Legislature(1997 - 1998)

04/17/1998 03:37 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
    HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                
                   April 17, 1998                                              
                     3:37 p.m.                                                 
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative Norman Rokeberg, Chairman                                       
Representative John Cowdery, Vice Chairman                                     
Representative Bill Hudson                                                     
Representative Jerry Sanders                                                   
Representative Joe Ryan                                                        
Representative Tom Brice                                                       
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
Representative Gene Kubina                                                     
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
* HOUSE BILL 484                                                               
"An Act exempting services of certain sports officials at amateur              
sporting events from coverage under the Alaska Employment Security             
Act; and providing for an effective date."                                     
                                                                               
     - MOVED HB 484 OUT OF COMMITTEE                                           
                                                                               
CS FOR SENATE BILL 334(FIN)                                                    
"An Act relating to guidelines and standards for state training                
programs; relating to the Alaska Human Resource Investment Council             
(AHRIC); extending the termination date of the state training and              
employment program; and providing for an effective date."                      
                                                                               
     - HEARD AND HELD                                                          
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
BILL: HB 484                                                                   
SHORT TITLE: UNEMPLOY EXEMPT AMATEUR SPORTS OFFICIAL                           
SPONSOR(S): LABOR & COMMERCE BY REQUEST                                        
                                                                               
Jrn-Date    Jrn-Page           Action                                          
 4/09/98      2943     (H)  READ THE FIRST TIME - REFERRAL(S)                  
 4/09/98      2943     (H)  LABOR & COMMERCE                                   
 4/17/98               (H)  L&C AT  3:15 PM CAPITOL 17                         
                                                                               
BILL: SB 334                                                                   
SHORT TITLE: STATE TRAINING PROGRAMS/HUMAN RES.COUNCIL                         
SPONSOR(S): FINANCE                                                            
                                                                               
Jrn-Date    Jrn-Page           Action                                          
 1/27/98               (H)  MINUTE(FIN)                                        
 3/06/98      2770     (S)  READ THE FIRST TIME - REFERRAL(S)                  
 3/06/98      2770     (S)  FINANCE                                            
 3/24/98               (S)  FIN AT  9:00 AM SENATE FINANCE 532                 
 3/27/98               (S)  FIN AT  8:00 AM SENATE FINANCE 532                 
 3/31/98               (S)  FIN AT  9:00 AM SENATE FINANCE 532                 
 4/01/98               (S)  FIN AT  9:00 AM SENATE FINANCE 532                 
 4/01/98               (S)  RLS AT 12:10 PM FAHRENKAMP RM 203                  
 4/01/98               (S)  MINUTE(RLS)                                        
 4/01/98      3090     (S)  FIN RPT  CS  4DP 3NR   NEW TITLE                   
 4/01/98      3090     (S)  DP: SHARP, PEARCE, PHILLIPS,                       
                            TORGERSON;                                         
 4/01/98      3090     (S)  NR:  PARNELL, DONLEY, ADAMS                        
 4/01/98      3090     (S)  FISCAL NOTES TO CS                                 
 4/01/98      3090     (S)  (DHSS, GOV, LABOR, DOE-3)                          
 4/01/98      3090     (S)  ZERO FISCAL NOTE TO CS (ADM)                       
 4/02/98      3112     (S)  ZERO FNS TO CS (DHSS/S.FIN,                        
                            DOE/S.FIN-3)                                       
 4/02/98      3113     (S)  RULES TO CALENDAR  4/2/98                          
 4/02/98      3114     (S)  READ THE SECOND TIME                               
 4/02/98      3114     (S)  FIN  CS ADOPTED UNAN CONSENT                       
 4/02/98      3114     (S)  ADVANCED TO THIRD READING UNAN                     
                            CONSENT                                            
 4/02/98      3114     (S)  READ THE THIRD TIME  CSSB 334(FIN)                 
 4/02/98      3115     (S)  PASSED Y17 N1 E2                                   
 4/02/98      3115     (S)  EFFECTIVE DATE(S) SAME AS PASSAGE                  
 4/02/98      3115     (S)  DUNCAN NOTICE OF RECONSIDERATION                   
 4/03/98      3139     (S)  RECONSIDERATION NOT TAKEN UP                       
 4/03/98      3139     (S)  TRANSMITTED TO (H)                                 
 4/06/98      2882     (H)  READ THE FIRST TIME - REFERRAL(S)                  
 4/06/98      2882     (H)  LABOR & COMMERCE, FINANCE                          
 4/17/98               (H)  L&C AT  3:15 PM CAPITOL 17                         
                                                                               
WITNESS REGISTER                                                               
                                                                               
DWIGHT PERKINS, Special Assistant                                              
  Office of the Commissioner                                                   
Department of Labor                                                            
P.O. Box 21149                                                                 
Juneau, Alaska  99802-1149                                                     
Telephone:  (907) 465-2700                                                     
POSITION STATEMENT:  Provided information on HB 484.                           
                                                                               
REBECCA GAMEZ, Director                                                        
Employment Security Division                                                   
Department of Labor                                                            
P.O. Box 25509                                                                 
Juneau, Alaska  99802-5509                                                     
Telephone:  (907) 465-2711                                                     
POSITION STATEMENT:  Testified on HB 484.                                      
                                                                               
BOB WALKER, President                                                          
Anchorage Softball Umpires' Association                                        
P.O. Box 210504                                                                
Anchorage, Alaska 99521                                                        
Telephone:  (907) 694-5713                                                     
POSITION STATEMENT:  Testified in support of HB 484.                           
                                                                               
GARY MATTHEWS, Executive Director                                              
Alaska School Activities Association                                           
4120 Laurel Street                                                             
Anchorage, Alaska 99508                                                        
Telephone:  not provided                                                       
POSITION STATEMENT:  Testified in support of HB 484.                           
                                                                               
PATRICIA LILLIAN, Commissioner                                                 
Alaska Amateur Softball Association                                            
2850 Drake Drive                                                               
Anchorage, Alaska 99508                                                        
Telephone:  (907) 272-7683                                                     
POSITION STATEMENT:  Testified in support of HB 484.                           
                                                                               
JOHN RENN, Secretary/Treasurer                                                 
Anchorage Football Association                                                 
7014 Saturn Circle                                                             
Anchorage, Alaska 99504                                                        
Telephone:  (907) 337-2605                                                     
POSITION STATEMENT:  Testified in support of HB 484.                           
                                                                               
JACK HEESCH, Representing                                                      
Farthest North Umpire's Association                                            
P.O. Box 201608                                                                
Anchorage, Alaska  99520                                                       
Telephone:  (907) 279-0478                                                     
POSITION STATEMENT:  Available to answer question on HB 484.                   
                                                                               
SENATOR JOHN TORGERSON                                                         
Alaska State Legislature                                                       
Capitol Building, Room 514                                                     
Juneau, Alaska  99801                                                          
Telephone:  (907) 465-2828                                                     
POSITION STATEMENT:  Provided information on SB 334.                           
                                                                               
MIKE ANDREWS, Executive Director                                               
Alaska Human Resource Investment Council                                       
3601 C Street, Suite 380                                                       
Anchorage, Alaska  99503                                                       
Telephone:  (907) 269-7485                                                     
POSITION STATEMENT:  Provided information on SB 334.                           
                                                                               
MIKE McMULLEN, Personnel Manager                                               
Division of Personnel                                                          
Department of Administration                                                   
P.O. Box 110201                                                                
Juneau, Alaska  99811-0201                                                     
Telephone:  (907) 465-4431                                                     
POSITION STATEMENT:  Provided information on SB 334.                           
                                                                               
BARBARA THOMPSON, Director                                                     
Teaching and Learning Support                                                  
Department of Education                                                        
801 West Tenth Street, Suite 200                                               
Juneau, Alaska  99801                                                          
Telephone:  (907) 465-8727                                                     
POSITION STATEMENT:  Provided information on SB 334.                           
                                                                               
KRYSTAL MURPHY, Legislative Administrative                                     
  Assistant to Senator Torgerson                                               
Alaska State Legislature                                                       
Capitol Building, Room 514                                                     
Juneau, Alaska  99801                                                          
Telephone:  (907) 465-2828                                                     
POSITION STATEMENT:  Testified on SB 334.                                      
                                                                               
KRAG JOHNSEN, Administrative Assistant                                         
  to Senator Drue Pearce                                                       
Alaska State Legislature                                                       
Capitol Building, Room 518                                                     
Juneau, Alaska 99801                                                           
Telephone:  (907) 465-6594                                                     
POSITION STATEMENT:  Provided information on SB 334.                           
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-47, SIDE A                                                             
Number 0001                                                                    
                                                                               
CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce                   
Standing Committee meeting to order at 3:37 p.m.  Members present              
at the call to order were Representatives Rokeberg, Cowdery,                   
Sanders and Ryan.  Representatives Hudson and Brice arrived at 3:45            
p.m. and 4:00 p.m. respectively.                                               
                                                                               
HB 484 - UNEMPLOY EXEMPT AMATEUR SPORTS OFFICIAL                               
                                                                               
Number 0007                                                                    
                                                                               
CHAIRMAN ROKEBERG announced HB 484, "An Act exempting services of              
certain sports officials at amateur sporting events from coverage              
under the Alaska Employment Security Act; and providing for an                 
effective date," is before the committee.                                      
                                                                               
CHAIRMAN ROKEBERG said the Senate and a number of people,                      
particularly the folks in Representative Vezey's office, asked the             
committee to introduce a House Labor and Commerce bill.  He stated             
this legislation is intended to exempt unemployment compensation               
requirements for tax liabilities of amateur sports officials for               
nonprofit and certain schools and we are endeavoring to influence              
the United States Congress to pass legislation to accommodate.                 
                                                                               
Number 0018                                                                    
                                                                               
DWIGHT PERKINS, Special Assistant, Office of the Commissioner,                 
Department of Labor, appeared before the committee.  He said,                  
"Speaking on behalf of HB 484, it does exempt certain sports                   
officials in amateur sporting events from coverage of Employment               
Security Act.  There was a concern brought to the department's                 
attention about liability of an employer and the tax liability they            
owe in the event a sports official applies for unemployment                    
compensation.  It is known in the industry that these usually                  
aren't full-time jobs, as most cases not even a supplemental                   
income.  The folks do it, a lot of them do it to be with their kids            
while they're at their soccer games or the baseball games and                  
they're compensated a small amount of money - maybe $8 or $10 or               
$15 per sporting event.  What brought this to the attention of the             
department was that there was a claim filed by an individual and               
when it was recognized that they did work for an organization to be            
a sports official, because of federal law, we, the department must             
collect those taxes."                                                          
                                                                               
MR. PERKINS continued, "The department is neutral on this                      
legislation, we don't have a real concern exempting the sport                  
officials based on the information we have received.  And it is                
noted, as you said Mr. Chairman, that all parties involved here                
should encourage the Congressional Delegation to try to get                    
legislation that would exempt nonprofits from the FUT (Federal                 
Unemployment Tax) Act.  So with that, the department does not have             
a concern with this legislation."  He added that program people                
from the department are present to answer technical questions.                 
                                                                               
CHAIRMAN ROKEBERG asked, isn't the amount of monies and the amount             
of pay so small that this could create an Administrative burden for            
the department.                                                                
                                                                               
MR. PERKINS reiterated, if this is the only employment that an                 
individual has, they have more concerns about making daily living              
payments than they do collecting unemployment insurance.  It                   
probably would be of the lower tier if they did qualify just based             
on those wages and the time period that it takes to qualify for                
unemployment benefits.                                                         
                                                                               
REPRESENTATIVE JOHN COWDERY asked what would be the cost of                    
insurance if it's required.                                                    
                                                                               
Number 0054                                                                    
                                                                               
MR. PERKINS stated, "The problem is, is that the employment tax                
liability on the nonprofits, and if they are required to pay into              
the trust fund, the concern is, is that the youth organizations ...            
and adult programs that are out there, the user fees, if you will,             
or the cost to play baseball, or hockey or those kinds of sports,              
would have to cover this unemployment tax."  He said that's not to             
say that it's a horrendous amount, but when nonprofits are trying              
to make it and provide youth activities, and trying to get by on               
the least amount of money to pay for the sports officials and keep             
the programs going, it is a large amount to them.  He noted it does            
represent quite a bit of an increase to the programs to cover that             
cost.                                                                          
                                                                               
REPRESENTATIVE COWDERY agreed.  He indicated that that's what we're            
trying to achieve and could defeat some of it if we didn't weigh               
this.                                                                          
                                                                               
MR. PERKINS said he believes Representative Cowdery's analysis is              
correct and that the fear is that some programs may end up not                 
continuing because of the tax liability on them.  He reiterated                
that it isn't a large amount, but when you put it in perspective of            
the program itself - if they're going to have to pay another $5 or             
$10 for entry fees as a participant, some parents might not be able            
to afford that.                                                                
                                                                               
REPRESENTATIVE COWDERY mentioned he has sponsored youth hockey,                
basketball and baseball teams.  He said, "It's not inexpensive for             
some parents, that have large families, to come up with the money              
but - so I think that I would be - agree that I don't think this is            
a wise decision to implement it - a requirement."                              
                                                                               
Number 0082                                                                    
                                                                               
CHAIRMAN ROKEBERG referenced a January 21, 1998, letter to Rebecca             
Gamez, Director, Employment Security Division, Department of Labor,            
from the U.S. Department of Labor.  He read, "Your state law to                
include coverage of these services, referring to the officiating               
for governmental entities and certain nonprofit organizations, must            
cover that or you face the possibility of being found out of                   
conformity with federal law.  Such a finding would mean a                      
significant loss of funds to the state and a loss of federal tax               
credits to the employers."  He asked what does that mean.                      
                                                                               
MR. PERKINS replied, "Pretty much as you stated, in that if we are             
not in compliance, when an individual files for an unemployment                
claim it is the duty of the department to find out what employers              
that individual worked for.  Then it is also our duty to make sure             
that the tax liability has been paid.  If it has not, it is our                
responsibility to make sure that it does get paid."                            
                                                                               
CHAIRMAN ROKEBERG asked, "We're talking about matched money, or                
what are we talking about dollar-wise, what are we losing."                    
                                                                               
MR. PERKINS deferred the question to Director Gamez.                           
                                                                               
Number 0096                                                                    
                                                                               
REBECCA GAMEZ, Director, Employment Security Division, Department              
of Labor, appeared before the committee on HB 484.  She pointed out            
the division is fully federally funded.  She said it would mean                
that upwards of about $17 million to $20 million would be in                   
jeopardy.  That's the entire Unemployment Insurance administrative             
funding amount, and that's what is used to operate the Unemployment            
Insurance program in the state.                                                
                                                                               
CHAIRMAN ROKEBERG commented, Mr. Perkins, the department's only                
neutral in this.  He then called on Representative Ryan.                       
                                                                               
Number 0102                                                                    
                                                                               
REPRESENTATIVE JOE RYAN stated the effective date is conditioned               
upon the federal law being changed.  He added that's a "what if                
scenario," and indicated he didn't know why the committee is                   
wasting a lot of time.  He asked the chairman if he wanted a motion            
to move HB 484.                                                                
                                                                               
CHAIRMAN ROKEBERG mentioned a number of witnesses haven't shown up.            
                                                                               
Number 0106                                                                    
                                                                               
BOB WALKER, President, Anchorage Softball Umpires' Association,                
testified via teleconference in support of HB 484.  He said, "Let              
me say this, I have a girl's (indisc.) program here in Anchorage               
that is not a funded program through the school district.  Any                 
increase whatsoever that has to deal with the administrative costs             
of my association ... will put that program in a severe handicap.              
I mean, these young ladies are doing bake sales, carwashes, their              
parents are doing all kinds of things to try to come up with the               
necessary funding for that program.  Anything that would impact                
this umpires' association would also have to be passed onto the                
user group and that in turn would cause these programs to stumble,             
and in some cases fail.  I would appreciate your consideration on              
this."                                                                         
                                                                               
MR. WALKER continued, "We're all working people of my association,             
we have regular jobs, so we submit our 1099's, we pay our taxes.               
We do this - I can almost guarantee you to the man and woman for               
the sheer enjoyment of the program.  Many of us are ex-ballplayers             
and athletes that just do this because we love to stay in the game.            
I, for example, I had my sister go through college on a fast-pitch             
scholarship.  So these are things that are important to me as an               
individual and to my organization.  We do this for the fun of it.              
No one is making any money at this.  But I've talked to the CPA                
(certified public accountant) that does the taxes for our                      
particular nonprofit association and to do the payroll, the payroll            
exemption, and all the deductions that would go with that, and then            
you'd - it's a possibility of being throwing into the federal                  
income tax realm.  We're looking at conservatively - we figure 20              
percent increase in our operating costs to do this.  Myself, and               
all the rest of my board, including the treasurer that takes care              
of most of our finances, are indeed volunteers.  None of us get                
paid for doing this.  So I'd appreciate your favorable                         
consideration in this particular bill and hopefully the                        
Congressional group in Washington, Senators Stevens and Murkowski,             
can help us get some federal legislation that will help us as                  
well."                                                                         
                                                                               
Number 0128                                                                    
                                                                               
GARY MATTHEWS, Executive Director, Alaska School Activities                    
Association, testified via teleconference in support of HB 484.  He            
said, "The Alaska School Activities Association is a private                   
nonprofit corporation that has 195 high school members in Alaska.              
We speak for those schools plus over 800 amateur sports officials              
that we license throughout Alaska.  We're speaking in favor of this            
legislation.  There are thousands of amateur sports officials in               
Alaska.  They for the most part work as a labor of love, they get              
very little compensation, and I would say nearly all of them, if               
not all - they don't rely on the money they're making from                     
officiating to provide their livelihood, they all have to have some            
other type of occupation.  They provide their own uniforms, their              
own shoes, and in many cases, their own training, they pay to be               
licensed, and they're putting out a lot of time and expenses just              
to be able to officiate."                                                      
                                                                               
MR. MATTHEWS continued, "In many of the smaller communities in the             
state, the local schools, the local high schools and the local                 
organizations find officials themselves.  They arrange with the                
officials to officiate their contests.  In a larger community,                 
there are official associations like in Anchorage and Fairbanks,               
and so forth.  They're informed just to schedule officials so that             
the schools have a satisfactory and easy way of making sure that               
people will show up to officiate their games.  If it's determined              
that these officials are covered by unemployment compensation, the             
costs to the schools will be greatly increased and I know that                 
there are many other organizations that are not schools within                 
Alaska that share that same concern.  It's crucial to the schools              
in the state to make sure this legislation is passed.  We support              
the federal legislation and we support both the Senate and House               
bill that would exempt amateur sports officials from the                       
requirements of the Unemployment Compensation Act."                            
                                                                               
CHAIRMAN ROKEBERG asked for written testimony.                                 
                                                                               
MR. MATTHEWS mentioned he had already submitted correspondence.                
                                                                               
Number 0150                                                                    
                                                                               
CHAIRMAN ROKEBERG asked Mr. Matthews, "In the high school athletic             
realm here, do the umpires you normally hire, or referees, are they            
considered not independent contractors, or is there other forms of             
compensation or (indisc.)."                                                    
                                                                               
MR. MATTHEWS replied they consider them independent contractors.               
                                                                               
Number 0153                                                                    
                                                                               
PATRICIA LILLIAN, Commissioner, Alaska Amateur Softball                        
Association, testified in support of HB 484 via teleconference.                
She said, "We sanction about a thousand teams and roughly 300                  
umpires annually.  I'm speaking in support of HB 484.  Statewide               
programs provide recreational and adult and youth softball                     
opportunities in at least 20 communities.  Within these areas, many            
of the local associations are viable partners with municipalities              
and city governments for program development and facility                      
improvements.  I believe that the failure to provide relief for the            
amateur sports officials in the areas as unemployment tax will                 
affectively increase costs for all these programs.  Youth programs             
are especially vulnerable in today's economy with school budgets               
being reduced in almost all areas."                                            
                                                                               
MS. LILLIAN continued, "In 1989, the Alaska Legislature passed a               
bill that exempted amateur sports officials from the unemployment              
taxes but they were forced to rescind this same bill in 1990 when              
it was determined by Region X that Alaska was in a noncompliance               
posture.  In 1994 the Alaska Legislature passed a bill that exempts            
amateur sports officials from Workers Compensation Insurance                   
payments.  It seems to me that the Alaska Legislature has clearly              
indicated their intent to exempt amateur sports officials from                 
these various tax kinds of situations.  I would urge you to                    
continue with this intent by adoption of HB 484."                              
                                                                               
Number 0171                                                                    
                                                                               
JOHN RENN, Secretary/Treasurer, Anchorage Football Association,                
testified in support of HB 484 via teleconference.  He said, "We               
officiate high school football in the Anchorage area and we also               
officiate youth football in Anchorage and the Mat-Su valley area.              
We are in total support of HB 484.  Our organization ... is a                  
nonprofit organization, therefore, all of our incoming fees go to              
the people who officiate the games.  The compensation of the game              
fees are relatively low and each official himself must pay for his             
own uniform, his own equipment, his own travel to and from the                 
game, must pay for his federal taxes, must pay his liability                   
insurance and all his certification fees.  So as a result, someone             
who officiates a two-hour youth game, after he pays his expenses,              
winds up with about 8 or 10 bucks in his pocket.  So our officials             
are lucky if we keep 50 percent of the fees.  Any additional costs,            
such as the unemployment insurance, or any other taxes or                      
insurance, obviously are going to have to go back to the high                  
schools or the youth activity groups we support.  As I said, we are            
in total support of the bill, 484, and I would like to thank you               
for your time in allowing me to testify."                                      
                                                                               
Number 0184                                                                    
                                                                               
JACK HEESCH, Representing Farthest North Umpire's Association, said            
he is available to answer questions.  He believes members of the               
association are on line in Fairbanks and can speak themselves.                 
                                                                               
CHAIRMAN ROKEBERG noted the monitors don't indicate a connection to            
Fairbanks.  He said, "Mr. Heesch, you've reviewed this situation,              
do you know of what do other states do in terms of this issue.                 
Have they - do you have any idea on that, or have you been able to             
research that?"                                                                
                                                                               
JACK HEESCH responded, the state he is most familiar with is                   
California.  He directed the committee's attention to the "Referee             
Magazine," which discusses a situation similar to ours.  He noted              
that California adopted similar legislation and believes they did              
it without worrying about the federal legislation.  He reiterated              
that's his understanding of what happened in California.                       
                                                                               
JACK HEESCH further explained, "The truth of the matter is,                    
nationally this is a much discussed issue both in terms of                     
unemployment compensation, worker's compensation and the federal               
income tax, along with I suppose state income tax is where they                
have it.  In most cases, organizations have chosen to treat amateur            
sports officials as independent contractors and that essentially is            
how they've been treated here in the state of Alaska for at least              
as long as I've been involved with sports here.  And it was only               
when someone actually filed a claim, that the case comes before the            
Department of Labor, and the Department of Labor of course if                  
obliged to take action on it.  Up until this time, essentially the             
organization has moved along believing that these guys and women               
are essentially independent contractors.  And that's generally how             
it's treated nationally, this is not just a local issue, it truly              
is a national issue and we are of course pressing forward with                 
Senators Murkowski and Stevens, and to the extent that we will,                
where we have national organizations, will be seeking their support            
from their delegations throughout the country.  I hope I'm                     
answering your question."                                                      
                                                                               
Number 0205                                                                    
                                                                               
CHAIRMAN ROKEBERG asked Mr. Heesch to provide the committee with               
additional information about what's happening in other states                  
before the bill goes to the floor.                                             
                                                                               
JACK HEESCH stated he could do that.                                           
                                                                               
Number 0209                                                                    
                                                                               
REPRESENTATIVE COWDERY made a motion to move HB 484 with individual            
recommendations.  He indicated it didn't have a fiscal note.                   
                                                                               
CHAIRMAN ROKEBERG asked if there were any objections,  There being             
none, HB 484 moved from the House Labor and Commerce Standing                  
Committee.                                                                     
                                                                               
CHAIRMAN ROKEBERG called a brief at ease at 3:58 p.m.                          
                                                                               
CHAIRMAN ROKEBERG called the meeting back to order at 4:00 p.m.                
                                                                               
CHAIRMAN ROKEBERG noted HB 484 didn't have a fiscal note and asked             
Mr. Perkins to provide one.                                                    
                                                                               
MR. PERKINS mentioned a zero fiscal note should have been provided.            
                                                                               
REPRESENTATIVE RYAN pointed out the fiscal note in the packet.                 
                                                                               
Number 0222                                                                    
                                                                               
REPRESENTATIVE COWDERY amended his motion to include the zero                  
fiscal note.  There being no objections HB 484 moved from the House            
Labor and Commerce Standing Committee.                                         
                                                                               
SB 334 - STATE TRAINING PROGRAMS/HUMAN RES.COUNCIL                             
                                                                               
Number 0224                                                                    
                                                                               
CHAIRMAN ROKEBERG announced CSSB 334(FIN), "An Act relating to                 
guidelines and standards for state training programs; relating to              
the Alaska Human Resource Investment Council; extending the                    
termination date of the state training and employment program; and             
providing for an effective date," is before the committee.                     
                                                                               
Number 0226                                                                    
                                                                               
SENATOR JOHN TORGERSON, Alaska State Legislature, appeared before              
the committee in support of SB 334.  He said, "It's a good bill, I             
hope you vote for it.  Mr. Chairman, the Co-Chair of Finance this              
summer created a new subcommittee of Finance.  It basically spun-              
off all the programs that had to do with job training, job                     
placements, employment placement, etcetera, and put it into one                
subcommittee.  So it's the first time that the state - or somebody             
in the state would take a look at the programs across all the                  
departmental responsibilities.  When we started this, we found that            
we had training programs in I believe nine different departments               
under nine different commissions.  In 1995 we created the Alaska               
Human Resource Investment Council, which was charged with looking              
after many of our training programs, which basically ended up being            
the federal programs and it was the thought of ... the Finance                 
Committee that we should put all the training programs in the state            
underneath the auspice of this Human Resource Investment Council so            
you have one group that does - it looks after and makes                        
recommendations."                                                              
                                                                               
SENATOR TORGERSON further explained that through this process they             
determined that some programs needed to come directly under the                
supervision of this and other programs just needed to be assessed              
from time to time to see if their programs need to be moved                    
underneath the entire performance measures and standards portion of            
the bill, or if they should be just left out there for assessment.             
He indicated there were several reasons for some of the decisions              
that were made, some of which had to do with jeopardizing federal              
funding, other programs such as the Police Academy and Fire                    
Training Academy are mostly self-sustaining and they hire and place            
their own graduates and things of that nature and the oversight                
wasn't quite as demanding as some of the other programs we have.               
                                                                               
SENATOR TORGERSON mentioned he quickly wants to walk through a few             
sections of the bill and will address a couple of the amendments               
that the department would like to make.                                        
                                                                               
Number 0245                                                                    
                                                                               
SENATOR TORGERSON pointed out the Human Resource Council existed of            
26 members.  He said, "We attempted to reduce that to 21 members by            
eliminating the five commissioners that are sitting on this and                
making those commissioners nonvoting members.  We were supplied a              
letter after my deal with the director of Human Resources - if they            
could supply a letter from the federal government saying that we               
are jeopardizing federal funds by removing these positions that I              
would be glad to offer an amendment back to put these folks back in            
as full-voting members.  They have supplied that letter but it was             
after the bill left our possession, so that would be the one                   
amendment that I would recommend that this committee make is to                
reinstate on page 1, those commissions, that would be subsection               
(2)."                                                                          
                                                                               
     The commissioners of Commerce and Economic Development,                   
     Community and Regional Affairs, Education, Health and Social              
     Services, and Labor, or each respective commissioner's                    
     designee;                                                                 
                                                                               
CHAIRMAN ROKEBERG asked him to supply a copy of that letter.                   
                                                                               
SENATOR TORGERSON said they amended the section that relates to                
compensation of board members.  This would allow non-governmental              
employees to receive per diem and travel allowances since they                 
currently aren't allowed to receive any funds and that in a way                
jeopardized private industry and private folks showing up at the               
meetings.  Especially a small business person because they would               
lose money in trying to make this committee work.  Senator                     
Torgerson reiterated that they made an amendment which allows per              
diem for those members.                                                        
                                                                               
     Sec. 44.19.622. Compensation.  Members of the Alaska Human                
     Resource Investment Council listed in or appointed under AS               
     44.19.620(a), including a designee of a member attending in               
     place of the member, serve without compensation but are                   
     entitled to per diem and travel expenses authorized by law for            
     boards and commissions under AS 39.20.180.  Nonvoting members             
     of the council appointed under AS 44.19.620(b) serve without              
     compensation and are not entitled to per diem and travel                  
     expenses.  A commissioner appointed under AS 44.19.620(c) or              
     the commissioner's designee is entitled to per diem and travel            
     expenses as a state employee.                                             
                                                                               
Number 0260                                                                    
                                                                               
SENATOR TORGERSON indicated Section 6, page 3, is one of the more              
important sections of the bill.  He said what we're asking is that             
the Human Resource Council, the chair and the vice-chair be made up            
of members that are appointed from private business and industry.              
Over a period of time, the chairman and vice-chairman and the                  
immediate past chairman would be from industry and business and not            
from, let's say a bureaucrat somewhere, it would be from the                   
private sector.                                                                
                                                                               
     Sec. 44.19.623. Officers. The Alaska Human Resources                      
     Investment Council shall elect a chair and a vice-chair from              
     among the members listed in or appointed under AS                         
     44.19.620(a)(4) [AS 44.19.620(a) WHO ARE FROM THE PRIVATE                 
     SECTOR.  THEY SHALL ALSO ELECT A VICE-CHAIR].  The chair and              
     vice-chair serve in their positions at the pleasure of the                
     council.                                                                  
                                                                               
SENATOR TORGERSON continued, "Then we go on to actually put in                 
statute four permanent standing committees for this council.  These            
standing committees came right out of their bylaws, or something               
... currently existing and we just adopted the language of their               
bylaws.  And then we said that the chairman of these standing                  
committees must be from the private sector."                                   
                                                                               
SENATOR TORGERSON referred to Section 8(c) stating the executive               
committee is made up of the three officers, the chair, the vice-               
chair and the past chair and the four chairmen of the standing                 
committees.  He said, "It is our intent that this committee - the              
Human Resource Committee -- made up of folks from the business and             
industry and private sector.  This way we're assured of that."                 
                                                                               
Number 0273                                                                    
                                                                               
SENATOR TORGERSON said, next we go on and put performance measures             
in the bill - that they must evaluate the programs.  He referred to            
page 6, line 19, subparagraph 8.  He said we call for                          
administrative costs not to exceed 15 percent, or if federal law               
has lesser cap, then it could be a lesser number.  It also calls               
for a report to the legislature and evaluation of the programs by              
the 30th day of the session and identifies ways for the agencies to            
consolidate and collaborate with each other to save costs.                     
                                                                               
     (8) adopt regulations that set standards for the percentage of            
     a grant that may be used for administrative costs; the                    
     regulations must clearly identify and distinguish between                 
     expenses that may be included in administrative costs and                 
     those that may not be included in administrative costs; the               
     percentage allowed for administrative costs may not exceed the            
     lesser of 15 percent or the amount permitted under the                    
     requirements of a federal program, if applicable;                         
                                                                               
     (9) report annually to the legislature, by the 30th day of the            
     regular legislative session, on the performance and evaluation            
     of training programs in the state subject to review under (f)             
     of this section; and                                                      
                                                                               
     (10) identify ways for agencies operating programs subject to             
     oversight by the council to share resources, instructors, and             
     curricula through collaboration with other public and private             
     entities to increase training opportunities and reduce costs;             
                                                                               
SENATOR TORGERSON explained Section 10 [page 7, beginning on line              
3].  He explained that it provides for the oversight of the council            
itself and adopts measures that they are to use to evaluate the                
programs.                                                                      
                                                                               
Number 0280                                                                    
                                                                               
SENATOR TORGERSON said, "Page 8, subparagraph (f), starting on line            
9 are the programs we are asking to be included underneath the                 
direct oversight of the AHRIC (Alaska Human Resource Investment                
Council committee) - I'll let you read them for yourself.  These,              
we feel are most directly related in that the Human Resource                   
Council should look at these programs and use the performance                  
measures that are laid out earlier in the bill to make sure that               
they (indisc.) in those programs."                                             
                                                                               
SENATOR TORGERSON referred to page 9, Section (G).  He said we talk            
about the other programs that we wish the council to assess the                
programs and make recommendations to the legislature and the                   
governor as to whether or not they'd have these programs move into             
subsection (f), performance in other measures.  Senator Torgerson              
said, "And again ... most of these are programs that AHRIC should              
take a look at but a lot of them are self-directed such as the                 
Police Academy.  And again, you can read that list for yourself.               
Some of them are not very big programs as far as money is concerned            
and others have their own direction.  And a couple of them are                 
federal programs, which did indeed -- if we were to provide                    
oversight and caps as we wanted to do, would jeopardize our federal            
funding for it."                                                               
                                                                               
SENATOR TORGERSON referred to subsection (h), page 10.  He said,               
"The University of Alaska asked to come underneath this program so             
we did include them in here - just asking that they would file a               
report using the same measures that are in this bill for their                 
training programs. ... The university would then supply us with a              
list of how they were measuring-up with their training programs as             
to what we're trying to do with this bill."                                    
                                                                               
Number 0294                                                                    
                                                                               
SENATOR TORGERSON referred to the handouts provided by the                     
Administration.  He said he reviewed the amendments and believes               
the one amendment that would replace the commissioners needs to be             
adopted so we don't jeopardize funding of the JTPA (Job Training               
Partnership Act) program and other federal programs.                           
                                                                               
SENATOR TORGERSON said he reviewed the amendments with his staff               
and the staff of Senator Pearce and agreed with the first one,                 
which related to the commissioners, and disagreed with the rest as             
not being something we need to worry about.  Senator Torgerson                 
referred to the last section regarding RSA's (reimbursable services            
agreement) and interagency agreements.  He said, "What we did as a             
funding source for this bill is put in that they may RSA money from            
the departments - that AHRIC's responsible for oversight of .75                
percent, or three-quarters of 1 percent fee would go to AHRIC for              
the payment for their duties for the oversight and that generates              
somewhere around $600,000. ... OMB (Office of Management and                   
Budget) is currently working with Senator Pearce's staff and ours              
on what this number might be.  And it maybe that we have to amend              
that up to 1 percent, which they're talking about here, but I have             
not seen enough information to suggest that that amendment take                
place at this time so I'm not recommending that that happen."                  
                                                                               
SENATOR TORGERSON referred to Section 9, Additional Programs for               
Evaluation.  He said, "The other amendments that I would like to               
mention particularly are from the Department of Education.  I did              
supply the committee a memo on those three amendments - I believe              
they had a separate letter somewhere. ... It starts with Section               
9(f)(3) the department non public schools function, and then it                
goes onto Section 10(g)(7) and (h). ... The major area of                      
contention was that we are jeopardizing federal funding by having              
the Vocational Rehabilitation under the oversight of the AHRIC                 
committee and that's just not true.  It was under jeopardy when we             
had it under section (f), and they did have a letter that we                   
required them to produce under section (f) - and after we read the             
letter we agreed that they could not qualify or it could jeopardize            
federal funding if we added additional performance measures so we              
moved them out of there under the section that this calls for an               
assessment and evaluation by the AHRIC committee. ... That's no                
more than you and I getting public information and looking at it.              
This doesn't jeopardize any federal law.  It may if ...                        
recommendations come out of there, later on, but just the AHRIC                
committee looking at it, it can't jeopardize anything.                         
                                                                               
SENATOR TORGERSON concluded it may seem like a complicated bill,               
but the intent is really to bring all these training programs under            
one umbrella, to get somebody to start looking after these things,             
make this council run by private industry.  They're hiring the                 
people, so we wanted them to provide the oversight for that                    
training and that's really the intent of the bill, and it makes                
itself pay for itself by assessing the programs at (indisc.) fee.              
                                                                               
Number 0334                                                                    
                                                                               
REPRESENTATIVE RYAN referred to page 3, Section 6, "shall elect a              
chair and a vice-chair from among the members listed in or                     
appointed under AS 44.19.620(a) who are from the private sector..."            
He asked Senator Torgerson if he had an objection to one of the                
members being from industry and the other general business so you              
won't have both members from the same business.                                
                                                                               
SENATOR TORGERSON directed the members to page 2, subparagraph (4).            
He noted seats are not stipulated in this bill - like oil company              
versus some other company.  If it's the fear of the committee that             
it could be overloaded in one direction or the other, he wouldn't              
mind it being more directed.  He said it might narrow the pool down            
to where it would be a little difficult, but we'd have to look at              
that.                                                                          
                                                                               
     (4) four representatives of business and industry, with at                
     least one representative from the private industry councils               
     appointed under 29 U.S.C.1512 and subject to reconstitution               
     under 29 U.S.C. 1515;                                                     
                                                                               
REPRESENTATIVE RYAN explained it was brought to his attention                  
because someone had asked him to make sure the composition of the              
board was more uniform and everybody's interest was represented.               
He referred to page 10, line 28 regarding the University of Alaska.            
He asked how much will that cost and where will the funds come                 
from.                                                                          
                                                                               
Number 0349                                                                    
                                                                               
SENATOR TORGERSON replied we're actually assuming the university is            
going to do this out of the goodness of their heart, we're not                 
paying them to do this.  He further stated, "Wendy and folks from              
the university - Ms. Redman came to us and said basically that they            
like the performance measures.  They are the recipients of some of             
this money for training - this total budget is $93.8 million if you            
throw it all in the hat, we're not talking just nickel and dime                
stuff.  The university, by direct grants only, gets a couple                   
million dollars of this, so they're a small player that way.  But              
a lot of people that receive direct, like JTPA where they write the            
individual check, they'll end up somewhere in the system.  It's                
just felt important that - part of this is tracking that we're                 
going to start doing.  We're going to make a deal with the                     
Department of Labor to start tracking these folks a year after                 
they're finished working so we can see what job their doing, how               
much money they're making and other things which have been really              
lacking in a lot of these other things.  And the university, I                 
believe that some of this stuff would be beneficial to them also.              
So they wanted to evaluate this - but it wasn't our intent to give             
them any big chunk of money to do that."                                       
                                                                               
CHAIRMAN ROKEBERG asked for clarification of the total scope of                
funding.  He also asked if that includes federal and state funds.              
                                                                               
SENATOR TORGERSON reiterated it's $93.8 million from all sources.              
                                                                               
CHAIRMAN ROKEBERG asked if that includes sections (f) and (g).                 
                                                                               
SENATOR TORGERSON replied yes.                                                 
                                                                               
CHAIRMAN ROKEBERG asked if also included section (h), the                      
university.                                                                    
                                                                               
Number 0362                                                                    
                                                                               
SENATOR TORGERSON replied, "Actually no - not the university.  It              
would as far as the university might be the recipient of some of               
the grant money directly, but it's not to show a double-dip.                   
They're more of a provider and so we're not counting the schools               
that actually receive the money, this is the program that disburse             
the money or grant the money."                                                 
                                                                               
CHAIRMAN ROKEBERG noted for the record that Representatives Hudson             
and Brice are present.                                                         
                                                                               
Number 0367                                                                    
                                                                               
SENATOR TORGERSON further commented on Representative Ryan's                   
question regarding targeting.  He said, "In a way I'd like to see              
this try to work with directing this right now to where we are                 
instead of directing it farther into seats.  But, again, if it's               
the will of the committee to do that, I won't try to block it but              
this is such an improvement of what we were.  And, I also had a lot            
of complaints, of several people in my district that served on the             
JTPA Board, when they get together - there wasn't the right people             
making the decisions and it's the hope that by getting business and            
industry actually running it and private industry being the rest of            
the executive committee, that it'll change the philosophy, it will             
take time to do that.  And I'm not sure that actually going in and             
targeting the seats to certain industry, more so than this, would              
target it any better.  But I'll leave that up to your discretion."             
                                                                               
SENATOR TORGERSON indicated that he had to return to the Senate                
Finance Committee and noted Krystal Murphy and Krag Johnsen will be            
able to answer questions.                                                      
                                                                               
CHAIRMAN ROKEBERG mentioned that he has a feeling that is going to             
be testimony that Senator Torgerson may want to rebut later.  He               
said he thinks one of the most controversial parts of this is the              
provision for the overhead, the .75 percent grants and the fact                
that there may be some problems with the 20 percent as the                     
allocated area.                                                                
                                                                               
SENATOR TORGERSON indicated he wasn't sure of the 20 percent.                  
                                                                               
CHAIRMAN ROKEBERG stated there is a cap.                                       
                                                                               
SENATOR TORGERSON commented 15 percent cap.                                    
                                                                               
CHAIRMAN ROKEBERG indicated there's a feeling that, with the added             
problems in terms of the assessment and evaluation standards, that             
this will increase the overhead and also duplicate in a sense some             
of the federal requirements for evaluation and assessment that                 
occur now but they won't necessarily be parallel, therefore raises             
the cost of the burden up to as much as 20 percent from 15 percent.            
                                                                               
Number 0389                                                                    
                                                                               
SENATOR TORGERSON stated, "If this raises administrative costs, we             
better find a whole entire resource investment council, that's how             
I'd look at it there's no way this can raise costs.  There was some            
criticism that said the federal government says we can spend 20 and            
the state saying you can spend 15, but there's no where in federal             
law does it say you must spend 20 percent on admin.  It says not to            
exceed, and words of that effect, it doesn't say you must spend 20             
percent.  I don't know of any federal law that tells you your                  
administrations got to be at a certain level, it just tells you,               
you can't exceed that.  As far as the 1 percent versus 3/4 of 1                
percent, that's really not a controversy, we don't - AHRIC has no              
funding sources.  This human resource's council only has the source            
that we give it and what we're asking is that it be an assessment              
on the programs.  So, if through fiscal notes, negotiations, and               
whatever else, we determine that 3/4 of 1 percent is not enough,               
then it would be my intent to amend that figure to the right                   
amount."                                                                       
                                                                               
SENATOR TORGERSON continued, "We want them to go out and perform               
these measures, we want them to assess these programs, and we want             
them to come back with their recommendations on how to make this               
thing work and that's going to cost some money.  We want this                  
tracked through the Department of Labor, and we want - the                     
Department of Labor doesn't do that for free, they have time and               
computers, and everything.  We want to not short-fund anybody we               
want to pay for that.  But instead of coming in with a general fund            
appropriation for that, we're assessing the programs for which in              
some degree should lesson the administrative burden of these other             
programs once they start relying upon the AHRIC committee and                  
executive committee and Mr. Andrews himself to start proving                   
oversight for these.  As you might guess, that some of these                   
programs don't want to be looked at.  So you have that entity too,             
and you have that part of the - whatever that mixes in with this."             
                                                                               
TAPE 98-47, SIDE B                                                             
Number 0001                                                                    
                                                                               
CHAIRMAN ROKEBERG "...this legislature about results-based                     
budgeting and having performance and standards, of which are                   
measurable."                                                                   
                                                                               
SENATOR TORGERSON replied, "Good point.  That's actually what                  
caused us to go this far - as we were working through performance-             
based budgeting.  We have still a lawsuit out with our intent                  
language in the legislature, when we make an appropriation we put              
an intent on there that it would be, if something happened, that               
you don't spend the money until this particular legislative intent             
is carried out.  In recent Administrations, as well as this one,               
the intent language had been vetoed and they kept the money.  So,              
my opinion has been a lot of this performance-based  things we're              
doing doesn't get us anywhere, not if you can veto out the                     
performance-based and keep the money.  By putting this in statute,             
it's like etching it in stone, they will follow these guidelines               
and it is a direct result of the performance-based.  But again,                
because of this, it goes through so many departments and so many               
programs, it makes it easier to do this all by legislation instead             
of what we were doing with performance-based."                                 
                                                                               
CHAIRMAN ROKEBERG asked if "administrative expenses" should be                 
defined, or did the Senate Finance Committee take that issue up.               
                                                                               
Number 0013                                                                    
                                                                               
SENATOR TORGERSON indicated the Senate Finance Committee looked at             
it.  He said he thinks they asked the council to define it and                 
asked it to be uniform across programs.  He referred to page 6,                
line 19.                                                                       
                                                                               
     (8) adopt regulations that set standards for the percentage of            
     a grant that may be used for administrative costs; the                    
     regulations must clearly identify and distinguish between                 
     expenses that may be included in administrative costs and                 
     those that may not be included in administrative costs;                   
                                                                               
SENATOR TORGERSON stated, "There are a lot of programs that we're              
talking about. ... About 40, so you are going to have a substantial            
difference in how these 40 programs look at each other.  But,                  
again, it's the intent to let AHRIC - the executive director and               
committee look at some kind of uniform rule across all of these                
programs, keeping in mind that some they won't be able to because              
of the federal guidelines to them, but that's why we left if pretty            
open.  So I don't think that there's any criticism due because of              
the language we have in defining administration."                              
                                                                               
CHAIRMAN ROKEBERG asked, "On the section (g) groups, where you have            
the assessment, no funding or transfer of any of those program                 
funds into the council here to undertake the assessments, so how do            
you perceive the scope of that assessment and the funding of it."              
                                                                               
SENATOR TORGERSON stated, "We actually started out with this                   
particular segment, paying a little bit to the AHRIC committee                 
also.  It's envisioned that most of these will be a one-time                   
assessment, and we envisioned that this will come through just a               
fiscal note that we get from them to cover that.  I believe it was             
... included in the fiscal note as a $40,000. ...  Many of these,              
as I said before, take the Correctional Academy or the Police                  
Academy.  I would doubt very seriously if the AHRIC committee would            
even visit that program.  I would guess they'll take a look at                 
their annual report, make a report similar - something saying that             
they have a 99 percent hire factor.  They basically interview and              
the people in there have a high success rate because they train                
their own people, and on, and on, and on, and there really isn't a             
need for oversight.  And once they do that, there isn't a need to              
go back and do that every year, so I would imagine that that would             
happen."                                                                       
                                                                               
Number 0042                                                                    
                                                                               
REPRESENTATIVE RYAN mentioned a concern that was brought to his                
attention.  He said you have a maximum of two meetings a year.                 
                                                                               
SENATOR TORGERSON replied yes.                                                 
                                                                               
REPRESENTATIVE RYAN said they wondered if that could be change to              
a minimum.                                                                     
                                                                               
SENATOR TORGERSON mentioned that's been brought up.  He said,                  
"Actually the entire council's 26 members, and when they get                   
together as 26, they don't get anything done anyway.  We did not               
restrict the subcommittee's meeting - or the amount of times the               
subcommittee could meet, or the executive committee.  It's the                 
intent that this large group get together twice a year, set the                
policy for the council and then they can adjust that policy at                 
their next meeting which is every 6 months.  I guess there might be            
some criticism there, right now ... this new program is being                  
thought about - that maybe they should meet a little bit more -                
with the standards that we're trying put on them and the new                   
direction, they might take more direction of that whole council.               
But even that, after sitting through a meeting, I would say that               
they'd be better off meeting once a year."                                     
                                                                               
Number 0055                                                                    
                                                                               
REPRESENTATIVE BILL HUDSON referred to the amendments that Senator             
Torgerson exclusively supported.  He asked if the Senator would                
like the committee to offer those amendments.                                  
                                                                               
CHAIRMAN ROKEBERG noted Senator Torgerson supported only one.  He              
said he would like to take more testimony.                                     
                                                                               
SENATOR TORGERSON noted the amendment he supports add the                      
commissioners back in.                                                         
                                                                               
REPRESENTATIVE HUDSON implied that would be two.  He referred to               
Section 1, page 1, line 9, 21 members to 26.  Representative Hudson            
said, "I thought I heard you say you wanted to boost that back up              
because of the information you'd received."                                    
                                                                               
SENATOR TORGERSON replied yes.                                                 
                                                                               
REPRESENTATIVE HUDSON referred to the first amendment.                         
                                                                               
SENATOR TORGERSON said that's the same thing.  He referred to page             
1, line 11, the section that is being deleted, and then renumber               
the sections.  He also made reference to the letter stipulating                
that we are jeopardizing federal funds.                                        
                                                                               
SENATOR TORGERSON commented the committee has received the letter.             
                                                                               
Number 0082                                                                    
                                                                               
MIKE ANDREWS, Executive Director, Alaska Human Resource Investment             
Council, appeared before the committee to testify on SB 334.  He               
said, "We've worked very closely with Senators Torgerson and Pearce            
and with the Senate Finance Subcommittee for Human Resources and               
the Senate Finance Committee and all of our program partners to                
work on this legislation.  Certainly we were quite surprised at the            
width and breadth of it ... we have made some improvements and I'd             
like to have the opportunity to talk about some more ways to                   
improved the program.  We have the ability to have 26 members,                 
we're at about 21 because we use cross-representation.  And on that            
committee we have the lieutenant governor, five commissioners and              
50 percent of our council are from the private sector.  And I just             
wanted to clear this up, we have private sector representatives,               
and inside of that there are four specific representatives from                
business and industry.  The private sector really means                        
'nongovernment employee' on there, so we are mostly a volunteer                
group that helps assist the State in coordinating and planning the             
human resource investment system.  Right now there are 17 programs             
under the Alaska Human Resource Investment Council.  We created a              
consolidation report on the human resource programs and we've                  
listed that at a $64 million investment - primarily 80 percent                 
federal, 20 percent state.  This bill would add another 23 programs            
in two different sections of the bill and that would bring it up to            
the Senator's number of around $93 million."                                   
                                                                               
MR. ANDREWS stated, "And certainly the council agrees with the                 
intent that there needs to be improved coordination, cooperation,              
collaboration and maybe consolidation between some of these                    
programs and that's sort of our charge to look at.  The reason I               
made this list for you, and I do have to make a correction to it,              
in the middle section (f), it doesn't include the 'Alaska                      
Professional Development Institute'...  What this bill asks us to              
do is take a look at 23 more programs, four of those would be                  
inserted into an evaluation section which means we would apply the             
accountability measures and the five performance measures to those             
programs and do an evaluation."                                                
                                                                               
MR. ANDREWS continued, "In section (g), which is really the                    
assessment, I think the Senator had it pretty correctly.  Our view             
is to sort of take a look, as others have, as what is the mission,             
who you serve, what's your funding, what's your legal authority,               
who to report to, and how do you work with other programs.  So we              
would be charged under this legislation to present that report as              
part of our annual report in the first 30 days of each session so              
that legislators could look at both program performance and any                
other programs that need to possibly come under oversight.  And                
that would provide guidance to the legislature in terms of budget              
issues and program improvements.  It's sort of how the bill works."            
                                                                               
MR. ANDREWS continued, "I would like to take the opportunity to                
express on behalf of the council that we have met and we have a                
consensus opinion.  Right now our view is, is that there are some              
good things in this legislation and there's some things that are               
not so good and we would like to have an opportunity to try to fix             
some of those if we could.  I don't know if this will work for you,            
but we'll just take a look at the sheet that follows the listing of            
the programs.  And again, I just wanted to give you a picture of               
how wide this bill reaches.  But if we could look through the                  
suggestions, ... we have settled the issue as commissioners as                 
nonvoting members, Senate Finance has agreed, and you've accepted              
that today.  We appreciate that that any member that asks to sit on            
one of these councils should have the right to vote, and federal               
authority says that they should."                                              
                                                                               
MR. ANDREWS concluded, "The council has many issues and part of the            
concern is we have been working for two years, we've been operating            
for two years, we've been meeting between four and five times a                
year because this is a very complex and a very rapidly moving                  
environment when you talk about workforce development.  You know we            
have welfare reform now, we're trying to implement one-stop job                
centers, we're trying to implement performance measures on the                 
basic programs.  So, the council feels that it must have the                   
ability to meet as necessary and primarily because it is a point of            
contact for business and industry and community-based groups to                
come and speak with council members, and to learn about the                    
programs that we're looking at, but also to bring their needs to               
us.  And we feel that limiting us to just two meetings a year might            
restrict the ability of the public to meet with us and for us to               
stay on top of these ever changing issues.  Right now Congress is              
looking at federal block grants, consolidating over 100 employment             
job training programs into one block grant to states and that would            
mean that everything would be consolidated and I think the council,            
facing that possibility, would feel very uncomfortable only meeting            
twice a year trying to understand our revolution in job training               
programs."                                                                     
                                                                               
Number 0132                                                                    
                                                                               
CHAIRMAN ROKEBERG asked how often does the council meet.                       
                                                                               
MR. ANDREWS replied the council currently meets about four to five             
times a year.  He indicated that it's within their budget, but the             
council calls meetings as necessary and they have called these                 
meetings to stay on top of the issues.                                         
                                                                               
Number 0134                                                                    
                                                                               
REPRESENTATIVE TOM BRICE asked what is the cost per meeting.                   
                                                                               
MR. ANDREWS pointed out most of the meetings are held in Anchorage,            
it's running approximately $3,000 a meeting, when a meeting was                
held in Juneau, it cost $5,000.  He indicated meetings aren't a                
budget-buster for them.  Inside of that, the council has wrestled              
for some time with the issue of what's 'private sector' and what's             
'business and industry.'  And of course the (indisc.) allows that              
the chair will come from the private sector.  Mr. Andrews said,                
"And so we've wrestled with this as a council, in terms of 'should             
we elect someone from specifically business and industries, or can             
it be just from private sector,' and we have had some controversy              
on the council.  The council feels that we need business and                   
industry leadership, but it's unfair to those other private sector             
members who may be committed, have the talent, have the ability and            
we think it would be more preferable if you said the chair or vice             
chair would be from business and industry and the other seat would             
be from private sector.  It's the will of the legislature on that,             
but that's our opinion."                                                       
                                                                               
Number 0149                                                                    
                                                                               
MR. ANDREWS directed the members to page 4, Section 7(b), Executive            
& Standing Committees.  He said, "We appreciate that the Senators              
have looked at our bylaws and found them to be very descriptive and            
fitting toward what the intent is.  And we feel good about that                
too, but in this dynamic changing environment it's very difficult              
when you put a committee's title and all of its duties in statute.             
That removes the flexibility of a board to really operate and I                
would say that we don't know of any other board, we've not                     
researched this, but we don't know of any other board in the state             
that has restrictions on how many times they can meet, who can be              
its officers, and that its committees will do just these set                   
things.  Now we agree, and this - we've only asked for some                    
changes, that those duties and responsibilities should be kept in              
the bill.  We intend to do those things, but we would like to say,             
let's have four standing committees, but we don't want to name                 
those because - let the council work that out among itself.  And so            
we would like to see you consider that as well.  But we don't                  
oppose at all handling those responsibilities that they've                     
outlined."                                                                     
                                                                               
REPRESENTATIVE RYAN said he is concerned with the composition of               
the committees if they're not composed of council members.  He                 
commented that $93 million is a lot of money, and indicated certain            
groups gravitate toward those kinds of monies, government agencies,            
certain special interest groups, and so forth, and would have their            
own agenda.  Perhaps everything won't be the way it would have been            
had the council members themselves, who would be under more public             
scrutiny, doing the actual work.  Representative Ryan noted he                 
would like to make sure there is oversight.                                    
                                                                               
Number 0170                                                                    
                                                                               
MR. ANDREWS explained that it doesn't change who sits on the                   
committees and noted the committee members are members of the                  
council.  He stressed that they need the flexibility to name the               
name of the committee and redirect the committee now and then so               
that they can improve and this makes it a little bit too concrete              
for an operating council.  He reiterated that they don't see any               
corporate board operating this way and hoped that they would have              
that flexibility.                                                              
                                                                               
CHAIRMAN ROKEBERG said, "In your list of amendments, you have this             
reflects current law, is this particular subsection 7(b) - as found            
in your recommended amendment..."                                              
                                                                               
MR. ANDREWS interjected that current law allows them to have four              
standing committees and the chair of the council to appoint chairs             
to those committees and to operate and create bylaws, and they've              
done that.  He said this new legislation basically takes what                  
they've done in their bylaws and puts it into the legislation.                 
                                                                               
CHAIRMAN ROKEBERG asked are you enabled by your bylaws or any other            
authorization to have non-council members serve on the special or              
subcommittees.                                                                 
                                                                               
Number 0182                                                                    
                                                                               
MR. ANDREWS replied that they are, there is a provision in this                
legislation and existing, where they are allowed to, when                      
necessary, to create ad-hoc or special committees to involve                   
others.  He commented that's not the issue though.                             
                                                                               
CHAIRMAN ROKEBERG commented that we're talking about the four                  
standing committees in terms of the bill.                                      
                                                                               
MR. ANDREWS responded those are council members that already sit.              
He reiterated, when the chair appoints those committees they would             
like to have the flexibility to say what those committees' names               
are and what they're going to do - the new legislation lists that              
in concrete.  And, what they have worked out with Senators Pearce              
and Torgerson's office, is the council has no objection to the list            
of responsibilities.  Mr. Andrews said we fell that is our                     
responsibility and those were set in terms of their discussions and            
their goals.  It's just the council thinks it's a little much to               
have committees named in legislation.                                          
                                                                               
Number 0192                                                                    
                                                                               
MR. ANDREWS indicated there is a concern with the administrative               
costs.  He said, "What programs reported to Senate Finance, was                
that on the state funded level, they could meet the 15 percent cap             
as long as there were some opportunities to determine what                     
administrative costs are.  And the problem with all these programs,            
there are no common definitions, and no common data elements, and              
that's one of the jobs of this council, so we have said that we                
need to regulatory flexibility to work with programs because the               
federal programs will list very specifically what can be spent on              
administration and they will allow, in some cases 20 percent and in            
some cases 5 percent.  And what we're asking here is that you just             
remove the word 'the lesser of' because the federal programs that              
allow, let's say the Joint Training Partnership Act job training               
programs to exist, have already said that they can spend that money            
on those issues that they define as administration.  Where this                
creates a problem is at the local level where people receive                   
services through the service-delivery area and private industry                
councils.  As the money passes through the state system, less money            
will go to the customer - to serve the customer through the private            
industry councils.  And so what our private industry councils and              
our service providers need is the flexibility to at least spend the            
federal money in the way the federal authorities have said that                
they can spend it in.  And as you can see, as they begin to assist             
us with performance measures and reporting out, there will be some             
additional costs, and we just want to hold those programs.  The                
problem is because they have agreed to work with us on these                   
performance measures and be held accountable."                                 
                                                                               
Number 0210                                                                    
                                                                               
REPRESENTATIVE BRICE asked, "What kind of workload increase - is it            
expected, are these folks expected to carry out to evaluate the                
attainment of these standards and the creation of these standards?"            
                                                                               
MR. ANDREWS responded, "In general, because were dealing with so               
many different programs, the federal (indisc.) of some of these                
programs have already given a list of things that are required.                
Some of the accountability and performance measures that we're                 
including are not required at this time.  So for them to comply                
they would have to be able to gather that data from the clients and            
from the program providers.  But what we've done for efficiency                
here is try to centralize that data through research and analysis              
and hold that cost down.  It is very hard for programs to determine            
what these costs might be until we really see which programs are in            
the evaluation side and which are in the assessment side."                     
                                                                               
REPRESENTATIVE BRICE reiterated, for some of these programs, where             
there are no evaluation standards that are required by federal law,            
we're going to have to make up those standards and develop that.               
                                                                               
MR. ANDREWS replied that's correct, however, many of these programs            
have been training this way and some have them already.  He said,              
"We just have to see how this all sifts out before some programs               
know what those costs are.  We don't think it's a budget-buster,               
but the programs have a different opinion."                                    
                                                                               
REPRESENTATIVE HUDSON asked what is the highest level of                       
administrative costs.                                                          
                                                                               
Number 0225                                                                    
                                                                               
MR. ANDREWS said he thinks the highest for federal programs is                 
approximately 20 percent.                                                      
                                                                               
REPRESENTATIVE HUDSON asked, is it up to 20 percent, is that sort              
of a norm for programs.                                                        
                                                                               
MR. ANDREWS said he can't speak specifically for programs.  He                 
indicated federal JTPA programs do allow up to 20 percent for that.            
Adult Basic Education is at 5 percent, so some programs are capped             
lower.  He reiterated that we should allow whatever the federal cap            
is because the federal government is paying for that to be allowed.            
                                                                               
CHAIRMAN ROKEBERG referred to a letter from the Mat-Su Private                 
Industry Council.  He asked Mr. Andrews to comment on the mandate              
or the allowance by the Congress in 1992.                                      
                                                                               
     1992 congress substantially amended the JTPA requiring                    
     additional monitoring and performance standards in recognition            
     of additional administrative costs associated with this                   
     monitoring they raised the administration cost limit from 15              
     to 20 percent.  My experience is that with the programs is                
     that 20 percent so much more realistic than 15.                           
                                                                               
MR. ANDREWS stated the Job Training Partnership Act has been                   
reformed a couple of times and primarily because these are                     
investments.  In the legislation from Congress, these are                      
workforces - human investments, they have said we need to have an              
idea of what our performance is and eventually our return on                   
investments.  In 1992 they asked the Job Training Partnership Act              
programs to gather more information in terms of services that folks            
have received - wages coming in - wages when they're hired after               
the training treatment, any gains in skills or knowledge or                    
certifications, how are they doing six months later so you could               
see what the outcomes were.  That's part of the reason why JTPA was            
amended to allow these programs to operate.                                    
                                                                               
MR. ANDREWS stated that the other issue is ... the money comes from            
the federal government and passes through a state agency, and then             
is passed down to the local level.  By the time it's passed down to            
the local level it's less money for programs and so they have                  
allowed at the local level, a little bit more for administration so            
that you can operate.  He said, "Under this legislation, in my                 
view, is that, for instance the Fairbanks Area Private Industry                
Council will not be able to operate because if you cap federal                 
funds, they just won't have the money to go out and do the services            
that they provide in their community.  So this is why it's a real              
concern.  No one's resisting the 15 percent on state funding and               
we're going to be watching that.  If this bill passes, we'll                   
certainly be watching it.  But the issue at the local level, is                
this is really going to constrict those federal programs.  I think             
it's simple to take out the word 'lesser'.  Everyone will try to               
achieve maximum efficiency on administration."                                 
                                                                               
Number 0254                                                                    
                                                                               
CHAIRMAN ROKEBERG asked Mr. Andrews if he was suggesting that 15               
percent also applies to federal funding.                                       
                                                                               
MR. ANDREWS stated it's the lesser of it.  He said he thinks the               
intent was that - they recognized that some programs are held at a             
lower level and didn't want to see that jump up.  Mr. Andrews said,            
"And we can appreciate that.  What we're concerned about are the               
ones that are allowed more - that is about $9 million that comes               
before the JTPA program in the state.  When you cut that                       
administrative opportunity down at the local level it hurts them.              
So if you took out the word lesser, we meet the federal standards              
but we still hold state funds at the cap and the 5 percent the ABE             
(Adult Basic Education) or Voc. Ed. (vocational education) is                  
already allowed - is all they're allowed."                                     
                                                                               
REPRESENTATIVE RYAN indicated they did the same thing in tracking              
10 to 12 years ago.  When he was on the Prime Ministry Council, it             
was a new thing, they were going to find out the results and so                
forth.  He noted the Senator said he wants these evaluated and it              
would be a one-time cost.  He asked is this a periodic evaluation,             
had the council looked at that.                                                
                                                                               
MR. ANDREWS replied the JTPA programs, from the time Representative            
Ryan sat the council up to today, have always tracked those                    
performance measures.  They have always been mandated by Congress              
to gather information.  They've been very professional at it and               
know how to do that so it's not a new thing, it's just that they               
are trying to say - there's some rethinking here that perhaps some             
of the performance measures didn't capture the right information               
that we need to find out what the value is on these programs on the            
public investment.                                                             
                                                                               
MR. ANDREWS said evaluating programs to performance measures and               
accountability measures do cost some money.  The assessment side of            
the isle, which in their view is more like an evaluation light,                
you're really trying to find out basic research information is less            
expensive.  In their fiscal note, based on the current legislation,            
they thought that assessment for the 19 programs would be                      
approximately $50,000.  Mr. Andrews said they think it could be                
less if they could work out some of the things in SB 334. ... The              
value of that is, is that you would have the information during the            
session to determine whether you want to do anything with those                
additional programs.                                                           
                                                                               
Number 0276                                                                    
                                                                               
REPRESENTATIVE RYAN asked Mr. Andrews if he has prepared a "what               
is" if he were to get his amendments (indisc.) to lower the fiscal             
note.                                                                          
                                                                               
MR. ANDREWS replied no, but they are currently working on that with            
programs and the Office of Management and Budget because they do               
have a lot of concerns with the assessment fee scenario but they do            
appreciate the fact that Senate Finance wants to make sure the                 
council and the Department of Labor are paid adequately to do the              
work and the evaluation.  So they are trying to work this out                  
internally and hopefully will have it solved by the time the bill              
reaches the House Finance Standing Committee.                                  
                                                                               
CHAIRMAN ROKEBERG referred to the program's list.  He asked if the             
list was complete.                                                             
                                                                               
MR. ANDREWS replied they are for the most part a listing of                    
programs that they already provide oversight for.  He said, "There             
are, I believe five additional programs in there.  What gets a                 
little confusing is, for instance in section (f), ... Alaska Career            
Information System, that's really not a program, that's information            
for career councilors and for students and for adults to choose                
careers.  But it's reflected back over on the first column under               
the Alaska Occupation Information Coordinating Council.  We already            
provide oversight to this program, but I think it was the intent of            
Senate Finance to make sure that there was more in-depth monitoring            
of the program.  Again, it's more of an information source and it's            
already under our oversight.  The one thing again that I didn't                
list there in the new bill is the Alaska Professional Development              
Institute which is really a professional development for existing              
workers within the state system, etcetera."                                    
                                                                               
CHAIRMAN ROKEBERG asked Mr. Andrews if he wanted to go over the                
Department of Education and the rest of the amendments on the list.            
                                                                               
Number 0294                                                                    
                                                                               
MR. ANDREWS stated they support the Department of Education in                 
their amendments that he has listed.  However, there is a great                
concern that they don't mix apples and oranges, AHRIC does not                 
provide oversight to institutions such as the University of Alaska             
- there's a Board of Regents, to the state school system - there's             
a state Board of Education - and our local school boards.  He said             
they want to make it clear that what they are primarily focusing on            
is where these job training related dollars are spent on clients.              
He said that's what they want to be evaluating.  And some of those             
services are provided by Alaska Vocational Technical Center and the            
Kotzebue Technical Center.  He added that this brings clarification            
that helps keep the relationship straight between the state's                  
educational system and what AHRIC's oversight responsibilities are.            
                                                                               
               Amendments for Senate Bill 334                                  
                                                                               
Commissioners as Non-voting Members:                                           
Section 1.(a)(2) do not delete. Refers to Commissioners as members             
Section 2.(c) delete. Refers to Commissioners as not voting members            
Section 5. Line 16. Delete reference to non-voting members                     
                                                                               
Council Issues:                                                                
Election of Officers                                                           
Section 6. Delete whole section. Refers to council officers elected            
from business & industry representative only. The AHRIC recommends             
that the language state: The Chair or Vice-Chair must be elected               
from Business & Industry representatives under AS44.19.620(a)(4).              
                                                                               
Meetings:                                                                      
Section 7. Delete section (a). The council recommends not limiting             
council to only 2 meetings annually.                                           
                                                                               
Executive Standing Committees:                                                 
Section 7(b) The council shall establish an executive committee and            
four permanent standing committees.  The council may establish                 
additional standing committees and special committees or                       
subcommittees, not necessarily consisting of council members, to               
advise and assist the council in carrying out its functions. Delete            
all other language. (This reflects current law)                                
                                                                               
Section 8. Delete line 22(d) "The assessment and evaluation" ...               
New language: Committees shall                                                 
Delete (d)(4), (e),                                                            
(e)(3) Delete "work with all other committees on"... Add "Develop              
a....."                                                                        
(e)(4) Delete                                                                  
(f) Delete, (f)(3), (g)                                                        
                                                                               
This allows 4 standing committees with no name, but assures they               
perform the duties lined out.  This holds the council responsible              
for assuring compliance, but allow flexibility in committee design             
to be more effective.                                                          
                                                                               
Administrative Costs:                                                          
Section 9. (b)(8). Line 23. Delete [lesser]. Federal programs will             
not allow the state to restrict approved federal administration                
costs.  The state funded programs and state contribution to funds              
would be capped at 15 %. Some federal programs only allow 5%. This             
language would not allow programs to go above the cap.                         
                                                                               
Additional Programs for Evaluation:                                            
Section 9. (f)(1). Delete whole clause. Refers to Alaska                       
Professional Development Institute.                                            
                                                                               
Section 9. (f)(3). Add in the Department of Education or operated              
by the department, the non public school portions of the following             
programs:                                                                      
                                                                               
Programs Added for Assessment:                                                 
Section 10(g). Add in line 14: of this section, to the extent it               
does not jeopardize federal funding:                                           
                                                                               
Section 10(g)(7). Delete "in the Department of Education:                      
Vocational Rehabilitation client services and special work                     
projects"                                                                      
                                                                               
Section 10(h), line 28. Add The University of Alaska, Alaska                   
Vocational Technical Center, and Kotzebue Technical Center....                 
                                                                               
Management Assessment Fee:                                                     
Section 10(m). Add For purposes of this section, annual operating              
budget                                                                         
(1) means a program's annual budget less any funds which are                   
specified by the state or federal governments as pass through funds            
to local education agencies.                                                   
                                                                               
Note: Section 10(j). We would like to keep open the possibility of             
developing a fiscal note among affected programs using budgeted                
RSA's under inter-agency agreements in lieu of the .75 of 1%                   
management assessment fee.                                                     
                                                                               
Program Definitions:                                                           
Section 10 (should this be Section 11?). Add (3) For purposes of               
this section, "oversight" refers to directly planning with                     
programs, monitoring, evaluating and assessing programs for                    
performance, and reporting to the Governor, Legislature and the                
public.                                                                        
                                                                               
Number 0303                                                                    
                                                                               
MR. ANDREWS referred to Section 10 - programs added for assessment.            
He said they would like to see a section added to the extent that              
it does not jeopardize federal funding - to help the Department of             
[Education, Alaska] Vocational Rehabilitation with client services             
because that is a great concern of theirs, they already have a                 
Governor's Council for Vocational Rehabilitation.  Mr. Andrews said            
of course, he agrees with them, we don't want to hurt federal                  
funding.  They support that.                                                   
                                                                               
MR. ANDREWS referred to Section 10(h) line 28, where the University            
of Alaska has come into this legislation.  He said they think                  
that's a great sign that they would be involved.  The university               
wants to report the information to the AHRIC, and AHRIC will report            
that the legislature.  It will basically be based on the model set             
up by the Alaska Department of Labor, Research and Analysis - they             
work in cooperation.  Mr. Andrews stated, "We feel that it's                   
important that Alaska Vocational Technical Center and the Kotzebue             
Technical Center have the same ability because there's a difference            
between people who are enrolling in programs because they want to              
be there and they want to go into a career area.  And there are                
those that are being told as part of their case management that we             
have some money for you, we think you should go to this school, and            
we want to monitor how you do.  So we think that it's only fair                
that any institution is able to provide that information as long as            
they set up the methodology and that reduces the ability to                    
duplicate that effort and it does still provide the information for            
the legislature and for the council."                                          
                                                                               
Number 0313                                                                    
                                                                               
MR. ANDREWS addressed the management assessment fee.  He said,                 
"This is another area that we're just trying to clarify what right             
now is sort of ambiguous to programs is when we talked about                   
numbers like $64 million and $90 million.  That's a big chunk of               
money to assess when only let's say parts of that are really                   
involved in the programs that we're talking about here.  So we're              
trying to clarify, and again, trying to reduce the, let's say the              
damaged to programs at times of shrinking budgets and..."                      
                                                                               
CHAIRMAN ROKEBERG interjected, "How much are the pass through                  
funds, do you have any idea?"                                                  
                                                                               
MR. ANDREWS deferred to the Department of Education.                           
                                                                               
MR. ANDREWS noted they are trying to work this out internally so               
that they can come up with a fiscal note rather than an assessment             
fee with assurances that the Department of Labor and the council               
will be funded to perform the job that the legislature has asked               
the people to do under this.  He concluded that the legislature                
might consider the council's issues about how it operates and how              
it can be effective -- the additional work that is involved with               
the addition of programs.  Mr. Andrews stressed that no one opposes            
the measures for accountability and performance, everybody is                  
agreement that that's the right way to go.                                     
                                                                               
Number 0329                                                                    
                                                                               
MIKE McMULLEN, Personnel Manager, Division of Personnel, Department            
of Administration, appeared before the committee to testify on SB
334, and speaking for the Alaska Professional Development Institute            
(APDI) division which is a function of his division.                           
                                                                               
CHAIRMAN ROKEBERG asked Mr. McMullen why APDI should be deleted.               
                                                                               
MR. McMULLEN explained the APDI is fundamentally different from the            
other kinds of programs listed in subsection (f) of the bill.  The             
Alaska Professional Development Institute is primarily aimed at                
maintaining and upgrading the skills of state employees.  He said,             
"We are more akin to training programs that you find at any large              
company or organization such as BP (British Petroleum) ... or Bank             
of America, or some place else.  We're there to train primarily our            
own people for the needs of, us as an employer, we're not there to             
provide training in reading, writing, mathematic skills for                    
workforce-readiness.  We're not there for job skills of                        
cleanliness, promptness, those sorts of things to work-readiness               
that other programs are providing.  We're not there retraining                 
people facing layoffs to get them to be tooled for other jobs with             
other employers.  We teach classes that are in some cases so unique            
to the state situation that no one else would be interested,                   
including things like teaching how to use AKSAS (Alaska State                  
Accounting System) which is the state's accounting system, "GENEVA"            
which is the reporting stuff on the state's system, it's all just              
unique - state.  If there's any program in the bill that we're most            
akin too, is like the Correctional Academy.  Correctional Academy              
is training state employees, who are (indisc.) correctional                    
officers in their basic training.  We are training state employees,            
not in their initial training, but in upgrading primarily.  And I              
guess if we can't convince you all to take us out of the bill                  
entirely, moving us from section (f) to section (g) makes a whole              
lot more sense.  We're not opposed to being assessed, I think if we            
are assessed, I will say that AHRIC doesn't need to review us.                 
Alaska Human Resource Investment Council has themselves, in the                
private industry orientation, indicated not interested in                      
supervisory managing this program.  And I think those are all good             
reasons to take us out of the bill in an outright fashion."                    
                                                                               
CHAIRMAN ROKEBERG mentioned the technical suggestions.                         
                                                                               
Number 0353                                                                    
                                                                               
MR. McMULLEN referred the amendment on commissioners.  He said                 
there are more sections implicated then identified.  Sections 1-5              
all have been changed because of the changing commissioners and so,            
if they're reversing them and giving them the voting membership,               
there's some change in each of those sections that would need to be            
corrected.                                                                     
                                                                               
CHAIRMAN ROKEBERG requested that information be provided to the                
committee members.                                                             
                                                                               
MR. McMULLEN continued, "...If we were going to remain in, if I                
sort of had a sense of where the committee might go, I might be                
able to avoid that.  If AHRIC is going to supervise the APDI, the              
Commissioner of Administration should have an equal seat on AHRIC              
with other commissions who have programs being managed by AHRIC.               
So, if APDI is to stay in the Commissioner of Administration should            
be added to the list of commissioners who have seats.  The funding             
mechanism definitely needs some work.  Our concern is that the APDI            
budget is in interagency receipts primarily 5/6 of it, 1/6 is in               
interagency program receipts.  In both cases the receipts                      
authorized are ahead of what we're actually receiving and to be                
assessed on the full budget or authorization is going to be a                  
bigger hit to our budget than budget on just what we actually get              
in revenues and from which we would be able to pay the fee."                   
                                                                               
CHAIRMAN ROKEBERG asked for a brief at ease at 4:08 p.m.                       
                                                                               
TAPE 98-48, SIDE A                                                             
                                                                               
CHAIRMAN ROKEBERG called the meeting back to order at 4:09 p.m.                
                                                                               
[TESTIMONY BEGINS AT 0005]                                                     
                                                                               
Number 0005                                                                    
                                                                               
BARBARA THOMPSON, Director, Teaching and Learning Support,                     
Department of Education, said, "...In school to work are released              
in grants.  In Adult Basic Education, at least 97 percent of the               
funds are released in grants, and in Vocational Education, the                 
federal Vocational Education funds, at least 82 percent are                    
released in direct grants to educational entities."                            
                                                                               
CHAIRMAN ROKEBERG asked if 100 percent of those amounts would be               
subject to the assessment.                                                     
                                                                               
MS. THOMPSON responded, "We're not quite sure what it means, but we            
thought that the language that we suggested would be a clarifying              
attempt at defining what operating budget really means."  She said             
they did not believe that it was the intent of the bill, or the                
assessment, to assess programs and actually eat into the costs of              
the funds that are currently going out to service providers.                   
                                                                               
CHAIRMAN ROKEBERG referred to Section 9, line 25.  He read:                    
                                                                               
     (3) in the Department of Education or operated by the                     
     department:                                                               
                                                                               
CHAIRMAN ROKEBERG asked Ms. Thompson if she wanted to add the "non             
public school portions of the following programs," - with the                  
intention, what would that do.                                                 
                                                                               
MS. THOMPSON said the wanted to clearly show that the K-12 portions            
of School to Work, or Vocational Education, were not to be                     
evaluated using performance measures that relate to specific                   
employment training or job placement because they're talking about             
public school programs with public school students.                            
                                                                               
CHAIRMAN ROKEBERG referred to Section 10, subsection(g)(7), delete:            
                                                                               
     in the Department of Education: vocational rehabilitation                 
     client services and special work projects;                                
                                                                               
CHAIRMAN ROKEBERG asked what's the rationale behind that.                      
                                                                               
Number 0025                                                                    
                                                                               
MS. THOMPSON said, "We do believe, by moving Voc. Rehab. to section            
(g), that their funding is not necessarily jeopardized any further             
as Senator Torgerson said earlier.  If they're going to be                     
assessed, and if they were ever then assessed and moved to section             
(f), their funding would be jeopardized.  So we don't see why they             
should be assessed if they could never be moved to the other                   
section."                                                                      
                                                                               
CHAIRMAN ROKEBERG indicated it was fear.  He asked is the                      
University of Alaska-Anchorage that (indisc.) as the Alaska Voc.               
Tech., or is that the University of Alaska-Anchorage amendment.                
                                                                               
MS. THOMPSON asked which.                                                      
                                                                               
CHAIRMAN ROKEBERG acknowledged Representative Ryan.                            
                                                                               
REPRESENTATIVE RYAN referred to Ms. Thompson's statement, "public              
school is difficult to try to assess it on their accomplishments."             
He noted the King Career Center in his district brags on how their             
programs are structured to put these kids to work and they're doing            
a great job.  He asked how are they different from what she                    
described because they're a public school.                                     
                                                                               
MS. THOMPSON replied the King Career Center does have very special             
aspects to it that would allow some of the performance measures to             
apply.  Many of the programs though, in Vocational Education in                
general in schools, are not job-specific training - they would not             
necessarily lead to immediate employment.  She said the King Career            
Center is a wonderful example of the kind of vocational education              
we want to see in the state.  But the performance measures, as they            
stand, would not render any truly valuable information at this                 
point in time for a lot of the K-12 programs.                                  
                                                                               
CHAIRMAN ROKEBERG referred to subsection (G), Alaska Vocational                
Technical Center, page 9, line 1.  He asked, "Is that under the                
auspices of the University of Alaska and the Kotzebue Center.  You             
wanted those - I take it, deleted from (g) and moved to (h), is                
that correct.  That's what the Andrews amendment (indisc.)."                   
                                                                               
Number 0050                                                                    
                                                                               
MR. ANDREWS directed the committee member's attention to Section               
10, subsection (h), page 10, lines 28-31.  He said, "I think you're            
referring to is we have offered that ... where the University of               
Alaska will be performing an evaluation and reporting to us.  We               
feel that it's fair that the Alaska Vocational Technical Center and            
the Kotzebue Technical Centers are allowed to do that as well                  
because they are schools -  they are institutions, but what we want            
to make sure is that we get the information.  This relates to                  
reducing the cost to those schools and what we're mostly concerned             
about is the right information."                                               
                                                                               
CHAIRMAN ROKEBERG said as he understands it, they would stay in                
section (f) and would also be added to (h).                                    
                                                                               
MR. ANDREWS replied no, we're not saying move those.  What we're               
saying is, where the university has language, we think that those              
two programs should be included in the university's language.                  
                                                                               
CHAIRMAN ROKEBERG reiterated they would stay in section (f) and                
would also be added to (h).                                                    
                                                                               
MR. ANDREWS replied yes, they're listed there in terms of - allowed            
to do their evaluations and report to them in the second part.  He             
noted they are not asking to move the programs.                                
                                                                               
REPRESENTATIVE HUDSON asked if the Alaska Vocational Technical                 
Center is the Seward Skill Center.                                             
                                                                               
MS. THOMPSON replied yes it is.                                                
                                                                               
CHAIRMAN ROKEBERG commented that it's under the Department of                  
Education.  He noted that it's not his intention to move the bill              
today.  He indicated they could adopt an amendment.                            
                                                                               
CHAIRMAN ROKEBERG referred to the AHRIC amendments.  He asked                  
what's the Senate's position on this.                                          
                                                                               
Number 0083                                                                    
                                                                               
KRYSTAL MURPHY, Legislative Administrative Assistant to Senator                
Torgerson, Alaska State Legislature appeared before the committee              
on behalf of Senator Torgerson.  She said, "Basically, I think                 
Senator Torgerson's main heartburn is that this is a very large                
group to meet - 26 members trying to come up and actually have a               
consensus.  And I think it was also our thought that right now an              
executive committee exists within the council that does a lot of               
meeting and they bring policy-decisions to the council as a whole              
where decisions are made.  By giving a lot of flexibility within               
this legislation for that committee to continue to meet and bring              
recommendations to the full committee twice a year was sufficient.             
And so we didn't think it was necessary to expend unnecessary funds            
for them to meet more than twice a year."                                      
                                                                               
REPRESENTATIVE HUDSON said he presumed this committee would be able            
to meet by telephone in some instances and even written                        
communications.                                                                
                                                                               
MS. MURPHY agreed.                                                             
                                                                               
CHAIRMAN ROKEBERG stated, "But it seems to me that there is an                 
executive committee actually running things, and therefore it may              
not be able to really represent the cross-section that the original            
council, and even this bill - you know, reinforce it so that - from            
a policy standpoint (indisc.).  I appreciate the cost, but we've               
heard testimony that it's not a major thing and that also they                 
could use telecommunication so I'm not (indisc.).  You might ask               
how important it is if we moved it up to say three or something."              
                                                                               
Number 0099                                                                    
                                                                               
KRAG JOHNSEN, Administrative Assistant to Senator Drue Pearce,                 
Alaska State Legislature appeared before the committee on behalf of            
Senator Pearce and the Senate Finance Committee.  He said he                   
believes the intent of the legislation was to bring the executive              
committee to an empowered executive committee.  They would do a lot            
of the daily business of the full committee and that's also where              
the changes to the private industry took place.  We put more                   
private industry folks on there and they guide that executive                  
committee.                                                                     
                                                                               
CHAIRMAN ROKEBERG noted, even in the private sector, most                      
corporations or groups have quarterly meetings to set policy and               
let the executive carry that out.                                              
                                                                               
REPRESENTATIVE COWDERY said, as he understands it, anything major              
would have to be taken to the full committee.                                  
                                                                               
MR. JOHNSEN deferred to Mr. Andrews.                                           
                                                                               
MR. ANDREWS responded, currently this is how the council operates.             
He noted they have an executive committee that meets quite                     
regularly, but all policy decisions or actions must be then given              
to the council.  They must be informed of the actions and those                
issues that need to be voted upon, is held for their meetings.  He             
mentioned they can meet with video conferences and telephonically              
to hold costs down.  He noted that this does create sort of a                  
vacuum in terms of the executive committee leadership that doesn't             
extend into, for example input from the University of Alaska or                
input from some other program directors.  Mr. Andrews said, "That              
may be valuable, but what we're doing now is we're informing                   
everybody of our decisions and then we're voting on those things               
that are important and are functioning pretty well as is."                     
                                                                               
REPRESENTATIVE COWDERY asked if there are a lot of policy changes.             
                                                                               
Number 0125                                                                    
                                                                               
MR. ANDREWS replied, "No, we aren't setting a lot of policy but                
there are a lot of responsibilities to do direct planning with                 
programs, to review programs, again we have 17 programs under us               
and so it's not -- we can hold some of our policy decisions for                
let's say semiannual meetings.  What we lose in the meantime though            
is that internal information and exchange of information between               
council members.  But when we do have to make a decision we can                
call a special - these are all public meetings - we can call a                 
special meeting and handle it by teleconference when it's something            
very important."                                                               
                                                                               
CHAIRMAN ROKEBERG indicated this would restrict the council the way            
it's drafted.                                                                  
                                                                               
MR. ANDREWS replied yes it would.  He said he didn't think the                 
council would disagree if it only had to meet twice a year ...                 
except for the business itself, particularly right now because it              
takes more than that.  Mr. Andrews stated, "We just feel that, to              
set in concrete, two meetings a year really may drop some council              
members' commitment to it, some involvement in it when they're only            
getting together twice a year."                                                
                                                                               
REPRESENTATIVE RYAN mentioned one of the criticisms he heard a                 
couple years ago, when it was created, was that 25 members make it             
unwieldy, it was very difficult for them to accomplish (indisc.--              
noise) but that work has been done and it's getting better.  He                
asked how did it wind up that there had to be 25 members.                      
                                                                               
MR. ANDREWS said, "Three councils, with 39 people, were combined to            
get to 26 people.  And then there are the federal requirements.                
What we've done, and we agree within the bill, is allow the cross-             
member representation, so that really we can function with about 21            
members.  That's a savings.  People can represent not only the                 
private sector but also other things."                                         
                                                                               
Number 0148                                                                    
                                                                               
CHAIRMAN ROKEBERG mentioned he was on the subcommittee and believes            
Representative Brice was also at the birth of AHRIC.  He asked Ms.             
Murphy, "Did the Senate, in its deliberations, take up this problem            
of perhaps special meeting calling and so forth or any ability --              
and some flexibility at all.  Did they discuss that?"                          
                                                                               
MS. MURPHY replied, at this point we have not but I can...                     
                                                                               
CHAIRMAN ROKEBERG interjected, "I mean, when their deliberations --            
did you when you were drafting the bill consider that."                        
                                                                               
MS. MURPHY replied, no we did not.                                             
                                                                               
CHAIRMAN ROKEBERG suggested Ms. Murphy consider that.  He said,                
"The administrative cost -- the recommendation of the lesser of,               
because of the federal caps being variable, and the fact that some             
may be 5 and some may be 20 percent, is that true in terms of what             
you're able to find out.  I mean that's a verifiable thing."                   
                                                                               
MS. MURPHY responded in the affirmative.                                       
                                                                               
CHAIRMAN ROKEBERG asked if it was the Senate's desire to put a cap             
on all funding - administrative cost levels - why they chose that              
one.                                                                           
                                                                               
Number 0157                                                                    
                                                                               
MR. JOHNSEN said, "Maybe I'm missing something on this amendment,              
but the 15 percent - those are across the board for all federal and            
state funds.  So the way JTPA is set up now, (indisc.) goes up to              
20 percent administrative cap.  What this would do in essence, and             
discussions have been between Senator Torgerson and the department,            
would bring that down to 15 percent which is the direction that I              
believe - when JTPA had reauthorization - that we were looking at              
before anyway.  So as far as the federal programs that allow 5                 
percent and 10 percent, we don't have any control over bringing                
that administrative rate up.  That will still stand at 5 and 10                
percent."                                                                      
                                                                               
CHAIRMAN ROKEBERG referred to a letter from Lawrence Hartig, Vice-             
Chair, Anchorage/Mat-Su Private Industry Council.  He noted prior              
testimony indicated that Fairbanks may have a higher proportional              
need for that.  He asked Mr. Johnsen if he took that into account.             
                                                                               
MR. JOHNSEN said he believes Senator Torgerson talked with the                 
Department of Labor and maybe they can speak to that.  They did                
take that into account, especially with the JTPA, the 15 to 20                 
percent and with these new requirements and assessment fees - how              
that would affect their budget.                                                
                                                                               
CHAIRMAN ROKEBERG asked Mr. Andrews how much of the allowable -- is            
that just the JTPA that has the 20 percent.                                    
                                                                               
Number 0172                                                                    
                                                                               
MR. ANDREWS stated the only one he knows of that exceeds the 15                
percent is the JTPA.                                                           
                                                                               
CHAIRMAN ROKEBERG asked how much money is that on the annual                   
budget.                                                                        
                                                                               
MR. ANDREWS replied he doesn't know what that is.  He noted there's            
approximately $9 million that comes in for the programs, 20 percent            
of that is $1.8 million.                                                       
                                                                               
CHAIRMAN ROKEBERG referred to the Alaska Professional Development              
Institute.  He said he doesn't know why it's in the bill.                      
                                                                               
MR. JOHNSEN said he thinks the intent of the legislation was to get            
a broad scope of all training programs in the state.  When they                
looked at the oversight, in which programs the AHRIC should have               
oversight on, automatically the committee and Senator Torgerson                
felt that Professional Development definitely falls into the                   
category of (indisc.--noise).                                                  
                                                                               
CHAIRMAN ROKEBERG interjected, they're guilty by their title.                  
                                                                               
MR. JOHNSEN continued, of needing oversight and performance                    
measures.                                                                      
                                                                               
CHAIRMAN ROKEBERG asked Mr. Johnsen if he was aware that the funds             
were all interagency funds.                                                    
                                                                               
MR. JOHNSEN noted they were aware of that.                                     
                                                                               
CHAIRMAN ROKEBERG commented, in other words this could come out of             
the Office of the Governor.  He added that moving subsection (g)               
would be appropriate.                                                          
                                                                               
MR. JOHNSEN mentioned it has been brought to their attention and it            
could be brought back to Senator Torgerson and the committee to get            
their views.                                                                   
                                                                               
CHAIRMAN ROKEBERG said, "From my understanding of it - the program,            
it seems to make more sense.  He referred to Section 10(g), line               
14, which adds the following language:                                         
                                                                               
     to the extent it does not to jeopardize federal funding:                  
                                                                               
CHAIRMAN ROKEBERG asked Mr. Johnsen if he has a problem with that.             
He indicated it doesn't seem to be negative.                                   
                                                                               
Number 0193                                                                    
                                                                               
MS. MURPHY stated that she didn't think they wouldn't have any                 
problem with adding that language to clarify because it's not their            
intent to jeopardize federal funding.  However, they would object              
to the second section of deleting DEVR (Department of Education:               
Vocational Rehabilitation) totally from this legislation.                      
                                                                               
CHAIRMAN ROKEBERG said he wasn't sure he entirely understands                  
Section 10(h,) line 28, which adds:                                            
                                                                               
     The University of Alaska, Alaska Vocational Technical Center,             
     and Kotzebue Technical Center                                             
                                                                               
MS. MURPHY commented that she doesn't understand that either.                  
                                                                               
CHAIRMAN ROKEBERG asked Mr. Andrews to address that.                           
                                                                               
MR. ANDREWS reiterated the Department of Education and others have             
agreed with the amendments.  He said it can stay in the section                
that would be assessed.  Mr. Andrews explained what they are saying            
is that the institutions already perform an evaluation for their               
oversight boards, like Board of Regents, like the Advisory Council             
for AV Tech. and the school district in Kotzebue.  He further                  
explained as long as they gather the information, that's required              
under subsection (f), and report that to them that they should be              
allowed to do that.                                                            
                                                                               
REPRESENTATIVE RYAN said, I wonder if they have the same area of               
expertise that the university would have as far as their evaluation            
ability.                                                                       
                                                                               
MR. ANDREWS noted that they would have to be evaluated in (f)                  
anyway.                                                                        
                                                                               
REPRESENTATIVE RYAN asked if they can do the job as well as the                
University of Alaska.                                                          
                                                                               
MR. ANDREWS commented that he's not sure he understands.                       
                                                                               
Number 0213                                                                    
                                                                               
REPRESENTATIVE BRICE referred to a comment that was made earlier               
making this cover as broad a spectrum (indisc.) state training                 
programs as possible.  He asked if they looked into the Social                 
Worker Academy, through the Department of Health and Social                    
Services, Foster Care Training, those types of...                              
                                                                               
CHAIRMAN ROKEBERG commented, you mean we missed some more.                     
                                                                               
REPRESENTATIVE BRICE stated, "I guess my question is, is we've got             
all this other stuff, and you're talking about training.  I was                
wondering - and we're talking about inmate programs and                        
Corrections.  I mean, my question was, you guys were the ones that             
said it was supposed to be comprehensive.  And I'm wondering what              
about all the various training within [Department of] Health and               
Social Services, what their thoughts were."                                    
                                                                               
MR. JOHNSEN explained our Legislative Finance Division went through            
and pulled every component related to employment training and that             
was put into this bill.                                                        
                                                                               
REPRESENTATIVE BRICE mentioned they missed a couple.                           
                                                                               
MR. JOHNSEN reiterated, they missed a couple.                                  
                                                                               
MR. ANDREWS said, "On that section, where there's confusion, I just            
spoke with the Department of Education and they don't necessarily              
see the need to have that - Section 10(h), line 28, included there,            
so if it is confusing, drop that."                                             
                                                                               
Number 0229                                                                    
                                                                               
CHAIRMAN ROKEBERG referred to the Management Assessment Fee.  He               
said, "My last question on the management assessment fees, about               
the pass through - apparently that's pretty substantial amount of              
money and I guess you earlier answered that.  The why not was that             
that is part the whole program and you programmed that into your               
fiscal notes and the amount of dollars needed to do the evaluations            
and assessments, is that correct."                                             
                                                                               
MS. MURPHY replied, "Correct, if we didn't count these pass through            
monies, the amount of money that would be received from DOE                    
(Department of Education) would probably be next to nothing.  And              
probably could not justify the amount of the evaluation that would             
have to be done."                                                              
                                                                               
CHAIRMAN ROKEBERG said the rationale is that these particular                  
programs need an evaluation assessment just like everything else               
does.                                                                          
                                                                               
MS. MURPHY responded, "Correct, it was our intent by assessing this            
same fee to all programs that we have an adequate amount of money              
to do what was needed in order to do the purview needed on all of              
these programs.  But, by eliminating pass through funds, I don't               
think it would - it would not be enough money."                                
                                                                               
MR. JOHNSEN reiterated we are working with our Legislative Finance             
Division, with the Office of Management and Budget, and with Mr.               
Andrews of AHRIC to look at some of these assessment fees and to               
figure out the best structure.  He said he thinks the goal and the             
intent is to get to an AHRIC that will have the funding necessary              
to get the job done that we put into legislation.  However we get              
there I think is...                                                            
                                                                               
CHAIRMAN ROKEBERG said the bill has one more stop, doesn't it.                 
                                                                               
MS. MURPHY replied House Finance Committee.                                    
                                                                               
Number 0245                                                                    
                                                                               
REPRESENTATIVE RYAN stated, "On this assessment, the Senator said              
there was some - perhaps going to take one time and others would be            
continuing because this was an ongoing (indisc.--paper noise) a                
dynamic thing.  What criteria - what are you going to do once you              
get back the assessments, what do you use for a benchmark to say               
these guys are doing a job, or perhaps need improvement, or                    
however.  You're going to do this assessment, get this work back,              
how are we going to quantify it."                                              
                                                                               
MR. JOHNSEN noted that report would be presented to the legislature            
and to the governor.  He said he believes it would be your job to              
look at what benchmarks, you would have the data, you would have               
the numbers, and then to set policy from there.  But what would be             
the criterion of the various performance measures where that                   
performance is (indisc.)...                                                    
                                                                               
REPRESENTATIVE RYAN interjected, what you're basically trying to do            
is implement a quality control, a quality insurance program.  And              
having the information is only the first step, you should have a               
program that would be ongoing they could (indisc.--fading).                    
                                                                               
MS. MURPHY agreed.                                                             
                                                                               
CHAIRMAN ROKEBERG referred to the program definition.  He indicated            
that it doesn't seem to be bad unless there is some hidden meaning.            
                                                                               
MR. JOHNSEN said it's just a bit redundant.  He said he believes               
that's what the legislation does.  If you look at it, it monitors,             
it evaluates and assesses the programs that are listed throughout              
this legislation and that's...                                                 
                                                                               
CHAIRMAN ROKEBERG interjected, is there a reporting requirement.               
                                                                               
MR. JOHNSEN replied yes.  So further defining oversight, if                    
you'd...                                                                       
                                                                               
CHAIRMAN ROKEBERG interjected, we don't want to add more words to              
our heavy laws.  He referred to Representative Ryan's remarks                  
regarding membership and said he wasn't sure that business,                    
industry, and private sector mix.  He asked Mr. Andrews, "Is there             
some fluidity there, you could have one or four or something of the            
private sector or business people so that it accounts for some turn            
over, is that right."                                                          
                                                                               
Number 0264                                                                    
                                                                               
MR. ANDREWS replied, "We have the majority, or 50 percent of the               
council now is from the private sector which is non-governmental               
employees.  There is a specific designation inside of that group               
that is business and industry representatives, and that delineates             
between community-based organizations organizing with - and others.            
There is a revolving - in law there's the ability for, as members              
leave others come on and fill those designated seats, and we have              
the turnover.  But, just for clarification, the council has                    
struggled with this issue, I mean what's private sector and what's             
business and industry and we've been trying to work out that                   
tension at the council level.  The council does not oppose private             
sector leadership of the council.  That's not the case, it's just              
that they feel that we should, as a council, be allowed some                   
flexibility that not ... because of what you'll have, is every                 
elected official eventually will be based from business and                    
industry, from a segment of only 4 representatives on the council              
and they feel that that may reduce the ability of the council to               
find a leadership and the commitment that it needs to improve.                 
They agree that one should be from business and industry,                      
absolutely, and the other from private sector."                                
                                                                               
CHAIRMAN ROKEBERG stated, "I think there's been a controversy                  
before, but what private sector and so forth means because there's             
nonprofits that tend to be quasi bureaucratic or -- I don't want to            
mean (indisc.) but they come from that rather than actual and                  
private business here so.  Can you tell us presently on existing               
council, just as a baseline here, of those private sector industry             
people how many come from nonprofit organizations?"                            
                                                                               
MR. ANDREWS indicated that at least half come from nonprofit                   
organizations.                                                                 
                                                                               
CHAIRMAN ROKEBERG said, so if we're going to make any distinctions             
here we should probably make it between private - nonprofit and                
profit - (indisc.) to the other things.  He asked Representative               
Ryan if this makes sense.                                                      
                                                                               
REPRESENTATIVE RYAN replied a portion of this amendment says we                
delete all other language, starts out...                                       
                                                                               
Number 0281                                                                    
                                                                               
CHAIRMAN ROKEBERG interjected, we get to make our own amendments.              
                                                                               
REPRESENTATIVE RYAN suggested one of them would be industry and the            
other could be a private, not necessarily reflecting industry -                
similar to what Mr. Andrews was talking about.                                 
                                                                               
CHAIRMAN ROKEBERG mentioned it kind of goes along with the                     
distinction he was making about private and nonprofit.                         
                                                                               
REPRESENTATIVE RYAN said he was originally thinking of industry                
being very large corporations versus the average guy that owns a               
shoe store or a gas station - a small business guy.  And that we               
should have one of each represented so that both sectors would have            
some input - so you would have a different perspective and not get             
it loaded up with two small business guys or two large business                
guys being the chair and the vice-chair.                                       
                                                                               
CHAIRMAN ROKEBERG asked Representative Ryan if he has a term that              
he would like to suggest.                                                      
                                                                               
REPRESENTATIVE RYAN indicated Senator Torgerson didn't seem to                 
object right on the surface.  He said he would be more comfortable             
to let the Senator mull that over for a day or so.                             
                                                                               
Number 0292                                                                    
                                                                               
REPRESENTATIVE BRICE suggested a potential amendment might be:                 
                                                                               
     shall elect either a chair or a vice-chair from the                       
     representatives of business and industry                                  
                                                                               
REPRESENTATIVE BRICE explained that would give that flexibility                
that one or the other can.  He said we have also enumerated Alaska             
Native organizations, community-based organizations, and organized             
labor.  There's a lot of other folks out there who are not                     
necessarily governmental, who might fit well to provide a very                 
symbiotic chair/vice-chair relationship there.                                 
                                                                               
REPRESENTATIVE COWDERY asked, "Is organized nonprofit or profit                
(Indisc.) profits."                                                            
                                                                               
CHAIRMAN ROKEBERG interjected, "How about nongovernmental.  I mean             
you could both of them could be -it's right here, this bill reads              
basically business industry from both of them."                                
                                                                               
REPRESENTATIVE BRICE commented, that's right.                                  
                                                                               
CHAIRMAN ROKEBERG suggested excluding "government."                            
                                                                               
Number 0303                                                                    
                                                                               
MR. JOHNSEN pointed out that was looked at in the original                     
legislation.  He said, "What we were trying to do was provide the              
leadership for the committee to be from business and industry.  I              
think that was Senator Torgerson's direction was that business and             
industry lead this council.  And so you take out the business and              
industry, those key words, like on page 2, line 5, that's the four             
people were talking about, the four representatives of business and            
industry.  Those are the ones that we want leading the council                 
because that's where the rubber meets the road, those are the                  
people who are providing the jobs to the people who were trained."             
                                                                               
     (4) [(5)] four representatives of business and industry, with             
     at least one representative from the private industry councils            
     appointed under 29 U.S.C. 1512 and subject to reconstitution              
     under 29 U.S.C. 1515;                                                     
                                                                               
CHAIRMAN ROKEBERG said he doesn't have a problem with that.                    
However, he is not sure that's the thrust that Representative Ryan             
was getting at.                                                                
                                                                               
REPRESENTATIVE RYAN commented we have business and industry.  He               
said he thought we would have small business and big business so               
you could have a perspective.                                                  
                                                                               
REPRESENTATIVE BRICE said, when we take a look at the standing                 
committees -- let's make the assumption we've got four business and            
industry appointees here.  Two of them take up the duties of chair             
and vice-chair that leaves two others to fulfill the roles on the              
permanent standing committees of assessment and evaluation, policy             
and planning, employment placement and workforce readiness.                    
Representative Brice stated, "Three of those four standing                     
committees, Mr. Chair, I would suggest - would have dramatic need              
of having been business and industry representation."                          
                                                                               
CHAIRMAN ROKEBERG suggested increasing the number, from four-up,               
and decreasing the others.                                                     
                                                                               
REPRESENTATIVE BRICE said we could, or just increase the four-up.              
                                                                               
CHAIRMAN ROKEBERG commented we had this discussion three years ago             
didn't we.                                                                     
                                                                               
REPRESENTATIVE BRICE agreed.                                                   
                                                                               
MR. ANDREWS made a distinction.  He said this is what they've                  
struggled with at the council.  For example, in Bethel the largest             
employer is Yukon-Kuskowim Health Corporation which represents the             
medical industry.  It's also a not-for-profit.  He mentioned they              
deal with this all the time.                                                   
                                                                               
CHAIRMAN ROKEBERG said, "One thing I would like to see is that - a             
for group of business and industry, stipulate profit for profit or             
something, not just..."                                                        
                                                                               
REPRESENTATIVE RYAN mentioned the Providence Health System is a                
not-for-profit and it's the second or third largest employer in the            
state.                                                                         
                                                                               
Number 0321                                                                    
                                                                               
MR. JOHNSEN suggested Mr. Andrews make a clarification.  He said,              
"I think that those four people are - when you said that half of               
the representatives on the council, you meant the other folks too.             
Those four are true business and industry now, and on the AHRIC is             
that correct.  I mean for profit businessmen."                                 
                                                                               
CHAIRMAN ROKEBERG commented, "Well you just contradicted yourself,             
you said the health care industry, they represent that."                       
                                                                               
MR. ANDREWS pointed out, in terms of leadership at the council                 
level, they are struggling with that.  He presented another example            
saying, "Right now we have the oil industry represented - actually             
now something happened a person changed jobs and now we have two               
oil industry representatives, and we have the Anchorage Telephone              
Utility which is a government owned industry-based for profit                  
company."                                                                      
                                                                               
CHAIRMAN ROKEBERG commented, not too long though.                              
                                                                               
REPRESENTATIVE BRICE added, it is now.                                         
                                                                               
MR. ANDREWS continued, "So ... this is the attention - when we                 
start to ask this when we have, let's say some real qualified                  
leadership from ATU (Alaska Telephone Utility).  If we say not a               
government-based corporation then we spend our three hours doing               
what we're doing here."                                                        
                                                                               
CHAIRMAN ROKEBERG indicated this would be a real contribution in               
this bill if some of these definitions are a little clearer.  It               
would actually help the appointment and the direction because this             
is the same discussion we had three years ago when it was put                  
together and...                                                                
                                                                               
REPRESENTATIVE BRICE added, it was a fight.                                    
                                                                               
CHAIRMAN ROKEBERG stated, all you've done is change the numbers,               
you haven't changed the definitions.  He indicated that might help             
and commented on Representative Ryan's and his points.  He                     
suggested Mr. Andrews might go back to the Ouija board because we              
want to move this bill on Monday.                                              
                                                                               
MR. JOHNSEN noted the original version had 8 people on the council.            
He reiterated that they've tried to make some changes.  He said                
it's difficult to come up with those definitions and it's difficult            
to take people off the board with the federal requirements and                 
it's...                                                                        
                                                                               
CHAIRMAN ROKEBERG interjected, and if you get down to one, it's                
hard to take a half a person.  He stated, "The federal requirements            
perception, the -- in regard to the -- oh, the makeup of the                   
council.  The federal requirements, the makeup of the council."                
                                                                               
MS. MURPHY pointed out JTPA has set a lot of the standards as far              
as the makeup of this council.                                                 
                                                                               
CHAIRMAN ROKEBERG asked Ms. Murphy, "Will you provide the committee            
with."                                                                         
                                                                               
MS. MURPHY replied yes.                                                        
                                                                               
[SB 334 WAS HEARD AND HELD]                                                    
                                                                               
ADJOURNMENT                                                                    
                                                                               
Number 0343                                                                    
                                                                               
CHAIRMAN ROKEBERG adjourned the House Labor and Commerce Standing              
Committee at 5:49 p.m.                                                         

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