Legislature(2019 - 2020)BARNES 124

03/09/2020 03:15 PM LABOR & COMMERCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 235 AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS TELECONFERENCED
Moved CSHB 235(L&C) Out of Committee
*+ HB 301 ELECTRICIAN & PLUMBER APPRENTICESHIPS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ SB 52 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 93 MILITARY SPOUSE COURTESY LICENSE TELECONFERENCED
Moved CSHB 93(L&C) Out of Committee
        HB 235-AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS                                                                    
                                                                                                                                
3:16:17 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ announced that the  first order of business would                                                               
be  HOUSE  BILL NO.  235,  "An  Act  relating to  allocations  of                                                               
funding for the Alaska Workforce  Investment Board; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
3:16:34 PM                                                                                                                    
                                                                                                                                
ASHLEY  CARRICK, Staff,  Representative Adam  Wool, Alaska  State                                                               
Legislature,  on behalf  of Representative  Wool, prime  sponsor,                                                               
provided  a  summary  of  HB  235.     She  stated  that  HB  235                                                               
reauthorizes  the Technical  Vocational Education  Program (TVEP)                                                               
for three  years to  2023.  This  program provides  technical and                                                               
vocational training  across the  state to various  recipients and                                                               
has been in place since 2000.                                                                                                   
                                                                                                                                
3:17:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  moved  to adopt  the  proposed  committee                                                               
substitute (CS)  for HB 235, labeled  31-LS1480\M, Wayne, 3/6/20,                                                               
as the working document.                                                                                                        
                                                                                                                                
3:17:37 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ objected for the purpose of discussion.                                                                         
                                                                                                                                
3:17:47 PM                                                                                                                    
                                                                                                                                
TED  MADSEN, Staff,  Representative Ivy  Spohnholz, Alaska  State                                                               
Legislature, on behalf of Chair  Spohnholz, explained the changes                                                               
to HB 235  proposed under the committee  substitute (CS), Version                                                               
M.   He paraphrased from  the document, entitled   Explanation of                                                               
Changes  Version  A to  Version  M   [included in  the  committee                                                               
packet],  which  read  in  its   entirety  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     The   proposed   committee   substitute   makes   three                                                                    
     substantive changes to the original  A version of House                                                                    
     Bill 235:                                                                                                                  
                                                                                                                                
     ? In Section  1, it changes the  TVEP contribution rate                                                                    
     from  .16 to  .18  percent. This  adds  to the  overall                                                                    
     available pool of  TVEP funds. This change  is found on                                                                    
     page 1, line 7 of version M.                                                                                               
                                                                                                                                
     ?  In  Section  2,  it   extends  the  sunset  date  an                                                                    
     additional  2 years.  The program  would now  sunset on                                                                    
     June 30,  2025, rather than  2023 as proposed in  the A                                                                    
     version. This  change is  found on page  1, line  13 of                                                                    
     the M version.                                                                                                             
                                                                                                                                
     ? In Section  2, the M version proposes to  add one new                                                                    
     allocation at  1.925% to the Kodiak  Seafood and Marine                                                                    
     Science Center.  This change is  found on page  2, line                                                                    
     13.                                                                                                                        
                                                                                                                                
          o Allocations for other institutions, aside from                                                                      
     the  University  of  Alaska,  are  slightly  decreased.                                                                    
     These changed  allocations are found  on page  2, lines                                                                    
     4-12.                                                                                                                      
                                                                                                                                
          o While allocations for most existing statutorily                                                                     
     designated institutions are reduced  by 3.5% from their                                                                    
     current statutory  amount, the change to  the TVEP rate                                                                    
     found in  Section 1 allows  each institution to  see an                                                                    
     increase  in  overall  funds  disbursed.  See  attached                                                                    
     Table #1.                                                                                                                  
                                                                                                                                
          o Section 3 adds a new subsection to AS                                                                               
     23.15.835.  This new  subsection (i)  directs that  the                                                                    
     University of Alaska administer  the funds allocated to                                                                    
     the  Kodiak  Seafood  and  Marine  Science  Center  for                                                                    
     programing and capital  improvements consistent with AS                                                                    
     16.52.020. AS  16.52.020 spells out  the duties  of the                                                                    
     Kodiak Seafood  and Marine Science Center.  This change                                                                    
     is found on page 2, lines 14-18.                                                                                           
                                                                                                                                
     There is one additional change  to the A version in the                                                                    
     retroactivity clause  (section 4). All sections  of the                                                                    
     bill, including  the newly proposed changes  in Section                                                                    
     1 and  Section 2,  and the added  Section 3,  will take                                                                    
     effect retroactively  if the bill does  not take effect                                                                    
     by June 30, 2020.                                                                                                          
                                                                                                                                
3:20:11 PM                                                                                                                    
                                                                                                                                
MATT GRUENING, Staff, Representative  Louise Stutes, Alaska State                                                               
Legislature, on  behalf of  Representative Stutes,  discussed the                                                               
Kodiak Seafood and Marine Science  Center (KSMSC).  The KSMSC was                                                               
established  under  the  University  of  Alaska  (UA)  under  the                                                               
College  of  Fisheries   and  Ocean  Sciences  in   1981  by  the                                                               
legislature  through  Title  16   [Fish  and  Game],  Chapter  52                                                               
[Fishery Industrial Technology Center],  AS 16.52.010-070, as the                                                               
Fisheries Industrial Technology  Center.  It is  the states  only                                                               
seafood pilot  plant.  The  KSMSC mission under AS  15.52.020, is                                                               
to  support employment  opportunities and  other benefits  to the                                                               
state and  the seafood industry  through training,  research, and                                                               
industry  collaboration.   He  provided a  short  history of  the                                                               
center  and  directed  attention to  an  informational  document,                                                               
entitled   About  Kodiak  Seafood   and  Marine  Science  Center                                                                
[included  in  the committee  packet].    He said  that  Alaskas                                                                
seafood industry is the states   single largest private employer;                                                               
however,   the  processing   industry   receives  little   annual                                                               
dedicated  funding.     He  explained  that   seafood  processing                                                               
employees contribute  a significant amount  of funds to  the TVEP                                                               
each year.   From fiscal  year 2016 (FY  16) to FY  18 processing                                                               
workers  contributed an  average of  $607,000 to  the fund  while                                                               
only  averaging $64,000  per year  from FY  14 to  FY 20  in TVEP                                                               
funding, which  is approximately 1.2 percent  of the universitys                                                                
TVEP allocation.  He stated  that while the university and Alaska                                                               
Vocational Technical  Center (AVTEC) have increased  a percentage                                                               
of their  TVEP funds focused  on fisheries and  maritime training                                                               
over the  last few years,  very little funding has  been targeted                                                               
to the seafood industry workforce directly.                                                                                     
                                                                                                                                
MR.  GRUENING  noted that  the  industry  has clearly  identified                                                               
training   needs  and   desires  through   the  Alaska   Research                                                               
Consortium survey  [included in the committee  packet], which was                                                               
provided  for by  a federal  Economic Development  Administration                                                               
grant to  identify the  statewide needs.   He reported  that over                                                               
25,000 seafood workers contribute to  the TVEP fund annually.  He                                                               
said  with  the legislative  mandate  for  the  KSMSC yet  to  be                                                               
realized,  this  reauthorization  represents  an  opportunity  to                                                               
reinvest  in  Alaskas   seafood  industry  with  funds  that  are                                                               
generated from  that industry.   He further  noted that  doing so                                                               
will help  contribute to statewide employment  opportunities, the                                                               
value of Alaskas   seafood, and the long-term  economic health of                                                               
the state.  He added that this  would not result in a decrease to                                                               
shares.     Furthermore,  there  are  letters   of  support  from                                                               
organizations  [included in  the committee  packet], such  as the                                                               
Pacific  Seafood   Processors  Association  (PSPA);   the  Alaska                                                               
Seafood Marketing Institute (ASMI);  North Pacific Seafoods, Inc.                                                               
(NPSI); the Alaska Research Consortium (ARC); and others.                                                                       
                                                                                                                                
CHAIR  SPOHNHOLZ asked  for the  bill sponsors   position on  the                                                               
proposed CS.                                                                                                                    
                                                                                                                                
3:25:12 PM                                                                                                                    
                                                                                                                                
MS.  CARRICK explained  that Version  M  represents a  compromise                                                               
between Representative  Wool, prime sponsor, and  the House Labor                                                               
and Commerce  Standing Committee.   She said  Representative Wool                                                               
would like to express his acceptance of the proposed CS.                                                                        
                                                                                                                                
3:25:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY  expressed her  concern about  extending the                                                               
reauthorization  period from  three  years to  five  years.   She                                                               
pointed out  that HB  235 concerns  contributions to  the states                                                                
technical and  vocational education programs, adding  that Alaska                                                               
has made strides in offering those.   She offered her belief that                                                               
a three-year  sunset would  better allow  for the  opportunity to                                                               
readjust  if  necessary.   She  asked  how input  -  specifically                                                               
regarding industry  trends - would  be incorporated  and received                                                               
with a five-year authorization period.                                                                                          
                                                                                                                                
MS.  CARRICK explained  that recipients  prefer the  stability of                                                               
knowing that they will receive  funding.  She said all recipients                                                               
that were asked unanimously  preferred the 5-year reauthorization                                                               
period compared to the option of three years.                                                                                   
                                                                                                                                
REPRESENTATIVE STORY opined that three years is certainty.                                                                      
                                                                                                                                
CHAIR  SPOHNHOLZ asked  Representative  Story if  she intends  on                                                               
offering an amendment today or if she is objecting to the CS.                                                                   
                                                                                                                                
REPRESENTATIVE  STORY expressed  her hope  that the  bill sponsor                                                               
would withdraw the five-year sunset.                                                                                            
                                                                                                                                
CHAIR  SPOHNHOLZ pointed  out that  currently, its   part of  the                                                               
proposed  CS.   She  explained  that  Representative Story  could                                                               
offer  a  conceptual  amendment  to  the CS  if  Version  M  were                                                               
adopted.                                                                                                                        
                                                                                                                                
3:30:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS expressed  his support  for the  stability                                                               
that   a  five-year   window  lends   the   recipients  and   the                                                               
institutions.   He  offered his  belief that  between the  annual                                                               
TVEP report  and the  ability that  legislators have  to interact                                                               
with  those institutions  there will  be an  opportunity to  make                                                               
suggestions or intervene if necessary.                                                                                          
                                                                                                                                
3:31:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RASMUSSEN  asked  if the  increased  contribution                                                               
rate is .02 percent of every Alaska workers paycheck.                                                                           
                                                                                                                                
CHAIR  SPOHNHOLZ  clarified  that  it   is  not  an  increase  on                                                               
withholdings  from workers   paychecks.   She explained  that the                                                               
fund was overcapitalized, leaving  enough money to withstand this                                                               
additional increase.   She  said they are  putting that  money to                                                               
good use.                                                                                                                       
                                                                                                                                
REPRESENTATIVE RASMUSSEN questioned whether  there is enough of a                                                               
surplus to cover five years instead of three.                                                                                   
                                                                                                                                
CHAIR SPOHNHOLZ answered yes.                                                                                                   
                                                                                                                                
3:32:29 PM                                                                                                                    
                                                                                                                                
LENNON  WELLER,  Economist/UI  Actuary,  Department  of  Labor  &                                                               
Workforce Development, explained  that the unemployment insurance                                                               
trust fund  has currently  found itself  in an  enviable position                                                               
with substantial  reserves.   Currently, there  is nearly  half a                                                               
billion in  the fund, which  is roughly 80 million  dollars above                                                               
the  ideal position  to meet  the majority  of potential  benefit                                                               
costs.   Regarding  reserve  ratios, he  said,  the fund  targets                                                               
between 3-3.3  percent of  wages at any  given time.   Currently,                                                               
there is  over 3.8 percent, which  means .5 percent of  wages are                                                               
above their own statutory targets.                                                                                              
                                                                                                                                
CHAIR SPOHNHOLZ noted  that there is over 500  million dollars of                                                               
overcapitalized  in the  fund and  the proposed  CS budgets  1.68                                                               
million dollars additional per year.                                                                                            
                                                                                                                                
MR. WELLER affirmed  that.  He restated that the  fund has nearly                                                               
500 million dollars  in it, adding that  they are overcapitalized                                                               
by roughly  80 million dollars.   He said based on  the statutory                                                               
and historical targets, taking an  additional 1.6 million dollars                                                               
from the fund would not be detrimental.                                                                                         
                                                                                                                                
3:34:59 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ  removed her objection.   There being  no further                                                               
objection, Version M was adopted as the working draft.                                                                          
                                                                                                                                
3:35:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY expressed  her  hope that  the next  annual                                                               
report will show  trends in enrollment in the  various career and                                                               
technical  programs and  that any  necessary adjustments  will be                                                               
considered.                                                                                                                     
                                                                                                                                
3:36:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RASMUSSEN  agreed with Representative Story.   She                                                               
moved Conceptual  Amendment 1, which would  replace the five-year                                                               
reauthorization with a three-year reauthorization.                                                                              
                                                                                                                                
CHAIR  SPOHNHOLZ  objected  to   Conceptual  Amendment  1.    She                                                               
maintained  that  the majority  of  TVEP  recipients prefer  more                                                               
stability in funding.                                                                                                           
                                                                                                                                
3:37:35 PM                                                                                                                    
                                                                                                                                
MS. CARRICK reiterated that after  speaking with over half of the                                                               
TVEP recipients,  she is certain  that they unanimously  prefer a                                                               
five-year reauthorization.                                                                                                      
                                                                                                                                
3:38:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  expressed her  opposition to  a three-year                                                               
reauthorization.    She  opined  that   a  three-year  window  to                                                               
reauthorize  the program  is  a short  window  to accomplish  any                                                               
planning.  She  said five years is not too  long, and any program                                                               
that is not meeting its labor  needs may have already shifted and                                                               
changed after five  years.  She stated that five  years is a good                                                               
planning window.                                                                                                                
                                                                                                                                
3:39:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  noted  that NACTEC,  for  example,  works                                                               
closely with  the local  school district,  so in  considering the                                                               
timeframe  one must  also take  into account  the actions  of the                                                               
school board and, in turn, the  employers.  He said five years is                                                               
not a long time to implement a change, analyze, and assess it.                                                                  
                                                                                                                                
3:40:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RASMUSSEN  asserted that she doesnt   want this to                                                               
be  perceived as  an attack  on the  importance of  this program.                                                               
She  said there  may  be adjustments  and  additional needs  that                                                               
arise, which  is the  reason she is  advocating for  a three-year                                                               
reauthorization.                                                                                                                
                                                                                                                                
A roll  call vote was  taken.  Representatives  Rasmussen, Story,                                                               
and   Gillis  voted   in  favor   of   Conceptual  Amendment   1.                                                               
Representatives  Fields,  Stutes,  Hannan,  and  Spohnholz  voted                                                               
against it.   Therefore, Conceptual  Amendment 1 failed by  to be                                                               
adopted by a vote of 3-4.                                                                                                       
                                                                                                                                
CHAIR SPOHNHOLZ articulated that an  important part of crafting a                                                               
compromise is  to make  sure that everyone  wins.   She expressed                                                               
her hope  that CSHB  235 is  now moving  from the  committee with                                                               
that standpoint.   She said  a new  beneficiary was added  to the                                                               
TVEP,  which   helps  to   support  Alaskas    fishing  industry;                                                               
furthermore,  every  beneficiary  came out  with  more  financing                                                               
without  jeopardizing the  fund source  or the  stability of  the                                                               
state.  She shared her belief that this is a win.                                                                               
                                                                                                                                
3:42:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES   moved  to   report  CSHB   235,  Version                                                               
LS1480\M,  Wayne,  3/6/20,  out   of  committee  with  individual                                                               
recommendations  and  the  accompanying fiscal  notes.    Without                                                               
objection,  CSHB 235(L&C)  was  moved from  the  House Labor  and                                                               
Commerce Standing Committee.                                                                                                    

Document Name Date/Time Subjects
HB 235 Work Draft ver. M 03.06.2020.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 TVEP Rate Increase and New Allocation Structure 03.08.2020.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Work Draft ver. M Explanation of Changes 03.08.2020.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Supporting Document- ATC Letter 02.28.2020.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 ASMI Letter of Support 03.06.2020.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Supporting Document- Illisagvik Letter 02.26.2020.pdf HFIN 3/16/2020 1:30:00 PM
HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235.Backup Flow Chart 2.21.2020.pdf HL&C 2/21/2020 3:15:00 PM
HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Sponsor Statement 2.21.2020.pdf HL&C 2/21/2020 3:15:00 PM
HL&C 3/9/2020 3:15:00 PM
HB 235
HB 301 Work Draft ver E 03.06.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HB 301
HB 301 AJEATT letter re proposed regulatory changes 1.13.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HB 301
HB 301 Supporting Document ASAC Regulatory Response 1.12.20.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HB 301
HB 301 Sponsor Statement.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
SL&C 3/26/2020 1:30:00 PM
HB 301
HB 301 Fiscal Note DOLWD WD 03.06.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HB 301
HB 301 Fiscal Note DOLWD MI 03.06.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HB 301
HB 301 Pipe Trades letter of support 03.06.2020.PDF HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HB 301
SB 52 Summary of Goals.pdf HL&C 3/9/2020 3:15:00 PM
SFIN 2/11/2020 9:00:00 AM
SJUD 4/22/2019 6:00:00 PM
SL&C 3/26/2019 1:30:00 PM
SB 52
SB 52 Sponsor Statement v. E.A 03.02.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HL&C 3/18/2020 3:15:00 PM
SB 52
SB 52 Sectional Analysis v. E.A 03.02.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HL&C 3/18/2020 3:15:00 PM
SB 52
SB 52 Letters of Support with cover sheet.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
SB 52
HB 235 Support Letter for Dedicated TVEP Funding to Seafood Industry- NPSI 3.7.20.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Support Letter for Dedicated TVEP Funding to Seafood Industry-ARC 3.7.20.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Additional Document-About Kodiak Seafood and Marine Science Center 3.7.20.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Additional Document-ARC Processor Survey 3.7.20.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Additional Document-Kodiak Seafood and Marine Science Center Annual Report FY19 3.7.20.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Support Letter for Dedicated TVEP Funding to Seafood Indsutry- PSPA 3.7.20.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 UA Support Letter 02.28.2020.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
SB 52 Title IV presentation 03.09.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HL&C 3/18/2020 3:15:00 PM
SB 52