Legislature(2007 - 2008)HOUSE FINANCE 519

05/04/2007 08:30 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HCR 6 CIVICS EDUC/ CITIZENS ADVISORY TASK FORCE TELECONFERENCED
<Bill Hearing Canceled>
+= HB 88 TVS AND MONITORS IN MOTOR VEHICLES TELECONFERENCED
Scheduled But Not Heard
-- Testimony <Invitation Only> --
+= HB 226 REPEAL TERMINATION OF STEP PROGRAM TELECONFERENCED
Moved CSHB 226(FIN) Out of Committee
+ HCR 8 RCA TASK FORCE TELECONFERENCED
Moved CSHCR 8(L&C) Out of Committee
Bills Previously Heard/Scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                        May 4, 2007                                                                                             
                         8:58 a.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 8:58:27 AM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Richard Foster                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Mike Kelly                                                                                                       
Representative Mary Nelson                                                                                                      
Representative Bill Thomas, Jr.                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Rynnieva Moss, Staff, Representative  John Coghill; Guy Bell,                                                                   
Assistant  Commissioner, Department  of  Labor and  Workforce                                                                   
Development; Barbara Huff Tuckness,  Director of Governmental                                                                   
and Legislative Affairs, Teamsters  Local 959; Rebecca Logan,                                                                   
President,  Alaska Builders  and Contractors;  Representative                                                                   
Kurt  Olson;  Kate  Giard,  Commissioner,  Chair,  Regulatory                                                                   
Commission  of Alaska;  Sally  Saddler, Legislative  Liaison,                                                                   
Department of Community and Economic Development                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Sean Montgomery,  Laborers Local  341, Anchorage;  Pat Falon,                                                                   
Laborers Local 341, Anchorage;  Joe Crum, President, Northern                                                                   
Industrial Training                                                                                                             
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 226    "An  Act repealing  the  termination  of the  state                                                                   
          training and employment program; and providing for                                                                    
          an effective date."                                                                                                   
                                                                                                                                
          CSHB 226  (FIN) was REPORTED out of  Committee with                                                                   
          a "do pass" recommendation  and with two new fiscal                                                                   
          notes  by the  Department  of  Labor and  Workforce                                                                   
          Development.                                                                                                          
                                                                                                                                
HCR 8     Establishing a task force to make recommendations                                                                     
          regarding job descriptions and salary changes for                                                                     
          the commissioners and support staff of the                                                                            
          Regulatory Commission of Alaska.                                                                                      
                                                                                                                                
          CSHCR 8 (L&C) was REPORTED out of Committee with a                                                                    
          "do pass" recommendation and with fiscal note #1                                                                      
          by the Legislature.                                                                                                   
                                                                                                                                
HB 88     "An Act relating to televisions, monitors,                                                                            
          portable computers, and similar devices in motor                                                                      
          vehicles; and providing for an effective date."                                                                       
                                                                                                                                
          CSHB 88 was scheduled but not heard.                                                                                  
                                                                                                                                
8:58:39 AM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 226                                                                                                            
                                                                                                                                
     "An Act repealing the termination of the state training                                                                    
     and employment program; and providing for an effective                                                                     
     date."                                                                                                                     
                                                                                                                                
RYNNIEVA MOSS,  STAFF, REPRESENTATIVE JOHN  COGHILL, reported                                                                   
that the  sponsor  feels that  it is very  important for  the                                                                   
state to step up to the plate  to train the workforce for the                                                                   
gas pipeline.   HB 226, in  its present form, would  give the                                                                   
State Training and Employment  Program (STEP) six more years.                                                                   
The  original bill  would  have made  STEP  into a  permanent                                                                   
program.   Ms. Moss  related that  STEP is  a good  mechanism                                                                   
toward reducing welfare.  She  mentioned that there are legal                                                                   
concerns  regarding this  legislation  and  an amendment  has                                                                   
been written  to address  those concerns.   Governor  Palin's                                                                   
transition team recognized the  value of STEP and recommended                                                                   
restructure of  the Alaska Workforce Investment  Board and to                                                                   
revise STEP  to its  original intent.   She reported  support                                                                   
for  the  bill   by  members  of  the  Alaska   Builders  and                                                                   
Contractors,  the Department  of  Labor,  and labor  leaders.                                                                   
The sponsor of the bill has tremendous  faith in Commissioner                                                                   
Bishop to make  the necessary changes to the  STEP program as                                                                   
recommended   by  the  bipartisan   transition  team.     She                                                                   
requested the Committee to pass HB 226.                                                                                         
                                                                                                                                
9:03:17 AM                                                                                                                    
                                                                                                                                
GUY  BELL, ASSISTANT  COMMISSIONER, DEPARTMENT  OF LABOR  AND                                                                   
WORKFORCE  DEVELOPMENT,  thanked Representative  Coghill  for                                                                   
sponsoring  HB  226.     Mr.  Bell  related   that  STEP  has                                                                   
demonstrated  its success  the  past 18  years, serving  over                                                                   
25,000  Alaskans.    He discussed  the  evaluation  from  DOL                                                                   
called  the  "Training  Program  Performance  Report",  which                                                                   
contains  STEP as  one of  its programs.   He  said he  looks                                                                   
forward  to reviewing  the  STEP  program with  all  involved                                                                   
parties.  He shared statistics  related to the success of the                                                                   
STEP program  that demonstrate  it is  working to reduce  the                                                                   
number of unemployment benefits and increasing wages.                                                                           
                                                                                                                                
9:06:13 AM                                                                                                                    
                                                                                                                                
Representative  Crawford  asked about  the  amendments.   Co-                                                                   
Chair Meyer said they would be discussed shortly.                                                                               
                                                                                                                                
REBECCA LOGAN,  PRESIDENT, ALASKA  BUILDERS AND  CONTRACTORS,                                                                   
referred to  a position paper  in the members' packets.   She                                                                   
said she is in favor of increasing  the current contribution.                                                                   
She spoke in strong support of the bill.                                                                                        
                                                                                                                                
BARBARA   HUFF  TUCKNESS,   DIRECTOR   OF  GOVERNMENTAL   AND                                                                   
LEGISLATIVE  AFFAIRS,  TEAMSTERS   LOCAL  959,  testified  in                                                                   
support  of HB  226.   She pointed  out  that joint  employer                                                                   
union representatives manage the  training trusts, which sets                                                                   
a very strong  groundwork from a long-term perspective.   She                                                                   
added that STEP augments a process  that is already in place.                                                                   
STEP is an infusion of additional  dollars.  She spoke of the                                                                   
importance of oversight.                                                                                                        
                                                                                                                                
Representative Gara asked for  Ms. Huff Tuckness's opinion of                                                                   
the  amendments.    Ms.  Huff   Tuckness  reported  that  she                                                                   
supports  Amendment  #1.    She wondered  why  the  date  was                                                                   
reduced in Amendment #2.                                                                                                        
                                                                                                                                
9:14:46 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer MOVED to ADOPT Amendment #1:                                                                                     
                                                                                                                                
     Page 1, line 1, following "program;"                                                                                       
     Insert "requiring a review of the program;"                                                                                
                                                                                                                                
     Page 1, following line 8:                                                                                                  
     Insert a new bill section to read:                                                                                         
     "*Sec.2. The  uncodified law of  the State of  Alaska is                                                                   
     amended by adding a new section to read:                                                                                   
     REVIEW  OF THE  STATE TRAINING  AND EMPLOYMENT  PROGRAM.                                                                   
     The Department  of Labor  and Workforce Development,  in                                                                   
     consultation   with   the    entities   listed   in   AS                                                                   
     23.15.645(b),   shall  work   with  representatives   of                                                                   
     entities  eligible to submit  a grant application  under                                                                   
     AS   23.15.620-23.15.660  and   that  provide   industry                                                                   
     specific  training, on-the-job  training,  institutional                                                                   
     training, classroom  job linked training  and employment                                                                   
     assistance  to conduct  a review  of the priorities  and                                                                   
     procedures   of  the  state   training  and   employment                                                                   
     program.  The entities  involved  in the  review of  the                                                                   
     state  training and  employment  program must  represent                                                                   
     organized labor  and non-union entities.   Following the                                                                   
     review,  the department shall  publish a written  report                                                                   
     containing its  findings and recommendations,  including                                                                   
     changes,  that it  recommends be  made to state  statute                                                                   
     and  regulations.    The department  shall  deliver  the                                                                   
     report to  the president of  the senate and  the speaker                                                                   
                                                            th                                                                  
     of the house of representatives on or before the 30                                                                        
     day of the 2008 regular legislative session."                                                                              
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
Vice Chair Stoltze OBJECTED.   Co-Chair Meyer noted that both                                                                   
amendments are at the request of the sponsor.                                                                                   
                                                                                                                                
Ms.  Moss explained  that Amendment  #1 requires  DOL to  put                                                                   
together  a report  and present  it to the  President of  the                                                                   
Senate  and  to  the  Speaker   of  the  House.    It  echoes                                                                   
recommendations made in the transition report.                                                                                  
                                                                                                                                
Representative  Crawford  thought  the amendment  was  vague.                                                                   
Ms. Moss reported  that the sponsor tried to  get all parties                                                                   
to  come to  the table,  which  they have.    He wanted  some                                                                   
flexibility for all of those people to work together.                                                                           
                                                                                                                                
Vice Chair  Stoltze WITHDREW his  objection.  There  being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
9:16:58 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer MOVED to ADOPT Amendment #2:                                                                                     
                                                                                                                                
     Page 1, line 8                                                                                                             
     Delete "2014"                                                                                                              
     Insert "2009"                                                                                                              
                                                                                                                                
Vice Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Ms. Moss explained that the amendment  gives DOL two years to                                                                   
make the  changes to the program  to make it  more efficient,                                                                   
more accountable, and more transparent.                                                                                         
                                                                                                                                
9:18:42 AM                                                                                                                    
                                                                                                                                
At-ease.                                                                                                                        
                                                                                                                                
9:23:41 AM                                                                                                                    
                                                                                                                                
Representative  Crawford  spoke  against  Amendment #2.    He                                                                   
concurred with Amendment #1.   He said that Amendment #2 does                                                                   
not allow enough time to make any changes.                                                                                      
                                                                                                                                
Co-Chair Meyer  mentioned that the commissioner  was in favor                                                                   
of the  amendments.   Ms. Moss  said that  the original  bill                                                                   
ended sunsets completely, but  through discussions with trade                                                                   
unions,  contractors, and  DOL it  was agreed  upon to  set a                                                                   
two-year sunset.                                                                                                                
                                                                                                                                
Vice Chair Stoltze  asked if the intent of the  sponsor is to                                                                   
make  STEP permanent  after the  two-year sunset.   Ms.  Moss                                                                   
said it was.                                                                                                                    
                                                                                                                                
Representative  Hawker noted  that  legitimate concerns  were                                                                   
raised  in previous  committees and  spoke in  favor of  both                                                                   
amendments.                                                                                                                     
                                                                                                                                
9:26:59 AM                                                                                                                    
                                                                                                                                
Representative  Kelly spoke  in favor  of the  sunset in  two                                                                   
years.                                                                                                                          
                                                                                                                                
Representative  Gara commented  that the  sunset takes  place                                                                   
before the  evaluation would be  complete.  He  spoke against                                                                   
Amendment #2.   Ms. Moss said  that the report is due  to the                                                                   
                     th                                                                                                         
legislature on the 30 day of the 2008 legislative session.                                                                      
                                                                                                                                
Vice Chair Stoltze maintained his objection.                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Kelly, Stoltze,  Thomas, Foster,  Hawker, Chenault,                                                                   
          Meyer                                                                                                                 
OPPOSED: Joule, Nelson, Crawford, Gara                                                                                          
                                                                                                                                
Representative Gara questioned  if 2014 was in the bill.  Co-                                                                   
Chair Meyer said it was June 30, 2014.                                                                                          
                                                                                                                                
The amendment passed (7-4).                                                                                                     
                                                                                                                                
9:31:05 AM                                                                                                                    
                                                                                                                                
SEAN  MONTGOMERY,  LABORERS  LOCAL   341,  ANCHORAGE,  shared                                                                   
personal  experiences  with  STEP  training.    He  spoke  in                                                                   
support of HB 226 and allowing STEP grants to continue.                                                                         
                                                                                                                                
PAT  FALON,  LABORERS  LOCAL  341,  ANCHORAGE,  testified  in                                                                   
support  of HB  226  and voiced  gratitude  for the  training                                                                   
provided by  the STEP  program.   He spoke against  Amendment                                                                   
#2.                                                                                                                             
                                                                                                                                
JOE  CRUM,  PRESIDENT, NORTHERN  INDUSTRIAL  TRAINING  (NIT),                                                                   
spoke of his  extensive background in training  programs.  He                                                                   
detailed  programs offered  by  NIT and  the difficulties  of                                                                   
securing funding.   He testified  in support of STEP  only if                                                                   
the problems  are fixed which  have cut NIT out  of receiving                                                                   
STEP funding.                                                                                                                   
                                                                                                                                
Co-Chair Chenault  asked for an  explanation for  the funding                                                                   
cuts.   Mr. Crum said  he did not  know why.   He highlighted                                                                   
successes of his programs.  Some  grantees were given funding                                                                   
while others were left unfunded.                                                                                                
                                                                                                                                
Representative  Kelly  commented  that  Mr. Crum's  input  is                                                                   
valued.                                                                                                                         
                                                                                                                                
9:40:53 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  noted that the  fiscal notes will have  to be                                                                   
modified to reflect the new date of 2009.                                                                                       
                                                                                                                                
Representative Foster  MOVED to REPORT CSHB 266  (FIN) out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB  226 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass" recommendation  and with  two new  fiscal notes  by the                                                                   
Department of Labor and Workforce Development.                                                                                  
                                                                                                                                
9:43:16 AM                                                                                                                    
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 8                                                                                             
                                                                                                                                
     Establishing  a  task  force   to  make  recommendations                                                                   
     regarding  job descriptions and  salary changes  for the                                                                   
     commissioners  and  support   staff  of  the  Regulatory                                                                   
     Commission of Alaska.                                                                                                      
                                                                                                                                
REPRESENTATIVE KURT  OLSON, sponsor, explained  that the bill                                                                   
which  was  a  result  of  a  February  22  letter  from  the                                                                   
Regulatory  Commission  of  Alaska (RCA)  to  Governor  Palin                                                                   
indicating  that  the  RCA  commissioners   needed  a  salary                                                                   
increase.  The resolution would  establish a legislative task                                                                   
force  to  make  recommendations  for  job  descriptions  and                                                                   
salaries,  as well  as staffing  within  the RCA.   The  task                                                                   
force would  consist of nine  members, three from  the House,                                                                   
three from  the Senate, and  Governor Palin or  her designee,                                                                   
the Attorney General or his designee,  and Commissioner Notti                                                                   
or his designee.  The task force  would meet up to five times                                                                   
during   the  interim   and  make   recommendations  to   the                                                                   
legislature in the first week  of the next session.  It would                                                                   
sunset on May 30, 2008.  He noted  that the administration is                                                                   
supportive  of HCR  8.   He  drew  attention  to the  $10,000                                                                   
fiscal note by the Legislature.                                                                                                 
                                                                                                                                
9:45:20 AM                                                                                                                    
                                                                                                                                
KATE  GIARD, COMMISSIONER,  CHAIR,  REGULATORY COMMISSION  OF                                                                   
ALASKA (RCA),  related that there  have been thirty  years of                                                                   
problems with  RCA.  She  said the goal  is to have  open and                                                                   
transparent  business and  yet protect  Alaska.   There is  a                                                                   
need to  balance the needs  of the infrastructure  with those                                                                   
of  the rate  payers.   She testified  in support  of HCR  8,                                                                   
which sets  up a  task force.   A  task force  was set  up in                                                                   
2002, which never met.  Ms. Giard  looked at this legislation                                                                   
as an opportunity to work together.                                                                                             
                                                                                                                                
9:49:54 AM                                                                                                                    
                                                                                                                                
SALLY SADDLER,  LEGISLATIVE LIAISON, DEPARTMENT  OF COMMUNITY                                                                   
AND ECONOMIC  DEVELOPMENT,  said zero  fiscal notes would  be                                                                   
forthcoming.                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze asked  who would  absorb expenses  of the                                                                   
executive  branch.     Ms.  Saddler  reported   it  would  be                                                                   
administrative branch funds, not RCA.                                                                                           
                                                                                                                                
9:51:13 AM                                                                                                                    
                                                                                                                                
Representative Hawker referred  to a memo from the governor's                                                                   
chief of  staff which states  that the governor  would select                                                                   
the commission chair.  He pointed  out that the bill does not                                                                   
provide for  that.  He  asked if it  would be problematic  if                                                                   
the members elect the chair.                                                                                                    
                                                                                                                                
Representative Olson reported  that HB 209 would address that                                                                   
issue.                                                                                                                          
                                                                                                                                
Representative  Hawker  read  from  the  memo  regarding  the                                                                   
governor's  preferences.   Representative Olson  said HB  110                                                                   
deals  with the  sunset date;  HB  209 deals  with the  board                                                                   
appointment and  timelines.   Representative Hawker  noted an                                                                   
inconsistency.    Ms.  Saddler  said  the  administration  is                                                                   
comfortable   with  this   approach  of   two  bills   and  a                                                                   
resolution.                                                                                                                     
                                                                                                                                
Representative  Joule said  the resolution  speaks of  a task                                                                   
force and the  memo speaks to a commission.    Representative                                                                   
Olson noted that the administration  supports the resolution.                                                                   
                                                                                                                                
9:54:50 AM                                                                                                                    
                                                                                                                                
Representative Foster  MOVED to REPORT  CSHCR 8 (L&C)  out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal note.                                                                                                       
                                                                                                                                
Representative  Gara OBJECTED  for discussion  purposes.   He                                                                   
commented on Ms. Giard's expertise.                                                                                             
                                                                                                                                
Representative Gara  WITHDREW his objection.   There being NO                                                                   
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
CSHCR 8 (L&C) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation and with fiscal note #1 by the Legislature.                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 9:56 AM.                                                                                           
                                                                                                                                

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