Legislature(2023 - 2024)DAVIS 106
03/21/2023 03:00 PM House HEALTH & SOCIAL SERVICES
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s): Department of Family and Community Services | |
| HB57 | |
| HB46 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | HB 57 | TELECONFERENCED | |
| + | HB 46 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 46-CHILD CARE PROVIDER COLLECTIVE BARGAINING
4:16:16 PM
CHAIR PRAX announced that the final order of business would be
HOUSE BILL NO. 46, "An Act allowing child care providers that
receive state aid to organize and collectively bargain with the
Department of Health; and establishing the child care provider
fund." [Before the committee was CSHB 46 (L&C).]
4:17:53 PM
CANDACE RICHEY, Owner, Candi's Tot Stop, shared that she has
been in business at Candy's Tot Stop for 17 years. She said
that providers get asked what they need, but when they talk,
they are not heard. She said that HB 46 offers support to
providers. She thanked members who helped pass similar
legislation through the House last year, which she said was then
blocked by one senator; however, with new leadership in the
senate, there is now an opportunity to get childcare legislation
to the governor. She explained that the bill covers topics of
concern in the childcare industry in Alaska, including wages,
provider voice, benefits, and retirement. She said that the
wages earned in the industry are hard to live off, and there is
high staff turnover because providers can't afford to pay their
employees higher wages. She shared that her wait list consists
of many service members needing care, showing how the lack of
childcare is impacting preparedness. She explained that
benefits are not possible because of the unaffordable premiums
to get insurance as a small business. She said that the bill
will give providers a say as to where the state funds go for
childcare.
4:21:56 PM
BRIAN HOLST, Executive Director, Juneau Economic Development
Council, explained that childcare is an important economic
development issue for the state and provides a high return on
public investment. He said that high quality early care is
critical, and that the Heckman curve shows that investment has
diminishing returns as the child gets older. He stated that the
lack of childcare hurts the economy, and that chamber of
commerce data from 2019 showed that $165 million is lost
annually in the Alaska economy due to child care related issues,
and that 77 percent of Alaska parents missed school or work for
child care in a three-month period; 36 percent of Alaska parents
postpone school or training due to such issues; and 47 percent
of families rely on other family or friends for childcare. He
said that every state ranks childcare readiness, and that two-
thirds of the state's students are not ready for kindergarten.
He explained that the Journal of Education Psychology identified
that, if 50 first graders have problems reading, 44 of them
still have problems reading by the time they are in fourth
grade. He stated that a lack of access to affordable high-
quality childcare has an impact on the workforce, and that while
employers want more childcare options, there are significant
barriers such as cost and scarcity. He explained that the
current model of childcare in the state is broken, as wages are
uncompetitive since many could earn more in an entry level
retail job instead. He pointed out that operators are small due
to cost of rent and requirements around child to adult ratios,
and that programs cannot raise wages without increasing prices.
4:27:19 PM
REPRESENTATIVE RUFFRIDGE asked, with CSHB 46(L&C) adding tax
incentives to childcare services, what Mr. Holst thinks would
the uptake be.
MR. HOLST answered that, when businesses were surveyed, they
said they are interested in supporting childcare operations, but
the challenge is the size of the business.
4:28:43 PM
REPRESENTATIVE ZACK FIELDS, Alaska State Legislature, as prime
sponsor, thanked the committee for hearing HB 46. He explained
that that CSHB 46(L&C) has three provisions: Establish
opportunity for childcare providers to enter intersectoral
bargaining with the state, which would allow them to manage
money for the state for investing money; establish a child care
trust fund, which would allow saving some money to trickle out
to pay for child care; and add tax credits for companies if they
give out vouchers for existing childcare or build on-site
childcare.
4:32:46 PM
REPRESENTATIVE SUMNER asked what other states experienced with
intersectoral bargaining agreements.
REPRESENTATIVE FIELDS explained that the legislature only has
the ability to implement sectoral bargaining for childcare or
farmwork, as those are the only two areas excluded from the
National Labor Relations Act. He said that 10 states have
implemented such framework, some were successful and sustained.
He shared that last year the House Labor and Commerce Standing
Committee heard from providers in Washington state, which has
such bargaining; providers in Washington described how, over
time, they built up the profession to a living wage and thereby
increasing the supply of labor and childcare.
4:35:28 PM
EVAN ANDERSON, Staff, Representative Zack Fields, Alaska State
Legislature on behalf of prime sponsor Representative Fields,
read the sectional analysis for HB 46[included in committee
packet], which read as follows [original punctuation provided]:
Section 1: This section amends AS 23.05.360(f) to
allow the Alaska Labor Relations Agency board in the
Department of Labor & Workforce Development the
authority to include workers in the child care sector
for the purpose of holding hearings. This is a
conforming change to language added in Sec 4.
Section 2: This section amends AS 23.05.370(a) to
direct the Alaska Labor Relations Agency to serve as
labor relations agency for workers in the child care
sector covered by the new language added in Sec. 4.
Section 3: This section amends AS 23.05.380 to give
Department of Labor & Workforce Development the
authority to update regulations pertaining to
collective bargaining rights for workers in the child
care sector. This is a conforming change to language
added in Sec 4.
Section 4: This section amends AS 23.40 to give child
care providers the right to self-organize, join, or
assist an organization to bargain collectively and
engage in concerted activities for the purposes of
collective bargaining or other mutual aid or
protection. This section prohibits the Department of
Health from engaging in unfair labor practices, and it
provides a process for investigation and conciliation
of complaints. This section also provides definitions.
Section 5: This section establishes a child care
provider fund as a separate fund in the state
treasury. This section also establishes a child care
stakeholder group to recommend disbursements from the
fund.
4:41:59 PM
CHAIR PRAX mentioned that New Mexico has a $2 billion trust fund
for childcare. He asked if such a fund is designated or
dedicated.
REPRESENTATIVE FIELDS said he does not know if New Mexico has
the same designated fund restrictions as Alaska, and in talking
with Legislative Legal Services, the key phrase is "funds do not
last". He said there were hundreds of millions of additional
dollars last year, and there were $400 million put towards
capital funding, as an example.
CHAIR PRAX pointed out that the fiscal note contemplates just an
annual appropriation.
4:43:57 PM
MR. ANDERSON explained that the bill's two fiscal notes, one
from the Department of Health and another from the Department of
Revenue, clearly lay out protected deficits around the tax
credit program.
4:44:56 PM
BRANDON SPANOS, Deputy Director, Tax Division, Department of
Revenue, answered that there were three parts to the reduction
of revenue; there is no data on broadening what is allowed to be
an expenditure on credits and how many companies would take
advantage of that; there is data on expanding the program to $3
million, and companies regular contribute more they can take as
a credit; there is also data on extending the sunset date.
CHAIR PRAX asked if that then is only the anticipated loss in
tax revenue because the companies would donate money to the
program.
MR. SPANOS answered that's correct.
CHAIR PRAX asked if the tax credit is one-for-one, and if it
would be reasonable to assume that the money would go into the
childcare fund.
MR. SPANOS explained that the tax credit in current statute has
changed over the years, but in the first year, the first
$100,000, 50 percent is applied to the credit, therefore, a 5:1
ratio.
CHAIR PRAX inquired as to whether the proposed $15 million
appropriation to trust fund would be draining the fund each
year.
4:48:39 PM
REPRESENTATIVE FIELDS offered that a $15 million fund could be
managed, but it wouldn't be sufficiently large to make a
difference in the sector; however, it could be something to
establish and be built up over time.
4:48:55 PM
CHAIR PRAX announced that HB 46 was held over.