Senate rejects bill to make Department of Labor state apprenticeship agency

Senate Bill 67, a proposal to designate the Department of Labor and Regulation (DLR) as South Dakota92s State Apprenticeship Agency, failed Jan. 30 after the Senate voted 14-21 to defeat final passage.

Supporters said the change would let the state approve and tailor apprenticeship programs for South Dakota employers instead of relying on the U.S. Department of Labor92s Office of Apprenticeship. "Registered apprenticeships are a proven model that meets employers' immediate workforce need," said Senator Kolbeck. He told colleagues the state has grown its registered apprenticeship programs from 55 in 2017 to 164 in 2024 and that apprentice counts rose from about 762 in 2017 to over 1,500 in 2024.

Opponents focused on funding and long-term costs. "This is taking one-time dollars for an ongoing program," said Senator Carr, urging a no vote because the department92s start-up funding is a two-year, one-time grant provided by the Governor's Office of Economic Development, not an ongoing appropriation. Carr said the program could cost about $600,000 annually once initial funds expire and that the Legislature had not been given multiyear budget planning for that commitment.

Other senators opposed the bill on principle or because of concerns about the rulemaking authority the measure would trigger. "Every time you promulgate rules, you slit your throat," said Senator Otten, warning that broad rulemaking language in the bill would limit future legislative oversight. Senator Howard framed his opposition in philosophical terms, saying he did not believe establishing a state office for apprenticeship was an appropriate government role.

Supporters countered that leaving apprenticeship program approval to the federal Office of Apprenticeship limits the state92s ability to develop programs tailored to local workforce needs. Senator Crabtree said the state92s experience showed the model was working and that the bill simply moved program approval closer to South Dakota employers.

The Senate held a roll-call vote on final passage. The chair announced that the bill did not receive a majority and was declared lost. The apprenticeship programs authorized under federal registration remain available to employers regardless of the bill92s outcome.

The Senate92s debate included questions about the timeline for implementing a state agency, how rulemaking would proceed, and whether the department would return to the Legislature seeking ongoing appropriation after the initial grant period.