Committee advances bill to expand apprenticeship-fund contributors to include road, utility and maintenance contractors (6-4)
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Summary
The Senate Tax, Business and Transportation Committee voted 6-4 to recommend passage of a bill removing an exclusion that kept certain road, bridge and utility contractors from contributing to the state apprenticeship and training fund.
The Senate Tax, Business and Transportation Committee voted 6-4 to recommend passage of legislation that would remove the longstanding exclusion for certain public-works contractors and require them to contribute to the state apprenticeship and training fund.
Sponsor testimony said the bill strikes exclusionary language that previously exempted street, highway, bridge, road, utility and maintenance contractors from contributing to the apprenticeship fund. The sponsor and supporting witnesses said the change is intended to broaden apprenticeship funding, increase on-the-job training capacity and retain craft workers in New Mexico.
Supporters included organized labor and trade groups who said the measure closes an historical loophole and would help scale training programs. John Lipschutz of the New Mexico Federation AFL-CIO, Mark Trujillo of IBEW, Matthew Suazo of the Carpenters, and representatives of the Building Trades and Mechanical Contractors testified in favor, saying apprenticeships are the “gold standard” for workforce development.
Opponents — including representatives of heavy-highway contractors, asphalt associations and associated contractors — told the committee they already run training programs (some approved by FHWA) and that the new contribution would impose costs on firms that do not benefit directly (for example, striping crews, flagging and certain small specialty contractors). Several opponents said that many highway contractors already operate approved training programs and argued the levy could increase the cost of public works projects.
Committee debate focused on three exemptions and options for employers: (1) establish and operate an approved registered apprenticeship program (which would exempt the employer from the levy for hours where apprentices are enrolled); (2) participate in an existing approved apprenticeship program; or (3) make contributions to the Public Works Apprenticeship and Training Fund. The sponsor said the Department of Workforce Solutions can absorb implementation costs and that projected statewide fiscal impacts would be modest compared with total project costs.
A roll call produced a 6-4 do-pass recommendation. The committee report will accompany the bill as it proceeds to the next stage.
