Legislature(2019 - 2020)ADAMS 519

03/18/2020 01:30 PM FINANCE

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Audio Topic
01:57:01 PM Start
01:57:41 PM HB235
02:26:28 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 155 AK PERFORMANCE SCHOLARSHIP; ELIGIBILITY TELECONFERENCED
<Bill Hearing Canceled>
-- Public Testimony --
+ HB 201 DEFENSE OF PUB. OFFICER: ETHICS COMPLAINT TELECONFERENCED
<Bill Hearing Canceled>
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 235 AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS TELECONFERENCED
Moved CSHB 235(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 18, 2020                                                                                            
                         1:57 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:57:01 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Johnston called the House Finance Committee                                                                            
meeting to order at 1:57 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Jennifer Johnston, Co-Chair                                                                                      
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Andy Josephson                                                                                                   
Representative Gary Knopp                                                                                                       
Representative Bart LeBon                                                                                                       
Representative Adam Wool                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Ben Carpenter                                                                                                    
Representative Kelly Merrick                                                                                                    
Representative Colleen Sullivan-Leonard                                                                                         
Representative Cathy Tilton                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Erin Shine, Staff, Representative Jennifer Johnston                                                                             
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Miles   Baker,   Associate    Vice   President,   Government                                                                    
Relations, University of Alaska.                                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 235    AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS                                                                             
                                                                                                                                
          CSHB 235(FIN)  was REPORTED out of  committee with                                                                    
          three   "do  pass"   recommendations,  three   "no                                                                    
          recommendation"   recommendations,   one   "amend"                                                                    
          recommendation  and  with  one new  fiscal  impact                                                                    
          note   by  Department   of  Education   and  Early                                                                    
          Development, four  new fiscal impact notes  by the                                                                    
          Department  of  Labor and  Workforce  Development,                                                                    
          and one  new fiscal impact note  by the University                                                                    
          of Alaska.                                                                                                            
                                                                                                                                
Co-Chair Johnston reviewed the agenda for the meeting.                                                                          
                                                                                                                                
HOUSE BILL NO. 235                                                                                                            
                                                                                                                                
     "An Act relating to allocations of funding for the                                                                         
     Alaska Workforce Investment Board; and providing for                                                                       
     an effective date."                                                                                                        
                                                                                                                                
1:57:41 PM                                                                                                                    
                                                                                                                                
Co-Chair   Foster   MOVED   to  ADOPT   proposed   committee                                                                    
substitute for HB 235,  Work Draft 31-LS1480\K (Neuman\Wayne                                                                    
3/18/20)(copy on file).                                                                                                         
                                                                                                                                
Co-Chair Johnston OBJECTED for discussion.                                                                                      
                                                                                                                                
ERIN   SHINE,  STAFF,   REPRESENTATIVE  JENNIFER   JOHNSTON,                                                                    
introduced herself.                                                                                                             
                                                                                                                                
1:58:09 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:58:25 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Ms. Shine  reviewed the changes  to the CS. She  relayed the                                                                    
first  change, which  removed language  related to  employee                                                                    
contributions  to   the  Alaska  Technical   and  Vocational                                                                    
Education program (TVEP). She  continued to the next change;                                                                    
the numbers  in the previous  Section 1 had been  changed to                                                                    
reflect what was already in  statute, this Section 1 was new                                                                    
as the previous was moot.  The next change was the insertion                                                                    
of legislative intent  in the new Section 1,  line 4 through                                                                    
11. She noted  that Section 2 changed the  extension date to                                                                    
a  3-year  extension rather  than  a  5-year extension.  She                                                                    
pointed out Page  2, line 4 thorough 13,  which reverted the                                                                    
percentages back  to what  was found  in statute;  there had                                                                    
been  an  insertion of  the  Kodiak  Marine Science  Center,                                                                    
which was  removed and addressed  in the intent  language in                                                                    
Section 1.                                                                                                                      
                                                                                                                                
2:00:06 PM                                                                                                                    
                                                                                                                                
Representative   Josephson  reported   that  currently   the                                                                    
University of  Alaska Fairbanks spent  its own  resources on                                                                    
TVEP.                                                                                                                           
                                                                                                                                
Ms. Shine  deferred to the  university. She  understood that                                                                    
in previous  years the science  center had  received funding                                                                    
though TVEP.                                                                                                                    
                                                                                                                                
2:00:43 PM                                                                                                                    
                                                                                                                                
Representative Josephson restated his question.                                                                                 
                                                                                                                                
2:00:58 PM                                                                                                                    
                                                                                                                                
MILES   BAKER,   ASSOCIATE    VICE   PRESIDENT,   GOVERNMENT                                                                    
RELATIONS,  UNIVERSITY   OF  ALASKA   (via  teleconference),                                                                    
reported that  the Kodiak Seafood and  Marine Science Center                                                                    
(KSMSC)  was part  of  the College  of  Fisheries and  Ocean                                                                    
Science  at  UAF, the  budget  of  which  had been  over  $1                                                                    
million annually. He  said that if there was  a request from                                                                    
the KSMSC  for TVEP funding,  it went through  a competitive                                                                    
process and was typically awarded.  He said that the average                                                                    
award was for $40 thousand  to $50 thousand of strictly TVEP                                                                    
funds.                                                                                                                          
                                                                                                                                
2:02:32 PM                                                                                                                    
                                                                                                                                
Representative   Josephson    was   wondering    about   the                                                                    
flexibility the  university would  retain if it  reduced the                                                                    
portion of UGF it provided to KSMSC.                                                                                            
                                                                                                                                
Mr. Baker  responded that the  funding would be part  of the                                                                    
budget that went through the  College of Fisheries and Ocean                                                                    
Science.  He  explained that  the  concern  with the  intent                                                                    
language  was   the  reference  to   AS  16.52.020   and  AS                                                                    
16.52.030; these  were not TVEP  statutes but  were statutes                                                                    
that created  and governed KSMSC, which  under its statutory                                                                    
authority was involved in more  than the programs envisioned                                                                    
through TVEP.                                                                                                                   
                                                                                                                                
2:04:01 PM                                                                                                                    
                                                                                                                                
Representative Wool asked whether  existing TVEP funding for                                                                    
ASMSC fell under AS 16.52.020 and AS 16.52.030.                                                                                 
                                                                                                                                
Mr. Baker read the intent  language such that the University                                                                    
would allocate  the amount needed  to fund and  maintain the                                                                    
programs consistent  with the KSMSC  and TEVP statutes.   He                                                                    
noted that  AS 16.52.020, which established  the KSMSC, were                                                                    
broader than the programming mandate  of TVEP. He speculated                                                                    
that  some  KSMSC  programs  could   be  crafted  into  TVEP                                                                    
eligible programs.                                                                                                              
                                                                                                                                
Representative Wool  thought that if the  statute was broad,                                                                    
perhaps a  smaller program encompassed by  the statute would                                                                    
be eligible.                                                                                                                    
                                                                                                                                
Mr. Baker directed attention to Page 1, line 8 of the bill:                                                                     
                                                                                                                                
     ?.  allocate   the  amount  necessary   to  sustainably                                                                    
     maintain programs  consistent with AS 16.52.020  and AS                                                                    
     23.15.820     23.15.850   through  the  Kodiak  Seafood                                                                    
     Marine Science Center.                                                                                                     
                                                                                                                                
Mr. Baker thought that it  could be read that the University                                                                    
was maintaining and sustaining  programs consistent with the                                                                    
mission of KSMSC and the TVEP mission.                                                                                          
                                                                                                                                
2:08:40 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:08:54 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Johnston WITHDREW her OBJECTION.                                                                                       
                                                                                                                                
There  being NO  further OBJECTION,  Work Draft  31-LS1480\K                                                                    
was ADOPTED.                                                                                                                    
                                                                                                                                
Vice-Chair  Ortiz MOVED  to  ADOPT  Conceptual Amendment  1:                                                                    
                                                                                                                                
     Page 1, line 7                                                                                                             
                                                                                                                                
     Insert a comma and "from the funds received under                                                                          
     Section 2 of this act" after the word "allocate."                                                                          
                                                                                                                                
Co-Chair Johnston OBJECTED for discussion.                                                                                      
                                                                                                                                
Vice-Chair  Ortiz explained  the amendment  tied the  intent                                                                    
language  to the  University's  TVEP  allocation. He  shared                                                                    
that  the current  language  in Section  1  did not  specify                                                                    
funding source.                                                                                                                 
Co-Chair Johnston WITHDREW her OBJECTION.                                                                                       
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Co-Chair  Foster requested  clarity  on  what the  amendment                                                                    
would do regarding funding from the TVEP allocation.                                                                            
                                                                                                                                
Mr. Baker responded that from  reading the amendment, he did                                                                    
not  believe that  anything would  change  in the  budgeting                                                                    
process  for  KSMSC  but  would encourage  a  focus  on  the                                                                    
increased  use of  available TVEP  money.  He supported  the                                                                    
amendment,  as  it  offered clarity  about  TVEP  money.  He                                                                    
shared  that in  2019, the  total budget  was slightly  less                                                                    
than  $1.7   million  in  combined  UGF,   TVEP  funds,  and                                                                    
unrestricted fund  revenue grants brought in  by faculty and                                                                    
researchers at KSMSC.                                                                                                           
                                                                                                                                
Co-Chair Foster WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
There  being NO  further OBJECTION,  Conceptual Amendment  1                                                                    
was ADOPTED.                                                                                                                    
                                                                                                                                
2:14:08 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  MOVED  to  report  CSHB  235(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Representative Knopp OBJECTED.                                                                                                  
                                                                                                                                
Representative   Knopp   wanted   to  offer   a   conceptual                                                                    
amendment.                                                                                                                      
                                                                                                                                
2:14:54 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:22:22 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Knopp WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
There being NO further OBJECTION, it was so ordered.                                                                            
                                                                                                                                
CSHB 235(FIN) was  REPORTED out of committee  with three "do                                                                    
pass"    recommendations,    three    "no    recommendation"                                                                    
recommendations,  one "amend"  recommendation  and with  one                                                                    
new fiscal impact note by  Department of Education and Early                                                                    
Development, four new fiscal impact  notes by the Department                                                                    
of  Labor  and Workforce  Development,  and  one new  fiscal                                                                    
impact note by the University of Alaska.                                                                                        
                                                                                                                                
Co-Chair Johnston discussed housekeeping.                                                                                       
                                                                                                                                
2:23:28 PM                                                                                                                    
                                                                                                                                
Representative Wool  wanted to  address a concept  that came                                                                    
up during  public testimony. He clarified  that TVEP funding                                                                    
was  not based  on payroll  or earnings.  He thought  it was                                                                    
important   to  consider   reviewing  performances   of  the                                                                    
entities  funded through  TVEP. He  reiterated that  funding                                                                    
for TVEP was not based on payroll receipts.                                                                                     
                                                                                                                                
2:24:40 PM                                                                                                                    
                                                                                                                                
Representative  Knopp asked  Representative Wool  to comment                                                                    
further,  as he  understood that  all funding  for the  TVEP                                                                    
program was based on employee contributions.                                                                                    
                                                                                                                                
Representative Wool  agreed that  the funding came  from the                                                                    
unemployment fund. He clarified that  what he meant was that                                                                    
the way  the TVEP program  was distributed was not  based on                                                                    
the industrys   contribution to unemployment. He  added that                                                                    
the TEVP programs offered were  determined based on the need                                                                    
for certain workforce development.                                                                                              
                                                                                                                                
Representative Knopp asserted that  if a particular industry                                                                    
was paying  an exorbitant  amount in wages  and unemployment                                                                    
insurance  into the  fund  there  should not  be  a lack  of                                                                    
funding for training in that industry.                                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
2:26:28 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:26 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB 235 ver. K 3.18.20.pdf HFIN 3/18/2020 1:30:00 PM
HB 235
HB 235 UA TVEP FY15-FY19 Funding Allocations 031820.pdf HFIN 3/18/2020 1:30:00 PM
HB 235