Stricken language would be deleted from and underlined language would be added to present law. *CRH171* 03-27-2023 09:41:57 CRH171 State of Arkansas As Engrossed: S3/27/23 1 94th General Assembly A Bill 2 Regular Session, 2023 SENATE BILL 425 3 4 By: Senator J. English 5 6 For An Act To Be Entitled 7 AN ACT TO ESTABLISH THE ARKANSAS STATE A PPRENTICESHIP 8 AGENCY ACT; TO ESTAB LISH THE ARKANSAS ST ATE 9 APPRENTICESHIP AGENC Y; TO ESTABLISH THE ARKANSAS 10 APPRENTICESHIP COUNC IL; AND FOR OTHER PU RPOSES. 11 12 13 Subtitle 14 TO ESTABLISH THE ARKANSAS STATE 15 APPRENTICESHIP AGENCY ACT; TO ESTABLISH 16 THE ARKANSAS STATE APPRENTICESHIP AGENCY; 17 AND TO ESTABLISH THE ARKANSAS 18 APPRENTICESHIP COUNCIL. 19 20 21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22 23 SECTION 1. Arkansas Code § 6 -50-503(c)(2), concerning the 24 responsibility for the selection of industries and occupations related to 25 work-based training programs, is amended to read as follows: 26 (2) The division, the Arkansas Apprenticeship Coordination 27 Steering Committee, the Office of Skills De velopment, and local sites shall 28 take joint responsibility for identifying the industries and occupations 29 selected in subdivision (c)(1) of this section. 30 31 SECTION 2. Arkansas Code Title 6, Chapter 52, Subchapter 2, is 32 repealed. 33 Subchapter 2 — Apprenticeship Training Programs 34 35 6-52-201. Definitions. 36 As Engrossed: S3/27/23 SB425 2 03-27-2023 09:41:57 CRH171 In this subchapter: 1 (1) “Apprenticeship training program” means a training program that 2 provides on-the-job training, supplementary instruction, or related 3 instruction in a trade or occupation that has bee n certified as an 4 apprenticeable occupation by the United States Office of Apprenticeship; 5 (2)(A) “Pre-apprenticeship” means programs that provide 6 instruction or training to increase math, literacy, and other vocational and 7 prevocational skills needed t o enter a registered apprenticeship program. 8 (B) “Pre-apprenticeship” programs are not: 9 (i) Registered with the United States Department of 10 Labor during the term of the pre -apprenticeship training; or 11 (ii) Federally vetted, but a high -quality pre-12 apprenticeship should have a minimum of one (1) registered apprenticeship 13 partner or a strong relationship with at least one (1) apprenticeship 14 program, feature training and curriculum that aligns with that program, and 15 include a wide range of support services designed specifically to help 16 participants succeed; 17 (3) “Program sponsor” means any person, association, committee, 18 business, or organization operating an apprenticeship program and in whose 19 name the program is registered or is in the process of registration by the 20 United States Office of Apprenticeship; 21 (4) “Related instruction” means organized off -the-job 22 instruction in theoretical or technical subjects required for the completion 23 of an apprenticeship program for a particular apprenticeabl e trade; 24 (5) “Supplementary instruction” means a course of instruction 25 for persons employed as journeymen craftsmen in an apprenticeable trade that 26 is designed to provide new skills or upgrade current skills; and 27 (6) “Youth apprenticeship” means a re gistered apprenticeship 28 program that has been validated by the United States Department of Labor or a 29 state apprenticeship agency serving individuals between sixteen (16) and 30 twenty-four (24) years of age and is sponsored by employers, labor management 31 organizations, or other organizations. 32 33 6-52-202. Applicability. 34 The provisions of this subchapter apply only to those apprenticeship 35 training programs which receive state funds pursuant to the provisions of § 36 As Engrossed: S3/27/23 SB425 3 03-27-2023 09:41:57 CRH171 6-52-207. 1 2 6-52-203. Rules. 3 The Office of Skills Development and the Arkansas Apprenticeship 4 Coordination Steering Committee shall promulgate rules necessary to implement 5 the provisions of this subchapter. 6 7 6-52-204. Arkansas Apprenticeship Coordination Steering Committee. 8 (a)(1) The Governor shall appoint an Arkansas Apprenticeship 9 Coordination Steering Committee composed of members with the following 10 qualifications: 11 (A) One (1) member representing employer organizations; 12 (B) One (1) member representing labor unions or bargaining 13 agents for members of apprenticeable trades; 14 (C) One (1) member representing the minority and female 15 workforce who have knowledge of apprenticeship and are familiar with the 16 needs of vocational and technical education; 17 (D) Two (2) members who teach or i mmediately supervise 18 supplementary instruction or related instruction courses; 19 (E) Three (3) members representing employers who are 20 actively utilizing registered apprenticeship who have knowledge of 21 apprenticeship and are familiar with the needs of voc ational and technical 22 education; 23 (F) One (1) member representing the Division of Career and 24 Technical Education who has knowledge of apprenticeship and is familiar with 25 the needs of vocational and technical education; 26 (G) One (1) member representin g a state supported two -year 27 or four-year institution of higher education who has knowledge of 28 apprenticeship and is familiar with the needs of vocational and technical 29 education; 30 (H) One (1) member representing the Arkansas Workforce 31 Innovation and Opportunity Act, § 15-4-3701 et seq., workforce system who has 32 knowledge of apprenticeship and is familiar with the needs of vocational and 33 technical education; and 34 (I) One (1) member representing the Office of Skills 35 Development. 36 As Engrossed: S3/27/23 SB425 4 03-27-2023 09:41:57 CRH171 (2) Members of the c ommittee shall serve terms of four (4) 1 years. 2 (3) Vacancies shall be filled for the unexpired portion of a 3 term vacated. 4 (4) The Governor shall consult the Office of Skills Development 5 before making an appointment under this subsection. 6 (5) Appointments made by the Governor under this subsection 7 shall be subject to confirmation by the Senate. 8 (b) Advisory members of the committee shall include the following: 9 (1) Two (2) persons designated by the Office of Skills 10 Development; and 11 (2) One (1) person designated by and representing the United 12 States Office of Apprenticeship. 13 14 6-52-205. Arkansas Apprenticeship Coordination Steering Committee — 15 Duties. 16 (a) The Arkansas Apprenticeship Coordination Steering Committee shall 17 recommend to the Caree r Education and Workforce Development Board a statewide 18 plan for the development of a comprehensive program of apprenticeship 19 training that shall include but not be limited to the following: 20 (1) Formulas and administrative procedures to be used in 21 requesting appropriations of state funds for apprenticeship training and 22 apprenticeship expansion efforts; 23 (2) Forms, formulas, and administrative procedures to be used in 24 distributing available funds to apprenticeship training programs and 25 apprenticeship expansion efforts; and 26 (3) The content and method of the public notice required by this 27 subchapter. 28 (b)(1) The Office of Skills Development shall furnish the committee 29 with the current data necessary to develop the plan. 30 (2) All state boards and agencies shall cooperate with the 31 committee and shall furnish information and material on request. 32 (c) Pursuant to this section, the reporting procedures shall be 33 included in the state plan for apprenticeship. 34 35 6-52-206. Recommendations. 36 As Engrossed: S3/27/23 SB425 5 03-27-2023 09:41:57 CRH171 (a) Recommendations of the Arkansas Apprenticeship Coordination 1 Steering Committee submitted to the Office of Skills Development must be 2 acted on and either accepted or rejected. 3 (b) A recommendation which is rejected must be returned immediately to 4 the committee, accompanied by written notice of the reasons for rejecting the 5 recommendation. 6 7 6-52-207. Training programs generally. 8 (a) Under this subchapter, the Director of the Office of Skills 9 Development shall allocate state funds for the support of app renticeship 10 training programs that meet the criteria stated in this subchapter. 11 (b) An apprenticeship training program may be cosponsored by a public 12 school district, an education service cooperative, a state postsecondary 13 institution, a vocational -technical school, or a two -year community college 14 pursuant to a contract between the district or institution and an 15 apprenticeship program sponsor. 16 (c) An apprenticeship training program shall be under the direction of 17 an apprenticeship coordinator appointed by an apprenticeship program sponsor 18 who shall perform the duties stated in § 6 -52-208. 19 (d)(1) Each apprentice participating in an apprenticeship training 20 program shall be given a written apprenticeship agreement by an 21 apprenticeship program sponsor stat ing the standards and conditions of his or 22 her employment and training. 23 (2) The apprenticeship agreements are furnished by the United 24 States Office of Apprenticeship. 25 (e)(1) An apprentice shall not be charged tuition or fees by a public 26 school district or state postsecondary institution. 27 (2)(A) However, an administrative fee may be charged to cover 28 the costs of processing the records of an apprentice. 29 (B) The fee allowed under subdivision (e)(2)(A) of this 30 section shall not exceed twenty -five dollars ($25.00) for each course in 31 which the apprentice is enrolled. 32 (3) The apprentice or an apprenticeship program sponsor may be 33 required to furnish books and special equipment. 34 (f)(1) Funding for an apprenticeship training program, in addition to 35 any other money available, shall be based on: 36 As Engrossed: S3/27/23 SB425 6 03-27-2023 09:41:57 CRH171 (A) Allocation of funds to an apprenticeship program 1 sponsor by the Office of Skills Development, as referred to in subsection (a) 2 of this section; or 3 (B) Terms of a contract between an apprenticeship pr ogram 4 sponsor and a cosponsor, as referred to in subsection (b) of this section. 5 (2) An apprenticeship program sponsor may charge an apprentice 6 or the employer of the apprentice tuition and fees to cover administrative 7 costs incurred while the apprentic e is registered with the apprenticeship 8 program sponsor. 9 (g) The terms of the contract referred to in subsection (b) of this 10 section shall require without limitation the following in order to 11 effectively administer the apprenticeship training program in a manner 12 consistent with the public's need for skilled workers and the apprentice's 13 need for marketable skills in apprenticeable occupations: 14 (1) Adequate facilities; 15 (2) Personnel; and 16 (3) Resources. 17 (h) An apprenticeship training program shall be registered with the 18 United States Office of Apprenticeship and the Office of Skills Development. 19 20 6-52-208. Duties of apprenticeship program sponsors. 21 (a) The apprenticeship program sponsor of each apprenticeship training 22 program shall: 23 (1) Establish standards and goals for supplementary instruction 24 and related instruction for apprentices in the program; 25 (2) Establish rules governing the on -the-job training and other 26 instruction for apprentices in the program; 27 (3) Plan and organize instructional materials designed to 28 provide technical and theoretical knowledge and basic skills required by 29 apprentices in the program; 30 (4) Recommend qualified instructors for the program; 31 (5) Monitor and evaluate the performance and progress of eac h 32 apprentice in the program and the program as a whole; and 33 (6) Interview applicants and select those most qualified for 34 entrance into the program. 35 (b) A program must provide for the keeping of records of the on -the-36 As Engrossed: S3/27/23 SB425 7 03-27-2023 09:41:57 CRH171 job training and progress of each a pprentice. 1 (c) A program must require instructors to maintain recommended 2 qualifications. 3 (d) A program must perform any other duties which promote the goals of 4 individual apprentices and of the program as a whole. 5 (e)(1) An apprenticeship program sp onsor shall provide the names of 6 the employers who enroll apprentices into the program to the Office of Skills 7 Development on or before September 1 of each fiscal year. 8 (2) The office shall not publish the names of the employers who 9 have enrolled appren tices, nor use the employer names for a purpose other 10 than program administration and research, unless approved by the employer. 11 (3) The names of employers provided by apprenticeship program 12 sponsors under this subsection shall be exempt from the Freedo m of 13 Information Act of 1967, § 25 -19-101 et seq. 14 15 SECTION 3. Arkansas Code Title 6, Chapter 52, is amended to add an 16 additional subchapter to read as follows: 17 Subchapter 3 — Arkansas State Apprenticeship Agency Act 18 19 6-52-301. Title. 20 This subchapter shall be known and may be cited as the "Arkansas State 21 Apprenticeship Agency Act". 22 23 6-52-302. Definitions. 24 As used in this subchapter: 25 (1) "Apprentice" means a worker who is: 26 (A) At least sixteen (16) years of age; and 27 (B) Employed to learn a n apprenticeable occupation or 28 trade as defined in 29 C.F.R. § 29.4, as it existed on January 1, 2023; 29 (2) "Apprenticeship" means a program for the recruitment, 30 selection, employment, and training of apprentices that is developed under 29 31 C.F.R. §§ 29 and 30, as it existed on January 1, 2023, and the rules of the 32 Arkansas State Apprenticeship Agency; 33 (3) "Apprenticeship agreement" means a written agreement between 34 an apprentice and a sponsor that contains the terms and conditions of the 35 apprentice's employment and training consistent with 29 C.F.R. § 29.7, as it 36 As Engrossed: S3/27/23 SB425 8 03-27-2023 09:41:57 CRH171 existed on January 1, 2023, and this subchapter; 1 (4) "Cancellation" means the termination of: 2 (A) The registration of a pre -apprenticeship or 3 apprenticeship at the request of the sponsor; or 4 (B) An apprenticeship agreement at the request of the 5 apprentice; 6 (5) "Deregistration" means the termination of the registration 7 of a pre-apprenticeship or apprenticeship by the Arkansas State 8 Apprenticeship Agency; 9 (6) "Employer" means a person employing an apprentice; 10 (7) "On-the-job training" means training that is: 11 (A) Provided to a paid apprentice who is engaged in 12 productive work in an occupation when the work provides knowledge or skills 13 essential to the full and adequate performance of the occupation; and 14 (B) Limited in duration as appropriate to the occupation 15 for which the apprentice is being trained based on the content of the 16 training and the apprentice's prior work experience as appropriate; 17 (8) "Pre-apprenticeship" means a program or set of services 18 recognized by the Arkansas State Apprenticeship Agency, in partnership with a 19 registered apprenticeship program, designed to prepare individuals to enter 20 and succeed in a registered apprenticeship program; 21 (9)(A) "Related technical instruction" means an organized and 22 systematic form of instruction designed to provide the apprentice with 23 knowledge of the theoretical and technical subjects related to his or her 24 trade or occupation approved by the state apprenticesh ip agency. 25 (B) "Related technical instruction" includes instruction 26 that is: 27 (1) Given in a classroom; 28 (2) Through occupation or industrial courses; 29 (3) By correspondence courses; 30 (4) Through electronic media; or 31 (5) Through other forms of self -study; and 32 (10) "Sponsor" means a person, association, committee, business, 33 state agency, or organization operating an apprenticeship or pre -34 apprenticeship program and in whose name the apprenticeship or pre -35 apprenticeship progr am is or is to be registered or approved. 36 As Engrossed: S3/27/23 SB425 9 03-27-2023 09:41:57 CRH171 1 6-52-303. Creation of Arkansas State Apprenticeship Agency. 2 (a) There is created the Arkansas State Apprenticeship Agency within 3 the Office of Skills Development in accordance with 29 U.S.C. § 50 and 29 4 C.F.R. §§ 29 and 30, as it existed on January 1, 2023, to: 5 (1) Serve as the state registration agency for apprenticeship 6 programs; 7 (2) Establish rules regarding the registration of pre -8 apprenticeships, apprenticeships, and apprentices; and 9 (3) Resolve disputes between parties to an apprenticeship 10 agreement. 11 (b)(1) The agency shall be under the direction of the Director of the 12 Office of Skills Development. 13 (2) The director may appoint a deputy director for the agency 14 who shall: 15 (A) Serve at the pleasure of the director; 16 (B) Manage the agency; and 17 (C) Perform duties as necessary to effectuate the intent 18 of this subchapter. 19 (c) By December 31, 2023, the director shall submit an application to 20 the Administrator of the United States Departme nt of Labor Office of 21 Apprenticeship to recognize the agency as the state apprenticeship agency 22 that shall comply with applicable federal law. 23 (d) The duties created in this section are in addition to the duties 24 established for the Office of Skills Devel opment under § 25-30-102. 25 26 6-52-304. Rules. 27 (a) The Office of Skills Development shall promulgate rules necessary 28 to implement this subchapter, including without limitation rules addressing 29 the registration, degregistration, cancellation, and reinstatement of pre -30 apprenticeships, apprenticeships, and apprentices. 31 (b) A rule promulgated under this subchapter shall conform to the 32 registered apprenticeship regulations under 29 C.F.R. §§ 29 and 30, as it 33 existed on January 1, 2023. 34 35 6-52-305. Duties. 36 As Engrossed: S3/27/23 SB425 10 03-27-2023 09:41:57 CRH171 (a) The Arkansas State Apprenticeship Agency shall develop a 1 nationally recognized state apprenticeship completion credential, as 2 described in 29 C.F.R. § 29.5, as it existed on January 1, 2023, for 3 completing a registered apprenticeship program. 4 (b) The agency may register apprenticeship programs that are mandated 5 by state or federal law as a result of the sponsor receiving funds or 6 resources from the state or funds or resources from the United States 7 Government that require the creation of an a pprenticeship program in 8 accordance with a federal grant administered by this state. 9 (c)(1) The Director of the Office of Skills Development may promulgate 10 rules on behalf of the agency as necessary to effectuate the intent of this 11 subchapter under § 25 -30-102(a)(9). 12 (2) A rule promulgated under this subchapter shall conform to 13 the registered apprenticeship regulations under 29 C.F.R. §§ 29 and 30, as it 14 existed on January 1, 2023. 15 (d)(1) The director or the Deputy Director of the Arkansas State 16 Apprenticeship Agency shall allocate state funds for the support of 17 apprenticeship training programs. 18 (2) Funding for an apprenticeship training program, in addition 19 to any other moneys available, shall be based on the allocation of funds to 20 an apprenticeship program sponsor by the agency. 21 22 6-52-306. Registration of apprenticeship program. 23 (a) A sponsor may apply to register an apprenticeship program with the 24 Arkansas State Apprenticeship Agency. 25 (b) A registered apprenticeship program shall include wi thout 26 limitation: 27 (1) On-the-job training from an employer; 28 (2) Related technical instruction; and 29 (3) Opportunity for an apprentice to earn a portable, 30 nationally-recognized industry credential. 31 (c) A sponsor of a registered pre -apprenticeship or registered 32 apprenticeship is responsible for the administration and supervision of on -33 the-job training and related technical instruction for each apprentice in the 34 registered pre-apprenticeship or registered apprenticeship. 35 36 As Engrossed: S3/27/23 SB425 11 03-27-2023 09:41:57 CRH171 6-52-307. Arkansas Apprent iceship Council. 1 (a) There is established the Arkansas Apprenticeship Council to be an 2 advisory council composed of individuals representing employer and employee 3 organizations who are familiar with apprenticeable occupations. 4 (b) The Governor shall appoint the council composed of members with 5 the following qualifications: 6 (1) Two (2) members representing employer organizations; 7 (2) Two (2) members representing employee organizations; and 8 (3) Three (3) members representing the public who are 9 knowledgeable about apprenticeships and apprenticeable occupations. 10 (c) A member of the council shall serve a term of four (4) years. 11 (d) A vacancy shall be filled by the Governor for the unexpired 12 portion of the vacated term. 13 (e) The council shall meet at least four (4) times in a fiscal year. 14 (f) The council shall: 15 (1) Advise the Arkansas State Apprenticeship Agency regarding 16 duties under § 6-52-305; and 17 (2) Provide community outreach and education regarding the 18 benefits of apprenticeship. 19 20 SECTION 4. Arkansas Code § 6 -55-104(b), concerning administration of 21 the Arkansas Construction Industry Craft Training Program, is amended to read 22 as follows: 23 (b) The program will be administered by the Office of Skills 24 Development in collaboration with the Arkansas Apprenticeship Coordination 25 Steering Committee created by § 6 -52-204. 26 27 SECTION 5. Arkansas Code § 6 -55-105 is amended to read as follows: 28 6-55-105. Program plan. 29 In addition to the duties of the Arkansas Apprentices hip Coordination 30 Steering Committee Office of Skills Development contained in § 6-52-205 under 31 § 6-52-305, the committee office is authorized to develop a plan for the 32 Arkansas Construction Industry Craft Training Program which shall include, 33 but not be limited to, including without limitation, the following: 34 (1) Formulas and administrative procedures to be used in 35 requesting appropriations of state funds for the program Arkansas 36 As Engrossed: S3/27/23 SB425 12 03-27-2023 09:41:57 CRH171 Construction Industry Craft Training Program ; 1 (2) Forms, formulas, and a dministrative procedures to be used in 2 distributing funds to construction craft training programs; and 3 (3) Other administrative procedures or rules as may be necessary 4 for the equitable and efficient operation of the program. 5 6 SECTION 6. Arkansas Code § 6-55-107(d), concerning the expenditure of 7 moneys from the Arkansas Construction Industry Craft Training Trust Fund, is 8 amended to read as follows: 9 (d) Upon the recommendation of the Arkansas Apprenticeship 10 Coordination Steering Committee, the The Office of Skills Development shall 11 expend the moneys in the fund from time to time to support the training 12 program prescribed in this chapter. 13 14 SECTION 7. Arkansas Code § 6 -55-108 is amended to read as follows: 15 6-55-108. Rules. 16 The Office of Skills D evelopment and the Arkansas Apprenticeship 17 Coordination Steering Committee shall promulgate rules necessary to implement 18 the provisions of this chapter. 19 20 SECTION 8. Arkansas Code § 19 -5-1114(b)(2), concerning the 21 administration of the Arkansas Constructi on Industry Craft Training Trust 22 Fund, is amended to read as follows: 23 (2) The fund shall be used to support training programs set out 24 in The Arkansas Construction Industry Craft Training Act, § 6 -55-101 et seq., 25 administered by the Office of Skills Deve lopment and the Arkansas 26 Apprenticeship Coordination Steering Committee . 27 28 SECTION 9. Arkansas Code § 25 -16-903(62), concerning the authorization 29 for a sixty dollar stipend for certain state boards, is repealed. 30 (62) Arkansas Apprenticeship Coordination Steering Committee; 31 32 SECTION 10. Arkansas Code § 25-16-903, concerning the authorization 33 for a sixty dollar stipend for certain state boards, is amended to add an 34 additional subdivision to read as follows: 35 (72) Arkansas Apprenticeship Council. 36 As Engrossed: S3/27/23 SB425 13 03-27-2023 09:41:57 CRH171 1 /s/J. 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