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Senate bill would create apprenticeship grant of up to $3,000 to cover startup costs

February 17, 2025 | Appropriations - Human Resources Division, Senate, Legislative, North Dakota


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Senate bill would create apprenticeship grant of up to $3,000 to cover startup costs
Senator Josh Baucher, sponsor of Senate Bill 2239, told the Senate Appropriations Human Resources Division that the bill "would create a grant program to support apprenticeships throughout the state," aiming to help people cover startup costs such as tools, clothing and training materials.

The bill would create a standalone grant program, author Baucher said, after the state expanded the North Dakota Scholarship to cover registered apprenticeships and realized some people were ineligible because the scholarship requires a 2.75 minimum GPA. "Several of the students who wish to access the North Dakota Scholarship for their registered apprenticeships didn't actually qualify for the scholarship because of GPA requirements," Baucher said.

SB 2239 would allow up to $3,000 in assistance within the first three years of a registered apprenticeship, with flexibility for how the money is distributed during that period. "Rather than saying you only get a thousand dollars a year each year for 3 years, it just was decided to say, let's allow some flexibility," Baucher said. He and witnesses emphasized that the first year of most apprenticeships carries the largest upfront expense.

Wade Sick, State Director for the Department of Career and Technical Education, told the committee that a registered apprenticeship typically comprises three parts recognized by the U.S. Department of Labor: on-the-job training (about 2,000 hours per year on average), related technical instruction (about 144 hours) and progressive pay increases. Sick confirmed a registered apprenticeship may begin at age 16 under child-labor rules when supervised, and said apprentices are typically paid but at a lower rate early in the program.

Committee members asked how the program would operate: whether it applied to trade apprenticeships and employer-sponsored apprenticeships that are not delivered through higher education, how enrollment and progress would be measured, and whether employers would be recruited to host more apprentices. Baucher and Sick said registered apprenticeships include traditional trades and are expanding into health care, manufacturing, education and public service; progress measurement could use a crosswalk to hours completed and related instruction rather than a college-style GPA.

Sick also told senators the bill includes an appropriation request of $1,100,000 to fund the standalone grant program. He said stakeholders discussed placing an Office of Apprenticeship in state government to help employers stand up programs and noted a companion bill in the other chamber (10-36) would create such an office.

Several senators voiced general support for expanding apprenticeships and warned the state should avoid creating excessive new bureaucracy while ensuring employer outreach and program navigation. Baucher said the Workforce Development Council and other stakeholders backed the bill in committee.

The committee did not take a final vote on SB 2239 in the hearing recorded in the transcript.

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