Quick-Service Restaurant Young Workforce Apprenticeship Program: tax credits.

Assembly Member Alanis proposes establishing a Quick-Service Restaurant Young Workforce Apprenticeship Program that would provide tax credits to small franchise owners who employ and train young workers through certified apprenticeship programs. The initiative aims to create employment pathways in the quick-service restaurant industry while helping businesses manage recent minimum wage increases.

The program would allow qualifying restaurant operators who own fewer than 50 locations to receive a $1,000 tax credit for each registered apprentice employed for at least six months, with a cap of 100 apprentices annually per employer. Eligible apprentices must be between 16 and 22 years old with no prior fast food experience and must be paid at least 85 percent of the state-mandated fast food minimum wage while enrolled in an approved training program.

The Division of Apprenticeship Standards would administer the program, providing grants and funding to support apprenticeship initiatives through 2031. The division would verify employer eligibility, certify apprenticeship programs, and produce annual reports tracking program participation and outcomes. The Franchise Tax Board would oversee the tax credit aspects, including developing procedures to prevent improper claims.

The bill includes provisions for early termination of apprenticeships under specific circumstances, such as voluntary departure, disability, misconduct, or business downsizing, without employers losing tax credit eligibility. Annual reporting requirements would track the number of participating businesses, apprentices enrolled and completing programs, subsequent hiring rates, and overall fiscal impact through 2031 when the program is set to expire.