S1831

An Act concerning apprenticeship programs and supplementing Title 34 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The Legislature finds and declares that:

a. It is critical for New Jersey to invest in non-traditional pathways to high-wage careers, particularly for those residents who cannot afford or do not wish to pursue four-year college degrees.

b. The New Jersey Apprenticeship Network, which develops and strengthens apprenticeship programs throughout the State to increase opportunities for youths and adults, has demonstrated success since its inception, but the State needs expansion into more industries and demographics to continue growing apprenticeship opportunities throughout the State.

c. States like Washington and California have successfully linked youth apprenticeships to high school and community college pathways, reducing student debt and improving workforce outcomes.

d. It would be fitting for New Jersey to follow suit and expand apprenticeship opportunities Statewide.

e. This act will ensure that apprenticeships are treated as a first-class option for youth in New Jersey.

2. a. The Commissioner of the Department of Labor and Workplace Development shall establish a dedicated youth apprenticeship program for students aged 16 to 21 years old. The program shall include, but not be limited to, creating career-connected learning in high school for students in 11th grade and 12th grade; combining paid, on-the-job training with dual-enrollment in community colleges; and creating pre-apprenticeship pathways into registered programs in high-demand sectors, including but not limited to health care, information technology, advanced manufacturing, and green jobs.

b. The commissioner, in consultation with the New Jersey Council of County Colleges, established pursuant to N.J.S.18A:64A-26, shall develop standardized curriculum for apprenticeship-related instruction; create a program to offer no-cost related technical instruction to apprentices; and expand the college credit for apprenticeship initiative, awarding credit for on-the-job training.

c. (1) Employers that participate in the program established pursuant to this section shall be provided with up to $5,000 per apprentice in tax credits or direct grants, provided that certain criteria are met, including but not limited to: paying apprentices at least 60 percent of journeyperson wages, escalating annually; committing to non-discriminatory recruitment and retention practices; and reporting annually to the department demographics, wage progression, and completion rates of apprentices.

(2) The amount of the tax credit otherwise allowable under this subsection which cannot be applied for the privilege period may be carried forward, if necessary, to the four privilege periods following the privilege period for which a portion of the tax credit was allowed. A New Jersey S Corporation shall not be allowed a tax credit pursuant to this subsection directly, but the amount of the tax credit of a taxpayer in respect of a pro rata share of S Corporation income, shall be determined by allocating to the taxpayer that proportion of the tax credit acquired by the New Jersey S Corporation that is equal to the taxpayer’s share, whether or not distributed, of the total pro rata share of S Corporation income of the New Jersey S Corporation for its privilege period ending within or with the taxpayer’s taxable year.

d. State agencies and public contractors of large capital projects shall develop or participate in registered apprenticeship programs. Priority shall be given to green energy and public infrastructure apprenticeships and partnerships with union-based Joint Apprenticeship Training Committees (JATCs).

e. The department shall issue an annual report, published on the department’s Internet website that includes, but is not limited to:

(1) apprenticeship participation by industry, gender, race, ethnicity, and geography;

(2) completion rates and post-apprenticeship employment outcomes; and

(3) State savings from reduced reliance on student aid and unemployment insurance.

f. Employment and training services funded by the program shall not replace, supplant, compete with or duplicate in any way approved apprenticeship programs.

3. a. There is established in the Department of Labor and Workplace Development a fund to be known as the “Apprenticeship Advancement Fund” to effectuate the purposes of this act, including but not limited to providing start-up grants for newly registered apprenticeship programs; tuition-free related technical instruction at public vocational schools and community colleges; and wraparound support services for qualified low-income apprentices, including but not limited to transportation, childcare, and tools.

b. Commencing in Fiscal Year 2026 there shall be appropriated annually from the General Fund to the fund established in subsection a. of this section the amount of $25 million to effectuate the purposes of this act.

4. The commissioner may adopt regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to carry out the purposes of this act.

5. This act shall take effect immediately.

STATEMENT

This bill requires the Commissioner of Labor and Workplace Development to establish a dedicated youth apprenticeship program for students aged 16 to 21 years old. Under the bill, the program would be required to include, but not be limited to, creating career-connected learning in high school for students in 11th grade and 12th grade; combining paid, on-the-job training with dual-enrollment in community colleges; and creating pre-apprenticeship pathways into registered programs in high-demand sectors, including but not limited to health care, information technology, advanced manufacturing, and green jobs.

The bill requires the commissioner, in consultation with the New Jersey Council of County Colleges, to develop standardized curriculum for apprenticeship-related instruction; offer no-cost related technical instruction to apprentices; and expand the college credit for apprenticeship initiative, awarding credit for on-the-job training.

The bill provides that employers who participate in the program will be provided with up to $5,000 per apprentice in tax credits or direct grants, provided that certain criteria are met, including but not limited to: paying apprentices at least 60 percent of journeyperson wages, escalating annually; committing to non-discriminatory recruitment and retention practices; and reporting annually to the department demographics, wage progression, and completion rates of apprentices.

The bill requires State agencies and public contractors of large capital projects to develop or participate in registered apprenticeship programs. Under the bill, priority will be given to green energy and public infrastructure apprenticeships and partnerships with union-based Joint Apprenticeship Training Committees (JATCs).

The bill requires the department to issue an annual report, published on the department’s Internet website that includes, but is not limited to:

(1) apprenticeship participation by industry, gender, race, ethnicity, and geography;

(2) completion rates and post-apprenticeship employment outcomes; and

(3) State savings from reduced reliance on student aid and unemployment insurance.

Finally, the bill provides that $25 million shall be allocated annually commencing in fiscal year 2026, for the purpose of funding the youth apprenticeship program established by the bill, including but not limited to providing start-up grants for newly registered apprenticeship programs; tuition-free related technical instruction at public vocational schools and community colleges; and wraparound support services for qualified low-income apprentices, such as transportation, childcare, and tools.