Existing law provides for apprenticeship programs within the Division of Apprenticeship Standards within the Department of Industrial Relations, sponsored by specific entities and employers, and requires the Chief of the Division of Apprenticeship Standards to perform various functions with respect to apprenticeship programs and the welfare of apprentices, including the approval of new apprenticeship programs. Existing law makes any person who willfully discriminates in any recruitment or apprenticeship program, as specified, guilty of a misdemeanor.

This bill would require the Division of Apprenticeship Standards to confirm the completeness of an application for a new apprenticeship program within 30 days of receiving the application. The bill would provide that, where the chief has not made a final determination on a completed application for a new program within 6 months of receiving the application, the program shall have conditional approval to operate if it satisfies specified conditions, including approval by the United States Department of Labor. The bill would require the chief to make a final determination on an application for a new apprenticeship program within one year of receiving a completed application. The bill would provide its provisions do not apply to apprenticeship programs in the building and construction trades or to firefighter programs.

Because the bill would expand the scope of an existing crime with respect to willful violations of provisions of the law related to discrimination in apprenticeship and preapprenticeship programs, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Date of Hearing: April 23, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 345

Author:(Jackson) – As Introduced Ver:January 29, 2025

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill requires the Division of Apprenticeship Standards (DAS) to meet certain deadlines to review and approve an application for a new apprenticeship program.

Specifically, this bill:

1. Requires DAS to confirm, within 30 days of receipt, whether an application for a new apprenticeship program is complete, and notify the applicant if a component is incomplete.
2. Provides a program conditional approval to operate if the DAS chief, in consultation with the Interagency Advisory Committee on Apprenticeships, has not made a final determination on a completed application within six months of receiving the application, but the program satisfies certain conditions.
3. Requires the DAS chief to make a final determination on an application within one year of receiving a completed application.
4. Excludes building and construction trades and firefighter apprenticeship programs from these deadlines.

FISCAL EFFECT:

Costs of approximately $2.2 million in the first year and $2.0 million ongoing to DAS for additional staff positions to meet application review and approval deadlines (Employment Training Fund). DAS may also incur costs if a program granted conditional approval to operate does not ultimately receive final approval.

COMMENTS:

1. Purpose. According to the author:

This bill aims to streamline the process for creating new apprenticeship programs by setting clear deadlines for [DAS] to evaluate applications and make decisions. By ensuring that applications are reviewed in a timely manner, and providing conditional approval to programs that meet key federal requirements, we can eliminate unnecessary delays and increase opportunities for apprentices across a range of industries.

This bill is supported by the Chabot-Las Positas Community College District.

1. Registered Apprenticeship Programs. In 2018, Governor Newsom set a goal to expand the state’s apprenticeship system and serve 500,000 apprentices by 2029. Although “traditional” apprenticeships refer to programs in the building and construction trades, registered apprenticeship programs now exist in a wide variety of industries, including healthcare, technology, advanced manufacturing, and public service.

DAS administers state apprenticeship law and establishes apprenticeship standards for wages, hours, and working conditions, and the specific skills required for state certification. Programs can become registered apprenticeships after approval by DAS, the U.S. Department of Labor (USDOL), or both. Registered apprenticeship programs benefit from technical assistance and other state and federal resources. However, a program must be registered by DAS in order to qualify for certain state funding allocations, such as the California Opportunity Youth Apprenticeship grant program to support at-risk youth.

Existing law does not specify a timeline by which the DAS chief must render a decision to approve an apprenticeship program in a non-traditional sector. Currently, the approval process takes over six months for many programs, largely due to DAS staffing shortages. This bill sets deadlines DAS must meet to review and approve an application for a new non-traditional apprenticeship program. Most notably, if DAS has not made a final determination on an application after six months, this bill grants a program conditional approval to operate if the program has USDOL approval and meets other specified criteria, thus qualifying the program for state funding.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: March 19, 2025

ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT

Liz Ortega, Chair

ABPCA Bill Id:AB 345 (

Author:Jackson) – As Introduced Ver:January 29, 2025

SUBJECT: Apprenticeship programs: approval process

SUMMARY: Implements a deadline by which the Division of Apprenticeship Standards (DAS) must render a decision on an application for a new apprenticeship program outside of the building and construction trades and firefighting programs, and provides for conditional approval if certain conditions are met. Specifically, this bill:

1. Requires the DAS to confirm completeness of applications for new apprenticeship programs within 30 days of receipt and to notify applicants if any components of the application are incomplete.
2. Provides that (1) above does not prohibit the DAS from requesting additional information as necessary throughout the review process.
3. Requires, if the chief of the DAS, in consultation with the Interagency Advisory Committee on Apprenticeships, has not made a final determination on a completed application for a new apprenticeship program within six months of receiving the completed application, the program to have conditional approval if it satisfies the following specified conditions:
   1. The program has been approved by the United States Department of Labor.
   2. The program has documented employer commitments that demonstrate both of the following:
      1. A capacity to employ apprentices.
      2. The ability to provide on-the-job training.
   3. The program has an identified local educational agency partner to ensure the theoretical instruction component of the apprenticeship meets educational standards.
4. Requires the chief of the DAS to make a final determination on an application within one year of receiving the completed application.
5. Provides that, for purposes of (3) above, “conditional approval” means the temporary authorization to operate an apprenticeship program, pending final review.
6. Provides that (1)-(5) above do not apply to apprenticeship programs in the building and construction trades and firefighter programs.

EXISTING LAW:

1. Provides for apprenticeship programs within the DAS within the Department of Industrial Relations (DIR), sponsored by specific entities and employers, and requires the chief of the DAS to perform various functions with respect to apprenticeship programs and the welfare of apprentices. Labor Code § 3070 et seq.
2. Establishes the California Apprenticeship Council to issue rules and regulations which establish standards for minimum wages, maximum hours, and working conditions for apprentice agreements in the building and construction trades and for firefighter occupations. Labor Code § 3070-3071.
3. Establishes the Interagency Advisory Committee on Apprenticeship to provide advice and guidance to the Administrator of Apprenticeship and the chief of the DAS on apprenticeship programs, and agreements that are not within the jurisdiction of the California Apprenticeship Council, and on the development and administration of standards governing preapprenticeship, certification, and on-the-job training and retraining programs outside the building and construction trades and firefighters. Labor Code § 3071.5.
4. Provides that the Director of the DIR is ex officio the Administrator of Apprenticeship and is authorized to appoint assistants as necessary to carry out this statute. Labor Code § 3072.
5. Provides that an apprenticeship program may be administered by a joint apprenticeship committee, unilateral management or labor apprenticeship committee, or an individual employer; that programs may be approved by the chief of the DAS in any trade or area of the state; and that, where a collective bargaining agreement exists, requires a program to be jointly sponsored, as specified. Labor Code § 3075(a).
6. Provides that the chief’s decisions regarding applications for new apprenticeship programs outside the building and construction trades and firefighters are final and not subject to administrative appeal, except as otherwise provided. Labor Code § 3075(e).
7. Requires the chief’s decisions regarding applications for new apprenticeship programs to be posted to the division’s Internet Web site, which shall constitute the only form of notice and service. Labor Code § 3075(f).
8. Prohibits the chief of the DAS from approving a new apprenticeship program that includes a substantial number of work processes covered by a program in the building and construction trades or firefighters, or approving the amendment of apprenticeship standards to include those work processes, unless either of the following applies:
   1. The program is in the building and construction trades or a firefighter program and subject to the rules and regulations of the California Apprenticeship Council.
   2. The California Apprenticeship Council has granted consent to the approval of the program or the amendment to the apprenticeship standards. If no party files an objection with the chief to the approval of the proposed program or amendment alleging overlap of work processes under this subdivision, the chief shall not be required to seek the consent of the California Apprenticeship Council prior to approving the program or amendment. Labor Code § 3075(g).
9. Requires the DAS, at least 30 days before approval of a new apprenticeship program, or of an amendment to the apprenticeship standards to include new work processes, to post on its Internet Web site a copy of the proposed apprenticeship standards, which shall constitute the only form of notice and service that an application on the proposed program or amendment is pending; provides that the chief’s decision regarding any new apprenticeship program or amendment of the apprenticeship standards to include new work processes may be appealed to the California Apprenticeship Council if notice under this subdivision is not provided. Labor Code § 3075(h).
10. Requires the DAS to create a method on its Internet Web site for members of the public to subscribe to receive email updates when new decisions or proposed apprenticeship standards are posted. Labor Code § 3075(i).
11. Requires the DAS to investigate, approve or reject applications from establishments for apprenticeship and other on-the-job training, and for that purpose, allows the DAS to cooperate, or contract with, and receive reimbursements from the appropriate agencies of the Federal Government. Labor Code § 3090.

FISCAL EFFECT: Unknown

COMMENTS: Apprenticeship is a system of training in a trade or profession that combines both classroom study and on-the-job training. The DAS within the DIR administers California apprenticeship law and establishes apprenticeship standards for wages, hours, working conditions and the specific skills required for state certification. Although “traditional” apprenticeship programs are in the building and construction trades, registered apprenticeship programs now exist in a wide variety industries, including healthcare, technology, advanced manufacturing, public service and more.

California has been on a mission to expand apprenticeship in the state, following the governor’s directive and goal to serve 500,000 apprentices by 2029. The state has invested heavily in apprenticeship over the past few years, including creating three new related funding streams: Apprenticeship Innovation Funding to scale and expand apprenticeship programs in nontraditional industries, the California Opportunity Youth Apprenticeship grant program to increase opportunities for at-risk youth in the state, and the Equal Representation in Construction Apprenticeships grant program to provide funding to help women and other underserved populations enter the building and construction trades. Importantly, though, a program must be registered through the DAS to receive funding from these programs.

Programs can become registered apprenticeships through approval by either the DAS, the US Department of Labor or both. Registered apprenticeship programs benefit from technical assistance and other state and federal resources, and, in programs with US DOL registration, apprentices earn a portable, nationally-recognized credential within their industry. However, as noted above, a program must be registered by the DAS in order to qualify for the related state funding streams.

Existing law does not specify a timeline within which the chief of the DAS, in consultation with the Interagency Advisory Committee on Apprenticeships, must render a decision on an application for a new program in a nontraditional sector. Currently the registration approval process is taking upwards of 6 months in many cases, due in large part to a staffing shortage at the division.

According to the author, “as the need for skilled workers continues to grow in California, expanding access to quality apprenticeship programs is essential for workforce development and economic growth. This bill aims to streamline the process for creating new apprenticeship programs by setting clear deadlines for the Division of Apprenticeship Standards (DAS) to evaluate applications and make decisions. By ensuring that applications are reviewed in a timely manner, and providing conditional approval to programs that meet key federal requirements, we can eliminate unnecessary delays and increase opportunities for apprentices across a range of industries.

This legislation is particularly important for industries that are not currently covered by the unique processes in place for the building and construction trades or firefighter programs, ensuring that all sectors have a clear and efficient path to develop a skilled workforce. By fostering the growth of new apprenticeship programs, we are providing California's workers with valuable on-the-job training, while also supporting employers who rely on a skilled labor force to stay competitive. Through these efforts, this bill aims to strengthen our state's workforce, provide more equitable opportunities for job seekers, and contribute to the long-term economic vitality of California.”

With regards to how the bill promotes equity solutions and maximizes benefits for underserved and marginalized communities, the author adds that “many underserved communities face challenges related to educational attainment, limited job opportunities, and systemic discrimination. Apprenticeships provide an alternative pathway to employment that doesn’t rely on traditional academic credentials. By making it easier to establish new apprenticeship programs, this bill helps ensure that these communities have more access to job training that leads directly to employment, reducing systemic barriers.”

Arguments in Support

None on file.

Arguments in Opposition

None on file.

Prior Legislation

AB 235 (O’Donnell), Chapter 704, Statutes of 2018 authorized a two-pronged process for the approval of apprenticeship programs, maintaining the existing process for the trades and firefighting, and established a separate path for programs in newly emerging areas of apprenticeship.

AB 1308 (Perea), Chapter 126, Statutes of 2015 revised conditions for when the apprentice training needs in the building and construction trades justify a new apprentice program, as well as removed the authority of the California Apprenticeship Council to approve by regulation a new apprenticeship program justified by special circumstances.

SB 56 (Corbett), Chapter 696, Statutes of 2011 established new application requirements for new or expanded apprenticeship programs in the building and construction trades, as well as revised apprenticeship audit requirements.

AB 2660 (La Suer) of 2006 would have eliminated, as a condition to the DAS chief’s approval of an apprenticeship program, the requirement that apprentice training needs justify the new program, and would have deleted the provision authorizing the California Apprenticeship Council to approve a new apprenticeship program. Failed passage in Assembly Labor and Employment Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Erin Hickey / L. & E. / (916) 319-2733