Committee debates HB 588 to expand apprenticeship fund participation for public works contractors

Representative (sponsor) presented House Bill 588, which would require employers on public works construction projects to take one of three actions: contribute to the public works apprenticeship and training (PWAT) fund (60¢ per labor hour), pay into an existing registered apprenticeship program, or run a registered apprenticeship program and be exempt from contributions. The sponsor framed the bill as workforce and economic development and noted growth in the number of registered apprenticeship programs in recent years.

Secretary Sarita Nair (Department of Workforce Solutions) and Matthew Swaddis of the Western States Carpenters testified in favor, saying apprenticeship programs build a trained, local workforce and keep public-works dollars in-state. "This bill is about ensuring New Mexico's public works projects don't just build roads, bridges, and infrastructure, but also build our workforce," Matthew Swaddis said.

Supporters included labor and building trades groups. John Lipshoots of the New Mexico Federation of Labor characterized the measure as a workforce and fairness bill, while Mark Cardenas of the Western States Carpenters said it would keep tax dollars in New Mexico and strengthen local skills.

Opponents included the Asphalt Pavement Association of New Mexico, Associated Contractors of New Mexico, New Mexico Utility Contractors Association and several contractors' associations. Franklin Garcia (Asphalt Pavement Association) said the industry already runs federal- and DOT-approved training programs and that removing the highway/utility exemption "does not provide any benefit to the construction industry" and could create legal ambiguities. Jane Jernigan of the New Mexico Utility Contractors Association said many utility contractors would be forced to pay into a fund that would not return benefits to their in-house training. Jim Garcia of the Associated Contractors of New Mexico said ACNM sponsors 22 training programs and that the highway industry has used its own training (TTCP) for 30 years.

Legislators pressed on costs and exemptions. Representative Lundstrom noted the fiscal impact report's estimate that, if passed and applied to NMDOT hours shown in FY21–22, the fund could add roughly $983,000–$1.1 million annually (60¢ times reported labor hours). Secretary Nair and presenters said contractors that already operate registered apprenticeship programs or register programs would not have to contribute to the PWAT fund, and that registered programs can be set up (presenters said timelines can vary from months to two years depending on existing curricula).

Representative Armstrong and other members asked about implementation and whether the PWAT contribution would slow or block projects; presenters said the department pursues compliance through audits and generally does not withhold project starts but enforces after award. Representative Lundstrom and Leader Armstrong voiced concern about increasing costs on fixed-price maintenance contracts and the potential impact on local governments and small specialty contractors.

Why it matters: Supporters say HB 588 would grow the pipeline of skilled workers to meet a looming shortage of experienced tradespeople on public works projects and keep federal and state dollars in-state. Opponents said the bill risks increasing project costs and could impose charges on contractors that already maintain robust, industry-specific training programs.

Outcome: The committee heard extensive testimony and questions and did not reach a final recorded vote during the portion of the hearing in the transcript; sponsors said they will work with stakeholders and expect amendment discussions going forward.