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DEPARTMENT OF LABOR

Veterans Employment and Training Service

CFR Citation: 29 CFR Part 29

RIN ID: RIN 1205-AB50

NOTICE: Part V

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

SUBJECT CATEGORY: Apprenticeship Programs, Labor Standards for Registration, Amendment of Regulations

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

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

SUMMARY: Labor Department,

SUPPLEMENTAL INFORMATION

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

I. Background

The National Apprenticeship Act of 1937 authorized DOL to formulate and promote the furtherance of labor standards necessary to safeguard the welfare of apprentices, to extend the application of such standards by encouraging the inclusion thereof in contracts of apprenticeship, to bring together employers and labor for the formulation of programs of apprenticeship, and to cooperate with State agencies engaged in the formulation and promotion of standards of apprenticeship * * *

In the 30 years since the Department promulgated the existing standards at 29 CFR part 29 that provide for the registration of apprenticeship programs, technological advances, demographic changes, and globalization have significantly altered the context in which apprenticeship programs operate. The revision of part 29 will enable the National Apprenticeship System to keep pace with changes in the economy and corresponding workforce challenges, continue
apprenticeship's vital role in developing a skilled, competitive workforce, and further promote registered apprenticeship as an important talent development strategy offered through the public workforce investment system. For example, the proposed revisions enhance flexibility in the requirements for provision of related technical instruction, permit competencybased progression through an apprenticeship program, and establish requirements for education and training of apprenticeship instructors that align with developments in the workforce and education systems.

In developing the proposed rule, DOL consulted extensively with its Advisory Committee on Apprenticeship (ACA). Chartered under the Federal Advisory Committee Act (FACA), the ACA provides advice and recommendations to the Secretary of Labor (Secretary) on a wide range of matters related to apprenticeship. The ACA is comprised of approximately 30 members with equal representation of employers, labor organizations, and the public. In June
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2006, the ACA unanimously adopted the draft regulatory text developed by the Committee's Work Group on Regulations and CompetencyBased Training and, in August 2006, forwarded the recommended text to the Department. The ACA's recommendations focused on the provisions of existing part 29 (Sec. Sec. 29.1 through 29.11) that pertain to apprenticeship program standards, registration and deregistration.

In addition to updating the provisions that address DOL's registration and oversight of apprenticeship programs, the Department proposes to revise the provisions of existing part 29 (Sec. Sec. 29.12 and 29.13) that pertain to administration of the National
Apprenticeship System. The Department drafted the proposed regulatory text with input from the National Association of State and Territorial Apprenticeship Directors (NASTAD) and from State Apprenticeship Agencies. The proposed provisions effectuate the Department's mandate under the National Apprenticeship Act by establishing clear accountability within the National Apprenticeship System.
II. Summary and Discussion of Regulatory Provisions: Labor Standards for the Registration of Apprenticeship Programs

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

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

Proposed revisions in Sec. 29.1(b) add an additional purpose to this section to ``promote apprenticeship opportunity.'' This addition would further articulate the Department's mandate under the National Apprenticeship Act of 1937 to expand the National Apprenticeship System. In recent years, the Department has engaged in several pilot and demonstration programs to expand apprenticeship opportunities for workers in industries that have not traditionally used the registered apprenticeship model. This proposed addition would implement the Department's intention to further expand registered apprenticeship into new industries and occupations, and to continue to align registered apprenticeship with the changing workforce needs of business and industry.

The Department proposes to delete existing Sec. 29.1(c), which provides contact information for individuals requesting further information about part 29. The information in this paragraph is outof date. The Department has determined that contact information should not be codified, given the rate at which it becomes obsolete, so Sec. 29.1(c) is proposed for deletion.

Proposed Sec. 29.2 clarifies and redesignates existing definitions and establishes new definitions for certain terms used in the registration of apprenticeship programs and in the ongoing operations of the National Apprenticeship System. Proposed Sec. 29.2 organizes the definitions alphabetically. Thus, there is no longer a need to designate paragraphs in this section using an alphanumeric format. In addition, the proposed rule adds new definitions for the terms ``competency,'' ``electronic media,'' ``interim credential,'' ``journeyworker,'' ``Office of Apprenticeship,'' ``provisional registration,'' ``State office,'' ``supplemental instruction,'' ``technical assistance,'' and ``transfer.'' Most of the revisions and additions reflect changes that State Apprenticeship Agencies, apprenticeship program sponsors, and the Department have incorporated into the National Apprenticeship System in the last decade. Those proposed definitions provide underpinnings for proposed provisions that offer greater flexibility for registered apprenticeship programs to address changing workforce demands.

The Department proposes to carry forward the following existing definitions for terms defined in the current regulations:
``administrator,'' ``apprentice,'' ``apprenticeship program,'' ``cancellation,'' ``Department,'' ``employer,'' ``Federal purposes,'' ``registration of an apprenticeship agreement,'' ``registration of an apprenticeship program,'' ``sponsor,'' and ``State.'' Accordingly, the Department is not inviting comment on those terms.

Proposed Sec. 29.2 revises the existing definitions for ``apprenticeship agreement'' and ``apprenticeship committee'' to clarify that an apprenticeship agreement is between an apprentice and either the apprentice's program sponsor, or an apprenticeship committee acting as an agent for the program sponsor. Program sponsor is a more appropriate term than ``employer,'' which is used in the current regulations for the entity with which the apprentice enters an apprenticeship agreement because the apprenticeship program sponsor is the entity that signs the apprenticeship agreement. The revision to ``apprenticeship committee'' clarifies that the committee acts as an agent for the sponsor in the administration of an apprenticeship program.

Proposed Sec. 29.2 revises the existing term ``certification'' to be ``certification or certificate'' and revises the existing definition. The proposed definition carries forward the existing provisions for certification of National Guidelines for Apprenticeship Standards and certification that an individual is eligible for probationary employment as an apprentice under a registered apprenticeship program. The proposed definition also incorporates two circumstances (issuance of a certificate that documents completion of apprenticeship, as provided in Sec. 29.5(b)(15), and issuance of a Certificate of Registration, as provided in Sec. 29.3(f)) that correspond to existing requirements but have not been previously included in the definition of certification. The proposed definition also adds the circumstance where a Registration Agency determines that an apprentice has successfully met the requirements to receive an interim credential. This added component of the definition facilitates compliance with proposed Sec. 29.5(b)(15), which provides for the issuance of an interim credential.

Proposed Sec. 29.2 adds definitions for two related terms, ``interim credential'' and ``competency.'' These definitions would be added because, in the past 6 years, business, industry, and labor have requested a more flexible and accountable National Apprenticeship System that meets their workforce development needs. To address these requests, the Department conducted pilot programs in which sponsors measured apprentices' attainment of certain skills and competencies rather than using the traditional, timebased approach.

To this end, the Department has defined ``interim credential'' as ``a document issued by the Registration Agency upon request of the appropriate sponsor as certification of competency attainment by an apprentice;'' and ``competency'' as ``the attainment of manual or technical skills and knowledge, as specified by an occupational standard.'' Rather than providing that an apprentice could only receive one credential (certificate of completion of apprenticeship), which is the norm under a timebased apprenticeship approach, the proposed definitions and the associated regulatory provisions would enable apprentices to obtain portable credentials
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commensurate with increasing skills and competencies acquired and demonstrated throughout an apprenticeship program.

These proposed definitions also implement the Department's intention to provide multiple points of entry to and exit from apprenticeship programs, and would codify the Department's existing practice of registering apprenticeship programs that issue interim credentials. These provisions will formalize the process used in the pilot programs and further promote apprenticeship opportunities to employees and employers that have not previously participated in the National Apprenticeship System.

Proposed Sec. 29.2 adds a new definition for ``electronic media'' for use in related technical instruction and defines the term to mean ``media that utilize electronics or electromechanical energy for the end user (audience) to access the content, and includes, but is not limited to, electronic storage media, transmission media, the Internet, extranet, lease lines, dialup lines, private networks, and the physical movement of removable/transportable electronic media and/or interactive distance learning.'' This definition provides for increased flexibility in the related technical instruction component of an apprenticeship program and enables the National Apprenticeship System to keep pace with the changing dynamics and progressive nature of education through distance learning and multiple delivery approaches. Additionally, the proposed definition would clarify that related technical instruction in the National Apprenticeship System is not confined to a physical classroom setting. The Department based this proposed definition on consultations with the ACA and NASTAD.

Proposed Sec. 29.2 adds a new definition, ``journeyworker,'' which is ``a worker who has attained a level of skill and competency recognized within an industry as having mastered the skills and competencies required for the occupation.'' The Department proposes to add this definition to provide a designation of a level of skill, ability and knowledge possessed by an individual in a specific occupation, as defined and used by employers, industry, and labor, which is recognized as having attained mastery of that occupation. The definition is based on industry norms and common language used in the National Apprenticeship System.

Proposed Sec. 29.2 adds a new term, the ``Office of Apprenticeship,'' which is defined as ``the office designated by the Employment and Training Administration to administer the National Apprenticeship System or its successor organization.'' This definition would be added in anticipation of any future name changes to the DOL entity responsible for oversight of the National Apprenticeship System. The definition is based on DOL's organizational structure for administration of the National Apprenticeship System.

Proposed Sec. 29.2 adds a new term, ``provisional registration'' which refers to the 1 year provisional approval of a newly registered apprenticeship program. This definition has been added to facilitate compliance with Sec. 29.3(g), through which the Department seeks to ensure that new program sponsors are focused on development of successfully functioning apprenticeship programs.

Further, proposed Sec. 29.2 expands the current definition of ``Registration Agency,'' by listing the primary responsibilities of a registration agency to facilitate compliance with the requirements of this part.

Proposed Sec. 29.2 revises the current definition of ``related instruction,'' by adding ``related technical instruction'' as part of the defined term. The proposed text specifies the methods by which related instruction may be provided and adds distance learning through ``electronic media'' as defined in this section to the instructional methods that traditionally have been used. The revisions are based on the need for clarification of what constitutes related technical instruction and the acceptable methods for delivering related instruction.

Proposed Sec. 29.2 revises the existing definition of ``Secretary'' to mean the Secretary of Labor or any person designated by the Secretary. This revision explains who has authority to implement the revisions of this part.

The Department proposes to revise the definitions for State Apprenticeship Agency and State Apprenticeship Council by separately defining the two entities. ``State Apprenticeship Agency'' is defined as ``an agency of a State government that has responsibility and accountability for apprenticeship within the State.'' The proposed revisions provide that State Apprenticeship Agencies may seek recognition and authority from the Office of Apprenticeship to register and oversee apprenticeship programs and agreements for Federal purposes. The proposed revisions also reflect the Department's view that it is best to recognize only State government entities, in order to ensure accountability for oversight and management of a State's apprenticeship system for Federal purposes.

The Department proposes to separately define ``State Apprenticeship Council'' to help underscore the role a council would play in a State Apprenticeship Agency. The proposed revisions clarify that a State Apprenticeship Council is ineligible for recognition as the State's Registration Agency. The definition is based on the Department's view that it is best to recognize only State government agencies as Registration Agencies. The proposed definition also clarifies that a State Apprenticeship Council operates at the direction and discretion of the State Apprenticeship Agency. Depending on this direction and discretion, a State Apprenticeship Council may provide regulatory or advisory functions for the operation of the State's apprenticeship system.

Proposed Sec. 29.2 adds a definition for ``State office,'' to facilitate compliance with proposed Sec. 29.13(b)(3) and the requirements for recognition of a State Apprenticeship Agency. The definition is based on the need to have a single identified point of contact with whom the Department will conduct the business of the National Apprenticeship System.

Proposed Sec. 29.2 adds a new term, ``supplemental instruction,'' which is defined as ``instruction in noncore related requirements, for example, job site management, leadership, communications, firstaid/ CPR, field trips, and new technologies/processes.'' This new definition would facilitate compliance with proposed Sec. Sec. 29.5(b)(4) and 29.7(e). The Department proposes this definition to make it clear that supplemental instruction focuses on noncore job requirements in response to requests from business, industry, and labor seeking clarification on the difference between related technical instruction and supplemental instruction.

Proposed Sec. 29.2 adds a new term, ``technical assistance,'' to clarify the types of guidance and assistance that Registration Agencies provide to program sponsors for the implementation of this part. This new definition would spell out the guidance that a Registration Agency would provide to help program sponsors comply with the requirements of this part.

Proposed Sec. 29.2 adds a new term, ``transfer,'' which is defined as ``a shift of apprenticeship registration from one program to another, or from one employer within a program to another employer within that same program. Transfer may be initiated either by the [[Page 71023]]
employer, the sponsor, or the apprentice.'' The definition has been added to correspond to the process addressed in proposed Sec. 29.5(b)(13) for the transfer of an apprentice between and within apprenticeship programs. Apprentices' ability to transfer reduces the need for cancellation and reregistration of an apprentice, thereby promoting continuity of participation in apprenticeship.
Eligibility and Procedure for Registration of an Apprenticeship Program (Sec. 29.3)

Section 29.3 covers the eligibility criteria and procedure for registering a program of apprenticeship. The proposed revisions and additions to Sec. 29.3 update the process by which the Department or a recognized State Apprenticeship Agency determines a program's eligibility for registration and oversees the operations of registered apprenticeship programs. While the substance of the proposed Sec. 29.3 is based largely on the existing rule, some changes are proposed in order to further ensure high quality among all registered
apprenticeship programs. Additionally, the revisions will assist program sponsors by providing for early intervention and technical assistance to enable program sponsors to continue their apprenticeship programs. Further, these provisions provide program sponsors with the means to measure apprentice progress and also encourage the development of a closer working relationship between the apprenticeship sponsor and Registration Agency staff.

The Department proposes changes in paragraphs (a), (c), and (f) of proposed Sec. 29.3 to update and clarify terms, which are not intended to change the substance of those paragraphs. Proposed Sec. 29.3(b) is a revised statement of the criteria for apprenticeship program and agreement registration by a Registration Agency, that is substantially the same as the current regulation.

Proposed Sec. 29.3(d) establishes a requirement for the appropriate Registration Agency to be notified within the first 45 days of an apprentice's probationary employment. This is a change from the existing 90day requirement. Proposed Sec. 29.3(e) would require program sponsors to notify the appropriate Registration Agency within 45 days of the completion of an apprenticeship program and notice to the Registration Agency of transfers and the cancellation or suspension of any apprenticeship agreement with a statement of the reasons therefore. This would be a change to existing Sec. 29.3(e), which simply requires ``prompt'' notice to the ``appropriate registration office.'' The Department proposes these changes to Sec. Sec. 29.3(d) and 29.3(e) to require specific and consistent timeframes which are intended to enhance the efficiency of the National Apprenticeship System.

Proposed Sec. 29.3(g) is a new provision which establishes provisional approval of 1 year for new programs that the Registration Agency preliminarily determines comply with part 29. The Department would add this paragraph to increase the success rate of new programs by prescribing a review after the first year of program registration. Also, provisional registration would potentially discourage applications from prospective sponsors that do not have a longterm commitment to provide employment and training for registered apprentices.

Proposed Sec. 29.3(h) is another new provision which establishes the process by which a registered program would move beyond provisional approval and provides for subsequent reviews at the completion of the first full training cycle, normally a 5year period. Proposed paragraphs (g) and (h) are intended to ensure adequate oversight over apprenticeship programs and to further improve quality in the National Apprenticeship System.

Proposed Sec. 29.3(i) addresses the timeframe for processing a sponsor's request for modification of a registered program, to improve customer service and promote consistency across the National Apprenticeship System. The proposed rule would require the Registration Agency to complete action on the request, whether by approving or by rejecting with appropriate guidance, within 45 days of receipt. This would differ from the existing rule, Sec. 29.3(g), which simply provides for ``prompt'' submission of requests for modification and sets no timeframe for response from the Registration Agency and provides no guidance on what the Registration Agency must do to process the application or modification.

Proposed Sec. 29.3(j) would revise the timeframe set by existing Sec. 29.3(h), ``not less than 30 days nor more than 60 days,'' to provide that a union has 45 days to submit comments about a program application proposed by an employer or employers' association, where a union has the right, under a collective bargaining agreement or other instrument, to participate in an apprenticeship program but does not participate in any manner in the operation of substantive matters of the apprenticeship program. This reduced timeframe would further improve efficiency in the program registration process.

Proposed paragraph Sec. 29.3(k) simply carries forward the provisions of existing Sec. 29.3(i), which covers program registration by an employer or group of employers where the employees to be trained do not have a collective bargaining agent, and adds employer associations to the groups that can propose programs for registration. Criteria for Apprenticeable Occupations (Sec. 29.4)

Proposed Sec. 29.4 updates the criteria for determining when an occupation qualifies as apprenticeable. Based on over 30 years of experience in implementing the current regulations, the Department proposes to revise the existing introductory language to indicate that apprenticeable occupations are specified by industry, including employers and labor representatives. Changes to paragraphs (a) and (b) align these paragraphs with the proposed format for this section, and are not intended to change the substance of those paragraphs. The proposed revision to Sec. 29.4(c) updates the provision to reflect changes to the means of progression through an apprenticeship program as discussed further in Sec. 29.5(b)(2).

Proposed Sec. 29.4(d) is the same as the current regulation except that it adds ``learning'' after ``training.'' This proposed addition clarifies that registered apprenticeship involves learning subject matter relevant to an occupation, as well as training in that occupation.

Standards of Apprenticeship (Sec. 29.5)

Proposed Sec. 29.5 updates the existing standards for registered apprenticeship programs to increase the flexibility of requirements for onthejob learning, and related and supplemental instruction as defined in proposed Sec. 29.2, and provides for granting advanced standing or credit. Existing Sec. 29.5(b)(8), (b)(9), (b)(10) and (b)(14) would be carried forward unchanged and therefore are not being presented for comment. These sections are reprinted below for ease of reference.

The proposed introductory text and paragraph (a) minimally revise the existing provisions for the sake of clarity. Proposed Sec. 29.5(b) outlines the proposed requirements for program standards. Changes to paragraphs (b)(1), (b)(3), (b)(5), (b)(6), (b)(7), (b)(16), and (b)(22) in proposed Sec. 29.5 update language to use current common terms such as ``skilled occupation,'' rather than ``skilled trade;'' and ``must'' rather than ``shall.''

Proposed Sec. 29.5(b)(2), which is based on the existing requirement that work
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experience must be consistent with industry practice, presents three methods by which an individual apprentice may progress toward the industry standard for work experience required under Sec. 29.4(c). These methods are: (i) a timebased approach involving completion of at least 2,000 hours of onthejob work experience; (ii) a competency based approach involving successful demonstration of acquired skills and knowledge by an apprentice, as verified by the program sponsor; and (iii) a hybrid approach involving completion of a specified minimum number of hours plus the successful demonstration of competency. The timebased approach retains the 2,000hour minimum of onthejob work experience set by existing Sec. 29.4(c). In a competencybased approach, a program sponsor would allow an individual apprentice to demonstrate the requisite competencies for an apprenticeable occupation without having to satisfy a minimum number of hours of onthejob work experience. In a hybrid approach, a program sponsor would provide an opportunity for an individual apprentice to demonstrate requisite competencies for an apprenticeable occupation after having completed a specified minimum number of hours of onthejob work experience. For example, an apprentice may be required to complete 1,500 hours of on thejob work experience to attain basic skills and knowledge and then permitted to show the attainment of the required skills and knowledge through demonstrated competencies. The competencybased and hybrid approaches may enable an apprentice to progress through the program in less time than would be required under a timebased approach. Proposed Sec. 29.5(b)(2) will provide greater flexibility for registered apprenticeship programs to address career development plans of registered apprentices. This proposed approach reflects the experience of the traditional building and construction trades and industrial sectors with registered apprenticeship, and addresses the needs of new and emerging industries seeking to participate in the National Apprenticeship System.

Proposed Sec. 29.5(b)(4) allows for related technical instruction to be accomplished through methods such as classroom, occupational or industry courses, electronic media, or other instruction approved by the Registration Agency. Proposed paragraph (b)(4) would also establish requirements for an apprenticeship instructor, which would be similar to States' requirements such as meeting the State Department of Education's requirements for vocationaltechnical instructor, and/or being recognized as a subject matter expert. It would also require that instructors have training in teaching techniques and adult learning styles. The Department has proposed these changes to further ensure quality in the related technical instruction component of registered apprenticeship by establishing minimum standards for apprenticeship instructors. Proposed paragraph (b)(4) provides flexibility to accommodate variations in the requirements for instructors in different industries and occupations.

Proposed revisions to Sec. 29.5(b)(11) clarify that a written apprenticeship agreement must meet the requirements of the laws and regulations of a recognized Registration Agency.

Proposed Sec. 29.5(b)(12) revises the existing requirements for granting an apprentice advanced standing or credit to include demonstrated competencies. This addition provides greater flexibility for an apprentice to progress through an apprenticeship program. Proposed Sec. 29.5(b)(13) clarifies and revises the existing requirements for transfer of apprentices between apprenticeship program sponsors. While existing paragraph (b)(13) only governs transfers within the same program, the proposed paragraph governs transfers between programs as well.

Proposed paragraph (b)(13)(i) would require the program sponsor or committee to provide the transferring apprentice with a transcript of related training and onthejob learning completed. This would provide the apprentice with a portable credential that could, for example, enable the apprentice to attain advanced standing or credit under Sec. 29.5(b)(12). Proposed paragraph (b)(13)(ii) permits the transfer to be either to the same or to a related occupation in contrast to the current regulation which only mentions transfer to another employer in the same program. Proposed paragraph (b)(13)(iii) requires the execution of a new apprenticeship agreement. This expansion of transferability provides greater flexibility for apprentices, and is intended to accommodate variations in apprentices' career development plans in which an apprentice may need to transfer between
apprenticeship programs, not just within one apprenticeship program.

Proposed Sec. 29.5(b)(15) provides recognition for successful completion of apprenticeship or the attainment of an interim credential. The proposed revisions clarify that a certificate would be issued by a Registration Agency. The provision for interim credential has been added to ensure that apprentices receive credit for attaining particular skills or satisfying certain requirements as they progress in apprenticeship.

Proposed Sec. 29.5(b)(17) clarifies that any modifications or amendments to program standards must be submitted to the Registration Agency for approval.

Proposed Sec. 29.5(b)(18) simply incorporates the proposed term ``Registration Agency'' into the existing requirement for the program sponsor to notify the Registration Agency of apprenticeship completion, transfer, suspension, and cancellation of apprenticeship agreements and makes a few other clarifying changes.

Proposed Sec. 29.5(b)(19) replaces the existing term ``termination'' with a more appropriate term, ``cancellation,'' to describe the cessation of an apprenticeship agreement between an apprentice and program sponsor prior to successful completion or transfer. The term cancellation does not carry the negative connotations associated with termination, and cancellation reflects the more common language. The proposed paragraph also provides that cancellations during an apprentice's probationary period will not adversely impact the sponsor's completion rates. The proposed rule adds this provision in recognition of the fact that apprentices leave apprenticeship programs, particularly during the probationary period, for numerous reasons, many of which have nothing to do with the quality of the apprenticeship program. Excluding such cancellations from the completion rate data is appropriate to avoid stigmatizing programs that happen to have a high attrition rate during the probationary period.

Proposed Sec. 29.5(b)(20) simply consolidates the requirements for compliance with 29 CFR part 30 from the existing Sec. 29.5(b) introductory text and existing Sec. 29.5(b)(20) and provides some clarifying language.

Proposed Sec. 29.5(b)(21) updates the existing requirement for name and address of the appropriate authority to receive, process and make disposition of complaints. The proposed paragraph simply adds telephone number and email address as potential forms of contact information.

Program Performance Standards (Sec. 29.6)

Proposed Sec. 29.6 is a new provision that would set new requirements for program performance. Proposed Sec. 29.6(a) provides that an apprenticeship program must have at least one registered apprentice in order to be designated and retain designation [[Page 71025]]
as a registered apprenticeship program. This provision reflects the common sense notion that it would be pointless to have a registered program without apprentices.

Proposed Sec. 29.6(b) provides a nonexclusive list of the tools and factors that must be considered in evaluating program performance. In particular, programs will be reviewed based on quality assurance assessments, Equal Employment Opportunity Compliance Reviews, and completion rates. These factors have been specified because they would enable a Registration Agency to develop a fair understanding of program quality. The Department recognizes that other tools and factors may also be useful. Therefore, the proposed provisions in Sec. 29.6(b) are not intended to limit the Registration Agency's discretion to use other factors and tools in addition to those listed.

Proposed Sec. 29.6(c) provides for evaluation of completion rates of programs located in the same geographical areas, and as necessary, further review and provision of technical assistance to maintain and improve program performance. Under proposed Sec. 29.6(d), the cancellation of apprenticeship agreements during the probationary period will not have an adverse impact on a sponsor's completion rate. The use of completion rates in program reviews is not intended to limit or terminate existing apprenticeship programs that receive technical assistance from a Registration Agency and demonstrate improved program performance, or to impede prospective apprenticeship program sponsors. Rather, the use of completion rates will focus on strengthening the program outcomes of the National Apprenticeship System. The Office of Apprenticeship will provide guidance to its field staff and to State Apprenticeship Agencies about establishing bench marks for completion rates for use in program reviews as proposed in this section. Such guidance will enable the Registration Agency to use appropriate data in formulating bench marks, incorporate analysis of relevant data in program reviews, and provide technical assistance. While every reasonable effort will be made to improve program performance, the Department contemplates that a program that demonstrates persistent deficiencies will be proposed for deregistration under Sec. 29.8 of this part. This approach will maximize program sponsors' ability to improve program performance. These provisions will ensure program quality and accountability in the National Apprenticeship System. Apprenticeship Agreement (Sec. 29.7)

Proposed Sec. 29.7, which is based on existing Sec. 29.6, sets the requirements for apprenticeship agreements. An apprenticeship agreement, as defined in Sec. 29.2, is the written agreement between an apprentice and either the apprentice's program sponsor or committee acting as agent for the program sponsor(s), which contains the terms and conditions of the employment and training of the apprentice. Except for proposed paragraphs (b), (e), and (j), the changes simply update terminology and do not alter the existing requirements.

Proposed Sec. 29.7(b) carries forward the existing requirement that the agreement include the apprentice's date of birth and adds provision for a space on the agreement in which apprentices would voluntarily provide their Social Security Number. The Registration Agency will use apprentices' Social Security Numbers for performance management and Davis Bacon Act purposes; in particular, for use in calculating employment outcomes of the National Apprenticeship System as defined in the Department's common measures for Federal job training programs. The Office of Management and Budget (OMB) has approved the request for Social Security Number information on an apprenticeship agreement (OMB Control Number 12050223).

Proposed Sec. 29.7(e) updates the Apprenticeship Agreement to accommodate the information about the approach to apprenticeship progression (either timebased approach, competencybased approach, or hybrid approach, as defined in Sec. 29.5(b)(2)) that the
apprenticeship sponsor has selected. The Department proposes to carry forward the existing requirement about the number of hours to be spent in related technical and supplemental instruction. The number of hours of related instruction specified in an Apprenticeship Agreement is unaffected by the approach to progression through an apprenticeship program chosen by the sponsor.

Proposed Sec. 29.7(j) carries forward existing requirements regarding equal opportunity in all phases of apprenticeship employment and training.

Deregistration of a Registered Program (Sec. 29.8)

Proposed Sec. 29.8 clarifies the existing Sec. 29.7 provisions for deregistration of registered apprenticeship programs. The existing regulation refers to ``Bureau [Office of Apprenticeship] registered programs.'' References to the Federal registration agency have been removed to make it clear that the section applies to registrations with all Registration Agencies. In addition, we propose to delete the phrase ``but not limited to'' in the introductory language to proposed Sec. 29.8(a) because it contributes nothing to the meaning of the paragraph. Proposed Sec. 29.8(a) also replaces the term ``registration officer'' with the term ``Registration Agency'' and establishes a requirement for sponsors whose program has been deregistered to refer all impacted apprentices to the Registration Agency for information about potential transfer to other registered apprenticeship programs. Proposed paragraphs 29.8(b)(1) through (b)(8) outline deregistration by the Registration Agency based upon reasonable cause.

Additionally, proposed Sec. 29.8(b)(7) shifts Departmental decision making and action from the Secretary to the Administrator of the Office of Apprenticeship, the Office of Administrative Law Judges (OALJ) and the Administrative Review Board (ARB). The proposed revisions, which are consistent with revisions in proposed Sec. Sec. 29.10 and 29.13, implement Secretary's Order 12002, 67 FR 64272, Oct. 17, 2002.

Reinstatement of Program Registration (Sec. 29.9)

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

Hearings (Sec. 29.10)

Proposed Sec. 29.10 would institute a new procedure for appeals of deregistration decisions more in line with current practice at DOL. As noted in the discussion of Sec. 29.8, this procedure shifts Departmental decision making and action from the Secretary to the Administrator of the Office of Apprenticeship, the OALJ and the ARB. The proposed revisions implement Secretary's Order 12002, 67 FR 64272, Oct. 17, 2002.

Under proposed Sec. 29.10(a), requests for hearing will be sent to the Administrator who will forward them to the OALJ. The OALJ will assign an Administrative Law Judge (ALJ) to hear the case. The ALJ will issue a notice of hearing. Under proposed Sec. 29.10(b), the ALJ would generally govern the hearing under the OALJ's rules of procedure in 29 CFR part 18. Under proposed Sec. 29.10(c), discretionary appeals to the ARB would be available to any party dissatisfied with the ALJ's decision. The request for appeal must be filed within 15 days and must specify the parts of
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the decision to which exception is taken. The ARB must decide whether to accept the appeal within 30 days, and must issue its decision within 180 days after the close of the record.

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

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

Recognition of State Apprenticeship Agencies (Sec. 29.13)

Proposed Sec. 29.13 would revise the provisions (in current Sec. 29.12) that address the recognition of State Apprenticeship Agencies for Federal purposes. These proposed revisions clarify how the Office of Apprenticeship oversees the National Apprenticeship System.

Proposed Sec. 29.13(a) differs significantly from the existing regulation (Sec. 29.12(a)), in that it does not include State Apprenticeship Councils as entities eligible for recognition. Proposed Sec. 29.13(a) provides that the Department will ``recognize'' a State Apprenticeship Agency which complies with the specified requirements, granting that agency authority to register apprenticeship programs and apprentices for Federal purposes. The Department has proposed this change to ensure that the governmental entity to be held accountable for conformity with part 29 is clearly identified. Current regulations do not specify that a recognized Registration Agency must be a government entity. Proposed Sec. 29.13(a) clarifies this requirement and further aligns the proposed regulations for the National Apprenticeship System with the National Apprenticeship Act, which states that the Department is to ``cooperate with State agencies engaged in the formulation and promotion of standards of

apprenticeship.''

Additionally, proposed Sec. 29.13(a) provides that the Department's recognition of State Apprenticeship Agency confers ``non exclusive authority'' to determine whether an apprenticeship program meets published standards and is eligible for those Federal purposes which require such a determination. With this provision and corresponding language in proposed Sec. 29.13(j), the Department retains full authority to register programs and apprentices located in all States and Territories where the Office of Apprenticeship has determined such action is necessary to further the interests of the National Apprenticeship System. These provisions clarify the Department's interpretation of the existing rule and codify existing practice. The Department has long used its authority to register apprenticeship programs in Federal enclaves and has stepped in to register programs when a State Apprenticeship Agency has been unable to timely register apprenticeship programs.

Proposed Sec. 29.13(a)(2) consolidates the provisions related to the State Apprenticeship Councils from existing Sec. 29.12(a)(2) and Sec. 29.12(b)(2). Proposed Sec. 29.13(b)(2) also deletes language in the existing regulation Sec. 29.12(b)(2) regarding voting procedures in a State Apprenticeship Council. These deletions are proposed because, under the proposed new rule under which only State government agencies will be recognized as State Apprenticeship Agencies, issues pertaining to State Apprenticeship Councils are under the direction and the discretion of the State Apprenticeship Agency, and are no longer appropriate matters for the Department to direct through the requirements of this part. Proposed Sec. 29.13(a)(3) through (a)(5) carry forward existing provisions in Sec. 29.12(a)(3) through (a)(5).

Proposed Sec. 29.13(a)(6) establishes a new requirement for the State Apprenticeship Agency to integrate registered apprenticeship into the State's economic development strategies and public workforce investment system. Such integration would further the National Apprenticeship Act mandate to bring together employers and labor for the formulation of programs of apprenticeship. Through increased coordination, State Apprenticeship Agencies can promote registered apprenticeship to a broader audience and further expand apprenticeship into high growth, high demand occupations. This effort would promote registered apprenticeship as a critical postsecondary education, training, and employment option available through the One Stop Career Center system.

Proposed Sec. 29.13(b) further clarifies basic requirements for the Department's recognition of a State Apprenticeship Agency. Proposed paragraph (b)(2) requires that State Apprenticeship Agencies provide sufficient budget and staff to carry out the functions of a Registration Agency. The Department is adding this provision to ensure that if a State that wishes to undertake the responsibilities required of a State Apprenticeship Agency, it must be prepared to commit the resources necessary to carry out those responsibilities. Currently, some State Apprenticeship Agencies depend completely on DOL staff to maintain registered apprenticeship functions in their States. Under the proposed rule, a State that seeks the authority to register apprenticeship programs and apprentices, for Federal purposes, within its jurisdiction, must assume corresponding responsibilities. The proposed rule deletes existing Sec. 29.12(b)(1) language that prescribes the location of a State Apprenticeship Agency and subsumes existing Sec. 29.12(b)(4), which requires the State to designate the entity responsible for registration and deregistration. This proposed deletion would increase States' flexibility to determine where within the State government the State Apprenticeship Agency authority resides.

Proposed Sec. 29.13(b)(3) includes a new requirement to delineate powers and duties of the State Apprenticeship Agency, in addition to those of the State office and State Apprenticeship Council. Proposed Sec. 29.13(b)(4) restates the corresponding provisions of existing Sec. 29.12(b)(5). Proposed Sec. 29.13(b)(5) effectively restates the corresponding provisions of existing Sec. 29.12(b)(6).

Proposed Sec. 29.13(b)(6) revises the existing provisions in Sec. 29.12(b)(7) for registration of apprenticeship programs to emphasize occupations in high growth and high demand occupations. This provision aligns with the Department's focus on addressing industry demands, particularly in high growth occupations.

Proposed Sec. 29.13(b)(7) expands the provisions of existing Sec. 29.12(b)(8), which currently provide for reciprocal recognition for programs and standards other than in the building and construction trades. The proposed revision would cover all registered apprentices, apprenticeship programs, and standards, with no exceptions, for Federal purposes. This would enable apprentices registered in one State to work as registered apprentices in other States, if their apprenticeship program sponsor requests reciprocal recognition for Federal purposes from the Registration Agency. This proposed expansion promotes the National Apprenticeship Act's requirement for the furtherance of labor standards necessary to safeguard the welfare of apprentices. Additionally, this expansion of reciprocity will enable the National Apprenticeship System to further address the needs of businesses and labor, while maintaining high quality standards for apprenticeship programs.

Proposed Sec. 29.13(b)(8) carries forward the provisions of current Sec. 29.12(b)(9)
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with regard to cancellation of programs and apprenticeship agreements.

Proposed Sec. 29.13(b)(9) is a new provision that has been added to clarify requirements for State Apprenticeship Agencies to submit proposed modifications in the State's apprenticeship legislation, regulations, policies, and/or operational procedures for Departmental review and approval prior to implementation for conformity with the National Apprenticeship Act and the implementing regulations in 29 CFR parts 29 and 30. The State Apprenticeship Agency's submission of proposed legislation, regulations, policies and/or operational procedures will enable the Department to identify and take action to resolve concerns.

The proposed rule deletes existing Sec. 29.12(b)(10) because this requirement for employers to consult with collective bargaining agents about proposed unilateral apprenticeship program duplicates existing Sec. 29.3(h), which is being carried forward as proposed Sec. 29.3(j).

The proposed language implements the Department's authority to administer the National Apprenticeship System. The current regulations could be interpreted to permit States to change their laws and practices after approval of their applications, without the Department's review and approval. Such an interpretation could lead to a situation in which a State Apprenticeship Agency violated 29 CFR part 29 without consequences. This was never the Department's intent. The proposed provision clarifies that to be recognized as a State Apprenticeship Agency, a State's law and procedures must conform with part 29, initially, and must continue to comply with those requirements.

Proposed Sec. 29.13(c), which is based on existing Sec. 29.12(c), addresses the process by which State Apprenticeship Agencies apply for recognition from the Department. State Apprenticeship Agencies recognized by the Department under current regulations would be required to reapply for recognition within 1 year from effective date of the final rule. This shift furthers the Department's efforts to ensure continuing conformity with part 29, and effectuates the Department's authority to administer the National Apprenticeship System under the National Apprenticeship Act.

Proposed Sec. 29.13(d) is a new provision that establishes a 5 year period for recognition of a State Apprenticeship Agency by the Department and provides a process for renewal and maintenance of recognition. This provision has been added to ensure consistency and quality across the National Apprenticeship System. The existing regulations confer openended recognition on State Apprenticeship Agencies for Federal purposes and do not clearly specify that a State Apprenticeship Agency must continue to meet regulatory requirements for continued recognition. In the Department's view, a 5year period provides a reasonable level of continuity for State Apprenticeship Agencies, while providing an efficient way to ensure that State Apprenticeship Agencies remain in conformity with Federal requirements.

Proposed Sec. 29.13(e) is a new provision that addresses Departmental review and monitoring of Registration Agencies for compliance with the requirements of this part. This provision would effectuate the Department's authority to administer the National Apprenticeship System. The requirements of proposed paragraph (e), which provide for onsite review; selfassessment; and monitoring of the State's apprenticeship law and procedures, simply codify the Department's existing procedures for determining if State
Apprenticeship Agencies are complying with part 29. The monitoring and reviews outlined in this proposed approach would form the basis for the Office of Apprenticeship's decision whether to continue recognition every 5 years.

Proposed Sec. 29.13(f) is a new provision that would provide for the steps to be taken if a State Apprenticeship Agency is found to be out of compliance with part 29. These provisions are based on the Department's current practice of compliance assistance. Those practices include the provision of technical assistance, and, where problems are found, conferral of ``Conditional Recognition'' for 45 days during which the State Apprenticeship Agency must submit a corrective action plan to remedy the conforming activity for failure to maintain compliance. These proposed procedures are necessary to ensure that non conformity with part 29 is detected and addressed expeditiously.

Proposed Sec. 29.13(g), which is based on existing Sec. 29.12(d), simplifies and clarifies the process for determining whether to deny a State Apprenticeship Agency recognition and provides the procedures for appeal of that decision. The proposed new procedure provides for a direct appeal by the State Apprenticeship Agency to the OALJ, for a hearing before an ALJ which will result in a recommended decision, with a final decision by the ARB. The hearing will be governed by the OALJ procedural rules in 29 CFR part 18 with some exception to ensure the reception of documentary evidence and to relax the application of formal rules of evidence.

Proposed Sec. 29.13(h), which is based on existing Sec. 29.12(e), carries forward the requirements for conformity with pertinent law and the Office of Apprenticeship registration of apprenticeship programs and apprentices under certain conditions.

Proposed Sec. 29.13(i) is a new provision which provides a process and procedure for a State to voluntarily relinquish its authority to administer registered apprenticeship for Federal purposes. This new section clarifies the Department's requirements for States seeking to transition administration of registered apprenticeship for Federal purposes from a State Apprenticeship Agency to the Office of Apprenticeship. These requirements include submitting a formal notice of intent, timely provision of all original, pertinent documents, and full cooperation during any transition period. These provisions would ensure smooth, seamless continuity of operations in the National Apprenticeship System, and further support the Department in fulfilling its obligations and responsibilities to registered apprentices and program sponsors. The proposed requirements in Sec. 29.13(i)(2) and (3) are identical to the corresponding provisions in proposed Sec. 29.14(h), which sets the requirements for transition when the Department has withdrawn recognition.

Proposed Sec. 29.13(j) provides that the Department retains full authority to register apprenticeship programs and apprentices, for Federal purposes, in all States and Territories where the Office of Apprenticeship determines that such action is necessary to further the interests of the National Apprenticeship System. This new provision clarifies that the Department's granting of recognition to a State Apprenticeship Agency does not confer exclusive authority to register apprenticeship programs and apprentices for Federal purposes in that State. The Department has determined that this clarification is necessary to ensure that all current and potential program sponsors seeking to participate in the National Apprenticeship System have full access to a Registration Agency regardless of their geographic location. Further, this clarification codifies the Office of Apprenticeship's existing practice. When State Apprenticeship Agencies have unreasonably delayed or denied registration to apprenticeship programs that meet the criteria established in this part, the Department has used its authority to register such apprenticeship programs for Federal purposes. The
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National Apprenticeship Act and Sec. 29.1, ``Purpose and scope,'' of the existing regulations provide the Office of Apprenticeship the authority to register apprenticeship programs and apprentices for Federal purposes, as defined in existing regulations at Sec. 29.2. Derecognition of State Agencies (Sec. 29.14)

The Department also proposes to revise the provisions for derecognition of State Apprenticeship Agencies (existing Sec. 29.13, proposed Sec. 29.14) to further enhance the Department's oversight of the National Apprenticeship System. Proposed paragraphs (a), and (b), of proposed Sec. 29.14 carry forward existing procedures used under the current regulations and incorporate the updated term ``Office of Apprenticeship.''

Proposed Sec. 29.14(c) clarifies how the Department will proceed with derecognition, depending on how the State Apprenticeship Agency responds to the notice issued under proposed Sec. 29.14(b). Proposed paragraph (c)(1) provides for suspension of the derecognition process, if the Office of Apprenticeship determines that the State
Apprenticeship Agency has sufficiently specified proposed remedial actions and committed the State to remedying identified deficiencies. Proposed paragraph (c)(1)(i) provides for termination of derecognition proceedings, if the Office of Apprenticeship determines that the State's corrective action has addressed the identified concerns. Proposed paragraph (c)(1)(ii) provides the Administrator must issue a notice proposing derecognition and offering the opportunity for a hearing if the Administrator finds that the corrective action has failed to remedy the identified concerns.

Proposed paragraphs (c)(2) and (3) provide a new procedure from existing Sec. 29.13(c)(2). Proposed paragraph (c)(2) provides that, where the State Apprenticeship Agency fails to either comply with the notice issued under Sec. 29.14(b) or request a hearing, the Administrator must take the steps described in Sec. 29.14(d), (e), (f), and (g) to assume control of registration in the State for Federal purposes and to transfer State registered programs to Federal registration.

Proposed paragraph (c)(3) adopts the hearing and appeal procedures of Sec. 29.13(g) to govern the hearing, leading to a final decision by the ARB. In particular, this paragraph specifies the use of an ALJ to develop proposed findings and a recommended decision that would be referred to the ARB for final decision. As provided under Secretary's Order 12002, 67 FR 64272, Oct. 17, 2002, paragraph (a)(25), the Secretary has delegated the authority to review and make final decisions on administrative adjudication regarding the National Apprenticeship Act to the ARB. Therefore, the final decision on derecognition would be issued by the ARB.

Proposed Sec. 29.14(d) and (e) carries forward the procedures for transferring the registration of apprenticeship programs from State to Federal registration under existing Sec. 29.13(d). Proposed paragraphs (d)(1) and (d)(2) present the notice requirements with which the Office Apprenticeship must comply. Proposed paragraph (e) carries forward the existing provisions that enable apprenticeship program sponsors impacted by State Apprenticeship Agency derecognition to request registration with the Office of Apprenticeship.

Proposed Sec. 29.14(f) carries forward existing provisions in Sec. 29.13(e) that address the situation where a sponsor fails to request registration with the Office of Apprenticeship. Proposed Sec. 29.14(g) carries forward existing provisions in Sec. 29.13(f) that require sponsors to notify apprentices of the impact of derecognition for Federal purposes, and imposes a new requirement on sponsors to refer all apprentices to the Office of Apprenticeship for information about potential transfer to other registered apprenticeship programs.

Proposed Sec. 29.14(h) would establish requirements for a State Apprenticeship Agency whose recognition has been withdrawn for Federal purposes to provide all documents relating to the State's
apprenticeship programs to the Department and to cooperate fully during the transition period. The proposed requirements are identical to the corresponding provisions in proposed Sec. 29.13(i)(2) and (3).

Proposed Sec. 29.14(i) carries forward the existing Sec. 29.13(g) provisions that address the circumstances in which a derecognized State Apprenticeship Agency may regain recognition. The State Apprentice Agency would have to establish, to the satisfaction of the Office of Apprenticeship, that the State Apprenticeship Agency has remedied the nonconformity that led to derecognition, has cooperated with the Office of Apprenticeship in the transfer process, and is otherwise operating in compliance with part 29.
III. Administrative Requirements for the Proposed Rulemaking Executive Order (E.O.) 12866

This proposed rule to revise 29 CFR part 29 is not economically significant because it will not materially alter the budgetary impact of entitlements, grants, user fees, or loan programs; nor will it have an annual effect on the economy of $100 million or more; or adversely affect the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities in any material way. However, the proposed rule is a significant regulatory action under E.O. 12866 at Sec. 3(f) because it raises novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in the E.O. This proposed rule updates existing regulations. Therefore, the Department has submitted this proposed rule to the OMB for review.

Paperwork Reduction Act (PRA)

Registration of apprentices described in this proposed rule contains requirements for Registered Apprenticeship Program Sponsors and apprentices to submit Apprenticeship Agreement forms to DOL or to the appropriate State Registration Agency. These requirements were previously reviewed and approved for use by OMB under 29 U.S.C. 50 and 29 CFR 29.1, and assigned OMB control number 12050223 under the provisions of the Paperwork Reduction Act of 1995. 44 U.S.C. 3501 Additionally, in accordance with the PRA, OMB has approved the Department's information collection request for the Apprenticeship Agreement at proposed Sec. 29.7, including the apprentice's Social Security Number (OMB Control Number 12050223). The Department has determined that this proposed rule contains no new information collection requirements, nor that any of these requirements are substantively or materially modified by the proposed changes contained herein.

Executive Order 13132: Federalism

The Department has reviewed this proposed rule in accordance with E.O. 13132 and found it may have Federalism implications because it may have substantial direct effects on States and on the relationship between the National government and the States. In particular, the proposed rule may affect internal State organizational structures with regard to State Apprenticeship Agencies and State Apprenticeship Councils and it extends the requirements for reciprocal approval of [[Page 71029]]
programs registered in other States. However, in developing these regulations, the Department undertook to consult with representatives of affected State officials, and the resulting proposed rule has been drafted to meet the concerns of such officials.

In the development of the proposed rule the Department included several mechanisms for consultation with State officials. The Department relied upon advice from the ACA, and consultation with State apprenticeship agencies and the NASTAD, the organization representing apprenticeship officials from the District of Columbia, 27 States, and three Territories. The ACA, which contains representatives of two associations of State labor and apprenticeship officials (including NASTAD), offered specific suggestions on matters relating to apprenticeship program standards, and registration and deregistration of apprenticeship programs. Upon consideration of the ACA's advice, the Department ultimately agreed with the ACA's recommendations and has incorporated them into the proposed rule.

The Department has consulted with NASTAD on provisions that more directly affect States and the relationship between the National government and the States. In response to a request from the Office of Apprenticeship, the President of NASTAD submitted a letter on behalf of NASTAD membership in December 2006, outlining recommendations for changes to regulations governing the recognition of State agencies to register apprenticeship programs for Federal purposes. In February 2007, Office of Apprenticeship personnel attended a NASTAD meeting to discuss and obtain feedback from NASTAD members on proposed revisions to this part.

As a result of this consultation, NASTAD identified concerns pertaining to six specific areas:
(a) State Apprenticeship Councils should be established within State Apprenticeship Agencies as provided under State law, and the director of the State Apprenticeship Agency should be empowered to implement approved State apprenticeship law and regulations in compliance with 29 CFR part 29;
(b) State Apprenticeship Councils should be composed of persons who are directly associated with registered apprenticeship, should be comprised of an equal number of employee and employer representatives, and should include public representatives in numbers not exceeding the number of employee or employer representatives;
(c) Apprenticeship program sponsors registered in one State that seek reciprocal recognition in another State must abide by the policies, procedures, legislation, and regulations of the State in which they are seeking registration;
(d) The appropriate term for the entity applying for recognition from the Department is ``State Agency'' and not the State Council; (e) The title of the DOL entity responsible for oversight of the National Apprenticeship System should be changed to its current name, ``Office of Appr

FOR FURTHER INFORMATION CONTACT Sherril Hurd, Acting Regulation Unit Team Leader, Office of Policy Development and Research, U.S. Department of Labor, 200 Constitution Avenue NW., Room N5641, Washington, DC 20210; Email hurd.sherril@dol.gov; Telephone (202) 6933700 (this is not a tollfree number).

Individuals with hearing or speech impairments may access the telephone number above via TTY by calling the tollfree Federal Information Relay Service at (800) 8778339.