Committee advances bill to create state apprenticeship office, exempts existing trade boards

The Industry, Business and Labor Committee on Wednesday voted to send House Bill 1036 forward, as amended, to appropriations after adding language to preserve existing apprenticeship programs overseen by independent boards.

The bill would establish a state office to support and expand apprenticeship programs; Representative Jordan Koppelman, who worked on components of the measure, told the committee he sought a narrow amendment so the proposal would not “supersede the existing boards” that already manage trade apprenticeship programs such as the State Electrical Board’s program.

Committee discussion centered on two issues: whether the U.S. Department of Labor should retain final approval authority for registered apprenticeships, and which state agency should “house” the proposed office. James Schmidt, executive director of the State Electrical Board, told the panel the board has run its own education and apprenticeship oversight since 2018 and opposed giving USDOL final “rubber stamp” authority. “We have enough qualified people in the state to do that,” Schmidt said, describing the board’s education committee and program structure.

Phil Davis, Workforce Service Director for Job Service North Dakota, told lawmakers Job Service already works with the USDOL apprenticeship office and maintains a list of more than 100 registered sponsors employing and training about 1,750 apprentices statewide. Davis said Job Service is “well positioned to stand up this office” and would collaborate with the Department of Commerce, Department of Labor and other partners.

Representative Koppelman said the amendment was intended to reassure trade groups that the office would not displace existing boards. Several lawmakers expressed concern about long-term staffing and funding; Davis said the bill’s funding would become part of Job Service’s base budget if the office is created and added that the agency has experienced staff reductions since 2007 and would use the requested FTEs to staff the office.

After debate, the committee adopted Representative Koppelman’s amendment to exempt apprenticeship programs “that are under the management and oversight of other boards and commissions within the state.” Representative Koppelman then moved a “due pass as amended” recommendation and the committee approved the bill by roll call. The committee chair later said the amendment protects a program “that actually is working really well and can provide a model for the rest of this to follow.”

The committee record shows a close vote; the motion was recorded as passing with seven members in favor, six opposed and one recorded as an abstention. The bill was referred to appropriations.

Why it matters: The bill would create a state-level resource intended to expand apprenticeship pathways for employers and job seekers. Supporters argued a Job Service-based office could help employers set up apprenticeship programs and connect apprentices with training; trade boards and some committee members pushed back on giving the federal USDOL final control of state programs and sought to protect existing state-managed programs.

What’s next: With a due-pass recommendation as amended, the bill moves to the appropriations committee for consideration. The amendment directs that the state office not displace boards already overseeing trade apprenticeship programs.