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Montana Administrative Register Notice 24-21-378 No. 17   09/10/2021    
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                 BEFORE THE DEPARTMENT OF LABOR AND INDUSTRY

                                        OF THE STATE OF MONTANA 

 

In the matter of the amendment of ARM 24.21.102 and 24.21.1003 and the adoption of New Rules I through IV pertaining to Montana's registered apprenticeship program and recognition of pre-apprenticeship programs

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT AND ADOPTION

 

            TO: All Concerned Persons

 

            1. On October 12, 2021, at 10:00 a.m., the Department of Labor and Industry (department) will hold a public hearing via remote conferencing to consider the proposed amendment and adoption of the above-stated rules. There will be no in-person hearing. Interested parties may access the remote conferencing platform in the following ways:

            a. Join Zoom Meeting, https://mt-gov.zoom.us/j/81731846491, Meeting ID: 817 3184 6491; or

            b. Dial by telephone, +1 406 444 9999 or +1 646 558 8656, Meeting ID: 817 3184 6491.

                  

            The hearing will begin with a brief introduction by department staff to explain the use of the videoconference and telephonic platform. All participants will be muted except when it is their time to speak.

 

            2. The department will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice. If you require an accommodation, contact the department no later than 5:00 p.m., on October 4, 2021, to advise us of the nature of the accommodation that you need. Please contact Jay Reardon, Workforce Services Division, P.O. Box 1728, Helena, Montana 59624-1728; telephone (406) 444-3556; facsimile (406) 444-3037; Montana TTD (406) 444-5549; or e-mail james.reardon@mt.gov.

 

            3. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

 

            24.21.102 DEFINITIONS  As used in this subchapter, the following definitions apply:

            (1) remains the same.

            (2)  "Apprenticeship articulation agreement" means an agreement between a pre-apprenticeship program and a registered apprenticeship program that defines the steps required for a pre-apprenticeship program participant to enter a registered apprenticeship program.

            (3)  "Apprentice-to-journey worker occupations" means inside wiremen and residential electricians subject to the license requirements in ARM Title 24, chapter 141; plumbers subject to the license requirements in ARM Title 24, chapter 180; sprinkler fitters subject to the license requirements in ARM Title 24, chapter 144; and elevator constructors subject to the license requirements in ARM Title 24, chapter 142.

            (2) remains the same but is renumbered (4).

            (5)  "Pre-apprenticeship" means a department-recognized workforce training program endorsed by one or more registered apprenticeship sponsors that focuses on educating and training program participants to achieve at least minimum qualifications for entry into registered apprenticeship programs upon completion.

            (3) through (5) remain the same but are renumbered (6) through (8).

 

            AUTH:   39-6-101, MCA

            IMP:       39-6-101, 39-6-105, MCA

 

REASON: There is a reasonable necessity to amend this rule to define the necessary terms for the standardization of pre-apprenticeship programs in the state.  There is also a reasonable necessity to adopt a definition for "apprentice-to-journey worker occupations" due to the different requirements for apprenticeships in these specific occupations versus all other occupations.

           

            24.21.1003 APPRENTICE-TO-JOURNEYMAN RATIO (1)  For apprentice-to-journey worker occupations, as defined in ARM 24.21.102(3), the The apprentice-to-journeyman ratio may not exceed the following criteria:

            (a)  The first One journeyman employed by a sponsor may supervise one apprentice.  

            (b)  Two additional journeymen employed by the sponsor are required to supervise each additional apprentice.

            (2)  For all other occupations, the apprentice-to-journeyman ratio shall be one-to-one, unless industry standards determine a different ratio for that occupation.

            (2) (3)  An apprentice that has completed 60 70 percent or more of the on-the-job training hours and 60 70 percent or more of the related instruction in an apprenticeship program is not counted for purposes of the apprentice-to-journeyman ratio provided for in (1).

            (3) remains the same but is renumbered (4).

            (4) (5) In order to prevent abuse of the apprentice-to-journeyman ratio, the department will monitor the progress toward completion of all apprentices who have reached the 60 70 percent completion criteria provided for in (2) (3).

            (a) and (b) remain the same.

            (c) As a general practice, the apprentice-to-journeyman ratio may not ordinarily be more than one apprentice to one journeyman, notwithstanding the provisions of (2) (3). A ratio of more than one-to-one may be allowed in the special case of a shop with a single working master with no journeyman employees, or in the event of a separation from employment by a journeyman employee that temporarily creates a more than one-to-one ratio.

            (d) remains the same.

 

            AUTH:   39-6-101, MCA

            IMP:       39-6-102, 39-6-106, MCA

 

REASON:  The department operates Montana's state apprenticeship agency and state office for apprenticeship pursuant to 29 CFR § 29, subpart A.  Federal rules do not define the numeric ratio of journey workers to apprentices under 29 CFR § 29.5(a)(7), and the department is required to establish this ratio pursuant to 39-6-106(1)(i), MCA.

            There is a reasonable necessity to amend this rule to allow for more individuals to enter registered apprenticeship programs while acknowledging that Montana currently has a lack of journey workers across many occupations.  This apprenticeship-to-journeyman ratio will continue to ensure safety and quality training.

            There is a reasonable necessity to amend the percentage of completion of the apprenticeship program required by an individual apprentice for that individual apprentice not to count in the apprenticeship-to-journeyman ratio to ensure safe and quality apprenticeship training.  The amendment also makes ARM 24.21.1003 consistent with the language of ARM 24.21.1002(4), which states that "[a]n apprentice who has completed no less than 70 percent of the apprentice's required term and is completely current with related instruction may work with limited supervision.  The apprentice's work must be physically examined on a daily basis by a journeyworker or master for correctness."

 

            4. The proposed new rules are as follows:

 

            NEW RULE I  PRE-APPRENTICESHIP PROGRAM RECOGNITION APPLICATION (1)  A workforce training program may submit written materials to the department for recognition as a pre-apprenticeship program.  Materials may be mailed to the Montana Registered Apprenticeship Program, P.O. Box 1728, Helena, Montana 59624; or e-mailed to Apprenticeship@mt.gov.  The materials must include:

            (a)  a completed application available from the department's web site at apprenticeship.mt.gov;

            (b)  details of the workforce training program, including required classes, training, hour and/or credit requirements, and estimated time required to complete the program;

            (c)  a description of the workforce training program's coordination with an existing registered apprenticeship program(s); and

            (d)  a description of how the workforce training program will prepare participants to enter an existing registered apprenticeship program.

            (2)  The department shall evaluate completed requests for recognition as they are received.

 

            AUTH:   39-6-101, MCA

            IMP:       39-6-101, 39-6-103, 39-6-106, MCA

 

REASON:  There is a reasonable necessity to adopt this new rule to acknowledge and standardize the requirements of a pre-apprenticeship program.  The department is Montana's state apprenticeship agency and state office for apprenticeship pursuant to 29 CFR part 29, subpart A.

            Federal rules do not define "pre-apprenticeship" programs; however, the federal government provides criteria to develop quality pre-apprenticeship programs. https://www.apprenticeship.gov/employers/explore-pre-apprenticeship.  Case studies show that participation in pre-apprenticeship programs can increase diversity of applicants, increase program efficiency, and raise retention rates for participants.  Jobs for the Future, Pre-Apprenticeship Partnerships at CVS Health:  An Employer's Perspective, 2017, www.apprenticeship.gov/case-studies/cvs-health.  After reviewing programs administered by other state apprenticeship agencies, the department determined that Washington state's pre-apprenticeship program was an appropriate model that could be adapted to serve Montana's registered apprenticeship program, employee sponsors, and workforce training programs.

            The new rule clarifies what is required for a pre-apprenticeship program to gain recognition by the department.  The rule ensures that pre-apprenticeship programs are working in coordination with existing registered apprenticeships to provide training program participants with applicable knowledge and skills to help training program participants become successful apprentices.

 

            NEW RULE II  PRE-APPRENTICESHIP PROGRAM APPLICATION EVALUATION (1)  The department shall evaluate each workforce training program on a case-by-case basis due to the wide variety of occupations involved in the department's registered apprenticeship program.  The department may consider any relevant information when reviewing the program's recognition application.

            (2)  In addition to the application requirements in [NEW RULE I], the department may consider the following, as appropriate, when evaluating a workforce training program for recognition:

            (a)  the incorporation of safety training in all aspects of the program;

            (b)  the incorporation of interpersonal or "soft skills";

            (c)  the incorporation of traditional education concepts, such as reading, writing, and basic math, as those skills apply to the apprenticeship program; and

            (d)  the participant engagement strategy, specifically including how the program will work to recruit and retain participants from underrepresented populations including, but not limited to, women, minorities, veterans, justice-connected individuals, at-risk youth, and individuals with disabilities.

            (3)  The department shall provide the workforce training program with written notice if they are approved for recognition.

            (4)  If a program is not approved for recognition, the department shall provide a written explanation to the program explaining why the program was not approved for recognition.  The program may reapply for recognition three months after the department serves the written explanation of why the program was not approved for recognition.

 

            AUTH:   39-6-101, MCA

            IMP:       39-6-101, 39-6-103, 39-6-106, MCA

 

REASON:  The new rule provides for sufficient flexibility in the education programs due to the wide variety of occupations that are part of the registered apprenticeship program.  Specific requirements for different occupations can be elaborated in department policy and/or addressed on a case-by-case basis.

 

            NEW RULE III  PROGRAM RECOGNITION AND APPRENTICESHIP ARTICULATION AGREEMENT  (1)  When a workforce training program is approved for recognition by the department, the program may enter into an apprenticeship articulation agreement with a department-approved registered apprenticeship.

            (a)  The apprenticeship articulation agreement must include the following:

            (i)  be signed by representatives of both the workforce training program and the registered apprenticeship's sponsor employer;

            (ii)  clearly define the requirements for the pre-apprenticeship program; and

            (iii)  clearly define the effective dates of the agreement, not to exceed three years; and

            (b)  An apprenticeship articulation agreement may allow, but is not required to allow, participants who successfully complete the pre-apprenticeship program to have direct-entry options or application preference into the corresponding registered apprenticeship.

            (2)  A copy of the signed apprenticeship articulation agreement must be filed with the department.  When a completed apprenticeship articulation agreement is filed with the department:

            (a)  the department shall list recognized pre-apprenticeship programs on the department's registered apprenticeship web site;

            (b)  parties to an apprenticeship articulation agreement shall submit a participant progress report on an annual basis on forms provided by the department; and

            (c)  the sponsor employer may employ one pre-apprentice, who shall not be counted towards the traditional apprentice ratio under ARM 24.21.1003, for a period of not more than 100 days from January 1 through December 31 of a single calendar year.  A sponsor employer may ask the department for an extension of employment of the pre-apprentice of no more than 30 days without having the pre-apprentice count under ARM 24.21.1003.

 

            AUTH:   39-6-101, MCA

            IMP:       39-6-101, 39-6-103, 39-6-106, MCA

 

REASON:  The new rule provides for sufficient flexibility in the recognition applications for workforce training programs due to the wide variety of training programs and corresponding occupations in the registered apprenticeship program.  The criteria in (2) are not required for a program to apply for or be granted recognition by the department because the criteria may not be appropriate for all workforce training programs.  Specific requirements for different workforce training programs for corresponding occupations can be elaborated in department policy and/or addressed on a case-by-case basis.

 

            NEW RULE IV  REAPPLICATION AND DISCONTINUING RECOGNITION

            (1)  A workforce training program that is approved for recognition may reapply for continued recognition at the end of the term of the apprenticeship articulation agreement on forms provided by the department.  The reapplication shall include the number of participants who have completed the program, the number of participants currently enrolled in the program, any updates to the program, and curriculum.

            (2)  The department reserves the right to discontinue recognition under this rule of any workforce training program upon request of the program, or if the department determines that the program is not operating in a manner consistent with the program's application or any applicable law.  The department shall consider evidence of a program not complying with the application or applicable law to be a dispute pursuant to ARM 24.21.416(1), and the department shall follow the procedure of ARM 24.21.416 and the Montana Administrative Procedure Act, Title 2, chapter 4, part 6, MCA.

 

            AUTH:   39-6-101, MCA

            IMP:       39-6-101, 39-6-103, 39-6-106, MCA

 

REASON:  The new rule clarifies how a workforce training program can reapply for recognition and how a program can request to cease recognition.  The rule outlines how the department may initiate a dispute to cease recognizing a program if the program does not comply with the application or applicable law.  The rule recognizes the existing rule for addressing disputes within the registered apprenticeship program, ARM 24.21.416, and the application of the Montana Administrative Procedure Act, Title 2, chapter 4, part 6, MCA.

 

            5. Concerned persons may present their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to Jay Reardon, Workforce Services Division, P.O. Box 1728, Helena, Montana 59624-1728; facsimile (406) 444-3037; or e-mail DLIRatioComments@mt.gov, and must be received no later than 5:00 p.m., October 12, 2021.

 

            6. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request, which includes the name and e-mail or mailing address of the person to receive notices and specifies the particular subject matter or matters regarding which the person wishes to receive notices. Such written request may be mailed or delivered to the contact person in paragraph 2 above.

 

            7. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

            8. Pursuant to 2-4-111, MCA, the department has determined that the rule changes proposed in this notice will have a significant and direct impact upon small businesses.  The department has determined that the proposed amendment to the apprentice-to-journeyman ratio will have a positive impact on small-business employers that sponsor registered apprentices because a greater number of individuals will be able to enter apprenticeships.

            The amendment to the apprentice-to-journey worker ratio is significant for small businesses because the majority of sponsor employers are small-business employers with fewer than five apprentices.  The department currently has 565 registered employer sponsors in the five licensed occupations of inside wiremen, residential electricians, plumbers, sprinkler fitters, and elevator constructors.  The current total number of active apprentices across these five occupations is 1,188, or 61%, of the 1,985 current total active registered apprentices.  Of the 565 registered employer sponsors, 525, or 93%, are small employers with fewer than five apprentices.  Many of these small employers operate in rural areas of the state where it is difficult to recruit journey workers to supervise apprentices.

            The amendments will allow employers to directly hire a greater number of apprentices, without hiring more journeymen, while still maintaining effective and safe training and supervision.  The current ratio of one apprentice to one journey worker and an additional two journey workers required to add an additional apprentice has made it difficult for smaller employers to employ a second apprentice.  Small employers, particularly in rural areas, struggle to recruit the required journey workers to meet the current ratio requirement.  For example, many small employers employ two licensed workers.  Under the current rules, employers with two licensed workers can only employ one apprentice because many small employers struggle to recruit and hire a third journey worker to meet the current ratio requirement.  Changing the current ratio to a 1:1 ratio will allow these small employers to hire a second apprentice.

            The 1:1 ratio will ensure new apprentices will continue to get the safe and quality training needed in these five licensed occupations.  The five licensed occupations of inside wiremen, residential electricians, plumbers, sprinkler fitters, and elevator constructors provide essential services to all Montana communities.  The new ratio will also ensure a balance between the number of journey-worker mentors employed and required to supervise additional apprentices.  As more individuals enter and successfully complete registered apprenticeship programs, Montana will eventually have a greater number of journey workers to meet the changing and growing demands of Montana's economy and communities.

 

            9. Department staff has been designated to preside over and conduct this hearing.

 

 

 

/s/ QUINLAN L. O'CONNOR

Quinlan L. O'Connor

Alternate Rule Reviewer

/s/ LAURIE ESAU

Laurie Esau, Commissioner

DEPARTMENT OF LABOR AND INDUSTRY

 

 

            Certified to the Secretary of State August 31, 2021.

 

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