Legislature(1997 - 1998)

03/31/1998 09:10 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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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 Sharp noted this bill had been before the committee                   
the week before.                                                               
                                                                               
Senator Torgerson had prepared several amendments to offer.                    
He assured the other members that most were technical                          
changes.  He shared that the program director had initially                    
submitted many times the amount of amendments seen here and                    
the senator had been able to whittle the number down.                          
                                                                               
Senator Torgerson moved for adoption of the CS Workdraft                       
version "K".  Senator Adams objected to ask a question.  He                    
wanted to know how many of the amendments before the                           
committee were included in the revised bill.  Senator                          
Torgerson replied that it included Amendments 1-7 that the                     
committee had adopted during the other meeting.  Senator                       
Adams removed his objection.  Without objections, Version                      
"K" was adopted.                                                               
                                                                               
Senator Torgerson moved for adoption of Amendment #8.  It                      
was pointed out there already existed another Amendment #8.                    
Senator Torgerson's amendment was renumbered to be Amendment                   
                                                                               
Senator Torgerson spoke to the amendment saying, it had been                   
requested by Mike Andrews, the program director.  It would                     
identify ways for operating agencies to share resources and                    
structures and curriculum through the collaboration of other                   
public and private entities to increase opportunities and                      
reduce costs.  He detailed the specific changes, siting page                   
and line items and which words would be deleted and                            
inserted.  Amendment #8A was adopted without objection.                        
                                                                               
Senator Torgerson moved for adoption of Amendment #9 and                       
spoke to the amendment.  He told the committee it was also                     
brought to him by Mr. Andrews and would define the term                        
"program".  Basically, their intention was to limit the                        
activities of the Human Investment Resources Council to                        
programs that are directly underneath its control, according                   
to the senator.  In many cases, the institutions did a lot                     
more than just training programs and the sponsor didn't want                   
them to come under the administrative cap and other                            
provisions.  Therefore, this amendment would define a                          
program to include certificates for associate degree courses                   
related to the employment offered by the institutions or                       
contracted by the private sector.                                              
                                                                               
Senator Parnell tried to figure out how it fit into the                        
referenced page 7, line 8.  There was discussion as to the                     
proper placement of the language.  Senator Torgerson amended                   
his amendment to ask the drafter to insert the conceptual                      
language in the proper order in the bill.  The intention of                    
the amendment was to define the programs outlined in the                       
section, according to Senator Torgerson.  Co-Chair Sharp                       
instructed the secretary and the bill drafter to work with                     
Senator Torgerson to ensure his amendment was incorporated                     
into the legislation.  Without objection, Amendment #9 was                     
adopted.                                                                       
                                                                               
Senator Torgerson moved for adoption of Amendment #10,                         
saying they were all technical changes.  He detailed the                       
specific changes, and described each.  There was no                            
objection or further discussion and the amendment was                          
adopted.                                                                       
                                                                               
Senator Torgerson moved for adoption of Amendment #11.  He                     
spoke to the changes it made, moving the Employment Services                   
Division, Department of Labor language from Section F to                       
Section G.  Instead of coming under the direct                                 
responsibility of the AHRIC committee, the AHRIC committee                     
would include assessor programs in their annual report, he                     
explained.  He stressed that this program was more broad-                      
based that just job placement and training programs.  The                      
last part of the amendment inserted a new Section H, which                     
read, "The University of Alaska shall evaluate the                             
performance of its training program using the standards of E                   
of this section and shall provide a report on the results to                   
the council for inclusion in the council's annual report to                    
the Legislature."  That was language given to him by the                       
university, who really like the efforts being made with this                   
bill and wanted to be included, he attested.                                   
                                                                               
Without objection, Amendment #11 was adopted.                                  
                                                                               
Senator Torgerson spoke to Amendment #12 telling the                           
committee it was an all-encompassing language that said if                     
there were any new programs enacted by the federal                             
government, AHRIC was to review each of those programs and                     
make recommendations to the governor and the Legislature.                      
He then moved for adoption of Amendment #12.  There was no                     
objection and it was adopted.                                                  
                                                                               
Senator Torgerson moved for adoption of Amendment #13.  He                     
explained it would just delete a duplicated section in the                     
bill.  Without objection or discussion, Amendment #13 was                      
adopted.                                                                       
                                                                               
Senator Torgerson moved for adoption of Amendment #14.  In                     
speaking to the amendment, he said the Office of Management                    
and Budget came to him with an amendment that basically                        
deleted the three-quarters language that was in the bill for                   
the assessment of AHRIC.  There was some concern the bill                      
would create a different mechanism than what was currently                     
in statutes.  After double-checking with the drafter, the                      
amendment would take out the assessment of one-half of one                     
percent on the program that AHRIC was to just assess and                       
review.  It was determined the extra was not needed and the                    
fiscal note was reduced by about half, according to Senator                    
Torgerson.  He detailed the new language.  Amendment #14 was                   
adopted without objection.                                                     
                                                                               
Senator Torgerson moved for adoption of Amendment #15 and                      
told the committee of another bill currently in the finance                    
committee.  SB 245 would extend the date of the State                          
Training and Employment Program from 1998 to 2002.  The                        
language matched the amendment and would essentially roll                      
that bill into this one.                                                       
                                                                               
Senator Parnell asked if there was a Legislative Budget and                    
Audit report on the STEP program.  When told there was none,                   
he commented that the committee usually relied on those                        
audits when determining extensions.  Senator Torgerson gave                    
a background on the program sharing that when it was last                      
before the Legislature, because the program had been                           
spending well over 40 percent on administrative costs, they                    
capped the administrative costs of the program at 20 percent                   
and added the two-year sunset.  The sunset was so the                          
program would come back before the Legislature so they could                   
see if the 20 percent cap was being observed.  As this bill                    
was written, the cap would drop down to 15 percent, he                         
pointed out.  Although there was not a report done by LB&A,                    
he assured the committee he had looked at their accounting                     
extensively.                                                                   
                                                                               
Senator Adams expressed a desire that SB 245 go to the                         
Senate Rules Committee for review.  Senator Torgerson hinted                   
that this would ensure that the sunset bill would begin to                     
move through the process, if attached to the training bill.                    
                                                                               
Without objection, Amendment #15 was adopted.                                  
                                                                               
Co-Chair Sharp noted several individuals signed up to answer                   
questions.  He announced that unless he heard objections                       
from any of them, he would assume concurrence with the                         
actions taken by the committee today.  DWIGHT PERKINS,                         
Special Assistant with the Department of Labor wished to                       
comment.                                                                       
                                                                               
He expressed concerns similar to Senator Adam's regarding SB
245.  He noted if the sunset provision were not adopted the                    
training employment program would halt.  He said there was a                   
companion bill in the House, which may be adequate.                            
                                                                               
Senator Torgerson offered to rescind action on Amendment #15                   
if that would help.  Senator Adams suggested passing both                      
bills from committee.  Co-Chair Sharp agreed, saying they                      
could take action on SB 245 later if necessary.                                
                                                                               
Co-Chair Sharp assigned Senator Torgerson to work with the                     
co-chairs on amending the fiscal notes because of the many                     
changes made to the bill.  He ordered the bill held in                         
committee until new fiscal notes were prepared.                                
                                                                               
Co-Chair Sharp announced upcoming subcommittee meetings to                     
hear public testimony on SJR 42, Constitutional Amendment                      
RE: Same Sex Marriage.  He announced a full committee                          
meeting scheduled for 9:00am the next morning.                                 
                                                                               

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