CS/HB 5/a WORKFORCE DEVELOPMENT & APPRENTICESHIP FUND

Rep Joy Garratt

Actions: HPREF [1] HLVMC/HAFC-HLVMC [2] DP-HAFC [7] DNP-CS/DP/a [8] PASSED/H (63-5) [6] SFC-SFC [9] DP [13] PASSED/S (33-8) SGND BY GOV (Feb. 28) Ch. 5.

Scheduled: Not Scheduled

 House Bill 5 (HB 5) The legislation outlines detailed procedures for financial management, program administration, and oversight to ensure compliance with apprenticeship standards. 

 House Bill 5 (HB 5) 1. Workforce Development and Apprenticeship Trust Fund:
Creation: Establishes the "workforce development and apprenticeship trust fund" within the state treasury.
Funding Sources: Includes distributions, appropriations, gifts, grants, and donations.
Investment: Specifies investment procedures by the state investment officer in consultation with the state treasurer.
Reporting: Mandates quarterly reports on investments and annual reports to legislative committees.
2. Transfers and Appropriations: Specifies annual transfers and appropriations from the trust fund to the public works apprentice and training fund and the workforce solutions department.  Transfers are contingent on the availability of funds.
3. Apprenticeship Program Requirements:  Requires apprenticeship programs to have no unresolved complaints or violations of relevant acts before receiving funds.
4. Administration: Clarifies that the Workforce Solutions Department administers the Public Works Apprentice and Training Act and the Apprenticeship Assistance Act.
5. Allocations and Expenditures: Specifies allocations from the trust fund to the public works apprentice and training fund and the workforce solutions department.  Allows fund expenditure in the event that general fund balances are insufficient.
6. Amendments to Existing Acts:  Modifies definitions and provisions of the Public Works Apprentice and Training Act and the Apprenticeship Assistance Act.
7. Apprenticeship and Training Advisory Committee: Establishes an apprenticeship and training advisory committee with specific membership criteria and responsibilities.
8. Rules and Regulations: Empowers the workforce solutions department to make rules necessary for the implementation of the Apprenticeship Assistance Act.
9. Notice and Publication:  Requires the department to provide statewide publication of available funds for apprenticeship training programs.
10. Distribution of Funds: Outlines procedures for the distribution of funds to apprenticeship training programs.
11. Audit Procedures: Mandates clear audit trails for funded projects and specifies records required for auditing.
12. Budget and Disbursement: Specifies disbursement of funds for the first two years and outlines requirements for reports determining contact hours.
13. Status of Recommendations: Describes the process for reviewing and accepting/rejecting recommendations from the advisory committee.
14. Appropriation: Appropriates $50,000,000 from the general fund to the workforce development and apprenticeship trust fund for fiscal year 2025 and subsequent fiscal years. 

 Amended on February 1, 2024

HAFCa/HB 5 – The House Appropriations and Finance Committee proposed the following amendment:
•	On page 15, strike lines 3 through 9.
 

 Committee Substitute February 2, 2024, in HAFC

HAFCcs/HB 5:  This legislative act outlines the creation of the Workforce Development and Apprenticeship Trust Fund in the state of New Mexico. 

Section 1: Workforce Development and Apprenticeship Trust Fund – 
A. Creation of the Fund:
•	A trust fund is established within the state treasury.
•	Fund sources include distributions, appropriations, gifts, grants, and donations.
•	Investment income from the fund is credited back to the fund.

B. Investment Authority:
•	The state investment officer, with approval from the state investment council, manages fund investments following the Uniform Prudent Investor Act.

C. Reporting:
•	Quarterly investment reports are submitted to the legislative finance committee and the state investment council.
•	An annual report is submitted to relevant committees by November 1 each year.

D. Transfers and Appropriations:
•	Specific amounts are transferred to the Public Works Apprentice and Training Fund and appropriated to the Workforce Solutions Department on July 1, 2024, and July 1, 2025.
•	Annual transfers and appropriations are outlined for subsequent years.
•	Additional fund usage is allowed under certain circumstances, subject to legislative approval.
•	Section 2-8: Amendments to Public Works Apprentice and Training Act
•	Amendments are made to various sections of the Public Works Apprentice and Training Act, including definitions, administration, fund creation, disbursement of funds, notice to employers, and publication of programs.

Section 9-13: Amendments to Apprenticeship Assistance Act:
•	Amendments are made to various sections of the Apprenticeship Assistance Act, covering advisory committees, notice of available funds, distribution of funds, audit procedures, budget, disbursement, and appropriation.

Section 13: Appropriation:
•	An appropriation of fifty million dollars ($50,000,000) from the general fund to the Workforce Development and Apprenticeship Trust Fund is specified for fiscal year 2025 and subsequent fiscal years. Any remaining balance at the end of a fiscal year does not revert to the general fund.

This legislative act proposes to enhance workforce development and apprenticeship programs, ensuring funding and proper administration through the newly created trust fund. The allocations and appropriations are intended to support apprenticeship training programs and related initiatives.