Legislature(2007 - 2008)CAPITOL 106

03/20/2008 08:00 AM House STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 366 DISCLOSURE : APPROPRIATIONS FROM PFD FUND TELECONFERENCED
Moved Out of Committee
*+ HB 412 LEGISLATIVE COUNCIL & LB&A MEMBERSHIP TELECONFERENCED
<Bill Hearing Postponed to 03/27/08>
*+ HCR 23 UNIFORM RULES: MEASURE SPONSORS/READINGS TELECONFERENCED
<Bill Hearing Postponed to 03/27/08>
*+ HB 402 POLITICAL PARTIES DEFINITION/ELECTIONS TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 353 PUBLIC LIBRARY INTERNET FILTERS TELECONFERENCED
Moved CSHB 353(STA) Out of Committee
<Bill Hearing Rescheduled from 03/18/08>
<Teleconference Listen Only>
+= HB 261 PUBLICALLY FINANCED ELECTIONS TELECONFERENCED
Failed To Move Out Of Committee
+= HB 266 STATE EMPLOYEE DEPENDENTS CHILD CARE CTRS TELECONFERENCED
Moved CSHB 266(STA) Out of Committee
<Bill Held Over from 03/18/08>
HB 266-STATE EMPLOYEE DEPENDENTS CHILD CARE CTRS                                                                              
                                                                                                                                
8:47:56 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the  next order of business  was HOUSE                                                               
BILL   NO.  266,   "An   Act  relating   to   the  approval   and                                                               
administration  of  child  care  services by  the  Department  of                                                               
Administration primarily  for the  benefit of state  officers and                                                               
employees; and providing for an effective date."                                                                                
                                                                                                                                
8:48:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   BETH   KERTTULA,   Alaska   State   Legislature,                                                               
introduced HB 266  as prime sponsor.  She said,  "At the heart of                                                               
this is  the hope  that the  state can  step forward  in allowing                                                               
departments and employees  - if they find it necessary  - to have                                                               
space for a  private contractor to come in a  do childcare."  She                                                               
said  that  [providing  that  child   care]  would  have  a  huge                                                               
economical and societal  impact on Alaska.  She  noted that there                                                               
is  a committee  substitute available,  which clarifies  that the                                                               
department  would actually  have to  make a  determination as  to                                                               
whether  there  was   a  lack  of  availability   of  child  care                                                               
sufficient to  justify an  approval of a  child care  center, and                                                               
which  clarifies   that  there   is  "no   intent  to   have  any                                                               
competition."                                                                                                                   
                                                                                                                                
8:50:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to  adopt the  proposed committee                                                               
substitute (CS)  for HB 266, Version  25-LS0846\E, Wayne/Mischel,                                                               
3/17/08, as  a work draft.   There being no objection,  Version E                                                               
was before the committee.                                                                                                       
                                                                                                                                
8:50:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KERTTULA,   in  response   to  a   question  from                                                               
Representative Gruenberg,  noted that  the new language  added in                                                               
Version E is found on page 2, lines 3-6, which read as follows:                                                                 
                                                                                                                                
          (b) Before approving the establishment of a                                                                           
     program  that provides  child  care  services under  AS                                                                    
     39.90.200 - 39.90.290, the  department shall review the                                                                    
     availability of  state-licensed child care  services in                                                                    
     the municipality in which the  program would be located                                                                    
     to  determine  if  there  is  a  lack  of  availability                                                                    
     sufficient to justify the approval.                                                                                        
                                                                                                                                
8:50:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES said  although he  supports the  concept of                                                               
the  bill,  he is  concerned  that  if  a child  care  contractor                                                               
allowed into a state building were  to "fold," the state would be                                                               
responsible  for taking  over  the operation  of  the child  care                                                               
center.                                                                                                                         
                                                                                                                                
8:51:29 AM                                                                                                                    
                                                                                                                                
LEAH  CARPENETI,  Staff,  Representative  Beth  Kerttula,  Alaska                                                               
State Legislature,  on behalf  of Representative  Kerttula, prime                                                               
sponsor  of HB  266, directed  attention  to page  3, lines  3-4,                                                               
which read:                                                                                                                     
                                                                                                                                
          (b) Upon approval of the department, the                                                                              
     sponsoring  state agency  may  be  responsible for  the                                                                    
     operation of the child care center when                                                                                    
               (1) procedures under AS 36.30 fail to                                                                            
     procure a qualified service provider; or                                                                                   
               (2) the service provider's contract is                                                                           
     cancelled  and attempts  to  procure another  qualified                                                                    
     service provider are unsuccessful.                                                                                         
                                                                                                                                
MS. CARPENETI  explained that  there are  enough "hoops"  to jump                                                               
through and the responsibility would not revert automatically.                                                                  
                                                                                                                                
8:52:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES referred  to a sentence that  begins on page                                                               
3, line 13, which read:                                                                                                         
                                                                                                                                
     Neither the  operator nor any personnel  employed by or                                                                    
     at  a child  care facility  shall be  considered to  be                                                                    
     employees of  the state unless a  state agency operates                                                                    
     the facility under AS 39.90.240(b).                                                                                        
                                                                                                                                
REPRESENTATIVE  ROSES  said  that  language  concerns  him.    He                                                               
acknowledged that plenty  of people need child care,  but he does                                                               
not think the state needs to  be in the position of running child                                                               
care facilities.   He said if  the state opens the  door to child                                                               
care in  one place, it will  have to do so  everywhere across the                                                               
state.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  KERTTULA  said   she  appreciates  Representative                                                               
Roses' concern,  but it is not  the intent of the  bill that that                                                               
happen.   She said  the plan  uses components  such as  finding a                                                               
provider and  departmental decision-making.   She added,  "But it                                                               
certainly  is a  policy call  for the  committee if  you want  to                                                               
allow  that as  a fail-safe  or not.   We  did keep  it in  as an                                                               
absolute last choice."                                                                                                          
                                                                                                                                
8:54:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN  mentioned the child care  in the Federal                                                               
Building and asked for information pertaining to it.                                                                            
                                                                                                                                
MS.  CARPENETI,  in  response to  questions  from  Representative                                                               
Johansen, noted that  HB 266 is modeled on the  federal bill that                                                               
made  possible  the  child  care  facility  in  Juneau's  Federal                                                               
Building.   She noted  that that  facility used to  be run  by an                                                               
organization based in  Fairbanks, but a few years  ago it changed                                                               
to a board-run organization.   She offered her understanding that                                                               
the space for the child care  facility in the Federal Building is                                                               
provided [by  the federal government].   The proposed legislation                                                               
would allow for  the state to provide the space  or pass the cost                                                               
for it along to the independent contractor.                                                                                     
                                                                                                                                
REPRESENTATIVE JOHANSEN  asked if  there is any  possibility that                                                               
the federal government  could end up "on the  hook" regarding any                                                               
part of the aforementioned child care facility.                                                                                 
                                                                                                                                
MS. CARPENETI  relayed that all  the individual  federal agencies                                                               
in  Juneau's   Federal  Building  come  together   to  cover  the                                                               
following costs  of the  child care  facility:   rent, utilities,                                                               
and maintenance.                                                                                                                
                                                                                                                                
REPRESENTATIVE  JOHANSEN asked  for confirmation  that the  state                                                               
would not operate the facility but  would have a contract with an                                                               
organization that would operate it.                                                                                             
                                                                                                                                
8:57:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KERTTULA pointed out that  while not in Juneau, in                                                               
other arenas in  the country the federal  government does operate                                                               
child care centers.                                                                                                             
                                                                                                                                
MS. CARPENETI added  that the federal government  could choose to                                                               
operate the child  care facility in Juneau's  Federal Building if                                                               
it wanted to.                                                                                                                   
                                                                                                                                
8:58:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG directed  attention  to a  "Legislative                                                               
Research Report" dated June 19,  2007, [included in the committee                                                               
packet], which  he said  shows a  trend in  the United  States to                                                               
provide [child care].                                                                                                           
                                                                                                                                
REPRESENTATIVE  KERTTULA confirmed  that some  states do  provide                                                               
child care.                                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG observed that at least 22 states do so.                                                                
                                                                                                                                
8:58:50 AM                                                                                                                    
                                                                                                                                
MS. CARPENETI, in response to  Representative Gruenberg, said she                                                               
does not  know how many  private companies offer  their employees                                                               
child care  services, although the  numbers of employers  that do                                                               
are increasing.   She said  the bill sponsor has  statistics that                                                               
show the  positive benefits of onsite  child care.  She  said the                                                               
reason for  the increase in  facilities is because more  and more                                                               
households have "all of the  available parents" in the workforce.                                                               
In  response   to  a   follow-up  question   from  Representative                                                               
Gruenberg, she  confirmed that an increasing  number of companies                                                               
are offering  "pro-family" or "work life"  options, which include                                                               
not  only onsite  child care,  but also  the opportunity  to work                                                               
from  home.   Furthermore,  some employers  will  buy "slots"  in                                                               
nearby  child care  facilities for  their employees  to use  when                                                               
their children have sick days, for example.                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG  asked,  "Do  you  know  if  the  state                                                               
provides that kind of alternative  working arrangement that would                                                               
alleviate the need for child care?"                                                                                             
                                                                                                                                
MS. CARPENETI  replied that she  does not believe the  state buys                                                               
any child care  slots.  In response to a  follow-up question, she                                                               
said she  knows an increasing  number of states are  looking into                                                               
"options like  that," but she  said she  would have to  look into                                                               
the matter to find out more in-depth information.                                                                               
                                                                                                                                
REPRESENTATIVE  GRUENBERG remarked  that  it  certainly makes  it                                                               
easier for parents  to work when states offer  options related to                                                               
child care.   Parents fight a difficult situation  if they cannot                                                               
get  child care  or work  via telecommunication.   He  asked what                                                               
kind of financial arrangement is  made by states that offer child                                                               
care options and whether it is affordable for employees.                                                                        
                                                                                                                                
9:01:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KERTTULA   offered    her   understanding   that                                                               
California and Florida offer a sliding scale fee.                                                                               
                                                                                                                                
9:02:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  asked if  there is  any provision  in the                                                               
state's union  contract that would  require the state  to provide                                                               
child care in all its facilities once it offers it in one.                                                                      
                                                                                                                                
REPRESENTATIVE KERTTULA responded as follows:                                                                                   
                                                                                                                                
     I have no  idea, and if that were the  case, that would                                                                    
     be a  completely separate  issue from  this.   This was                                                                    
     inserted  into the  bill solely  as  ... the  complete,                                                                    
     last option, so  that there was some stop gap.   If the                                                                    
     committee thinks  it's inappropriate  to start  at this                                                                    
     point with  that, we can  take it  out of the  bill and                                                                    
     talk about  it more.  But  it was really for  the areas                                                                    
     where we know there aren't  any child care providers at                                                                    
     this point.                                                                                                                
                                                                                                                                
REPRESENTATIVE JOHNSON explained that he  does not want the State                                                               
of Alaska  to find itself  in the  position of having  to provide                                                               
child care statewide,  and he would like the record  to show that                                                               
that would not be the result of the proposed legislation.                                                                       
                                                                                                                                
REPRESENTATIVE  KERTTULA said  she  doesn't  think the  committee                                                               
would not  want to preclude "that."   She stated her  belief that                                                               
people should have child care throughout state agencies.                                                                        
                                                                                                                                
REPRESENTATIVE JOHNSON said he supports  the concept of the bill,                                                               
but  reiterated  that  he  doesn't  want  the  state  to  end  up                                                               
responsible for paying for child care facilities.                                                                               
                                                                                                                                
9:05:27 AM                                                                                                                    
                                                                                                                                
FATE  PUTMAN,  Assistant Business  Manager/Legislative  Lobbyist,                                                               
Alaska State Employees  Association/American Federation of State,                                                               
County  and  Municipal  Employees (ASEA/AFSCME)  Local  52,  said                                                               
there  is nothing  in the  collective  bargaining agreement  that                                                               
addresses child care facilities in  state facilities.  He stated,                                                               
"I  would consider  it to  be  probably a  permissive subject  of                                                               
collective bargaining.   It may  be something that in  the future                                                               
we would  want to do,  but our intent  would be, of  course, that                                                               
everybody  be  able   to  have  child  care   services  in  their                                                               
facilities."  He  added, "It wouldn't be something  that we would                                                               
prohibit anybody else from doing."                                                                                              
                                                                                                                                
MR.  PUTMAN,  in  response to  Representative  Johnson,  said  he                                                               
thinks  the idea  of collective  bargaining is  that everyone  is                                                               
treated the same.                                                                                                               
                                                                                                                                
REPRESENTATIVE JOHNSON concluded that  that means providing child                                                               
care in just one state facility could be an issue.                                                                              
                                                                                                                                
9:07:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOLL  said she  would like to  see the  state take                                                               
leadership and offer child care to  all its state employees.  She                                                               
talked about the economic impact of parents in the workforce.                                                                   
                                                                                                                                
CHAIR LYNN  said he does not  want to expand the  bill to include                                                               
child care facilities throughout the state.                                                                                     
                                                                                                                                
9:09:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  asked how  much an  employer's offering                                                               
child   care  increases   that   employer's  competitiveness   in                                                               
attracting and keeping good employees.                                                                                          
                                                                                                                                
REPRESENTATIVE  KERTTULA  said  the  amount of  people  who  have                                                               
contacted  her  office regarding  the  issue  indicates that  the                                                               
employer's competitiveness would  be increased quite a  bit.  She                                                               
said there is research supporting that.                                                                                         
                                                                                                                                
9:09:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON, regarding  Representative Doll's  point,                                                               
said some  legislators want to  control the growth  of government                                                               
while others do  not. He said although this issue  is one that he                                                               
would want  to embrace, he is  not a proponent of  increasing the                                                               
power of government  to do a job that the  private sector can do.                                                               
He stated,  "I'm not  prepared to  make the  leap that  the state                                                               
should  be every  thing  to  every person."    He  said he  would                                                               
dislike seeing  the state putting Juneau's  child care facilities                                                               
out of business by taking over the role of child care provider.                                                                 
                                                                                                                                
9:10:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  said he  supports  the  concept of  the                                                               
bill,  because  the  benefit  of  having  children  nearby  their                                                               
parents at  work is  that it  is good  for employees'  morale and                                                               
increases  job attractiveness.    However, he  said  he does  not                                                               
support  getting  "hooked  into   having  a  state-run  day  care                                                               
center."                                                                                                                        
                                                                                                                                
CHAIR  LYNN  indicated   that  he  concurs  with   most  of  what                                                               
Representative Johansen expressed.                                                                                              
                                                                                                                                
REPRESENTATIVE  DOLL  opined  that the  proposed  legislation  is                                                               
important and needs  to be passed.  She  assured fellow committee                                                               
members that  she wants to stay  on track and "not  move into the                                                               
larger issues."                                                                                                                 
                                                                                                                                
9:13:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KERTTULA  clarified that  the  idea  of having  a                                                               
state agency  run the child  care is  intended only for  areas in                                                               
which there is no other choice.   She proffered that if it is the                                                               
committee's wish  to amend  the bill to  take out  that fail-safe                                                               
measure, then  the following  sections would  need to  be removed                                                               
from the bill:   page 3, lines  3-8 and 13-15.   She said passing                                                               
the bill  without that language  would highlight the  areas where                                                               
the fail-safe  was needed, and  another bill could  be introduced                                                               
at that point to address the issue.                                                                                             
                                                                                                                                
9:14:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES agreed  with all of the  positive aspects of                                                               
the bill  mentioned thus  far, but  emphasized the  importance of                                                               
letting the  public know that  the state would be  providing only                                                               
the space,  not picking up the  tab for running the  service.  He                                                               
said  his daughter  runs a  child care  facility and  the biggest                                                               
issues she  faces are regarding  space, utilities,  and complying                                                               
with  state law  - not  her  ability to  run the  center or  hire                                                               
employees.                                                                                                                      
                                                                                                                                
9:16:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  moved to adopt  Conceptual Amendment  1, as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 3, lines 3-8:                                                                                                         
          Delete language                                                                                                       
                                                                                                                                
     Page 3, lines 13-15, following "program.":                                                                                 
          Delete "Neither the operator nor any personnel                                                                        
     employed  by  or  at  a child  are  facility  shall  be                                                                    
     considered to be employees of  the state unless a state                                                                    
     agency operates the facility under AS 39.90.240(b).                                                                        
                                                                                                                                
REPRESENTATIVE  ROSES clarified  that  the  intent of  Conceptual                                                               
Amendment  1 is  "to remove  the fail-safe  for the  state taking                                                               
over  the operation."   Even  without the  language, he  said, he                                                               
thinks the bill is a valuable asset for state employees.                                                                        
                                                                                                                                
9:17:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG objected to  Conceptual Amendment 1.  He                                                               
talked  about  the problem  the  State  of  Alaska is  having  in                                                               
recruiting and  retaining employees  under its  latest retirement                                                               
system plan, and  he predicted that employees  will quite working                                                               
for  the  state  in  areas  that would  have  no  child  care  if                                                               
Conceptual Amendment  were to be  adopted.   He said he  views HB
266  as a  first measure  in addressing  the problem  of lack  of                                                               
retention.  He  said he  would  encourage  the state  to  provide                                                               
alternative   methods  of   working  for   the  state,   such  as                                                               
telecommuting, because he  said Alaska is a state  that is mainly                                                               
rural.                                                                                                                          
                                                                                                                                
9:19:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES   stated  that   he  thinks   the  proposed                                                               
legislation,  even  with  the   proposed  amendment,  will  still                                                               
attract   and  retain   employees.     He   explained  that   the                                                               
proportional cost of child care  will be proportionally less in a                                                               
state-owned facility, and he said that will attract workers.                                                                    
                                                                                                                                
9:20:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KERTTULA  said the bill  was much larger  in scope                                                               
four  years  ago  and  has   been  streamlined.    She  expressed                                                               
appreciation  for the  feedback of  the committee,  and said  she                                                               
thinks that Representative  Roses is correct that  the bill, even                                                               
with Conceptual Amendment  1, will serve to  attract employees to                                                               
work for  the State  of Alaska.   She said  she would  prefer the                                                               
bill "have  a little bit  of movement today," rather  than demand                                                               
the fail-safe provision be left in it.                                                                                          
                                                                                                                                
9:22:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  removed his objection.   There being no                                                               
further objection, Conceptual Amendment 1 was adopted.                                                                          
                                                                                                                                
9:22:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DOLL  asked if  the  child  care offered  in  the                                                               
Federal Building  offers a substantial  savings to  the employees                                                               
with children.                                                                                                                  
                                                                                                                                
9:22:41 AM                                                                                                                    
                                                                                                                                
MS. CARPENETI  indicated that there  is a cost  savings resulting                                                               
from the  fact that the  rent and utilities  are paid for  by the                                                               
federal government  and the  employees are  charged on  a sliding                                                               
fee scale, depending on their ability to pay.                                                                                   
                                                                                                                                
CHAIR LYNN  remarked that he  does not  know how much  child care                                                               
costs.                                                                                                                          
                                                                                                                                
REPRESENTATIVE   ROSES  proffered   that  the   cost  starts   at                                                               
approximately $215 a week per child.                                                                                            
                                                                                                                                
9:23:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN said  he pays $1,500 a  month, total, for                                                               
his three children's child care.                                                                                                
                                                                                                                                
9:23:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON indicated that  the adoption of Conceptual                                                               
Amendment  1 has  increased his  already existing  support of  HB
266.                                                                                                                            
                                                                                                                                
9:24:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON moved  to report (CS) for  HB 266, Version                                                               
25-LS0846\E,   Wayne/Mischel,  3/17/08,   as   amended,  out   of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  266(STA)  was                                                               
reported out of the House State Affairs Standing Committee.                                                                     
                                                                                                                                

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