AB 973

Under current law, any person 16 years of age or over may enter into an

apprenticeship, which is a contract whereby the person (apprentice) is to receive

from his or her employer, known as a sponsor, in consideration for the apprentice's

services, instruction in any trade, craft, or business. That instruction may include

related classroom instruction. Current law also provides for a youth apprenticeship

(YA) program. The apprenticeship and youth apprenticeship programs are

administered by the Department of Workforce Development. This bill makes various

changes related to apprenticeships and youth apprenticeships, including:

Apprenticeship completion awards

Current law provides for an apprenticeship award completion program

(ACAP), administered by DWD, under which apprentices and their sponsors may

receive reimbursement for tuition costs charged to an apprentice to participate in the

classroom instruction for the apprenticeship. Apprenticeship completion awards are

limited to 25 percent of the cost of tuition incurred by the apprentice or sponsor or

$1,000, whichever is less, except that DWD may, if funding is not available to fully

fund awards, reduce the reimbursement percentage or deny applications for

completion awards that would otherwise qualify. This bill does all of the following

with respect to the ACAP:

1. Expands the ACAP to also allow reimbursement for the cost of tools and

materials and travel costs.

2. Creates a youth apprenticeship completion award program (YACAP), under

which youth apprentices and employers may receive reimbursement for the cost of

tools and materials, travel costs, and worksite mentor expenses. Youth

apprenticeship completion awards are limited to 25 percent of eligible costs incurred

by the apprentice or employer or $500, whichever is less, for a given year of youth

apprenticeship, subject to a maximum of two awards for a total maximum of $1,000,

except that DWD may reduce the reimbursement percentage or deny applications as

under current law for the ACAP. The YACAP is limited to youth apprenticeships in

the areas of architecture and construction.

3. Provides additional funding for the ACAP and YACAP programs.

Apprenticeship expenses tax subtraction

This bill allows an individual, when calculating income for state income tax

purposes, to subtract eligible apprenticeship expenses paid by the individual for the

individual or the individual's dependent to participate in an apprenticeship program

that is approved by DWD. The deduction first applies to taxable years beginning

after December 31, 2021. The bill defines eligible apprenticeship expenses as those

expenses eligible under the ACAP as described above.

Career and technical education incentive grants and completion awards

Current law requires DWD to approve industry-recognized certification

programs designed to a) mitigate workforce shortages and b) prepare individuals for