SLS 20RS-176 ORIGINAL 2020 Regular Session SENATE BILL NO. 251 BY SENATOR CARTER EMPLOYMENT. Requires certain employers who receive state economic development incentives for construction projects to hire a certain number of registered apprentices to complete the project. (8/1/20) 1 AN ACT 2 To enact R.S. 23:388.1 and R.S. 51:934, relative to apprenticeship; to require employers 3 who receive certain economic development incentives for new construction or 4 expansion projects to employ registered apprentices for a certain number of hours 5 on the incentivized project; to provide for waivers; and to provide for related matters. 6 Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 23:388.1 is hereby enacted to read as follows: 8 §388.1. Apprenticeship requirements of economic development programs 9 A. In order to promote employment opportunities for young people and 10 to train a skilled workforce in Louisiana, beginning August 1, 2020, each 11 employer who participates in an economic development program, as defined in 12 R.S. 51:935.1, and receives fiscal benefits for the construction of a new facility 13 or the expansion of an existing facility shall designate no less than two percent 14 of the man-hours in any apprenticeable occupation, as defined by the United 15 States Department of Labor, to apprentices who are registered pursuant to this 16 Chapter. 17 B. The director of apprenticeship shall approve all apprenticeship Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 251 SLS 20RS-176 ORIGINAL 1 agreements that are in furtherance of this Section and that meet the standards 2 established in this Chapter. 3 C.(1) If the executive director of the workforce commission determines, 4 in good faith, that an insufficient number of registered apprentices are available 5 for employment with a particular economic development program participant 6 on a particular construction project, the executive director shall certify the 7 number of registered apprentices who are available and shall issue a waiver for 8 the remaining number of jobs which would otherwise be reserved for registered 9 apprentices in order for the employer to meet the two percent man-hour 10 requirement provided for in R.S. 51:934. 11 (2) The executive director shall provide any waiver executed, pursuant 12 to Paragraph (1) of this Subsection, to the secretary of the Department of 13 Economic Development in compliance with R.S. 51:934. 14 R.S. 51:934 is hereby enacted to read as follows: 15 §934. Registered apprenticeship program requirements 16 A. Beginning August 1, 2020, the Department of Economic Development 17 shall require each employer, as defined in R.S. 51:935.1, that participates in any 18 economic development program that receives fiscal benefits for the construction 19 of a new facility or the expansion of an existing facility to meet all of the 20 following requirements: 21 (1) Except as provided for in Subsection B of this Section, the employer 22 shall designate no less than two percent of man-hours in any apprenticeable 23 occupation, as defined by the United States Department of Labor, to be held by 24 registered apprentices. 25 (2) The employer shall cooperate with the director of apprenticeship and 26 meet the standards and requirements of the apprenticeship program as 27 provided for in Chapter 4 of Title 23 of the Louisiana Revised Statutes of 1950. 28 (3) If there are an insufficient number of registered apprentices 29 available for employment with a particular construction project, the Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 251 SLS 20RS-176 ORIGINAL 1 requirements of Paragraph (1) of this Subsection are to be waived only to the 2 extent that such insufficiency is certified by the executive director of the 3 Louisiana Workforce Commission, as provided for in R.S. 23:388.1. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Carla S. Roberts. DIGEST SB 251 Original 2020 Regular Session Carter Present law provides that the La. director of apprenticeship will, in cooperation with the apprenticeship council, set conditions and training standards for apprentice agreements, which shall not be lower than those prescribed by the Office of Apprenticeship, U.S. Dept. of Labor, or other approved national standards. Present law requires that the La. Dept. of Economic Development certify state monetary incentives given to businesses that participate in various economic development programs that are enacted by the legislature. Present law defines "economic development program" as any state program that directly or indirectly confers fiscal benefits on employers located in the state for the purposes of retaining and creating jobs and growing the state's economy. Economic development programs include grants, loan guarantees, tax exemptions, exclusions, credits, or rebates. Proposed law retains present law but requires that, beginning August 1, 2020, any employer who participates in an economic development program and receives monetary or fiscal benefits from the state of La. for the construction of a new facility or the expansion of an existing facility to designate no less than 2% of the man-hours in any apprenticeable occupation, as defined by the U.S. Dept. of Labor, to registered apprentices. Present law provides that the director of apprenticeship shall approve all apprenticeship agreements that meet the standards established in present law. Proposed law retains present law but requires that the director of apprenticeship also approve the apprenticeship agreements under proposed law. Proposed law provides that if the executive director of the La. Workforce Commission determines in good faith that an insufficient number of registered apprentices are available for a particular construction project, the executive director will certify the number of registered apprentices who are available for the particular construction project and will issue a waiver for the remaining number of jobs which would otherwise be reserved for registered apprentices in order for the employer to meet the 2% man-hour requirement provided for in proposed law. Proposed law requires the employer to cooperate with the director of apprenticeship and meet the standards and requirements of the apprenticeship program as provided for in present law. Effective August 1, 2020. (Adds R.S. 23:388.1 and R.S. 51:934) Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.