1. NATIONAL APPRENTICESHIP ACT REVISED REGULATIONS TITLE 29, C.F.R. PART 29 Notice: This training document does not supersede and shall not be construed to contradict any laws, regulations, published instructions, or other guidance in any form from the U.S. Department of Labor.

2. PRESENTERS  Dana Daugherty, Deputy Administrator, Office of Apprenticeship, DOL  Karin Brown, Executive Assistant, Office of Apprenticeship, DOL MODERATOR  Franchella Kendall, Chief, Division of National Standards and Industry Promotion, Office of Apprenticeship, DOL 2

3. 1.Explain stakeholder involvement in the process to revise the regulations 2.Describe major changes to regulations 3.Refer to the preamble of Title 29 Part 29 for guidance and in discussions with stakeholders 4.Use and refer to the Regulations At A Glance and other materials prepared by ETA 5.Explain and discuss next steps PRESENTATION OBJECTIVES 3

4.  Overview  Regulations Module I: Preamble & § 29.1 – § 29.3  Regulations Module II: § 29.4 & § 29.5  Regulations Module III: § 29.6 – § 29.8  Regulations Module IV: § 29.9 – § 29.14  Conclusion & Next Steps AGENDA 4

5. OVERVIEW

6.  Advance the National Apprenticeship System by providing new options and increased flexibility  Promote Apprenticeship as a critical talent development strategy for today’s regional economies  Strengthen the National Apprenticeship System by providing consistency and continuity across the system  Establish a consistent framework to promote improved performance outcomes and quality OVERVIEW Goals of Revised Regulations 6

7. OVERVIEW Opportunity for Registered Apprenticeship  Promotes and advances Registered Apprenticeship −Critical talent development strategy  Align National Apprenticeship System with needs of today’s workers  Meet needs of a broad range of employers through flexibility −Competency and hybrid apprenticeship models  Provides consistency and accountability across the system to enhance program quality and performance  Expand linkages and partnerships with workforce investment and education systems 7

9. OVERVIEW Supporting Materials 9  Federal Register Notice – Preamble to 29 CFR Part 29  Side-by-Side-by-Side −Shows the 1977 regulations, the proposed regulations (the NPRM), and the final revised regulations  Regulations At A Glance for 10 topics

10.  Preamble  § 29.1 Purpose and scope  § 29.2 Definitions  § 29.3 Eligibility and procedure for registration of an apprenticeship program  § 29.4 Criteria for apprenticeable occupations  § 29.5 Standards of apprenticeship  § 29.6 Program performance standards  § 29.7 Apprenticeship agreement  § 29.8 Deregistration of a registered program  § 29.9 Reinstatement of program registration  § 29.10 Hearings for deregistration  § 29.11 Limitations  § 29.12 Complaints  § 29.13 Recognition of State Apprenticeship Agencies  § 29.14 Derecognition of State Apprenticeship Agencies OVERVIEW Regulation Sections 10

11.  Provisional registration (§ 29.3)  Three approaches to completion of apprenticeship (§ 29.5)  Related instruction (§ 29.5)  Interim credentials (§ 29.5)  Program performance standards, including addition of completion rates (§ 29.6)  Reciprocal approval (§ 29.13)  Recognition of SAAs (§ 29.13) 11 OVERVIEW Key Changes

12. QUESTION & ANSWER

13. REGULATIONS MODULE I: Preamble, Purposes and Scope (§ 29.1), Definitions (§ 29.2) & Eligibility Procedures (§ 29.3)

14.  Contained in the first 24 pages (64402 - 64425) of the final rule published in the Federal Register Notice (73 FR 64402, Oct. 29, 2008)  If there is a dispute about what the regulation means, the preamble is the first source for the intent of the regulation when drafted Regulations Module I Preamble 14

15.  Defines purpose and scope of the regulation  Key change: promoting apprenticeship opportunity “The purpose of this part is to set forth labor standards to safeguard the welfare of apprentices, promote apprenticeship opportunity and to extend the application of such standards by prescribing policies and procedures concerning the registration, for certain Federal purposes, of acceptable apprenticeship programs with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship.” Regulations Module I Purpose & Scope § 29.1 15

16. Regulations Module I Definitions § 29.2 16 Definition Revisions  Apprenticeship Agreement  Apprenticeship Committee  Certification  Registration Agency  Related Instruction  State Apprenticeship Agency  State Apprenticeship Council

17. Regulations Module I Definitions § 29.2 17 New Definitions  Competency  Completion Rate  Electronic Media  Interim Credential  Journeyworker  Provisional Registration  Quality Assurance Assessment  Transfer  Technical Assistance  Office of Apprenticeship  State Office

18.  § 29.3 addresses process for determining program eligibility −Includes oversight process for registered programs  Final Rule carries forward major provisions of original regulation  Important changes: −Provisional registration −Program reviews −Time frames Regulations Module I Eligibility and Procedure for Registration of an Apprenticeship Program § 29.3 - Overview 18

19.  Intent is to enhance program quality/assist sponsors  Provisional approval for 1 year  Review for quality and conformity at end of 1 st year  1 st year review outcomes: −Full recognition −Continue provisional registration through the first training cycle −Recommendation for derecognition (if not in operation or not conforming to the regulations) 19 Regulations Module I § 29.3 – Provisional Registration

20.  Satisfactory review ends provisional approval  Subsequent reviews no less than every 5 years  SAA may review more frequently  Satisfactory review in a timeframe shorter than the typical five years may result in provisional registration being transformed to permanent registration 20 Regulations Module I § 29.3 – Program Reviews

21.  90-day time frame for Registration Agencies to respond to sponsors’ proposals and modifications to standards −Change incorporates stakeholder feedback −Alignment with quarterly SAC/SAA meetings  45-day time frame for sponsor to notify registration agency regarding other changes 21 Regulations Module I § 29.3 – Time Frames for Responses for Proposals & Modifications

22. QUESTION & ANSWER

23. REGULATIONS MODULE II: Apprenticable Occupations (§ 29.4) Standards of Apprenticeship (§ 29.5)

24.  Contains provisions for determining if an occupation qualifies as apprenticable  Carries forward major provisions of the original regulation, with some key changes −Replaces “on-the-job training” and “work experience” with “on-the-job-learning” −Deletes term “skilled trade” when describing an apprenticeable occupation −Specifies that the occupation must involve the progressive attainment of manual, mechanical or technical skills and knowledge which, in accordance with the industry standard for the occupation, would require the completion of at least 2,000 hours of on-the-job learning to attain Regulations Module II Criteria for Apprenticable Occupations § 29.4 24

25.  Section regulates standards for apprenticeship programs  Five major components: −Terms of apprenticeship § 29.5(b)(2) −Provision for related instruction § 29.5(b)(4) −Probationary period § 29.5(b)(8) −Transfer § 29.5(b)(13) −Interim credentials § 29.5(b)(16) 25 Regulations Module II Standards of Apprenticeship § 29.5 - Overview

26. Three Approaches for Completion of Apprenticeship  Time-based  Competency-based −On-the-Job-Learning (OJL) −Competencies −Testing and Evaluation  Hybrid  Choice made by program sponsor, subject to Registration Agency approval Regulations Module II § 29.5 – Terms of Apprenticeship 26

27.  Journeyworkers – subject matter experts, exempt from state Department of Education requirements  Instructors – training in teaching techniques and adult learning styles  Electronic media – use in related instruction permitted −Broad definition permits flexibility −Appropriateness/use in related instruction determined by program sponsor Regulations Module II § 29.5 – Related Instruction 27

28.  Probationary Period cannot exceed: −25% of program length or −One year  NPRM commenter concerns about undefined length −Potential to impact completion rate 28 Regulations Module II § 29.5 – Probationary Period

29.  Transfer must: − Be based on an agreement between the apprentice and the affected apprenticeship committees or program sponsors −Provide a transcript of related instruction and OJL −Be to same occupation  ETA will work with SAAs and program sponsors to develop policy guidance 29 Regulations Module II § 29.5 – Transfer

30.  Definition  Criteria for developing interim credentials: −Must clearly identify the interim credential −Demonstrate how credentials link to components of the apprenticeable occupation −Establish process for assessing an apprentice’s demonstration of competency −Only issued for recognized components of an apprenticeable occupation −Must link specifically to the knowledge, skills and abilities associated with the apprenticeable occupation 30 Regulations Module II § 29.5 – Interim Credentials

31. QUESTION & ANSWER

32. REGULATIONS MODULE III: Program Performance Standards (§ 29.6) Apprenticeship Agreement (§ 29.7) Deregistration of a Registered Program (§ 29.8)

33.  New section – provisions for program performance standards  Focus on program quality and performance  Components: −One registered apprentice −Evaluation of program performance −Definition and use of completion rates Regulations Module III Program Performance Standards § 29.6 33

34.  Every program must have at least one registered apprentice  Identifies exception periods based on stakeholder input: −Between program registration and date of first apprentice −Between apprentice graduation and date of registering next apprentice −Exceptions may not exceed 1 year Regulations Module III § 29.6 – At Least One Registered Apprentice 34

35.  Tools and factors for evaluation −Quality Assurance Assessment Review −Completion Rates −Equal Employment Opportunity Compliance Review  Additional tools and factors must adhere to DOL goals and policies Regulations Module III § 29.6 – Evaluate Program Performance 35

36.  Defined in § 29.2  Based on national average of completion rates  Help Registration Agencies identify programs to provide technical assistance Regulations Module III § 29.6 – Completion Rates 36

37.  During probationary period: −Apprentice and sponsor are exploring agreement −Apprentice or sponsor can cancel without cause −Cancellations have no adverse impact on completion rate  Framework guards against cancellations during probationary period impacting program completion rates Regulations Module III § 29.6 – Apprentice Agreement Cancellations 37

38.  Section addresses requirements for apprenticeship agreements  Final Rule: −Carries forward existing provisions −Allows inclusion of apprentice Social Security Number Strictly voluntary basis −Adds provision to include statements about on-the- job learning component for programs using competency-based or hybrid approach Regulations Module III Apprenticeship Agreement § 29.7 38

39.  Section addresses factors and process leading to deregistration  Final Rule carries over most language from original rule  Additional language gives examples of factors that can contribute to deregistration: o Failure to provide on-the-job-learning o Failure to provide related instruction o Failure to pay apprentice appropriate wages o Persistent and significant failure to perform successfully under new standards in § 29.6 (at least one apprentice, quality assurance assessments, completion rates) 39 Regulations Module III Deregistration of a Registered Program § 29.8

40. QUESTION & ANSWER

41. REGULATIONS MODULE IV: Administrative Components (§ 29.9 - § 29.14)

42.  Administrative Changes −Reinstatement of program registration § 29.9 −Hearings for deregistration § 29.10 −Limitations § 29.11 −Complaints § 29.12 −Derecognition § 29.14 42 Regulations Module IV Administrative Components

43.  Recognition of SAAs  Carries forward requirement to establish State Apprenticeship Councils (SACs)  Reciprocal approval  Proposed state modifications in legislation, regulations, policies and/or operational procedures 43 Regulations Module IV Recognition of SAAs § 29.13 – Overview I

44.  5-year recognition period  Review/monitoring of SAAs  Linkage with state economic development strategies and publicly funded workforce system  SAAs have up to a two-year transition to apply for continued recognition 44 Regulations Module IV Recognition of SAAs § 29.13 – Overview II

45.  Removes the exemption for building and construction industry for Federal purposes −Federal purposes includes any/all Federal agreements, arrangements or assistance (financial or otherwise) relating to apprenticeship  Programs seeking reciprocity with a host state must meet: −Wage and hour provisions −Apprentice ratio standards 45 Regulations Module IV § 29.13 – Reciprocal Approval

46.  SAAs to submit all proposed modifications relating to apprenticeship −Legislation −Regulations −Policies −Operational procedures  Office of Apprenticeship reviews for concurrence 46 Regulations Module IV § 29.13 – Proposed Modifications

47.  Provides SAAs for a two-year transition to make necessary changes  Establishes 5-year period for SAA recognition −Provides process for renewal and maintenance of recognition  New provision for DOL review and monitoring of Registration Agencies −Codifies existing procedures for determining compliance 47 Regulations Module IV § 29.13 – Recognition Period & Monitoring

48.  SAA to demonstrate linkages with: −State economic development strategies −Publicly-funded workforce investment system  Aligns with efforts to expand apprenticeship into high-growth, high-demand occupations  SAA location provision not carried forward −Flexibility for states 48 Regulations Module IV § 29.13 – Linkages & SAA Location

49. QUESTION & ANSWER

50. CONCLUSION / NEXT STEPS

51.  Provisional registration (§ 29.3)  Three approaches to completion of an apprenticeship program (§ 29.5)  Electronic media (§ 29.5)  Interim credentials (§ 29.5)  Program performance standards, including addition of completion rates (§ 29.6)  Recognition of SAAs (§ 29.13)  Reciprocal approval (§ 29.13) CONCLUSION / NEXT STEPS Key Changes 51

52.  Performance standards  Electronic media and related instruction  Competency-based apprenticeship  Interim credentials  Provisional registration  Transfer of apprentices  Submission of materials for recognition/continued recognition −SAAs 52 CONCLUSION / NEXT STEPS Policy Guidance

53.  Step 1: Prioritizing and framing the issues −Occurs November 2008 – March 2009 −Includes webinars, consultations, and informational briefings  Step 2: Information collection, clarification & early engagement −Occurs December 2008 – March 2009 − Includes Action Clinics, ACA meeting, Q&A response, staff training, and issue webinars 53 CONCLUSION / NEXT STEPS Policy Guidance Development Timeline I

54.  Step 3: Develop and draft policy guidance −Occurs in 2009 −Working groups address policy development  Step 4: Implementation and issuance of policy guidance −Phased in −Time frame is TBD 54 CONCLUSION / NEXT STEPS Policy Guidance Development Timeline II

55.  Develop guidance for operations and procedural aspects −Provisional registration  Enhance RAPIDS to accommodate new provisions, especially: −Provisional registration −Programs with competency-based and hybrid approaches −Interim credentials 55 CONCLUSION / NEXT STEPS Guidance for Operations & Procedures

56.  Engage all stakeholders moving forward  Series of webinars on specific areas −Competency-based programs −Interim credentials  Opt-in electronic newsletter “Earn. Learn. Succeed.” −To register visit: http://devdti.haverstick.biz/apprenticeship/ http://devdti.haverstick.biz/apprenticeship/ 56 CONCLUSION / NEXT STEPS Comprehensive Engagement Strategy

57.  Updated information on OA Web site: http://www.doleta.gov/oa/regulations.cfm http://www.doleta.gov/oa/regulations.cfm −Questions and Answers −Regulations At A Glance for 10 topics −Brochures  Central e-mail for questions and inquiries: Regs.Apprenticeship@dol.gov Regs.Apprenticeship@dol.gov −Questions and inquires will help develop resources and training −Sponsors, SAAs, and other stakeholders are encouraged to submit questions 57 CONCLUSION / NEXT STEPS Comprehensive Engagement Strategy

58. THANK YOU! Regs.Apprenticeship@dol.gov 58