SB586: Bill Text

LRB-4438/1

GMM:jld&wlj:jf

2009 - 2010 LEGISLATURE

2009 Senate BILL 586

March 2, 2010 - Introduced by Senator Coggs, cosponsored by Representatives Toles, Sheridan and Sinicki. Referred to Committee on Labor, Elections and Urban Affairs.

SB586,2,2 An Act to repeal 106.01 (2), 106.01 (4), 106.01 (5) (intro.), 106.01 (5) (a), 106.01 (5) (b), 106.01 (5) (c), 106.01 (5) (e), 106.01 (5) (f), 106.01 (5) (g), 106.01 (5i) (a), 106.01 (5i) (b) and 106.01 (5k); to renumber and amend 15.227 (13), 106.001 (3), 106.01 (3), 106.01 (5) (d), 106.01 (5i) (am) 1., 106.01 (5i) (am) 2., 106.01 (5i) (c), 106.01 (5j), 106.01 (6) and 106.01 (10); to amend 15.157 (15) (a), 15.157 (15) (c), 101.136 (4) (a), 101.136 (6) (a) 1., 101.136 (6) (c) 2., 103.70 (1), 104.08 (2m), 106.001 (1), 106.001 (2), 106.01 (7), 106.01 (8), 106.01 (9), 106.02, 106.025 (2), 106.03, 106.13 (3), 145.01 (3), 145.07 (7) (a), 445.095 (3) and 454.10 (1); to repeal and recreate 106.01 (title); and to create 15.227 (13) (a) 1. to 6. and (b), 106.001 (2m), 106.001 (4), 106.001 (5), 106.001 (6), 106.001 (7), 106.01 (5m) (title), 106.01 (6) (title), 106.01 (6) (d) and 106.01 (11) of the statutes; relating to: apprentice contracts, the appointment and composition of the Wisconsin Apprenticeship Council, requiring the exercise of rule-making authority, and providing a penalty.

Analysis by the Legislative Reference Bureau

Introduction

Under current law, any person 16 years of age or over may enter into an indenture, which is a contract whereby the person (apprentice) is to receive from his or her employer, in consideration for the apprentice's services, instruction in any trade, craft, or business. This bill makes various changes relating to the formation and assignment of an apprentice contract, the related instruction that must be provided under an apprentice contract, the procedures for terminating an apprentice contract, and the penalties for nonperformance of an apprentice contract. The bill also makes certain changes relating to the appointment and composition of the Wisconsin Apprenticeship Council.

Apprentice contracts

Formation of apprentice contract. Under current law, an apprentice may enter into an indenture with an employer or with an organization of employees, association of employers, or other similar responsible agency (organization). An indenture must contain the names of the parties; the date of birth of the apprentice; a statement of the trade, craft, or business that the apprentice is to be taught and the time when the apprenticeship will begin and end; an agreement stating the number of hours to be spent in related instruction; an agreement as to the procedures, methods, or plans to be taught; and a statement of the compensation to be paid to the apprentice.

This bill defines or redefines certain terms relating to apprenticeships. Specifically, the bill:

1. Replaces the term "indenture" with the term "apprentice contract" and specifies that an apprentice contract is between the apprentice, the Department of Workforce Development (DWD), and the sponsor of the apprenticeship program or an apprenticeship committee acting as the agent of the sponsor.

2. Replaces the term "organization" with the term "sponsor" and redefines that term to mean any employer, organization of employees, association of employers, committee, or other person operating an apprenticeship program and in whose name the apprenticeship program is approved by DWD.

3. Defines an "apprenticeship committee" as a joint apprenticeship committee, which consists of both employer and employee representatives, or a nonjoint apprenticeship committee, which consists only of employer representatives, designated by a sponsor to administer an apprenticeship program.

4. Defines an "apprenticeship program" as a program approved by DWD providing for the employment and training of apprentices in a trade, craft, or business that includes a plan containing all of the terms and conditions for the qualification, recruitment, selection, employment, and training of apprentices as required under the subchapter of the statutes relating to apprenticeship programs. The bill also requires DWD to promulgate rules providing procedures for approving and rescinding approval of an apprenticeship program.

The bill also eliminates the statutory provisions specifying the provisions that must be included in an indenture and instead requires DWD to promulgate rules specifying the provisions that are required to be included in an apprentice contract.

Assignment of apprentice contract. Current law requires an organization that has entered into an indenture, with the written consent of the other parties to the indenture and the written acceptance of the proposed employer of the apprentice, to assign the indenture to the proposed employer, who is then bound by the terms of the indenture. Similarly, current law permits an employer that has entered into an indenture, with the approval of DWD and the written consent of the other parties to the indenture, to assign the indenture to an organization, which, with the approval of DWD and the written consent of the apprentice, must reassign the indenture to another employer that agrees to perform the unperformed obligations of the indenture. Current law also permits an employer that has entered into an indenture, with the written consent of the other parties to the indenture and the approval of DWD, to assign the indenture to another employer, who must then perform the unperformed obligations of the indenture.

This bill requires a sponsor that is not the proposed employer of an apprentice, or an apprenticeship committee that is acting as the agent of a sponsor, with the written acceptance of the proposed employer of the apprentice, to assign an apprentice contract to the proposed employer, who is then bound by the terms of the apprentice contract. The bill also permits the sponsor or the apprenticeship committee that entered into an apprentice contract to reassign the apprentice contract to a different employer who agrees to perform the unperformed obligations of the apprentice contract.

Related instruction. Current law requires an apprentice to receive not less than four hours per week of related instruction during the first two years of an apprenticeship, to receive a total of not less than 400 hours of related instruction if the apprenticeship is for longer than two years, and to be paid for no fewer than those hours of related instruction at the same rate per hour as the apprentice is paid for services performed. Current law, however, does not prohibit an agreement between the parties requiring the apprentice to take additional instruction on his or her own time in excess of those required hours of related instruction.

This bill requires a sponsor to provide for an apprentice not less than 144 hours per year of related instruction during the first two years of the apprenticeship, not less than a total of 400 hours of related instruction over the term of the apprenticeship if the apprenticeship is for longer than two years, and, if the apprentice is receiving classroom instruction, not less than four hours of related instruction or the equivalent during each week that the school providing the classroom instruction is in session. The bill also requires an employer to pay an apprentice for not less than the number of hours of related instruction required under the bill or under the apprentice contract, whichever is greater, at the same rate per hour as the employer pays the apprentice for services performed, but does not prohibit an agreement between the parties requiring the apprentice to take additional instruction on his or her own time in excess of the number of hours of related instruction required under the bill or under the apprentice contract, whichever is greater. In addition, the bill requires the provider of related instruction to submit reports on grades and attendance to DWD and the sponsor in accordance with standards set by DWD.

Termination of apprentice contract. Under current law, DWD may declare an indenture to be at an end if after due notice and hearing it is proved at the hearing that any apprentice, employer, or organization that is a party to the indenture is unable to continue with the obligations under the indenture or has breached the indenture.

This bill permits DWD to terminate an apprentice contract if after due notice and investigation it is proved that any apprentice, employer, or sponsor that is a party to the apprentice contract is unable to continue with the obligations under the apprentice contract or has breached the apprentice contract. Under the bill, no hearing is required unless the apprentice, employer, or sponsor requests a hearing.

Nonperformance of apprentice contract. Under current law, if either party to an indenture fails to perform any of the stipulations of the indenture, the nonperforming party may be required to forfeit not less than $1 nor more than $100.

This bill increases that penalty to not less than $100 nor more than $1,000 and applies that penalty to an apprentice, sponsor, or assignee employer that fails to perform any of the stipulations of an apprentice contract.

Wisconsin Apprenticeship Council

Appointment and composition of Wisconsin Apprenticeship Council. Under current law, there is created in DWD a Wisconsin Apprenticeship Council (council) whose members are appointed by the Labor and Industry Review Commission (LIRC). This bill requires the council to consist of nine representatives of employers, nine representatives of employees, one representative of the Technical College System (TCS), one representative of the Department of Public Instruction (DPI), two members who represent the public interest, and one permanent classified employee of DWD to serve as nonvoting chairperson of the council. The bill also requires the secretary of workforce development, rather than LIRC, to appoint the members of the council, except that the bill requires the representative of the TCS to be appointed by the director of the TCS and the representative of the DPI to be appointed by the state superintendent of public instruction. In addition, the bill requires all members of the council to be familiar with apprenticeable occupations.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB586, s. 1 Section 1. 15.157 (15) (a) of the statutes, as created by 2009 Wisconsin Act 16, is amended to read:

SB586,5,6 15.157 (15) (a) Two members who represent major insulation companies that sponsor an apprenticeship training program in installing and maintaining thermal system insulation that is approved by the department and that meets the requirements of the department of workforce development under subch. I of ch. 106.

SB586, s. 2 Section 2. 15.157 (15) (c) of the statutes, as created by 2009 Wisconsin Act 16, is amended to read:

SB586,5,13 15.157 (15) (c) Two members who are mechanics with at least 10 years of experience in the area of heat and frost insulation and who have successfully completed training in installing and maintaining thermal system insulation under an apprenticeship program that is approved by the department and that meets the requirements of the department of workforce development under subch. I of ch. 106.

SB586, s. 3 Section 3. 15.227 (13) of the statutes is renumbered 15.227 (13) (a) (intro.) and amended to read:

SB586,5,18 15.227 (13) (a) (intro.) There is created in the department of workforce development a Wisconsin apprenticeship council appointed by the labor and industry review commission. consisting of all of the following:

SB586, s. 4 Section 4. 15.227 (13) (a) 1. to 6. and (b) of the statutes are created to read:

SB586,5,21 15.227 (13) (a) 1. Nine representatives of employers, appointed by the secretary of workforce development.

SB586,5,23 2. Nine representatives of employees, appointed by the secretary of workforce development.

SB586,5,25 3. One representative of the technical college system, appointed by the director of the technical college system.

SB586,6,2 4. One representative of the department of public instruction, appointed by the state superintendent of public instruction.

SB586,6,4 5. Two members who represent the public interest, appointed by the secretary of workforce development.

SB586,6,7 6. One permanent classified employee of the department of workforce development, appointed by the secretary of workforce development, who shall serve as nonvoting chairperson.

SB586,6,9 (b) All members of the Wisconsin apprenticeship council shall be persons who are familiar with apprenticeable occupations.

SB586, s. 5 Section 5. 101.136 (4) (a) of the statutes, as created by 2009 Wisconsin Act 16, is amended to read:

SB586,6,17 101.136 (4) (a) The department shall employ a person who has at least 10 years of experience as a mechanic, and who has successfully completed an apprenticeship program in installing and maintaining thermal system insulation that is approved by the department and that meets the requirements of the department of workforce development under subch. I of ch. 106, as the state inspector. The state inspector shall work under the direct supervision of the secretary or his or her designee.

SB586, s. 6 Section 6. 101.136 (6) (a) 1. of the statutes, as created by 2009 Wisconsin Act 16, is amended to read:

SB586,6,25 101.136 (6) (a) 1. Except as provided in subd. 2., beginning on July 1, 2011, no person may install or maintain thermal system insulation in any building unless that person is a mechanic licensed by the department under this section, is working under the direct supervision of a licensed mechanic, or is serving an apprenticeship in the installation and maintenance of thermal system insulation that meets the requirements specified under subch. I of ch. 106.

SB586, s. 7 Section 7. 101.136 (6) (c) 2. of the statutes, as created by 2009 Wisconsin Act 16, is amended to read: