Legislature(1997 - 1998)
03/27/1998 08:10 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 334
"An Act relating to guidelines and standards for state
training programs; and relating to the Alaska Human
Resource Investment Council."
Co-chair Pearce explained the agenda for bill hearings. She
advised that SB 334 was a Senate Finance sponsored bill
being led by Senator Torgerson. It was noted that at the
last hearing a work draft of CSSB 334(FIN) had been moved.
Senator Adams objected and there was some discussion, at
which time the objection was removed. The bill was not
formally adopted. Therefore, Senator Torgerson MOVED the
committee adopt CSSB 334(FIN), version "H", dated 3/24/98
and WITHOUT OBJECTION it was ADOPTED as the working version
before the committee.
Senator Torgerson provided the committee with an overview of
the bill. He asked that after his explanation any
amendments be discussed before the taking of public
testimony. He felt this may put many at ease. He indicated
he had approximately four amendments that he would like the
committee to consider.
He said he would follow the sectional analysis. The
subcommittee was created last July by Co-chair Pearce to
look into all of the training programs in the State to see
if the responsibilities were being carried out under AHRIC
(Alaska Human Resources Investment Council). He explained
that the program expends in the State approximately $93.8
million and it is a relatively large program. There are
thirty-four different training programs within the State.
Through their research they found many programs did not come
directly under AHRIC. He said they were creations of
legislation that left the committees under individual
departments and there was no entity looking at their
performance. It was also found there were no standard
performance measures for the programs or for administrative
costs. This bill would attempt to correct this and put
AHRIC in direct oversight to assess the programs. Senator
Torgerson then briefly reviewed the sections for the
committee.
Senator Torgerson MOVED amendment #1. He requested that
with this amendment the bill be held pending corrected
fiscal notes. WITHOUT OBJECTION amendment #1 was ADOPTED.
Senator Torgerson MOVED amendment #3. Senator Pearce
OBJECTED and then REMOVED her OBJECTION. WITHOUT OBJECTION
amendment #2 was ADOPTED.
Senator Torgerson MOVED amendment #4 and WITHOUT OBJECTION
it was ADOPTED.
Senator Torgerson MOVED amendment #5 and WITHOUT OBJECTION
it was ADOPTED.
Senator Torgerson MOVED amendment #6. He explained that it
was a re-write of amendment #2, which was not offered.
WITHOUT OBJECTION amendment #6 was ADOPTED.
Senator Torgerson MOVED amendment #7 and explained that it
was a technical amendment on page 4, line 2, deleting
"section" and inserting "sector". WITHOUT OBJECTION it was
ADOPTED.
Mike Andrews, Executive Director, Alaska Human Resource
Investment Council testified via teleconference from
Anchorage. He explained that the council was made up of
Commissioners and members from the private sector. He felt
that SB 334 was good legislation and has worked closely with
committee members, subcommittee members and others regarding
the relevancy of performance measures, the evaluation of job
training programs and the return on public investment.
Co-chair Pearce said she was reluctant to hold the bill
pending corrected fiscal notes because the committee wants
to get all bills out by 7 April 1998.
Senator Torgerson and Dwight Perkins, Legislative Liaison,
Office of the Commissioner, Department of Labor discussed
possible department amendment on page 7, line 21 of the
bill. Mr. Perkins said there was still some tracking being
done. Mr. Andrews said he had no problem with the proposed
Department of Labor amendment.
Mr. Perkins further stated he was willing to work closely
with Senator Torgerson in ironing out a few more possible
amendments. He noted page 3, section 6 and said the council
should be able to tap more from the private sector and not
be limited. Page 6, section 9 regarding administrative
costs would have to be further discussed with Senator
Torgerson. He completed his brief summation regarding
expenses and administrative burdens and training programs on
page 7 and 8, section 10(f). He said he felt the fiscal
note would be reduced.
Senator Torgerson MOVED amendment #8 and explained how it
would decrease the Department of Labor fiscal note. WITHOUT
OBJECTION it was ADOPTED.
Barbara Thompson, Director, Teaching and Learning Support,
Department of Education was invited to join the committee.
She noted her appreciation of amendment #4 and made a few
suggestions to improve the bill. She explained
administrative costs as compared to Federal grants.
Mike McMullin, Personnel Manager, Division of Personnel,
Department of Administration was invited to join the
committee. He noted a handout distributed to committee
members. He said the department felt the Alaska
Professional Development Institute was fundamentally
different from the kinds of programs AHRIC supervised and
that they should not be included under section (f). They
proposed that if not outright removed from the bill that the
Institute be moved to section (g) so that AHRIC could still
do the assessment and then re-list them in section (g). He
said they were more akin to programs of any major employer,
i.e., BP, ARCO, IBM and/or major banks. They provide in-
house training for their own employees, they are totally
funded by receipts generated by provided services and he
noted that less than one-sixth of that came from outside the
State.
(Tape #102, Side A switched to Side B.)
Mr. McMullin continued and said that there was some concern
with amendment #2, noting that the three-quarters percent
was problematic. The budget authorized the APDI was not
what they actually receive in funds and for which the
assessment would be available to make. They should look at
the language that deals with actual money. He further said
that the Commissioner of Administration should have a seat
on AHRIC, whether voting or non-voting. He said he had
passed on a number of technical amendments through the
proper channel, however he noted that the committee had not
received them. He explained them briefly. Page 2, line 24
should have picked up (a) and (c), a technical amendment.
The (c) list people could appoint a substitute for
themselves as opposed to a substitute for someone else.
Page 3, line 6 was in reference to non-voting commissioners.
He said it should delete "and two" and not add (c). Line 17
of the same page he suggested deletion of "appointed" and
insertion of "listed" because these were not appointments
but rather done by statute. Page 5, line 2 the word
"building policies" should be clarified. He said he knew
what "developing policies" was. Page 6, line 14 and line 29
with reference to adopting regulations, "under AS 44.62..."
language should be added to make it consistent with line 23.
Page 7, lines 21 - 24 was a potential "gotcha" by assuming a
particular rating scale. With regards to amendment #4
adopted this morning the program was referred to as being in
Department of Transportation and it should be corrected to
be in Department of Education.
Pam LaBolle, President, Alaska State Chamber of Commerce was
invited to join the committee. She commended the effort to
coordinate all programs, noting this would improve services
and cut costs. There was a great need for job and
employment training. She felt the executive committee
format and the per diem for small business was an
improvement. She applauded the results based government
approach and said that with administrative cost caps job
training dollars would reach where they were most needed.
Senator Phillips asked the relationship to welfare reform
and if any members had expressed concern to her regarding
training programs for welfare recipients? He said that
Providence, Arctic Slope and FEDEX had approached him
regarding a lack of coordination between State agencies.
Ms. LaBolle said she had not been approached. She said she
would convey the Senator's suggestion that the State Chamber
coordinate help for welfare reform recipients.
Co-chair Pearce noted that Yvonne Chase was available via
teleconference from Anchorage if there were any questions.
Dave Reese, AHRIC member was invited to join the committee.
He advised the committee that he had previously been on the
committee through Aleyeska Pipeline and was now with BP and
still represented an industry on the council. He was
currently on the executive committee as well as the
employment and placement committee. He has worked on
legislation and legislative review of this matter. He
explained main points and efficiencies, however felt it
would be difficult to oversee performance measures. With
reference to section (g) he highly supported language
directing the private section. He suggested they might re-
look at staff support to the council and said there needs to
be enough working capability of staff support. Going back
to the early vision of AHRIC he said they needed to focus on
still "holding the feet to the fire".
Senator Phillips again voiced concern with welfare reform
and said the private sector wanted one-stop-shop service.
Senator Torgerson said the University would like to come
under assessment and said he was working closely with Wendy
Redmond.
Co-chair Pearce said she would HOLD the bill in committee
but wanted action taken by next week if possible. Senator
Torgerson advised that he would be ready by next Tuesday.
Co-chair Pearce called SB 332.
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