one section. The Department considers this technical change an 
important one for the regulated community to be able to navigate and 
access all the required definitions in one section of regulatory text 
more easily. The Department is proposing all the definitions that were 
in part 30, but not in part 29, to be inserted into Sec.  29.2, with 
these changes discussed in that section.
Section 30.13--Program reviews
    In addition to the proposed terminology change to ``program 
reviews,'' discussed above, the Department proposes to amend Sec.  
30.13 by replacing references to ``business days'' with simply 
``days.'' Days would be defined in 29 CFR 29.2 to mean calendar days, 
and not business days or workdays. The Department is proposing to use 
calendar days instead of business days for consistency with part 29 and 
to improve clarity for the regulated community. In situations where 
sponsors currently have 30 business days to comply or respond to a 
review finding, under this proposed rule they would have 45 calendar 
days to do so. The Department views these timeframes as roughly 
equivalent and would not intend to alter the substantive amount of 
working time within which sponsors would need to act. The Department is 
including a reference to the EEO requirements contained in this part to 
ensure that as the Department is proposing the term program reviews to 
address compliance with both parts 29 and 30, this edit would ensure 
the regulatory text of part 30 is in alignment with this provision.
Section 30.14--Complaints
    The Department proposes to add a new subordinate paragraph 
(c)(1)(vi) to Sec.  30.14(c), which would require the Registration 
Agency to protect the identity of the complainant to the extent 
practicable. This addition would maintain consistency with the 
complaint process being proposed under part 29. The Department invites 
comments on the substance of this provision under Sec.  29.17(e)(2), 
where the rationale is more fully laid out.
Section 30.15--Enforcement Actions
    The Department proposes to amend Sec.  30.15(b) by deleting ``or if 
the Registration Agency does not institute such proceedings within 45 
days of the start of the suspension, the suspension is lifted'' at the 
end of the paragraph. This alteration would maintain consistency 
between the suspension and enforcement procedures under both parts 29 
and 30. This change would also permit the Registration Agency to impose 
a suspension for a set period of time without being required to proceed 
to deregistration proceedings within 45 days of the imposition of the 
suspension, thus providing sponsors and Registration Agencies more time 
to resolve any deficiencies.
Section 30.20--Severability
    The Department proposes to include a severability provision, 
identical to that proposed in 29 CFR 29.5, as part of the conforming 
edits being proposed for part 30 to maintain consistency between the 
two parts.

V. Regulatory Analysis and Review

A. Executive Orders 12866 (Regulatory Planning and Review), 14094 
(Modernizing Regulatory Review), and 13563 (Improving Regulation and 
Regulatory Review)

    Under E.O. 12866, OMB's Office of Information and Regulatory 
Affairs (OIRA) determines whether a regulatory action is significant 
and, therefore, subject to the requirements of the executive order and 
review by OMB. See 58 FR 51735 (Oct. 4, 1993). Section 1(b) of E.O. 
14094 amends sec. 3(f) of E.O. 12866 to define a ``significant 
regulatory action'' as an action that is likely to result in a 
regulation that may: (1) have an annual effect on the economy of $200 
million or more (adjusted every 3 years by the Administrator of OIRA 
for changes in gross domestic product), or adversely affect in a 
material way the economy, a sector of the economy, productivity, 
competition, jobs, the environment, public health or safety, or State, 
local, territorial, or Tribal governments or communities; (2) create a 
serious inconsistency or otherwise interfere with an action taken or 
planned by another agency; (3) materially alter the budgetary impact of 
entitlements, grants, user fees, or loan programs, or the rights and 
obligations of recipients thereof; or (4) raise legal or policy issues 
for which centralized review would meaningfully further the President's 
priorities or the principles set forth in E.O. 12866. See 88 FR 21879 
(Apr. 11, 2023). This proposed rule is a significant regulatory action 
under section 3(f)(1) of E.O. 12866, as amended by E.O. 14094.
    E.O. 13563 directs agencies to propose or adopt a regulation only 
upon a reasoned determination that its benefits justify its costs; the 
regulation is tailored to impose the least burden on society, 
consistent with achieving the regulatory objectives; and in choosing 
among alternative regulatory approaches, the agency has selected those 
approaches that maximize net benefits. E.O. 13563 recognizes that some 
benefits are difficult to quantify and provides that, where appropriate 
and permitted by law, agencies may consider and discuss

[[Page 3227]]

qualitatively values that are difficult or impossible to quantify, 
including equity, human dignity, fairness, and distributive impacts.
1. Summary of the Economic Analysis
    The Department anticipates that the proposed rule would result in 
benefits, costs, cost savings, and transfers for sponsors, 
participating employers, apprentices, and society. The benefits of the 
proposed rule are described qualitatively in section V.A.2 (Benefits). 
The estimated costs are explained in sections V.A.3 (Quantitative 
Analysis Considerations), V.A.4 (Subject-by-Subject Analysis), and 
V.A.5 (Summary of Costs). The nonquantifiable costs and cost savings 
are described qualitatively in section V.A.6 (Nonquantifiable Costs and 
Cost Savings). The nonquantifiable transfer payments are described 
qualitatively in section V.A.7 (Nonquantifiable Transfer Payments). An 
analysis of distributional impacts of the proposed rule is in section 
V.A.8 (Distributional Impact Analysis). Finally, the regulatory 
alternatives are explained in section V.A.9 (Regulatory Alternatives).
    The quantified costs of the proposed rule for participating 
employers are rule familiarization and recordkeeping. The quantified 
costs of the proposed rule for sponsors include rule familiarization, 
on-the-job training documentation, wage analysis and career 
development, data collection and reporting, program registration, 
program standards and adoption agreement, administration of end-point 
assessments to apprentices and program reviews. The quantified costs of 
the proposed rule for apprentices include data collection and reporting 
and end-point assessments. The quantified costs of the proposed rule 
for SAAs are associated with rule familiarization, data collection and 
reporting, program registration, program reviews, data sharing, 
reciprocity of registration, and submission of State Apprenticeship 
Plans. The quantified costs of the proposed rule for the Federal 
Government are associated with the occupation suitability determination 
process, program registration, National Occupational Standards for 
Apprenticeship, National Program Standards for Apprenticeship, National 
Guidelines for Apprenticeship Standards, end-point assessments, and 
program reviews. The quantified costs of the proposed rule for 
apprentices are the requirement to take an end-point assessment.
    Exhibit 1 shows the total estimated costs of the proposed rule over 
10 years (2025-2034) at discount rates of 3 percent and 7 percent. The 
proposed rule is expected to have first-year costs of $147.9 million in 
2022 dollars. Over the 10-year analysis period, the annualized costs 
are estimated at $151.9 million at a discount rate of 7 percent in 2022 
dollars. In total, over the first 10 years, the proposed rule is 
estimated to result in costs of $1.066 billion at a discount rate of 7 
percent in 2022 dollars. The majority of these costs are from changes 
to registered apprenticeship that would result in an estimated 
annualized cost of $145.9 million at a discount rate of 7 percent and 
total 10-year costs of $1.024 billion at a discount rate of 7 percent. 
The creation of registered CTE apprenticeship is expected to result in 
lower costs than the changes to registered apprenticeship as the 
Department anticipates that it would be a smaller program. The 
Department estimates annualized costs from registered CTE 
apprenticeship at $6.0 million at a 7-percent discount rate and total 
10-year costs of $42.1 million at a 7-percent discount rate.

                                           Exhibit 1--Estimated Costs
                                                [2022 $millions]
----------------------------------------------------------------------------------------------------------------
                                                                  Registered
                             Year                               apprenticeship     CTE  program     Total costs
                                                                 program costs        costs
----------------------------------------------------------------------------------------------------------------
1............................................................            $147.2             $0.8          $147.9
2............................................................             126.8              2.5           129.3
3............................................................             131.9              3.7           135.6
4............................................................             137.3              4.9           142.2
5............................................................             142.6              6.1           148.8
6............................................................             148.2              7.3           155.5
7............................................................             153.3              8.6           161.9
8............................................................             158.7              9.7           168.4
9............................................................             164.1             11.0           175.0
10...........................................................             169.6             12.2           181.8
----------------------------------------------------------------------------------------------------------------
    Annualized, 3% discount rate, 10 years...................             147.0              6.4           153.4
    Annualized, 7% discount rate, 10 years...................             145.9              6.0           151.9
----------------------------------------------------------------------------------------------------------------
    Total, 3% discount rate, 10 years........................           1,254.2             54.4         1,308.6
    Total, 7% discount rate, 10 years........................           1,024.5             42.1         1,066.6
----------------------------------------------------------------------------------------------------------------

2. Benefits
    This section provides a qualitative description of the anticipated 
benefits associated with the proposed rule. The Department is unable to 
quantify the anticipated benefits due to data limitations and therefore 
is providing a qualitative description of those benefits. The 
Department seeks public comments and inputs to allow for quantification 
of the benefits in the final rule.
a. Benefits From Improvements and Updates to Registered Apprenticeship
    There are numerous benefits that are expected to result from the 
updates to registered apprenticeship programs, including greater worker 
protections, advancements in equity, higher quality apprenticeship 
training, and enhanced program transparency. The addition of program 
reviews would increase worker protections and program transparency 
through reviews of registered apprenticeship programs to ensure 
compliance and identify any deficiencies that require remedy. In 
addition, program reviews must be conducted if the Registration Agency 
receives credible information or allegations that the program is not 
being operated in accordance with program standards and requirements. 
This requirement would offer greater

[[Page 3228]]

accountability in the operation of apprenticeship programs and provide 
an avenue for investigating any potential instances of noncompliance. 
In doing so, the Department would create more safeguards for 
apprentices to ensure that they have healthy and safe working and 
learning environments.
    The proposed updates to registered apprenticeship would also yield 
additional benefits to apprentices through changes to the process for 
determining occupations suitable for apprenticeship. The Department's 
proposal would create a more objective, proactive, and transparent 
process for determining occupations suitable for apprenticeship, which 
would allow occupations in non-traditional apprenticeship industries to 
grow while providing protections against the splintering of existing 
occupations, which could have a negative impact on workers' wages and 
job quality. These modifications also would reinforce that new 
occupations suitable for apprenticeship must meet industry-recognized 
criteria that place workers on a pathway to earning an income that 
allows them to support themselves and their families, with a fair 
opportunity for career advancement and economic mobility.
b. General Apprenticeship Benefits From the Creation of the Registered 
CTE Apprenticeship Model
    The proposed registered CTE apprenticeship model would offer 
multiple benefits to individuals who are seeking career opportunities 
and looking to develop the skills necessary to be successful in a 
certain field. Apprenticeships help workers to master both hard skills 
that are relevant to occupations, and soft skills such as 
communication, problem-solving, respectful workplace behavior, and 
teamwork, all while being paid for their work.\190\ Development of 
these skills is highly valued by potential employers and offers 
benefits for future employment opportunities. Studies have found that 
individuals who participated in a registered apprenticeship program 
were 8.6 percent more likely than nonparticipants to be employed 6 and 
9 years after enrollment.\191\ In addition, apprenticeship participants 
and those who completed registered apprenticeship programs were also 
found to have greater lifetime earnings benefits compared to those who 
had not participated in or completed a registered apprenticeship 
program.\192\ These benefits amounted to $100,000 in lifetime earnings 
benefits for registered apprenticeship participants and over $240,000 
for those who completed registered apprenticeship programs.\193\ It 
should be noted, however, that the results of these studies are 
correlational in nature. Apprenticeships not only provide individuals 
with valuable training and skill development without requiring a period 
of unpaid training time--or even requiring educational loans--but also 
serve a long-term benefit in overall career success.
---------------------------------------------------------------------------

    \190\ Robert Lerman, ``Expanding Apprenticeship--A Way to 
Enhance Skills and Careers,'' Apr. 15, 2010, https://www2.ed.gov/PDFDocs/college-completion/03-expanding-apprenticeship.pdf.
    \191\ Debbie Reed et al., ``An Effectiveness Assessment and 
Cost-Benefit Analysis of Registered Apprenticeship in Ten States,'' 
July 25, 2012, https://mathematica.org/publications/an-effectiveness-assessment-and-costbenefit-analysis-of-registered-apprenticeship-in-10-states.
    \192\ Ibid.
    \193\ Ibid.
---------------------------------------------------------------------------

    For businesses sponsoring a program, registration provides a 
structure and framework for developing a diverse pool of skilled 
workers critical to a company's success and a positive net benefit 
through value creation and an ROI. One report shows that utilizing 
apprenticeships can contribute to the financial success of a business 
by reducing employee turnover; promoting a diverse, inclusive, and 
accessible talent pipeline; and contributing to a more positive company 
culture.\194\ In embracing DEIA in the workforce, research shows that 
businesses will outperform less diverse companies in terms of 
profitability. One study found that businesses in the top quartiles for 
gender diversity were 21 percent more likely to experience above-
average profitability than companies in the fourth quartile, while 
companies in the top quartiles for ethnic and cultural diversity were 
35 percent more likely to outperform other companies in terms of 
profitability.\195\ Thus, businesses sponsoring an apprenticeship 
program will not only have the ability to add diversity to their own 
workforce but also may outperform other companies profit-wise. Some 
examples of indirect benefits include ``improved pipeline of skilled 
employees, improved productivity of coworkers, improved firm culture 
and employee engagement and loyalty, reduced turnover, and even process 
or product innovation.'' \196\ Another report shows that registered 
apprenticeship programs help eliminate the biasing factors that 
traditionally create barriers to entry and promotion for workers. This 
opportunity creates equity for those who are part of registered 
apprenticeship programs and allows for fairness and transparency 
throughout the process.\197\
---------------------------------------------------------------------------

    \194\ Accenture, ``Getting to Equal: The Disability Inclusion 
Advantage,'' 2018, https://www.accenture.com/_acnmedia/PDF-89/Accenture-Disability-Inclusion-Research-Report.pdf.
    \195\ Dame Vivian Hunt, Lareina Yee, Sara Prince, and Sundiatu 
Dixon-Fyle, ``Delivering through diversity,'' Jan. 18, 2018, https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/delivering-through-diversity.
    \196\ Kevin Hollenbeck, Daniel Kuehn, Robert Lerman, and Siobhan 
Mills De La Rosa, ``Do Employers Earn Positive Returns to 
Investments in Apprenticeship? Evidence from Registered Programs 
under the American Apprenticeship Initiative,'' Oct. 26, 2022, 
https://wdr.doleta.gov/research/FullText_Documents/ETAOP2022-36_AAI_ROI_Final_Report_508_9-2022.pdf.
    \197\ Intelligent Partnerships, ``Expanding DEIA Programs 
Through Apprenticeship,'' Apr. 2022, https://www.apprenticeship.gov/sites/default/files/expanding-deia-programs-through-apprenticeship.pdf.
---------------------------------------------------------------------------

    The proposed registered CTE apprenticeship model would have 
numerous benefits for students who are enrolled in high school or in 
community and technical colleges. This new model would allow students 
to continue their education while participating in the labor market, 
provide students with opportunities to attain a recognized 
postsecondary credential, complete college coursework and a registered 
apprenticeship program, and participate in paid on-the-job learning. 
These opportunities would allow students to earn and learn, accelerate 
their completion of postsecondary credentials through dual enrollment, 
and put students on a career path. Earn and learn programs provide 
students with an opportunity to gain access to good jobs and stable 
careers without debt or substantial financial burden.\198\ A study 
completed on the CareerWise Colorado program found that nearly 64 
percent of CareerWise students achieve the program's goal of 
apprenticeship serving as an ``options multiplier,'' in which they 
transition on to postsecondary education, employment, or both.\199\ The 
program would also provide developmental benefits for youth 
participants, both at the personal and professional level.\200\ This 
relationship can be especially impactful for youth whose caregivers are 
inconsistent or unavailable by providing these

[[Page 3229]]

individuals with a source of stability and a role model. Registered CTE 
apprenticeship would also help to develop young people's career-
relevant skillsets at an early age, particularly in the realm of soft 
and interpersonal skills. Gaining practical experience in organization, 
problem-solving, teamwork, and time management would help these 
individuals build the necessary skills for future success in their 
occupations.\201\ We welcome comments providing resources and best 
practices in mentorship to ensure that programs help apprentices, 
including those from underserved communities, excel in mentorship 
programs.
---------------------------------------------------------------------------

    \198\ Joseph B. Fuller et al., The Project on Workforce, Harvard 
University, ``The Options Multiplier: Decoding the CareerWise Youth 
Apprentice Journey,'' Nov. 14, 2022, https://www.hbs.edu/faculty/Pages/item.aspx?num=63353.
    \199\ Joseph B. Fuller et al., The Project on Workforce, Harvard 
University, ``The Options Multiplier: Decoding the CareerWise Youth 
Apprentice Journey,'' Nov. 14, 2022, https://www.hbs.edu/faculty/Pages/item.aspx?num=63353.
    \200\ Jean E. Rhodes et al., ``A Model for the Influence of 
Mentoring Relationships on Youth Development,'' Oct. 5, 2006, 
https://www.rhodeslab.org/files/Model.pdf.
    \201\ Robert Lerman, ``Expanding Apprenticeship--A Way to 
Enhance Skills and Careers,'' Apr. 15, 2010, https://www2.ed.gov/PDFDocs/college-completion/03-expanding-apprenticeship.pdf.
---------------------------------------------------------------------------

c. Prohibiting Non-Disclosure and Non-Compete Provisions (Sec.  
29.9(d)(1) and (2), (e))
    While the proposed prohibitions on non-compete and non-disclosure 
provisions in apprenticeship agreements may impose cost burdens on 
those program sponsors and participating employers that might otherwise 
elect to use them (i.e., the forfeiting of any investment made by such 
an employer to train an apprentice), the Department is persuaded that 
any such costs would be outweighed on a macroeconomic level by the 
substantial economic benefits that would accrue to other employers in 
the same sector or occupation that can offer a more competitive salary 
and package of benefits to those employees (such as apprentices) who 
might otherwise be effectively prevented from offering their skills in 
the labor market because of such restrictive employment contract 
covenants. By prohibiting or limiting the use of such anticompetitive 
practices with respect to apprenticeship agreements, the Department 
seeks to promote a freer and more competitive marketplace for both 
employers and skilled workers.
    The Department acknowledges that prohibiting non-compete provisions 
may lead to the unintended consequence of disincentivizing investment 
in apprenticeship training. However, the Department has determined that 
this risk would be outweighed by the benefit of prohibiting 
anticompetitive practices during the term of the registered 
apprenticeship program. The Department is seeking to encourage the 
growth of high-quality apprenticeship and the increased use of 
registered apprenticeship as a training tool. Encouraging competition 
in the market would serve these goals by incentivizing employers to 
seek to retain their apprentices through high-quality training and 
employment rather than through limiting apprentices' ability to seek 
employment opportunities elsewhere during the term of the 
apprenticeship. In other words, providing high-quality registered 
apprenticeship would be a more effective and fair method of retaining 
apprentices in a registered apprenticeship program rather than through 
a prohibition on labor movement, which the Department views as harmful 
to both employers as a restraint on a free and competitive market and 
to apprentices as a restraint on their mobility.
    In addition, there are several benefits that would accrue to 
apprentices by prohibiting non-disclosure and non-compete provisions. 
The proposed rule would increase apprentice mobility and labor market 
competition by removing certain restrictions such as non-compete 
provisions, thus allowing them to move freely between jobs. The absence 
of these restrictions would provide apprentices with the opportunity to 
seek higher paying positions, which would result in an overall increase 
in wages and offer greater opportunities for growth. Increased mobility 
is particularly beneficial to younger apprentices, as job changes 
account for approximately one-third of early career wage growth.\202\ 
One recent study estimated that a nationwide ban on non-compete 
provisions would increase average earnings by 3.3 to 13.9 percent.\203\ 
The FTC recently estimated that one in five American workers is bound 
by a non-compete provision.\204\ A 2014 survey of workers found that 18 
percent of respondents work under a non-compete provision at the time 
of the survey and that 38 percent had been subject to a non-compete 
provision during their career.\205\ Although these studies are for the 
general workforce, the Department does not expect the prevalence of 
non-compete provisions to be materially different in registered 
apprenticeship. Therefore, the financial benefits of removing non-
compete provisions from apprentice agreements could be significant, 
especially for young apprentices.
---------------------------------------------------------------------------

    \202\ Robert Topel and Michael Ward, ``Job Mobility and the 
Careers of Young Men,'' May 1, 1992, Q.J. Econ. 107(2), 439-479, 
https://academic.oup.com/qje/article-abstract/107/2/439/1838303.
    \203\ Matthew S. Johnson, Kurt Lavetti, and Michael Lipsitz, 
``The Labor Market Effects of Legal Restrictions on Worker 
Mobility,'' 2020, at 2, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3455381.
    \204\ 88 FR 3482 (Jan. 19, 2023) (NPRM on non-compete 
provisions).
    \205\ Evan P. Starr, James J. Prescott, and Norman D. Bishara, 
``Noncompete Agreements in the U.S. Labor Force,'' 64 J. L. & Econ. 
1, 53-84 (2021), https://repository.law.umich.edu/articles/2263.
---------------------------------------------------------------------------

    In addition to earnings increases, the proposed rule could provide 
greater opportunities for completed apprentices to potentially engage 
in entrepreneurial activities.\206\ The absence of non-compete 
provisions generally allows entrepreneurial activity to increase 
through the formation of intra-industry spinoffs, which serve as 
grounds for knowledge sharing, innovation, and career growth.\207\ The 
Department is unable to estimate the extent to which recently completed 
apprentices remain under non-compete provisions and their ability to 
engage in entrepreneurial activity, but the ability for apprentices to 
freely leverage their skills and knowledge through entrepreneurial 
ventures would increase career growth opportunities and the potential 
for wage increases.
---------------------------------------------------------------------------

    \206\ John M. McAdams, ``Non-Compete Agreements: A Review of the 
Literature,'' Dec. 31, 2019, https://dx.doi.org/10.2139/ssrn.3513639.
    \207\ 88 FR 3482 (Jan. 19, 2023) (NPRM on non-compete 
provisions).
---------------------------------------------------------------------------

d. National Occupational Standards for Apprenticeship, National Program 
Standards for Apprenticeship, and National Guidelines for 
Apprenticeship Standards (Sec. Sec.  29.13 through 29.15)
    Under the proposed rule, the Department seeks to facilitate the use 
of registered apprenticeship models currently available by defining 
``National Program Standards for Apprenticeship'' and ``National 
Guidelines for Apprenticeship Standards.'' This would promote 
innovation of and enable ease of access to industry-recognized, 
standardized products that are intended to facilitate the expansion of 
new quality programs to be registered expeditiously and efficiently. 
This would create a more efficient process for National Program 
Standards for Apprenticeship approval and for local registration of 
National Guidelines for Apprenticeship Standards. The proposed rule 
also defines ``National Occupational Standards for Apprenticeship.'' 
This new product would build, and continuously reinforce and improve 
with validated industry feedback, a national system of occupational 
frameworks that incentivize quality in registered apprenticeship 
programs and feature industry-validated training standards and 
curricula. The National Occupational Standards for Apprenticeship would 
provide a template for national occupations, programs, and guidelines 
that would

[[Page 3230]]

create time and cost savings for sponsors or SAAs that would have 
submitted new occupation determinations, by allowing them to leverage 
national frameworks that are already developed by OA.
e. Complaints (Sec.  29.17)
    The proposed rule would extend the amount of time for apprentices 
to file complaints against sponsors as well as provide requirements 
that Registration Agencies better protect the identity of apprentices 
who file complaints. These changes would result in apprentices having 
more time and feeling more comfortable in filing complaints against 
sponsors, which could result in better work conditions, improved 
apprenticeships, and more apprentices completing their programs.
f. Deregistration (Sec.  29.20)
    Currently, deregistration of an apprenticeship program occurs when 
a sponsor fails to demonstrate compliance with 29 CFR part 29. The 
proposed rule would add a suspension step allowing sponsors an adequate 
span of time to update their practices and come into compliance without 
having to be deregistered and then reregistered at a later date. Under 
this procedure, a Registration Agency would suspend a registration of 
new apprentices until the sponsor has achieved compliance with part 29 
through the completion of a voluntary compliance action plan or until a 
final order is issued in formal deregistration proceedings initiated by 
the Registration Agency.
    The intermediary step of suspension represents a benefit because it 
would allow sponsors to become compliant without having to be 
deregistered and then reregister or abandon their program. The benefits 
of this provision are difficult to quantify because of a lack of data 
on how many suspensions might occur as well as the fact that some 
programs eligible for deregistration may seek deregistration 
voluntarily. Voluntary deregistration, however, can occur for several 
reasons and it would be incorrect to assume that all voluntary 
deregistrations directly correlate with sponsors that have been 
deregistered.
    The Department expects that fewer programs would be required to 
deregister or voluntarily deactivate as a result of the suspension 
procedure, enabling more active total sponsors and the associated 
apprenticeship opportunities.
3. Quantitative Analysis Considerations
    The Department estimated the costs of the proposed rule relative to 
the existing baseline (i.e., regulations at 29 CFR part 29). In 
accordance with the regulatory analysis guidance articulated in OMB 
Circular A-4 and consistent with the Department's practices in previous 
rulemakings, this regulatory analysis focuses on the likely 
consequences of the proposed rule (i.e., the costs that are expected to 
accrue to the affected entities). The analysis covers 10 years to 
ensure it captures the major costs that are likely to accrue over time. 
The Department expresses the quantifiable impacts in 2022 dollars and 
uses discount rates of 3 and 7 percent, pursuant to Circular A-4.
a. Estimated Number of Registered Apprenticeship Program SAAs
    The proposed rule would impact SAAs through new regulatory 
requirements that result in new burdens to or transfer payments. The 
Department currently works with 31 SAAs, and these are used as the 
affected population through the period of analysis.
b. Estimated Number of Registered Apprenticeship Program Sponsors
    The proposed rule would affect registered apprenticeship programs 
and their sponsors. A sponsor can have more than one program but, due 
to data availability, this analysis assumes the number of registered 
apprenticeship programs is the same as the estimated number of 
sponsors. The Department used historical data from the Energy Document 
Portal (EDP) on the number of registered apprenticeship programs from 
2017 to 2022 to calculate the annual average growth in the number of 
programs. To project the number of registered apprenticeship programs 
and sponsors from 2025 to 2034 the Department calculated the average 
annual increase in programs (942), presented in Exhibit 2. This 
increment was applied to project the population of programs from 2025 
to 2034.
    The proposed rule would add requirements for new registered 
apprenticeship program registrations. New program registrations differ 
from the average annual increase in sponsors because the increase in 
program registrations is partially offset by deregistrations. The 
Department used historical data from EDP on the number of new program 
registrations from 2017 to 2022 to calculate an average annual increase 
in the number of new programs (73) based on the average difference in 
programs from year to year and applied to project the population of new 
programs from 2025 to 2034. Data on new program registrations are 
presented in Exhibit 2.

                       Exhibit 2--Historical Number of Registered Apprenticeship Programs
----------------------------------------------------------------------------------------------------------------
                                    Total      New programs    Competency-based     Hybrid     Non-collectively
             Year                programs *         **             programs        programs   bargained programs
----------------------------------------------------------------------------------------------------------------
2017..........................        18,956           2,176                 833         980               2,083
2018..........................        20,371           2,691               1,102       1,295               2,115
2019..........................        21,872           2,540               1,386       1,544               2,119
2020..........................        22,495           2,376               1,670       1,755               2,138
2021..........................        23,785           2,688               2,096       1,981               2,122
2022..........................        23,666           2,543               2,474       2,114               2,095
                               ---------------------------------------------------------------------------------
    Average Annual Increase              942              73                 328         227  ..................
     ***......................
    Average ***...............  ............  ..............  ..................  ..........               2,112
----------------------------------------------------------------------------------------------------------------
* Total number of programs does not sum from the detailed components because only a small subset of programs are
  competency-based, hybrid, or non-collectively bargained. The remaining programs not competency-based or hybrid
  are hourly programs with at least 2,000 hours of on-the-job training and the remaining programs not included
  in the non-collectively bargained figures are collectively bargained. These two categories of program do not
  face unique costs and therefore are not included in the table.
** New programs are newly registered apprenticeship programs for a particular year. They add to the total number
  of programs but are not equal to the difference in total programs between years due the occurrence of
  deregistered programs.
*** The average annual increase was calculated by averaging the differences in population from year to year. For
  example, 942 = ((20,371-18,956), (21,872-20,371), (22,485-21,872), (23,785-22,485), (23,666-23,785))/5. When
  the average annual increase or average has a value, that indicates the value used to develop projections.


[[Page 3231]]

    The Department derived subpopulations of registered apprenticeship 
programs to estimate the effect of the proposed rule on programs with 
certain characteristics. The number of programs that were not solely 
time-based (i.e., competency-based programs or hybrid programs) were 
calculated by the Department using historical data from EDP from 2017 
to 2022. The Department calculated the average annual increase in the 
number of competency-based programs (328) and the average annual 
increase in the number of hybrid programs (227) based on the average 
differences in these programs from year to year. These estimates were 
applied to project the populations of these programs from 2025 to 2034. 
Lastly, the proposed rule would have new requirements for registered 
apprenticeship programs that are not collectively bargained, so the 
Department estimated the number of programs for which these 
requirements would apply. Using historical EDP data from 2017 to 2022, 
the Department assumed that the number of non-collectively bargained 
programs would remain constant across years, based on the average 
number of these programs across years (2,112).
    Exhibit 2 above presents the historical data on the above five 
program populations across available years of data as well as average 
annual increase used to derive the projected number of entities or, in 
the case of programs reviewed, the average population assumed constant 
across years. The projected number of each entity from 2025 through 
2034, based on either the average annual increase or the average annual 
value from Exhibit 2, are provided in Exhibit 3 below.

                        Exhibit 3--Projected Number of Registered Apprenticeship Programs
----------------------------------------------------------------------------------------------------------------
                                    Total      New programs    Competency-based     Hybrid     Non-collectively
             Year                programs *         **             programs        programs   bargained programs
----------------------------------------------------------------------------------------------------------------
2025..........................        26,492           2,763               3,459       2,794               2,112
2026..........................        27,434           2,837               3,787       3,021               2,112
2027..........................        28,376           2,910               4,115       3,248               2,112
2028..........................        29,318           2,983               4,443       3,475               2,112
2029..........................        30,260           3,057               4,771       3,702               2,112
2030..........................        31,202           3,130               5,100       3,928               2,112
2031..........................        32,144           3,204               5,428       4,155               2,112
2032..........................        33,086           3,277               5,756       4,382               2,112
2033..........................        34,028           3,350               6,084       4,609               2,112
2034..........................        34,970           3,424               6,412       4,836               2,112
----------------------------------------------------------------------------------------------------------------

    The number of programs reviewed by either OA or SAAs would also be 
affected by the proposed rule. The Department used a percentage-based 
approach to estimate the number of programs reviewed by either 
Registration Agency. The Department reviews each program every 5 years, 
meaning that 20 percent of programs are reviewed every year. Of the 
programs reviewed, the Department estimates that 58.2 percent are 
reviewed by SAAs and 41.8 percent are reviewed by OA, based on an 
average of 12,946 programs registered by SAAs yearly and 9,288 
registered by OA yearly. Therefore, the Department calculates that 8.4 
percent of all programs are reviewed by OA yearly and 11.6 percent of 
all programs are reviewed by SAAs yearly.\208\ The Department applies 
these percentages to the projected number of programs from 2025 to 2034 
to determine the number of programs reviewed by each agency.
---------------------------------------------------------------------------

    \208\ 8.4 percent = 41.8 percent x 20 percent; 11.6 percent = 
58.2 percent x 20 percent.
---------------------------------------------------------------------------

c. Estimated Number of Registered Apprenticeship Program Participating 
Employers
    The proposed rule would increase requirements for participating 
employers in each registered apprenticeship program. The Department 
used RAPIDS to gather data on the number of participating employers in 
2022 and derive the ratio of employers to programs. By dividing the 
number of participating employers in 2022 by the number of programs in 
2022, it was calculated that there are roughly 1.53 employers per 
program.\209\ This ratio was applied to the projected number of 
sponsors from Exhibit 3 to derive the number of employers from 2025 to 
2034, presented in Exhibit 4 below.
---------------------------------------------------------------------------

    \209\ 36,218 participating employers in 2022/23,666 programs in 
2022 = 1.53.

         Exhibit 4--Projected Number of Participating Employers
------------------------------------------------------------------------
                                                            Number of
                         Year                             participating
                                                            employers
------------------------------------------------------------------------
2025..................................................            40,533
2026..................................................            41,974
2027..................................................            43,415
2028..................................................            44,857
2029..................................................            46,298
2030..................................................            47,739
2031..................................................            49,180
2032..................................................            50,622
2033..................................................            52,063
2034..................................................            53,504
------------------------------------------------------------------------

d. Estimated Number of Apprentices
    The proposed rule would affect apprentices. The Department used 
historical data on the number of apprentices from 2017 to 2022 to 
project the population of apprentices from 2025 to 2034 by calculating 
the average annual increase in the number of apprentices (32,512).\210\ 
Exhibit 5 presents the number of apprentices from 2017 to 2022 as well 
as the average annual increase.
---------------------------------------------------------------------------

    \210\ See OA, ``Data and Statistics,'' https://www.apprenticeship.gov/data-and-statistics (last updated June 16, 
2023).

               Exhibit 5--Historical Number of Apprentices
------------------------------------------------------------------------
                                                              Total
                         Year                              apprentices
------------------------------------------------------------------------
2017..................................................           415,458
2018..................................................           466,560
2019..................................................           520,411
2020..................................................           538,204
2021..................................................           549,747
2022..................................................           578,020
                                                       -----------------
    Average Annual Increase...........................            32,512
------------------------------------------------------------------------

    The average annual increase in apprentices is used to project the 
number of apprentices in 2025-2034, presented in Exhibit 6 below.

[[Page 3232]]



               Exhibit 6--Projected Number of Apprentices
------------------------------------------------------------------------
                                                            Number of
                         Year                              apprentices
------------------------------------------------------------------------
2025..................................................           675,557
2026..................................................           708,070
2027..................................................           740,582
2028..................................................           773,094
2029..................................................           805,607
2030..................................................           838,119
2031..................................................           870,632
2032..................................................           903,144
2033..................................................           935,656
2034..................................................           968,169
------------------------------------------------------------------------

e. Estimated Number of Occupations
    The proposed rule would impose new requirements in the occupation 
determination application process and introduce new administrative 
burdens to sponsors, SAAs, and OA, based on the number of occupation 
determination applications. The Department used historical data from 
RAPIDS to calculate the average annual number of occupation 
determination applications. Data on the number of new and revised 
occupation determination applications were available from 2019 to 2022. 
The Department calculated the average annual number of new occupation 
applications (15) and used this to project new applications for a 
suitability determination from 2025 to 2034. However, for revised 
occupations, the proposed rule at Sec.  29.7(h) envisions that OA would 
review existing approved occupations for revisions every 5 years. There 
are currently approximately 1,100 approved occupations, so the 
Department estimates approximately 220 revised occupations per year 
(1100 / 5 years = 220). The proposed rule would allow the establishment 
of national occupations, so the Department also estimates that there 
would be 15 new national occupations yearly based on the bulletin list 
of national occupations from Apprenticeship.gov. Exhibit 7 presents the 
historical data on the number of new occupations applications and the 
average number used in the analysis for each year from 2025 to 2034.

       Exhibit 7--Historical Number of New Occupation Applications
------------------------------------------------------------------------
                                                          Number of new
                                                           occupation
                         Year                            determinations
                                                          applications
------------------------------------------------------------------------
2019..................................................                17
2020..................................................                14
2021..................................................                12
2022..................................................                16
                                                       -----------------
    Average...........................................                15
------------------------------------------------------------------------

f. Estimated Number of CTE SAAs
    The creation of registered CTE apprenticeship would result in CTE 
SAAs entering into agreements with OA to run CTE programs. The 
Department expects that over the 10-year analysis period that States 
running their CTE programs would be a proportion of the States with 
recognized SAAs for registered apprenticeship. The Department estimates 
that half of the States that are registered apprenticeship SAAs would 
become CTE SAAs by 2034. Therefore, the Department estimates a steady 
increase to 16 CTE SAAs by 2035 by assuming 3 percent enter each year 
(1 SAA per year). Those projected number of CTE SAAs are presented in 
Exhibit 8. The Department seeks public comment on the assumption that 
half of States that are registered apprenticeship SAAs would become CTE 
SAAs by 2034. The Department thinks this estimate is reasonable since 
it is a voluntary model that States may or may not subscribe to, but 
the public's input is still requested.

                 Exhibit 8--Projected Number of CTE SAAs
------------------------------------------------------------------------
                                                          Number of CTE
                         Year                                 SAAs
------------------------------------------------------------------------
2025..................................................                 1
2026..................................................                 2
2027..................................................                 3
2028..................................................                 4
2029..................................................                 5
2030..................................................                 6
2031..................................................                 7
2032..................................................                 7
2033..................................................                 8
2034..................................................                 9
------------------------------------------------------------------------

g. Estimated Number of Registered CTE Apprenticeship Program Sponsors, 
CTE Participating Employers, and CTE Apprentices
    Secondary schools and postsecondary institutions would be eligible 
to be registered CTE apprenticeship program sponsors. The Department 
estimated the population based on the number of school districts that 
receive Perkins Federal Grant Program funds and the number of 
postsecondary institutions offering approved CTE programs. The 
Institute of Education Services estimates that 65 percent of LEAs 
receive Perkins funds. Based on National Center for Education 
Statistics (NCES) data, there were 19,359 LEAs in 2021-2022, resulting 
in an estimate of 12,583 receiving Perkins funds. Data collected by 
NCES through the Integrated Postsecondary Education Data System 
indicate that the number of public 2-year and less than 2-year 
institutions with CTE programs is 1,134 institutions. This results in a 
total potential population of 13,717 sponsors. However, because of 
requirements to register, maintain 540 hours of CTE apprenticeship-
related instruction over the program, and expectations for registered 
CTE apprenticeship to slowly ramp up, the Department estimates a small 
percent of these would become sponsors in the first year (1 percent or 
137 sponsors), second year (3 percent or 412 sponsors), and in each 
subsequent year (3 percent or 412 sponsors).
    To estimate the number of participating employers and apprentices 
associated with registered CTE apprenticeship program sponsors, the 
Department used data from registered apprenticeship. As discussed in 
the population estimates for registered apprenticeship, there are 
approximately 1.53 participating employers per sponsor and 23.4 
apprentices per sponsor. The Department expects similar ratios under 
CTE and used these with the projected number of sponsors to project 
participating employers and apprentices.
    The Department's projections of registered CTE apprenticeship 
program sponsors, participating employers, and apprentices are 
presented in Exhibit 9.\211\
---------------------------------------------------------------------------

    \211\ Year 1, 137 = 0.01 x 13,717. Year 2, 549 = 137 + 0.03 x 
13,717; Year 3, 960 = 549 + 0.03 x 13,717; Year 4, 1,372 = 960 + 
0.03 x 13,717; Year 5, 1,783 = 1,372 + 0.03 x 13,717; Year 6, 2,195 
= 1,783 + 0.03 x 13,717; Year 7, 2,606 = 2,195 + 0.03 x 13,717; Year 
8, 3,018 = 2,606 + 0.03 x 13,717; Year 9, 3,429 = 3,018 + 0.03 x 
13,717; Year 10, 3,841 = 3,429 + 0.03 x 13,717.

[[Page 3233]]



   Exhibit 9--Projected Number of Registered CTE Apprenticeship Program Sponsors, Participating Employers, and
                                                   Apprentices
----------------------------------------------------------------------------------------------------------------
                                                       Registered CTE
                        Year                           apprenticeship     CTE participating     CTE apprentices
                                                      program sponsors        employers
----------------------------------------------------------------------------------------------------------------
2025...............................................                 137                  210               3,210
2026...............................................                 549                  839              12,839
2027...............................................                 960                1,469              22,468
2028...............................................               1,372                2,099              32,098
2029...............................................               1,783                2,728              41,727
2030...............................................               2,195                3,358              51,356
2031...............................................               2,606                3,988              60,986
2032...............................................               3,018                4,617              70,615
2033...............................................               3,429                5,247              80,244
2034...............................................               3,841                5,876              89,874
----------------------------------------------------------------------------------------------------------------

h. Estimated number of new CTE apprentices.
    The Department estimated the costs of the proposed CTE program 
based on the number of new apprentices who are projected to enter 
registered CTE apprenticeship programs. Accordingly, the Department 
developed projections for the number of new CTE apprentices entering 
each year of the program based on the number of projected CTE 
apprentices in Exhibit 10. Given that 540 hours of CTE apprenticeship-
related instruction would be required for apprentices in registered CTE 
apprenticeship programs, the Department expects that it would take 1 to 
2 years to complete a registered CTE apprenticeship. To develop its 
projections, the Department assumed the value of 2 years and estimated 
the cohorts that would enter each year and exit after 2 years based on 
the projected CTE apprenticeship population. The projected number of 
new CTE apprentices and the cohorts those numbers are derived from are 
presented in Exhibit 10.

                                               Exhibit 10--Projected Number of Annual New CTE Apprentices
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                              Year 1       2          3          4          5          6          7          8          9          10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Cohort 1..................................      3,210      3,210  .........  .........  .........  .........  .........  .........  .........  .........
Cohort 2..................................  .........      9,629      9,629  .........  .........  .........  .........  .........  .........  .........
Cohort 3..................................  .........  .........     12,839     12,839  .........  .........  .........  .........  .........  .........
Cohort 4..................................  .........  .........  .........     19,259     19,259  .........  .........  .........  .........  .........
Cohort 5..................................  .........  .........  .........  .........     22,468     22,468  .........  .........  .........  .........
Cohort 6..................................  .........  .........  .........  .........  .........     28,888     28,888  .........  .........  .........
Cohort 7..................................  .........  .........  .........  .........  .........  .........     32,098     32,098  .........  .........
Cohort 8..................................  .........  .........  .........  .........  .........  .........  .........     38,517     38,517  .........
Cohort 9..................................  .........  .........  .........  .........  .........  .........  .........  .........     41,727     41,727
Cohort 10.................................  .........  .........  .........  .........  .........  .........  .........  .........  .........     48,147
                                           -------------------------------------------------------------------------------------------------------------
    New Apprentices.......................      3,210      9,629     12,839     19,259     22,468     28,888     32,098     38,517     41,727     48,147
                                           -------------------------------------------------------------------------------------------------------------
    Total Apprentices.....................      3,210     12,839     22,468     32,098     41,727     51,356     60,986     70,615     80,244     89,874
--------------------------------------------------------------------------------------------------------------------------------------------------------

i. Compensation Rates
    Exhibits 11a through 11c present the hourly compensation rates for 
the occupational categories that are expected to experience a change in 
level of effort (workload) due to the proposed rule. We used BLS's mean 
hourly wage rate for private sector and State employees.\212\ We also 
used the wage rate from the Office of Personnel Management's Salary 
Table for the 2022 General Schedule for Federal employees.\213\ To 
reflect total compensation, wage rates include nonwage factors, such as 
overhead and fringe benefits (e.g., health and retirement benefits). 
For all labor groups (i.e., private sector, State, and Federal 
Government), we used an overhead rate of 17 percent.\214\ For the 
private sector, we used a fringe benefits rate of 42 percent, which 
represents the ratio of average total compensation to average wages for 
private industry workers in 2022.\215\ For the State government sector, 
we used a fringe benefits rate of

[[Page 3234]]

62 percent, which represents the ratio of average total compensation to 
average wages for State government workers in 2022.\216\ For the 
Federal Government, we used a fringe benefits rate of 63 percent.\217\ 
We then multiplied the sum of the loaded wage factor and overhead rate 
by the corresponding occupational category wage rate to calculate an 
hourly compensation rate.\218\
---------------------------------------------------------------------------

    \212\ BLS, ``May 2022 National Industry-Specific Occupational 
Employment and Wage Estimates: NAICS 999200--State Government, 
excluding schools and hospitals (OEWS Designation),'' https://www.bls.gov/oes/current/naics4_999200.htm (last updated Apr. 25, 
2023).
    \213\ Office of Personnel Management, ``Salary Table 2022-GS,'' 
Jan. 2022, https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2022/GS_h.pdf.
    \214\ U.S. Environmental Protection Agency, ``Wage Rates for 
Economic Analyses of the Toxics Release Inventory Program,'' June 1, 
2002, https://www.regulations.gov/document?D=EPA-HQ-OPPT-2014-0650-0005. DOL has used 17 percent in prior final rules, including the 
Adverse Effect Wage Rate Methodology for the Temporary Employment of 
H-2A Nonimmigrants in Non-Range Occupations in the United States 
final rule (RIN 1205-AC05), Temporary Agricultural Employment of H-
2A Nonimmigrants in the United States (RIN 1205-AB89), Cranes and 
Derricks in Construction: Railroad Roadway Work (RIN 1218-AD07), and 
Occupational Exposure to Beryllium and Beryllium Compounds in 
Construction and Shipyard Sectors final rule (RIN 1218-AD29).
    \215\ BLS, ``Employer Costs for Employee Compensation--2022,'' 
May 16, 2023, https://data.bls.gov/cgi-bin/srgate. Calculated using 
Series Id CMU2020000000000D and CMU2020000000000P, CMU2010000000000D 
and CMU2010000000000P. Average of 2022 Q1-Q4 for private industry 
total compensation cost per hour worked divided by average of 2022 
Q1-Q4 for private industry wages and salaries cost per hour worked.
    \216\ Ibid. Calculated using Series Id CMU3020000000000D and 
CMU3020000000000P, CMU3010000000000D and CMU3010000000000P. Average 
of 2022 Q1-Q4 for State and local government total compensation cost 
per hour worked divided by average of 2022 Q1-Q4 for State and local 
government wages and salaries cost per hour worked.
    \217\ DOL ``Workforce Innovation and Opportunity Act (WIOA) 
Common Performance Reporting,'' OMB Control No. 1205-0526, concluded 
May 5, 2021, https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202012-1205-003.
    \218\ The hourly compensation rates presented in Exhibit 11a, 
Exhibit 11b, and Exhibit 11c are rounded. Calculations used 
throughout the regulatory impact analysis (RIA) use the unrounded 
value. Therefore, numbers may not sum due to rounding for the 
convenience of the reader.

                                              Exhibit 11a--Compensation Rates for Private Sector Employees
                                                                     [2022 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                              Hourly
            Position                    Grade level         Base hourly        Loaded wage factor                Overhead costs            compensation
                                                             wage rate                                                                         rate
                                                                    (a)  (b)...........................  (c)...........................    d = a + b + c
--------------------------------------------------------------------------------------------------------------------------------------------------------
Training and Development Manager  N/A....................        $64.84  $27.23 (=$64.84 x 0.42).......  $11.02 (=$64.84 x 0.17).......          $103.09
Office and Administrative         N/A....................         21.62  $9.08 (=$21.62 x 0.42)........  $3.68 (=$21.62 x 0.17)........            34.38
 Support Occupation.
Apprentice......................  N/A....................         16.33  $6.86 (=$16.33 x 0.42)........  $2.78 (=$16.33 x 0.17)........            25.96
Industry Leader.................  N/A....................         64.15  $26.94 (=$64.15 x 0.42).......  $10.91 (=$64.15 x 0.17).......           102.00
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                   Exhibit 11b--Compensation Rates for State Employees
                                                                     [2022 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                              Hourly
            Position                    Grade level         Base hourly        Loaded wage factor                Overhead costs            compensation
                                                             wage rate                                                                         rate
                                                                    (a)  (b)...........................  (c)...........................    d = a + b + c
--------------------------------------------------------------------------------------------------------------------------------------------------------
Training and Development Manager  N/A....................        $41.48  $25.72 (=$41.48 x 0.62).......  $7.05 (=$41.48 x 0.17)........           $74.25
Secretary and Administrative      N/A....................         22.74  $14.10 (=$22.74 x 0.62).......  $3.86 (=$22.74 x 0.17)........            40.70
 Assistant.
Computer Systems Analyst........  N/A....................         39.11  $24.25 (=$39.11 x 0.62).......  $6.65 (=$39.11 x 0.17)........            70.01
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                  Exhibit 11c--Compensation Rates for Federal Employees
                                                                     [2022 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                              Hourly
            Position                    Grade level         Base hourly        Loaded wage factor                Overhead costs            compensation
                                                             wage rate                                                                         rate
                                                                    (a)  (b)...........................  (c)...........................    d = a + b + c
--------------------------------------------------------------------------------------------------------------------------------------------------------
Administrative Assistant........  GS-7, Step 5...........        $20.91  $13.17 (=$20.91 x 0.63).......  $3.55 (=$20.91 x 0.17)........           $37.63
--------------------------------------------------------------------------------------------------------------------------------------------------------

4. Subject-by-Subject Analysis
    The Department's subject-by-subject analysis covers the estimated 
costs and cost savings of the proposed rule. The hourly time burdens 
and other estimates used to quantify the costs are largely based on the 
Department's experience with registered apprenticeship.
a. Registered Apprenticeship Costs
(1) Rule Familiarization
    When the proposed rule becomes final and takes effect, sponsors, 
employers, and SAAs would need to familiarize themselves with the new 
regulation, thereby incurring a one-time cost. To estimate the cost of 
rule familiarization to sponsors, the Department estimates that each 
sponsor would have a Training and Development Manager (private sector) 
spend 4 hours reading and reviewing the new rule. The estimate is based 
on the length and complexity of this rule, and the Department's program 
experience with previous apprenticeship regulations. This estimate 
aligns with the time estimate made in the 2016 DOL Apprenticeship Equal 
Employment Opportunity (EEO) RIA for the time required to read and 
review the rule. The Department seeks public comment on this estimate. 
In subsequent years, this cost is only applied to new sponsors. The 
estimated cost in year 1 is $10,924,835 (= 26,492 sponsors in year 1 x 
4 hours x $103.10 per hour). In years 2-10, only new sponsors would 
incur this cost. In year 2, for example, new sponsors would face a cost 
of $1,169,764 (= 2,837 new sponsors x 4 hours x $103.10 per hour).
    To estimate the cost of rule familiarization to participating 
employers, the Department estimates that each participating employer 
would have a Training and Development Manager (private sector) spend 2 
hours reading and reviewing the new rule. This estimate was made by 
dividing the time estimate of 4 hours to read and review the rule from 
the 2016 DOL Apprenticeship EEO RIA in half. The Department anticipates 
it will take participating employers less time to read and review the 
rule since only certain provisions will be relevant to them. The 
Department seeks public comment on this estimate with the goal of 
providing refined estimates in the final rule. In subsequent years, 
this cost is only applied to new participating employers. The estimated 
cost in year 1 is $8,357,498 (= 40,533 participating employers in year 
1 x 2 hours x $103.10 per hour). In years 2-10, only new participating 
employers would incur this cost. In year 2, for example, new employers 
would face a cost of $297,175

[[Page 3235]]

(= 1,441 new participating employers x 2 hours x $103.10 per hour).
    To estimate the cost of rule familiarization to SAAs, the 
Department estimates that each SAA would have a Training and 
Development Manager (State level) spend 4 hours reading and reviewing 
the new rule. This estimate aligns with the time estimate made in the 
2016 DOL Apprenticeship EEO RIA for the time required to read and 
review the rule. The Department seeks public comment on this estimate 
with the goal of providing refined estimates in the final rule. This 
would result in a first-year cost to SAAs of $9,207 (= 31 SAAs x 4 
hours x $74.25 per hour). The Department estimates that SAAs would only 
incur costs from rule familiarization in the first year.
    In total, rule familiarization would have annualized costs over the 
10-year analysis period of $3.6 million at a discount rate of 3 percent 
and $3.9 million at a discount rate of 7 percent. The total cost over 
the 10-year analysis period is estimated at $30.7 million at a discount 
rate of 3 percent and $27.6 million at a discount rate of 7 percent.
(2) New Requirements for On-the-Job Training Documentation (Sec.  
29.7(b)(3))
    The proposed rule would require sponsors to submit documentation of 
the industry standard of minimum hours needed to obtain proficiency in 
the occupation under consideration, and that the minimum hours are not 
less than 2,000 hours. Programs that do not meet the 2,000-hour minimum 
requirement would need to update their on-the-job training requirements 
and submit documentation. There are currently an average of 3,459 
programs that have occupations that are competency-based and 2,794 
registered apprenticeship programs that have occupations that are 
hybrid (time-based and competency-based). It is assumed that these 
programs would not meet the minimum 2,000-hour requirement of on-the-
job training and would incur one-time costs to update their 
requirements. The Department estimates that sponsors would have a 
Training and Development Manager (private sector) spend 8 hours 
updating their on-the-job training requirements and spend 2 hours 
submitting documentation. These estimates are based on program 
experience, and the Department seeks public comment on these estimates. 
In year 1, the Department estimates the cost to be $6,446,568 (= 6,253 
occupations with programs with <2,000 hours on-the-job training x 10 
hours x $103.10 per hour). In years 2-10, only sponsors with new 
occupations would need to submit the documentation of training 
requirements and incur costs.
    In total, the annualized cost over the 10-year analysis period of 
new requirements for on-the-job training documentation is estimated at 
$733,723 at a discount rate of 3 percent and $857,800 at a discount 
rate of 7 percent. The total cost over the 10-year analysis period is 
estimated at $6.3 million at a discount rate of 3 percent and $6.0 
million at a discount rate of 7 percent.
(3) Wage Analysis and Career Development Profile (Sec.  29.7(b)(2))
    The proposed rule would require sponsors to submit documentation of 
the typical compensation and career advancement profile for each 
occupation that places workers in an occupation that leads to a 
sustainable career. The Department estimates that this new requirement 
would impose costs on sponsors to submit documentation of the wage 
analysis and career advancement profile for existing occupations and 
new and revised occupation determinations. The Department estimates 
that sponsors would have a Training and Development Manager (private 
sector) spend 2 hours to develop and submit the documentation for each 
existing, new, and revised occupation. This estimate aligns with the 
time estimates for similar activities in the 2019 DOL Industry-
Recognized Apprenticeship Programs (IRAP) RIA for the time required to 
prepare and submit the wage analysis and career development profile. 
The Department seeks public comment on this estimate with the goal of 
providing refined estimates in the final rule. This would result in an 
annual cost to sponsors of $48,455 (= 235 new and revised occupation 
determinations x 2 hours x $103.10 per hour).
    In total, the annualized cost over the 10-year analysis period of 
documenting the wage analysis and career development profile is 
estimated at $48,455 at a discount rate of 3 percent and $48,455 at a 
discount rate of 7 percent. The total cost over the 10-year analysis 
period is estimated at $413,330 at a discount rate of 3 percent and 
$340,327 at a discount rate of 7 percent.
(4) DOL-OA Occupation Determination Evaluation Process (Sec.  29.7(c))
    The proposed rule would update the process by which OA evaluates 
occupation determinations by providing more clarity and being more 
precise on what is being evaluated including all the new documentation 
submissions under proposed Sec.  29.7(b). In addition, the proposed 
rule formalizes the process by which OA solicits feedback from industry 
leaders on the suitability of an occupation for registered 
apprenticeship.
    The Department estimates that OA would incur costs for a GS-13 
manager to spend an additional 4 hours reviewing the new documentation 
under proposed Sec.  29.7(b) for each occupation application. This 
estimate is based on program experience, and the Department seeks 
public comment on this estimate. This would result in an annual cost to 
OA for new and revised occupation determinations, with a cost in year 1 
of $74,617 (= 235 new and revised occupation determinations x 4 hours x 
$79.38).
    In addition, the Department estimates that industry leaders would 
spend a total of 2 hours providing feedback on the suitability of an 
occupation for registered apprenticeship. This estimate is based on 
program experience, and the Department seeks public comment on this 
estimate. This would result in an annual cost to private industry for 
new and revised occupation determinations, with a cost in year 1 of 
$47,939 (= 235 new and revised occupation determinations x 2 hours x 
$102.00).
    In total, the annualized cost over the 10-year analysis period of 
the new OA occupation determination evaluation process is estimated at 
$122,556 at a discount rate of 3 percent and $122,556 at a discount 
rate of 7 percent. The total cost over the 10-year analysis period is 
estimated at $1.0 million at a discount rate of 3 percent and $860,786 
at a discount rate of 7 percent.
(5) Data Collection and Reporting (Sec. Sec.  29.25, 29.8(a), 29.9(b) 
and (c))
    The proposed rule would create new data collection and reporting 
requirements for apprentices, participating employers, sponsors, and 
SAAs. Proposed Sec.  29.25(a) would create new apprentice level data 
collections, including information on pre-apprenticeship services, 
occupations, and wage schedules. Proposed Sec.  29.25(b) would create 
new data collections on program sponsors including information such as 
participating employers, copies of program standards adoption 
agreements, participation with credentialing agencies, numbers of new 
and active apprentices, completed apprentices, out-of-pocket costs by 
apprentices, earnings from completed apprentices. Proposed Sec.  
29.8(a) on standards of apprenticeship would update requirements for 
the written set of standards of apprenticeship including information on 
term of the apprenticeship program, and related instruction. Proposed 
Sec.  29.9 would

[[Page 3236]]

require sponsors to give the signed apprenticeship agreement to the 
apprentice and to include new information in the apprenticeship 
agreements such as descriptions of roles, terms and conditions, end-
point assessments, unreimbursed costs, expenses or fees, and 
credentials.
    The Department estimates that complying with these additional data 
collections and transmitting them to OA would impose additional time 
burdens on apprentices, sponsors, and SAAs. The majority of these data 
collections are simple drop down or choice answers similar to the 
existing form ETA-671 covered under existing ICR 1205-0223.
    The Department estimates that apprentices would spend an additional 
5 minutes (0.083 hours) providing information to sponsors (proposed 
Sec.  29.25(a)). This estimate aligns with the time estimate in the 
supporting statement for Registration and Equal Employment Opportunity 
in Apprenticeship Programs (OMB Control Number 1205-0223, hereafter 
referred to as the EEO Supporting Statement), Table 1 for the time 
apprentices spend on apprenticeship agreements and program registration 
additions. The Department seeks public comment on this estimate. This 
would result in an annual cost to apprentices, with a cost in year 1 of 
$1,455,873 (= 675,557 apprentices x 0.083 hour x $25.96 per hour).
    The Department estimates that sponsors would require a Training and 
Development Manager (private sector) to spend 0.33 hour to provide 
information on standards of apprenticeship (proposed Sec.  29.8(a)). 
This estimate aligns with the time estimate in the EEO Supporting 
Statement, Table 1 for the time sponsors spend updating standards of 
apprenticeship. The Department seeks public comment on this estimate. 
The Department estimates that sponsors would also have an office and 
administrative support staff (private sector) spend 5 minutes (0.083 
hour) per apprentice providing additional data on apprentices (proposed 
Sec.  29.25(a)) and providing the apprenticeship agreement (proposed 
Sec.  29.9). This estimate aligns with the time estimate in the EEO 
Supporting Statement, Table 1 for the time sponsors spend providing 
additional data on apprentices and providing the apprenticeship 
agreement. The Department seeks public comment on this estimate. 
Finally, the Department estimates that sponsors would also have an 
office and administrative support staff (private sector) spend 5 
minutes (0.083 hour) per participating employer providing additional 
data on employers in their programs (proposed Sec.  29.25(b)). This 
estimate aligns with the time estimate in the EEO Supporting Statement, 
Table 1 for the time sponsors spend providing additional data on 
employers in their programs. The Department seeks public comment on 
this estimate. This would result in an annual cost to sponsors, with a 
cost in year 1 of $2,944,441 (= 26,492 programs x 0.33 hour x $103.10 
per hour + 675,557 apprentices x 0.083 hour x $34.38 per hour + 40,533 
participating employers x 0.083 hour x $34.38 per hour).
    The Department estimates that SAAs would have a Training and 
Development Manager (State level) spend an additional 1.5 hours per 
sponsor providing additional data to OA (proposed Sec.  29.25(a) and 
(b), as required by proposed Sec.  29.28). This estimate is made by 
multiplying the time estimate in the EEO Supporting Statement, Table 1 
by 1.5 to account for the added length of the form. The Department 
seeks public comment on this estimate. This would result in an annual 
cost to SAAs, with a cost in year 1 of $2,950,515 (= 26,492 sponsors x 
1.5 hours x $74.25 per hour).
    In total, the annualized cost over the 10-year analysis period of 
the new data collection and reporting requirements is estimated at 
$8.64 million at a discount rate of 3 percent and $8.55 million at a 
discount rate of 7 percent. The total cost over the 10-year analysis 
period is estimated at $73.7 million at a discount rate of 3 percent 
and $60.0 million at a discount rate of 7 percent.
(6) Program Registration (Sec.  29.10)
    The proposed rule would require sponsors that submit new 
applications to include additional information in their applications 
including a narrative on how they are working with the workforce 
system, information on their financial capacity and other resources to 
operate the proposed program, and any history of violations. OA and 
SAAs would need to review this new information when making a 
registration determination.
    The Department estimates that sponsors would have a Training and 
Development Manager (private sector) spend 1 hour submitting the 
additional information with applications for new programs. This 
estimate is based on program experience, and the Department seeks 
public comment on this estimate. This would result in an annual cost to 
sponsors submitting new program applications, with a cost in year 1 of 
$284,874 (2,763 new programs x 1 hour x $103.10 per hour).
    Each Registration Agency would spend additional time reviewing the 
added information to registration applications. The Department 
estimates that SAAs would have a Training and Development Manager 
(State level) spend 0.5 hour reviewing the additional information. This 
estimate is based on program experience, and the Department seeks 
public comment on this estimate. This would result in an annual cost to 
SAAs based on the number of new registration applications they would 
review. The Department assumes they would review the same proportion of 
new registration applications as there are programs registered with 
SAAs (58.2 percent, on average between 2019 and 2022), with a cost in 
year 1 of $59,730 (= 2,763 new program registrations x 58.2% x 0.5 hour 
x $74.25 per hour).
    The Department estimates that OA would have a GS-13 level employee 
spend 0.5 hour reviewing the additional information. This estimate is 
based on program experience, and the Department seeks public comment on 
this estimate. This would result in an annual cost to OA based on the 
number of new registration applications they would review (41.8 
percent), with a cost in year 1 of $45,814 (= 2,763 new program 
registrations x 41.8% x 0.5 hour x $79.38 per hour).
    In total, the annualized cost over the 10-year analysis period of 
the new program registration requirements is estimated at $434,561 at a 
discount rate of 3 percent and $431,342 at a discount rate of 7 
percent. The total cost over the 10-year analysis period is estimated 
at $3.7 million at a discount rate of 3 percent and $3.0 million at a 
discount rate of 7 percent.
(7) Reporting for Program Standards Adoption Agreement (Sec.  29.11)
    The proposed rule would require non-collectively bargained programs 
to include requirements that participating employers would adopt and 
comply with the sponsor's standards of apprenticeships as well as 
applicable requirements under 29 CFR part 30. This primarily formalizes 
existing arrangements between employers and sponsors. In addition to 
formalizing these agreements, they must be transmitted by the sponsor 
to OA, thereby imposing a new burden on sponsors.
    The Department estimates that sponsors that have non-collectively 
bargained programs would have a Training and Development Manager 
(private sector) spend 1 hour transmitting the adoption agreements with 
employers to OA. This estimate is based on program experience, and the 
Department seeks public comment on

[[Page 3237]]

this estimate. This would result in an annual cost to sponsors with 
non-collectively bargained programs of $217,738 (= 2,112 average annual 
non-collectively bargained programs x 1 hour x $103.10).
    In total, the annualized cost over the 10-year analysis period of 
the program standards adoption agreement provision is estimated at 
$217,738 at a discount rate of 3 percent and $217,738 at a discount 
rate of 7 percent. The total cost over the 10-year analysis period is 
estimated at $1.9 million at a discount rate of 3 percent and $1.5 
million at a discount rate of 7 percent.
(8) National Occupational Standards for Apprenticeship, National 
Program Standards for Apprenticeship, and National Guidelines for 
Apprenticeship Standards (Sec. Sec.  29.13 Through 29.15)
    The proposed rule would allow OA to create National Occupational 
Standards for Apprenticeship that would be suitable for adoption by 
program sponsors. This would extend existing work to identify and 
characterize competency-based occupational frameworks and ensure they 
meet the new standards of proposed Sec.  29.7. The Department estimates 
that a GS-13 level employee would require 40 hours to commission each 
new national occupational standard. This estimate is based on program 
experience, and the Department seeks public comment on this estimate. 
This would result in an annual cost of $47,628 (= 15 annual new 
national occupation determinations x 40 hours x $79.38 per hour).
    In total, the annualized cost over the 10-year analysis period of 
commissioning National Occupational Standards for Apprenticeship is 
estimated at $47,628 at both a discount rate of 3 percent and 7 
percent. The total cost over the 10-year analysis period is estimated 
at $406,277 at a discount rate of 3 percent and $334,519 at a discount 
rate of 7 percent.
(9) End-Point Assessments (Sec.  29.16)
    The proposed rule would require sponsors to conduct an end-point 
assessment with the apprentice after their completion of the registered 
apprenticeship program. The end-point assessment would objectively 
measure the apprentice's acquisition of the relevant knowledge, skills, 
and competencies necessary to demonstrate proficiency in the occupation 
covered by the program. The Department understands that many sponsors 
already perform end-point assessments but does not have data on how 
many do so. Therefore, the Department estimates the costs based on all 
sponsors conducting end-point assessments as a result of the proposed 
rule. The Registration Agency would award a Certificate of Completion 
to the apprentice after successful completion of the end-point 
assessment.
    The Department estimates that apprentices would spend 1 hour 
working with the sponsor answering questions and completing the end-
point assessment. This estimate is based on program experience, and the 
Department seeks public comment on this estimate. This would result in 
an annual cost to apprentices, with a cost in year 1 of $17,540,640 (= 
675,557 apprentices x 1 hour x $25.96 per hour). The Department 
estimates that sponsors would also have a Training and Development 
Manager (private sector) spend 1 hour working with the apprentices to 
assess their proficiency in the occupation covered by the program. This 
estimate is based on program experience, and the Department seeks 
public comment on this estimate. This would result in an annual cost to 
sponsors, with a cost in year 1 of $69,646,975 (= 675,557 apprentices x 
1 hour x $103.10). The Department estimates the Registration Agency 
would have a GS-7 staff spend 15 minutes (0.25 hour) per program 
awarding a Certificate of Completion to each apprentice after 
successful completion of the end-point assessment. This estimate is 
based on program experience, and the Department seeks public comment on 
this estimate. This would result in an annual cost, with a cost in year 
1 of $249,276 (= 26,492 x 0.25 hour x $37.64 per hour).
    In total, the annualized cost over the 10-year analysis period of 
the end-point assessment requirements is estimated at $105.3 million at 
a discount rate of 3 percent and $104.0 million at a discount rate of 7 
percent. The total cost over the 10-year analysis period is estimated 
at $898.5 million at a discount rate of 3 percent and $730.7 million at 
a discount rate of 7 percent.
(10) Recordkeeping (Sec.  29.18)
    The proposed rule would require participating employers to record 
and maintain additional information on end-point assessments and safety 
records. The Department estimates that office and administrative 
support staff (private sector) would spend 4 hours recording and 
maintaining the additional information. This estimate is based on 
program experience, and the Department seeks public comment on this 
estimate. This would result in an annual cost to participating 
employers, with a cost in year 1 of $5,573,384 (= 40,533 participating 
employers x 4 hours x $34.38 per hour).
    In total, the annualized cost over the 10-year analysis period of 
this recordkeeping requirement is estimated at $6.42 million at a 
discount rate of 3 percent and $6.36 million at a discount rate of 7 
percent. The total cost over the 10-year analysis period is estimated 
at $54.7 million at a discount rate of 3 percent and $44.6 million at a 
discount rate of 7 percent.
(11) Program Reviews (Sec.  29.19)
    The proposed rule would require Registration Agencies to conduct 
periodic program reviews at least every 5 years. Program reviews can 
consist of off-site reviews such as desk audits of submitted records or 
on-site reviews at the workplace of the sponsor or participating 
employer, and could involve examination and copying of relevant 
documents or interviews. The Registration Agency must also present a 
Notice of Program Review Findings to the sponsor. If a sponsor receives 
a Notice of Program Review Findings that indicates a failure of 
compliance, the sponsor must develop a compliance action plan that 
details a commitment to remediate the areas of noncompliance, precise 
actions to be taken, the time period over which the deficiency would be 
remedied, and identification of individuals responsible for corrections 
of deficiencies.
    The Department assumes that 20 percent of program sponsors would be 
subject to program reviews annually, such that in a 5-year period all 
program sponsors would be reviewed. The Department estimates that OA 
would conduct annual program reviews for 8.4 percent of sponsors based 
on the proportion of programs registered by OA and that a GS-13 level 
employee would spend 40 hours conducting each program review. This 
estimate aligns with the time estimate made in the 2016 Apprenticeship 
EEO RIA for the time required to conduct compliance reviews. The 
Department seeks public comment on this estimate. This would result in 
an annual cost to OA, with a cost in year 1 of $7,027,755 (= 26,492 
sponsors in year 1 x 8.4% x 40 hours x $79.38 per hour).
    The Department estimates that SAAs would conduct annual program 
reviews for the remaining 11.6 percent of sponsors and that a Training 
and Development Manager (State level) would spend 40 hours conducting 
each program review. This estimate aligns with the time estimate made 
in the 2016 Apprenticeship EEO RIA for the time required to conduct 
compliance reviews. The Department seeks public comment on this 
estimate. This would result in an annual cost to SAAs, with

[[Page 3238]]

a cost in year 1 of $9,162,569 (= 26,492 sponsors in year 1 x 11.6% x 
40 hours x $74.25 per hour).
    The Department estimates that 20 percent of sponsors would be found 
noncompliant and need to develop a compliance action plan. The 
Department thinks this estimate is reasonable due to the number of new 
program requirements that sponsors would need to implement but seeks 
public comment on this estimate. The Department estimates that a 
Training and Development Manager (private sector) would require 8 hours 
to develop and write the compliance action plan and 0.17 hour to submit 
it electronically. These estimates are based on program experience, and 
the Department seeks public comment on these estimates. This would 
result in an annual cost to sponsors, with a cost in year 1 of $892,559 
(= 26,492 sponsors in year 1 x 20% undergoing program reviews x 20% 
found noncompliant x 8.17 hours x $103.10 per hour).
    In total, the annualized cost over the 10-year analysis period of 
program reviews is estimated at $19.7 million at a discount rate of 3 
percent and $19.5 million at a discount rate of 7 percent. The total 
cost over the 10-year analysis period is estimated at $167.8 million at 
a discount rate of 3 percent and $136.8 million at a discount rate of 7 
percent.
(12) Data Sharing (Sec.  29.28)
    The proposed rule would require SAAs to furnish OA with 
apprenticeship-related data applicable to proposed Sec. Sec.  29.25 and 
29.28. Most SAAs already use RAPIDS and therefore would not face costs 
to develop software or IT infrastructure as a result of this provision. 
For the three SAAs that do not currently use RAPIDS, the Department 
assumes that they would face costs associated with developing the 
software and IT infrastructure as well as new costs for compiling and 
submitting their apprenticeship data. The Department assumes that all 
SAAs would face new costs for compiling and submitting their 
apprenticeship data.
    The Department estimates that the three SAAs not using RAPIDS would 
face a one-time cost associated with software and IT systems 
infrastructure of $100,000 and $50,000 in licensing costs. The 
Department also assumes that they would face annual costs associated 
with consulting costs and system maintenance of $75,000. This would 
result in costs to SAAs not using RAPIDS of $2,475,000 in the first 
year (= 11 SAAs not using RAPIDS x $225,000 for system infrastructure, 
licensing, and consulting and maintenance costs) and annual costs in 
years 2-10 of $825,000 (= 11 SAAs not using RAPIDS x $75,000 for annual 
consulting and system maintenance costs).
    The Department estimates that all SAAs would have a Training and 
Development Manager (State level) spend 32 hours compiling and 
submitting apprenticeship data. This estimate aligns with time 
estimates for similar activities in the 2016 WIOA RIA. The Department 
seeks public comment on this estimate. The Department further estimates 
that all SAAs would have 3 computer systems analysts (State level) 
spend 80 hours each working to help compile and submit apprenticeship 
data. This estimate aligns with time estimates for similar activities 
in the 2016 WIOA RIA for the time required to compile and submit 
apprenticeship data. The Department seeks public comment on this 
estimate. Finally, the Department estimates that all SAAs would have an 
office and administrative support staff (State level) spend 72 hours to 
assist with compiling and submitting apprenticeship data. This estimate 
aligns with time estimates for similar activities in the 2016 WIOA RIA. 
The Department seeks public comment on this estimate. This would result 
in an annual cost to SAAs of $685,359 (= 31 SAAs x 32 hours x $74.25 
per hour + 31 SAAs x 240 hours x $70.01 per hour + 31 SAAs x 72 hours x 
$40.70 per hour).
    In total, the annualized cost over the 10-year analysis period for 
data sharing is estimated at $1.70 million at a discount rate of 3 
percent and $1.73 million at a discount rate of 7 percent. The total 
cost over the 10-year analysis period is estimated at $14.5 million at 
a discount rate of 3 percent and $12.1 million at a discount rate of 7 
percent.
(13) SAA Reciprocity of Registrations (Sec.  29.26(d))
    In order to obtain or maintain full or provisional recognition 
status, SAAs would be required to establish a process and criteria for 
providing approval to apprentices, apprenticeship programs, and 
standards of apprenticeship. Under this requirement, SAAs would face a 
burden to develop and write a reciprocity statement. The Department 
estimates that each SAA would have a Training and Development Manager 
(State level) spend 4 hours to develop and write the reciprocity 
statement. This estimate is based on program experience, and the 
Department seeks public comment on this estimate. This would be a one-
time cost resulting in a first-year cost of $9,207 (= 31 SAAs x 4 hours 
x $74.25 per hour). In total, the annualized cost over the 10-year 
analysis period is estimated at $1,048 at a discount rate of 3 percent 
and $1,225 at a discount rate of 7 percent. The total cost over the 10-
year analysis period is estimated at $8,939 at a discount rate of 3 
percent and $8,605 at a discount rate of 7 percent.
(14) Submission of State Apprenticeship Plan (Sec.  29.27)
    In order to maintain recognition as an SAA, each SAA would be 
required to submit a State Apprenticeship Plan every 4 years, beginning 
in 2026. The State Apprenticeship Plan would contain strategic planning 
elements such as goals for expansion; promotion of DEIA; a narrative 
describing workforce development activities; and a description of its 
strategy and initiatives for ensuring its registered apprenticeship 
programs feature high-quality apprenticeships. The State Apprenticeship 
Plan also would include operational planning elements such as 
regulatory documentation, State EEO plan, complaint investigation plan, 
technical assistance plan, performance reporting process, program 
review plan, registration standards, reciprocity policy, and data 
sharing policy. Finally, the State Apprenticeship Plan would include a 
variety of assurances that the State would abide by relevant regulatory 
requirements, registration requirements, resource availability, and 
information availability. Under this requirement, SAAs would face a 
burden to write and document these requirements, and then submit their 
State Apprenticeship Plan.
    The Department estimates that each SAA would have a Training and 
Development Manager (State level) spend 86 hours to develop, write, 
review, and submit the State Apprenticeship Plan. This estimate aligns 
with the time estimate made in the 1205-0522 Supporting Statement for 
WIOA State Plans for the time required to write state plans. The 
Department seeks public comment on this estimate. This periodic cost 
would occur every 4 years, beginning in 2026. Therefore, SAAs would 
face costs in years 2, 6, and 10 of $197,948 (= 31 SAAs x 86 hours x 
$74.25 per hour). In total, the annualized cost over the 10-year 
analysis period is estimated at $58,575 at a discount rate of 3 percent 
and $57,723 at a discount rate of 7 percent. The total cost over the 
10-year analysis period is estimated at $499,656 at a discount rate of 
3 percent and $405,424 at a discount rate of 7 percent.

[[Page 3239]]

b. CTE Costs
(1) Rule Familiarization
    When the proposed rule becomes final and takes effect, registered 
CTE apprenticeship program sponsors, participating employers, and SAAs 
would need to familiarize themselves with the new regulation, thereby 
incurring a one-time cost. To estimate the cost of rule familiarization 
to sponsors, the Department estimates that each registered CTE 
apprenticeship program sponsor would have a Training and Development 
Manager (private sector) spend 4 hours reading and reviewing the new 
rule. This estimate aligns with the time estimate made in the 2016 DOL 
EEO Apprenticeship RIA for the time required to read and review the 
rule. The Department seeks public comment on this estimate. In 
subsequent years, this cost is only applied to new registered CTE 
apprenticeship program sponsors. The estimated cost in year 1 is 
$56,566 (= 137 sponsors in year 1 x 4 hours x $103.10 per hour). In 
years 2-10, only new sponsors would incur this cost. In years 2-10, new 
sponsors would face a cost of $169,699 (= 412 new sponsors x 4 hours x 
$103.10 per hour).
    To estimate the cost of rule familiarization to participating 
employers, the Department estimates that each participating employer 
would have a Training and Development Manager (private sector) spend 2 
hours reading and reviewing the new rule. This estimate was made by 
dividing the time estimate of 4 hours to read and review the rule from 
the 2016 DOL EEO Apprenticeship RIA in half. The Department anticipates 
it will take participating employers less time to read and review the 
rule since only certain provisions will be relevant to them. The 
Department seeks public comment on this estimate. In subsequent years, 
this cost is only applied to new CTE participating employers. The 
estimated cost in year 1 is $43,273 (= 210 participating employers in 
year 1 x 2 hours x $103.10 per hour). In years 2-10, only new 
participating employers would incur this cost. In year 2, for example, 
new employers would face a cost of $129,820 (= 630 new participating 
employers x 2 hours x $103.10 per hour).
    To estimate the cost of rule familiarization to SAAs, the 
Department estimates that each CTE SAA would have a Training and 
Development Manager (State level) spend 4 hours reading and reviewing 
the new rule. This estimate aligns with the time estimate made in the 
2016 DOL EEO Apprenticeship RIA for the time required to read and 
review the rule. The Department seeks public comment on this estimate. 
This would result in an annual cost to new CTE SAAs, with an estimated 
year 1 cost of $297 (= 1 CTE SAAs x 4 hours x $74.25 per hour).
    In total, rule familiarization would have annualized costs over the 
10-year analysis period of $278,274 at a discount rate of 3 percent and 
$274,349 at a discount rate of 7 percent. The total cost over the 10-
year analysis period is estimated at $2.4 million at a discount rate of 
3 percent and $1.9 million at a discount rate of 7 percent.
(2) Development of Industry Skills Frameworks (Sec.  29.24(b))
    The proposed rule would require OA to develop industry skills 
frameworks. OA would be required to develop training outlines that 
provide a structure for developing the personal effectiveness, 
academic, and workplace competencies required by an industry. The 
proposed rule would require the industry skills frameworks to describe 
the core competencies to be developed across an industry and must 
specify an on-the-job training outline detailing the minimum number of 
on-the-job training hours apprentices must attain in order to meet the 
specific benchmarks required by an industry.
    The Department assumes that OA would develop a specific industry 
skills framework for 16 industries \219\ participating in the program 
and estimates that OA would have a GS-13 level employee spend 80 hours 
per industry developing the training material and course content. This 
estimate aligns with the time estimate made in the 2020 DOL IRAP rule 
for the time required to develop a training plan. The Department seeks 
public comment on this estimate. The Department assumes that it can 
develop 8 industry skills frameworks per year and therefore that it 
will develop 8 in year 1 and 8 in year 2. The Department also assumes 
there will be engagement from industry leaders to support the review of 
the industry skills frameworks and industry leaders will spend a total 
of 2 hours providing their support for this review. This estimate is 
based on program experience, and the Department seeks public comment on 
this estimate.
---------------------------------------------------------------------------

    \219\ The basis for the 16 industries is the 16 Career Clusters 
that were created by Advance CTE on behalf of ED. Advance CTE, 
``Career Clusters,'' https://careertech.org/career-clusters (last 
visited Oct. 23, 2023).
---------------------------------------------------------------------------

    To estimate the costs to OA associated with developing industry 
skills frameworks, the Department multiplied the anticipated number of 
industry skills frameworks developed per year by the hour burden to 
develop the Skills Frameworks and by the GS-13 (Federal) loaded hourly 
wage. In years 1-2, the Department estimates costs to OA associated 
with developing industry skills frameworks to be $50,803 per year (= 8 
industry skills frameworks x 80 hours x $79.38 per hour).
    To estimate the costs to industry leaders associated with 
supporting the development of the industry skills frameworks, the 
Department multiplied the anticipated number of industry skills 
frameworks developed per year by the hour burden to develop the Skills 
Frameworks and by the industry leader's loaded hourly wage. In years 1-
2, the Department estimates costs to industry leaders associated with 
supporting the development of the industry skills frameworks to be 
$1,632 per year (= 8 industry skills frameworks x 2 hours x $102 per 
hour).
    In total, the annualized cost over the 10-year analysis period for 
program sponsors to develop industry skills frameworks is estimated at 
$11,762 at a discount rate of 3 percent and $13,498 at a discount rate 
of 7 percent. The total cost over the 10-year analysis period is 
estimated at $100,333 at a discount rate of 3 percent and $94,804 at a 
discount rate of 7 percent.
(3) CTE Apprenticeship Program Registration Applications (Sec.  
29.24(d)(2))
    The proposed rule would require a prospective program sponsor to 
electronically submit to a Registration Agency an application that 
includes written plans and assurances. The Department anticipates the 
program sponsor's Training and Development Manager (private sector) 
would spend 10 hours carrying out the duties associated with CTE 
apprenticeship registration applications. This estimate is based on 
program experience, and the Department seeks public comment on this 
estimate.
    To estimate the costs associated with CTE apprenticeship program 
registration applications, the Department multiplied the number of 
anticipated program sponsors in each year by the hour burden to compile 
application information and by the Training and Development Manager 
(private sector) loaded hourly wage. In year 1, the Department 
estimates costs associated with compiling and submitting program 
applications to be $141,416 (= 137 program sponsors x 10 hours x 
$103.10 per hour). In year 2, the Department estimates costs associated 
with compiling and submitting program applications to be $424,249 (= 
412 new program sponsors x 10 hours x $103.10 per hour).

[[Page 3240]]

    In total, the annualized cost over the 10-year analysis period for 
program sponsors to compile and submit program applications is 
estimated at $392,058 at a discount rate of 3 percent and $386,614 at a 
discount rate of 7 percent. The total cost over the 10-year analysis 
period is estimated at $3.3 million at a discount rate of 3 percent and 
$2.7 million at a discount rate of 7 percent.
(4) Selection of Diverse and Inclusive Cross-Section of Students (Sec.  
29.24(d)(2)(v)(A))
    The proposed rule would require program sponsors to ensure a 
diverse and inclusive cross-section of students is selected for 
participation. The Department assumes that in order to be compliant 
with the proposed rule, program sponsors would ensure that information 
is distributed regularly to underserved communities. The Department 
anticipates the program sponsor's human resources (HR) manager and 
administrative assistant would spend 0.5 hours, respectively, carrying 
out the duties associated with distributing information. This estimate 
aligns with the time estimate made in the 2016 EEO Apprenticeship RIA 
for the time spent on outreach to students from underserved 
communities. The Department seeks public comment on this estimate.
    To estimate the costs associated with ensuring a diverse and 
include cross-sections of students are selected, the Department 
multiplied the anticipated number of program sponsors per year by the 
hour burden to distribute information to underserved communities and by 
the HR manager as well as the administrative assistant loaded hourly 
wage (private sector), respectively. In year 1, the Department 
estimates costs associated with distributing information to underserved 
communities to be $10,086 (= 137 program sponsors x 0.5 hours x $32.93 
per hour + 137 program sponsors x 0.5 hours x $114.13 per hour).
    In total, the annualized cost over the 10-year analysis period for 
program sponsors to ensure a diverse and inclusive cross-section of 
students is selected is estimated at $138,880 at a discount rate of 3 
percent and $129,487 at a discount rate of 7 percent. The total cost 
over the 10-year analysis period is estimated at $1.2 million at a 
discount rate of 3 percent and $909,461 at a discount rate of 7 
percent.
(5) Sponsor Oversight of Participating Employers (Sec.  29.24(d)(4))
    The proposed rule would impose costs on sponsors to ensure that 
each of the employers that participate in the program adheres to all 
requirements of the proposed rule. The Department anticipates the 
program sponsor's HR manager would spend 8 hours performing the duties 
associated with overseeing the participating employers. This estimate 
is based on program experience, and the Department seeks public comment 
on this estimate.
    To estimate the costs associated with sponsor oversight of 
participating employers, the Department multiplied the number of 
program sponsors anticipated each year by the hour burden to ensure 
participating employers adhere to all the requirements of the proposed 
rule and by the HR manager hourly wage (private sector). In year 1, the 
Department estimates the costs associated with the oversight of 
participating employers to be $125,424 (= 137 program sponsors x 8 
hours x $114.13 per hour).
    In total, the annualized cost over the 10-year analysis period for 
program sponsors to oversee participating employers is estimated at 
$1.7 million at a discount rate of 3 percent and $1.6 million at a 
discount rate of 7 percent. The total cost over the 10-year analysis 
period is estimated at $14.7 million at a discount rate of 3 percent 
and $11.3 million at a discount rate of 7 percent.
(6) CTE Apprenticeship Agreement (Sec.  29.24(e))
    The proposed rule would require all program sponsors registered by 
a Registration Agency to develop and establish a written CTE 
apprenticeship agreement that contains the terms and conditions of the 
employment, education, and training of the CTE apprentice. The 
Department anticipates the program sponsor's Training and Development 
Manager (private sector) would spend 0.167 hours performing the duties 
associated with the CTE apprenticeship agreements. This estimate aligns 
with the time estimate made in the 2020 DOL IRAP rule for the time 
required to prepare and sign the apprenticeship agreement. The 
Department seeks public comment on this estimate.
    To estimate the costs associated with the CTE apprenticeship 
agreement, the Department multiplied the number of CTE apprentices 
anticipated to participate each year by the hour burden for program 
sponsors to prepare and sign the CTE apprenticeship agreement and by 
the Training and Development Manager wage (private sector). In year 1, 
the Department estimates the costs associated with preparing and 
signing CTE apprenticeship agreements to be $55,263 (= 3,210 CTE 
apprentices x 0.167 hours x $103.10 per hour).
    In total, the annualized cost over the 10-year analysis period for 
program sponsors to develop written CTE apprenticeship agreements is 
estimated at $421,712 at a discount rate of 3 percent and $395,717 at a 
discount rate of 7 percent. The total cost over the 10-year analysis 
period is estimated at $3.6 million at a discount rate of 3 percent and 
$2.8 million at a discount rate of 7 percent.
(7) Credentials Upon Completion of Program (Sec.  29.24(f))
    The proposed rule would impose costs on the Registration Agency to 
provide a nationally recognized certificate of completion of registered 
CTE apprenticeship and any other industry-recognized credential to 
students who meet the graduation requirements for the registered CTE 
apprenticeship program. The Department estimates that OA would issue 
41.8 percent of the total credentials based on the proportion of 
certificates issued by SAAs (58.2 percent). The Department anticipates 
that the duties associated with issuing completion credentials would be 
performed by a GS-13 level employee who would spend 0.25 hour providing 
a certificate of completion of registered CTE apprenticeship and other 
credentials to students. This estimate aligns with the time estimate 
made in the RAP section of this RIA for the time required to provide a 
certificate of compliance to each sponsor. The Department seeks public 
comment on this estimate. To estimate the costs associated with OA 
providing completion credentials to students, the Department multiplied 
the number of CTE apprentices anticipated to receive certificates each 
year by the hour burden for OA to prepare and issue the certificates 
and by the GS-13 wage (public sector). The Department assumes that the 
first cohort of students to receive completion credentials would be 
eligible beginning in year 2, and estimates the costs to OA associated 
with providing completion credentials to be $26,609 (= 3,210 CTE 
apprentices x 41.8% x 0.25 hour x $79.38 per hour).
    The Department estimates that SAAs would issue 58.2 percent of the 
total credentials based on the anticipated total number of CTE 
apprentices per year. The Department anticipates that the duties 
associated with issuing completion credentials would be performed by a 
Training and Development Manager (public sector) who would spend 0.25 
hour providing a certificate of completion of registered

[[Page 3241]]

CTE apprenticeship and other credentials to students. This estimate 
aligns with the time estimate made in the RAP section of this RIA for 
the time required to provide a certificate of compliance to each 
sponsor. The Department seeks public comment on this estimate. To 
estimate the costs associated with SAAs providing completion 
credentials to students, the Department multiplied the number of CTE 
apprentices anticipated to receive certificates each year by the hour 
burden for SAAs to prepare and issue the certificates and by the 
Training and Development Manager wage (public sector). In year 2, the 
Department estimates the costs to SAAs associated with providing 
completion credentials to be $34,692 (= 3,210 CTE apprentices x 58.2% x 
0.25 hour x $74.25 per hour).
    In total, the annualized cost over the 10-year analysis period for 
OA and SAAs to issue completion credentials is estimated at $376,291 at 
a discount rate of 3 percent and $348,039 at a discount rate of 7 
percent. The total cost over the 10-year analysis period is estimated 
at $3.2 million at a discount rate of 3 percent and $2.4 million at a 
discount rate of 7 percent.
(8) Program Registration (Sec.  29.24(g)(1))
    The proposed rule would require Registration Agencies to review CTE 
apprenticeship program registration applications and determine whether 
the program is eligible for registration within 90 days of receipt. 
Additionally, Registration Agencies would have to inform applicants in 
writing of decisions regarding program registration.
    The Department estimates that OA would register 41.8 percent of 
programs based on the proportion of programs that are typically 
registered by SAAs (58.2 percent). The Department anticipates that the 
duties of reviewing applications and making a determination would be 
performed by a GS-13 level employee who would spend 2 hours reviewing 
program registration applications and informing applicants of their 
decision. This estimate is based on program experience, and the 
Department seeks public comment on this estimate. To estimate the costs 
associated with OA reviewing CTE apprenticeship program registration 
applications and informing applicants of their decision, the Department 
multiplied the number of programs typically registered by OA by the 
hour burden for OA to review program registration applications and by 
the GS-13 hourly wage. This would result in an annual cost to OA, with 
a cost in year 1 of $9,097 (= 137 program sponsors x 41.8% x 2 hours x 
$79.38 per hour).
    The Department estimates that SAAs would register 58.2 percent of 
programs, and the time required for a Training and Development Manager 
to review program registration applications and inform applicants of 
their decision would be consistent with that of OA's at 2 hours. This 
estimate is based on program experience, and the Department seeks 
public comment on this estimate. To estimate the costs associated with 
SAAs reviewing CTE apprenticeship program registration applications and 
informing applicants of their decision, the Department multiplied the 
number of programs typically registered by SAAs by the hour burden for 
SAAs to review program registration applications and by the Training 
and Development Manager (State level) hourly wage. This would result in 
an annual cost to SAAs, with a cost in year 1 of $11,860 (= 137 program 
sponsors x 58.2% x 2 hours x $74.25 per hour).
    In total, the annualized cost over the 10-year analysis period for 
Registration Agencies to review CTE apprenticeship program registration 
applications and inform applicants of their decision is estimated at 
$58,102 at a discount rate of 3 percent and $57,295 at a discount rate 
of 7 percent. The total cost over the 10-year analysis period is 
estimated at $495,622 at a discount rate of 3 percent and $402,418 at a 
discount rate of 7 percent.
(9) Technical Assistance and Other Support (Sec.  29.24(g)(2))
    The proposed rule would require Registration Agencies to provide 
outreach, technical assistance, and other support to potential sponsors 
to support the adoption of registered CTE apprenticeship.
    The Department estimates that OA would provide technical assistance 
to 41.8 percent of program sponsors based on the proportion of programs 
that are typically registered by OA. The Department anticipates that 
the time required for a GS-13 level employee to provide technical 
assistance and other support to sponsors would be 3 hours. This 
estimate aligns with time estimates for similar activities in the 2016 
WIOA RIA. The Department seeks public comment on this estimate. To 
estimate the costs associated with OA providing technical assistance, 
the Department multiplied the number of programs typically registered 
by OA, and thus receiving technical assistance from OA, by the hour 
burden for OA to provide technical assistance and by the GS-13 hourly 
wage. This would result in an annual cost to OA, with a cost in year 1 
of $13,646 (= 137 program sponsors x 41.8% x 3 hours x $79.38 per 
hour).
    The Department estimates that SAAs would provide technical 
assistance to 58.2 percent of program sponsors based on the proportion 
of programs that are typically registered by SAAs. The Department 
anticipates that the time required for a Training and Development 
Manager to provide technical assistance and other support to sponsors 
would be 3 hours. This estimate aligns with time estimates for similar 
activities in the 2016 WIOA RIA. The Department seeks public comment on 
this estimate. To estimate costs associated with SAAs providing 
technical assistance, the Department multiplied the number of programs 
typically registered by SAAs, and thus receiving technical assistance 
from SAAs, by the hour burden for SAAs to provide technical assistance 
and by the Training and Development Manager (State level) hourly wage. 
This would result in an annual cost to SAAs, with a cost in year 1 of 
$17,791 (= 137 program sponsors x 58.2% x 3 hours x $74.25 per hour).
    In total, the annualized cost over the 10-year analysis period for 
Registration Agencies to provide outreach, technical assistance, and 
other support to potential sponsors is estimated at $432,862 at a 
discount rate of 3 percent and $403,586 at a discount rate of 7 
percent. The total cost over the 10-year analysis period is estimated 
at $3.7 million at a discount rate of 3 percent and $2.8 million at a 
discount rate of 7 percent.
(10) Program Reviews (Sec.  29.24(g)(4))
    The proposed rule would require Registration Agencies to conduct 
reviews of registered CTE apprenticeship programs at least every 5 
years. Program reviews can consist of off-site reviews such as desk 
audits of submitted records or on-site reviews at the workplace of the 
sponsor. On-site reviews could involve copying of relevant documents 
and interviews with employees, CTE apprentices, journeyworkers, 
supervisors, managers, and hiring officials. The Registration Agency 
must also provide a written Notice of Program Review Findings to the 
sponsor. If a sponsor receives a Notice of Program Review Findings that 
indicates a failure of compliance, the sponsor must develop a 
compliance action plan or submit a written rebuttal to the Registration 
Agency.
    The Department assumes that 20 percent of program sponsors would be 
subject to program reviews annually, such that in a 5-year period all 
program

[[Page 3242]]

sponsors would be reviewed. The Department estimates that OA would 
conduct annual program reviews for 8.4 percent of sponsors based on the 
proportion of programs registered by OA and that a GS-13 level employee 
would spend 40 hours conducting each program review. This estimate 
aligns with the time estimate made in the RAP section of this RIA for 
the time required to conduct program reviews. The Department seeks 
public comment on this estimate. This would result in an annual cost to 
OA, with a cost in year 1 of $36,388 (= 137 sponsors in year 1 x 8.4% x 
40 hours x $79.38 per hour).
    The Department estimates that SAAs would conduct annual program 
reviews for the remaining 11.6 percent of sponsors and that a Training 
and Development Manager (State level) would spend 40 hours conducting 
each program review. This estimate aligns with the time estimate made 
in the RAP section of this RIA for the time required to conduct program 
reviews. The Department seeks public comment on this estimate. This 
would result in an annual cost to SAAs, with a cost in year 1 of 
$47,442 (= 137 sponsors in year 1 x 11.6% x 40 hours x $74.25 per 
hour).
    The Department estimates that 20 percent of sponsors would be found 
noncompliant and need to develop a compliance action plan. The 
Department estimates that a Training and Development Manager (private 
sector) would require 8 hours to develop the compliance action plan and 
0.17 hour to submit it electronically. These estimates align with the 
time estimates made in the RAP section of this RIA for the time 
required to develop and submit the compliance action plan. The 
Department seeks public comment on these estimates. This would result 
in an annual cost to sponsors, with a cost in year 1 of $4,621 (= 137 
sponsors in year 1 x 20% undergoing program reviews x 20% found 
noncompliant x 8.17 hours x $103.10 per hour).
    In total, the annualized cost over the 10-year analysis period of 
program reviews is estimated at $1.2 million at a discount rate of 3 
percent and $1.1 million at a discount rate of 7 percent. The total 
cost over the 10-year analysis period is estimated at $10.4 million at 
a discount rate of 3 percent and $8.0 million at a discount rate of 7 
percent.
(11) Request for Reconsideration of Program Registration Status (Sec.  
29.24(g)(5) Through (7))
    The proposed rule would allow sponsors to file a request for 
reconsideration if their initial application is denied, renewal of the 
registration of a program is denied, or the program is deregistered. It 
would also require Registration Agencies to review the request and 
issue a written explanation of their final decision.
    The Department assumes that 25 percent of program sponsors would 
submit a request for reconsideration annually but seeks public comment 
on this assumption. The Department thinks this estimate is reasonable 
due to the level of coordination required for this model and since the 
program is new. The estimate is also based on the Department's 
experience with registered apprenticeship. The Department also assumes 
that the duties associated with preparing and submitting requests for 
reconsideration for program sponsors would be performed by a Training 
and Development Manager (private sector) who would spend 6 hours 
preparing requests. This estimate is based on program experience, and 
the Department seeks public comment on this estimate. In year 1, the 
Department estimates the costs for program sponsors associated with 
requests for reconsideration to be $21,212 (= 137 sponsors x 25% 
requesting consideration x 6 hours x $103.10 per hour). In year 2, the 
Department estimates the costs for new program sponsors associated with 
new requests for reconsideration to be $63,637 (= 412 new sponsors x 
25% requesting consideration x 6 hours x $103.10 per hour).
    The Department assumes that 41.8 percent of programs will be 
registered by OA. The Department also assumes that the duties 
associated with Registration Agencies reviewing requests for 
reconsideration for OA will be performed by a GS-13 level employee who 
will spend 2 hours reviewing requests. This estimate is based on 
program experience, and the Department seeks public comment on this 
estimate. In year 1, the Department estimates the costs for OA 
associated with requests for reconsideration to be $2,274 (= 137 
sponsors x 41.8% registered by OA x 25% requesting consideration x 2 
hours x $79.38 per hour). In year 2, the Department estimates costs for 
OA associated with new request for reconsideration to be $6,823 (= 412 
new sponsors x 41.8% registered by OA x 25% requesting consideration x 
2 hours x $79.38 per hour).
    The Department assumes that 58.2 percent of program sponsors will 
be registered by SAAs. The Department also assumes that the duties 
associated with Registration Agencies reviewing requests for 
reconsideration for SAAs will be performed by a Training and 
Development Manager (private sector) who will spend 2 hours reviewing 
requests. This estimate is based on program experience, and the 
Department seeks public comment on this estimate. In year 1, the 
Department estimates costs for SAAs associated with request for 
reconsideration to be $2,965 (= 137 sponsors x 58.2% registered by SAAs 
x 25% requesting consideration x 2 hours x $74.25 per hour). In year 2, 
the Department estimates costs for SAAs associated with new request for 
reconsideration to be $8,895 (= 412 new sponsors x 58.2% registered by 
SAAs x 25% requesting consideration x 2 hours x $74.25).
    In total, the annualized cost over the 10-year analysis period 
associated with requests for reconsideration of program status is 
estimated at $73,334 at a discount rate of 3 percent and $72,316 at a 
discount rate of 7 percent. The total cost over the 10-year analysis 
period is estimated at $625,555 at a discount rate of 3 percent and 
$507,917 at a discount rate of 7 percent.
(12) Data and Quality Metrics; Submission to Registration Agency (Sec.  
29.24(g)(9))
    The proposed rule would require CTE apprentices to provide their 
information to program sponsors. The Department assumes that CTE 
apprentices would spend 0.16 hour providing their information to 
program sponsors. This estimate aligns with the time estimate made in 
the RAP section of this RIA for the time apprentices spend providing 
their information to program sponsors. The Department seeks public 
comment on this estimate. To calculate the costs for CTE apprentices 
associated with providing information to program sponsors, the 
Department multiplied the number of anticipated CTE apprentices each 
year by the hour burden to provide information and by the CTE 
apprentice hourly wage (private sector). In year 1, the Department 
estimates the costs for CTE apprentices to provide their information to 
program sponsors to be $13,835 (= 3,210 CTE apprentices x 0.16 hour x 
$25.96 per hour).
    The proposed rule would require program sponsors to spend time 
compiling and sending to OA data on CTE apprentices, participating 
employers, and themselves. The Department assumes program sponsors 
would spend 0.167 hour (10 minutes) compiling and sending data on CTE 
apprentices, 0.167 hour on participating employers, and 0.67 hour on 
themselves. These estimates align with the time estimates made in the 
RAP section of this RIA for the time required to compile and send data. 
The Department seeks public comment on

[[Page 3243]]

these estimates. The Department also assumes that the duties associated 
with the hour burden to compile and send data would be performed by a 
Training and Development Manager (private sector). To calculate the 
costs to program sponsors associated with compiling and sending data, 
the Department multiplied the number of CTE apprentices, program 
sponsors, and employers anticipated each year by the respective hour 
burden to compile and send data and by the Training and Development 
Manager wage (private sector). In year 1, the Department estimates the 
costs to program sponsors associated with compiling and sending data to 
be $67,857 (= 3,210 CTE apprentices x 0.167 hour x $103.10 per hour + 
210 participating employers x 0.167 hour x $103.10 per hour + 137 
program sponsors x 0.67 hour x $103.10 per hour).
    The Department assumes that the duties associated with compiling 
and developing reports to be made publicly available would be performed 
by a GS-13 level employee who would spend 60 hours compiling and 
developing reports. This estimate is based on program experience, and 
the Department seeks public comment on this estimate. To calculate the 
costs for OA associated with compiling and developing reports, the 
Department multiplied the hour burden to compile and develop reports by 
the GS-13 wage. In year 1, the Department estimates the costs to OA 
associated with compiling and developing reports to be $4,763 (= 60 
hours x $79.38 per hour).
    The proposed rule would require CTE SAAs to compile and submit all 
CTE apprenticeship-related data. The Department assumes that the duties 
associated with compiling and submitting CTE apprenticeship-related 
data would be performed by management, computer systems, and 
administrative staff who would spend 32 hours, 240 hours, and 72 hours, 
respectively, compiling and submitting data. These assumptions are 
consistent with the assumptions in registered apprenticeship for 
similar activities. Additionally, the Department assumes that CTE SAAs 
would spend 40 hours compiling and developing reports to be made 
publicly available. This estimate is based on program experience, and 
the Department seeks public comment on this estimate. In year 1, the 
Department estimates the costs to CTE SAAs associated with compiling 
and developing reports to be $25,078 (= 1 CTE SAA x 32 hours x $74.25 
per hour + 1 SAA x 240 hours x $70.01 per hour + 1 SAA x 72 hours x 
$40.70 per hour + 1 SAA x 40 hours x $74.25 per hour).
    In total, the annualized costs over the 10-year analysis period 
associated with data quality and metrics are estimated at $1.3 million 
at a discount rate of 3 percent and $1.2 million at a discount rate of 
7 percent. The total cost over the 10-year analysis period is estimated 
at $10.7 million at a discount rate of 3 percent and $8.2 million at a 
discount rate of 7 percent.
5. Summary of Costs
    This proposed rule would result in costs from changes to the 
registered apprenticeship regulations and creation of the registered 
CTE apprenticeship model. Exhibit 12 presents a summary of the 
estimated costs for each quantified provision for the registered 
apprenticeship and registered CTE apprenticeship, respectively.

                                 Exhibit 12--Summary Table of Costs by Provision
                                        [2022 $millions, annualized, 7%]
----------------------------------------------------------------------------------------------------------------
                                                    Registered
                                                  apprenticeship                                       CTE  cost
      Registered apprenticeship provisions           cost per                CTE provisions               per
                                                     provision                                         provision
----------------------------------------------------------------------------------------------------------------
Rule familiarization...........................             $3.93  Rule familiarization.............       $0.27
New requirements for on-the-job training.......              0.86  Development of industry skills           0.01
                                                                    frameworks.
Wage analysis and career development...........              0.05  Apprenticeship program                   0.39
                                                                    registration application.
Occupation determination evaluation process....              0.12  Selection of diverse and                 0.13
                                                                    inclusive cross-section of
                                                                    students.
Data collection and reporting..................              8.55  Sponsor oversight................        1.61
Program registration...........................              0.43  Apprenticeship agreement.........        0.40
Reporting for program standards and adoption                 0.22  Credentials upon completion of           0.35
 agreement.                                                         program.
National occupation, program, and guidance                   0.05  Program registration.............        0.06
 standards.
End-point assessments..........................            104.03  Technical assistance and other           0.40
                                                                    support.
Recordkeeping..................................              6.36  Program reviews..................        1.14
Program reviews................................             19.48  Request for reconsideration of           0.07
                                                                    program registration status.
Data sharing...................................              1.73  Data and quality metrics.........        1.17
SAA reciprocity of registrations...............             0.001
Submission of State Apprenticeship Plan........              0.06
----------------------------------------------------------------------------------------------------------------

    The proposed rule would result in quantified costs to registered 
apprenticeship SAAs, sponsors, participating employers, and 
apprentices. The proposed rule would also result in quantified costs to 
CTE program SAAs, sponsors, participating employers, and apprentices. 
Exhibit 13 presents a summary of the quantifiable costs to each type of 
entity associated with the proposed rule.

             Exhibit 13--Summary Table of Costs by Provision
                    [2022 $millions, annualized, 7%]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Registered Apprenticeship Program Entities:
    SAAs................................................          $13.52
    Sponsors............................................           91.34
    Participating Employers.............................            7.77

[[Page 3244]]

 
    Apprentices.........................................           22.60
    OA..................................................           10.62
CTE Program Entities:
    SAAs................................................            1.19
    Sponsors............................................            3.66
    Participating Employers.............................            0.12
    Apprentices.........................................            0.18
    OA..................................................            0.84
------------------------------------------------------------------------

    Exhibit 14 presents a summary of the quantifiable costs associated 
with this proposed rule.

                                           Exhibit 14-Estimated Costs
                                                [2022 $millions]
----------------------------------------------------------------------------------------------------------------
                                                                  Registered
                             Year                               apprenticeship     CTE  program    Total  costs
                                                                 program costs        costs
----------------------------------------------------------------------------------------------------------------
1............................................................            $147.2             $0.8          $147.9
2............................................................             126.8              2.5           129.3
3............................................................             131.9              3.7           135.6
4............................................................             137.3              4.9           142.2
5............................................................             142.6              6.1           148.8
6............................................................             148.2              7.3           155.5
7............................................................             153.3              8.6           161.9
8............................................................             158.7              9.7           168.4
9............................................................             164.1             11.0           175.0
10...........................................................             169.6             12.2           181.8
                                                              --------------------------------------------------
    Annualized, 3% discount rate, 10 years...................             147.0              6.4           153.4
    Annualized, 7% discount rate, 10 years...................             145.9              6.0           151.9
                                                              --------------------------------------------------
    Total, 3% discount rate, 10 years........................           1,254.2             54.4         1,308.6
    Total, 7% discount rate, 10 years........................           1,024.5             42.1         1,066.6
----------------------------------------------------------------------------------------------------------------

6. Nonquantifiable Costs and Cost Savings
    This section addresses the nonquantifiable costs and cost savings 
of the proposed rule.
a. Costs
(1) Authority To Determine Occupations Suitable for Apprenticeship 
(Sec.  29.7(a))
    The proposed rule would give the authority to determine occupations 
suitable for registered apprenticeship only to OA. Currently, some 
occupations are determined to be suitable for registered apprenticeship 
only by SAAs. Those occupations determined only by SAAs, and not OA, to 
be suitable for registered apprenticeship would need to submit new 
requests for the occupations to be approved by OA for them to continue 
to be suitable for registered apprenticeship. The Department assumes 
that sponsors would submit new requests for all occupations only 
approved by SAAs to be determined suitable for registered 
apprenticeship therefore incurring a one-time cost. The Department does 
not have data on the number of occupations that are only determined to 
be suitable for registered apprenticeship by SAAs and therefore is 
unable to quantify the cost of submitting the new requests for 
occupation suitability. The Department seeks public comments on data 
supporting costs of occupation suitability determinations to SAAs and 
sponsors.
(2) New Requirements for Off-the-Job Training Documentation (Sec.  
29.7(b)(4))
    The proposed rule would require sponsors to submit documentation of 
the curriculum and number of off-the-job training hours, which cannot 
be less than 144 hours. Programs that do not meet the 144-hour minimum 
requirement would need to update their off-the-job training 
requirements and submit documentation. The Department does not have 
data on the number of programs that do not meet the minimum 144-hour 
requirements of off-the-job training and is therefore unable to 
quantify this cost.
(3) Deregistration (Sec.  29.20)
    As discussed under the benefits section, the proposed rule would 
add a suspension step prior to deregistration allowing sponsors an 
adequate span of time to update their practices and be in compliance 
without having to be deregistered and then reregistered at a later 
date. Both SAAs and OA would need to develop a process for suspension 
procedures and offer technical assistance to sponsors to promote 
compliance with the suspension process. The Department is unable to 
quantify this cost due to uncertainty with procedures that would be 
developed and a lack of data on how many suspensions would be expected 
to occur. In addition, the addition of the suspension step could reduce 
the number of costly deregistrations, potentially even leading to cost 
savings for Registration Agencies.
(4) State Apprenticeship Councils (Sec.  29.26(d))
    The proposed rule would increase and clarify the requirements for 
State

[[Page 3245]]

Apprenticeship Councils that are established by SAAs. State 
Apprenticeship Councils provide SAAs with written, nonbinding advice, 
recommendations, research, and reports concerning apprenticeship-
related matters, and on the submission of the State Apprenticeship 
Plan. The proposed rule would establish requirements for State 
Apprenticeship Council composition including requiring State 
Apprenticeship Councils to be composed of individuals who are familiar 
with occupations suitable for registered apprenticeship, registered 
apprenticeship programs, and opportunities across a wide range of 
industries and sectors including employers, representatives of 
employers, representatives of labor organizations, members of State 
workforce development boards, representatives of the secondary or 
postsecondary education system, and other stakeholders of the National 
Apprenticeship System. State Apprenticeship Council participation would 
be voluntary and therefore impose de minimis costs on individuals. 
However, SAAs would have a cost to recruit members and maintain the 
State Apprenticeship Council. The Department lacks data on the burden 
or costs associated with establishing and maintaining a State 
Apprenticeship Council and is therefore unable to quantify the costs of 
this provision. The Department seeks public comment on data or 
estimates of the costs associated with establishing and maintaining a 
State Apprenticeship Council for any States that would need to create 
State Apprenticeship Councils.
b. Cost Savings
(1) Exemptions (Sec.  29.23)
    The proposed rule would provide relief to certain sponsors that can 
justify being exempt from certain requirements of subpart A of 29 CFR 
part 29. This would result in cost savings for sponsors and potentially 
participating employers. The Department is unable to project how many 
exemptions would be requested and granted, as well as what provisions 
the exemptions would be for. Therefore, the Department is unable to 
estimate the potential cost savings resulting from exemptions. The 
Department seeks public comment on how sponsors may use the exemption 
provision.
7. Nonquantifiable Transfer Payments
a. Progressive Wage Increases (Sec.  29.8(a)(17)(B))
    The proposed rule would require a graduated schedule of increasing 
wages from entry wage to the journeyworker wage that includes at least 
one incremental wage step during the first 2,000 hours of on-the-job 
training and a final wage that is at least 75 percent of the 
journeyworker wage paid by the employer for that occupation. These 
changes would result in transfer payments from participating employers 
to apprentices. Participating employers that, in the baseline, do not 
increase wages during the first 2,000 hours or do not pay an end-point 
wage of 75 percent of the journeyworker wage, would need to pay higher 
total wages over the apprenticeship term. The Department lacks data on 
the number of participating employers that do not offer at least one 
wage increase for every 2,000 hours or the number of participating 
employers that do not pay an end-point wage of 75 percent of the 
journeyworker wage. Therefore, the Department is unable to quantify the 
transfer payments associated with either change. The Department seeks 
public comment on how progressive wage increases from this provision 
would impact apprentices and employers, specifically data that would 
indicate how many apprentices are currently not receiving progressive 
wage increases.
b. Unreimbursed Costs to Apprentices (Sec.  29.8(a)(18))
    The proposed rule would limit the unreimbursed costs, expenses, and 
fees that an apprentice may incur during the registered apprenticeship 
program to those that are necessary and reasonable and do not impose 
financial barriers. The Department believes that there are currently 
some instances in which apprentices are required to pay costs, 
expenses, or fees that are excessive and unreasonably burden the 
apprentice. The Department expects that this provision would reduce the 
instances of these and as a result, be a transfer payment from sponsors 
or participating employers to apprentices. The Department does not have 
data on the prevalence of excessive costs to apprentices, and therefore 
is unable to quantify this transfer payment.
8. Distributional Impact Analysis
    E.O. 13985, ``Advancing Racial Equity and Support for Underserved 
Communities Through the Federal Government,'' seeks to advance equity 
in agency actions and programs. The term equity is defined as 
consistent and systematic fair, just, and impartial treatment of 
individuals, including individuals who belong to underserved 
communities, such as women; Black, Latino, and Indigenous and Native 
American persons; Asian Americans and Pacific Islanders; other persons 
of color; members of religious minorities; lesbian, gay, bisexual, 
transgender, and queer persons; persons with disabilities; persons who 
live in rural areas; and persons otherwise adversely affected by 
persistent poverty or inequality.
    To assess the impact of the proposed rule on equity, the Department 
analyzed Census data from the 2020 American Community Survey with data 
on the demographic distribution of registered apprenticeship programs. 
As shown in Exhibit 15 below, certain underserved communities are well 
represented in registered apprenticeship programs and are approximately 
equal to or exceed the distribution of these groups in the Census 
Workforce Population.\220\ This includes individuals who identify as 
Hawaiian/Pacific Islander, Hispanic, Native American, Black, Veteran, 
and Youth. Although the remaining demographic groups' representation in 
registered apprenticeship programs does not yet reflect the overall 
U.S. workforce, significant progress has been made and efforts continue 
to advance equity for underserved communities. This proposed rule tries 
to further advance registered apprenticeship as an equitable program by 
increasing the rights of apprentices such as by removing non-compete 
provisions, improving the complaint process, ensuring progressive wage 
increases through an apprentice's tenure, and other quality 
improvements to registered apprenticeship.
---------------------------------------------------------------------------

    \220\ U.S. Census Bureau, ``American Community Survey Data,'' 
2020, https://www.census.gov/programs-surveys/acs/data.html.

[[Page 3246]]



  Exhibit 15--Demographic Comparison Between U.S. Census Workforce and
                    Registered Apprenticeship Program
------------------------------------------------------------------------
               Demographic                  Census (%)        OA (%)
------------------------------------------------------------------------
Asian...................................            6.11            2.04
Black or African American...............           11.89           10.77
Disabled................................            4.94            1.12
Hawaiian/Pacific Islander...............            0.18            1.10
Hispanic or Latino......................           17.86           22.75
Multiracial.............................            4.34            1.10
Native American.........................            0.68            1.60
Veteran.................................            4.20            7.09
White...................................           71.63           61.74
Women...................................           43.15            13.8
Youth...................................           12.64           39.00
------------------------------------------------------------------------

    The advancement of worker rights and pay through changes in 
registered apprenticeship from removal of non-compete provisions, 
improvements to the complaint process, progressive wage increases, and 
other quality improvements to registered apprenticeship would have the 
potential to have two distributional impacts: (1) for the existing 
distribution of registered apprenticeship, which serves underserved 
communities at a rate equal to or higher than the population, improve 
their economic outcomes; and (2) have the potential to make registered 
apprenticeship more attractive and increase further the representation 
of underserved communities.
    For the apprentices in the current distribution of registered 
apprenticeship, as shown in Exhibit 15, improvements in registered 
apprenticeship would improve their economic outcomes as described by 
the benefits of the proposed rule. Workers could potentially receive 
higher wages by improving their labor mobility, would participate in 
higher quality registered apprenticeship programs, and would face fewer 
financial barriers affecting their economic future.
    The reduction in financial barriers would potentially increase 
participation by underserved communities. Many of the underserved 
communities are economically disadvantaged or face other workplace-
related barriers. Reducing financial barriers and improving economic 
outcomes from registered apprenticeship could incentivize greater 
participation by those underserved communities. Changes to the 
registered apprenticeship model, combined with prior updated EEO 
regulations for registered apprenticeship programs, which were released 
in 2016, would help businesses to reach a larger and more diverse pool 
of workers, while also protecting apprentices and applicants from 
discrimination.\221\ The effects of the Department's efforts are 
evident in the demographic data provided by 686,000 apprentices between 
2010 and 2019.\222\ These data show that the representation of Asian 
apprentices has increased from 1.7 percent in 2010 to 2.2 percent in 
2019.\223\ Additionally, the distribution of Black or African American 
apprentices has grown from 12.8 percent in 2010 to 17.1 percent in 
2019.\224\ This demonstrates that efforts to advance equity in 
registered apprenticeship programs have proven to be effective thus 
far, and this work will continue to ensure that underserved communities 
are represented in these programs. The new registered CTE 
apprenticeship program would expand worker protections and anti-
discrimination initiatives to youth apprentices.
---------------------------------------------------------------------------

    \221\ OA, ``Diversity, Equity, Inclusion, and Accessibility,'' 
https://www.apprenticeship.gov/employers/diversity-equity-inclusion-accessibility (last visited July 20, 2023).
    \222\ DOL, ``Equity Snapshot: Apprenticeships in America,'' Nov. 
4, 2021, https://blog.dol.gov/2021/11/03/equity-snapshot-apprenticeships-in-america.
    \223\ Ibid.
    \224\ Ibid.
---------------------------------------------------------------------------

    Although the participation of nearly all underserved communities 
has become more closely aligned with the makeup of the overall U.S. 
workforce, women's representation in registered apprenticeship programs 
still falls well below this metric. Although women comprise 43.15 
percent of the American workforce in 2020,\225\ only 13.8 percent of 
all apprentices are women in 2022.\226\ According to BLS, women 
accounted for only 10.9 percent of total employed construction workers 
in 2022,\227\ and only 4.2 percent of those working skilled 
construction trades occupations.\228\ The Department's Women's Bureau 
has worked to expand opportunities for women by administering the WANTO 
grant program.\229\ Since 2017, approximately 15 million in grant 
funding has been awarded to help recruit, train, and retain more women 
in pre-apprenticeship and registered apprenticeship programs in 
industries where they are typically underrepresented.\230\ This grant 
program, amongst the previously discussed reduction of financial 
barriers by this proposed rule, will continue to create a pathway for 
more women, including those that are economically disadvantaged, to 
enter registered apprenticeship programs.\231\ This proposed rule would 
ensure that all registered apprenticeship programs, including those 
targeting the disadvantaged, maintain high-quality programming, report 
more data that can be used to analyze participation and outcomes, and 
do not impose unnecessary financial burdens. The creation of the 
registered CTE apprenticeship model would also provide more 
opportunities for women to get into registered apprenticeship

[[Page 3247]]

programs at an earlier stage in their career.
---------------------------------------------------------------------------

    \225\ U.S. Census Bureau, ``American Community Survey Data,'' 
2020, https://www.census.gov/programs-surveys/acs/data.html.
    \226\ OA, ``Women in Apprenticeship,'' Aug. 2022, https://www.apprenticeship.gov/sites/default/files/dol-industry-factsheet-series-women.pdf.
    \227\ BLS, ``Labor Force Statistics from the Current Population 
Survey,'' Jan. 25, 2023, https://www.bls.gov/cps/cpsaat18.htm.
    \228\ Institute for Women's Policy Research, ``Numbers Matter: 
Women Working in Construction,'' July 2023, https://iwpr.org/wp-content/uploads/2023/07/Quick-Figure-construction-July-2023.pdf.
    \229\ OA, ``WANTO Grant Program,'' https://www.dol.gov/agencies/wb/grants/wanto (last visited July 20, 2023).
    \230\ Ibid.
    \231\ DOL, Women's Bureau, ``Advancing Opportunities for Women 
through Apprenticeship,'' Jan. 2021, https://www.dol.gov/sites/dolgov/files/WB/media/AdvancingOpportunitiesWomenthroughApprenticeship-jan2021.pdf.
---------------------------------------------------------------------------

9. Regulatory Alternatives
    OMB Circular A-4, which outlines best practices in regulatory 
analysis, directs agencies to analyze alternatives if such alternatives 
best satisfy the philosophy and principles of E.O. 12866. Accordingly, 
the Department considered four regulatory alternatives for changes to 
registered apprenticeship, two less burdensome and two more burdensome 
than the proposed rule. Under the first alternative, end-point 
assessments (proposed Sec.  29.16) would not be required under the 
proposed rule. Under the second alternative, program reviews (proposed 
Sec.  29.19) would only be conducted for cause. Under the third 
alternative, program reviews (proposed Sec.  29.19) would be conducted 
for all sponsors every 2 years rather than every 5 years. Finally, 
under the fourth alternative, end-point assessments (proposed Sec.  
29.16) would be conducted by an independent third party. The Department 
seeks comment on these four regulatory alternatives as well as 
additional regulatory alternatives for the Department to consider.
    For the first alternative the Department considered removing the 
requirement for end-point assessments. To estimate the reduction in 
costs under this alternative, the Department subtracted the estimated 
costs of end-point assessments from the total costs estimated of the 
proposed rule. Over the 10-year analysis period, the annualized costs 
are estimated at $41.8 million at a discount rate of 7 percent. In 
total, this alternative is estimated to result in costs of $293.8 
million at a discount rate of 7 percent.
    The Department decided not to pursue this alternative because end-
point assessments are a key method for sponsors to assess the skills 
and knowledge acquired by the apprentice. They help to measure and 
ensure the quality of registered apprenticeship programs.
    For the second alternative the Department considered conducting 
program reviews only for cause, rather than for all sponsors every 5 
years. To estimate the reduction in costs under this alternative, the 
Department adjusted the calculations described in the subject-by-
subject analysis for program reviews (proposed Sec.  29.19). The 
Department estimated that instead of all sponsors undergoing a program 
review every 5 years, only 320 sponsors would receive program reviews 
in each year. The Department maintained the assumption that 20 percent 
of those program reviews would find noncompliance and require a 
subsequent compliance action plan. The Department maintained the cost 
estimates for all other provisions. Over the 10-year analysis period, 
the annualized costs are estimated at $127.9 million at a discount rate 
of 7 percent. In total, this alternative is estimated to result in 
costs of $898.2 million at a discount rate of 7 percent.
    The Department decided not to pursue this alternative because 
conducting program reviews only for cause would miss a large number of 
programs that may need reviews. To ensure high-quality registered 
apprenticeship programs, and that all programs abide by the regulatory 
requirements of registered apprenticeship, the Department believes that 
all registered apprenticeship programs should be reviewed over a 5-year 
period as specified in the proposed rule. This 5-year period ensures 
that the Department has the resources available to conduct reviews and 
that the review is not overly burdensome on programs undergoing the 
review.
    For the third alternative, the Department considered conducting 
program reviews for all registered apprenticeship programs every 2 
years, rather than for all programs every 5 years. This would increase 
the frequency at which the Department could identify noncompliance and 
potentially improve the quality of registered apprenticeship programs 
by ensuring closer compliance with the regulatory requirements. To 
estimate the increase in costs under this alternative, the Department 
adjusted the calculations described in the subject-by-subject analysis 
for program reviews (proposed Sec.  29.19). The Department estimated 
that instead of all sponsors undergoing a program review every 5 years, 
they would receive a program review every 2 years. This would increase 
the annual number of program reviews conducted by SAAs (from 3,085 in 
year 1 to 7,713) and by OA (from 2,213 in year 1 to 5,533). The 
Department maintained the cost estimates for all other provisions. Over 
the 10-year analysis period, the annualized costs are estimated at 
$196.9 million at a discount rate of 7 percent. In total, this 
alternative is estimated to result in costs of $1,383.1 million at a 
discount rate of 7 percent.
    The Department decided not to pursue this alternative because 
conducting program reviews every 2 years would increase costs by more 
than the benefit of more frequent program reviews. In addition, OA, and 
potentially SAAs, would lack the resources to conduct the large number 
of annual program reviews required. The Department welcomes comments 
with recommendations for how OA could use its resources most 
effectively to identify and review more frequently programs that need 
improvement.
    For the fourth and final alternative the Department considered 
requiring end-point assessments to be conducted by an independent third 
party. An independent third party would remove any potential for 
conflicts of interest related to the perceived effectiveness of the 
sponsor's registered apprenticeship program that could occur by having 
sponsors conduct end-point assessments themselves. Requiring the end-
point assessment to be conducted by an independent third party would 
have the potential to increase the quality of registered apprenticeship 
programs and ensure apprentices complete the program with the tools and 
skills needed to succeed. To estimate the increase in costs under this 
alternative, the Department adjusted the calculations described in the 
subject-by-subject analysis for end-point assessments (proposed Sec.  
29.16). The Department increased the time required for a Training and 
Development Manager (private sector) from 1 hour to 4 hours to account 
for additional preparation, synthesis of findings, and reporting of 
findings by the independent third party. The Department maintained the 
estimated cost of all other provisions of the proposed rule. Over the 
10-year analysis period, the annualized costs are estimated at $646.3 
million at a discount rate of 7 percent. In total, this alternative is 
estimated to result in costs of $4,539.5 million at a discount rate of 
7 percent.
    The Department decided not to pursue this alternative because the 
burden placed on registered apprenticeship programs is estimated to be 
too high for the resulting benefits of independent third-party end-
point assessments.
    The Department presents a comparison of the costs of each of the 
four alternatives and the proposed rule in Exhibit 16 below.

[[Page 3248]]



                             Exhibit 16--Summary of Proposed and Alternatives Costs
                                                [2022 $millions]
----------------------------------------------------------------------------------------------------------------
              Year                     NPRM           Alt. 1          Alt. 2          Alt. 3          Alt. 4
----------------------------------------------------------------------------------------------------------------
1...............................          $147.2           $59.7          $131.2          $172.8          $408.7
2...............................           126.8            35.1           110.1           153.3           400.9
3...............................           131.9            36.1           114.7           159.4           418.7
4...............................           137.3            37.2           119.4           165.6           436.6
5...............................           142.6            38.4           124.2           171.9           454.6
6...............................           148.2            39.7           129.1           178.4           472.7
7...............................           153.3            40.7           133.7           184.4           490.4
8...............................           158.7            41.8           138.4           190.7           508.4
9...............................           164.1            43.0           143.2           197.0           526.3
10..............................           169.6            44.3           148.1           203.4           544.5
                                 -------------------------------------------------------------------------------
    Annualized, 3% discount rate           147.0            41.7           128.6           185.4           539.4
    Annualized, 7% discount rate           145.9            41.8           127.9           196.9           646.3
                                 -------------------------------------------------------------------------------
    Total, 3% discount rate, 10          1,254.2           355.6         1,097.0         1,581.8         4,601.3
     years......................
    Total, 7% discount rate, 10          1,024.5           293.8           898.2         1,383.1         4,539.5
     years......................
----------------------------------------------------------------------------------------------------------------

    In addition to the four regulatory alternatives discussed above, 
the Department also considered maintaining the status quo. E.O. 12866 
states, ``In deciding whether and how to regulate, agencies should 
assess all costs and benefits of available regulatory alternatives, 
including the alternative of not regulating.'' Accordingly, the 
Department considered not implementing any of the provisions in this 
proposed rule. Under the status quo alternative, the Department would 
retain current program standards, apprenticeship agreements, and state 
governance requirements, and would not develop a registered CTE 
apprenticeship model. Doing so would incur no new costs or benefits. 
The Department decided against maintaining the status quo because the 
Department believes the proposed rule would improve the capacity of the 
National Apprenticeship System to respond to evolving employer needs, 
provide workers equitable pathways to good jobs, and increase the 
system's long-term resilience.

B. Regulatory Flexibility Act, Small Business Regulatory Enforcement 
Fairness Act of 1996, and Executive Order 13272 (Proper Consideration 
of Small Entities in Agency Rulemaking)

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601 et seq., 
as amended by the Small Business Regulatory Enforcement Fairness Act of 
1996, Public Law 104-121 (Mar. 29, 1996), hereafter jointly referred to 
as the RFA, requires agencies to prepare an initial regulatory 
flexibility analysis (IRFA) when proposing, and a final regulatory 
flexibility analysis when issuing, regulations that will have a 
significant economic impact on a substantial number of small entities.
    The Department believes that this proposed rule would have a 
significant economic impact on a substantial number of small entities 
and is therefore publishing this IRFA as required. It should be noted, 
however, that participation in registered apprenticeship programs and 
registered CTE apprenticeship programs is voluntary; therefore, only 
small entities that choose to continue participate would experience an 
economic impact--significant or otherwise. The Department anticipates 
that small businesses would continue to participate only if they 
believe the benefits will outweigh the costs. Because participation is 
voluntary, the increased burdens associated with this proposed rule may 
result in certain entities choosing to discontinue participation in the 
National Apprenticeship System. On the whole, however, the Department 
expects this rulemaking to facilitate the expansion and growth of 
registered apprenticeship.
1. Why the Action by the Agency Is Being Considered
    The NAA has not been changed since the New Deal. There is need for 
a renewed commitment to registered apprenticeship and a modern system. 
In addition, there is need for a registered pathway for CTE 
apprenticeship. It has been decades since there has been a serious 
overhaul and update of registered apprenticeship regulations to address 
labor standards in a rapidly changing economy. This proposed rule would 
enhance labor standards to affirm guarantees and results for workers, 
create a consistent navigable system to support expansion across 
industries, and create equitable pathways to registered apprenticeship 
for underserved communities and youth. In addition, it would extend the 
high-quality requirements associated with registered apprenticeship to 
the newly created registered CTE apprenticeship model.
2. Objectives and Legal Basis for the Proposed Rule
    The NAA (29 U.S.C. 50) authorizes the Secretary of Labor 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 their inclusion in contracts of 
apprenticeship, to cooperate with States to formulate and promote such 
standards, and to bring together employers and labor for the 
formulation of programs of apprenticeship. Pursuant to this authority, 
the Department has established regulations governing the registration 
of apprenticeship programs and apprentices at 29 CFR part 29 that 
prescribe minimum quality and content requirements with respect to a 
program's standards of apprenticeship and its apprenticeship 
agreements; establish procedures concerning the registration, 
cancellation, and deregistration of apprenticeship programs; and set 
forth a mechanism for the recognition of SAA as Registration Agencies. 
The steady expansion of the registered apprenticeship model has 
revealed the need to revise and modernize the policies and procedures 
contained in the current version of 29 CFR part 29 in order to promote 
dual goals of fostering innovation while preserving and enhancing the 
quality and effectiveness of the registered apprenticeship model.

[[Page 3249]]

3. Description and Estimate of the Small Entities Affected by the 
Proposed Rule
    The proposed rule would primarily affect program sponsors and 
participating employers in registered apprenticeship. Registered 
apprenticeship program sponsors may be employers, employer 
associations, industry associations, or labor management organizations 
and, thus, may represent businesses, small businesses, and not-for-
profit organizations. The proposed rule would also affect program 
sponsors and participating employers in registered CTE apprenticeship. 
Registered CTE apprenticeship program sponsors may be secondary schools 
and postsecondary institutions. This analysis focuses on the 
participating employers and sponsors that participate in registered 
apprenticeship programs or registered CTE apprenticeship programs and 
would incur costs from the proposed rule. As explained in the E.O. 
12866 section above, the Department used historical program data for 
registered apprenticeship, and the Department's best estimates of CTE 
participation, to estimate the number of participating employers and 
sponsors that are projected to participate in registered apprenticeship 
programs and registered CTE apprenticeship programs. Exhibit 17 below 
summarizes the projections over the 10-year analysis period.

                      Exhibit 17--Projected Number of Sponsors and Participating Employers
----------------------------------------------------------------------------------------------------------------
                                                           Total registered
                                        Total registered    apprenticeship    Total registered      Total CTE
                 Year                    apprenticeship         program      CTE apprenticeship   participating
                                        program sponsors     participating    program sponsors      employers
                                                               employers
----------------------------------------------------------------------------------------------------------------
1....................................              26,492            40,533                 137              210
2....................................              27,434            41,974                 549              839
3....................................              28,376            43,415                 960            1,469
4....................................              29,318            44,857               1,372            2,099
5....................................              30,260            46,298               1,783            2,728
6....................................              31,202            47,739               2,195            3,358
7....................................              32,144            49,180               2,606            3,988
8....................................              33,086            50,622               3,018            4,617
9....................................              34,028            52,063               3,429            5,247
10...................................              34,970            53,504               3,841            5,876
----------------------------------------------------------------------------------------------------------------

    The Department lacks data on the size of these sponsors and 
participating employers. Therefore, the Department assumes that 
registered apprenticeship program sponsors will have the same size 
distribution as the firms in each of the 19 major industry sectors 
represented in registered apprenticeship. In addition to the 19 major 
industry sectors, the Department assumes that the Educational Services 
sector (NAICS 61) would have a similar representation in size 
distribution for registered CTE apprenticeship program sponsor. This 
assumption allows the Department to conduct a robust analysis using 
data from the Census Bureau's Statistics of U.S. Businesses,\232\ which 
include the number of firms, number of employees, and annual revenue by 
industry and firm size. Using these data allows the Department to 
estimate the per-program costs of the proposed rule as a percent of 
revenue by industry and firm size. The Department also lacks data on 
the size of participating employers in either registered apprenticeship 
or registered CTE apprenticeship, but as discussed below, is able to 
conclude that there would not be a significant economic impact on any 
participating employers that are not sponsors.
---------------------------------------------------------------------------

    \232\ See U.S. Census Bureau, ``Statistics of U.S. Businesses,'' 
https://www.census.gov/programs-surveys/susb/data.html (last updated 
May 10, 2022).
---------------------------------------------------------------------------

4. Compliance Requirements of the Proposed Rule
    The E.O. 12866 analysis above quantifies several types of labor 
costs that would be borne by registered apprenticeship program 
sponsors: (1) rule familiarization; (2) on-the-job training 
documentation; (3) wage analysis and career development; (4) data 
collection and reporting; (5) program registration; (6) program 
standards and adoption agreement; (7) end-point assessments; and (8) 
program reviews. Since some sponsors can also be participating 
employers, the Department adds costs of recordkeeping that are imposed 
on participating employers to all sponsors.
    As explained in the E.O. 12866 section above, the Department 
estimates the following first-year costs to sponsors; each sponsor 
would incur a subset of these nine costs:
    <bullet> rule familiarization: $412 per sponsor
    <bullet> on-the-job training documentation: $1,031 per sponsor with 
program with less than 2,000 hours on-the-job training
    <bullet> wage analysis and career development profile: $206 per 
sponsor submitting a new or revised occupation determination
    <bullet> data collection and reporting: $111 per sponsor
    <bullet> program registration: $103 per sponsor with a new program
    <bullet> program standards adoption agreement: $103 per sponsor 
with new non-collectively bargained program standards
    <bullet> end-point assessments: $103 per sponsor per apprentice
    <bullet> program reviews: $842 per noncompliant sponsor
    <bullet> recordkeeping: $138 per employer
    Additional costs that may be incurred but could not be quantified 
due to a lack of data include new requirements for off-the-job training 
and prohibition of non-disclosure and non-compete provisions. In 
addition, the proposed rule would result in transfer payments from 
participating employers to apprentices in the form of compensation, but 
the Department lacks data on the extent of entities that would be 
impacted as well as the magnitude of transfers as discussed in the 
nonquantifiable transfer payments section of the E.O. 12866 analysis.
    The costs associated with the increased requirements for registered 
apprenticeship present the possibility that some sponsors and employers 
may leave the registered apprenticeship system altogether. However, in 
other countries with quality labor standards, such as Germany, 
apprenticeship

[[Page 3250]]

participation remains high. In Germany, about 54.5 percent of graduates 
from general education \233\ enter the labor force through an 
apprenticeship training program.\234\ German apprenticeship programs 
include numerous costly requirements, including contractual agreements 
between apprentices and employers, national apprenticeship standards 
for each occupation, and examinations to ensure apprentices meet the 
standards of excellence at the end of their program.\235\ Despite these 
program requirements, apprenticeship participation in Germany has 
remained high. The Department does not expect the proposed rule to 
result in an exodus from registered apprenticeship as a result of 
increased requirements. Participation in apprenticeship programs is 
greater in Germany than in the United States, indicating that quality 
labor standards would unlikely decrease apprenticeship participation in 
the United States and could potentially make apprenticeship more 
attractive.\236\
---------------------------------------------------------------------------

    \233\ Graduating from general education in Germany is comparable 
to graduating from high school in the United States.
    \234\ Diana Elliott and Miriam Farnbauer, ``Bridging German and 
US Apprenticeship Models,'' Aug. 2021, https://www.urban.org/sites/default/files/publication/104677/bridging-german-and-us-apprenticeship-models.pdf.
    \235\ Ibid.
    \236\ Rates of participation, measured in number of apprentices 
per 1,000 workers, are found to be much higher in Germany than in 
the United States. See Maia Chankseliani et al., ``People and 
Policy: A comparative study of apprenticeship across eight national 
contexts,'' Oct. 2017, https://ora.ox.ac.uk/objects/uuid:56a3d0c9-3221-43d9-9da4-e1883e5a7a00.
---------------------------------------------------------------------------

    The E.O. 12866 analysis above quantifies several types of labor 
costs that would be borne by registered CTE apprenticeship program 
sponsors: (1) rule familiarization; (2) program registration 
application requirements; (3) selection of a diverse and inclusive 
cross-section of students; (4) sponsor oversight; (5) apprenticeship 
agreements; (6) program reviews; (7) request for reconsideration of 
program registration status; and (8) data and quality metrics.
    As explained in the E.O. 12866 section above, the Department 
estimates the following first-year costs to registered CTE 
apprenticeship program sponsors; each sponsor would incur a subset of 
these eight costs:
    <bullet> rule familiarization: $412 per sponsor
    <bullet> program registration application requirements: $1,031 per 
sponsor
    <bullet> selection of a diverse and inclusive cross-section of 
students: $74 per sponsor
    <bullet> sponsor oversight: $913 per sponsor
    <bullet> apprenticeship agreements: $17 per sponsor per apprentice
    <bullet> program reviews: $842 per noncompliant sponsor
    <bullet> request for reconsideration of program registration 
status: $619 per sponsor
    <bullet> data and quality metrics: $495 per sponsor
    Additional costs that may be incurred but could not be quantified 
due to a lack of data include new requirements for off-the-job training 
and prohibition of non-disclosure and non-compete provisions. In 
addition, the proposed rule would result in transfer payments from 
participating employers to apprentices in the form of compensation, but 
the Department lacks data on the extent of entities that would be 
impacted as well as the magnitude of transfers as discussed in the 
nonquantifiable transfer payments section of the E.O. 12866 analysis.
    To quantify the costs to small entities, the Department uses the 
same cost estimates for sponsors and participating employers described 
in the subject-by-subject analysis of the E.O. 12866 analysis for 
registered apprenticeship programs and registered CTE apprenticeship 
programs, respectively. Note that ``firm'' refers to ``sponsor'' in 
this IRFA. Sponsors are frequently employers, so the Department 
combined the costs for sponsors and employers to obtain an upper-bound 
estimate of the cost for ``firms.'' Hence, the cost estimates are the 
maximum amount that would be borne by a small entity that chooses to 
participate. The E.O. 12866 analysis above quantifies two types of 
labor costs that would be borne by participating employers in 
registered apprenticeship: (1) rule familiarization; and (2) 
recordkeeping. These two requirements combined would impose $343.69 
\237\ in costs on each participating employer. For participating 
employers in CTE, the Department estimates costs of $206.19 for rule 
familiarization. These costs are combined with the costs for sponsors 
to estimate the costs for firms.
---------------------------------------------------------------------------

    \237\ The cost of $343.69 on each participating employer is 
derived from the sum of costs per employer associated with rule 
familiarization ($206.19) and recordkeeping ($137.50). The cost of 
$206.19 comes from the multiplication of the time for existing 
entities to read and review the new rule by the Training and 
Development Manager loaded private wage rate by 0.5 to determine the 
cost per employer. The cost of $137.50 comes from the multiplication 
of the time required to record and maintain additional information 
by the Office and Administrative Support Occupation hourly wage 
rate.
---------------------------------------------------------------------------

    Exhibit 18 shows the estimated cost per registered apprenticeship 
program sponsor for each year of the analysis period. The first-year 
cost per sponsor is estimated at $3,420 at a discount rate of 7 
percent. The annualized cost per sponsor is estimated at $3,238 at a 
discount rate of 7 percent. These estimates are average costs, meaning 
that some registered apprenticeship program sponsors would have higher 
costs while other sponsors would have lower costs, regardless of firm 
size. The Department seeks public comment on these estimates with the 
goal of providing refined estimates in the final rule.

                                                            Exhibit 18--Estimated Cost to Registered Apprenticeship Program Sponsors
                                                                              [$ thousands unless otherwise noted]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Wage
                                                                 On-the-job   analysis      Data                     Program                                               Number of
                                                        Rule      training   and career  collection     Program     standards   End-point   Record-   Program    Total    registered    Cost per
                        Year                         familiari-   documen-    develop-       and     registration   adoption     assess-    keeping   reviews    cost     apprentice-   sponsors
                                                       zation      tation       ment      reporting                 agreement     ments                                  ship program     ($)
                                                                               profile                                                                                     sponsors
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1..................................................     $10,925      $6,400         $48      $2,944         $285         $218     $69,647    $5,573      $893   $96,933        26,492     $3,659
2..................................................       1,170           0          48       3,073          292          218      72,999     5,772       924    84,496        27,434      3,080
3..................................................       1,200           0          48       3,202          300          218      76,351     5,970       956    88,245        28,376      3,110
4..................................................       1,230           0          48       3,331          308          218      79,703     6,168       988    91,994        29,318      3,138
5..................................................       1,261           0          48       3,460          315          218      83,055     6,366     1,020    95,742        30,260      3,164
6..................................................       1,291           0          48       3,589          323          218      86,406     6,564     1,051    99,491        31,202      3,189
7..................................................       1,321           0          48       3,718          330          218      89,758     6,762     1,083   103,239        32,144      3,212
8..................................................       1,351           0          48       3,847          338          218      93,110     6,961     1,115   106,988        33,086      3,234
9..................................................       1,382           0          48       3,976          345          218      96,462     7,159     1,146   110,736        34,028      3,254

[[Page 3251]]

 
10.................................................       1,412           0          48       4,105          353          218      99,814     7,357     1,178   114,485        34,970      3,274
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
First-year cost ($), 7% discount rate................................................................................................................................................      3,420
Annualized cost ($), 7% discount rate, 10 years......................................................................................................................................      3,238
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Exhibit 19 shows the estimated cost per registered CTE 
apprenticeship program sponsor for each year of the analysis period. 
The first-year cost per sponsor is estimated at $3,476 at a discount 
rate of 7 percent. The annualized cost per sponsor is estimated at 
$2,398 at a discount rate of 7 percent. These estimates are average 
costs, meaning that some registered CTE apprenticeship program sponsors 
would have higher costs while other sponsors would have lower costs, 
regardless of entity size. The Department seeks public comment on these 
estimates with the goal of providing refined estimates in the final 
rule.

                                                          Exhibit 19--Estimated Cost to Registered CTE Apprenticeship Program Sponsors
                                                                              [$ thousands unless otherwise noted]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     Selection
                                                                                     of diverse                                        Request for                         Number of
                                                           Rule         Program         and                  Apprentice-             reconsideration   Data and           registered    Cost per
                         Year                           familiari-   registration    inclusive     Sponsor       ship      Program      of program      quality   Total       CTE       sponsors
                                                          zation      application      cross-     oversight   agreements   reviews     registration     metrics   cost    apprentice-     ($)
                                                                     requirements    section of                                           status                         ship program
                                                                                      students                                                                             sponsors
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1....................................................          $57            $141          $10        $125          $55        $5                $21       $68    $482           137     $3,516
2....................................................          170             424           40         501          166        18                 64       271   1,655           549      3,016
3....................................................          170             424           71         877          221        32                 64       475   2,333           960      2,430
4....................................................          170             424          101       1,252          332        46                 64       679   3,067         1,372      2,236
5....................................................          170             424          131       1,628          387        60                 64       882   3,746         1,783      2,101
6....................................................          170             424          161       2,004          497        74                 64     1,086   4,480         2,195      2,041
7....................................................          170             424          192       2,380          553        88                 64     1,289   5,159         2,606      1,979
8....................................................          170             424          222       2,755          663       102                 64     1,493   5,892         3,018      1,953
9....................................................          170             424          252       3,131          718       116                 64     1,696   6,571         3,429      1,916
10...................................................          170             424          282       3,507          829       129                 64     1,900   7,305         3,841      1,902
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
First-year cost ($), 7% discount rate................................................................................................................................................      3,476
Annualized cost ($), 7% discount rate, 10 years......................................................................................................................................      2,398
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5. Estimated Impact of the Proposed Rule on Small Entities
    Based on the estimated costs to participating employers, presented 
above, to have a significant economic impact on a participating 
employer in registered apprenticeship, the participating employer would 
need revenue less than $11,400.\238\ For participating employers in 
registered CTE apprenticeship, the participating employer would need 
revenue less than $6,800.\239\ Based on the Department's analysis of 
participating employers that is presented below, there are no 
industries that have entities in the smallest size categories where 
average revenue is below $34,000.\240\ The majority of costs on 
entities that could be small are on sponsors and are described below.
---------------------------------------------------------------------------

    \238\ $11,400 is the value at which 3% of revenue impacted would 
be larger than 3% (= $343.69/0.03).
    \239\ $6,800 is the value at which 3% of revenue impacted would 
be larger than 3% (= $206.19/0.03).
    \240\ The Management of Companies and Enterprises Industry, for 
enterprises with receipts below $100,000, has average receipts per 
firm of $34,371 (see Exhibit 32), which is the smallest of the 
industries analyzed.
---------------------------------------------------------------------------

a. Registered Apprenticeship Program Sponsors
    The Department used the following steps to estimate the cost of the 
proposed rule per registered apprenticeship program sponsor as a 
percentage of annual receipts. First, the Department used the Small 
Business Administration's Table of Small Business Size Standards to 
determine the size thresholds for small entities within each major 
industry.\241\ Next the Department obtained data on the number of 
firms, number of employees, and annual revenue by industry and firm 
size category from the Census Bureau's Statistics of U.S. 
Businesses.\242\ The Department used the Gross Domestic Product 
deflator to convert revenue data from 2017 dollars to 2022 
dollars.\243\ Then, the Department divided the estimated first-year 
cost and the annualized cost per registered apprenticeship program 
sponsor (discounted at a 7-percent rate) by the average annual receipts 
per firm to determine whether the proposed rule would have a 
significant economic impact on sponsors in each size category.\244\ 
Finally, the Department

[[Page 3252]]

divided the number of firms in each size category by the total number 
of small firms in the industry to determine whether the proposed rule 
would have a significant economic impact on a substantial number of 
small entities.\245\
---------------------------------------------------------------------------

    \241\ U.S. Small Business Administration, ``Table of Small 
Business Size Standards,'' Mar. 17, 2023, https://www.sba.gov/document/support-table-size-standards. The size standards, which are 
expressed in either average annual receipts or number of employees, 
indicate the maximum allowed for a business in each subsector to be 
considered small.
    \242\ U.S. Census Bureau, ``Statistics of U.S. Businesses,'' 
https://www.census.gov/programs-surveys/susb/data.html (last updated 
May 10, 2022).
    \243\ U.S. Bureau of Economic Analysis, ``Table 1.1.9. Implicit 
Price Deflators for Gross Domestic Product,'' https://apps.bea.gov/iTable/?reqid=19&step=2&isuri=1&categories=survey (last visited May 
30, 2023).
    \244\ For purposes of this analysis, the Department used a 3-
percent threshold for ``significant economic impact.'' The 
Department has used a 3-percent threshold in prior rulemakings. See, 
e.g., 79 FR 60633 (Oct. 7, 2014) (establishing a minimum wage for 
contractors).
    \245\ For purposes of this analysis, the Department used a 15-
percent threshold for ``substantial number of small entities.'' The 
Department has used a 15-percent threshold in prior rulemakings. 
Ibid.
---------------------------------------------------------------------------

    The results for registered apprenticeship are presented in the 
following 19 tables, one for each major industry sector. The tables are 
in numeric order by their North American Industry Classification System 
(NAICS) code--from NAICS 11 (Agriculture, Forestry, Fishing and 
Hunting) to NAICS 81 (Other Services). Currently, apprentices are 
concentrated in the construction industry (33 percent), public 
administration industry (22 percent), and educational services industry 
(12 percent),\246\ yet the Department has included tables for all 19 
major sectors because the Department anticipates that this proposed 
rule would facilitate the expansion of registered apprenticeship. The 
variety of industries and occupations that would benefit from 
registered apprenticeship keeps growing as the Department identifies 
strategies and opportunities to expand the system. Since this proposed 
rule is expected to affect small entities across all sectors of the 
economy, our analysis shows how entities of different sizes within all 
19 major industries could be impacted. In short, the first-year cost or 
annualized cost per registered apprenticeship program sponsor would 
have a significant economic impact on a substantial number of small 
entities in 12 out of 19 industries. It should be noted, however, that 
participation in registered apprenticeship programs is voluntary; 
therefore, only small entities that choose to continue to participate 
would experience an economic impact--significant or otherwise.
---------------------------------------------------------------------------

    \246\ OA, ``Apprentice Population by State Analysis (11-09-
2023),'' https://public.tableau.com/app/profile/dol.apprenticeship/viz/ApprenticePopulationbyStateAnalysis11-09-2023_16995503558600/ApprDemoApprLocation (last visited Nov. 20, 2023).
---------------------------------------------------------------------------

    As shown in Exhibit 20, the first-year and annualized costs for 
registered apprenticeship program sponsors in the agriculture, 
forestry, fishing, and hunting industry are estimated to have a 
significant economic impact (3 percent or more) on small entities with 
receipts under $100,000, and those firms constitute a substantial 
number of small entities in the agriculture, forestry, fishing, and 
hunting industry (18.0 percent). The first-year costs are estimated to 
be 5.7 percent of the average receipts per firm and the annualized 
costs are estimated to be 5.4 percent of the average receipts per firm 
for firms with revenue below $100,000.

                                            Exhibit 20--Agriculture, Forestry, Fishing, and Hunting Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $2.25 million-$34.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number of                                                             First- year
                                            firms as                                    Average     First- year    cost per    Annualized    Annualized
                                 Number    percent of  Total number  Annual receipts    receipts     cost per      firm as      cost per      cost per
                                of firms  small firms  of employees  ($ million) \4\    per firm   firm with 7%   percent of  firm with 7%     firm as
                                   \1\    in industry       \3\                         ($) \5\     discounting    receipts    discounting   percent of
                                              \2\                                                                    \6\                    receipts \7\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts          4,042         18.0         4,495             $242      $59,803        $3,420          5.7        $3,238           5.4
 below $100,000...............
Enterprises with receipts of       8,582         38.3        16,607            2,592      302,003         3,420          1.1         3,238           1.1
 $100,000 to $499,999.........
Enterprises with receipts of       3,703         16.5        14,450            3,127      844,419         3,420          0.4         3,238           0.4
 500,000 to 999,999...........
Enterprises with receipts of       3,686         16.5        28,333            6,781    1,839,700         3,420          0.2         3,283           0.2
 1,000,000 to 2,499,999.......
Enterprises with receipts of       1,370          6.1        21,333            5,634    4,112,289         3,420          0.1         3,238           0.1
 2,500,000 to 4,999,999.......
Enterprises with receipts of         455          2.0        11,328            3,153    6,929,380         3,420          0.0         3,238           0.0
 5,000,000 to 7,499,999.......
Enterprises with receipts of         208          0.9         7,019            2,101   10,101,550         3,420          0.0         3,238           0.0
 7,500,000 to 9,999,999.......
Enterprises with receipts of         193          0.9         9,143            2,545   13,188,869         3,420          0.0         3,238           0.0
 10,000,000 to 14,999,999.....
Enterprises with receipts of          79          0.4         4,324            1,520   19,242,856         3,420          0.0         3,238           0.0
 15,000,000 to 19,999,999.....
Enterprises with receipts of          60          0.3         4,297            1,357   22,619,811         3,420          0.0         3,238           0.0
 20,000,000 to 24,999,999.....
Enterprises with receipts of          28          0.1         3,068              710   25,343,408         3,420          0.0         3,238           0.0
 25,000,000 to 29,999,999.....
Enterprises with receipts of          17          0.1         1,623              475   27,948,978         3,420          0.0         3,238           0.0
 30,000,000 to 34,999,999.....
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Source: U.S. Census Bureau, Statistics of U.S. Businesses. Note that ``firm'' refers to ``sponsor'' in this analysis.
\2\ Number of firms / Small firms in industry.
\3\ Source: U.S. Census Bureau, Statistics of U.S. Businesses.
\4\ Source: U.S. Census Bureau, Statistics of U.S. Businesses.
\5\ Annual receipts / Number of firms.
\6\ First-year cost per firm with 7% discounting / Average receipts per firm.
\7\ Annualized cost per firm with 7% discounting / Average receipts per firm.


[[Page 3253]]

    As shown in Exhibit 21, the first-year and annualized costs for 
sponsors in the mining industry are not expected to have a significant 
economic impact (3 percent or more) on small entities of any size.

                                                 Exhibit 21--Mining, Quarrying, and Oil and Gas Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Small Business Size Standard: 500-1,500 employees
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with 0-4 employees....    10,808         57.2      16,788        $7,142      $660,839        $3,420           0.5        $3,238          0.5
Enterprises with 5-9 employees....     2,909         15.4      19,066         6,524     2,242,749         3,420           0.2         3,238          0.1
Enterprises with 10-19 employees..     2,091         11.1      28,171        10,099     4,829,914         3,420           0.1         3,238          0.1
Enterprises with 20-99 employees..     2,276         12.0      86,829        40,628    17,850,734         3,420           0.0         3,238          0.0
Enterprises with 100-499 employees       636          3.4      93,513        62,788    98,723,345         3,420           0.0         3,238          0.0
Enterprises with 500-749 employees        80          0.4      26,343        28,174   352,168,820         3,420           0.0         3,238          0.0
Enterprises with 750-999 employees        46          0.2      19,861        23,285   506,201,362         3,420           0.0         3,238          0.0
Enterprises with 1,000-1,499              46          0.2      28,800        25,639   557,359,001         3,420           0.0         3,238          0.0
 employees........................
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 22, the first-year and annualized costs for 
sponsors in the utilities industry are not expected to have a 
significant economic impact (3 percent or more) on small entities of 
any size.

                                                             Exhibit 22--Utilities Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Small Business Size Standard: 250-1,500 employees
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with 0-4 employees....     3,028         52.1       5,752        $3,386    $1,118,256        $3,420           0.3        $3,238          0.3
Enterprises with 5-9 employees....       983         16.9       6,300         1,771     1,802,011         3,420           0.2         3,238          0.2
Enterprises with 10-19 employees..       524          9.0       7,065         4,836     9,229,631         3,420           0.0         3,238          0.0
Enterprises with 20-99 employees..       892         15.3      40,089        40,076    44,927,999         3,420           0.0         3,238          0.0
Enterprises with 100-499 employees       325          5.6      52,541        71,683   220,563,226         3,420           0.0         3,238          0.0
Enterprises with 500-749 employees        45          0.8      20,302        34,430   765,120,600         3,420           0.0         3,238          0.0
Enterprises with 750-999 employees        16          0.3       4,734         5,385   336,536,358         3,420           0.0         3,238          0.0
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 23, the first-year and annualized costs for 
sponsors in the construction industry are estimated to have a 
significant economic impact (3 percent or more) on small entities with 
receipts under $100,000, and those firms constitute a substantial 
number of small entities in the construction industry (24.1 percent). 
The first-year costs are estimated to be 5.6 percent of the average 
receipts per firm and the annualized costs are estimated to be 5.3 
percent of the average receipts per firm for firms with revenue below 
$100,000.

[[Page 3254]]



                                                            Exhibit 23--Construction Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $19.0 million-$45.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below      167,522         24.1     156,090       $10,303       $61,501        $3,420           5.6        $3,238          5.3
 $100,000.........................
Enterprises with receipts of         247,074         35.5     544,141        70,010       283,356         3,420           1.2         3,238          1.1
 $100,000 to $499,999.............
Enterprises with receipts of          89,351         12.9     444,318        75,937       849,870         3,420           0.4         3,238          0.4
 $500,000 to $999,999.............
Enterprises with receipts of          95,739         13.8     828,261       178,934     1,868,977         3,420           0.2         3,238          0.2
 $1,000,000 to $2,499,999.........
Enterprises with receipts of          45,814          6.6     707,745       189,624     4,138,994         3,420           0.1         3,238          0.1
 $2,500,000 to $4,999,999.........
Enterprises with receipts of          17,860          2.6     416,512       127,936     7,163,277         3,420           0.0         3,238          0.0
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           9,233          1.3     283,971        93,588    10,136,274         3,420           0.0         3,238          0.0
 $7,500,000 to $9,999,999.........
Enterprises with receipts of           9,925          1.4     401,418       141,445    14,251,410         3,420           0.0         3,238          0.0
 $10,000,000 to $14,999,999.......
Enterprises with receipts of           5,029          0.7     270,176       101,235    20,130,283         3,420           0.0         3,238          0.0
 $15,000,000 to $19,999,999.......
Enterprises with receipts of           3,089          0.4     200,568        79,474    25,728,192         3,420           0.0         3,238          0.0
 $20,000,000 to $24,999,999.......
Enterprises with receipts of           2,011          0.3     150,472        63,084    31,369,492         3,420           0.0         3,238          0.0
 $25,000,000 to $29,999,999.......
Enterprises with receipts of           1,396          0.2     119,403        51,560    36,934,449         3,420           0.0         3,238          0.0
 $30,000,000 to $34,999,999.......
Enterprises with receipts of           1,056          0.2      99,968        44,799    42,423,297         3,420           0.0         3,238          0.0
 $35,000,000 to $39,999,999.......
Enterprises with receipts of           1,466          0.2     166,727        74,924    51,107,775         3,420           0.0         3,238          0.0
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 24, the first-year and annualized costs for 
sponsors in the manufacturing industry are not expected to have a 
significant economic impact (3 percent or more) on small entities of 
any size.

                                                           Exhibit 24--Manufacturing Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Small Business Size Standard: 500-1,500 employees
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with 0-4 employees....   102,242         41.5     188,002       $49,168      $480,898        $3,420           0.7        $3,238          0.7
Enterprises with 5-9 employees....    45,821         18.6     306,025        64,082     1,398,532         3,420           0.2         3,238          0.2
Enterprises with 10-19 employees..    37,549         15.2     511,380       115,096     3,065,227         3,420           0.1         3,238          0.1
Enterprises with 20-99 employees..    46,089         18.7   1,872,005       513,594    11,143,518         3,420           0.0         3,238          0.0
Enterprises with 100-499 employees    12,397          5.0   2,162,360       807,852    65,165,144         3,420           0.0         3,238          0.0
Enterprises with 500-749 employees     1,127          0.5     526,397       251,406   223,075,773         3,420           0.0         3,238          0.0
Enterprises with 750-999 employees       608          0.2     370,263       171,676   282,361,226         3,420           0.0         3,238          0.0
Enterprises with 1,000-1,499             578          0.2     487,897       272,079   470,724,074         3,420           0.0         3,238          0.0
 employees........................
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 25, the first-year and annualized costs for 
sponsors in the wholesale trade industry are not expected to have a 
significant economic impact (3 percent or more) on small entities of 
any size.

[[Page 3255]]



                                                          Exhibit 25--Wholesale Trade Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Small Business Size Standard: 100-250 employees
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with 0-4 employees....   170,879         57.9     282,713      $338,168    $1,978,989        $3,420           0.2        $3,238          0.2
Enterprises with 5-9 employees....    48,559         16.5     320,741       317,555     6,539,573         3,420           0.1         3,238          0.0
Enterprises with 10-19 employees..    34,020         11.5     453,838       422,050    12,405,945         3,420           0.0         3,238          0.0
Enterprises with 20-99 employees..    33,409         11.3   1,246,435     1,202,036    35,979,399         3,420           0.0         3,238          0.0
Enterprises with 100-499 employees     8,042          2.7   1,109,430     1,214,818   151,059,248         3,420           0.0         3,238          0.0
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 26, the first-year and annualized costs for 
sponsors in the retail trade industry are estimated to have a 
significant economic impact (3 percent or more) on small entities with 
receipts under $100,000, but those firms do not constitute a 
substantial number of small entities in the retail trade industry (10.9 
percent). The first-year costs are estimated to be 5.6 percent of the 
average receipts per firm and the annualized costs are estimated to be 
5.3 percent of the average receipts per firm for firms with revenue 
below $100,000.

                                                            Exhibit 26--Retail Trade Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Small Business Size Standard: 500-1,500 employees
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below       69,679         10.9      83,278        $4,273       $61,325        $3,420           5.6        $3,238          5.3
 $100,000.........................
Enterprises with receipts of         212,200         33.2     532,330        68,606       323,308         3,420           1.1         3,238          1.0
 $100,000 to $499,999.............
Enterprises with receipts of         118,943         18.6     528,280       100,873       848,081         3,420           0.4         3,238          0.4
 500,000 to 999,999...............
Enterprises with receipts of         126,105         19.8     914,575       235,819     1,870,018         3,420           0.2         3,238          0.2
 1,000,000 to 2,499,999...........
Enterprises with receipts of          57,394          9.0     700,081       234,541     4,086,499         3,420           0.1         3,238          0.1
 2,500,000 to 4,999,999...........
Enterprises with receipts of          19,586          3.1     372,573       137,951     7,043,341         3,420           0.0         3,238          0.0
 5,000,000 to 7,499,999...........
Enterprises with receipts of           9,435          1.5     244,343        93,510     9,910,941         3,420           0.0         3,238          0.0
 7,500,000 to 9,999,999...........
Enterprises with receipts of           9,308          1.5     317,070       128,366    13,790,901         3,420           0.0         3,238          0.0
 10,000,000 to 14,999,999.........
Enterprises with receipts of           4,846          0.8     215,896        92,769    19,143,425         3,420           0.0         3,238          0.0
 15,000,000 to 19,999,999.........
Enterprises with receipts of           3,166          0.5     167,389        78,331    24,741,263         3,420           0.0         3,238          0.0
 20,000,000 to 24,999,999.........
Enterprises with receipts of           2,307          0.4     139,998        69,819    30,263,799         3,420           0.0         3,238          0.0
 25,000,000 to 29,999,999.........
Enterprises with receipts of           1,785          0.3     118,314        62,954    35,268,411         3,420           0.0         3,238          0.0
 30,000,000 to 34,999,999.........
Enterprises with receipts of           1,510          0.2     110,947        61,983    41,048,054         3,420           0.0         3,238          0.0
 35,000,000 to 39,999,999.........
Enterprises with receipts of           2,120          0.3     179,497       102,501    48,349,525         3,420           0.0         3,238          0.0
 40,000,000 to 49,999,999.........
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 27, the first-year and annualized costs for 
sponsors in the transportation and warehousing industry are estimated 
to have a significant economic impact (3 percent or more) on small 
entities with receipts under $100,000, and those firms constitute a 
substantial number of small entities in the transportation and 
warehousing industry (18.0 percent). The first-year costs are estimated 
to be 5.8 percent of the average receipts per firm and the annualized 
costs are estimated to be 5.5 percent of the average receipts per firm 
for firms with revenue below $100,000.

[[Page 3256]]



                                                   Exhibit 27--Transportation and Warehousing Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $9.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below       32,704         18.0      34,795        $1,940       $59,315        $3,420           5.8        $3,238          5.5
 $100,000.........................
Enterprises with receipts of          72,673         40.1     152,029        20,835       286,688         3,420           1.2         3,238          1.1
 $100,000 to $499,999.............
Enterprises with receipts of          26,780         14.8     148,113        22,433       837,693         3,420           0.4         3,238          0.4
 $500,000 to $999,999.............
Enterprises with receipts of          25,365         14.0     269,241        46,486     1,832,678         3,420           0.2         3,238          0.2
 $1,000,000 to $2,499,999.........
Enterprises with receipts of          11,101          6.1     223,441        44,874     4,042,296         3,420           0.1         3,238          0.1
 $2,500,000 to $4,999,999.........
Enterprises with receipts of           4,406          2.4     137,503        30,296     6,876,163         3,420           0.0         3,238          0.0
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           2,207          1.2      91,077        21,057     9,540,834         3,420           0.0         3,238          0.0
 $7,500,000 to $9,999,999.........
Enterprises with receipts of           2,322          1.3     129,477        29,881    12,868,860         3,420           0.0         3,238          0.0
 $10,000,000 to $14,999,999.......
Enterprises with receipts of           1,288          0.7      97,798        21,948    17,040,160         3,420           0.0         3,238          0.0
 $15,000,000 to $19,999,999.......
Enterprises with receipts of             772          0.4      78,172        16,800    21,761,486         3,420           0.0         3,238          0.0
 $20,000,000 to $24,999,999.......
Enterprises with receipts of             538          0.3      58,986        13,069    24,290,896         3,420           0.0         3,238          0.0
 $25,000,000 to $29,999,999.......
Enterprises with receipts of             440          0.2      55,986        12,195    27,715,884         3,420           0.0         3,238          0.0
 $30,000,000 to $34,999,999.......
Enterprises with receipts of             333          0.2      37,644         9,427    28,309,025         3,420           0.0         3,238          0.0
 $35,000,000 to $39,999,999.......
Enterprises with receipts of             416          0.2      62,522        14,692    35,317,590         3,420           0.0         3,238          0.0
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 28, the first-year and annualized costs for 
sponsors in the information industry are estimated to have a 
significant economic impact (3 percent or more) on small entities with 
receipts under $100,000, and those firms constitute a substantial 
number of small entities in the information industry (20.0 percent). 
The first-year costs are estimated to be 5.9 percent of the average 
receipts per firm and the annualized costs are estimated to be 5.6 
percent of the average receipts per firm for firms with revenue below 
$100,000.

                                                            Exhibit 28--Information Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $11.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below       15,481         20.0      16,482           892       $57,602        $3,420           5.9        $3,238          5.6
 $100,000.........................
Enterprises with receipts of          28,404         36.7      68,508         8,391       295,425         3,420           1.2         3,238          1.1
 $100,000 to $499,999.............
Enterprises with receipts of          10,545         13.6      57,480         8,811       835,598         3,420           0.4         3,238          0.4
 $500,000 to $999,999.............
Enterprises with receipts of          10,590         13.7     109,948        19,795     1,869,207         3,420           0.2         3,238          0.2
 $1,000,000 to $2,499,999.........
Enterprises with receipts of           5,196          6.7      99,937        21,171     4,074,388         3,420           0.1         3,238          0.1
 $2,500,000 to $4,999,999.........
Enterprises with receipts of           2,180          2.8      65,492        15,155     6,952,024         3,420           0.0         3,238          0.0
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           1,173          1.5      48,149        11,398     9,716,735         3,420           0.0         3,238          0.0
 $7,500,000 to $9,999,999.........
Enterprises with receipts of           1,325          1.7      73,550        18,201    13,736,535         3,420           0.0         3,238          0.0
 $10,000,000 to $14,999,999.......
Enterprises with receipts of             783          1.0      59,471        14,948    19,090,309         3,420           0.0         3,238          0.0
 $15,000,000 to $19,999,999.......
Enterprises with receipts of             497          0.6      42,068        11,733    23,607,138         3,420           0.0         3,238          0.0
 $20,000,000 to $24,999,999.......
Enterprises with receipts of             372          0.5      39,211        10,737    28,863,621         3,420           0.0         3,238          0.0
 $25,000,000 to $29,999,999.......
Enterprises with receipts of             271          0.4      32,396         9,252    34,138,424         3,420           0.0         3,238          0.0
 $30,000,000 to $34,999,999.......
Enterprises with receipts of             221          0.3      31,989         8,464    38,297,393         3,420           0.0         3,238          0.0
 $35,000,000 to $39,999,999.......

[[Page 3257]]

 
Enterprises with receipts of             317          0.4      43,836        14,133    44,582,414         3,420           0.0         3,238          0.0
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 29, the first-year and annualized costs for 
sponsors in the finance and insurance industry are estimated to have a 
significant economic impact (3 percent or more) on small entities with 
receipts under $100,000, and those firms constitute a substantial 
number of small entities in the finance and insurance industry (18.7 
percent). The first-year costs are estimated to be 5.8 percent of the 
average receipts per firm and the annualized costs are estimated to be 
5.5 percent of the average receipts per firm for firms with revenue 
below $100,000.

                                                       Exhibit 29--Finance and Insurance Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $15.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below       43,946         18.7      48,037        $2,597       $59,098        $3,420           5.8        $3,238          5.5
 $100,000.........................
Enterprises with receipts of         109,042         46.5     244,100        33,314       305,519         3,420           1.1         3,238          1.1
 $100,000 to $499,999.............
Enterprises with receipts of          35,651         15.2     158,385        29,334       822,802         3,420           0.4         3,238          0.4
 $500,000 to $999,999.............
Enterprises with receipts of          23,382         10.0     184,397        42,220     1,805,650         3,420           0.2         3,238          0.2
 $1,000,000 to $2,499,999.........
Enterprises with receipts of           9,135          3.9     146,376        37,457     4,100,430         3,420           0.1         3,238          0.1
 $2,500,000 to $4,999,999.........
Enterprises with receipts of           3,926          1.7     101,333        27,564     7,020,937         3,420           0.0         3,238          0.0
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           2,158          0.9      76,995        21,387     9,910,531         3,420           0.0         3,238          0.0
 $7,500,000 to $9,999,999.........
Enterprises with receipts of           2,545          1.1     122,949        35,425    13,919,423         3,420           0.0         3,238          0.0
 $10,000,000 to $14,999,999.......
Enterprises with receipts of           1,494          0.6      98,142        29,155    19,514,918         3,420           0.0         3,238          0.0
 $15,000,000 to $19,999,999.......
Enterprises with receipts of             977          0.4      75,763        24,489    25,065,036         3,420           0.0         3,238          0.0
 $20,000,000 to $24,999,999.......
Enterprises with receipts of             642          0.3      61,866        19,483    30,347,565         3,420           0.0         3,238          0.0
 $25,000,000 to $29,999,999.......
Enterprises with receipts of             537          0.2      56,634        19,541    36,389,004         3,420           0.0         3,238          0.0
 $30,000,000 to $34,999,999.......
Enterprises with receipts of             438          0.2      50,652        17,860    40,776,274         3,420           0.0         3,238          0.0
 $35,000,000 to $39,999,999.......
Enterprises with receipts of             567          0.2      79,713        27,717    48,883,444         3,420           0.0         3,238          0.0
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 30, the first-year and annualized costs for 
sponsors in the real estate and rental and leasing industry are 
estimated to have a significant economic impact (3 percent or more) on 
small entities with receipts under $100,000, and those firms constitute 
a substantial number of small entities in the real estate and rental 
and leasing industry (22.3 percent). The first-year costs are estimated 
to be 5.5 percent of the average receipts per firm and the annualized 
costs are estimated to be 5.3 percent of the average receipts per firm 
for firms with revenue below $100,000.

                                                 Exhibit 30--Real Estate and Rental and Leasing Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: &9.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below       68,419         22.3      66,469        $4,217       $61,630        $3,420           5.5        $3,238          5.3
 $100,000.........................

[[Page 3258]]

 
Enterprises with receipts of         136,155         44.3     248,363        39,835       292,575         3,420           1.2         3,238          1.1
 $100,000 to $499,999.............
Enterprises with receipts of          45,372         14.8     171,862        37,654       829,887         3,420           0.4         3,238          0.4
 $500,000 to $999,999.............
Enterprises with receipts of          34,152         11.1     245,779        61,652     1,805,217         3,420           0.2         3,238          0.2
 $1,000,000 to $2,499,999.........
Enterprises with receipts of          12,210          4.0     175,672        48,951     4,009,113         3,420           0.1         3,238          0.1
 $2,500,000 to $4,999,999.........
Enterprises with receipts of           4,020          1.3      90,148        27,714     6,894,004         3,420           0.0         3,238          0.0
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           2,025          0.7      63,474        19,313     9,537,201         3,420           0.0         3,238          0.0
 $7,500,000 to $9,999,999.........
Enterprises with receipts of           1,869          0.6      79,396        24,481    13,098,206         3,420           0.0         3,238          0.0
 $10,000,000 to $14,999,999.......
Enterprises with receipts of           1,003          0.3      52,698        17,642    17,589,281         3,420           0.0         3,238          0.0
 $15,000,000 to $19,999,999.......
Enterprises with receipts of             617          0.2      42,433        13,469    21,829,242         3,420           0.0         3,238          0.0
 $20,000,000 to $24,999,999.......
Enterprises with receipts of             446          0.1      33,126        11,579    25,961,260         3,420           0.0         3,238          0.0
 $25,000,000 to $29,999,999.......
Enterprises with receipts of             318          0.1      29,216         9,810    30,849,146         3,420           0.0         3,238          0.0
 $30,000,000 to $34,999,999.......
Enterprises with receipts of             224          0.1      20,018         7,096    31,680,293         3,420           0.0         3,238          0.0
 $35,000,000 to $39,999,999.......
Enterprises with receipts of             327          0.1      37,186        12,327    37,696,094         3,420           0.0         3,238          0.0
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 31, the first-year and annualized costs for 
sponsors in the professional, scientific and technical services 
industry are estimated to have a significant economic impact (3 percent 
or more) on small entities with receipts under $100,000, and those 
firms constitute a substantial number of small entities in the 
professional, scientific and technical services industry (23.4 
percent). The first-year costs are estimated to be 5.9 percent of the 
average receipts per firm and the annualized costs are estimated to be 
5.5 percent of the average receipts per firm for firms with revenue 
below $100,000.

                                          Exhibit 31--Professional, Scientific and Technical Services Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Small Business Size Standard: $90 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below      188,173         23.4     186,477       $10,990       $58,404        $3,420           5.9        $3,238          5.5
 $100,000.........................
Enterprises with receipts of         351,252         43.6     699,310       101,497       288,958         3,420           1.2         3,238          1.1
 $100,000 to $499,999.............
Enterprises with receipts of         109,203         13.6     522,342        91,230       835,416         3,420           0.4         3,238          0.4
 $500,000 to $999,999.............
Enterprises with receipts of          89,925         11.2     852,984       164,634     1,830,797         3,420           0.2         3,238          0.2
 $1,000,000 to $2,499,999.........
Enterprises with receipts of          33,619          4.2     622,519       136,728     4,066,997         3,420           0.1         3,238          0.1
 $2,500,000 to $4,999,999.........
Enterprises with receipts of          11,965          1.5     366,420        84,405     7,054,313         3,420           0.0         3,238          0.0
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           6,097          0.8     256,793        60,418     9,909,398         3,420           0.0         3,238          0.0
 $7,500,000 to $9,999,999.........
Enterprises with receipts of           6,150          0.8     348,201        84,884    13,802,321         3,420           0.0         3,238          0.0
 $10,000,000 to $14,999,999.......
Enterprises with receipts of           3,200          0.4     251,912        60,785    18,995,362         3,420           0.0         3,238          0.0
 $15,000,000 to $19,999,999.......
Enterprises with receipts of           1,894          0.2     177,413        45,631    24,092,221         3,420           0.0         3,238          0.0
 $20,000,000 to $24,999,999.......
Enterprises with receipts of           1,339          0.2     151,640        38,655    28,868,541         3,420           0.0         3,238          0.0
 $25,000,000 to $29,999,999.......
Enterprises with receipts of             930          0.1     123,198        31,108    33,449,165         3,420           0.0         3,238          0.0
 $30,000,000 to $34,999,999.......
Enterprises with receipts of             707          0.1     100,554        26,979    38,160,528         3,420           0.0         3,238          0.0
 $35,000,000 to $39,999,999.......

[[Page 3259]]

 
Enterprises with receipts of             964          0.1     161,031        42,285    43,864,307         3,420           0.0         3,238          0.0
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 32, the first-year and annualized costs for 
sponsors in the management of companies and enterprises industry are 
estimated to have a significant economic impact (3 percent or more) on 
small entities with receipts under $100,000, but those firms do not 
constitute a substantial number of small entities in the management of 
companies and enterprises industry (6.2 percent). The first-year costs 
are estimated to be 9.9 percent of the average receipts per firm and 
the annualized costs are estimated to be 9.4 percent of the average 
receipts per firm for firms with revenue below $100,000.

                                              Exhibit 32--Management of Companies and Enterprises Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $38.5 million-$45.5 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below        1,043          6.2      11,909           $36       $34,371        $3,420           9.9        $3,238          9.4
 $100,000.........................
Enterprises with receipts of           1,228          7.3       3,920           303       246,410         3,420           1.4         3,238          1.3
 $100,000 to $499,999.............
Enterprises with receipts of             760          4.5       4,442           361       475,175         3,420           0.7         3,238          0.7
 $500,000 to $999,999.............
Enterprises with receipts of           1,684         10.0      16,525         1,052       624,520         3,420           0.5         3,238          0.5
 $1,000,000 to $2,499,999.........
Enterprises with receipts of           1,985         11.8      28,340         1,554       782,756         3,420           0.4         3,238          0.4
 $2,500,000 to $4,999,999.........
Enterprises with receipts of           1,518          9.0      25,723         1,715     1,129,906         3,420           0.3         3,238          0.3
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           1,183          7.0      26,067         1,642     1,388,403         3,420           0.2         3,238          0.2
 $7,500,000 to $9,999,999.........
Enterprises with receipts of           1,912         11.3      44,624         3,345     1,749,307         3,420           0.2         3,238          0.2
 $10,000,000 to $14,999,999.......
Enterprises with receipts of           1,380          8.2      40,956         3,206     2,323,136         3,420           0.1         3,238          0.1
 $15,000,000 to $19,999,999.......
Enterprises with receipts of           1,047          6.2      34,086         2,481     2,369,790         3,420           0.1         3,238          0.1
 $20,000,000 to $24,999,999.......
Enterprises with receipts of             859          5.1      34,479         2,911     3,388,883         3,420           0.1         3,238          0.1
 $25,000,000 to $29,999,999.......
Enterprises with receipts of             732          4.3      25,244         2,153     2,940,632         3,420           0.1         3,238          0.1
 $30,000,000 to $34,999,999.......
Enterprises with receipts of             651          3.9      26,284         2,258     3,468,771         3,420           0.1         3,238          0.1
 $35,000,000 to $39,999,999.......
Enterprises with receipts of             905          5.4      42,674         3,667     4,051,611         3,420           0.1         3,238          0.1
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 33, the first-year and annualized costs for 
sponsors in the educational services industry are estimated to have a 
significant economic impact (3 percent or more) on small entities with 
receipts under $100,000, and those firms constitute a substantial 
number of small entities in the educational services industry (24.3 
percent). The first-year costs are estimated to be 6.1 percent of the 
average receipts per firm and the annualized costs are estimated to be 
5.7 percent of the average receipts per firm for firms with revenue 
below $100,000.

                                                        Exhibit 33--Educational Services Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $9.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below       22,439         24.3      42,944        $1,267       $56,457        $3,420           6.1        $3,238          5.7
 $100,000.........................

[[Page 3260]]

 
Enterprises with receipts of          37,156         40.3     197,950        10,926       294,070         3,420           1.2         3,238          1.1
 $100,000 to $499,999.............
Enterprises with receipts of          11,425         12.4     139,745         9,464       828,359         3,420           0.4         3,238          0.4
 $500,000 to $999,999.............
Enterprises with receipts of           9,837         10.7     237,256        18,178     1,847,893         3,420           0.2         3,238          0.2
 $1,000,000 to $2,499,999.........
Enterprises with receipts of           4,948          5.4     227,231        20,288     4,100,203         3,420           0.1         3,238          0.1
 $2,500,000 to $4,999,999.........
Enterprises with receipts of           2,051          2.2     142,147        14,300     6,972,405         3,420           0.0         3,238          0.0
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           1,085          1.2      99,135        10,572     9,743,335         3,420           0.0         3,238          0.0
 $7,500,000 to $9,999,999.........
Enterprises with receipts of           1,217          1.3     149,025        16,368    13,449,575         3,420           0.0         3,238          0.0
 $10,000,000 to $14,999,999.......
Enterprises with receipts of             788          0.9     130,304        14,960    18,984,389         3,420           0.0         3,238          0.0
 $15,000,000 to $19,999,999.......
Enterprises with receipts of             405          0.4      83,052         9,610    23,727,832         3,420           0.0         3,238          0.0
 $20,000,000 to $24,999,999.......
Enterprises with receipts of             266          0.3      72,713         7,656    28,783,311         3,420           0.0         3,238          0.0
 $25,000,000 to $29,999,999.......
Enterprises with receipts of             193          0.2      53,118         6,371    33,011,190         3,420           0.0         3,238          0.0
 $30,000,000 to $34,999,999.......
Enterprises with receipts of             157          0.2      49,519         5,840    37,197,306         3,420           0.0         3,238          0.0
 $35,000,000 to $39,999,999.......
Enterprises with receipts of             230          0.2      84,073        10,197    44,336,758         3,420           0.0         3,238          0.0
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 34, the first-year and annualized costs for 
sponsors in the administrative and support and waste management and 
remediation services industry are estimated to have a significant 
economic impact (3 percent or more) on small entities with receipts 
under $100,000, and those firms constitute a substantial number of 
small entities in the administrative and support and waste management 
and remediation services industry (25.0 percent). The first-year costs 
are estimated to be 6.1 percent of the average receipts per firm and 
the annualized costs are estimated to be 5.7 percent of the average 
receipts per firm for firms with revenue below $100,000.

                              Exhibit 34--Administrative and Support and Waste Management and Remediation Services Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $8.5 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below       85,880         25.0     107,151        $4,839       $56,346        $3,420           6.1        $3,238          5.7
 $100,000.........................
Enterprises with receipts of         140,272         40.8     443,046        41,086       292,902        $3,420           1.2         3,238          1.1
 $100,000 to $499,999.............
Enterprises with receipts of          47,560         13.8     386,597        39,517       830,890         3,420           0.4         3,238          0.4
 $500,000 to $999,999.............
Enterprises with receipts of          38,169         11.1     676,072        69,641     1,824,533         3,420           0.2         3,238          0.2
 $1,000,000 to $2,499,999.........
Enterprises with receipts of          15,414          4.5     605,633        62,122     4,030,215         3,420           0.1         3,238          0.1
 $2,500,000 to $4,999,999.........
Enterprises with receipts of           5,678          1.7     384,948        38,991     6,867,032         3,420           0.0         3,238          0.0
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           2,981          0.9     297,553        28,484     9,555,055         3,420           0.0         3,238          0.0
 $7,500,000 to $9,999,999.........
Enterprises with receipts of           3,105          0.9     424,995        39,926    12,858,530         3,420           0.0         3,238          0.0
 $10,000,000 to $14,999,999.......
Enterprises with receipts of           1,631          0.5     293,567        28,445    17,440,217         3,420           0.0         3,238          0.0
 $15,000,000 to $19,999,999.......
Enterprises with receipts of           1,054          0.3     231,213        22,606    21,448,275         3,420           0.0         3,238          0.0
 $20,000,000 to $24,999,999.......
Enterprises with receipts of             707          0.2     207,995        18,415    26,046,902         3,420           0.0         3,238          0.0
 $25,000,000 to $29,999,999.......
Enterprises with receipts of             542          0.2     174,505        15,781    29,116,928         3,420           0.0         3,238          0.0
 $30,000,000 to $34,999,999.......
Enterprises with receipts of             438          0.1     163,589        14,122    32,242,332         3,420           0.0         3,238          0.0
 $35,000,000 to $39,999,999.......

[[Page 3261]]

 
Enterprises with receipts of             611          0.2     262,706        23,392    38,285,580         3,420           0.0         3,238          0.0
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 35, the first-year and annualized costs for 
sponsors in the health care and social assistance industry are 
estimated to have a significant economic impact (3 percent or more) on 
small entities with receipts under $100,000, and those firms constitute 
a substantial number of small entities in the health care and social 
assistance industry (16.3 percent). The first-year costs are estimated 
to be 5.9 percent of the average receipts per firm and the annualized 
costs are estimated to be 5.6 percent of the average receipts per firm 
for firms with revenue below $100,000.

                                                 Exhibit 35--Health Care and Social Assistance Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $9.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below      105,782        16.3%     144,258        $6,090       $57,567        $3,420          5.9%        $3,238         5.6%
 $100,000.........................
Enterprises with receipts of         247,273         38.0     919,768        78,811       318,721         3,420           1.1         3,238          1.0
 $100,000 to $499,999.............
Enterprises with receipts of         130,435         20.0   1,066,795       109,442       839,054         3,420           0.4         3,238          0.4
 $500,000 to $999,999.............
Enterprises with receipts of         102,005         15.7   1,733,292       183,696     1,800,855         3,420            .2         3,238          0.2
 $1,000,000 to $2,499,999.........
Enterprises with receipts of          32,793          5.0   1,269,403       133,245     4,063,217         3,420           0.1         3,238          0.1
 $2,500,000 to $4,999,999.........
Enterprises with receipts of          11,292          1.7     768,478        80,149     7,097,889         3,420           0.0         3,238          0.0
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           6,073          0.9     587,923        60,599     9,978,460         3,420           0.0         3,238          0.0
 $7,500,000 to $9,999,999.........
Enterprises with receipts of           6,282          1.0     843,098        87,833    13,981,751         3,420           0.0         3,238          0.0
 $10,000,000 to $14,999,999.......
Enterprises with receipts of           3,193          0.5     582,465        62,505    19,575,723         3,420           0.0         3,238          0.0
 $15,000,000 to $19,999,999.......
Enterprises with receipts of           1,945          0.3     432,978        48,856    25,118,522         3,420           0.0         3,238          0.0
 $20,000,000 to $24,999,999.......
Enterprises with receipts of           1,297          0.2     333,840        39,440    30,408,549         3,420           0.0         3,238          0.0
 $25,000,000 to $29,999,999.......
Enterprises with receipts of             939          0.1     287,523        33,961    36,166,881         3,420           0.0         3,238          0.0
 $30,000,000 to $34,999,999.......
Enterprises with receipts of             672          0.1     251,011        27,909    41,531,881         3,420           0.0         3,238          0.0
 $35,000,000 to $39,999,999.......
Enterprises with receipts of             903        0.1%=     357,594        44,398    49,167,765         3,420           0.0         3,238          0.0
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 36, the first-year and annualized costs for 
sponsors in the arts, entertainment, and recreation industry are 
estimated to have a significant economic impact (3 percent or more) on 
small entities with receipts under $100,000, and those firms constitute 
a substantial number of small entities in the arts, entertainment, and 
recreation industry (23.2 percent). The first-year costs are estimated 
to be 6.0 percent of the average receipts per firm and the annualized 
costs are estimated to be 5.7 percent of the average receipts per firm 
for firms with revenue below $100,000.

[[Page 3262]]



                                                Exhibit 36--Arts, Entertainment, and Recreation Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $9.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below       29,950         23.2      38,970        $1,710       $57,104        $3,420           6.0        $3,238         5.7%
 $100,000.........................
Enterprises with receipts of          54,053         41.8     191,639        15,997       295,945         3,420           1.2         3,238          1.1
 $100,000 to $499,999.............
Enterprises with receipts of          18,957         14.7     170,222        15,699       828,112         3,420           0.4         3,238          0.4
 $500,000 to $999,999.............
Enterprises with receipts of          15,336         11.9     289,189        27,685     1,805,199         3,420           0.2         3,238          0.2
 $1,000,000 to $2,499,999.........
Enterprises with receipts of           5,663          4.4     216,533        22,802     4,026,410         3,420           0.1         3,238          0.1
 $2,500,000 to $4,999,999.........
Enterprises with receipts of           1,969          1.5     125,098        13,719     6,967,317         3,420          0.0%         3,238          0.0
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           1,046         0.8%      91,555       $10,126    $9,680,550        $3,420          0.0%        $3,238         0.0%
 $7,500,000 to $9,999,999.........
Enterprises with receipts of             933         0.7%     107,964        12,372    13,260,079         3,420           0.0         3,238         0.0%
 $10,000,000 to $14,999,999.......
Enterprises with receipts of             475          0.4      74,342         8,606    18,118,161         3,420           0.0         3,238          0.0
 $15,000,000 to $19,999,999.......
Enterprises with receipts of             241          0.2      44,304         5,431    22,537,025         3,420           0.0         3,238          0.0
 $20,000,000 to $24,999,999.......
Enterprises with receipts of             204          0.2      53,147         5,416    26,546,971         3,420           0.0         3,238          0.0
 $25,000,000 to $29,999,999.......
Enterprises with receipts of             145          0.1      32,692         4,323    29,810,687         3,420           0.0         3,238          0.0
 $30,000,000 to $34,999,999.......
Enterprises with receipts of             100          0.1      27,043         3,904    39,044,753         3,420           0.0         3,238          0.0
 $35,000,000 to $39,999,999.......
Enterprises with receipts of             152          0.1      50,619         6,146    40,431,359         3,420           0.0         3,238          0.0
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 37, the first-year and annualized costs for 
sponsors in the accommodation and food services industry are estimated 
to have a significant economic impact (3 percent or more) on small 
entities with receipts under $100,000, but those firms do not 
constitute a substantial number of small entities in the accommodation 
and food services industry (12.3 percent). The first-year costs are 
estimated to be 5.7 percent of the average receipts per firm and the 
annualized costs are estimated to be 5.4 percent of the average 
receipts per firm for firms with revenue below $100,000.

                                                  Exhibit 37--Accommodation and Food Services Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $9.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below       66,229         12.3     115,964        $3,963       $59,844        $3,420           5.7        $3,238          5.4
 $100,000.........................
Enterprises with receipts of         217,687         40.5   1,118,632        70,085       321,951         3,420           1.1         3,238          1.0
 $100,000 to $499,999.............
Enterprises with receipts of         114,796         21.3   1,443,882        96,296       838,842         3,420           0.4         3,238          0.4
 $500,000 to $999,999.............
Enterprises with receipts of          98,061         18.2   2,532,598       175,384     1,788,516         3,420           0.2         3,238          0.2
 $1,000,000 to $2,499,999.........
Enterprises with receipts of          26,006          4.8   1,340,484       102,232     3,931,078         3,420           0.1         3,238          0.1
 $2,500,000 to $4,999,999.........
Enterprises with receipts of           6,495          1.2     562,320        44,428     6,840,405         3,420           0.0         3,238          0.0
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           2,683          0.5     320,216        25,941     9,668,815         3,420           0.0         3,238          0.0
 $7,500,000 to $9,999,999.........
Enterprises with receipts of           2,640          0.5     437,032        35,100    13,295,412         3,420           0.0         3,238          0.0
 $10,000,000 to $14,999,999.......
Enterprises with receipts of           1,288          0.2     316,081        23,908    18,562,454         3,420           0.0         3,238          0.0
 $15,000,000 to $19,999,999.......
Enterprises with receipts of             720          0.1     218,303        16,968    23,566,876         3,420           0.0         3,238          0.0
 $20,000,000 to $24,999,999.......
Enterprises with receipts of             485          0.1     174,495        13,587    28,015,312         3,420           0.0         3,238          0.0
 $25,000,000 to $29,999,999.......
Enterprises with receipts of             335          0.1     142,671        11,147    33,273,680         3,420           0.0         3,238          0.0
 $30,000,000 to $34,999,999.......

[[Page 3263]]

 
Enterprises with receipts of             279          0.1     136,491        10,468    37,521,086         3,420           0.0         3,238          0.0
 $35,000,000 to $39,999,999.......
Enterprises with receipts of             372          0.1     216,049        16,974    45,628,797         3,420           0.0         3,238          0.0
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Exhibit 38, the first-year and annualized costs for 
sponsors in the other services industry are estimated to have a 
significant economic impact (3 percent or more) on small entities with 
receipts under $100,000, and those firms constitute a substantial 
number of small entities in the other services industry (24.6 percent). 
The first-year costs are estimated to be 5.7 percent of the average 
receipts per firm and the annualized costs are estimated to be 5.4 
percent of the average receipts per firm for firms with revenue below 
$100,000.

                                                           Exhibit 38--Other Services Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $8.0 million--$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      First-
                                                   Number of                                                        year cost                 Annualized
                                                    firms as     Total       Annual        Average     First-year    per firm   Annualized     cost per
                                        Number of   percent    number of   receipts ($  receipts per    cost per        as       cost per      firm as
                                          firms     of small   employees    million)      firm ($)    firm with 7%   percent   firm with 7%   percent of
                                                    firms in                                           discounting      of      discounting    receipts
                                                    industry                                                         receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below           170,736       24.6     255,297       $10,216       $59,834        $3,420        5.7        $3,238          5.4
 $100,000.............................
Enterprises with receipts of $100,000     317,048       45.7   1,077,568        93,232       294,062         3,420        1.2         3,238          1.1
 to $499,999..........................
Enterprises with receipts of $500,000     102,517       14.8     754,571        84,777       826,958         3,420        0.4         3,238          0.4
 to $999,999..........................
Enterprises with receipts of               68,210        9.8     955,461       121,839     1,786,227         3,420        0.2         3,238          0.2
 $1,000,000 to $2,499,999.............
Enterprises with receipts of               20,419        2.9     564,101        81,799     4,006,027         3,420        0.1         3,238          0.1
 $2,500,000 to $4,999,999.............
Enterprises with receipts of                6,414        0.9     280,574        44,403     6,922,817         3,420        0.0         3,238          0.0
 $5,000,000 to $7,499,999.............
Enterprises with receipts of                2,783        0.4     161,164        27,025     9,710,570         3,420        0.0         3,238          0.0
 $7,500,000 to $9,999,999.............
Enterprises with receipts of                2,571        0.4     195,893        34,100    13,263,323         3,420        0.0         3,238          0.0
 $10,000,000 to $14,999,999...........
Enterprises with receipts of                1,264        0.2     119,626        22,846    18,074,474         3,420        0.0         3,238          0.0
 $15,000,000 to $19,999,999...........
Enterprises with receipts of                  692        0.1      72,568        15,534    22,448,389         3,420        0.0         3,238          0.0
 $20,000,000 to $24,999,999...........
Enterprises with receipts of                  506        0.1      63,532        13,471    26,622,602         3,420        0.0         3,238          0.0
 $25,000,000 to $29,999,999...........
Enterprises with receipts of                  325        0.0      42,921         9,987    30,729,615         3,420        0.0         3,238          0.0
 $30,000,000 to $34,999,999...........
Enterprises with receipts of                  292        0.0      37,383        10,032    34,357,693         3,420        0.0         3,238          0.0
 $35,000,000 to $39,999,999...........
Enterprises with receipts of                  326        0.0      49,042        12,512    38,381,273         3,420        0.0         3,238          0.0
 $40,000,000 to $49,999,999...........
--------------------------------------------------------------------------------------------------------------------------------------------------------

b. Registered CTE Apprenticeship Program Sponsors
    The Department used the same steps as in the analysis of registered 
apprenticeship programs to estimate the cost of the proposed rule per 
registered CTE apprenticeship program sponsor as a percentage of annual 
receipts. The Department divided the estimated first-year cost and the 
annualized cost per registered CTE apprenticeship program sponsors 
(discounted at a 7-percent rate) by the average annual receipts per 
firm in the educational services industry (NAICS 61) to determine 
whether the proposed rule would have a significant economic impact on 
registered CTE apprenticeship program sponsors in each size 
category.\247\ Then, the Department divided the number of firms in each 
size category by the total number of small firms in the educational 
services industry to determine whether the proposed rule would have a 
significant economic impact on a substantial number of small 
entities.\248\ For registered CTE apprenticeship program sponsors, the 
first-year cost or annualized cost per sponsor would have a significant 
economic impact on a substantial number of small entities. As shown in 
Exhibit 39, the first-year and annualized costs for sponsors in the 
educational

[[Page 3264]]

services industry are estimated to have a significant economic impact 
(3 percent or more) on small entities with receipts under $100,000, and 
those firms constitute a substantial number of small entities in the 
educational services industry (24.3 percent). The first-year costs are 
estimated to be 6.2 percent of the average receipts per firm and the 
annualized costs are estimated to be 4.2 percent of the average 
receipts per firm for firms with revenue below $100,000. It should be 
noted, however, that participation in CTE is voluntary; therefore, only 
small entities that choose to continue to participate would experience 
an economic impact--significant or otherwise.
---------------------------------------------------------------------------

    \247\ For purposes of this analysis, the Department used a 3-
percent threshold for ``significant economic impact.'' The 
Department has used a 3-percent threshold in prior rulemakings. 
Ibid.
    \248\ For purposes of this analysis, the Department used a 15-
percent threshold for ``substantial number of small entities.'' The 
Department has used a 15-percent threshold in prior rulemakings. 
Ibid.

                                                        Exhibit 39--Educational Services Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Small Business Size Standard: $8.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Number of                                                          First-year                  Annualized
                                                firms as      Total       Annual        Average     First-year     cost per     Annualized     cost per
                                     Number    percent of   number of   receipts ($  receipts per    cost per       firm as      cost per      firm as
                                    of firms  small firms   employees    million)      firm ($)    firm with 7%   percent of   firm with 7%   percent of
                                              in industry                                           discounting    receipts     discounting    receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below       22,439         24.3      42,944        $1,267       $56,457        $3,476           6.2        $2,398          4.2
 $100,000.........................
Enterprises with receipts of          37,156         40.3     197,950        10,926       294,070         3,476           1.2         2,398          0.8
 $100,000 to $499,999.............
Enterprises with receipts of          11,425         12.4     139,745         9,464       828,359         3,476           0.4         2,398          0.3
 $500,000 to $999,999.............
Enterprises with receipts of           9,837         10.7     237,256        18,178     1,847,893         3,476           0.2         2,398          0.1
 $1,000,000 to $2,499,999.........
Enterprises with receipts of           4,948          5.4     227,231        20,288     4,100,203         3,476           0.1         2,398          0.1
 $2,500,000 to $4,999,999.........
Enterprises with receipts of           2,051          2.2     142,147        14,300     6,972,405         3,476           0.0         2,398          0.0
 $5,000,000 to $7,499,999.........
Enterprises with receipts of           1,085          1.2      99,135        10,572     9,743,335         3,476           0.0         2,398          0.0
 $7,500,000 to $9,999,999.........
Enterprises with receipts of           1,217          1.3     149,025        16,368    13,449,575         3,476           0.0         2,398          0.0
 $10,000,000 to $14,999,999.......
Enterprises with receipts of             788          0.9     130,304        14,960    18,984,389         3,476           0.0         2,398          0.0
 $15,000,000 to $19,999,999.......
Enterprises with receipts of             405          0.4      83,052         9,610    23,727,832         3,476           0.0         2,398          0.0
 $20,000,000 to $24,999,999.......
Enterprises with receipts of             266          0.3      72,713         7,656    28,783,311         3,476           0.0         2,398          0.0
 $25,000,000 to $29,999,999.......
Enterprises with receipts of             193          0.2      53,118         6,371    33,011,190         3,476           0.0         2,398          0.0
 $30,000,000 to $34,999,999.......
Enterprises with receipts of             157          0.2      49,519         5,840    37,197,306         3,476           0.0         2,398          0.0
 $35,000,000 to $39,999,999.......
Enterprises with receipts of             230          0.2      84,073        10,197    44,336,758         3,476           0.0         2,398          0.0
 $40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------

6. Relevant Federal Rules Duplicating, Overlapping, or Conflicting With 
the Proposed Rule
    The Department is not aware of any relevant Federal rules that may 
duplicate, overlap, or conflict with the proposed rule.
7. Alternatives to the Proposed Rule
    The RFA directs agencies to assess the impacts that various 
regulatory alternatives would have on small entities and to consider 
ways to minimize those impacts. Accordingly, the Department considered 
two regulatory alternatives. Under the first alternative, end-point 
assessments (proposed Sec.  29.16) would not be required under the 
proposed rule. Under the second alternative, program reviews (proposed 
Sec.  29.19) would only be conducted for cause.
    For the first alternative the Department considered removing the 
requirement for end-point assessments from the proposed rule. To 
estimate the reduction in costs under this alternative, the Department 
subtracted the estimated costs of end-point assessments from the total 
costs estimated of the proposed rule. Exhibit 40 shows the estimated 
cost per sponsor for each year of the analysis period. The first-year 
cost per sponsor is estimated at $737 at a discount rate of 7 percent. 
The annualized cost per sponsor is estimated at $468 at a discount rate 
of 7 percent.
    The Department decided not to pursue this alternative because end-
point assessments are a key method for sponsors to assess the skills 
and knowledge acquired by the apprentice and to ensure the quality of 
registered apprenticeship programs.

                                                    Exhibit 40--Alternative 1--Estimated Cost per Registered Apprenticeship Program Sponsors
                                                                               [$ Millions unless otherwise noted]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Wage                                                                                               Number of
                                            Rule      On-the-job     analysis      Data                    Program                                                       registered     Cost per
                  Year                   familiar-     training     and career  collection     Program    standards   End-point   Recordkeeping   Program     Total    apprenticeship   sponsors
                                          ization   documentation  development      and     registration   adoption  assessments                  reviews      cost        program        ($)
                                                                     profile     reporting                agreement                                                       sponsors
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1......................................     $10.92        $0.00         $0.05        $2.94        $0.28       $0.22       $0.00         $5.57        $0.89     $20.89        26,492         $788
2......................................       1.17         0.00          0.05         3.07         0.29        0.22        0.00          5.77         0.92      11.50        27,434          419
3......................................       1.20         0.00          0.05         3.20         0.30        0.22        0.00          5.97         0.96      11.89        28,376          419
4......................................       1.23         0.00          0.05         3.33         0.31        0.22        0.00          6.17         0.99      12.29        29,318          419
5......................................       1.26         0.00          0.05         3.46         0.32        0.22        0.00          6.37         1.02      12.69        30,260          419

[[Page 3265]]

 
6......................................       1.29         0.00          0.05         3.59         0.32        0.22        0.00          6.56         1.05      13.08        31,202          419
7......................................       1.32         0.00          0.05         3.72         0.33        0.22        0.00          6.76         1.08      13.48        32,144          419
8......................................       1.35         0.00          0.05         3.85         0.34        0.22        0.00          6.96         1.11      13.88        33,086          419
9......................................       1.38         0.00          0.05         3.98         0.35        0.22        0.00          7.16         1.15      14.27        34,028          419
10.....................................       1.41         0.00          0.05         4.10         0.35        0.22        0.00          7.36         1.18      14.67        34,970          420
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
First-year cost ($), 7% discount rate................................................................................................................................................        737
Annualized cost ($), 7% discount rate, 10 years......................................................................................................................................        468
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    For the second alternative, the Department considered conducting 
program reviews only for cause, rather than for all sponsors every 5 
years. To estimate the reduction in costs under this alternative, the 
Department adjusted the calculations described in the subject-by-
subject analysis for program reviews (proposed Sec.  29.19). The 
Department estimated that instead of all sponsors undergoing a program 
review every 5 years, only 320 sponsors would receive program reviews 
in each year. The Department maintained the assumption that 20 percent 
of those program reviews would find noncompliance and require a 
subsequent compliance action plan. The Department maintained the cost 
estimates for all other provisions. Exhibit 41 shows the estimated cost 
per sponsor for each year of the analysis period. The first-year cost 
per sponsor is estimated at $3,164 at a discount rate of 7 percent. The 
annualized cost per sponsor is estimated at $3,174 at a discount rate 
of 7 percent.
    The Department decided not to pursue this alternative because 
conducting program reviews only for cause would miss a large number of 
programs that may need reviews. The Department seeks public comment on 
recommendations for additional lower cost alternatives that would still 
allow the Department to meet the goals of the proposed rule. To ensure 
high-quality registered apprenticeship programs, and that all programs 
abide by the regulatory requirements of registered apprenticeship, the 
Department believes that all registered apprenticeship programs should 
be reviewed over a 5-year period as specified in the proposed rule. 
This 5-year period ensures that the Department has the resources 
available to conduct reviews and that the review is not overly 
burdensome on programs undergoing the review. The Department seeks 
public comment on other alternatives to the proposed rule that would 
mitigate impacts on small businesses while maintaining the goals of the 
revisions to registered apprenticeship requirements and creation of 
registered CTE apprenticeship.

                                                    Exhibit 41--Alternative 2--Estimated Cost per Registered Apprenticeship Program Sponsors
                                                                               [$ Millions unless otherwise noted]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Wage                                                                                               Number of
                                            Rule      On-the-job     analysis      Data                    Program                                                       registered     Cost per
                  Year                   familiar-     training     and career  collection     Program    standards   End-point   Recordkeeping   Program     Total    apprenticeship   sponsors
                                          ization   documentation  development      and     registration   adoption  assessments                  reviews      cost        program        ($)
                                                                     profile     reporting                agreement                                                       sponsors
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1......................................     $10.92        $0.00         $0.05        $2.94        $0.28       $0.22      $69.65         $5.57        $0.05     $89.69        26,492       $3,386
2......................................       1.17         0.00          0.05         3.07         0.29        0.22       73.00          5.77         0.05      83.63        27,434        3,048
3......................................       1.20         0.00          0.05         3.20         0.30        0.22       76.35          5.97         0.05      87.34        28,376        3,078
4......................................       1.23         0.00          0.05         3.33         0.31        0.22       79.70          6.17         0.05      91.06        29,318        3,106
5......................................       1.26         0.00          0.05         3.46         0.32        0.22       83.05          6.37         0.05      94.78        30,260        3,132
6......................................       1.29         0.00          0.05         3.59         0.32        0.22       86.41          6.56         0.05      98.49        31,202        3,157
7......................................       1.32         0.00          0.05         3.72         0.33        0.22       89.76          6.76         0.05     102.21        32,144        3,180
8......................................       1.35         0.00          0.05         3.85         0.34        0.22       93.11          6.96         0.05     105.93        33,086        3,202
9......................................       1.38         0.00          0.05         3.98         0.35        0.22       96.46          7.16         0.05     109.64        34,028        3,222
10.....................................       1.41         0.00          0.05         4.10         0.35        0.22       99.81          7.36         0.05     113.36        34,970        3,242
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
First-year cost ($), 7% discount rate................................................................................................................................................      3,164
Annualized cost ($), 7% discount rate, 10 years......................................................................................................................................      3,174
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

C. Paperwork Reduction Act

    The purposes of the Paperwork Reduction Act (PRA), 44 U.S.C. 3501 
et seq., includes minimizing the paperwork burden on affected entities. 
The PRA requires certain actions before an agency can adopt or revise a 
collection of information, including publishing for public comment a 
summary of the collection of information and a brief description of the 
need for and proposed use of the information.
    As part of its continuing effort to reduce paperwork and respondent 
burden, the Department conducts a preclearance consultation program to 
provide the general public and Federal agencies with an opportunity to 
comment on proposed and continuing collections of information in 
accordance with the PRA. See 44 U.S.C. 3506(C)(2)(A). Furthermore, the 
PRA requires all Federal agencies to analyze proposed regulations for 
potential time burdens on the regulated community created by provisions 
in the proposed regulations that require any party to obtain, maintain, 
retain, report, or

[[Page 3266]]

disclose information. The ICRs also must be submitted to OMB for 
approval. Such submissions often accompany a proposed rulemaking that 
seeks to modify an existing IC, introduce new ICs, or both.
    A Federal agency may not conduct or sponsor a collection of 
information unless it is approved by OMB under the PRA and displays a 
currently valid OMB control number. The public also is not required to 
respond to a collection of information unless it displays a currently 
valid OMB control number. In addition, notwithstanding any other 
provisions of law, no person will be subject to penalty for failing to 
comply with a collection of information if the collection of 
information does not display a currently valid OMB control number. See 
44 U.S.C. 3512.
    In this NPRM, the Department is proposing several new ICs that will 
impact existing, and potentially new, registered apprenticeship 
stakeholders, including those stakeholders involved in program 
registration (i.e., program sponsors, participating employers, 
Registration Agencies, and apprentices), the occupational suitability 
process (e.g., potential program sponsors, industry groups, and trade 
associations), National Apprenticeship System governance (e.g., SAAs 
and State employees), and the proposed CTE apprenticeship model 
(potential registered CTE apprenticeship program sponsors and 
apprentices, State and Local Educational Agencies, institutions of 
higher education, and other education and workforce development 
representatives). Concurrent with the publication of this proposed 
rule, the Department has submitted ICRs to OMB to request approval for 
the ICs related to this proposal--one for revisions to the existing, 
approved ICR for OA's current activities overseeing the National 
Apprenticeship System (current OMB 1205-0223, form 671), and three new 
ICRs to reflect the new IC elements in this proposed rule. These ICRs 
align with the four areas below:
    (1) Labor Standards and Equal Employment Opportunity for Registered 
Apprenticeship Programs Registration and Reporting Requirements--
Revisions and additions to current Form 671
    (2) Information Collection on Suitability of Occupations for 
Registered Apprenticeship Programs and National Occupational Standard--
New
    (3) SAA Governance (State Apprenticeship Plan)--New
    (4) CTE Apprenticeship--New
Desired Focus of Comments
    The Department is soliciting comments concerning the proposed IC 
related to the below ICRs. The Department is particularly interested in 
comments that:
    <bullet> Evaluate whether the collection of information is 
necessary for the proper performance of the functions of the Agency, 
including whether the information has practical utility;
    <bullet> Evaluate the accuracy of the Department's estimate of the 
burden related to the IC, including the validity of the methodology and 
assumptions used in the estimate;
    <bullet> Suggest methods to enhance the quality, utility, and 
clarity of the information to be collected; and
    <bullet> Minimize the burden of the IC on those who are to respond, 
including through the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of IT (e.g., permitting electronic submission of responses).
    Please see additional information regarding each ICR for context on 
comments.
    The ICs associated with this proposal are summarized as follows:
1. Labor Standards and Equal Employment Opportunity for Registered 
Apprenticeship Programs--Registration and Reporting Requirements
    Agency: DOL-ETA.
    Title of Collection: Labor Standards and Equal Employment 
Opportunity for Registered Apprenticeship Programs--Registration and 
Reporting Requirements.
    Type of Review: New.
    OMB Control Number: 1205-0NEW.
    Description: The Department is taking this opportunity to make 
changes to the forms in OMB Control Number 1205-1223 (current form 671) 
used in the registration and reporting process for registered 
apprenticeship programs and other activities related to the 
Department's oversight of the National Apprenticeship System. This 
collection will eventually be included in OMB Control Number 1205-1223 
and reflected in a new, updated form 671; however, the Department is 
not submitting this ICR under that control number because the 
reginfo.gov database (OMB's system for processing requests) allows only 
one ICR per control number to be pending at OMB during any given 
period. Because the Department's current ICR for form 671 (current OMB 
Control Number 1205-0223) is set to expire in June 2024, and will 
require a request for renewal, the Department is requesting approval 
for a new ICR to avoid having two pending ICRs at OMB related to the 
same IC. Once all outstanding actions are complete, the Department 
intends to submit a nonmaterial change request to merge the collections 
so that all the new requirements related to this proposal are added to 
OMB Control Number 1205-0223.
    The proposed changes are intended to increase the quality and 
uniformity of data related to apprenticeship that are ultimately 
reported to OA, provide clearer and more usable tools for registered 
apprenticeship program sponsors, and cover the new or updated 
apprenticeship labor standards in this proposal that are designed on 
the basis of protecting and safeguarding the welfare of apprentices. 
This ICR encompasses the information required from program sponsors to 
meet the program registration, operation, recordkeeping, and reporting 
requirements for registered apprenticeship programs. The ICR also 
covers the information apprentices provide to sponsors (which in turn 
provide apprentice information to OA via the RAPIDS system, which is 
populated in part by the data from current form 671 that sponsors 
submit, either by paper or electronically). The Department proposes to 
further update ETA form 671, part I by adding part IA to incorporate 
the newly proposed Group Program Participating Employer Tear-off, a 
Program Standards Adoption Agreement, a Registered Apprenticeship 
Individual Record Layout schema to operate a case management system and 
for SAAs to accurately report data to the Department, additional 
proposed elements for the complaints process. The Department is also 
incorporating the IC elements related to National Program Standards for 
Apprenticeship and National Guidelines for Apprenticeship Standards, 
tools that were first introduced via DOL Circulars issued by OA (2022-
01 \249\ for National Program Standards for Apprenticeship, 2022-02 
\250\ for National Guidelines for Apprenticeship Standards) and are now 
proposed for incorporation into the part 29 regulations for registered 
apprenticeship.
---------------------------------------------------------------------------

    \249\ DOL, Circular 2022-01, ``Updated Guidance--Minimum 
National Program Standards for Registered Apprenticeship Programs,'' 
2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-01.pdf.
    \250\ DOL, Circular 2022-02, ``Guidance--National Guidelines for 
Apprenticeship Standards,'' Feb. 16, 2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-02.pdf.
---------------------------------------------------------------------------

    Affected Public: State, Local, and Tribal Governments; Private 
Sector; Individuals or Households.
    Obligation to Respond: Required to Obtain or Retain Benefits.

[[Page 3267]]

    Estimated Total Annual Respondents: 1,508,012 (reflecting FY 2022 
data in the supporting statement for sponsors, employers, apprentices, 
and SAAs).
    Estimated Total Annual Responses: 1,893,367 (reflecting FY 2022 
data in the supporting statement for sponsors, employers, apprentices, 
and SAAs).
    Estimated Total Annual Burden Hours: 1,313,437.
    Estimated Total Annual Burden Costs: $44,755,449.
    Estimated Total Annual Other Burden Costs: N/A.
    Regulations Sections: Sec. Sec.  29.2, 29.8 through 29.11, 29.13 
through 29.16, 29.17, 29.18, 29.19, 29.23, 29.25, 29.28, 30.3 through 
30.10, 30.12, 30.14.
    The Department invites the public to provide comments on this 
proposed update to the existing form 671 and the additional elements 
related to registered apprenticeship program registration and 
operation. In particular, the Department is interested in comments 
about the current form 671, its clarity and ease of use, and the 
existing registration and reporting requirements for registered 
apprenticeship programs, and whether the proposed updates to this form 
are necessary, whether the new IC elements will have practical utility 
for the Department's oversight of the National Apprenticeship System, 
and any other feedback or suggestions related to form 671 and the 
registration and reporting requirements for registered apprenticeship 
programs. The Department is also interested in its proposed 
introduction of the RAIR Layout, which would provide a schematic for 
the development of a case management system, such as RAPIDS to collect 
the information required in the proposed rule, as well as a schema for 
SAAs that do not utilize RAPIDS to use when updating their case 
management systems to align with the NPRM. In addition, the Department 
is interested in comments about the accuracy of its burden estimates 
related to this proposal, and whether any potentially impacted 
stakeholders would be unduly burdened by the proposed changes to form 
671 and registration and reporting requirements for registered 
apprenticeship programs.
2. Occupational Suitability and National Occupational Standards
    Agency: DOL-ETA.
    Title of Collection: Occupational Suitability.
    Type of Review: New.
    OMB Control Number: 1205-0NEW.
    Description: This IC is new and encompasses the information 
exchange related to applications regarding an occupation's suitability 
for registered apprenticeship training under the newly proposed process 
in Sec.  29.7. This IC also encompasses the exchange of information 
related to the development and National Occupational Standards for 
Apprenticeship (including establishing and updating such Standards) 
under the proposed process at Sec.  29.13. The Department expects that 
both of these processes will involve the exchange of information 
between industry stakeholders (including industry groups, leaders, and 
representatives, trade associations, and labor organizations) and the 
Administrator (the Department official responsible for making 
determinations on occupational suitability and overseeing the process 
of establishing National Occupational Standards for Apprenticeship).
    Information exchanged under this collection is necessary to 
determine if an occupation meets the criteria for occupational 
suitability at proposed Sec.  29.7, including the critical element of 
industry-vetting that underpins occupational suitability for registered 
apprenticeship. In addition, it is necessary to collect information 
from industry and the public related to the development of a set of 
nationally applicable standards of apprenticeship for an occupation 
(National Occupational Standards for Apprenticeship) to ensure these 
standards are applicable and usable for quality registered 
apprenticeship programs on a nationwide basis. The information under 
this collection is also necessary to give other stakeholders and the 
public the opportunity to provide feedback on a sponsor's submission 
for either occupational suitability or a set of National Occupational 
Standards for Apprenticeship.
    Affected Public: Private Sector; Individuals or Households.
    Obligation to Respond: Required to Obtain or Retain Benefits.
    Estimated Total Annual Respondents: 45 (reflective of respondents 
submitting suitability requests and submitting responses on a estimated 
average of 15 new occupations per year and 220 revised occupations per 
year, including National Occupational Standards).
    Estimated Total Annual Responses: 2,365 (based on an estimated 10 
responses per occupation or National Occupational Standard).
    Estimated Total Annual Burden Hours: 2,646.
    Estimated Total Annual Burden Costs: $79,854.
    Estimated Total Annual Other Burden Costs: N/A.
    Regulations Sections: Sec. Sec.  29.7, 29.13.
    The Department is interested in comments from the public on all 
elements of the ICs related to the proposed processes for making 
determinations regarding occupational suitability for registered 
apprenticeship training and for National Occupational Standards for 
Apprenticeship development. In particular, the Department is interested 
in hearing from existing stakeholders regarding the existing process 
for making occupational suitability determinations, whether the 
responsibility to make such determinations should rest with the 
Administrator or should remain the purview of both OA and SAAs, and 
what types of information would best inform the suitability 
determination process. In addition, the Department is interested in 
comments from industry representatives, particularly those from 
industries new to registered apprenticeship that may have a vested 
interest in the development of National Occupational Standards for 
Apprenticeship for their industry, regarding the process for developing 
National Occupational Standards, what types of information would best 
inform such development, and other feedback or suggestions on how to 
accelerate registered apprenticeship expansion into new industries 
through frameworks, tools, and other resources.
3. State Apprenticeship Agency Governance and Planning
    Agency: DOL-ETA.
    Title of Collection: State Apprenticeship Agency Governance and 
Planning.
    Type of Review: New.
    OMB Control Number: 1205-0NEW.
    Description: This new IC reflects the Department's proposal to 
update and refine the process for recognizing SAAs, and the information 
contained in the collection is required for any State seeking initial 
or continued recognition as an SAA State. The Department's proposal 
includes a requirement for State Apprenticeship Plans that SAAs must 
develop, and submit to OA for approval, in order to obtain or maintain 
recognition as an SAA, and this IC contains all the required 
information and documentation needed for a satisfactory State 
Apprenticeship Plan. The IC also reflects the subsequent documentation 
required if an SAA's State Apprenticeship Plan needs revisions (i.e., 
the corrective action plan introduced in the section-by-section 
discussion of this NPRM), as well as any documentation related to the 
withdrawal or derecognition of an SAA. Of the 57 States as defined in 
proposed 29 CFR 29.2, there are currently 31

[[Page 3268]]

States with SAAs recognized to registered programs for Federal 
purposes. These jurisdictions, should they seek to continue recognition 
for Federal purposes, will submit an initial plan during 2026 (first 
year that plans are required). After which, States are required to 
submit a renewal every 4 years. SAAs may submit updates should they 
need to modify their plan under proposed 29 CFR 29.27. No other 
submissions are required unless a State without a recognized SAA seeks 
recognition for Federal purposes.
    The information requested in this IC is required to facilitate the 
Department's examination of a State agency's fitness to serve in the 
role of an SAA, including meeting the requirements and responsibilities 
outlined in proposed Sec.  29.26 and the other SAA-related requirements 
found in proposed Sec. Sec.  29.27 and 29.29, as applicable. The 
Department has determined that its proposal for revamping the SAA 
Governance framework will increase its ability to monitor and verify 
States' operational and strategic capacity to serve in the important 
role of an SAA within the National Apprenticeship System, including 
assessing whether State laws conform to the minimum standards in the 
parts 29 and 30 regulations, and whether States have a detailed, 
actionable plan for advancing DEIA and EEO outcomes for the registered 
apprenticeship programs in their State. The information will be 
collected via an online form and by email, and the Department is 
committed to providing substantial technical assistance to any SAAs 
recognized at the time of this proposed rule's effective date, if 
finalized, as well as any new States seeking recognition from the 
Federal government as an SAA State.
    Affected Public: State, Local, and Tribal Governments.
    Obligation to Respond: Required to Obtain or Retain Benefits.
    Estimated Total Respondents in 2026: 31 SAAs.
    Estimated Total Responses in 2026: 31 SAAs.
    Estimated Total Burden Hours in 2026: 86 hours.
    Estimated Total Burden Costs in 2026: $197,948.
    Estimated Total Annual Other Burden Costs: N/A.
    The Department invites comments from the public, including State or 
SAA representatives, State and local elected officials, and sponsors 
and apprentices in SAA States, regarding the proposed updates to the 
SAA Governance framework and the Department's IC plans related to such 
framework. In particular, the Department is interested in comments or 
feedback regarding the increased burden, if any, this revamped approach 
to SAA Governance may introduce, and whether the benefits of the 
proposal (as articulated above in the section-by-section discussion) 
justify any increased burden. The Department is also interested in 
receiving comments on the practical and strategic benefits of the State 
planning process (such as that used for the WIOA model) and whether 
this is appropriate or useful for the National Apprenticeship System.
4. Registered Career and Technical Education Apprenticeship
    Agency: DOL-ETA.
    Title of Collection: Career and Technical Education Apprenticeship.
    Type of Review: New.
    OMB Control Number: 1205-0NEW.
    Description: This IC is new and encompasses the information 
exchange related to registered CTE apprenticeship program sponsors--
primarily LEAs, institutions of higher education, or their designated 
intermediaries--and CTE apprentice information under the Department's 
proposed registered CTE apprenticeship model at proposed 29 CFR part 
29, subpart B (proposed Sec.  29.24). This IC also encompasses the 
exchange of information related to the development of industry skills 
frameworks (including establishing and updating such Frameworks) under 
proposed Sec.  29.24, wherein the Department would work with the public 
and industry representatives to develop nationally applicable 
frameworks to guide the on-the-job training and CTE apprenticeship-
related instruction of CTE apprentices in subject industry for proposed 
registered CTE apprenticeships.
    This ICR will cover sponsors' submission of information for 
registered CTE apprenticeship program registration, operation, 
recordkeeping, and reporting requirements (as proposed in Sec.  29.24), 
including CTE program standards, a CTE apprenticeship agreement, an 
employer adoption agreement (where applicable under proposed Sec.  
29.24), a complaints form, and a voluntary attestation of disability. 
The ICR also covers the information CTE apprentices provide to 
sponsors, as populated through a CTE apprenticeship agreement, and 
sponsors' subsequent provision of apprentice information, to the extent 
feasible, to a Registration Agency via the RAPIDS or State sponsored 
case management system (in accordance with FERPA and relevant State 
laws for sharing information on students in secondary education). This 
ICR is similar to the current IC practices under subpart A but tailored 
to meet the requirements under subpart B. OA does not currently collect 
this information, and doing so will require the development of an 
applicable form. The ICR will also involve the exchange of information 
between industry stakeholders (including industry groups, leaders, and 
representatives, trade associations, labor organizations, and local 
advisory councils) and the Administrator (the Department official 
responsible for overseeing the process of developing and establishing 
industry skills frameworks). Information exchanged under this 
collection is necessary to collect information from industry and the 
public related to the development of nationally applicable and locally 
tailored industry skills frameworks that provide the basis for the paid 
on-the-job component of a registered CTE apprenticeship.
    Affected Public: State, Local, and Tribal Governments; Private 
Sector; Individuals or Households.
    Obligation to Respond: Required to Obtain or Retain Benefits.
    Estimated Total Annual Respondents: 4,451 (all 2025 registered CTE 
apprenticeship program sponsors [137], participating employers [210], 
CTE apprentices [3210], and SAAs [1]) 8 industry leaders for ISF).
    Estimated Total Annual Responses: 4,451 (all 2025 registered CTE 
apprenticeship program sponsors [137], participating employers [210], 
CTE apprentices [3210], and SAAs [1]) 8 industry skills framework 
submissions, 80 industry skills framework responses by industry 
leaders).
    Estimated Total Annual Burden Hours: 5,141.
    Estimated Total Annual Burden Costs: $225,031.
    Estimated Total Annual Other Burden Costs: N/A.
    Regulations Sections: Sec.  29.24.
    The Department invites the public to provide comments on this 
proposed IC for registered CTE apprenticeship program registration and 
industry skills frameworks. In particular, the Department is interested 
in comments about the ability for registered CTE apprenticeship program 
sponsors or their designated intermediaries to provide valid and timely 
information to meet applicable reporting requirements, such as the 
submission of standards for program registration. The Department is 
interested in comments about the potential barriers to reporting CTE 
apprentice information to a Registration Agency and the types of 
mechanisms that can facilitate sponsors' or States' ability to report 
CTE apprentice information. In addition, the

[[Page 3269]]

Department is interested in comments about the accuracy of its burden 
estimates related to this proposal, and whether any potentially 
impacted stakeholders would be unduly burdened by the new registration 
and reporting requirements for registered CTE apprenticeship programs. 
In addition, the Department is interested in comments from industry 
representatives, particularly those from industries that can provide a 
broad base of skills and competencies in the development of industry 
skills frameworks for their industry, regarding the process for 
developing industry skills frameworks and what types of information 
would best inform such development. The Department is also interested 
in hearing from the CTE stakeholder community on the applicability and 
alignment of industry skills frameworks with CTE programs within State-
identified Career Clusters.

D. Executive Order 13132 (Federalism)

    The Department has reviewed this proposed rule in accordance with 
E.O. 13132 and found that, if finalized as proposed, it will have 
federalism implications because it will have substantial direct effects 
on States, their registration of programs for Federal purposes, and the 
relationship between the Federal Government and the States. Due to the 
nature of OA's role overseeing the National Apprenticeship System per 
its statutory mandate to protect the welfare of apprentices nationwide, 
OA's enforcement of the parts 29 and 30 regulations, as well as OA's 
development and promulgation of updates to such regulations, may have 
such federalism implications if States are required to make any changes 
or adjustments to apprenticeship policy, State apprenticeship laws, or 
any procedures related to their respective roles in this Federally 
administered apprenticeship system. OA regularly consults and 
collaborates with State partners and organizations, including when 
developing and promulgating proposed updates to part 29 or part 30 
impacting the National Apprenticeship System (as described below). The 
Department and OA will continue consulting and collaborating with State 
partners, which the Department views as central to OA's role in 
promoting and maintaining quality registered apprenticeship programs. 
The Department invites comments from the public on the federalism 
implications of this proposed rule and is interested in comments from 
State partners regarding the quality and effectiveness of the 
Department's ongoing consultations and collaborations and any 
recommendations for improvement.
    In particular, the proposed rule, if finalized, may affect internal 
State organizational structures and processes with regard to new and 
ongoing SAA recognition, strategic planning for the expansion of 
registered apprenticeship, determining occupations' suitability for 
registered apprenticeship training, and developing processes for 
reciprocal approval of programs registered in other States. The 
Department is proposing updates to the part 29 regulations concerning 
National Apprenticeship System governance (with the most significant 
changes to the relationship between the Federal government and the 
States contained within proposed subpart C) based on analysis of the 
functioning and efficacy of the current system, consultations with 
State partners including representatives from SAAs and State partners 
from OA States (i.e., States without an SAA recognized by the 
Department), and recommendations from existing registered 
apprenticeship stakeholders, advisory bodies (such as the ACA), and 
other workforce development and education system partners.
    Stakeholders, including State and local officials and other 
National Apprenticeship System partners, have been a vital source of 
both feedback regarding the efficacy of the current system and 
suggestions and advice (based on their experiences and regional 
perspectives registering, overseeing, participating, or analyzing 
registered apprenticeship programs) regarding ways to improve the 
system, including recommended adjustments to its governing regulations. 
In the past 2 years, as an essential part of its planning for the 
development and promulgation of this NPRM, the Department has been 
engaged with stakeholders more specifically on the topic of updating 
the regulatory framework (including whether updates were necessary, and 
what issues should be prioritized in updating the regulations) and has 
participated in or organized several forums for soliciting feedback and 
advice from State partners and other apprenticeship stakeholders on 
this topic. For example, the Department solicited and considered advice 
from the most recent term of the ACA,\251\ and held listening sessions 
and otherwise consulted with State partners specifically related to 
systemwide governance and the relationship between OA and the States 
(including officials from the National Association of State and 
Territorial Apprenticeship Directors (NASTAD), the organization 
representing apprenticeship officials from the District of Columbia, 28 
States operating SAAs, and two Territories).
---------------------------------------------------------------------------

    \251\ ACA, ``Interim Report to the Secretary of Labor,'' May 16, 
2022, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
---------------------------------------------------------------------------

    The ACA, which includes representation from NASTAD, offered 
specific suggestions on matters relating to SAA governance and the role 
of States in the expansion and modernization of registered 
apprenticeship that are relevant to this Federalism analysis. These 
suggestions included aligning registered apprenticeship policies and 
procedures among SAA and OA States to promote cohesiveness and 
uniformity within the National Apprenticeship System, standardizing the 
process for making determinations on occupations' suitability for 
registered apprenticeship training, and enhancing data collection and 
reporting requirements to develop a national repository of high-quality 
apprenticeship data. The Department agrees with many of the ACA's 
observations and recommendations and has incorporated these 
recommendations throughout the proposed rule.
    In addition to consulting during with the ACA during its most 
recent term, the Department organized forums to intentionally engage 
with State partners, such as SAAs and NASTAD, on the effectiveness of 
the National Apprenticeship System and its existing regulations, the 
Department's plans to pursue updates to the regulations, and State 
partners' concerns, issues, or recommendations related to system 
governance. In March and May 2023, OA held listening sessions to 
discuss and obtain feedback from these important State partners. To 
guide the discussions and generate feedback on topics related to the 
Department's developing plans for updating the part 29 regulations, the 
Department circulated guiding questions to stakeholders invited to 
participate in the listening sessions. These questions asked about ways 
to modernize the National Apprenticeship System, the characteristics of 
high-quality registered apprenticeship programs, and strategies to 
improve equitable access to registered apprenticeship programs and 
promote the expansion of registered apprenticeship into new and 
emerging industries.
    During the listening sessions with State partners, several issues 
emerged related to the relationship between the Federal Government (for 
registered apprenticeship, OA) and the States (SAAs and other State 
partners). For

[[Page 3270]]

example, State partners brought a meaningful perspective on the 
forthcoming Federal funding for registered apprenticeship programs and 
the need to safeguard quality throughout all registered apprenticeship 
programs with new potential stakeholders coming into the system. Some 
State partners stressed the need to maintain quality as registered 
apprenticeship expands and new industries and occupations enter the 
system, including through strong quality standards. Other State 
partners discussed ways that some existing registered apprenticeship 
programs fall short of quality standards, including through 
consistently low completion rates, lack of adequate representation of 
the diverse populations in the community, and the failure to provide 
tools or training necessary for apprentices' success in an occupation 
upon completing a program. In the Department's view, this proposed rule 
is responsive to the discussion on maintaining quality as the National 
Apprenticeship System expands. This proposal strengthens the labor 
standards for registered apprenticeship programs at proposed Sec.  
29.8, including through proposed provisions to improve assessment of an 
apprentices' progress toward proficiency in an occupation. In response 
to stakeholders' (including State partners) concerns about promoting 
equitable access to registered apprenticeship programs and addressing 
barriers to entry, the Department's strengthened labor standards 
include a new proposed requirement that apprentices must not be charged 
any unreasonable or unnecessary costs, expenses, or fees to participate 
in a program, and that apprentices must be made aware of all costs, 
expenses, or fees related to participation in a program. In the 
Department's view, these and other strengthened labor standards will 
promote and maintain program quality as the National Apprenticeship 
System expands and incorporates new stakeholders, occupations, and 
industries.
    The proposal would also expand the collection of apprenticeship 
data (at proposed Sec.  29.25) to include elements like interim, 
secondary, or postsecondary credentials provided in registered 
apprenticeship programs, additional information regarding apprentices' 
progress through a program, and information about employers, workforce 
systems, and other partners associated with a program and its ability 
to place apprentices on a pathway to quality, sustainable careers. The 
proposal's enhanced data collection measures also align with feedback 
from State partners, which discussed the importance of measuring more 
than just apprentices' entry into and exit from a registered 
apprenticeship program for assessing program quality.
    Many State partners and apprenticeship stakeholders discussed the 
importance of standardization and uniformity throughout the National 
Apprenticeship System. In the listening sessions, State partners also 
discussed the value and effectiveness of existing tools to clarify and 
facilitate administrative responsibilities (e.g., recordkeeping, data 
reporting, and the RAPIDS system) and the potential value of robust 
tools to inform, facilitate, and accelerate the development of new 
registered apprenticeship programs (e.g., Standard Builder, National 
Program Standards for Apprenticeship, and National Guidelines for 
Apprenticeship Standards). The Department considered this input in 
developing the proposed rule, and the NPRM includes several provisions 
intended to promote uniformity and standardization throughout the 
National Apprenticeship System. For example, the NPRM would formalize 
the processes for development and intended uses of National 
Occupational Standards for Apprenticeship, National Program Standards 
for Apprenticeship, and National Guidelines for Apprenticeship 
Standards. The Department will continue working with industry to refine 
and develop these templates for new occupations and industries, and 
expects that new programs will use such tools to more easily develop 
new registered apprenticeship programs in in-demand occupations.
    The Department's proposal would also increase standardization 
throughout the system with respect to program registration, 
recordkeeping and reporting requirements, and SAA recognition processes 
to promote consistent performance accountability among registered 
apprenticeship programs operating in all States. A key reform in this 
proposal is the clarification of SAA roles and responsibilities at 
proposed Sec.  29.26 and the State Apprenticeship Plan process outlined 
at proposed Sec.  29.27. The Department expects that its proposed 
reforms to the SAA governance framework, including establishing clearer 
roles for SAAs and consultative bodies such as State Apprenticeship 
Councils, aligning State policies via the required submission and 
approval of a State Apprenticeship Plan, and standardizing data 
collection processes, will promote uniformity and standardization 
throughout the National Apprenticeship System to the benefit of 
existing programs and any new stakeholders entering the system going 
forward. The updated SAA recognition and reporting requirements 
represent the most direct Federalism implication within this proposal, 
and the Department invites comments from all registered apprenticeship 
stakeholders and State partners regarding the benefits, feasibility, 
potential challenges, and any undue burdens that may arise related to 
the Department's proposal to reform SAA recognition and systemwide 
governance.
    Some State partners suggested that the Department should avoid 
adding to or changing the regulations at all because some existing or 
potential stakeholders have expressed that the current regulation, the 
part 30 regulations and associated EEO responsibilities for States and 
programs, and overall administrative requirements within the system 
were too long, complicated, or burdensome. Other State partners 
specifically pointed to EEO requirements, or efforts to improve DEIA 
outcomes throughout the system, as a source of discomfort among some 
stakeholders. The Department did not ultimately accept these 
recommendations in this proposed update to the part 29 regulations 
because, in the Department's view, the existing regulations need to be 
strengthened and modernized to reflect the realities and needs of 
stakeholders in the modern National Apprenticeship System. Further, in 
the Department's view, the EEO requirements and intentional DEIA focus 
of the part 30 regulations are important aspects of its goal to improve 
inclusivity and equity in the National Apprenticeship System.
    In addition to soliciting and considering recommendations from the 
ACA and the facilitation of formal listening sessions, OA has 
maintained (and will continue to maintain) an open line of 
communication with SAA leadership that has created a consistent 
feedback loop on matters related to registered apprenticeship. OA staff 
at the national and regional levels regularly consult with SAAs, and as 
stated earlier, OA views the provision of technical assistance as 
central to its responsibility to oversee the National Apprenticeship 
System. OA will continue to provide such technical assistance and plans 
to develop robust tools to assist SAAs and all National Apprenticeship 
System stakeholders with understanding and complying with this proposed 
rule, including assistance related to the development of a State 
Apprenticeship Plan, continuous improvement of the labor standards

[[Page 3271]]

tools and templates for both existing and new programs' compliance with 
the strengthened labor standards in this proposed rule, and resources 
to support States' and programs' responsibilities and goals related to 
improved DEIA outcomes and equitable access for apprentices.

E. Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 
U.S.C. 1532, requires each Federal agency to prepare a written 
statement assessing the effects of any Federal mandate in a proposed 
rule that may result in $100 million or more in expenditures (adjusted 
annually for inflation) in any 1 year by State, local, and Tribal 
governments, in the aggregate, or by the private sector.
    This proposed rule, if finalized, does not exceed the $100-million 
expenditure in any 1 year when adjusted for inflation, and this 
rulemaking does not contain such a mandate. The requirements of title 
II of UMRA, therefore, do not apply, and the Department has not 
prepared a statement under the Act.

F. Executive Order 13175 (Indian Tribal Governments)

    The Department has reviewed this proposed rule in accordance with 
E.O. 13175 and has determined that it does not have Tribal 
implications. The proposed rule does not have substantial direct 
effects on one or more Indian Tribes, on the relationship between the 
Federal Government and Indian Tribes, or on the distribution of power 
and responsibilities between the Federal Government and Indian Tribes.

G. Internet Address of NPRM Summary (5 U.S.C. 553(b)(4))

    The Department has developed a summary of the proposed rule in 
plain language in accordance with 5 U.S.C. 553(b)(4) and it is publicly 
available at https://www.regulations.gov.

List of Subjects

29 CFR Part 29

    Apprenticeship agreements and complaints, Apprenticeship programs, 
Program standards, Registration and deregistration, Sponsor 
eligibility, State Apprenticeship Agency recognition and derecognition, 
Suitability for registered apprenticeship criteria.

29 CFR Part 30

    Administrative practice and procedure, Apprenticeship, Employment, 
Equal employment opportunity, Reporting and recordkeeping requirements, 
Training.

    For the reasons stated in the preamble, the Employment and Training 
Administration proposes to amend 29 CFR parts 29 and 30 as follows:1. 
Revise part 29 to read as follows:

PART 29--LABOR STANDARDS FOR THE REGISTRATION OF APPRENTICESHIP 
PROGRAMS

Sec.
29.1 Purpose and scope.
29.2 Definitions.
29.3 Office of Apprenticeship.
29.4 Relation to other laws and agreements.
29.5 Severability.
29.6 Transition provisions.
Subpart A--Standards for Registered Apprenticeship Programs
Sec.
29.7 Occupations suitable for registered apprenticeship programs.
29.8 Standards of apprenticeship.
29.9 Apprenticeship agreements.
29.10 Program registration.
29.11 Program standards adoption agreement.
29.12 Qualifications of apprentice trainers and providers of related 
instruction.
29.13 Development of National Occupational Standards for 
Apprenticeship.
29.14 National Program Standards for Apprenticeship.
29.15 National Guidelines for Apprenticeship Standards.
29.16 End-point assessment and Certificate of Completion.
29.17 Complaints.
29.18 Recordkeeping by registered programs.
29.19 Program reviews.
29.20 Deregistration of a registered program.
29.21 Hearings on deregistration.
29.22 Reinstatement of program registration.
29.23 Exemptions.
Subpart B--Career and Technical Education Apprenticeship
Sec.
29.24 Registration of career and technical education apprenticeship 
programs.
Subpart C--Administration and Coordination of the National 
Apprenticeship System
Sec.
29.25 Collection of data and quality metrics concerning 
apprenticeship.
29.26 Roles and responsibilities of State Apprenticeship Agencies.
29.27 Recognition of State Apprenticeship Agencies.
29.28 Reporting requirements for State Apprenticeship Agencies.
29.29 Denial of a State Apprenticeship Plan for recognition as a 
State Apprenticeship Agency and derecognition of existing State 
Apprenticeship Agencies.
29.30 Apprenticeship requirements in other laws.

    Authority:  29 U.S.C. 50; 40 U.S.C. 3145; 5 U.S.C. 301; 5 U.S.C. 
App. P. 534.


Sec.  29.1  Purpose and scope.

    The purpose of this part is to set forth labor standards to 
safeguard the welfare of apprentices, promote the formulation of 
quality registered apprenticeship programs across a wide range of 
industries, bring employers, labor, education partners, and other 
intermediaries together for the formulation of such programs, ensuring 
equitable apprenticeship opportunities for underserved communities, and 
to extend the application of Federal standards of apprenticeship by 
prescribing policies and procedures concerning the registration, for 
Federal purposes, of registered apprenticeship programs with the U.S. 
Department of Labor, Employment and Training Administration, Office of 
Apprenticeship (OA). These labor standards, policies, and procedures 
cover the registration, cancellation, and deregistration of registered 
apprenticeship programs and of apprenticeship agreements; the 
registration of career and technical education (CTE) apprenticeship 
programs; the collection of apprenticeship-related data from programs; 
the recognition of a State government agency as an authorized agency 
for registering apprenticeship programs for certain Federal purposes; 
the oversight and accountability of registered apprenticeship programs; 
and matters relating thereto.


Sec.  29.2  Definitions.

    For purposes of this part and part 30 of this title:
    Administrator means the Administrator of OA, or any person 
specifically designated by the Administrator or serving in the capacity 
of the Administrator.
    Annual completion rate means the percentage of apprentices during a 
fiscal year who received a Certificate of Completion divided by the 
total number of exiters during the fiscal year.
    Apprentice means a worker at least 16 years of age, except where a 
higher minimum age standard is otherwise fixed by law, who is 
participating in a registered apprenticeship program under subpart A of 
this part covered by the requirements of this part and part 30 of this 
title.
    Apprenticeship agreement means a written agreement executed between 
an apprentice and either a program sponsor or participating employer at 
the beginning of the apprenticeship that satisfies the requirements 
herein at Sec.  29.9, and that describes the terms and

[[Page 3272]]

conditions of the employment and training of the apprentice, as well as 
any subsequent contractual provisions or agreements executed between 
the apprentice and either a program sponsor or a participating employer 
during the remainder of the apprenticeship term.
    Apprenticeship committee (committee) means those persons designated 
by the sponsor to administer the program. A committee may be either 
joint or non-joint, as follows:
    (1) A joint committee is composed of an equal number of 
representatives of the employer(s) and of the employees represented by 
a bona fide collective bargaining agent(s).
    (2) A non-joint committee, which may also be known as a unilateral 
committee or group non-joint committee (which may include employees), 
has employer representatives but does not have a bona fide collective 
bargaining agent as a participant.
    Cancellation means the termination of the apprenticeship agreement 
by either the apprentice or sponsor.
    Career and technical education (CTE) means, as defined in sec. 3(5) 
of the Carl D. Perkins Career and Technical Education Act of 2006, as 
amended by the Strengthening Career and Technical Education for the 
21st Century Act (20 U.S.C. 2302(5)) (Perkins), organized educational 
activities that--
    (1) Offer a sequence of courses that--
    (i) Provide individuals with rigorous academic content and relevant 
technical knowledge and skills needed to prepare for further education 
and careers in current or emerging professions, which may include high-
skill, high-wage, or in-demand industry sectors or occupations, which 
shall be, at the secondary level, aligned with the challenging State 
academic standards adopted by a State under sec. 1111(b)(1) of the 
Elementary and Secondary Education Act of 1965;
    (ii) Provide technical skill proficiency or a recognized 
postsecondary credential, which may include an industry-recognized 
credential, a certificate, or an associate degree; and
    (iii) May include prerequisite courses (other than a remedial 
course) that meet the requirements of this paragraph;
    (2) Include competency-based, work-based, or other applied learning 
that support the development of academic knowledge, higher order 
reasoning and problem-solving skills, work attitudes, employability 
skills, technical skills, and occupation-specific skills, and knowledge 
of all aspects of an industry, including entrepreneurship, of an 
individual;
    (3) To the extent practicable, coordinate between secondary and 
postsecondary education programs through CTE programs, which may 
include coordination through articulation agreements, early college 
high school programs, dual or concurrent enrollment program 
opportunities, or other credit transfer agreements that provide 
postsecondary credit or advanced standing; and
    (4) May include career exploration at the high school level or as 
early as the middle grades (as such term is defined in sec. 8101 of the 
Elementary and Secondary Education Act of 1965).
    Career pathway means a combination of rigorous and high-quality 
education, training, and other services that:
    (1) Aligns with the skill needs of industries in the economy of the 
State or regional economy involved;
    (2) Prepares an individual to be successful in any of a full range 
of secondary or postsecondary education options, including 
apprenticeship programs registered under subpart A of this part;
    (3) Includes counseling to support an individual in achieving the 
individual's education and career goals;
    (4) Includes, as appropriate, education offered concurrently with 
and in the same context as workforce preparation activities and 
training for a specific occupation or occupational cluster;
    (5) Organizes education, training, and other services to meet the 
particular needs of an individual in a manner that accelerates the 
educational and career advancement of the individual to the extent 
practicable;
    (6) Enables an individual to attain a secondary school diploma or 
its recognized equivalent, and at least one recognized postsecondary 
credential; and
    (7) Helps an individual enter or advance within a specific 
occupation or occupational cluster.
    Certificate of Completion means documentation that a Registration 
Agency has determined that an individual has successfully completed a 
registered apprenticeship program. Such documentation may be in a 
secure digital format, in addition to or instead of a physical format.
    Certificate of completion of registered CTE apprenticeship means 
documentation that a Registration Agency has determined that an 
individual has successfully completed a registered CTE apprenticeship 
program. Such documentation may be in a secure digital format, in 
addition to or instead of a physical format.
    Certificate of Participation means documentation that an apprentice 
has participated or is participating in a registered apprenticeship 
program. Such documentation may be in a secure digital format, in 
addition to or instead of a physical format.
    Certificate of Recognition means documentation that the 
Administrator has recognized National Guidelines for Apprenticeship 
Standards for adoption or adaptation by a sponsor and the standards are 
eligible for local registration by a Registration Agency. Such 
documentation may be in a secure digital format, in addition to or 
instead of a physical format.
    Certificate of Registration means documentation that a Registration 
Agency has registered an apprenticeship program. Such documentation may 
be in a secure digital format, in addition to or instead of a physical 
format.
    Cohort completion rate means the percentage of an apprenticeship 
cohort who receive a Certificate of Completion within 1 year of the 
projected completion date. An apprenticeship cohort is the group of 
individual apprentices registered to a specific program during a given 
fiscal year. In calculating a registered apprenticeship program's 
cohort completion rate, a Registration Agency must disregard any 
cancellations of apprenticeship agreements by either the apprentice or 
the program sponsor that occurred during the probationary period for 
apprentices established in the program's standards of apprenticeship.
    Collective bargaining agreement means a written agreement 
negotiated between an employer (or a group of employers) and the 
bargaining representative(s) of a labor union to which employees of the 
employer(s) belong that addresses such topics as wages, hours, 
workplace health and safety, employee benefits, and other terms and 
conditions of employment.
    Competency means the attainment of knowledge, skills, abilities, 
and techniques, as specified in a work process schedule approved under 
Sec.  29.7 and demonstrated by an appropriate on-the-job, industry-
based proficiency measurement.
    Corrective action plan is a plan developed by a State 
Apprenticeship Agency (SAA) in consultation with OA that identifies 
actionable steps that a State must take to address unresolved findings 
of noncompliance with this part or part 30 of this title. A corrective 
action plan must list specific milestones for key corrective actions 
and detail subsequent action to be taken by the Department in the event 
of inaction by the State.
    Credential rate means the percentage of an apprenticeship cohort 
who receive an interim credential, as defined in this section, prior to 
their completion of a

[[Page 3273]]

registered apprenticeship program. In calculating a registered 
apprenticeship program's credential rate, a Registration Agency must 
disregard any cancellations of apprenticeship agreements by either the 
apprentice or the program sponsor that occurred during the probationary 
period for apprentices established in the program's standards of 
apprenticeship.
    CTE apprentice means a participant at least 16 years of age, except 
where a higher minimum age standard is otherwise required by Federal, 
State, or local law, in a registered CTE apprenticeship program covered 
by the requirements of subpart B of this part and part 30 of this 
title. A CTE apprentice is not an apprentice for purposes of Sec. Sec.  
4.6(p), 5.2, 5.5(a)(4), and 570.50(b) of this title.
    CTE apprenticeship agreement means a written agreement that 
complies with the requirements in Sec.  29.24, and that contains the 
terms and conditions of the employment and training of the CTE 
apprentice.
    CTE apprenticeship-related instruction means an organized and 
systematic form of instruction designed to provide the CTE apprentice 
with the knowledge of the theoretical and technical subjects related to 
the industry skills framework. CTE apprenticeship-related instruction 
must involve the curriculum that is approved as part of a State-
approved CTE program and may include any additional coursework 
prescribed by the sponsor. Such instruction may be given in a 
classroom, through electronic media, or through other forms of study 
approved by the State CTE Agency and Registration Agency.
    Day means a calendar day.
    Department means the U.S. Department of Labor.
    Direct threat means a significant risk of substantial harm to the 
health or safety of the individual or others that cannot be eliminated 
or reduced by reasonable accommodation. The determination that an 
individual poses a ``direct threat'' must be based on an individualized 
assessment of the individual's present ability to safely perform the 
essential functions of the job. This assessment must be based on a 
reasonable medical judgment that relies on the most current medical 
knowledge, the best available objective evidence, or both. In 
determining whether an individual would pose a direct threat, the 
factors to be considered include:
    (1) The duration of the risk;
    (2) The nature and severity of the potential harm;
    (3) The likelihood that the potential harm will occur; and
    (4) The imminence of the potential harm.
    Disability means, with respect to an individual:
    (1) A physical or mental impairment that substantially limits one 
or more major life activities of such individual;
    (2) A record of such an impairment; or
    (3) Being regarded as having such an impairment.
    EEO means equal employment opportunity.
    Electronic media means media that utilize electronics or 
electromechanical energy for the end user (audience) to access the 
content.
    Employer means any person or organization that employs workers, 
and, when used in reference to employing apprentices under subparts A, 
B, and C of this part, means any person or organization that employs an 
apprentice during the on-the-job training component of an 
apprenticeship program pursuant to a program sponsor's approved set of 
standards of apprenticeship and the apprenticeship agreement.
    Ethnicity, for purposes of recordkeeping and affirmative action, 
has the same meaning as under the Office of Management and Budget's 
Standards for the Classification of Federal Data on Race and Ethnicity, 
or any successor standards. Ethnicity thus refers to the following 
designations:
    (1) Hispanic or Latino--A person of Cuban, Mexican, Puerto Rican, 
Cuban, South or Central American, or other Spanish culture or origin, 
regardless of race.
    (2) Not Hispanic or Latino.
    Exit is when an apprentice has ended their participation in a 
registered apprenticeship program based on a completion, transfer, or 
cancellation.
    Federal purposes includes any Federal contract, grant, agreement, 
or arrangement dealing with registered apprenticeship; and any Federal 
financial or other assistance, benefit, privilege, contribution, 
allowance, exemption, preference, or right pertaining to registered 
apprenticeship.
    Fiscal year means the accounting period of OA. It begins on October 
1 and ends on September 30 of the next calendar year.
    Genetic information means:
    (1) Information about--
    (i) An individual's genetic tests;
    (ii) The genetic tests of that individual's family members;
    (iii) The manifestation of disease or disorder in family members of 
the individual (family medical history);
    (iv) An individual's request for, or receipt of, genetic services, 
or the participation in clinical research that includes genetic 
services by the individual or a family member of the individual; or
    (v) The genetic information of a fetus carried by an individual or 
by a pregnant woman who is a family member of the individual and the 
genetic information of any embryo legally held by the individual or 
family member using an assisted reproductive technology.
    (2) Genetic information does not include information about the sex 
or age of the individual, the sex or age of family members, or 
information about the race or ethnicity of the individual or family 
members that is not derived from a genetic test.
    Group program means an apprenticeship program established and 
registered by a sponsoring organization in which one or more employers 
have agreed to participate, usually pursuant to a collective bargaining 
agreement or a program standards adoption agreement.
    Industry skills framework means an on-the-job training outline of 
nationally applicable, high-quality standards of registered CTE 
apprenticeship validated by industry and detailing the required skills 
and competencies to be attained through a CTE apprentice's 
participation in a registered CTE apprenticeship program.
    Institution of higher education (IHE) has the meaning given the 
term in sec. 101(a) of the Higher Education Act of 1965.
    Interim credential means a recognized postsecondary credential 
issued in connection with participation in a registered apprenticeship 
program. The interim credential may signify that an apprentice has 
successfully attained competency milestones within an occupation deemed 
suitable for registered apprenticeship training, usually as a part of a 
career pathway, sequence, or progression towards the attainment of more 
advanced competencies and credentials in that occupation.
    Intermediary means an entity that assists in the provision, 
coordination, or support of a registered apprenticeship program.
    Journeyworker means an experienced worker who has attained 
proficiency in the skills and competencies required in an industry or 
occupation.
    Local educational agency (LEA) has the meaning given the term in 
section 8101 of the Elementary and Secondary Education Act of 1965.

[[Page 3274]]

    Local registration means registration of an apprenticeship program 
for Federal purposes by a Registration Agency within a particular 
State.
    Major life activities include, but are not limited to: Caring for 
oneself, performing manual tasks, seeing, hearing, eating, sleeping, 
walking, standing, sitting, reaching, lifting, bending, speaking, 
breathing, learning, reading, concentrating, thinking, communicating, 
interacting with others, and working. A major life activity also 
includes the operation of a major bodily function, including but not 
limited to: functions of the immune system, special sense organs and 
skin; normal cell growth; and digestive, genitourinary, bowel, bladder, 
neurological, brain, respiratory, circulatory, cardiovascular, 
endocrine, hemic, lymphatic, musculoskeletal, and reproductive 
functions. The operation of a major bodily function includes the 
operation of an individual organ within a body system.
    National Apprenticeship System means the coordinated efforts of OA, 
of SAAs recognized by OA, of registered apprenticeship programs and 
registered CTE apprenticeship programs that have been approved by 
Registration Agencies, and of employers, labor unions, business 
organizations, trade and industry groups, educational institutions, 
intermediaries, pre-apprenticeship programs, and other stakeholders 
across the United States in implementing the minimum labor standards 
and EEO requirements for apprenticeship of this part and part 30 of 
this title.
    National Guidelines for Apprenticeship Standards means a template 
of apprenticeship program standards developed by a labor union, trade 
or industry association, or other organization with national scope and 
industry expertise that are recognized by OA for the purposes of being 
adapted by affiliated sponsors for local or national registration.
    National Occupational Standards for Apprenticeship means a 
universally available template of nationally applicable, high-quality 
standards of apprenticeship (and related work process schedules) 
developed by industry stakeholders convened by OA and approved by the 
Administrator for occupations considered suitable for registered 
apprenticeship training.
    National Program Standards for Apprenticeship means a set of 
standards of apprenticeship developed and adopted by a program sponsor 
that are registered on a nationwide basis by OA and are entitled to 
reciprocity of registration.
    Non-compete provision means a term in the apprenticeship agreement 
or other agreement between an employer or sponsor and an apprentice 
that prohibits the apprentice from seeking or accepting employment with 
another employer during the registered apprenticeship program or 
registered CTE apprenticeship program.
    Office of Apprenticeship (OA) means the office within the 
Department's Employment and Training Administration that has been 
designated by the Secretary to administer the National Apprenticeship 
System or its successor organization.
    On-the-job training means an organized and systematic form of 
training conducted at a workplace or job site that is designed to 
provide the apprentice with the hands-on knowledge, skills, techniques, 
and competencies that are necessary to achieve proficiency in an 
occupation.
    Participating employer means an employer that employs at least one 
apprentice and that either:
    (1) Participates in a registered apprenticeship program sponsored 
by a joint labor-management apprenticeship and training program 
established pursuant to a collective bargaining agreement, and under 
which the employer has adopted the sponsor's standards of 
apprenticeship and serves as the employer of record for at least one 
apprentice enrolled in the sponsor's program; or
    (2) Is a party to a written program standards adoption agreement 
with a registered apprenticeship program sponsor that is concluded 
outside of a collective bargaining process, and under which the 
employer has adopted the sponsor's standards of apprenticeship and 
serves as the employer of record for apprentices enrolled in the 
sponsor's program.
    Physical or mental impairment means:
    (1) Any physiological disorder or condition, cosmetic 
disfigurement, or anatomical loss affecting one or more body systems, 
such as neurological, musculoskeletal, special sense organs, 
respiratory (including speech organs), cardiovascular, reproductive, 
digestive, genitourinary, immune, circulatory, hemic, lymphatic, skin, 
and endocrine; or
    (2) Any mental or psychological disorder, such as intellectual 
disability (formerly termed ``mental retardation''), organic brain 
syndrome, emotional or mental illness, and specific learning 
disabilities.
    Pre-apprenticeship program means a structured education and 
workplace training program that maintains a documented partnership with 
at least one registered apprenticeship program, is designed to support 
access and equitable participation in apprenticeship programs by 
providing individuals who do not currently possess the minimum 
qualifications for admission into a registered apprenticeship program 
or registered CTE apprenticeship with the foundational knowledge and 
skills needed to gain acceptance into, and succeed in, a registered 
program, and provides participants with a hands-on introduction to the 
competencies and techniques used in one or more occupations that are 
suitable for registered apprenticeship training, with access to 
educational and career counseling and other supportive services, and 
may include opportunities to earn industry-recognized credentials.
    Proficiency means, for purposes of subpart A of this part, the 
demonstrated, measurable attainment by an apprentice of each of the 
relevant job skills and competencies that are necessary to perform 
successfully at the journeyworker level in a given occupation.
    Program review means an administrative review of a registered 
apprenticeship program that is conducted by a Registration Agency to 
assess the program's compliance with the requirements of this part and 
of part 30 of this title.
    Program standards adoption agreement means a written agreement 
executed outside of a collective bargaining process in which a 
participating employer agrees to adopt and utilize a set of 
apprenticeship program standards for the employment and training of 
apprentices that were developed by a program sponsor and registered by 
a Registration Agency.
    Provisional registration means the initial provisional approval of 
programs that meet the required standards for program registration, 
after which the program approval may be made permanent, continued as 
provisional, or deregistered following a program review by the 
Registration Agency, as provided for in this part.
    Qualified applicant or qualified apprentice, for purposes of part 
30, is an individual who, with or without reasonable accommodation, can 
perform the essential functions of the registered apprenticeship 
program for which the individual applied or is enrolled.
    Race, for purposes of recordkeeping and affirmative action, has the 
same meaning as under the Office of Management and Budget's Standards 
for the Classification of Federal Data on Race and Ethnicity, or any 
successor

[[Page 3275]]

standards. Race thus refers to the following designations:
    (1) White--A person having origins in any of the original peoples 
of Europe, the Middle East, or North Africa.
    (2) Black or African American--A person having origins in any of 
the black racial groups of Africa.
    (3) Native Hawaiian or Other Pacific Islander--A person having 
origins in any of the peoples of Hawaii, Guam, Samoa, or other Pacific 
Islands.
    (4) Asian--A person having origins in any of the original peoples 
of the Far East, Southeast Asia, or the Indian Subcontinent including, 
for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, 
the Philippine Islands, Thailand, and Vietnam.
    (5) American Indian or Alaska Native--A person having origins in 
any of the original peoples of North and South America (including 
Central America), and who maintains Tribal affiliation or community 
attachment.
    Reasonable accommodation--(1) The term reasonable accommodation 
means:
    (i) Modifications or adjustments to a job application process that 
enable a qualified applicant with a disability to be considered for the 
position such qualified applicant desires;
    (ii) Modifications or adjustments to the work environment, or to 
the manner or circumstances under which the position held or desired is 
customarily performed, that enable a qualified individual with a 
disability to perform the essential functions of that position; or
    (iii) Modifications or adjustments that enable a sponsor's 
apprentice with a disability to enjoy equal benefits and privileges of 
apprenticeship as are enjoyed by the sponsor's other similarly situated 
apprentices without disabilities.
    (2) Reasonable accommodation may include but is not limited to:
    (i) Making existing facilities used by apprentices readily 
accessible to and usable by individuals with disabilities; and
    (ii) Job restructuring; part-time or modified work schedules; 
reassignment to a vacant position; acquisition or modifications of 
equipment or devices; appropriate adjustment or modifications of 
examinations, training materials, or policies; the provision of 
qualified readers or interpreters; and other similar accommodations for 
individuals with disabilities.
    (3) To determine the appropriate reasonable accommodation, it may 
be necessary for the sponsor to initiate an informal, interactive 
process with the qualified individual in need of the accommodation. 
This process should identify the precise limitations resulting from the 
disability and potential reasonable accommodations that could overcome 
those limitations.
    Reciprocity of registration means the provision of local 
registration status by an SAA in that State for an apprenticeship 
program registered by another Registration Agency.
    Recognized postsecondary credential means a credential consisting 
of an industry-recognized certificate or certification, a license 
recognized by the State involved or Federal Government, or an associate 
or baccalaureate degree.
    Registered apprenticeship program means a structured apprenticeship 
program registered by a Registration Agency under subpart A of this 
part that comprises a paid, supervised on-the-job training component 
and a related instruction component conveying relevant theoretical and 
technical knowledge, and may include a program that is eligible for 
student assistance under title IV of the Higher Education Act of 1965, 
as amended.
    Registered CTE apprenticeship program means a structured, 
integrated educational and career training program that admits students 
who have signed a CTE apprenticeship agreement (or that a student's 
parent or guardian has signed if the student is a minor) that is 
approved by the Registration Agency under subpart B of this part. Such 
a program integrates paid, on-the-job training in an industry or 
occupation suitable for registered CTE apprenticeship training with CTE 
apprenticeship-related instruction in subjects offered by an education 
institution that is a Perkins-eligible recipient, and also provides 
successful program completers with a certificate of completion of 
registered CTE apprenticeship, credit hours towards a postsecondary 
degree program, and as applicable a high school diploma or equivalency, 
and advanced standing in a registered apprenticeship program under 
subpart A.
    Registration Agency means a governmental agency, which may be 
either OA or an SAA recognized by OA, that has responsibility for 
registering and overseeing apprenticeship programs and apprentices; 
providing technical assistance; and conducting program reviews for 
compliance with this part and part 30 of this title.
    Related instruction means an organized and systematic form of 
instruction designed to provide the apprentice with the knowledge of 
the theoretical and technical subjects related to the apprentice's 
occupation. Such instruction may be given in a classroom, through 
occupational or industrial courses, or by correspondence courses of 
equivalent value, electronic media, or other forms of self-study 
approved by the Registration Agency.
    Secretary means the U.S. Secretary of Labor or any official of the 
Department designated by the Secretary.
    Selection procedure means any measure, combination of measures, or 
procedure used as a basis for any decision in apprenticeship. Selection 
procedures include the full range of assessment techniques, including: 
traditional paper and pencil tests; performance tests; training 
programs; probationary periods; physical, educational, and work 
experience requirements; informal or casual interviews; and unscored 
application forms.
    Sponsor means any person, employer, association, committee, 
intermediary, or organization that operates and administers an 
apprenticeship program in whose name that program is registered by a 
Registration Agency.
    Standards of apprenticeship means an organized, written plan 
embodying the terms and conditions of employment, training, and 
supervision of one or more apprentices in a registered apprenticeship 
program.
    State means any of the 50 States of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, or outlying area of the 
United States as defined in the Workforce Innovation and Opportunity 
Act (WIOA), Pub. L. 113-128, 128 Stat. 1425 (2014), sec. 3.
    State Apprenticeship Agency (SAA) means an agency of a State 
government that has responsibility and accountability for registered 
apprenticeship programs within the State. Only a State government 
agency may seek recognition by OA as an agency that has been properly 
constituted under an applicable State legal authority and is authorized 
by OA to register and oversee apprenticeship programs and agreements 
for Federal purposes.
    State Apprenticeship Council is an entity established to assist the 
SAA. A State Apprenticeship Council is ineligible for recognition as 
the State's Registration Agency and may only operate in an advisory 
capacity. The State Apprenticeship Council provides nonbinding advice 
and guidance to the SAA on the operation of the State's system of 
registered apprenticeship.
    State Apprenticeship Plan means a strategic and operational plan 
that is a State's application for recognition as an SAA and 4-year 
strategy for the State's system of registered apprenticeship.
    State CTE Agency means a State board designated or created 
consistent with

[[Page 3276]]

State law as the sole State government agency responsible for the 
administration of CTE in the State or for the supervision of the 
administration of CTE in the State pursuant to 20 U.S.C. 2302(18), or 
another State government agency delegated the authority by such State 
board to administer Perkins.
    Supportive services means services such as transportation, 
childcare, dependent care, housing, and needs-related payments that are 
necessary to enable an individual to participate and succeed in 
registered apprenticeship and CTE apprenticeship.
    Technical assistance means guidance and support provided by 
Registration Agency staff in the development, revision, amendment, or 
processing of a potential or current program sponsor's standards of 
apprenticeship or apprenticeship agreements, or advice or consultation 
with a program sponsor to further compliance with this part or with 
guidance from OA to an SAA on how to satisfy the requirements of this 
part and part 30 of this title.
    Transfer means a shift of apprenticeship registration from one 
program to another or from one employer within a program to another 
employer within that same program, where there is agreement between the 
apprentice and the affected apprenticeship committee or program 
sponsors.
    Underserved communities means persons from historically 
marginalized communities or populations, including geographic 
communities, that have been adversely affected by persistent 
discrimination, inequality, or poverty, including but not limited to: 
women; persons of color (including Black, Latino, Indigenous and Native 
American persons, and Asian Americans, Native Hawaiians, and Pacific 
Islanders); individuals with disabilities; persons adhering to 
particular religious beliefs or practices; veterans and military 
spouses; lesbian, gay, bisexual, transgender, queer, gender 
nonconforming, and nonbinary persons; and individuals with barriers to 
employment, as defined in WIOA sec. 3(24).
    Undue hardship--(1) In general. Undue hardship means, with respect 
to the provision of an accommodation, significant difficulty or expense 
incurred by a sponsor, when considered in light of the factors set 
forth in paragraph (2) of this definition.
    (2) Factors to be considered. In determining whether an 
accommodation would impose an undue hardship on a sponsor, factors to 
be considered include:
    (i) The nature and net cost of the accommodation needed under this 
part, taking into consideration the availability of tax credits and 
deductions, outside funding, or both;
    (ii) The overall financial resources of the facility or facilities 
involved in the provision of the reasonable accommodation, the number 
of persons employed at such facility, and the effect on expenses and 
resources;
    (iii) The overall financial resources of the sponsor, the overall 
size of the registered apprenticeship program with respect to the 
number of apprentices, and the number, type, and location of its 
facilities;
    (iv) The type of operation or operations of the sponsor, including 
the composition, structure, and functions of the workforce of such 
entity, and the geographic separateness and administrative or fiscal 
relationship of the facility or facilities in question to the sponsor; 
and
    (v) The impact of the accommodation upon the operation of the 
facility, including the impact on the ability of other apprentices to 
perform their duties and the impact on the facility's ability to 
conduct business.
    Work process schedule means a training plan for the on-the-job 
component of a registered apprenticeship program that outlines a 
sequence of measurable competency benchmarks for the job-related skills 
whose cumulative acquisition by an apprentice over the course of the 
apprenticeship term leads to the attainment of occupational 
proficiency.


Sec.  29.3  Office of Apprenticeship.

    The Secretary will establish and maintain an Office of 
Apprenticeship (or any successor office or agency so designated by the 
Secretary) within the Department to facilitate the administration and 
coordination of the National Apprenticeship System, including:
    (a) Formulate and update regulations, subregulatory guidance, 
policies, and procedures in connection with the implementation of the 
National Apprenticeship Act of 1937 (29 U.S.C. 50);
    (b) Register and provide oversight of apprenticeship programs and 
standards that satisfy the requirements of this part and of part 30 of 
this title;
    (c) Promote the development of industry-validated standards, 
including the determination of occupations suitable for registered 
apprenticeship, the development and adoption of National Occupational 
Standards for Apprenticeship, as well as industry skills frameworks;
    (d) Recognize and oversee SAAs established under applicable State 
laws and regulations that satisfy the requirements of this part and of 
part 30 of this title;
    (e) Maintain, utilize, and make publicly available National 
Apprenticeship System data pertaining to apprentices and apprenticeship 
programs that are registered by either OA or by SAAs and satisfy the 
requirements of this part and of part 30 of this title;
    (f) Promote diversity, equity, inclusion, and accessibility in 
apprenticeship, including for those from underserved communities, and, 
consistent with part 30 of this title, enforce equal opportunity 
standards for apprentices and applicants;
    (g) Provide technical assistance to apprenticeship program 
sponsors, SAAs, and other key stakeholders in the development of 
apprenticeship program standards and the operation of apprenticeship 
programs to satisfy the requirements of this part and of part 30 of 
this title;
    (h) Engage in discussions with stakeholders, including multilateral 
institutions, businesses, and nongovernmental organizations in order to 
promote and facilitate the development and expansion of apprenticeships 
in the United States; and develop partnerships with apprenticeship 
stakeholders that can facilitate and accelerate the expansion of 
quality apprenticeship programs across the National Apprenticeship 
System in accordance with the requirements of this part and of part 30 
of this title; and
    (i) Conduct other activities that support the National 
Apprenticeship System.


Sec.  29.4  Relation to other laws and agreements.

    (a) Relation to other laws. No provision in this part will 
supersede or invalidate any other Federal, State, or local law 
establishing minimum labor standards of apprenticeship that are higher 
or more protective of apprentices than those established in this part.
    (b) Relation to other agreements. No provision in this part or in 
any apprenticeship agreement will invalidate any apprenticeship 
provision in any collective bargaining agreement between employers and 
employees establishing minimum labor standards applicable to a 
registered apprenticeship program that are higher or more protective of 
apprentices than those established in this part.

[[Page 3277]]

Sec.  29.5  Severability.

    Should a court of competent jurisdiction hold any portion of any 
provision(s) of this part to be invalid, the provision will be 
construed so as to continue to give the maximum effect to the provision 
permitted by law, unless such holding is one of total invalidity or 
unenforceability, in which event the provision or subprovision will be 
severable from this part and will not affect the remainder thereof.


Sec.  29.6  Transition provisions.

    (a) With respect to suitability of occupations for registered 
apprenticeship:
    (1) Section 29.7 is in effect for occupations not previously 
determined suitable for registered apprenticeship by the Administrator 
90 days following the effective date of this rule.
    (2) Section 29.7 is in effect for occupations not previously 
determined suitable for registered apprenticeship by an SAA upon the 
effective date of this rule.
    (3) Occupations recognized by OA as apprenticeable under former 
Sec.  29.4 (Criteria for apprenticeable occupations) as of the day 
before the effective date of this rule will be subject to the 5-year 
review of all occupations pursuant to Sec.  29.7(h).
    (b) Programs not previously registered by OA as of the day before 
the effective date of this rule must seek registration based on the 
requirements of subpart A of this part when an electronic submission 
process is available to sponsors. Programs registered prior to the 
development of an electronic submission process must meet all new 
requirements before converting to permanent registration status.
    (c) Programs registered by OA prior to the effective date of this 
rule must comply with the requirements of subpart A of this part no 
later than 2 years after the effective date of this rule.
    (d) SAAs recognized by the Administrator as of the effective date 
of this rule will continue to be recognized until December 31, 2026.
    (1) SAAs must ensure any programs registered prior to the approval 
of the State Apprenticeship Plan are registered consistent with the 
approved State Apprenticeship Plan, within 2 years of the approval date 
of the State Apprenticeship Plan. Programs registered after the 
effective date of this rule should be registered provisionally and 
remain in provisional status until the State Apprenticeship Plan is 
approved and the program is compliant with its requirements.
    (2) SAA-specific occupations must be determined suitable for 
registered apprenticeship by the Administrator under Sec.  29.7 within 
4 years of the effective date of this rule in order for registered 
apprenticeship programs registered by the SAA to continue being 
registered for Federal purposes.
    (e) SAAs not previously recognized by the Administrator as of the 
effective date of this rule must seek recognition under the procedures 
of Sec.  29.27 upon the effective date of this rule.

Subpart A--Standards for Registered Apprenticeship Programs


Sec.  29.7  Occupations suitable for registered apprenticeship.

    (a) Only the Administrator can determine whether an occupation is 
suitable for registered apprenticeship. Occupations determined suitable 
for registered apprenticeship will be eligible for local registration 
for Federal purposes by a Registration Agency.
    (b) The following minimum requirements must be met for the 
Administrator to determine that an occupation is suitable:
    (1) The occupation under consideration is commonly recognized or 
accepted throughout a particular industry or sector as a standalone, 
distinct occupation;
    (2) The occupation leads to a sustainable career;
    (3) A structured on-the-job apprenticeship training program will 
enable an apprentice to be able to acquire the knowledge, skills, 
techniques, and competencies necessary to become proficient in the 
occupation; and
    (4) The completion of at least 2,000 hours of on-the-job training 
and not less than a minimum average of 144 hours of off-the-job related 
instruction for every 2,000 hours of on-the-job training in order to 
obtain proficiency in the occupation.
    (c) A current or potential program sponsor, SAA, or other entity 
seeking a new determination from the Administrator as to whether an 
occupation is suitable for registered apprenticeship must submit 
electronically the following information to the Administrator:
    (1) Documentation sufficient to show that each of the requirements 
at paragraphs (b)(1) through (4) of this section are met;
    (2) A work process schedule and an explanation of how the skills, 
techniques, and competencies detailed in the work process schedule will 
lead to proficiency in the occupation through a structured on-the-job 
apprenticeship training program;
    (3) Documentation of the industry standard for the minimum number 
of hours of on-the-job training needed in order to obtain proficiency 
in the occupation under consideration. The minimum number of hours must 
involve the completion of at least 2,000 hours of on-the-job training;
    (4) A related instruction outline and an explanation based on 
industry standards describing the proposed curriculum and the number of 
hours of such instruction, which cannot be less than an average of 144 
hours in duration for every 2,000 hours of on-the-job training 
provided; and
    (5) Documentation of any interim credentials, recognized 
postsecondary credentials, or occupational licenses related to the 
occupation and whether they are optional or may be required to be 
obtained during an apprenticeship program in the occupation.
    (d) The Administrator will solicit public comment to assess whether 
the submission described in paragraph (c) of this section constitutes 
an occupation suitable for registered apprenticeship. Such 
solicitations will be made available for public comment for at least 30 
days. A determination regarding the occupation will be made within 90 
days after a complete application is received, though the Administrator 
may extend this period by providing notice to the applicant. The 
Administrator may also consider data or request additional information 
from the applicant, at the Administrator's discretion. The 
Administrator will maintain an up-to-date publicly available list of 
all suitability determinations.
    (e) An occupation will not be approved as suitable for registered 
apprenticeship training in instances where the Administrator determines 
that:
    (1) The application is incomplete;
    (2) Any of the requirements set forth at paragraphs (b)(1) through 
(4) of this section are not met;
    (3) The proposed scope of the apprenticeship training is confined 
to a narrowly specialized subset of skills and competencies within an 
existing occupation that are not readily transferable between employers 
in the sector; or
    (4) The occupation includes or replicates a significant proportion 
of the work processes that are covered by another occupation that OA 
previously approved as suitable for registered apprenticeship training, 
but does not lead to a more advanced occupation.
    (f) In instances where the Administrator determines, pursuant to 
paragraph (c) of this section, that the occupation under consideration 
is not one that is suitable for registered apprenticeship training, the

[[Page 3278]]

Administrator will provide to the applicant a written explanation for 
the unfavorable decision.
    (g) A current sponsor or potential sponsor, SAA, or other entity 
must submit proposed adjustments to the existing scope, minimum 
duration, or work processes of an occupation previously deemed suitable 
for registered apprenticeship training by the Administrator. Such 
adjustments may be accepted by the Administrator provided that they 
satisfy the requirements established in this section.
    (h) The Administrator will, consistent with the process described 
in paragraph (d) of this section, periodically review the continued 
suitability, relevance, and applicability of the work process schedule 
and related instruction outline associated with an occupation 
previously approved as suitable for registered apprenticeship training. 
Based on its review the Administrator will determine whether the 
occupation remains suitable for registered apprenticeship or requires 
adjustments to the previously approved work process schedule and 
related instruction outline. Such a review will occur at least every 5 
years. If revisions to work process schedules or related instruction 
outlines are made during this process, existing programs must update 
their work process schedules or related instruction outlines to align 
with the changes before the start of the next training cycle.


Sec.  29.8  Standards of apprenticeship.

    (a) Each registered apprenticeship program must have a written set 
of standards of apprenticeship that will govern the conduct and 
operation of that program; such standards must include the following 
provisions:
    (1) The minimum eligibility requirements for entry into the 
registered apprenticeship program, including a minimum starting age for 
an apprentice of not less than 16 years except where a higher minimum 
age requirement is otherwise required by Federal, State, or local law;
    (2) The sponsor's procedures for the selection of apprentices, 
which must comply with the requirements for the selection of 
apprentices set forth in part 30 of this title;
    (3) The sponsor's relevant recruitment area for the selection of 
apprentices;
    (4) The term of the apprenticeship program, which must be 
sufficient for an apprentice to attain proficiency in all of the 
knowledge, skills, techniques, and competencies that are relevant to 
the covered occupation(s). The sponsor must include:
    (i) A term of paid on-the-job training that reflects the customary 
industry standard for acquiring technical proficiency in the 
occupation, which in no instance can be less than 2,000 hours in 
duration; and
    (ii) A number of hours of related instruction that reflects the 
customary industry standard, but is not less than a minimum average of 
144 hours of related instruction for every 2,000 hours of on-the-job 
training.
    (5) The registered apprenticeship program's covered occupation(s), 
work process schedule(s), and related instruction outline(s);
    (6) The related instruction provider(s) and the instructional 
methods used to deliver the related instruction;
    (7) Documentation that the qualifications and experience of the 
trainers and instructors that provide on-the-job training and related 
instruction to apprentices satisfy the requirements described in Sec.  
29.12;
    (8) A description of:
    (i) Any interim credential issued to an apprentice by the program 
during the term of the apprenticeship;
    (ii) Any industry-portable occupational qualification, license, 
degree, or certification that the apprentice will receive, or will be 
eligible to receive, upon the successful completion of the registered 
apprenticeship program; and
    (iii) Any postsecondary credit that an apprentice may receive, or 
may be eligible to receive, upon their successful completion of the 
related instruction and on-the-job training components of the 
registered apprenticeship program.
    (9) A statement as to whether time the apprentice spends in the 
related instruction component of the apprenticeship training will be 
counted as hours worked, and if so, what the wage rate and fringe 
benefits will be for those hours;
    (10) The process for regularly assessing and providing feedback to 
the apprentice regarding the apprentice's acquisition of job-related 
knowledge, skills, and competencies during the on-the-job training 
component of the registered apprenticeship program. In those instances 
where an apprentice attains such occupational skills and competencies 
at an accelerated pace, the program may grant advanced standing to such 
an individual pursuant to paragraph (a)(20) of this section;
    (11) The end-point assessment process for certifying the 
apprentice's successful attainment of all of the knowledge, skills, and 
competencies necessary for proficiency in the occupation at the 
conclusion of the term of the registered apprenticeship program;
    (12) A probationary period that is reasonable in relation to the 
program's full apprenticeship term and that must be credited toward the 
completion of the registered apprenticeship program. However, in no 
event will the duration of the probationary period exceed 25 percent of 
the total length of the program, or 1 year, whichever is shorter;
    (13) A statement that the registered apprenticeship program will be 
conducted in accordance with all applicable Federal, State, or local 
laws;
    (14) A statement acknowledging that apprentices will be entitled to 
the same worker allowances, rights, and protections that are afforded 
by applicable Federal, State, or local laws to similarly situated, non-
apprentice employees, including but not limited to: family and medical 
leave, workers' compensation, and health and retirement plan benefits;
    (15) An attestation by the sponsor, supported by any available 
documentation, that the program will provide adequate, safe, and 
accessible facilities and equipment for the training and supervision of 
apprentices that are compliant with all applicable Federal, State, and 
local disability, occupational safety, and occupational health laws;
    (16) An attestation by the sponsor that the program will provide 
adequate, industry-recognized safety training for apprentices in both 
their on-the-job training and related instruction;
    (17) The wage(s) and fringe benefits that the apprentice will 
receive from the employer sponsoring or participating in the registered 
apprenticeship program, which must meet the following requirements:
    (i) The entry wage is not less than the minimum wage prescribed by 
the Fair Labor Standards Act, where applicable, unless a higher wage is 
required by other applicable Federal law, State or local law, or by the 
terms of an applicable collective bargaining agreement;
    (ii) A graduated schedule of increasing wages, from the entry wage 
to the journeyworker wage, that:
    (A) Reflects the progressive and measurable acquisition of relevant 
occupational skills and competencies by the apprentice, except where a 
different graduated schedule of increasing wages is required by other 
applicable Federal, State, or local laws (including those governing the 
payment of prevailing wages), or by the terms of an applicable 
collective bargaining agreement;
    (B) Includes at least one incremental wage step increase during the 
first 2,000 hours of the registered apprenticeship

[[Page 3279]]

program, with additional wage step increments scheduled at reasonable 
intervals for program terms of longer duration designed to support 
apprentices' progression and success throughout their apprenticeship, 
except where a different schedule of incremental wage step increases is 
required by the terms of an applicable collective bargaining agreement; 
and
    (C) The final wage in the program must be at least 75 percent of 
the journeyworker wage paid by the employer for that occupation, except 
where the graduated schedule of increasing wages is required by other 
applicable Federal, State, or local laws or by the terms of an 
applicable collective bargaining agreement.
    (18) The approximate amount of any unreimbursed costs, expenses, or 
fees that the apprentice may incur during the registered apprenticeship 
program. Any such costs, expenses, or fees charged by the sponsor:
    (i) Must be necessary and reasonable;
    (ii) Must not impose substantial or inequitable financial barriers 
to program enrollment or to completion of the program; and
    (iii) Must comply with all applicable Federal, State, and local 
wage laws and regulations, including but not limited to the Fair Labor 
Standards Act, the Davis-Bacon and related Acts, and the McNamara-
O'Hara Service Contract Act, and the implementing regulations for such 
laws.
    (19) The program's specific numeric ratio of apprentices to 
journeyworkers.
    (i) The ratio must be consistent with the proper safety, health, 
supervision, and training of the apprentice.
    (ii) A sponsor must use a ratio that is:
    (A) Consistent with the provisions of any applicable collective 
bargaining agreements, as well as any applicable Federal and State laws 
governing such ratios; and
    (B) Specific and clearly described as to its application to a 
particular workforce, workplace, worksite, job site, department, or 
plant.
    (20) The process by which the sponsor will reduce the usual term of 
on-the-job training or related instruction as a result of an 
apprentice's prior learning, training, or acquired experience, or as a 
result of accelerated progress in the attainment of occupational 
competencies that is made by an apprentice during their participation 
in the registered apprenticeship program. Such process must:
    (i) Involve a fair, transparent, and equitable process for 
objectively identifying, assessing, and documenting an apprentice's 
prior learning, training, or acquired experience, as well as for 
measuring any accelerated progress in the attainment of occupational 
competencies in the sponsor's registered apprenticeship program; and
    (ii) Result in advanced standing or credit and an increased wage 
for an apprentice that is commensurate with any progression granted by 
the sponsor.
    (21) If applicable, a provision for the transfer of apprentices 
between registered apprenticeship programs involving the same 
occupation. The transfer must be agreed to by the apprentice and the 
affected program sponsors or apprenticeship committees, and must meet 
the following requirements:
    (i) Both the transferring apprentice and the program to which the 
apprentice is transferring must be provided a documentation of the 
apprentice's accrued related instruction and on-the-job training from 
the originating program sponsor or committee;
    (ii) The transfer must be to the same occupation; and
    (iii) A new apprenticeship agreement between the apprentice and the 
incoming program sponsor or committee must be executed after the 
transfer is executed.
    (22) A requirement that the program sponsor and any participating 
employers create and maintain all records concerning apprenticeship 
that are detailed at section Sec.  29.18;
    (23) The sponsor's Equal Opportunity Pledge, pursuant to Sec.  
30.3(c) of this title, as well as an attestation that the program will 
be operated in accordance with the provisions of part 30 of this title 
and, where applicable, an approved State EEO plan;
    (24) An attestation that the program sponsor (as well as any 
participating employers in the sponsor's program) will implement 
effective measures to promote and maintain a safe and inclusive 
workplace environment that is free from all forms of violence, 
harassment, intimidation, and retaliation against apprentices;
    (25) For apprenticeship programs that were registered on or after 
September 22, 2020, an attestation that the program sponsor will 
provide each of the written assurances required under section 2(b)(1) 
of the Support for Veterans in Effective Apprenticeships Act of 2019 
(Pub. L. 116-134, 134 Stat. 277, 29 U.S.C. 50c); and
    (26) Contact information (name, address, telephone number, and 
email address) for the appropriate individual with authority under the 
program to receive, process, and make disposition of complaints.
    (b) In instances where a registered apprenticeship program provides 
training to apprentices who are employed by participating employers in 
a group program (pursuant to a collective bargaining agreement, or to a 
program standards adoption agreement described in Sec.  29.11), the 
sponsor will be responsible for:
    (1) Obtaining an attestation that the participating employer agrees 
to abide by the requirements contained in this part and in part 30 of 
this title prior to the admission of the participating employer to the 
program;
    (2) Obtaining a disclosure in writing of all instances where a 
Federal, State, or local government agency has issued a final agency 
determination that the participating employer (or any of its officers 
or employees) has violated any applicable laws pertaining to 
occupational safety and health, labor standards (including wage and 
hour requirements), financial mismanagement or abuse, EEO, protections 
for employees against harassment or assault, or other applicable laws 
governing workplace practices or conduct, prior to the admission of the 
participating employer to the program; such disclosure must include a 
description of the violation, as well as the actions taken by the 
employer to remedy the violation; and
    (3) Actively monitoring each participating employer after their 
admission to the group program to assess whether such an employer is 
adhering to both the minimum standards of apprenticeship outlined in 
this section and the applicable regulatory requirements for registered 
apprenticeship programs set forth in this part and in part 30 of this 
title.


Sec.  29.9  Apprenticeship agreements.

    (a) All apprenticeship programs registered by a Registration Agency 
must develop and establish a written apprenticeship agreement that 
contains the terms and conditions of the employment and training of the 
apprentice. Such agreement must be signed prior to the start of an 
apprenticeship term by:
    (1) The apprentice;
    (2) The apprentice's parent or legal guardian, if the apprentice is 
under 18 years of age;
    (3) The program sponsor; and
    (4) Any participating employers in the program that have adopted 
the sponsor's standards of apprenticeship through a program standards 
adoption agreement.
    (b) Prior to signing the apprenticeship agreement, an apprentice 
who has been admitted to the apprenticeship program must be furnished 
by the program

[[Page 3280]]

sponsor with a copy of both the proposed apprenticeship agreement and 
the program's standards of apprenticeship, and must also be provided 
with a reasonable opportunity to inspect and review the content of 
those documents. After the apprenticeship agreement has been signed by 
the apprentice, the sponsor, and any other relevant parties, the 
sponsor must transmit or deliver to the apprentice a copy of the 
executed apprenticeship agreement and the program's standards of 
apprenticeship not later than the starting date of the apprenticeship.
    (c) At a minimum, the apprenticeship agreement must contain the 
following:
    (1) Contact information and identifying information for the 
apprentice, including the apprentice's date of birth and, on a 
voluntary basis, their Social Security number;
    (2) Contact information for the Registration Agency, program 
sponsor, and participating employer(s);
    (3) An identification of the occupation in which the apprentice is 
to be trained, as well as copies of the associated work process 
schedule and related instruction outline;
    (4) The incorporation, either directly or by reference, of the 
program's standards of apprenticeship;
    (5) A description of the respective roles, duties, and 
responsibilities of the apprentice, the program sponsor, and the 
participating employer, if applicable, during the registered 
apprenticeship program. With respect to sponsors and participating 
employers, these responsibilities must include providing information to 
apprentices regarding their rights and protections under Federal, 
State, and local laws, including their right to file complaints with 
the applicable Registration Agency and the process for doing so;
    (6) The term of the registered apprenticeship program, including 
the beginning date and expected duration of the registered 
apprenticeship program, the beginning date of the on-the-job training, 
and the duration of the probationary period for the apprenticeship 
program;
    (7) A detailed statement of the entry wage, subsequent graduated 
scale of increasing wages to be paid to the apprentice over the term of 
the apprenticeship, the journeyworker wage, and any fringe benefits;
    (8) A disclosure of the expected minimum number of hours that are 
allocated by the program to the on-the-job training component during 
the apprenticeship term, and to the related instruction component of 
the apprenticeship during that term;
    (9) A description of the methods used during the course of the 
apprenticeship to measure progress on competency attainment and the 
program's end-point assessment;
    (10) A description of any supportive services that may be available 
to the apprentice including childcare, transportation, equipment, 
tools, or any other supportive service provided by the sponsor or a 
partnering organization to address potential barriers to participation 
or completion;
    (11) The nature and amount of any unreimbursed costs, expenses, or 
fees that the apprentice may incur during their participation in the 
registered apprenticeship program;
    (12) A description of any recognized postsecondary credits, 
credentials, and occupational qualifications that the apprentice will 
receive or be eligible to receive upon successful program completion, 
as well as a description of any additional conditions or requirements 
that the apprentice must fulfill to satisfy any applicable Federal, 
State, or local qualification and licensure requirements to engage in 
the occupation;
    (13) A statement by the parties to the agreement that they will 
adhere to the applicable requirements of part 30 of this title and, 
where applicable, an approved State EEO plan;
    (14) A statement addressing:
    (i) Whether the apprentice is paid wages and fringe benefits during 
the related instruction component of the program;
    (ii) If wages are paid for related instruction, what the wage rate 
is; and
    (iii) Whether the related instruction is provided during work 
hours.
    (15) Contact information (name, address, phone, and email if 
appropriate) of the appropriate authority designated under the program 
to receive, process, and make disposition of controversies or disputes 
arising out of the apprenticeship agreement when the controversies or 
disputes cannot be addressed locally or resolved in accordance with the 
established procedure or applicable collective bargaining provisions; 
and
    (16) A description of the processes and procedures for granting 
advanced standing or credit consistent with the requirements of Sec.  
29.8(a)(20).
    (d) A registered apprenticeship program sponsor, or a participating 
employer in the sponsor's program, cannot include in the apprenticeship 
agreement or otherwise impose on apprentices a non-compete provision or 
other provision restricting the apprentice's ability to compete 
directly with the program sponsor or participating employer or to seek 
or accept employment with another employer prior to the completion of 
the registered apprenticeship program.
    (e) A registered apprenticeship program sponsor, or a participating 
employer in the sponsor's program, cannot include in the apprenticeship 
agreement or otherwise impose on apprentices a non-disclosure provision 
that prevents the worker from working in the same field after the 
conclusion of the worker's employment with the employer, or that 
restricts an apprentice's ability to file a complaint with a 
Registration Agency or other governmental body concerning possible 
violations of this part or of part 30 of this title. Subject to these 
restrictions, a sponsor or participating employer may include a non-
disclosure provision that relates to the protection of the sponsor's or 
participating employer's confidential business information or trade 
secrets.
    (f) The program sponsor must submit a completed copy of the 
executed apprenticeship agreement for each apprentice registered, to 
the program's Registration Agency within 30 days of execution.
    (g) The apprenticeship agreement may be cancelled during the 
probationary period specified in the agreement by either party without 
cause.
    (h) After the probationary period of the apprenticeship concludes, 
the apprenticeship agreement:
    (1) May be cancelled at the request of the apprentice at any time; 
or
    (2) May be suspended or cancelled by the program sponsor only for 
good cause. When cancelling an agreement, the sponsor must provide 
written notice to the apprentice explaining the cause for the 
cancellation and must provide written notice to the Registration Agency 
of the cancellation.


Sec.  29.10  Program registration.

    (a) To apply for registration, a prospective program sponsor must 
submit electronically to a Registration Agency an application that 
includes:
    (1) A work process schedule and related instruction outline that is 
consistent with an occupation deemed suitable for registered 
apprenticeship by the Administrator;
    (2) Standards of apprenticeship for the proposed program;
    (3) The apprenticeship agreement for the apprenticeship program;
    (4) A written plan for the equitable recruitment and retention of 
apprentices, including those from underserved communities;
    (5) Information showing that the prospective program sponsor 
possesses and can maintain the financial capacity

[[Page 3281]]

and other resources necessary to operate the proposed program;
    (6) A disclosure in writing of all instances where a Federal, 
State, or local government agency has issued a final agency 
determination that the prospective sponsor (or any of its officers or 
employees) has violated any applicable laws pertaining to occupational 
safety and health, labor standards (including wage and hour 
requirements), financial mismanagement or abuse, EEO, protections for 
employees against harassment or assault, or other applicable laws 
governing workplace practices or conduct. Such disclosure must include 
a description of the violation, as well as the actions taken by the 
prospective sponsor to remedy the violation;
    (7) Union participation provisions, if applicable:
    (i) In instances where an apprenticeship program is proposed for 
registration by a sponsor, employer, or employers' association and the 
standards of apprenticeship, collective bargaining agreement, or other 
instrument provides for participation by a labor union in any manner in 
the operation of the substantive matters of the apprenticeship program 
(and where such participation is exercised), written acknowledgement of 
union agreement or lack of objection to the registration is required.
    (ii) Where no such participation is evidenced and practiced, the 
sponsor, employer, or employers' association must simultaneously 
furnish to an existing union, which is the collective bargaining agent 
of the employees to be trained, a copy of its application for 
registration and of the apprenticeship program. The Registration Agency 
must provide for receipt of union comments, if any, within 45 days 
before final action on the application for registration or approval.
    (8) A description of how the sponsor will implement, upon 
registration, the affirmative steps to provide EEO in apprenticeship 
required by Sec.  30.3(b) of this title. This description must, at a 
minimum:
    (i) Identify the individual or individuals who will be responsible 
and accountable for overseeing the sponsor's commitment to equal 
opportunity in registered apprenticeship;
    (ii) Identify the publications or other documents where the 
sponsor's EEO pledge will be published and the physical or digital 
locations where the sponsor's EEO pledge will be posted;
    (iii) Describe the planned schedule for orientation and information 
sessions for individuals connected with the administration or operation 
of the apprenticeship program, including all apprentices and 
journeyworkers who regularly work with apprentices, to inform and 
remind such individuals of the sponsor's EEO policy with regard to 
apprenticeship;
    (iv) Provide a list of current recruitment sources that will 
generate referrals from all demographic groups within the relevant 
recruitment area, including the identity of a contact person, mailing 
address, telephone number, and email address for each recruitment 
source;
    (v) Describe the sponsor's procedures to ensure that its 
apprentices are not harassed or otherwise subjected to discrimination 
because of their race, color, religion, national origin, sex, sexual 
orientation, age (40 or older), genetic information, or disability and 
to ensure that its apprenticeship program is free from intimidation and 
retaliation. This description must specifically include:
    (A) The planned schedule and content source for the required anti-
harassment training to all individuals connected with the 
administration or operation of the apprenticeship program; and
    (B) The sponsor's procedures for handling and resolving complaints 
about harassment and intimidation.
    (b) A complete electronic application for registration that 
includes all of the requirements of paragraph (a) of this section will 
be reviewed within 90 calendar days by the Registration Agency, which 
will approve the application if:
    (1) The occupation covered by the proposed program has been 
determined by the Administrator to be suitable for registered 
apprenticeship training pursuant to Sec.  29.7. The Administrator may, 
in their sole discretion, determine that a work process schedule and 
related instruction outline submitted for registration substantially 
differs from those previously approved as suitable for registered 
apprenticeship such that the application for registration must first 
undergo a suitability determination pursuant to Sec.  29.7;
    (2) The work process schedule proposed for that occupation has been 
determined to provide training in the specific skills and competencies 
associated with the approved occupation;
    (3) The applicant's work process schedule and related instruction 
outline would provide an apprentice with a portable set of occupational 
skills and competencies that are readily transferable between employers 
within the same industry or sector;
    (4) The standards of apprenticeship submitted are consistent with 
Sec.  29.8;
    (5) The apprenticeship agreement adheres to the requirements of 
Sec.  29.9;
    (6) The sponsor possesses the financial capacity and other 
resources necessary to operate the proposed program;
    (7) The Registration Agency finds that any types of misconduct or 
violations of law acknowledged by the applicant for registration 
pursuant to paragraph (a)(6) of this section have been satisfactorily 
addressed and cured by the applicant, and therefore would not pose a 
significant ongoing risk to the welfare of apprentices who elect to 
enroll in the program;
    (8) If applicable, the union participation requirements of 
paragraph (a)(7) of this section are satisfied; and
    (9) The sponsor's submission is found by the Registration Agency to 
be satisfactory under paragraphs (a)(4) and (8) of this section.
    (c) Applications for new programs that the Registration Agency 
determines meet the required standards for program registration will be 
given a Certificate of Registration and provided provisional 
registration. In instances where a Registration Agency declines to 
register a program, the Registration Agency will provide a written 
explanation of the reasons why it determined the application does not 
meet the requirements of this subpart, and how any deficiencies could 
be cured, to the applicant. Applicants denied approval may resubmit 
consistent with the requirements of this subpart.
    (d) The Registration Agency must review all provisionally 
registered programs for compliance with the requirements of this part 
and of part 30 of this title within 2 years of the program's 
registration date or at the end of the first training cycle, whichever 
is sooner. At that time:
    (1) A program that is in compliance with the requirements of this 
part and part 30 of this title:
    (i) Will be made permanent if the program's first full training 
cycle has been completed; or
    (ii) Will, if the program's first full training cycle has not been 
completed, continue to be provisionally registered through the 
program's first full training cycle, upon which they will receive a 
subsequent program review.
    (2) A program that is not in compliance with this part and part 30 
of this title during the provisional registration period will be 
subject to the deregistration procedures at Sec.  29.20.
    (3) After a program receives permanent registration, subsequent 
program reviews are conducted by the

[[Page 3282]]

Registration Agency as provided in Sec.  29.19.
    (e) If a registered apprenticeship program does not have at least 
one apprentice enrolled and participating in the apprenticeship 
program, and registered with the Registration Agency, the Registration 
Agency may initiate deregistration proceedings as described in Sec.  
29.20. This does not apply during the following periods of time, which 
may not exceed 1 year:
    (1) Between the date when a program is registered and the date of 
registration for its first apprentice(s); or
    (2) Between the date that a program graduates an apprentice and the 
date of registration for the next apprentice(s) in the program.
    (f) Any sponsor proposals for modification(s) or change(s) to 
standards of apprenticeship or certified National Guidelines for 
Apprenticeship Standards for a registered program must be submitted to 
the Registration Agency. The Registration Agency must make a 
determination on whether such submissions are consistent with the 
requirements of this part and part 30 of this title and, if so, will 
approve such submissions within 90 calendar days from the date of 
receipt of a complete submission. If approved, the modification(s) or 
change(s) will be recorded and acknowledged within calendar 90 days of 
approval as an amendment to such program. If not approved, the sponsor 
must be notified of the disapproval and the reasons therefore and 
provided the appropriate technical assistance.


Sec.  29.11  Program standards adoption agreement.

    (a) Program standards adoption agreements between sponsors and 
participating employers. The terms and conditions of a program 
standards adoption agreement must include a provision that the 
participating employer will:
    (1) Adopt and comply with the sponsor's registered standards of 
apprenticeship;
    (2) Comply with all other applicable requirements in this part; and
    (3) Cooperate with, and provide assistance to, the program sponsor 
to meet the program sponsor's obligations under this part and part 30 
of this title, including by providing any apprenticeship-related data 
and records necessary to assess compliance with these regulatory 
provisions.
    (b) Transmission of the adoption agreement to the Registration 
Agency. Each executed program standards adoption agreement must be 
transmitted to the Registration Agency by the program sponsor within 30 
days of the execution of the agreement.
    (c) Suspension or cancellation of adoption agreement. A program 
standards adoption agreement:
    (1) May be cancelled by the participating employer upon providing 
30 days' written notice to the sponsor; or
    (2) Must be suspended or cancelled by the program sponsor if the 
program sponsor determines that the participating employer failed to 
satisfy the program standards adoption agreement's provisions of this 
section.
    (i) The program sponsor must provide written notice of any 
suspension or cancellation to the participating employer, all 
apprentices affected by the suspension or cancellation, and to the 
applicable Registration Agency. The notice must explain the reason for 
the suspension or cancellation.
    (ii) If the suspension or cancellation results in an interruption 
or cessation of training for apprentices, the program sponsor must make 
reasonable efforts to place such individuals with another of the 
sponsor's participating employers or a different registered 
apprenticeship program in the same occupation.
    (iii) In instances where a program sponsor fails to suspend or 
cancel a program standards adoption agreement as required by paragraph 
(c)(2) of this section, the Registration Agency may initiate 
deregistration proceedings against the sponsor pursuant to Sec.  29.20.


Sec.  29.12  Qualifications of apprentice trainers and providers of 
related instruction.

    (a) Registered apprenticeship program sponsors and participating 
employers must ensure that any journeyworkers providing on-the-job 
training to apprentices possess, at a minimum, the following 
qualifications:
    (1) A mastery of the relevant skills, techniques, and competencies 
of the occupation;
    (2) Up-to-date knowledge of the latest advances in technical 
knowledge and skills necessary to maintain proficiency and expertise in 
the occupation;
    (3) Ability to effectively communicate and demonstrate the range of 
specialized practical knowledge, work processes, skills, and techniques 
necessary to acquire full proficiency in the occupation;
    (4) Ability to apply industry-recognized methods for objectively 
and fairly evaluating and monitoring the progress of the apprentice 
during the apprenticeship term, including the ability to assess the 
attainment of competencies of apprentices acquired during their on-the-
job training;
    (5) Ability to relate the conceptual and theoretical knowledge 
acquired by apprentices in their related instruction to the successful 
performance of job-related tasks that are ordinarily performed by 
workers in the covered occupation; and
    (b) Registered apprenticeship program sponsors and participating 
employers must further ensure that the trainer establishes a safe and 
inclusive training environment that promotes the effective development 
of apprentices from all backgrounds; in addition, the trainer must also 
have completed all of the required anti-harassment training required 
under part 30 of this title and must not have a record of substantiated 
noncompliance with EEO requirements.
    (c) Registered apprenticeship program sponsors must ensure that 
providers of related instruction possess, at a minimum, the following 
qualifications:
    (1) Serve as a faculty member or instructor at an accredited 
postsecondary institution, or meet the State's certification 
requirements for a vocational-technical instructor in the State in 
which the apprenticeship program is registered; or be a subject-matter 
expert, which is an individual, such as a journeyworker, who is 
recognized within an industry as having expertise in a specific 
occupation; and
    (2) Have received previous training in teaching techniques and 
adaptable learning styles.


Sec.  29.13  Development of National Occupational Standards for 
Apprenticeship.

    (a) In general. To facilitate the growth of high-quality registered 
apprenticeship programs, the Administrator will oversee the development 
of and updates to industry-validated, portable, and rigorous National 
Occupational Standards for Apprenticeship suitable for adoption by 
program sponsors.
    (b) Development and approval. Each set of new or updated National 
Occupational Standards for Apprenticeship and related work process 
schedules will be reviewed and approved by the Administrator to ensure 
that each of the proposed National Occupational Standards satisfies the 
following criteria:
    (1) The associated occupation has been determined suitable for 
registered apprenticeship training by the Administrator pursuant to 
Sec.  29.7;
    (2) The proposed work process schedule framework associated with 
the occupation under consideration has been documented as nationally 
applicable;
    (3) The proposed standards include a nationally applicable 
curriculum

[[Page 3283]]

framework for the provision of related instruction; and
    (4) The proposed standards describe the nationally applicable 
methods for conducting ongoing evaluations of apprentices to assess the 
successful attainment of the skills and competencies required under the 
framework, including the development of nationally applicable end-point 
assessments.
    (c) Approval. The Administrator will solicit public comment to 
assist in evaluating that the National Occupation Standards for 
Apprenticeship satisfy the criteria in paragraph (b) of this section. 
Such solicitations will be made available for public comment for at 
least 30 days. A determination regarding the National Occupations 
Standards for Apprenticeship will be made within 90 days of its 
submission for public comment, though the Administrator may extend this 
period. The Administrator may also consider data and other relevant 
information to assist in evaluating whether the requirements in Sec.  
29.13(b) are satisfied. The Administrator will maintain an up-to-date 
publicly available list of all National Occupational Standards for 
Apprenticeship determinations.


Sec.  29.14  National Program Standards for Apprenticeship.

    (a) In general. National Program Standards for Apprenticeship must:
    (1) Train apprentices for an occupation that is not ordinarily 
subject to Federal, State, or local licensing requirements;
    (2) Be national or multistate in their design, suitability, and 
scope; and
    (3) Satisfy the applicable requirements of this part and part 30 of 
this title.
    (b) Scope of registration. National Program Standards for 
Apprenticeship that meet the requirements in paragraph (a) of this 
section will be approved and registered on a nationwide basis for 
Federal purposes by the Administrator. In instances where the 
Administrator declines to register a proposed set of National Program 
Standards for Apprenticeship, the Administrator will provide a written 
explanation of the reasons for the unfavorable determination.
    (c) Reciprocity of registration. SAAs must accord reciprocal 
approval and registration to National Program Standards for 
Apprenticeship approved under this section.
    (d) Alignment with National Occupational Standards for 
Apprenticeship. For those occupations where National Occupational 
Standards for Apprenticeship currently exist, a program sponsor seeking 
registration of its National Program Standards for Apprenticeship must 
use such National Occupational Standards. Sponsors are allowed to 
modify the National Occupational Standards for Apprenticeship to meet 
their needs provided that the Administrator determines that the 
submission substantially aligns with the National Occupational 
Standards.


Sec.  29.15  National Guidelines for Apprenticeship Standards.

    (a) In general. National Guidelines for Apprenticeship Standards 
must:
    (1) Be national in their applicability and scope with respect to 
the covered occupation;
    (2) Be suitable for either adoption or adaptation by State or local 
affiliates of the program sponsor, and
    (3) Satisfy the applicable requirements of this part and of part 30 
of this title.
    (b) Recognition of National Guidelines for Apprenticeship 
Standards. National Guidelines for Apprenticeship Standards that meet 
the requirements in paragraph (a) of this section will be recognized by 
the Administrator, which will issue a Certificate of Recognition to the 
submitting organization. If the Administrator determines the National 
Guidelines for Apprenticeship Standards do not satisfy the requirements 
in paragraph (a) of this section, the Administrator will provide a 
written explanation of the reasons for the unfavorable determination.
    (c) Local registration required. National Guidelines for 
Apprenticeship Standards recognized under this section may be used as 
the basis for standards of apprenticeship submitted by a State or local 
affiliate of the organization receiving recognition to the applicable 
State Registration Agency for approval and registration of the 
individual program in a given State.
    (d) Resubmission of National Guidelines for Apprenticeship 
Standards. National Guidelines for Apprenticeship Standards recognized 
by the Administrator must be resubmitted for approval by the 
Administrator:
    (1) When the standards have been amended consistent with Sec.  
29.8(b); and
    (2) Every 5 years, beginning on the date of the most recent 
approval by the Administrator.
    (e) Alignment with National Occupational Standards for 
Apprenticeship. For those occupations where National Occupational 
Standards for Apprenticeship currently exist, a program sponsor seeking 
certification of its National Guidelines for Apprenticeship Standards 
must use such National Occupational Standards. Sponsors are allowed to 
modify the National Occupational Standards for Apprenticeship to meet 
their needs provided that the Administrator determines that the 
submission substantially aligns with the National Occupational 
Standards.


Sec.  29.16  End-point assessment and Certificate of Completion.

    (a) Prior to an apprentice's completion of the registered 
apprenticeship program, the program sponsor must arrange for an end-
point assessment to objectively measure the apprentice's acquisition of 
the relevant knowledge, skills, and competencies necessary to 
demonstrate proficiency in the occupation covered by the program.
    (b) An apprentice who is not successful in completing the end-point 
assessment must be offeredat least one additional opportunity to 
complete the assessment at the apprentice's request.
    (c) The sponsor must inform all apprentices of their right to 
request a reasonable accommodation prior to the administration of the 
assessment.
    (d) Each apprentice whom the sponsor determines has successfully 
met the on-the-job training and related instruction requirements of a 
registered apprenticeship program and completes the end-point 
assessment will be awarded a Certificate of Completion by the 
appropriate Registration Agency.


Sec.  29.17  Complaints.

    (a) This section is not applicable to any complaint concerning 
discrimination or other EEO matters; all such complaints must be 
submitted, processed, and resolved in accordance with applicable 
provisions in part 30 of this title, or applicable provisions of a 
State EEO plan adopted pursuant to part 30 of this title and approved 
by the Department.
    (b) Except for matters described in paragraph (a) of this section 
and matters covered by a collective bargaining agreement, a complainant 
or their authorized representative may submit a complaint regarding any 
dispute arising under an apprenticeship agreement or alleging a 
violation of this part to the sponsor or to the Registration Agency 
that registered the apprenticeship program for review.
    (c) A complaint must be filed with the Registration Agency within 
300 calendar days after the conclusion of the events that gave rise to 
the dispute or the alleged violation of this part. However, for good 
cause shown, the Registration Agency may extend the filing time.

[[Page 3284]]

    (d) All complaints must be submitted in writing by the complainant 
or their authorized representative, and must describe the dispute, 
including all relevant facts and documents. Each written complaint must 
contain the following information:
    (1) A means of contacting the complainant or the authorized 
representative;
    (2) The identity of the individual or entity that is alleged to be 
responsible for the conduct giving rise to the complaint; and
    (3) A short description of the events, facts, or circumstances 
giving rise to the complaint, including a discussion of when the events 
giving rise to the complaint took place.
    (e) Requirements of the Registration Agency with respect to 
complaints are as follows:
    (1) The investigation of a complaint filed under this part will be 
undertaken by the Registration Agency and will proceed as expeditiously 
as possible. In conducting complaint investigations, the Registration 
Agency must:
    (i) Provide written notice to the complainant and the authorized 
representative, if any, acknowledging receipt of the complaint;
    (ii) Initiate an investigation upon receiving a complete complaint;
    (iii) Complete a thorough investigation of the allegations of the 
complaint and develop a complete case record that must contain, but is 
not limited to, the name, address, and telephone number of each person 
interviewed, the interview statements, copies, transcripts, or 
summaries (where appropriate) of pertinent documents, and a narrative 
report of the investigation with references to exhibits and other 
evidence that relate to the alleged violations; and
    (iv) Provide written notification of the Registration Agency's 
findings to both the respondent and the complainant.
    (2) The Registration Agency will protect the identity of the 
complainant to the extent practicable.
    (3) The Registration Agency will review all complaints. Where a 
report of findings from a complaint investigation indicates a violation 
of the requirements of this part or the apprenticeship agreement, the 
Registration Agency will attempt to resolve the violation as 
expeditiously as possible.
    (f) Nothing in this section precludes an apprentice from pursuing 
any other remedy authorized under another Federal, State, or local law.
    (g) An SAA may adopt a complaint investigation procedure differing 
in detail from that given in this section, provided that such a 
procedure has previously been reviewed and approved, pursuant to Sec.  
29.27, by the Administrator.
    (h) A participant in a registered apprenticeship program may not be 
intimidated, threatened, coerced, retaliated against, or discriminated 
against because the individual has:
    (1) Filed a complaint alleging a violation of this part or an 
apprenticeship agreement;
    (2) Opposed a practice prohibited by the provisions of this part or 
an apprenticeship agreement;
    (3) Furnished information to, or assisted or participated in any 
manner in, any investigation, compliance review, proceeding, or hearing 
under this part; or
    (4) Otherwise exercised any rights and privileges under the 
provisions of this part or an apprenticeship agreement.
    (i) Any sponsor that permits such retaliation under paragraph (h) 
of this section in its registered apprenticeship program, including by 
participating employers, and fails to take appropriate steps to remedy 
such activity will be subject to deregistration under Sec.  29.20(a) 
and other appropriate remedies.


Sec.  29.18  Recordkeeping by registered programs.

    (a) General obligation. The program sponsor, and any participating 
employer, is responsible for maintaining any records that the 
Registration Agency considers necessary to determine whether the 
sponsor has complied or is complying with the requirements of this part 
and any applicable Federal or State laws. Such records include, but are 
not limited to, records relating to:
    (1) Employment decisions, such as the hiring or placement, 
promotion, demotion, transfer, layoff, termination, right of return 
from layoff, and rehiring of apprentices;
    (2) Information related to the operation of the registered 
apprenticeship program, including but not limited to:
    (i) Information related to the qualification, recruitment, 
employment, and training of apprentices, such as the apprenticeship 
program standards, apprenticeship agreements, completion records, 
cancellation and suspension records, and compliance review files;
    (ii) Records pertaining to each apprentice's performance and 
progress in both the on-the-job training and related instruction 
components of the registered apprenticeship program, and records 
related to the apprentice end-point assessments;
    (iii) If applicable, any records pertaining to an apprentice's 
attainment of an interim credential, postsecondary academic credit, or 
any other interim milestones attained during the course of an 
apprentice's participation in the program;
    (iv) For each apprentice, the number of hours of on-the-job 
training, the number of hours of related instruction, the total number 
of hours worked, and the wages and fringe benefits paid for all hours;
    (v) Any records, including personnel records, applicable to non-EEO 
complaints filed with the Registration Agency pursuant to Sec.  29.17;
    (vi) All records related to the safety record of the sponsor and 
all participating employers in the sponsor's program, where applicable, 
including records relating to any safety and health training provided 
to apprentices, incident logs required to be maintained under 
applicable Federal or State occupational safety and health laws, as 
well as current worker's compensation documentation;
    (vii) Any records required to be maintained by a program sponsor 
under part 30 of this title;
    (viii) Any records required to be maintained under title 38, United 
States Code, in order for veterans and other individuals eligible for 
educational assistance under such title to use such assistance for 
enrollment in registered apprenticeship programs; and
    (ix) Any records demonstrating program compliance with registered 
apprenticeship requirements to meet Federal purposes as defined in this 
part.
    (b) Maintenance of records.The records required by this part and 
any other information relevant to compliance with these regulations by 
a program sponsor (and any participating employer) must be maintained 
for 5 years from the date of the making of the record or the personnel 
action involved, whichever occurs later. Failure to preserve complete 
and accurate records as required by paragraph (a) of this section 
constitutes noncompliance with this part.
    (c) Access to records.The program sponsor (and any participating 
employer)must allow the Registration Agency access to the records 
described in paragraph (a) of this section upon request for the purpose 
of conducting program reviews and investigating complaints arising 
under this part; such program reviews and investigations may involve 
the inspecting and copying of books, accounts, records (including 
electronic records), and any other material the Registration Agency 
deems relevant to the review or investigation and pertinent to 
compliance with this part. Upon request, the program sponsor (and any 
participating employer) must

[[Page 3285]]

provide the Registration Agencyinformation about all format(s), 
including specific electronic formats, in which its records and other 
information are available. Information obtained in this manner will be 
used only in connection with the administration of this part or other 
applicablelaws.
    (d) Format of records and other information. Forms, records, and 
any other documents used and maintained by the program sponsor (and any 
participating employer) in the administration of this part may exist in 
paper or electronic form or a combination thereof. Regardless of the 
medium, these records must be available and accessible as required 
under paragraph (c) of this section for oversight and compliance 
purposes.


Sec.  29.19  Program reviews.

    (a) After an apprenticeship program has received permanent 
registration status as described in Sec.  29.10, the Registration 
Agency must conduct periodic reviews of the apprenticeship program 
(which may include any participating employers in the sponsor's 
program) not less frequently than every 5 years, except as described in 
paragraph (b) of this section.
    (b) The Registration Agency must conduct reviews of a program in 
instances where the Registration Agency receives credible information 
or allegations that the program is not being operated in accordance 
with either its program standards or the requirements set forth in this 
part or in part 30 of this title, or at the request of the 
Administrator.
    (c) In conducting program reviews, Registration Agencies may 
consider all information and data that is relevant to any actual or 
potential areas of noncompliance. As part of a review of data, the 
Registration Agency must review the program's performance under Sec.  
29.25(b).
    (d) Sponsors and participating employers are required to cooperate 
with requests for interviews or documentation from the Registration 
Agency. Sponsors and participating employers must not impede a 
Registration Agency's ability to interview prospective, current, or 
former apprentices.
    (e) Upon completion of a program review, the Registration Agency 
must present a written Notice of Program Review Findings to the sponsor 
using the contact information listed in the registered standards. If 
the program review indicates a failure to comply with this part or with 
part 30 of this title, the required notice will include:
    (1) The deficiency or deficiencies identified;
    (2) How to cure or remedy the deficiency or deficiencies;
    (3) A requirement that the sponsor must develop and submit a 
compliance action plan pursuant to paragraph (f) of this section; and
    (4) A statement that the administrative actions described in Sec.  
29.20 may be undertaken if compliance is not achieved within the 
required timeframe.
    (f)(1) When a sponsor receives a Notice of Program Review Findings 
that indicates a failure to comply with this part, the sponsor must, 
within 45 calendar days of notification, either develop and submit for 
approval by the Registration Agency a compliance action plan that meets 
the requirements of paragraph (f)(2) of this section or submit a 
written rebuttal to the Findings. Registration Agencies may extend this 
deadline one time by up to 45 calendar days for good cause upon request 
of the sponsor.
    (2) If the Registration Agency upholds the findings after 
considering the sponsor's rebuttal, the Registration Agency must 
provide the sponsor written notice of its determination, including the 
reasons for the determination. Upon receipt, the sponsor must develop, 
and submit to the Registration Agency for approval, a compliance action 
plan within 45 calendar days of receiving the final notice. The 
compliance action plan must include, at a minimum, the following 
provisions:
    (i) A specific commitment, in writing, to correct or remediate 
identified deficiency(ies) and area(s) of noncompliance;
    (ii) The precise actions to be taken for each deficiency 
identified;
    (iii) The time period within which each cited deficiency will be 
remedied and any corrective program changes implemented; and
    (iv) The name of the individual(s) responsible for correcting each 
deficiency identified.
    (g) The Registration Agency will evaluate the sponsor's compliance 
action plan. The Registration Agency will elect one of the following of 
three responses to the compliance action plan and will notify the 
sponsor in writing accordingly.
    (1) The Registration Agency may approve the compliance action plan, 
determine that the Program is now in compliance, and terminate the 
program review process.
    (2) The Registration Agency may approve the compliance action plan 
but continue the program review process until the compliance action 
plan is appropriately implemented.
    (3) The Registration Agency may reject the compliance action plan 
and either work with the sponsor to revise the compliance action plan 
or initiate deregistration under Sec.  29.20.


Sec.  29.20  Deregistration of a registered program.

    (a) In general. Where the Registration Agency, as a result of a 
program review or complaint investigation, or on any other basis, 
determines that the sponsor, or any participating employer in the 
sponsor's program, is not operating the registered apprenticeship 
program in accordance with this part, the Registration Agency must 
notify the program sponsor in writing of the specific violation(s) 
identified and may proceed with any or a combination of the following:
    (1) Offer the sponsor or participating employer technical 
assistance to promote compliance with this part;
    (2) Require the sponsor to submit a compliance action plan pursuant 
to Sec.  29.19(f);
    (3) Suspend the sponsor's right to register new apprentices for a 
specified time period; or
    (4) Deregister the program pursuant to paragraph (b) of this 
section.
    (b) Deregistration by the Registration Agency for cause. The 
Registration Agency may deregister an apprenticeship program when the 
apprenticeship program is not being operated in accordance with the 
requirements of this part or of part 30 of this title, and the program 
either has failed to correct specific violations identified by the 
Registration Agency or has failed to submit or implement an approved 
compliance action plan within the timeframes established in this part. 
The Registration Agency will send a Notice of Deregistration to the 
sponsor that includes the reasons for deregistration and the right to 
request a hearing before the Office of Administrative Law Judges (OALJ) 
or request review by the Administrator in accordance with this section.
    (c) Voluntary deregistration at the request of the sponsor. The 
Registration Agency will deregister an apprenticeship program, and 
provide written confirmation to the sponsor of such deregistration, 
after the Registration Agency has received a written request for 
deregistration from the program sponsor that includes:
    (1) The effective date of the requested deregistration; and
    (2) A statement that within 15 calendar days of the date of the 
written

[[Page 3286]]

request the sponsor will notify all apprentices:
    (i) That sponsor has requested that their program be deregistered 
and the effective date;
    (ii) That deregistration automatically deprives the apprentice of 
individual registration;
    (iii) That the deregistration of the program removes the apprentice 
from coverage for Federal purposes; and
    (iv) That the apprentice will be referred to the Registration 
Agency for information about potential transfer to other registered 
apprenticeship programs.
    (d) Review of deregistration by the Administrator, Office of 
Apprenticeship.
    (1) If a former sponsor wishes to request review by the 
Administrator, the former sponsor must do so by submitting an 
electronic request for review in writing within 30 calendar days from 
the date of the Notice of Deregistration. The request for review must 
include any additional relevant facts or documents that exist as of the 
date of the request. Statements concerning interviews, meetings, and 
conferences must include the time, date, place, and persons present.
    (2) If the Registration Agency that issued the Notice of 
Deregistration is an SAA, the former sponsor must simultaneously 
furnish a copy of the request for review and all supporting facts and 
documentation to the Administrator. The SAA must transmit to the 
Administrator within 15 calendar days of receiving the request for 
review copies of records containing all pertinent facts concerning the 
deficiencies identified, including the Notice of Deregistration, and 
copies of all relevant documents and records that were before the SAA 
at the time of its decision. The Administrator may request additional 
information from the former sponsor, the SAA, or both.
    (3) If the Registration Agency that issued the Notice of 
Deregistration is OA, OA will compile from within its own files records 
of all pertinent facts concerning the deficiencies identified, 
including the Notice of Deregistration and any new information provided 
by the former sponsor. The Administrator may request additional 
information from the sponsor.
    (4) After reviewing a request for review, the Administrator will 
issue a final decision that includes the reasons for the decision as 
quickly as practicable after receipt of all information.
    (5) Except as provided in paragraph (d)(6) of this section, the 
sponsor may request a hearing before the Department's OALJ within 15 
calendar days of receipt of the Administrator's final decision. If a 
hearing is not requested within 15 calendar days, the Administrator's 
decision is the final determination of the Department and no appeal to 
OALJ will be considered.
    (6) Where the basis for deregistration is a failure to respond to 
multiple attempts by the Registration Agency to contact the sponsor or 
failure to register at least one apprentice, the Administrator's 
decision is the final determination of the Department and the sponsor 
cannot request a hearing with OALJ.
    (e) Requests for hearings.
    (1) A request for a hearing must be sent to OALJ within 15 calendar 
days of receiving a Notice of Deregistration from OA or receiving the 
Administrator's final decision. Where an SAA is the Registration 
Agency, a sponsor must request Review of Deregistration by the 
Administrator and receive the Administrator's final decision before 
requesting a hearing with OALJ.
    (2) A copy of the request for a hearing must be simultaneously sent 
to the Administrator and the Associate Solicitor for Employment and 
Training Legal Services, Office of the Solicitor, U.S. Department of 
Labor. The Administrator will promptly provide the OALJ with the 
administrative file containing all documents relied on by the 
Administrator.
    (3) Hearings requested under paragraph (e)(1) of this section must 
be conducted as set forth in Sec.  29.21.


Sec.  29.21  Hearings on deregistration.

    (a) The procedures contained in part 18 of this title will apply to 
the disposition of the request for hearing except that:
    (1) The Administrative Law Judge will receive, and make part of the 
record, documentary evidence offered by any party and accepted at the 
hearing. Copies thereof will be made available by the party submitting 
the documentary evidence to any party to the hearing upon request.
    (2) Technical rules of evidence will not apply to hearings 
conducted pursuant to this part, but rules or principles designed to 
assure production of the most credible evidence available and to 
subject testimony to test by cross-examination will be applied, where 
reasonably necessary, by the Administrative Law Judge conducting the 
hearing. The Administrative Law Judge may exclude irrelevant, 
immaterial, or unduly repetitious evidence.
    (3) The request for a hearing will not be considered to be a 
complaint to which an answer is required.
    (4) The Administrative Law Judge may authorize discovery and the 
filing of pre-hearing motions, and so limit them to the types and 
quantities that in the Administrative Law Judge's discretion will 
contribute to a fair hearing without unduly burdening the parties.
    (b) The Administrative Law Judge must issue a written decision 
within 90 calendar days of the close of the hearing record. The 
Administrative Law Judge must uphold the Administrator's decision 
unless it is shown by the sponsor to be arbitrary, capricious, an abuse 
of discretion, or otherwise not in accordance with the law. The 
Administrative Law Judge's decision constitutes final agency action 
unless, within 15 calendar days from receipt of the decision, a party 
dissatisfied with the decision files a petition for review with the 
Administrative Review Board (ARB) in accordance with part 26 of this 
title, specifically identifying the procedure, fact, law, or policy to 
which exception is taken. Any exception not specifically urged is 
deemed to have been waived. A copy of the petition for review must be 
served on the opposing party at the same time in accordance with part 
26 of this title. Thereafter, the decision of the Administrative Law 
Judge remains final agency action unless the ARB, within 30 calendar 
days of the filing of the petition for review, notifies the parties 
that it has accepted the case for review. The ARB may set a briefing 
schedule or decide the matter on the record. The ARB must issue a 
decision in any case it accepts for review within 180 calendar days of 
the close of the record. If a decision is not so issued, the 
Administrative Law Judge's decision constitutes final agency action.


Sec.  29.22  Reinstatement of program registration.

    Any apprenticeship program deregistered under Sec.  29.20 may be 
reinstated at any time upon presentation of adequate evidence to the 
Registration Agency that the apprenticeship program is operating in 
accordance with this part and part 30 of this title.


Sec.  29.23  Exemptions.

    Requests for exemption from any provision of this subpart must be 
made in writing to the Administrator and must contain a statement of 
reasons supporting the request. The Administrator may only grant 
exemptions for good cause and may not grant exemptions with respect to 
requirements set forth outside of this subpart, including requirements 
set forth in other applicable Federal, State, or local laws.

[[Page 3287]]

Subpart B--Career and Technical Education Apprenticeship


Sec.  29.24  Registration of career and technical education 
apprenticeship programs.

    (a) Required coordination.
    (1) Coordination activities. The Registration Agency and the State 
CTE Agency must coordinate on the overall administration of registered 
CTE apprenticeship programs in each State, including the process of 
program approvals, program reviews, data collection, technical 
assistance, and compliance activities to ensure that both parties work 
cooperatively to support LEAs, IHEs, and their intermediaries in the 
coordination of registered CTE apprenticeship programs while ensuring 
that programs meet the requirements of this part. Nothing in this 
subpart alters the existing authorities of the State CTE Agency for 
implementation and oversight of Perkins, which is not governed by these 
regulations, and the Registration Agency for oversight of any 
registered apprenticeship program.
    (2) Written agreement. The State CTE Agency and Registration Agency 
must enter into a written agreement for the Statewide coordination and 
operation of registered CTE apprenticeship programs in the State. The 
written agreement must describe the roles and responsibilities of each 
agency. In order for an SAA to establish registered CTE apprenticeship 
programs in its State, it must include such a written agreement as part 
of the State Apprenticeship Plan it submits to OA for approval.
    (b) Approval of industry skills frameworks.
    (1) To facilitate the design and implementation of registered CTE 
apprenticeship programs, the Administrator will oversee the development 
of and updates to industry-validated, portable, and rigorous industry 
skills frameworks, which will be used by States and sponsors. Each set 
of new or updated industry skills frameworks must be reviewed by the 
Administrator, and will be approved as suitable for use in registered 
CTE apprenticeship programs if the industry skills framework:
    (i) Provides a structure for developing the professional behaviors, 
workplace competencies, and theoretical knowledge required by an 
industry;
    (ii) Describes skills and competencies that have been validated by 
the industry under consideration as nationally applicable and widely 
recognized across the industry;
    (iii) Describes skills and competencies that are specified in an 
on-the-job training outline and obtained through the attainment of at 
least 900 hours of on-the-job training;
    (iv) Aligns with a CTE program as approved by a State CTE Agency; 
and
    (v) Details industry-validated methods for ongoing evaluations to 
assess the attainment of competency benchmarks by a CTE apprentice.
    (2) The Administrator will solicit public comment to assist in 
evaluating an industry skills framework's suitability for registered 
CTE apprenticeship in paragraph (b)(1) of this section. Such 
solicitations will be made available for public comment for at least 30 
days. A determination regarding the industry skills framework will be 
made within 90 days of its submission for public comment, though the 
Administrator may extend this period. The Administrator may also 
consider data and other relevant information to assist in evaluating an 
industry skills framework's suitability for registered CTE 
apprenticeship. The Administrator will maintain an up-to-date public 
list of all industry skills frameworks and decisions.
    (c) Standards of registered CTE apprenticeship. Each registered CTE 
apprenticeship program must have a written set of standards of 
registered CTE apprenticeship that will govern the conduct and 
operation of that program; such standards must include the following 
provisions:
    (1) An on-the-job training outline that aligns with an approved 
industry skills framework;
    (2) A description of the CTE apprenticeship-related instruction 
provided, including the approved CTE program associated with the 
registered CTE apprenticeship program. This description must include a 
statement as to whether time the apprentice spends in the CTE 
apprenticeship-related instruction component of the apprenticeship 
training will be counted as hours worked, and if so, what the wage rate 
and fringe benefits will be for those hours. The CTE apprenticeship-
related instruction must also:
    (i) Be a minimum of 540 hours in duration;
    (ii) Result in the awarding of at least 12 postsecondary credit 
hours; and
    (iii) Lead to proficiency in the skills and competencies described 
in the industry skills framework.
    (3) A description of recognized postsecondary credit hours and 
credentials that are awarded, including any associate or baccalaureate 
degree associated with the program, and the name of the entity(ies) 
issuing the credential(s) or certificate(s);
    (4) A description of how completion of the program will result in 
CTE apprentices' selection into an apprenticeship program registered 
under subpart A of this part (including any advanced standing granted), 
enrollment in a postsecondary educational program, or employment;
    (5) A description of the employment in which CTE apprentices will 
be employed in on-the-job training. The on-the-job training must:
    (i) Be a minimum of 900 hours in duration; and
    (ii) Lead to proficiency in the skills and competencies described 
in the industry skills framework;
    (6) The wage(s) that the CTE apprentice will receive from the 
employer participating in the registered CTE apprenticeship program, 
which must meet the following requirements:
    (i) The CTE apprentice is paid a progressively increasing schedule 
of wages that is consistent with the industry skills and competencies 
required; and
    (ii) The entry wage is not less than the minimum wage prescribed by 
the Fair Labor Standards Act, where applicable, unless a higher wage is 
required by other applicable Federal law, State or local law, or 
respective regulations, or by the terms of an applicable collective 
bargaining agreement.
    (7) The program's specific numeric ratio of CTE apprentices to 
journeyworkers.
    (i) The ratio must be consistent with the proper safety, health, 
supervision, and training of the CTE apprentice.
    (ii) A sponsor must use a ratio that is:
    (A) Consistent with the provisions of any applicable collective 
bargaining agreements, as well as any applicable Federal and State laws 
governing such ratios; and
    (B) Specific and clearly described as to its application to a 
particular workforce, workplace, worksite, job site, department, or 
plant.
    (8) A probationary period that may not exceed 30 days;
    (9) An attestation by the sponsor, supported by any available 
documentation, that the program will provide adequate, safe, and 
accessible facilities and equipment for the training and supervision of 
CTE apprentices that are compliant with all applicable Federal, State, 
and local disability, occupational safety, and occupational health 
laws;
    (10) An attestation by the sponsor that the program will provide 
adequate, industry-recognized safety training for CTE apprentices on 
the job and in CTE apprenticeship-related instruction;
    (11) The minimum qualifications, if any, required by a sponsor and 
its participating employers for persons

[[Page 3288]]

entering the registered CTE apprenticeship program;
    (12) The sponsor's procedures for the selection of CTE apprentices, 
which must comply with the requirements for the selection of 
apprentices set forth in part 30 of this title;
    (13) A list of supportive services that may be available to the CTE 
apprentice during their registered CTE apprenticeship program, 
including whether the services are provided by the sponsor or partner 
organization;
    (14) The process by which the sponsor will reduce the usual term of 
on-the-job training or CTE apprenticeship-related instruction as a 
result of a registered CTE apprentice's prior learning, training, or 
acquired experience, or as a result of accelerated progress in the 
attainment of occupational competencies that is made by an apprentice 
during their participation in the registered CTE apprenticeship 
program. Such process must:
    (i) Involve a fair, transparent, and equitable process for 
objectively identifying, assessing, and documenting a registered CTE 
apprentice's prior learning, training, or acquired experience, as well 
as for measuring any accelerated progress in the attainment of 
occupational competencies in the sponsor's registered CTE 
apprenticeship program; and
    (ii) Result in advanced standing or credit and an increased wage 
for a CTE apprentice that is commensurate with any progression granted 
by the sponsor.
    (15) Documentation that the qualifications and experience of the 
trainers and instructors that provide on-the-job training and CTE 
apprenticeship-related instruction to CTE apprentices satisfy the 
requirements of Sec.  29.12;
    (16) The identity of the Registration Agency and the State CTE 
Agency;
    (17) The sponsor's equal opportunity pledge, pursuant to Sec.  
30.3(c) of this title, as well as an attestation that the program will 
be operated in accordance with the provisions of part 30 of this title, 
and, where applicable, an approved State EEO plan; and
    (18) Contact information (name, address, telephone number, and 
email address) for the appropriate individual with authority under the 
program to receive, process, and make disposition of complaints.
    (d) Registered CTE apprenticeship program sponsors.
    (1) Eligible registered CTE apprenticeship program sponsors. The 
following organizations and entities are eligible to serve as a sponsor 
of a registered CTE apprenticeship program:
    (i) An LEA that is an eligible recipient as defined under Perkins;
    (ii) An institution of higher education that is an eligible 
institution as defined under Perkins;
    (iii) A State CTE Agency or other State government agency that 
shares responsibility for CTE in the State; and
    (iv) An intermediary organization designated by the State CTE 
Agency, State Educational Agency, LEA, or IHE, pursuant to an 
agreement, that has expertise in organizing and coordinating registered 
CTE apprenticeship programs or registered apprenticeship programs, 
including:
    (A) The local affiliate of a labor organization (such as a joint 
apprenticeship and training committee);
    (B) An employer;
    (C) The local affiliate of a trade or industry organization;
    (D) A local workforce development board;
    (E) An IHE;
    (F) An LEA; and
    (H) Any other public, private, or not-for-profit entity that has 
experience coordinating Perkins funding.
    (2) Sponsor program registration. To apply for registration, a 
prospective program sponsor must submit electronically to a 
Registration Agency an application that includes:
    (i) An on-the-job training outline that aligns with an associated 
industry skills framework;
    (ii) A CTE apprenticeship-related instruction outline;
    (iii) Standards of registered CTE apprenticeship for the proposed 
program;
    (iv) The CTE apprenticeship agreement for the registered CTE 
apprenticeship program;
    (v) A written plan that includes the following:
    (A) A description of how the program will ensure the students who 
are selected to participate in the registered CTE apprenticeship 
program reflect a diverse and inclusive cross-section of the current 
student body enrollment of the participating secondary or postsecondary 
school(s) consistent with the requirements of part 30 of this title;
    (B) A description of how the CTE program's training and curriculum 
align with an approved industry skills framework;
    (C) A description of the secondary credits or recognized 
postsecondary credit hours and credentials the program may provide, 
including how the program confers such credits and credentials, and its 
usefulness for CTE apprentices' entry into employment, a registered 
apprenticeship program under subpart A, or a postsecondary educational 
program;
    (D) A description from the sponsor of how they will ensure each 
employer has an established record of maintaining a safe and inclusive 
workplace that is free from discrimination, violence, harassment, 
intimidation, and retaliation against employees;
    (E) A description of how the CTE apprentices participating in the 
program will have access to a broad range of career services and 
supportive services that enable participation in, and successful 
completion of, the registered CTE apprenticeship program;
    (F) A description of the routine monitoring and oversight conducted 
by the sponsor of all aspects of the registered CTE apprenticeship 
program; and
    (G) A description of how the sponsor will implement, upon 
registration, the affirmative steps to provide EEO in apprenticeship 
required by Sec.  30.3(b) of this title. This description must at a 
minimum:
    (1) Identify the individual or individuals who will be responsible 
and accountable for overseeing the sponsor's commitment to equal 
opportunity in registered CTE apprenticeship;
    (2) Identify the publications or other documents where the 
sponsor's equal opportunity pledge will be published and the physical 
or digital locations where the sponsor's equal opportunity pledge will 
be posted;
    (3) Describe the planned schedule for orientation and information 
sessions for individuals connected with the administration or operation 
of the registered CTE apprenticeship program, including all CTE 
apprentices and journeyworkers who regularly work with CTE apprentices, 
to inform and remind such individuals of the sponsor's EEO policy with 
regard to registered CTE apprenticeship;
    (4) Provide a list of current recruitment sources that will 
generate referrals from all demographic groups within the relevant 
recruitment area, including the identity of a contact person, mailing 
address, telephone number, and email address for each recruitment 
source; and
    (5) Describe the sponsor's procedures to ensure that its CTE 
apprentices are not harassed or otherwise subjected to discrimination 
because of their race, color, religion, national origin, sex, sexual 
orientation, age (40 or older), genetic information, or disability and 
to ensure that its apprenticeship program is free from intimidation and 
retaliation. This description must specifically include:
    (i) The planned schedule and content source for the required anti-
harassment training to all individuals connected

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with the administration or operation of the registered CTE 
apprenticeship program; and
    (ii) The sponsor's procedures for handling and resolving complaints 
about harassment and intimidation.
    (vi) An assurance that the specific commitments, roles, and 
responsibilities assumed by employers, secondary schools, LEAs, 
postsecondary educational institutions, intermediaries, and others with 
respect to the operation of the registered CTE apprenticeship program 
are formalized through memoranda of understanding or other written 
agreements; and
    (vii) An assurance that, consistent with Sec.  29.18, the sponsor 
will maintain any required records that the Registration Agency 
considers necessary to determine whether the sponsor has complied or is 
complying with the requirements of this part and any applicable Federal 
or State laws.
    (3) Additional responsibilities for intermediaries serving as a 
sponsor. If an intermediary is the sponsor pursuant to an agreement 
with the State CTE Agency, State Educational Agency, LEA, or IHE, the 
intermediary must ensure compliance with this subpart and coordinate 
with the relevant LEAs, secondary school(s), postsecondary educational 
institutions, community colleges, or CTE providers to ensure all 
requirements above, as well as any additional requirements established 
by the State CTE Agency, State Educational Agency, LEA or IHE, are met.
    (4) Sponsor standards adoption agreements.
    (i) Terms and conditions of adoption agreement. The registered CTE 
apprenticeship program sponsor must ensure that the terms and 
conditions of a sponsor standards adoption agreement include a 
provision that each participating employer will:
    (A) Adopt and comply with the sponsor's standards of registered CTE 
apprenticeship;
    (B) Comply with all other applicable requirements of this part; and
    (C) Cooperate with, and provide assistance to, the program sponsor 
to meet the sponsor's obligations under this part and part 30 of this 
title, including by providing any apprenticeship-related data and 
records necessary to assess compliance with these regulatory 
provisions.
    (ii) Transmission of adoption agreement to Registration Agency. 
Each executed sponsor standards adoption agreement must be transmitted 
to the Registration Agency by the program sponsor within 30 days of the 
execution of the agreement.
    (iii) Suspension or cancellation of adoption agreement.
    (A) A sponsor standards adoption agreement:
    (1) May be canceled by the participating employer upon providing 30 
days' written notice to the sponsor; and
    (2) Must be suspended or cancelled by the program sponsor if the 
program sponsor determines that the participating employer failed to 
satisfy the sponsor standards adoption agreement's provisions of this 
section.
    (B) The program sponsor must provide written notice of any 
suspension or cancellation to the participating employer, all CTE 
apprentices affected by the suspension or cancellation, and the 
applicable Registration Agency. The notice must explain the reason for 
the suspension or cancellation.
    (C) If the suspension or cancellation results in an interruption or 
cessation of training for CTE apprentices, the program sponsor must 
make reasonable efforts to place such individuals with another of the 
sponsor's participating employers.
    (D) In instances where a program sponsor fails to suspend or cancel 
a sponsor standards adoption agreement as required by paragraph 
(d)(4)(iii)(A)(2) of this section, the Registration Agency may initiate 
deregistration proceedings against the program pursuant to Sec.  29.20.
    (e) CTE apprenticeship agreement.
    (1) All CTE apprenticeship programs registered by a Registration 
Agency must develop and establish a written CTE apprenticeship 
agreement that contains the terms and conditions of the employment, 
education, and training of the CTE apprentice. Such agreement must be 
signed prior to the start of the registered CTE apprenticeship term by:
    (i) The CTE apprentice;
    (ii) The CTE apprentice's parent or legal guardian, if the CTE 
apprentice is under 18 years of age;
    (iii) The program sponsor;
    (iv) The secondary or postsecondary institution in which the CTE 
apprentice is enrolled as a student; and
    (v) Any participating employers in the program that have adopted 
the sponsor's standards adoption agreement.
    (2) A copy of the signed CTE apprenticeship agreement and the 
program's standards of registered CTE apprenticeship must be given to 
the CTE apprentice, and their parent or legal guardian if applicable, 
prior to the start date of the registered CTE apprenticeship term.
    (3) At a minimum, the CTE apprenticeship agreement must contain the 
following:
    (i) Contact information and identifying information for the CTE 
apprentice, including the apprentice's date of birth and, on a 
voluntary basis, their Social Security number;
    (ii) Contact information for the Registration Agency, program 
sponsor, and participating employer(s);
    (iii) An identification of the job or occupation the CTE apprentice 
will be employed in, as well as copies of the associated industry 
skills framework and CTE apprenticeship-related instruction outline;
    (iv) The incorporation, either directly or by reference, of the 
program's standards of CTE apprenticeship;
    (v) A description of the respective roles, duties, and 
responsibilities of the CTE apprentice, the program sponsor, and the 
participating employer, during the registered CTE apprenticeship 
program. With respect to sponsors and participating employers, these 
responsibilities must include providing information to CTE apprentices 
regarding their rights and protections under Federal, State, and local 
laws, including their right to file complaints with the applicable 
Registration Agency and the process for doing so;
    (vi) The term of the registered CTE apprenticeship, including the 
beginning date and expected duration of the registered CTE 
apprenticeship program, the beginning date of the on-the-job training, 
and a probationary period that does not exceed 30 days;
    (vii) A detailed statement of the entry wage and the subsequent 
graduated scale of increasing wages to be paid to the CTE apprentice 
over the registered CTE apprenticeship term;
    (viii) A disclosure of the expected minimum number of hours 
allocated by the program to the on-the-job training component during 
the registered CTE apprenticeship term, and to the CTE apprenticeship-
related instruction component of the registered CTE apprenticeship 
program during that term;
    (ix) A description of the methods used during the course of the 
registered CTE apprenticeship program to measure progress on competency 
attainment;
    (x) A description of any supportive services that may be available 
to the CTE apprentice including, childcare, transportation, equipment, 
tools, or any other supportive service provided by the sponsor or a 
partnering organization to address potential barriers to participation 
or completion;
    (xi) The nature and amount of any unreimbursed costs, expenses, or 
fees that the CTE apprentice may incur during their participation in 
the program;

[[Page 3290]]

    (xii) A description of any secondary or postsecondary credits or 
credentials that the CTE apprentice will receive upon successful 
program completion;
    (xiii) A statement by the parties to the agreement that they will 
adhere to the requirements of part 30 of this title;
    (xiv) A statement addressing:
    (A) Whether the CTE apprentice is paid wages and fringe benefits 
during the CTE apprenticeship-related instruction component of the 
program;
    (B) If wages are paid for CTE apprenticeship-related instruction, 
what the wage rate is; and
    (C) Whether the CTE apprenticeship-related instruction is provided 
during work hours.
    (xv) Contact information (name, address, phone, and email if 
appropriate) of the appropriate authority designated under the program 
to receive, process, and make disposition of controversies or disputes 
arising out of the CTE apprenticeship agreement when the controversies 
or disputes cannot be addressed locally or resolved in accordance with 
the established procedure or applicable collective bargaining 
provisions; and
    (xvi) The consent of the CTE apprentice, or their parent or 
guardian, if the CTE apprentice is under 18 and not in attendance at a 
postsecondary institution, permitting the secondary or postsecondary 
institution in which the CTE apprentice is enrolled as a student to 
disclose individual apprentice level information to the program 
sponsor, to the entity designating any intermediary organization as a 
sponsor, to participating employers, to the Registration Agency and the 
Department, if OA is not the Registration Agency, and to any other 
institution involved in administering the registered CTE apprenticeship 
program, as required under subpart B of this part.
    (4) A registered CTE apprenticeship program sponsor, or a 
participating employer in the sponsor's program, cannot include in the 
CTE apprenticeship agreement or otherwise impose on CTE apprentices a 
non-compete provision or other provision that restricts an apprentice's 
labor market mobility, including a provision restricting the 
apprentice's ability to seek or accept employment with another employer 
prior to the completion of the registered CTE apprenticeship program.
    (5) A registered CTE apprenticeship program sponsor, or a 
participating employer in the sponsor's program, cannot include in the 
CTE apprenticeship agreement or otherwise impose on CTE apprentices a 
non-disclosure provision that prevents the worker from working in the 
same field after the conclusion of the worker's employment with the 
employer, or that restricts an apprentice's ability to file a complaint 
with a Registration Agency or other governmental body concerning 
possible violations of this part or of part 30 of this title. Subject 
to these restrictions, a sponsor or participating employer may include 
a non-disclosure provision that relates to the protection of the 
sponsor's or participating employer's confidential commercial 
information or trade secrets.
    (6) The program sponsor must submit a completed copy of the 
executed CTE apprenticeship agreement for each CTE apprentice 
registered to the program's Registration Agency within 30 days of 
execution.
    (f) Certificate of completion of registered CTE apprenticeship. CTE 
apprentices who are enrolled in the registered CTE apprenticeship 
program and who are successful in meeting the CTE apprenticeship-
related instruction and the on-the-job training outlined in the 
industry skills framework will receive a certificate of completion of 
registered CTE apprenticeship from the Registration Agency.
    (g) Administrative requirements of the Registration Agency.
    (1) CTE apprenticeship program registration. The Registration 
Agency will evaluate the written application submitted by a CTE 
apprenticeship program sponsor.
    (i) The Registration Agency must review an application submitted by 
a sponsor consistent with paragraph (d)(2) of this section and provide 
a determination on whether the program is eligible for program 
registration within 90 days of receipt of a complete application.
    (ii) The Registration Agency will inform applicants in writing of 
all decisions regarding program registration.
    (iii) If the Registration Agency denies the application, it must 
explain in writing the reasons for the denial.
    (2) Technical assistance and other support. The Registration Agency 
is responsible for providing outreach, technical assistance, and any 
other services to potential sponsors, participating employers, and 
other potential partners to support the adoption of registered CTE 
apprenticeship as well as to ensure compliance with the requirements of 
this subpart.
    (3) Complaints. The complaint investigation and anti-retaliation 
provisions in Sec.  29.17 apply to this subpart, except that a 
Registration Agency may refer complaints under this subsection to the 
State CTE Agency as appropriate.
    (4) Program reviews.
    (i) For program reviews under this subpart, the process described 
in Sec.  29.19 applies.
    (ii) Program reviews should be done in coordination with the 
relevant State CTE Agency pursuant to the written agreement described 
in paragraph (a)(2) of this section.
    (iii) The result of any program review conducted under paragraph 
(g)(4) of this section will not impact an entity's eligibility for 
funding under the Perkins program.
    (5) Deregistration of a CTE apprenticeship program. The 
deregistration process described in Sec.  29.20 will apply to this 
subpart.
    (6) Hearings on deregistration. The hearing process described in 
Sec.  29.21 will apply to this subpart.
    (7) Reinstatement of program registration. The reinstatement 
process described in Sec.  29.22 will apply to this subpart.
    (8) Recognition of Registration Agencies for CTE apprenticeship.
    (i) OA may serve as the Registration Agency within States where the 
Administrator has not recognized an SAA to register CTE apprenticeship 
programs, provided a written agreement has been signed between OA and 
the State's respective State CTE Agency as described in paragraph 
(a)(2) of this section.
    (ii) SAAs recognized or seeking recognition as a Registration 
Agency under subpart C of this part will be recognized to register CTE 
apprenticeship programs provided the following criteria are met:
    (A) The State's proposed or current apprenticeship laws for CTE 
apprenticeship meet or exceed the requirements for protecting the 
safety and welfare of CTE apprentices set forth in this subpart;
    (B) A written agreement has been signed between the SAA and the 
State CTE Agency as described in paragraph (a)(2) of this section;
    (C) The State has submitted its relevant apprenticeship laws and 
CTE engagement strategies as described in its State Apprenticeship Plan 
submission or a modification as described in subpart C of this part; 
and
    (D) The Administrator has approved the State Apprenticeship Plan 
for both recognition as an SAA, and for recognition to register CTE 
apprenticeship programs.
    (9) Collection of data and quality metrics concerning CTE 
apprenticeship.
    (i) CTE apprentice information.
    (A) Within 30 calendar days of the start of a CTE apprentice's 
term, the

[[Page 3291]]

program sponsor must submit to its Registration Agency in a format 
prescribed by the Administrator:
    (1) Individual apprentice record level information in accordance 
with any applicable Federal laws, rules and regulations (which includes 
sec. 444 of the General Education Provisions Act, as amended, commonly 
known as the Family Educational Rights and Privacy Act (FERPA)), 
including demographic information, education level, and veteran status;
    (2) The industry skills framework and occupation, if applicable, in 
which the CTE apprentice is to be trained;
    (3) The beginning date and term (duration) of the registered CTE 
apprenticeship program and the graduated schedule of wages; and
    (4) Any additional CTE apprentice-related information that the 
Administrator considers appropriate or necessary for the efficient 
operation of the National Apprenticeship System.
    (B) At the end of each academic semester, the program sponsor must 
report a change in a CTE apprentice's status, including additional 
receipt of services and attainment of outcomes, to its Registration 
Agency in a manner prescribed by the Administrator regarding the 
following apprentice outcomes and services:
    (1) Change in registered CTE apprenticeship status (completion or 
cancellation);
    (2) Credentials attained during participation;
    (3) Change in employment or education status after participation;
    (4) Wage progression during participation;
    (5) Supportive services provided; and
    (6) Any additional outcomes or services information that the 
Administrator considers appropriate or necessary for the efficient 
operation of the National Apprenticeship System.
    (ii) Program sponsor information and quality metrics.
    (A) Within 30 days of the change in status and no less than on an 
annual basis, for each registered CTE apprenticeship program and 
industry skills framework in which CTE apprentices are being trained, a 
program sponsor must report to the Registration Agency, in a manner 
prescribed by the Administrator, the following information:
    (1) Up-to-date contact information for each employer participating 
in the registered CTE apprenticeship program and, if applicable, the 
collective bargaining signatories;
    (2) Up-to-date copies of any agreements the sponsor has with each 
employer participating in the registered CTE apprenticeship program and 
with each CTE apprentice;
    (3) Information about which employers participating in the 
registered CTE apprenticeship program have canceled their participation 
in a program;
    (4) Up-to-date information about the program's coordination with 
credentialing agencies;
    (5) Up-to-date contact information for those individual(s) 
designated and authorized under the registered CTE apprenticeship 
program to receive, process, and make disposition of complaints filed 
by CTE apprentices under both this part and part 30 of this title;
    (6) All unreimbursed costs to the CTE apprentice; and
    (7) Any additional sponsor- or program-level information that the 
Administrator considers appropriate or necessary for the efficient 
operation of the National Apprenticeship System.
    (B) On an annual basis, for each registered CTE apprenticeship 
program and industry skills framework, the following quality metrics 
will be calculated by the Registration Agency, in a format prescribed 
by the Administrator:
    (1) The total number of new and active CTE apprentices annually 
training in the sponsor's program under a CTE apprenticeship agreement;
    (2) The total number of CTE apprentices who successfully completed 
the sponsor's program annually;
    (3) The annual completion rate for CTE apprentices;
    (4) The cohort completion rate for registered CTE apprentices, 
which must be calculated by comparing the number of apprentices in a 
designated apprenticeship cohort who successfully completed the 
sponsor's requirements and attained a certificate of completion of 
registered CTE apprenticeship with the number of apprentices in that 
cohort who initially began training in the program;
    (5) The placement rate of exiters in registered apprenticeship 
programs under subpart A of this part, postsecondary educational 
programs, or employment, at the time of program completion;
    (6) The percentage of exiters that receive at least one recognized 
postsecondary credential at time of exit;
    (7) Wage at exit; and
    (8) Any additional sponsor- or program-level information that the 
Administrator considers appropriate or necessary for the efficient 
operation of the National Apprenticeship System.
    (iii) Information and reports to be made publicly available by the 
Registration Agency.
    (A) The Administrator will make on an annual basis general 
information relating to registered CTE apprenticeship programs along 
with the information described in paragraph (g)(9)(ii) of this section 
publicly available. Upon request of the sponsor, the Administrator may 
decide not to make the information described in paragraph (g)(9)(ii) of 
this section publicly available for good cause.
    (B) Unless otherwise prohibited by Federal law, the Administrator 
will make publicly available a national summary report of CTE 
apprentices and their outcomes, disaggregated by race, ethnicity, sex, 
disability status, and other categories determined by the 
Administrator.
    (C) In addition to the metrics in paragraph (g)(9)(iii)(B) of this 
section, the Registration Agency must use supplemental sources, such as 
wage records and surveys, to calculate at a national or State level at 
least the following additional metrics:
    (1) The placement and retention rate in postsecondary educational 
programs, registered apprenticeship programs, or employment, calculated 
6 and 12 months after program completion;
    (2) The annualized average and median earnings of a registered CTE 
apprenticeship program's former apprentices, calculated over the 6-
month period after registered apprenticeship completion; and
    (3) The percentage of all completers of a registered CTE 
apprenticeship program who, at 1 year after program completion, are 
earning an income that allows them to support themselves and their 
families, or have been placed in a postsecondary educational program or 
career pathway program.
    (D) The Administrator may also conduct evaluations and longitudinal 
studies to assess the impact and improve the effectiveness of 
registered CTE apprenticeship programs.
    (E) The Registration Agency may decide to withhold from publication 
certain information contained in paragraphs (g)(9)(iii)(A), (B), and 
(C) of this section for good cause.
    (iv) Reporting. Sponsors must report the information described in 
paragraphs (g)(9)(i) and (ii) of this section in a manner prescribed by 
the Registration Agency.
    (v) Reporting requirements for State Apprenticeship Agencies.
    (A) SAAs with an approved State Apprenticeship Plan to serve as a 
Registration Agency for CTE apprenticeship are required to collect

[[Page 3292]]

the information from sponsors described in paragraphs (g)(9)(i) and 
(ii) of this section.
    (B) No less frequently than on a quarterly basis, SAAs must report 
the information collected from sponsors discussed in paragraphs 
(g)(9)(i) and (ii)(A) of this section.
    (C) On an annual basis, the SAA will report the information 
collected under paragraph (g)(9)(ii)(B) of this section to the 
Administrator.
    (D) The Administrator will make the information collected from 
paragraph (g)(9)(iii) of this section publicly available.
    (E) SAAs may meet these requirements by either:
    (1) Utilizing a Department-provided case management system; or
    (2) Maintaining a State system that is capable of reporting 
individual apprentice record level information to OA in a manner 
prescribed by the Administrator, and that meets minimum security 
requirements as prescribed by the Administrator.
    (10) Exemptions. Requests for exemption from any provision of this 
subpart must be made in writing to the Administrator and must contain a 
statement of reasons.

Subpart C--Administration and Coordination of the National 
Apprenticeship System


Sec.  29.25  Collection of data and quality metrics concerning 
apprenticeship.

    (a) Apprentice information.
    (1) Within 30 calendar days of the start of an apprentice's 
participation in a registered apprenticeship program, the program 
sponsor must submit to its Registration Agency, in a format prescribed 
by the Administrator, the following information:
    (i) Individual apprentice level information that includes 
demographic information, education level, and veteran status;
    (ii) Receipt of pre-apprenticeship services prior to participation 
in apprenticeship, if applicable;
    (iii) The occupation in which the apprentice is to be trained;
    (iv) The date the individual became an apprentice;
    (v) The beginning date and term (duration) of the apprenticeship, 
the date of the beginning of on-the-job training, the full graduated 
schedule of wages including the journeyworker wage, and the approximate 
time to be spent in each work process in the occupation; and
    (vi) Any additional apprentice-related information required by the 
Administrator.
    (2) Within 30 calendar days of a change in an apprentice's status, 
the program sponsor must submit the following information to its 
Registration Agency:
    (i) Change in apprenticeship status (completion, transfer, 
suspension, or cancellation);
    (ii) Interim credentials attained;
    (iii) Employment status;
    (iv) Wage progression;
    (v) Supportive services provided; and
    (vi) Any additional apprentice outcomes or services information 
required by the Administrator.
    (b) Program sponsor information and quality metrics.
    (1) Within 30 days of the change in status, for each registered 
apprenticeship program and occupation, a program sponsor must report to 
the Registration Agency, in a manner prescribed by the Administrator, 
the following information:
    (i) Up-to-date contact information for the program sponsor 
(including headquarters);
    (ii) Up-to-date contact information for each participating employer 
in the program and, if applicable, the collective bargaining 
signatories;
    (iii) An up-to-date copy of the program standards adoption 
agreement with the sponsor for each participating employer;
    (iv) Information about which participating employers have canceled 
their participation in a program;
    (v) Up-to-date information about the program's coordination with 
credentialing agencies;
    (vi) Up-to-date contact information for those individual(s) 
designated and authorized under the registered apprenticeship program 
to receive, process, and make disposition of complaints filed by 
apprentices under both this part and part 30 of this title;
    (vii) All unreimbursed costs to the apprentice; and
    (viii) Any additional sponsor or program level information required 
by the Administrator.
    (2) On an annual basis, for each registered apprenticeship program 
and occupation, in a format prescribed by the Administrator, the 
following quality metrics will be calculated:
    (i) The total number of apprentices served annually in the 
sponsor's program under an apprenticeship agreement;
    (ii) The total number of apprentices who successfully completed the 
sponsor's program annually;
    (iii) The annual completion rate for apprentices.
    (iv) The cohort completion rate for apprentices, which must be 
calculated by comparing the number of apprentices in a designated 
apprenticeship cohort who successfully completed the sponsor's 
requirements and attained a Certificate of Completion with the number 
of apprentices in that cohort who initially began training in the 
program;
    (v) The median length of time for program completion;
    (vi) The employment retention rate at the time of exit;
    (vii) The percentage of exiters that receive at least one interim 
credential at time of exit;
    (viii) The percentage of exiters that enter postsecondary education 
or a career pathway program at time of exit;
    (ix) Apprentice wage at time of exit;
    (x) Information and data relating to any pre-apprenticeship 
programs with which the sponsor has established a documented 
partnership; and
    (xi) Any additional sponsor or program level information required 
by the Administrator.
    (c) Information and reports to be made publicly available by the 
Registration Agency.
    (1) The Registration Agency will make publicly available on an 
annual basis general information relating to registered apprenticeship 
programs along with the information described in paragraph (b)(2) of 
this section.
    (2) The Registration Agency will make publicly available an annual 
State or national summary report of apprentices and their outcomes, 
disaggregated by race, ethnicity, sex, disability status, and other 
categories determined by the Administrator.
    (3) In addition to the metrics in paragraph (c)(2) of this section, 
the Registration Agency must use supplemental sources, such as wage 
records and surveys, to calculate at a national or State level, at 
least the following additional metrics:
    (i) The post-apprenticeship employment retention rate, calculated 6 
and 12 months after program exit;
    (ii) The annualized average and median earnings of a registered 
apprenticeship program's former apprentices, calculated over the 6-
month period after program completion;
    (iii) The percentage of all completers of a registered 
apprenticeship program who, at 1 year after program completion, are 
earning an income that allows them to support themselves and their 
families, have been placed in a postsecondary educational program, or a 
career pathway program; and
    (iv) Registration Agency metrics including median time for 
registration, number of programs approved and denied registration, and 
post-

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registration customer satisfaction ratings of sponsors for technical 
assistance and other services provided in relation to registration 
activities from the Registration Agency.
    (4) The Administrator may also conduct evaluations and longitudinal 
studies to assess the impact and improve the effectiveness of 
registered apprenticeship programs.
    (5) The Registration Agency may decide to withhold from publication 
certain information contained in paragraphs (c)(1), (2), and (3) of 
this section for good cause.


Sec.  29.26  Roles and responsibilities of State Apprenticeship 
Agencies.

    (a) In general. An SAA, recognized by the Administrator pursuant to 
Sec.  29.27(c), is authorized to undertake, for Federal purposes, the 
following actions regarding registered apprenticeship programs within 
that State:
    (1) Implementing apprenticeship-related laws and policies, provided 
that the Administrator has previously approved such laws pursuant to 
Sec.  29.27(c)(1) or Sec.  29.27(c)(2);
    (2) Reviewing, approving, disapproving, and amending standards of 
apprenticeship submitted by potential or existing program sponsors, and 
registering apprenticeship programs within 90 days of a complete 
submission for Federal purposes in that State;
    (3) Prescribing the content of apprenticeship agreements, and 
registering apprentices who have signed valid apprenticeship agreements 
with registered apprenticeship program sponsors and participating 
employers;
    (4) Providing technical assistance to registered apprenticeship 
program sponsors, participating employers, registered apprentices, 
intermediaries, and other apprenticeship stakeholders;
    (5) Collecting and reporting to OA any apprenticeship-related data 
from program sponsors, participating employers, and individual 
apprentices described in Sec. Sec.  29.25 and 29.28;
    (6) Conducting program reviews of approved registered 
apprenticeship programs;
    (7) Establishing policies and procedures to promote EEO for 
apprentices and applicants for apprenticeship in registered 
apprenticeship programs consistent with the requirements in part 30 of 
this title;
    (8) Establishing the basic standards, criteria, and requirements 
for program registration, and providing for the suspension or 
deregistration of programs;
    (9) Establishing a process for the registration, suspension, or 
cancellation of apprenticeship agreements;
    (10) Investigating complaints filed under this part or part 30 of 
this title; and
    (11) Functioning as a Registration Agency for registered CTE 
apprenticeship programs pursuant to Sec.  29.24.
    (b) Nondelegable duties of State Apprenticeship Agencies. In order 
for a State to be eligible to obtain or maintain full or provisional 
recognition status as described in Sec.  29.27(c), a State cannot 
delegate, assign, devolve, or relinquish any of the functions that are 
the responsibility of the SAA under paragraph (a) of this section, 
including any matters relating to the intake, evaluation, approval, 
registration, monitoring, oversight, suspension, or deregistration of 
apprenticeship programs and standards of apprenticeship within that 
State, to any external third-party entity, including a State 
Apprenticeship Council established pursuant to paragraph (c) of this 
section.
    (c) Requirement to establish State Apprenticeship Councils. An SAA 
is required under this rule to establish and maintain a State 
Apprenticeship Council, which must operate under the direction of the 
SAA. The State Apprenticeship Council may provide the SAA with written, 
nonbinding advice, recommendations, research, and reports concerning 
apprenticeship-related matters, and on the submission of the State 
Apprenticeship Plan.
    (1) Composition. Members of the State Apprenticeship Council must 
be individuals who are familiar with occupations suitable for 
registered apprenticeship, apprenticeship programs, and opportunities 
across a wide range of industries and sectors. A State Apprenticeship 
Council must be fairly balanced and inclusive of underserved 
communities, with an equal number of--
    (i) Employers or representatives of employer organizations, 
including from sectors and occupations where apprenticeship is not 
currently widespread;
    (ii) Representatives of labor organizations or joint labor-
management organizations, including from non-traditional apprenticeship 
industries or occupations; and
    (iii) Other members representing the general public, which must at 
least include:
    (A) One representative who represents the State's workforce 
development system; and
    (B) One representative of a secondary or postsecondary education 
system who is familiar with registered apprenticeship.
    (2) Limitations on State Apprenticeship Councils. A State 
Apprenticeship Council is ineligible for recognition as an SAA under 
this part and is prohibited under this part from assuming or 
discharging the functions described in paragraph (a) of this section.
    (d) Reciprocity of registration. An SAA must establish a process 
for providing approval to apprentices, apprenticeship programs, and 
standards of apprenticeship that are registered in other States by OA 
or by an SAA for Federal purposes. Such a process must provide a timely 
response to a request for reciprocity no later than 45 days after 
receipt of a program sponsor's application for reciprocity. The 
reciprocity process established by an SAA must:
    (1) Ensure that the program sponsor meets the statutory and 
regulatory wage and hour requirements and apprentice-to-journeyworker 
ratios of the State in which reciprocal approval is sought;
    (2) Ensure that the program and individual apprentices who will 
work in the State are properly registered with the SAA; and
    (3) Ensure that the program sponsor develop standards that prepare 
apprentices to meet or exceed the minimum requirements of State or 
local occupation licensure, if applicable.


Sec.  29.27  Recognition of State Apprenticeship Agencies.

    (a) Application for recognition as a State Apprenticeship Agency. 
To obtain recognition or seek renewal of recognition as an SAA for 
Federal purposes, a State governmental entity must submit a State 
Apprenticeship Plan addressing the requirements described in paragraph 
(b) of this section.
    (1) Timing. States seeking to obtain or renew recognition as an SAA 
must submit a State Apprenticeship Plan beginning December 31, 2026. 
Recognition, either full or provisional, will be granted for a period 
of 4 years from the date of the Administrator's approval.
    (i) State Apprenticeship Plans must be submitted to the 
Administrator at least 120 days prior to the date when an SAA is 
seeking recognition.
    (ii) State governmental entities recognized by the Administrator as 
an SAA prior to the effective date of this rule must submit a State 
Apprenticeship Plan described in paragraph (b) of this section no later 
than September 1, 2026,

[[Page 3294]]

to be considered for recognition after December 31, 2026. The period of 
recognition for this submission is for the time period covering January 
1, 2027, through June 30, 2030.
    (iii) Subsequent State Apprenticeship Plan submissions are for 4-
year periods beginning July 1, 2030.
    (iv) State Apprenticeship Plans submitted and approved outside of 
the time periods described in paragraphs (a)(1)(ii) and (iii) of this 
section must still submit a State Apprenticeship Plan to the 
Administrator consistent with the timing described in either paragraph 
(a)(1)(ii) or (iii) of this section.
    (2) Modifications to approved State Apprenticeship Plans.
    (i) An approved State Apprenticeship Plan requires modification and 
resubmission:
    (A) When changes in Federal or State law or policy substantially 
affect the roles and responsibilities of the SAA described in Sec.  
29.26;
    (B) When proposed State laws may affect an SAA's compliance with 
the requirements of paragraph (b) of this section;
    (C) When there are significant changes in the strategies, goals, 
and priorities upon which the State Apprenticeship Plan is based; and
    (D) When there are significant changes in the statewide vision, 
strategies, policies, operational procedures, or organizational 
structure of the SAA.
    (ii) Modifications may be requested by the SAA for any other reason 
at any time during the 4-year period of the plan, including:
    (A) When the SAA is seeking to change its plan status from 
provisional to full approval;
    (B) When the SAA seeks recognition as a Registration Agency for the 
purposes of subpart B of this part; or
    (C) For any other reason at the discretion of the SAA.
    (iii) Modifications to an approved State Apprenticeship Plan must 
be submitted to the Administrator at least 120 days prior to the 
requested effective date of the modification.
    (iv) Modified State Apprenticeship Plans remain approved until the 
end of the original cycle of the Plan.
    (b) State Apprenticeship Plan contents. The State Apprenticeship 
Plan described in paragraph (a) of this section must include the 
following:
    (1) Apprenticeship laws. The State's proposed or current 
apprenticeship laws, which must include provisions that:
    (i) Allow registration for Federal purposes for only those 
occupations that have been determined suitable for registered 
apprenticeship pursuant to Sec.  29.7;
    (ii) Meet or exceed the requirements for protecting the safety and 
welfare of apprentices set forth at the following regulatory 
provisions:
    (A) The standards of apprenticeship enumerated at section Sec.  
29.8;
    (B) The apprenticeship agreement elements identified in Sec.  29.9;
    (C) The program registration requirements of Sec.  29.10;
    (D) The program standards adoption agreement requirements of Sec.  
29.11;
    (E) The qualifications of apprentice trainers and providers of 
related instruction requirements of Sec.  29.12;
    (F) The end-point assessment and certification of program 
completion requirements of Sec.  29.16;
    (G) The complaints requirements of Sec.  29.17;
    (H) The recordkeeping requirements of Sec.  29.18;
    (I) The procedural requirements of Sec. Sec.  29.19 through 29.22;
    (J) The SAA requirements of Sec.  29.26;
    (K) The reporting requirements for SAAs of Sec.  29.28; and
    (L) The EEO requirements at part 30 of this title.
    (2) Strategic planning elements:
    (i) Goals for expansion. A narrative summary of the State's 
strategic vision and strategy for expanding registered apprenticeship 
programs, promoting program quality, and for meeting the skilled 
workforce needs of employers through apprenticeship, including both 
existing and emerging high-growth industries and occupations as 
identified by the State. The narrative must include any goals or 
metrics the State will use to achieve its vision.
    (ii) Promoting registered apprenticeship programs for underserved 
communities. A narrative description that addresses the State's 
strategic plan for increasing access to and support within registered 
apprenticeship for individuals from underserved communities, which must 
include:
    (A) The current apprentice participants in the State by race, 
ethnicity, sex, disability status, and veteran status;
    (B) The goals and milestones the State will utilize to track 
progress towards the strategic plan.
    (iii) Aligning education and workforce development activities. The 
State must provide a narrative of the strategic alignment of workforce 
development activities in the State with the SAA, including--
    (A) A description of any coordination or leveraging of State 
planning and registered apprenticeship programs under WIOA and any 
milestones the State will use to track progress;
    (B) A description of any efforts or processes the SAA has developed 
with the State Workforce Agency to enhance or increase the leveraging 
of registered apprenticeship programs on the State list of eligible 
providers of training services under section 122(d) of WIOA;
    (C) An assessment of how registered apprenticeship programs in the 
State meet employers' workforce needs as identified by the State 
workforce development board or State Workforce Agency;
    (D) A description of current activities to coordinate with the 
State's education system, including institutions of higher education, 
LEAs, State CTE and Educational Agencies, and other educational 
entities that support CTE programs and career pathways;
    (E) A description of current activities and goals in coordinating 
with economic development entities in the State; and
    (F) A description of the State's strategy for engaging and 
leveraging intermediaries as defined in Sec.  29.2.
    (G) A description of any efforts to align and leverage 
apprenticeship-related data with education system and workforce 
development system data.
    (3) Operational planning elements. States must submit the following 
information to OA:
    (i) State EEO plan. In conformity with part 30 of this title, 
provide a plan that describes how the SAA will promote EEO for 
apprentices and applicants for apprenticeship in registered 
apprenticeship programs.
    (ii) Technical assistance. Describe the State's technical 
assistance strategies for the period covered in the State 
Apprenticeship Plan.
    (iii) Data reporting. Describe the process for meeting quarterly 
and annual reporting requirements at Sec. Sec.  29.25 and 29.28, 
including a description of how the SAA will collect and report 
apprentice and sponsor records to the Department.
    (iv) Program reviews. Describe the SAA's plan for conducting 
program reviews for the period covered in the State Apprenticeship 
Plan.
    (v) Registration standards. Describe how the SAA plans to 
operationalize its policy regarding: establishing the basic standards, 
criteria, and requirements for program registration; and providing for 
the temporary suspension, cancellation, or deregistration of programs.
    (vi) Reciprocity. Describe how the State will operationalize its 
policy for providing reciprocity for registered apprenticeship programs 
in accordance with Sec.  29.26(d).

[[Page 3295]]

    (vii) State Apprenticeship Council. Describe how the State 
Apprenticeship Council is structured consistent with the requirement of 
Sec.  29.26(b) and (c).
    (4) Assurances. The State must provide the following assurances and 
any applicable statutory or regulatory citations:
    (i) That the State will provide a process for local registration of 
National Guidelines for Apprenticeship Standards recognized by the 
Administrator pursuant to Sec.  29.15.
    (ii) That the State has sufficient resources to carry out the 
functions of an SAA, including outreach and education; registration of 
programs and apprentices; provision of technical assistance, and 
monitoring of programs as required to fulfill the requirements of this 
part.
    (iii) That the State will make available on a publicly available 
website a description of any laws (including regulations), policies, 
and operational procedures relating to the process of reviewing, 
registering, and assessing registered apprenticeship programs under the 
State's apprenticeship system, including those that impose requirements 
in addition to this rule, as well as any approved State Apprenticeship 
Plans.
    (iv) That the State requires a written assurance from any sponsors 
registered by the State that they are complying with the requirements 
of the Support for Veterans in Effective Apprenticeships Act of 2019 
(Pub. L. 116-134, 134 Stat. 277, 29 U.S.C. 50c).
    (5) Optional recognition of an SAA for registered CTE 
apprenticeship. An SAA seeking recognition to serve as a Registration 
Agency for registered CTE apprenticeship must submit the following 
elements:
    (i) The State's proposed or current registered CTE apprenticeship 
laws as described in Sec.  29.24(g)(8).
    (ii) A written agreement between the State entity seeking 
recognition and the State's CTE Agency as described in Sec.  
29.24(a)(2).
    (iii) A narrative summary of the State's strategic vision and 
strategy for expanding registered CTE apprenticeship programs under 
subpart B of this part.
    (c) State apprenticeship recognition designations. After review of 
the State Apprenticeship Plan described in paragraph (a) of this 
section, OA will convey, in writing from the Administrator, one of 
three designations for Federal purposes:
    (1) Full recognition if the Administrator has determined:
    (i) The State's apprenticeship laws meet or exceed the minimum 
standards as described in paragraph (b)(1) of this section.
    (ii) The State's Plan includes all strategic planning elements that 
are complete and responsive to the requirements in paragraph (b)(2) of 
this section.
    (iii) The State's Plan includes all operational elements that are 
complete and responsive to the requirements in paragraph (b)(3) of this 
section.
    (iv) The State's Plan includes all of the assurances as required in 
paragraph (b)(4) of this section.
    (2) Provisional recognition if the Administrator has determined 
that the State's apprenticeship laws meet or exceed the minimum 
standards described in paragraph (b)(1) of this section and that the 
State's Plan includes all of the assurances described in paragraph 
(b)(4) of this section, but further determines that:
    (i) The strategic planning elements described in paragraph (b)(2) 
of this section or the operational elements described in paragraph 
(b)(3) of this section are either incomplete or nonresponsive; and
    (ii) Any deficiencies identified in paragraph (c)(2)(i) of this 
section are resolvable with technical assistance provided by OA and a 
corrective action plan is submitted by the State and approved by the 
Administrator. A State may be provisionally recognized for no more than 
one full planning cycle.
    (3) Denial of recognition if the Administrator determines:
    (i) That the State's apprenticeship laws do not meet the minimum 
standards described in paragraph (b)(1) of this section; or
    (ii) That the SAA is unable to be fully approved within one full 
planning cycle after having been provisionally recognized, as described 
in paragraph (c)(2) of this section.
    (iii) The process and procedures for such denial of recognition are 
described in Sec.  29.29.
    (d) Retention of registration authority of the Office of 
Apprenticeship. Notwithstanding any approval of a State Apprenticeship 
Plan providing recognition to an SAA under this section, the 
Administrator will retain the authority to register apprenticeship 
programs and apprentices on both a local and nationwide basis for 
Federal purposes in any State when the Administrator determines that a 
sponsor seeking registration has satisfied the requirements for 
registration described in this part and where such action would further 
the interests of the National Apprenticeship System.
    (e) Periodic reviews. OA will monitor and review the compliance of 
an SAA to ensure that it is operating consistent with its approved 
State Apprenticeship Plan, in instances where the Administrator 
determines that such a review is warranted.
    (f) Derecognition of State Apprenticeship Agency's full or 
provisional recognition status. The Administrator may derecognize an 
SAA with full or provisional recognition when the Administrator 
determines that the SAA is not operating consistent with its approved 
State Apprenticeship Plan. The processes and procedures for such 
derecognition are described in Sec.  29.29.
    (g) Suspension of provisionally approved State Apprenticeship 
Agency. The Administrator may suspend the authority of a provisionally 
approved SAA to register new apprenticeship programs for failure to 
submit, and receive OA's approval of, a corrective action plan as 
required in paragraph (c)(2) of this section. The Administrator will 
provide written notice to the provisionally approved SAA of the 
suspension, which will take effect 30 calendar days after the date of 
the written notice. The suspension will end upon the State's submission 
of a corrective action plan.
    (h) Limitation of State activities without recognition. If OA 
denies a State Apprenticeship Plan pursuant to paragraph (c)(3) of this 
section, or derecognizes an SAA pursuant to paragraph (f) of this 
section, the State must not conduct the activities specified in Sec.  
29.26(a) until OA conveys full recognition, as described in paragraph 
(c)(1) of this section, or provisional recognition, as described in 
paragraph (c)(2) of this section.


Sec.  29.28  Reporting requirements for State Apprenticeship Agencies.

    (a) SAAs are required to collect the information from sponsors 
described in Sec.  29.25(a) and (b).
    (b) On at least a quarterly basis, SAAs must report the information 
collected from sponsors described in paragraphs (a) and (b)(1) of Sec.  
29.25 to OA.
    (c) On an annual basis, the SAA will report the information 
collected underSec.  29.25(b)(2) to the Administrator.
    (d) The Administrator will make the information described in 
paragraph (c) of this section publicly available.
    (e) SAAs may meet the requirements in paragraphs (a) through (c) of 
this section by either:
    (1) Utilizing a Department-provided case management system; or
    (2) Maintaining a State system that is capable of reporting 
individual apprentice record level information to OA in a manner 
prescribed by the Administrator, and that meets minimum

[[Page 3296]]

security requirements prescribed by the Administrator.


Sec.  29.29  Denial of a State Apprenticeship Plan for recognition as a 
State Apprenticeship Agency and derecognition of existing State 
Apprenticeship Agencies.

    (a) Process and procedures.
    (1) If the Administrator denies a State Apprenticeship Plan 
pursuant to Sec.  29.27(c)(3) or derecognizes an SAA pursuant to Sec.  
29.27(f), the Administrator will issue a written notice that includes:
    (i) The reason(s) for the denial or derecognition;
    (ii) The needed remedial measure(s); and
    (iii) The timeframe for addressing those measures, which will be no 
longer than 12 months from the date of the written notice.
    (2) If the State has failed to take adequate remedial measures in 
the timeframe provided in the written notice, the Administrator may 
issue a final determination that will include the reason(s) for the 
denial or derecognition and state in the final determination that the 
State may request a hearing with OALJ within 30 calendar days of the 
date of the final determination.
    (3) Requests for a hearing must be sent to OALJ within 30 calendar 
days from the date of a final determination from the Administrator. A 
copy of the request for a hearing must be simultaneously sent to the 
Administrator, who must transmit it to the Associate Solicitor for 
Employment and Training Legal Services, Office of the Solicitor, U.S. 
Department of Labor. The Administrator will promptly provide OALJ with 
the administrative file containing all documents relied on by the 
Administrator or designee to deregister the program or to issue the 
Administrator's final determination.
    (4) The procedures contained in part 18 of this title will apply to 
the disposition of the request for review except that:
    (i) The Administrative Law Judge will receive, and make part of the 
record, documentary evidence offered by any party and accepted at the 
hearing. Copies thereof will be made available by the party submitting 
the documentary evidence to any party to the hearing upon request.
    (ii) Technical rules of evidence will not apply to hearings 
conducted under this part, but rules or principles designed to assure 
the production of the most credible evidence available and to subject 
testimony to test by cross-examination will be applied, where 
reasonably necessary, by the Administrative Law Judge conducting the 
hearing. The Administrative Law Judge may exclude irrelevant, 
immaterial, or unduly repetitious evidence.
    (iii) The request for a hearing will not be considered to be a 
complaint to which an answer is required.
    (iv) The Administrative Law Judge may authorize discovery and the 
filing of pre-hearing motions, and so limit them to the types and 
quantities in the Administrative Law Judge's discretion will contribute 
to a fair hearing without unduly burdening the parties.
    (5) The Administrative Law Judge must issue a written decision 
within 90 calendar days of the close of the hearing record. The 
Administrative Law Judge must uphold the Administrator's decision 
unless it is shown by the sponsor to be arbitrary, capricious, an abuse 
of discretion, or otherwise not in accordance with the law. The 
Administrative Law Judge's decision constitutes final agency action of 
the Department unless, within 15 calendar days from receipt of the 
decision, a party dissatisfied with the decision files a petition for 
review with the ARB in accordance with part 26 of this title, 
specifically identifying the procedure, fact, law, or policy to which 
exception is taken. Any exception not specifically urged is deemed to 
have been waived. A copy of the petition for review must be served on 
OA at the same time in accordance with part 26 of this title. 
Thereafter, the decision of the Administrative Law Judge remains final 
agency action unless the ARB, within 30 calendar days of the filing of 
the petition for review, notifies the parties that it has accepted the 
case for review. The ARB may set a briefing schedule or decide the 
matter on the record. The ARB must issue a decision in any case it 
accepts for review within 180 calendars of the close of the record. If 
a decision is not so issued, the Administrative Law Judge's decision 
constitutes final agency action.
    (6) An SAA may request voluntary withdrawal from its recognition 
status for Federal purposes at any time. The Administrator will 
derecognize the SAA after the State sends a formal notice of withdrawal 
to the Administrator.
    (b) Administrator actions after derecognition. When an existing SAA 
has been denied recognition pursuant to Sec.  29.27(c)(3), has been 
derecognized by OA pursuant to Sec.  29.27(f), or when an SAA voluntary 
withdraws from recognition as described in paragraph (a)(6) of this 
section, the Administrator must:
    (1) Notify the sponsors in the State of the derecognition and 
effect public notice of such derecognition.
    (2) Notify the sponsors that, 45 calendar days after the date of 
the determination to derecognize the SAA, the Department will cease to 
recognize, for Federal purposes, each apprenticeship program previously 
registered with the SAA, unless within that time, the sponsor submits 
an application for registration with OA, pursuant to the following:
    (i) Within 90 days of receiving the application for registration, 
the Office of the Apprenticeship will review the application to 
determine if it meets the requirements for registration described in 
Sec.  29.10(a).
    (ii) OA will approve an application for registration in accordance 
with the procedures and requirements described in Sec.  29.10(b).
    (iii) OA will deny an application for registration if the 
application does not meet the requirements in Sec.  29.10(b). The 
procedures described in Sec.  29.10(c) apply to any applications for 
registration that are declined.
    (c) State obligations after derecognition. Where an existing SAA 
has been denied recognition, has been derecognized by OA, or has 
voluntarily withdrawn from recognition, the State must:
    (1) Provide all apprenticeship program standards, apprenticeship 
agreements, completion records, cancellation and suspension records, 
EEO compliance review files, and any other documents relating to the 
State's registered apprenticeship programs, to the Department;
    (2) Within 15 calendar days of receiving a final determination, 
unless the State requests a hearing as described in paragraph (a)(3) of 
this section, advise all sponsors that any benefits of registration for 
Federal purposes are no longer available to the apprentices in its 
apprenticeship program as of 45 calendar days after the date of the 
Administrator's final determination. The communication from the State 
must direct that all apprentices are referred to OA for information 
about potential transfer to other registered apprenticeship programs; 
and
    (3) Cooperate fully with the Administrator during a transition 
period.


Sec.  29.30  Apprenticeship requirements in other laws.

    The Administrator or recognized SAA may provide a Certificate of 
Participation to employers and government agencies to demonstrate a 
program sponsor's or participating employer's compliance with any 
Federal purpose or State benefit associated with a program's or

[[Page 3297]]

apprentice's participation in a registered apprenticeship program. 
Disclosure of information in accordance with this section must comply 
with applicable Federal or State information and privacy laws.

PART 30--EQUAL EMPLOYMENT OPPORTUNITY IN APPRENTICESHIP

0
2. The authority citation for part 30 continues to read as follows:

    Authority: Sec. 1, 50 Stat. 664, as amended (29 U.S.C. 50; 40 
U.S.C. 276c; 5 U.S.C. 301); Reorganization Plan No. 14 of 1950, 64 
Stat. 1267, 3 CFR 1949-53 Comp. p. 1007.

0
3. Revise Sec.  30.2 to read as follows:


Sec.  30.2  Definitions.

    The definitions in Sec.  29.2 also apply to this part.
0
4. Amend Sec.  30.3 by revising paragraph (b)(2)(i) to read as follows:


Sec.  30.3  Equal opportunity standards applicable to all sponsors.

* * * * *
    (b) * * *
    (2) * * *
    (i) Publish its equal opportunity pledge--set forth in paragraph 
(c) of this section--in the standards of apprenticeship required under 
part 29 of this title, and in appropriate publications, such as 
apprentice and employee handbooks, policy manuals, newsletters, or 
other documents disseminated by the sponsor or that otherwise describe 
the nature of the sponsorship;
* * * * *
0
5. Amend Sec.  30.5 by revising paragraphs (b)(2) and (c)(6) to read as 
follows:


Sec.  30.5  Utilization analysis for race, sex, and ethnicity.

* * * * *
    (b) * * *
    (2) Schedule of analyses. Each sponsor is required to conduct an 
apprenticeship program workforce analysis at each program review, and 
again if and when 3 years have passed without a program review. This 
updated workforce analysis should be compared to the utilization goal 
established at the sponsor's most recent program review to determine if 
the sponsor is underutilized, according to the process in paragraph (d) 
of this section.
* * * * *
    (c) * * *
    (6) Sponsors, working with the Registration Agency, will conduct 
availability analyses at each program review.
* * * * *
0
6. Amend Sec.  30.7 by revising paragraph (d)(2)(ii) to read as 
follows:


Sec.  30.7  Utilization goals for individuals with disabilities.

* * * * *
    (d) * * *
    (2) * * *
    (ii) Schedule of evaluation. The sponsor must conduct its 
apprentice workforce analysis at each program review, and again if and 
when 3 years have passed without a program review. This updated 
workforce analysis, grouped according to major occupation group, should 
then be compared to the utilization goal established under paragraph 
(a) of this section.
* * * * *
0
7. Amend Sec.  30.10 by revising paragraph (a) to read as follows:


Sec.  30.10  Selection of apprentices.

    (a) A sponsor's procedures for selection of apprentices must be 
included in the written plan for standards of apprenticeship submitted 
to and approved by the Registration Agency, as required under part 29 
of this title.
* * * * *
0
8. Amend Sec.  30.12 by revising paragraphs (a)(3) and (f) to read as 
follows:


Sec.  30.12  Recordkeeping.

    (a) * * *
    (3) Information relative to the operation of the apprenticeship 
program, including but not limited to job assignments in all components 
of the occupation as required under part 29 of this title, promotion, 
demotion, transfer, layoff, termination, rates of pay, other forms of 
compensation, conditions of work, hours of work, hours of training 
provided, and any other personnel records relevant to EEO complaints 
filed with the Registration Agency under Sec.  30.14 or with other 
enforcement agencies;
* * * * *
    (f) Access to records. Each sponsor must permit access during 
normal business hours to its places of business for the purpose of 
conducting on-site program reviews and complaint investigations and 
inspecting and copying such books, accounts, and records, including 
electronic records, and any other material the Registration Agency 
deems relevant to the matter under investigation and pertinent to 
compliance with this part. The sponsor must also provide the 
Registration Agency access to these materials, including electronic 
records, off site for purposes of conducting program reviews and 
complaint investigations. Upon request, the sponsor must provide the 
Registration Agency information about all format(s), including specific 
electronic formats, in which its records and other information are 
available. Information obtained in this manner will be used only in 
connection with the administration of this part or other applicable EEO 
laws.
0
9. Amend Sec.  30.13 by revising the section heading, paragraph (a), 
the introductory text of paragraph (b) and paragraph (c) to read as 
follows:


Sec.  30.13  Program reviews.

    (a) Conduct of program reviews. The Registration Agency will 
regularly conduct program reviews to determine if the sponsor maintains 
compliance with the EEO requirements contained in this part, and will 
also conduct such reviews when circumstances so warrant. A program 
review under this part may consist of, but is not limited to, 
comprehensive analyses and evaluations of each aspect of the 
apprenticeship program through off-site reviews, such as desk audits of 
records submitted to the Registration Agency, and on-site reviews 
conducted at the sponsor's establishment that may involve examination 
of records required under this part; inspection and copying of 
documents related to recordkeeping requirements of this part; and 
interviews with employees, apprentices, journeyworkers, supervisors, 
managers, and hiring officials.
    (b) Notification of program review findings. Within 45 days of 
completing a program review, the Registration Agency must present a 
written Notice of Program Review Findings to the sponsor's contact 
person through registered or certified mail, with return receipt 
requested. If the program review indicates a failure to comply with 
this part, the Registration Agency will so inform the sponsor in the 
Notice and will set forth in the Notice the following:
* * * * *
    (c) Compliance. (1) When a sponsor receives a Notice of Program 
Review Findings that indicates a failure to comply with this part, the 
sponsor must, within 45 days of notification, either implement a 
compliance action plan and notify the Registration Agency of that plan 
or submit a written rebuttal to the Findings.
* * * * *
0
10. Amend Sec.  30.14 by revising paragraphs (c)(1)(iv) and (v) and 
adding paragraph (vi) to read as follows:


Sec.  30.14  Complaints.

* * * * *
    (c) * * *
    (1) * * *

[[Page 3298]]

    (iv) Complete a thorough investigation of the allegations of the 
complaint and develop a complete case record that must contain, but is 
not limited to, the name, address, and telephone number of each person 
interviewed, the interview statements, copies, transcripts, or 
summaries (where appropriate) of pertinent documents, and a narrative 
report of the investigation with references to exhibits and other 
evidence that relate to the alleged violations;
    (v) Provide written notification of the Registration Agency's 
findings to both the respondent and the complainant; and
    (vi) Protect the identity of the complainant to the extent 
practicable.
* * * * *
0
11. Amend Sec.  30.15 by revising the introductory text and paragraph 
(b) to read as follows:


Sec.  30.15  Enforcement actions.

    Where the Registration Agency, as a result of a program review, 
complaint investigation, or other reason, determines that the sponsor 
is not operating its apprenticeship program in accordance with this 
part, the Registration Agency must notify the sponsor in writing of the 
specific violation(s) identified and may:
* * * * *
    (b) Suspend the sponsor's right to register new apprentices if the 
sponsor fails to implement a compliance action plan to correct the 
specific violation(s) identified within 45 days from the date the 
sponsor is so notified of the violation(s), or, if the sponsor submits 
a written response to the findings of noncompliance, fails to implement 
a compliance action plan within 45 days of receiving the Registration 
Agency's notice upholding its initial noncompliance findings. If the 
sponsor has not implemented a compliance action plan within 45 days of 
notification of suspension, the Registration Agency may institute 
proceedings to deregister the program in accordance with the 
deregistration proceedings set forth in part 29 of this title.
* * * * *
0
12. Amend Sec.  30.17 by revising paragraph (a)(3) to read as follows:


Sec.  30.17  Intimidation and retaliation prohibited.

    (a) * * *
    (3) Furnished information to, or assisted or participated in any 
manner, in any investigation, program review, proceeding, or hearing 
under this part or any Federal or State equal opportunity law; or
* * * * *
0
13. Amend Sec.  30.18 by revising paragraphs (a)(1), (3), and (4), (b), 
(c)(1) and (3), and (d) to read as follows:


Sec.  30.18  State Apprenticeship Agencies.

    (a) State EEO plan. (1) Within 1 year of January 18, 2017, unless 
an extension for good cause is sought and granted by the Administrator, 
an SAA that seeks to obtain or maintain recognition under part 29 of 
this title must submit to OA a State EEO plan that:
* * * * *
    (3) If the State does not submit a revised State EEO plan that 
addresses identified nonconformities within 90 days from the date that 
OA provides the SAA with written notification of the areas of 
nonconformity, OA will begin the process set forth in part 29 of this 
title to rescind recognition of the SAA.
    (4) An SAA that seeks to obtain or maintain recognition must obtain 
the Administrator's written concurrence in any proposed State EEO plan, 
as well as any subsequent modification to that plan, as provided in 
part 29 of this title.
    (b) Recordkeeping requirements. A recognized SAA must keep all 
records pertaining to program reviews, complaint investigations, and 
any other records pertinent to a determination of compliance with this 
part. These records must be maintained for 5 years from the date of 
their creation.
    (c) Retention of authority. As provided in part 29 of this title, 
OA retains the full authority to:
    (1) Conduct program reviews of all registered apprenticeship 
programs;
* * * * *
    (3) Deregister for Federal purposes an apprenticeship program 
registered with a recognized SAA as provided in part 29 of this title; 
and
* * * * *
    (d) Derecognition. A recognized SAA that fails to comply with the 
requirements of this section will be subject to derecognition 
proceedings, as provided in part 29 of this title.
0
14. Add Sec.  30.20 to read as follows:


Sec.  30.20  Severability.

    Should a court of competent jurisdiction hold any portion of any 
provision(s) of this part to be invalid, the provision will be 
construed so as to continue to give the maximum effect to the provision 
permitted by law, unless such holding is one of total invalidity or 
unenforceability, in which event the provision or subprovision will be 
severable from this part and will not affect the remainder thereof.

Brent Parton,
Principal Deputy Assistant Secretary for Employment and Training, 
Labor.
[FR Doc. 2023-27851 Filed 1-16-24; 8:45 am]
BILLING CODE 4510-FR-P


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