(a) During any 12 month period, every active program must have at least one registered apprentice.

1. (1) Newly approved programs shall undergo a two year probation beginning on the first apprentice’s start date or the program approval date, whichever comes later. Sponsors of newly approved programs shall be advised that their programs are being approved contingent upon successful completion of probation. During probation, a sponsor may not submit any new program applications, nor change its approach.

2. (2) The performance of provisionally approved programs shall be evaluated by the department during probation based upon the sponsor’s and signatories’ compliance with the following factors:

   1. (i) the continuous enrollment of an apprentice(s);
   2. (ii) the payment of wages as specified in the apprenticeship agreement, and the availability of such documentation for review by the department;
   3. (iii) verifiable documentation of task rotation and skill development;
   4. (iv) verifiable documentation of participation in related and supplemental instruction;
   5. (v) the proper supervision of apprentices, including maintenance of an appropriate ratio of apprentices to journeyworkers, and documentation that such ratios have been maintained on the jobsite;
   6. (vi) the provision of a safe work environment as prescribed by the occupational safety and health act (OSHA) and the regulations thereto;
   7. (vii) the terms and conditions/provisions as indicated on the program registration agreement;
   8. (viii) the provisions of Labor Law, article 23, this Part and Part 600 of this Title; and
   9. (ix) articles 8 and 9 of the Labor Law, the Workers’ Compensation Law, and all other Federal or State laws governing the terms and conditions of employment.

3. (3) Probation review options.

   1. (i) The department may cancel the registration of any program at any point during probation for violating any of the regulations contained in this Part.

   2. (ii) After a review of the new program’s performance during probation, the sponsor will be notified whether it:

      1. (a) passed probation; or
      2. (b) will have its probation extended for a period of no more than one year; or
      3. (c) failed probation.
   3. (iii) A sponsor of a program that has had its probation extended pursuant to this section, or that has failed probation, shall be informed of the reasons why this decision was made.
   4. (iv) A sponsor whose program has been placed on an extended probation shall be required to submit a proposed corrective action plan addressing the deficiencies identified in the notice and a proposed time frame for its implementation. Both components of the proposed corrective action plan must receive department approval.
   5. (v) A sponsor whose program fails probation may file a written appeal of the decision by sending a letter to the commissioner within 30 days of written notification of the determination, setting forth the grounds for contesting the department’s determination.

4. (4) Sponsors of programs whose registrations are cancelled during probation, deemed deregistered, or fail probation shall not reapply, seek reinstatement, or apply for a new program for a period of one year following notification by the department. This period additionally applies to applications for registration of any apprenticeship program by any owner, officer, successor or substantially owned-affiliated entity of/to the sponsor.

   (c) Program evaluation and monitoring.

5. (1) Every registered program will be monitored periodically by the department for the quality of its performance in providing apprenticeship training, including, but not limited to:

   1. (i) compliance with Federal and State laws;
   2. (ii) providing equal opportunity in employment;
   3. (iii) compliance with department standards for apprenticeship programs as outlined in section 601.5 of this Part; and

   4. (iv) completion rates:

      1. (a) For purposes of Federal reporting, completion rates shall be calculated annually by cohort (class of apprentices).

         1. (1) Each cohort’s completion rate shall be compared to the national average for completion rates as determined by the U.S. Department of Labor.
         2. (2) Apprentices who leave before the expiration of their probation shall not be included when calculating this completion rate.
         3. (3) Programs with completion rates below the national average shall be offered such technical assistance as may be required.
      2. (b) In evaluating a program’s performance, the department shall not be limited to the cohort method of calculating completion rates, but may take into account additional factors such as period of time over which rate is calculated, seasonality, regional differences, program size, and general economic conditions affecting employee retention.

6. (2) To the extent that correctable deficiencies are found, the department shall offer technical assistance to the program sponsor as necessary to bring the program into compliance. If reasonable efforts to bring the program into compliance fail, or if the deficiencies are such that the department does not find that they are correctable, the department shall seek program deregistration.

   (d) Re-certification.

7. (1) All apprenticeship programs shall undergo a recertification process at or about the time that the program completes its first training cycle following program registration, and at least every five years thereafter.
8. (2) Each sponsor seeking re-certification shall complete an updated program registration agreement, sponsor information sheet, and update any other program information that may be out of date.

9. (3) Signatories.

   1. (i) Each sponsor of a group joint or group non-joint program shall submit a current list of program signatories’ names, addresses, and Federal employer identification numbers or New York State unemployment insurance employer numbers in an electronic format as specified by the department.
   2. (ii) The department must be notified of the association or disassociation of a signatory within 90 days, pursuant to section 601.5(g) of this Part.
   3. (iii) The sponsor shall provide assurances in writing to the department that the sponsor will hold all signatories to the standards of their State program registration agreement.
10. (4) Each sponsor undergoing re-certification must agree to comply with section 601.4(a)(4) of this Part, which forbids a sponsor from requiring an applicant to pay an application, processing, or similar fee.
11. (5) Applicants for all group programs (joint and non-joint) shall make available to the department signed copies of their union collective bargaining agreements or group association membership agreements for review, upon request. Such agreements must include language that makes the requirements on the program registration agreement applicable to their signatories, either in the terms of the agreement or in an ancillary agreement that is approved by the department. If the applicant does not have a written agreement with its signatories, it must submit the ancillary group-sponsor signatory agreement provided by the department.

12. (6) Based on a review of the sponsor’s performance during the period prior to re-certification, the sponsor will receive notification that:

    1. (i) the sponsor’s apprenticeship program has been renewed; or
    2. (ii) the sponsor was found to have committed the violations specified, and is required to submit a corrective action plan to the department which addresses the deficiencies identified in the notice with a proposed time frame for the plan’s implementation. Both components of the plan require department approval. Formal deregistration will be pursued if corrective action is not approved by the department; or the sponsor has not taken the approved corrective action to resolve all issues within a reasonable period of time approved by the department; or

    3. (iii) the sponsor’s apprenticeship program has been recommended for deregistration, and the reasons therefor.

       (e) Programs with no apprentices.

13. (1) Any program, except programs operated by State agencies and those granted inactive status, that has not had an apprentice registered with the department for a period of 12 consecutive months shall be deemed deregistered. The department will follow up such deregistration with a letter acknowledging that the program has been deregistered. The letter will include the effects that such deregistration may have on an employer and the effective date of the deregistration. In order for a sponsor to reinstate a program which was deregistered under this section, the sponsor must reapply and meet all the requirements contained in article 23 of the Labor Law, this Part and Part 600 of this Title.

14. (2) No later than 30 days before the conclusion of the 12 month period referred to in paragraph (1) of this subdivision, a sponsor, who would otherwise be “deemed deregistered,” may request that its program be placed in inactive status (inactive program).

    1. (i) The commissioner, in his/her discretion may grant inactive status only to sponsors found to be in compliance with article 23 of the Labor Law, this Part and Part 600 of this Title, and other State and Federal laws for the protection of workers.
    2. (ii) If granted, inactive status shall run from the end of the 12 month period referred to in paragraph (1) of this subdivision.
    3. (iii) An employer who is associated with an inactive program shall not be deemed to have a registered New York State program for purposes of work performed pursuant to articles 8, 8A, and 9 of the Labor Law.

    4. (iv) An inactive program shall be deemed reactivated upon completion of all of the following:

       1. (a) the registration of an apprentice by filing an apprenticeship agreement;
       2. (b) the filing of newly updated sponsor information sheet and program registration agreement forms, and such other form(s) as the commissioner may require, by the sponsor; and
       3. (c) the review and approval of such forms by the department.
    5. (v) After a period of 12 months of inactive status, inactive programs will be deemed deregistered, unless this period is extended at the discretion of the commissioner due to circumstances related to extended periods of unemployment, an economic downturn, or other circumstances warranting a longer period of time.
    6. (vi) Programs on probation are not eligible for inactive status.

(b) Program probation.