NATIONAL APPRENTICESHIP ACT

[PUBLIC LAW No. 308-75TH CONGRESS]

AN ACT To enable the Department of Labor to formulate and promote the furtherance of labor standards necessary to safeguard the welfare of apprentices and to cooperate with the States in the promotion of such standards.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of Labor is hereby authorized and directed to formulate and promote the furtherance of labor standards necessary to safeguard the welfare of apprentices, to extend the application of such standards by encouraging the inclusion thereof in contracts of apprenticeship, to bring together employers and labor for the formulation of programs of apprenticeship, to cooperate with State agencies engaged in the formulation and promotion of standards of apprenticeship, and to cooperate with the National Youth Administration and with the Office of Education of the Department of the Interior in accordance with section 6 of the Act of February 23, 1917 (39 Stat. 932), as amended by Executive Order Numbered 6166, June 10, 1933, issued pursuant to an Act of June 30, 1932 (47 Stat. 414), as amended.

(29 U.S.C. 50)

SEC. 2. The Secretary of Labor may publish information relating to existing and proposed labor standards of apprenticeship, and may appoint national advisory committees to serve without compensation. Such committees shall include representatives of employers, representatives of labor, educators, and officers of other executive departments, with the consent of the head of any such department.

(29 U.S.C. 50a)

SEC. 3. On and after the effective date of this Act the National Youth Administration shall be relieved of direct responsibility for the promotion of labor standards of apprenticeship as heretofore conducted through the division of apprenticeship training and shall transfer all records and papers relating to such activities to the custody of the Department of Labor. The Secretary of Labor is authorized to appoint such employees as he may from time to time find necessary for the administration of this Act, with regard to existing laws applicable to the appointment and compensation of employees of the United States: Provided, however, That he may appoint persons now employed in division of apprentice training of the National Youth Administration upon certification by the Civil Service Commission of their qualifications after nonassembled examinations.

(29 U.S.C. 50b)

SECTIONS 51 AND 52 OF THE INTERNAL REVENUE CODE OF 1986

(a) DETERMINATION OF AMOUNT.-For purposes of section 38, the amount of the work opportunity credit determined under this section for the taxable year shall be equal to 40 percent of the qualified first-year wages for such year.

(b) QUALIFIED WAGES DEFINED. For purposes of this subpart

(1) IN GENERAL.-The term "qualified wages" means the wages paid or incurred by the employer during the taxable year to individuals who are members of a targeted group.

(2) QUALIFIED FIRST-YEAR WAGES.-The term "qualified first-year wages" means, with respect to any individual, qualified wages attributable to service rendered during the 1-year period beginning with the day the individual begins work for the employer.

(3) ONLY FIRST $6,000 OF WAGES PER YEAR TAKEN INTO ACCOUNT. The amount of the qualified first-year wages which may be taken into account with respect to any individual shall not exceed $6,000 per year.

(c) WAGES DEFINED.-For purposes of this subpart

(1) IN GENERAL.-Except as otherwise provided in this subsection and subsection (h)(2), the term "wages" has the meaning given to such term by subsection (b) of section 3306 (deter

mined without regard to any dollar limitation contained in such section).

(2) ON-THE-JOB TRAINING AND WORK SUPPLEMENTATION PAYMENTS.

(A) EXCLUSION FOR EMPLOYERS RECEIVING ON-THE-JOB TRAINING PAYMENTS.-The term "wages" shall not include any amounts paid or incurred by an employer for any period to any individual for whom the employer receives federally funded payments for on-the-job training of such individual for such period.

(B) REDUCTION FOR WORK SUPPLEMENTATION PAYMENTS TO EMPLOYERS.-The amount of wages which would (but for this subparagraph) be qualified wages under this section for an employer with respect to an individual for a taxable year shall be reduced by an amount equal to the amount of the payments made to such employer (however utilized by such employer) with respect to such individual for such taxable year under a program established under section 482(e) of the Social Security Act.

(3) PAYMENTS FOR SERVICES DURING LABOR DISPUTES.—If— (A) the principal place of employment of an individual with the employer is at a plant or facility, and

(B) there is a strike or lockout involving employees at such plant or facility, the term "wages" shall not include any amount paid or incurred by the employer to such individual for services which are the same as, or substantially similar to, those services performed by employees participating in, or affected by, the strike or lockout during the period of such strike or lockout.

(4) TERMINATION.-The term "wages" shall not include any amount paid or incurred to an individual who begins work for the employer

(A) after December 31, 1994, and before October 1, 1996, or

(B) after December 31, 2003.

(d) MEMBERS OF TARGETED GROUPS.-For purposes of this subpart

(1) IN GENERAL.-An individual is a member of a targeted if such individual is—

group

(A) a qualified IV-A recipient,

(B) a qualified veteran,

(C) a qualified ex-felon,

(D) a high-risk youth,

(E) a vocational rehabilitation referral,
(F) a qualified summer youth employee,
(G) a qualified food stamp recipient, or
(H) a qualified SSI recipient.

(2) QUALIFIED IV-A RECIPIENT.

(A) IN GENERAL.-The term "qualified IV-A recipient" means any individual who is certified by the designated local agency as being a member of a family receiving assistance under a IV-A program for any 9 months during the 18-month period ending on the hiring date.

(B) IV-A PROGRAM. For purposes of this paragraph, the term "IV-A program" means any program providing as

sistance under a State program funded under part A of title IV of the Social Security Act and any successor of such program.

(3) QUALIFIED VETERAN.—

(A) IN GENERAL.-The term "qualified veteran” means any veteran who is certified by the designated local agency as being a member of a family receiving assistance under a food stamp program under the Food Stamp Act of 1977 for at least a 3-month period ending during the 12-month period ending on the hiring date.

(B) VETERAN.-For purposes of subparagraph (A), the term "veteran" means any individual who is certified by the designated local agency as

(i)(I) having served on active duty (other than active duty for training) in the Armed Forces of the United States for a period of more than 180 days, or (II) having been discharged or released from active duty in the Armed Forces of the United States for a service-connected disability, and

(ii) not having any day during the 60-day period ending on the hiring date which was a day of extended active duty in the Armed Forces of the United States. For purposes of clause (ii), the term "extended active duty" means a period of more than 90 days during which the individual was on active duty (other than active duty for training).

(4) QUALIFIED EX-FELON.-The term "qualified ex-felon" means any individual who is certified by the designated local agency

(A) as having been convicted of a felony under any statute of the United States or any State,

(B) as having a hiring date which is not more than 1 year after the last date on which such individual was so convicted or was released from prison, and

(C) as being a member of a family which had an income during the 6 months immediately preceding the earlier of the month in which such income determination occurs or the month in which the hiring date occurs, which, on an annual basis, would be 70 percent or less of the Bureau of Labor Statistics lower living standard.

Any determination under subparagraph (C) shall be valid for the 45-day period beginning on the date such determination is made. (5) HIGH-RISK YOUTH.

(A) IN GENERAL.-The term "high-risk youth" means any individual who is certified by the "designated local agency❞—

(i) as having attained age 18 but not age 25 on the hiring date, and

(ii) as having his principal place of abode within an empowerment zone or enterprise community.

(B) YOUTH MUST CONTINUE TO RESIDE IN ZONE.-In the case of a high-risk youth, the term "qualified wages" shall not include wages paid or incurred for services performed while such youth's principal place of abode is outside an empowerment zone or enterprise community.