2023 California Code › Labor Code - LAB › DIVISION 3 - EMPLOYMENT RELATIONS › CHAPTER 4 - Apprenticeship and Preapprenticeship › ARTICLE 1 - Administration › Section 3073.1.

3073.1. (a) The division shall evaluate apprenticeship and preapprenticeship programs to ensure that the program evaluated is complying with its standards, that all on-the-job training is supervised by journeypersons, that all classroom instruction required by the apprenticeship or preapprenticeship standards is being provided, that all work processes in the standards are being covered, that graduates have completed the program’s requirements, and that any funds received under this chapter were properly obtained and are being expended appropriately. The division shall examine each apprenticeship program to determine whether apprentices are graduating from or completing the program on schedule or dropping out and to determine whether graduates of the apprenticeship program have obtained employment as journeypersons. During the evaluation, the division shall attempt to contact a statistically valid sample of apprentices who have dropped out of the program prior to completion to determine their reasons for leaving the program. Every program sponsor shall have a duty to cooperate with the division in conducting an evaluation.
(b) Evaluation reports for building and construction trade and firefighting programs shall be presented to the California Apprenticeship Council and reports concerning any other program shall be presented to the Interagency Advisory Committee on Apprenticeship. The division shall make reports public, except that the division shall not make public information that would infringe on the privacy of individuals. The division shall recommend remedial action to correct deficiencies recognized in the audit report, and the failure to follow division recommendations or to correct deficiencies within a reasonable period of time shall be grounds for withdrawing state approval of a program. In any case in which a program has willfully violated any of the laws, regulations, or orders governing apprenticeship programs, funding provided to apprenticeship programs and associated entities, applicants for apprenticeship, or apprentices registered under this chapter, the division may initiate the deregistration process to withdraw state approval of the program. Nothing shall prevent the division from conducting evaluations of programs where deficiencies have been identified or where it receives information that a program is not being operated in accordance with applicable federal and state laws and regulations or the program’s approved program standards. If a program is found to be using funds provided under this chapter for purposes other than those for which the funds were granted or is found to have obtained the funds improperly, then the program shall not be eligible to receive any future funding from the same funding program and the division may initiate the deregistration process to withdraw state approval of the program.
(c) (1) The division may suspend registrations of new apprentice agreements by providing written notice of the reasons for the suspension. The division shall provide such notice at least 10 days before the suspension is effective and shall serve the notice on the program by electronic mail, or by mail if the program does not have an electronic mail address on file.
(2) If the division does not initiate deregistration proceedings within 45 days of the effective date of the suspension, the suspension is lifted.
(3) If deregistration proceedings are pending when the notice of suspension is served, or the division initiates deregistration proceedings within 45 days of the effective date of the suspension, the suspension will remain in effect until one of the following occurs:
(A) A decision on the deregistration is final.
(B) The division provides written notice that it has dismissed deregistration proceedings.
(C) The division lifts the suspension, upon a showing of good cause.
(4) A program affected by a suspension under this section may appeal to the Administrator of Apprenticeship within 10 days of the effective date of the suspension. If the administrator does not act within 30 days of the appeal, the appeal is deemed denied.
(d) The division shall give priority in conducting evaluations to programs that have been identified as having deficiencies. The division may conduct simplified evaluations for programs with fewer than five registered participants.
(e) One year following the creation of a new program or substantial expansion of an existing program, the division shall evaluate the program for quality and conformity with the requirements of this section.
(f) If the division finds evidence that information provided to it by an apprenticeship program has been purposefully misstated, including information provided to obtain funding under this chapter, the division shall immediately investigate and determine whether an evaluation of the program or deregistration is necessary. After such investigation, the division may initiate the deregistration process to withdraw state approval of the program. The division shall report its investigatory findings for building and construction trade and firefighting programs to the California Apprenticeship Council and shall report its investigatory findings for all other programs to the Interagency Advisory Committee on Apprenticeship. The division shall make the investigatory findings available to the public, except that the division shall not make public information that would infringe upon the privacy of individuals.
(g) If the division determines that an apprenticeship program has been the subject of two or more meritorious complaints that concern the recruitment, training, or education of apprentices within a five-year period, the division shall schedule the program for an evaluation within three months of the determination.
(h) If the division determines that an apprenticeship program that has had at least two graduating classes has an annual apprentice completion rate below 50 percent of the average completion rate for the applicable occupation, the division shall schedule the program for an evaluation within three months of the determination.
(Amended by Stats. 2023, Ch. 131, Sec. 142. (AB 1754) Effective January 1, 2024.)