Legislature(2021 - 2022)BARNES 124
04/28/2021 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HJR19 | |
| HB149 | |
| HB146 | |
| Occupational Safety and Health Review Board | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HJR 19 | TELECONFERENCED | |
| += | HB 149 | TELECONFERENCED | |
| += | HB 146 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 28, 2021
3:24 p.m.
DRAFT
MEMBERS PRESENT
Representative Zack Fields, Co-Chair
Representative Ivy Spohnholz, Co-Chair
Representative Calvin Schrage
Representative Liz Snyder
Representative David Nelson
Representative James Kaufman
Representative Ken McCarty
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 19
Supporting widespread infrastructure investment in the state.
- HEARD & HELD
HOUSE BILL NO. 149
"An Act relating to allowing certain child day care providers to
organize for the purpose of collective bargaining."
- MOVED HB 149 OUT OF COMMITTEE
HOUSE BILL NO. 146
"An Act relating to disclosure of information regarding employee
compensation by employers, employees, and applicants for
employment; establishing the fund for protection of compensation
disclosure rights; and providing for an effective date."
- MOVED CSHB 146(L&C) OUT OF COMMITTEE
CONFIRMATION HEARING(S):
Board of Direct Entry Midwives
Tanya Kirk - Anchorage
- CONFIRMATION(S) ADVANCED
Marijuana Control Board
Casey Dschaak - Dillingham
- CONFIRMATION(S) ADVANCED
Occupational Safety and Health Review Board
Vincent Perez - Wasilla
- CONFIRMATION(S) ADVANCED
PREVIOUS COMMITTEE ACTION
BILL: HB 149
SHORT TITLE: CHILD CARE PROVIDER COLLECTIVE BARGAINING
SPONSOR(s): FIELDS
03/24/21 (H) READ THE FIRST TIME - REFERRALS
03/24/21 (H) L&C, STA
04/02/21 (H) L&C AT 8:00 AM GRUENBERG 120
04/02/21 (H) <Bill Hearing Canceled>
04/05/21 (H) L&C AT 3:15 PM BARNES 124
04/05/21 (H) Heard & Held
04/05/21 (H) MINUTES(L&C)
04/16/21 (H) L&C AT 8:00 AM GRUENBERG 120
04/16/21 (H) Heard & Held
04/16/21 (H) MINUTES(L&C)
04/28/21 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 146
SHORT TITLE: DISCLOSURE OF WAGE INFORMATION
SPONSOR(s): SNYDER
03/24/21 (H) READ THE FIRST TIME - REFERRALS
03/24/21 (H) L&C, JUD, FIN
04/05/21 (H) L&C AT 3:15 PM BARNES 124
04/05/21 (H) <Bill Hearing Canceled>
04/09/21 (H) L&C AT 8:00 AM GRUENBERG 120
04/09/21 (H) <Bill Hearing Canceled>
04/16/21 (H) JUD REFERRAL REMOVED
04/16/21 (H) BILL REPRINTED
04/23/21 (H) L&C AT 8:00 AM GRUENBERG 120
04/23/21 (H) Heard & Held
04/23/21 (H) MINUTES(L&C)
04/28/21 (H) L&C AT 3:15 PM BARNES 124
BILL: HJR 19
SHORT TITLE: SUPPORTING INVESTMENT IN INFRASTRUCTURE
SPONSOR(s): LABOR & COMMERCE
04/28/21 (H) READ THE FIRST TIME - REFERRALS
04/28/21 (H) L&C
04/28/21 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
CHRISTINE O'CONNOR, Executive Director
Alaska Telecom Association
Anchorage, Alaska
POSITION STATEMENT: Testified and presented a PowerPoint in
support of HJR 19.
CHRIS KOLEROK, Director of Policy and Government Affairs
Cook Inlet Housing Authority
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 19.
CRYSTAL ENKVIST, Executive Director
Alaska Power Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 19.
JIM JAGER, Director
Business Continuity and External Affairs
Port of Alaska at Anchorage
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Testified and presented a PowerPoint in
support of HJR 19.
ALICE SIIRA, Executive Director
Associated General Contractors
Anchorage, Alaska
POSITION STATEMENT: Testified and presented a PowerPoint in
support of HJR 19.
NOLAN KLOUDA, Executive Director
Center for Economic Development
University of Alaska
Anchorage, Alaska
POSITION STATEMENT: Presented a PowerPoint during the hearing
on HB 149.
KIM HAYS, Political Director
American Federation of Labor - Congress of Industrial
Organizations
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 146.
JOE DUNHAM, Chief Investigator
Wage and Hour Administration
Division of Labor Standards and Safety
Department of Labor and Workforce Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
146.
ACTION NARRATIVE
3:24:51 PM
CO-CHAIR IVY SPOHNHOLZ called the House Labor and Commerce
Standing Committee meeting to order at 3:24 p.m.
Representatives Spohnholz, Snyder, Fields, and Schrage were
present at the call to order. Representatives Kaufman, McCarty,
and Nelson arrived as the meeting was in progress.
3:26:02 PM
The committee took a brief at-ease.
[Co-Chair Spohnholz passed the gavel to Co-Chair Fields.]
HJR 19-SUPPORTING INVESTMENT IN INFRASTRUCTURE
3:26:44 PM
CO-CHAIR FIELDS announced that the first order of business would
be HOUSE JOINT RESOLUTION NO. 19, "Supporting widespread
infrastructure investment in the state."
3:26:52 PM
CO-CHAIR SPOHNHOLZ introduced HJR 19 on behalf of the House
Labor and Commerce Standing Committee, prime sponsor. She said
that Alaska's infrastructure has been neither built nor
maintained due to low capital budgets over the past six years.
She pointed out that the average state unrestricted general fund
capital budget between fiscal year 2016 (FY 16) and FY 21 was
$123 million; the modest investments, she pointed out, have
largely existed for the sake of federal highway matching. She
said that the Alaska Municipal League (AML) testified during the
April 14, 2021, meeting of the House Labor and Commerce Standing
Committee that Alaska has a $22 billion infrastructure deficit,
with deferred maintenance for state facilities totaling $2
billion for the University of Alaska totaling $1.3 billion. She
said that Alaska's infrastructure has received a rating of "C-"
from the American Society for Civil Engineers, Alaska Chapter,
with marine highways, ports and harbors, water, and wastewater
all receiving a "D" rating due to lack of maintenance and
construction. The marine highway system needs a massive
infusion of capital, she said, and rural airports across the
state have identified hundreds of capital project needs. The
Port of Alaska at Anchorage, which supports $14 billion in
commercial activity, needs significant investment to ensure that
it will be safe in the future. She noted that this issue is of
particular importance because Alaska has only three days' worth
of food at any given time.
CO-CHAIR SPOHNHOLZ said more than 16,000 affordable homes are
needed at a cost of $7 billion, and in 2019 the Alaska Broadband
Task Force identified broadband infrastructure as critical to
meeting the need for innovation, commerce, education, and health
care. Renewable energy in Alaska is critical to reducing energy
costs, she said, particularly for rural Alaskans; proven
technologies such as hydropower and wind power already power
several areas of Alaska. She pointed out that the governor
understands the need for more renewable energy and has
introduced HB 170, which would establish a "green bank." She
said he also understands the need to address infrastructure and
has proposed a general obligation bond to pay for capital needs.
Congress is currently considering a bill that could bring
"massive" capital infusion into Alaska's economy at a critical
time, she said; HJR 19 would encourage Alaska's congressional
delegation to aggressively pursue funding for Alaska's capital
infrastructure needs. She noted the population loss due to net
outmigration and the existence of 24,000 jobs in the
construction industry, which deliver a middle class wage and are
critical to the economy.
3:31:25 PM
CO-CHAIR FIELDS opened invited testimony on HJR 19.
3:31:34 PM
CHRISTINE O'CONNOR, Executive Director, Alaska Telecom
Association, provided testimony and a PowerPoint presentation in
support of HJR 19 [hardcopy included in the committee packet].
She explained that it's useful to think of broadband networks in
two sections: "last mile" and "middle mile." The last mile
network, she said, connects a house or school to the broadband
provider; this piece can connect houses or businesses together
but needs the middle mile section to connect to the Internet.
Alaska's middle mile is a combination of technologies, she said,
with thousands of miles of fiber allowing huge capacity and fast
speeds. She said that when fiber can be built the system can
provide nearly "future-proof" capabilities. Where building
fiber isn't possible, she said, microwave networks enable
delivery of high-speed broadband; where fiber or microwave isn't
available, multiple geosynchronous satellites provide the
connection to the world.
MS. O'CONNOR pointed out Alaska's uniqueness in the middle mile
situation compared to the Lower 48, where people have nearly
ubiquitous access to fiber-backed connections. She presented
slide 7, "Middle Mile is Key - 2010," which displayed a map of
the middle mile network in 2010 showing undersea cables
connecting Alaska to the Lower 48, along with a few microwave
links; numerous black dots represent schools that were served
solely by satellite. Slide 8, "Middle Mile is Key - 2020,"
showed the result of massive investment in middle mile
connectivity including new infrastructure along the northern
coast; expansion of microwave networks in Southwest, Northwest,
and Southeast Alaska; new fiber running up the Dalton Highway;
and new terrestrial and subsea links into Canada. She presented
slide 9, "Last Mile Expansion," which read as follows [original
punctuation provided]:
braceright Over 50,000 locations upgraded/new broadband by ATA
members since 2015
braceright Projects:
braceright Alaska Communications
braceright Alaska Power & Telephone
braceright Copper Valley Telecom
braceright GCI
3:35:24 PM
MS. O'CONNOR presented slide 10, "New Middle Mile," which read
as follows [original punctuation provided]:
braceright Alaska Power & Telephone
braceright Cordova Telecom
braceright GCI
braceright KPU Telecom
braceright Matanuska Telephone Association
braceright Nushagak Cooperative
MS. O'CONNOR shared further detail regarding slide 10. She said
that Alaska Power & Telephone (AP&T) has constructed an undersea
cable between Juneau, Haines, and Skagway, and is doubling the
capacity of its microwave network between Juneau and Ketchikan;
Cordova Telecom expanded its microwave network in Prince William
Sound; GCI completed a multi-year upgrade at 42 microwave sites
in Western Alaska to add more capacity; KPU Telecom completed
Ketchikan One, the first undersea connection to Canada and
connecting to their fiber; Matanuska Telephone Association (MTA)
constructed the Al-Can One project, the first terrestrial
connection from Alaska into Canada; and Nushagak Cooperative
completed a major expansion of their microwave network in
Dillingham. She noted that the MTA and KPU projects are
providing new routes from Alaska to the Lower 48 which would
expand both the capacity coming into the state and provide
geographic diversity in case of emergency or disaster.
MS. O'CONNOR said that every time there's an opportunity to
deploy more resources to improve networks, Alaska's broadband
providers are doing so. She then presented slide 11, "ReConnect
Round 1," which displayed the Cordova Telecom Cooperative logo
and read as follows [original punctuation provided]:
braceright Dec. 3, 2019 USDA awards Cordova Telecom $18.9M grant
to connect Yakutat
MS. O'CONNOR presented slide 12, "ReConnect Round 2," which
displayed the AP&T logo and read as follows [original
punctuation provided]:
braceright October 12, 2020 USDA awards $21.5M grant to Alaska
Power & Telephone to connect Coffman Cove and Kasaan
on Prince of Wales Island.
MR. O'CONNOR presented slide 13, "Reconnect Round 2," which
displayed a GCI logo and read as follows [original punctuation
provided]:
braceright October 12, 2020 USDA awards $25M grant to GCI to
build an undersea fiber connecting Unalaska, Akutan,
King Cove, Sand Point, Chignik, & Larsen Bay
MS. O'CONNOR presented slide 14, "Reconnect Round 2," which
displayed the Arctic Slope Telephone Association Cooperative
(ASTAC) logo and read as follows [original punctuation
provided]:
braceright November 12, 2020 USDA awards $5.3M grant to ASTAC to
connect Kaktovik.
MR. O'CONNOR presented slide 15, "ReConnect Round 2," which
displayed the TelAlaska and MTA logos and read as follows
[original punctuation provided]:
braceright November 12, 2020, USDA awards $4.1M grant to
TelAlaska & $1.9M to MTA.
braceright Brevig Mission
braceright Teller
braceright Caswell
MS. O'CONNOR characterized the projects as "transformational"
and noted that the program has a rigorous and expensive
application process and requires significant matching funds from
each awardee. She then presented slide 16, "Low Earth Orbit
Satellites - LEOS," which read as follows [original punctuation
provided]:
braceright Starlink
braceright One Web
braceright Project Kuiper
braceright Telesat
MS. O'CONNOR said that the questions of expense, timeline, and
availability still exist. She then presented slide 17, "What's
next?" Slide 17 read as follows [original punctuation
provided]:
braceright Private investment - $1.2B
braceright Federal
braceright State
braceright Congress
MS. O'CONNOR pointed out that it's critical to have stable
programs at the federal and state levels. President Joe Biden's
American Jobs Act, she said, proposed $100 billion for broadband
and states the ambitious goal to bring affordable, reliable
broadband to every American.
3:42:00 PM
CHRIS KOLEROK, Director of Policy and Government Affairs, Cook
Inlet Housing Authority (CIHA), testified in support of HJR 19.
He stated that Alaska's infrastructure is inadequate; cities and
boroughs have relied on new housing developments in order to
upgrade existing roads, water and sewer lines, and stormwater
systems. The upgrades are often needed prior to the building of
new housing, he said, and will benefit other new housing in the
future, which is one of the reasons why housing is so expensive
to build and why expensive housing is the only profitable
housing to develop. He described some of the housing structures
in Anchorage managed by CIHA and noted the Association of Alaska
Housing Authorities, a membership organization of the 14
regional housing authorities that deliver affordable housing.
MR. KOLEROK said that Alaska's housing needs are diverse but
that there aren't enough homes for everyone or for those who
earn a low income. The Alaska Housing Finance Corporation's
2019 housing assessment said that Alaska needs over 16,000
housing units to address overcrowding, he said, which present
challenges to students who study at home and those who need rest
for work. When one person has a substance abuse problem but
lives in an overcrowded home, he said, 10 or 15 other people in
the home may have their lives adversely impacted. Nearly 35
percent of homes in the Yukon-Kuskokwim region and 20 percent of
homes in the Bering Strait region have incomplete plumbing, he
said; families are left more susceptible to sickness because of
the inability to wash their hands or clothes. He said that in
Southeast Alaska 16 percent of homes are rated with a single
star for energy efficiency, along with 13 percent of homes in
the Interior and 11 percent in the Bering Strait region; this
means families spend more of their income on heating fuel.
Preserving and retrofitting homes for energy efficiency is
essential for families on limited incomes, he said.
3:47:51 PM
MR. KOLEROK stated that infrastructure is necessary for housing,
and he pointed out that Anchorage's infrastructure is outdated
and was not designed for the current population. He said that
some of the storm sewer infrastructure is a century old and made
of wood, and there are requirements that builders must upgrade
roads before they can start constructing housing; in some
instances, he said, the roads are already slated for
improvement. He said, "We have a dearth of vertical
construction in urban Alaska, and that leads into a skills gap.
As capital projects have slowed, skilled tradespeople have left
the state because there's not enough projects to keep them
continuously busy." Mr. Kolerok said that there is a constant
need to train new people, and projects are needed to take
skilled tradespeople from apprenticeship to journey status. He
said that several years' worth of capital projects are needed to
begin a self-sustaining cycle of construction and to support a
workforce, and that housing is infrastructure when speaking in
in terms of workforce, society, and economy; it is not possible
to have a well-functioning workforce that's homeless or
overcrowded. President Joe Biden's infrastructure initiative,
he said, is a "once-in-a-generation" chance for investment in
housing and infrastructure. He pointed out that infrastructure
is an eligible spending item in the Supplemental Housing
Development Grant program through the Alaska Housing Finance
Corporation (AHFC). He then talked about gap funding for low-
income housing tax credit projects; at a leverage of $20,000
per-unit, he said, would mean $10 million to pay for 500 housing
units and close the gap around housing developers needing to
upgrade infrastructure.
3:51:53 PM
REPRESENTATIVE MCCARTY asked how the increased cost of materials
affects housing projects. He then asked for alternative ways of
meeting the housing need.
MR. KOLEROK replied that there is no doubt that materials costs
have greatly increased. The large influx of federal dollars is
one of the few tools CIHA has to directly address the cost
increases, he said, with the hope that improved infrastructure
would lead to improvements in logistics.
3:54:13 PM
CRYSTAL ENKVIST, Executive Director, Alaska Power Association
(APA), testified in support of HJR 19. She said that roads,
airports, and ports won't work without electricity, and that
Alaska's electricity utilities have innovated while working in
harsh conditions. She explained that power marketing
administrations such as the Bonneville Power Administration
facilitate lower electricity costs in many areas; Alaska,
however, lacks the federal investment enjoyed by many regions in
the Lower 48. Alaska's lawmakers now have the opportunity, due
to the American Rescue Plan Act and President Joe Biden's
infrastructure bill, to plan a future that includes affordable
energy. She described the effort to transition from diesel fuel
generation to hydropower and said that infrastructure
reliability would help that effort, especially in areas not
connected to the larger grid. She said there is a need for
investment in battery energy storage systems, wind turbines,
solar and hydropower projects, and transmission lines to connect
communities. She noted the success experienced by rural
communities in their efforts to integrate wind and solar power
with battery storage backups and said federal funding gives
companies the opportunity to continue innovating.
3:58:38 PM
MS. ENKVIST said that as battery storage technology has
improved, prices have decreased, and battery systems serve to
help regulate renewable power and provide an important backup in
case a power plant goes offline. The technology has statewide
applications in communities of all sizes, she said, especially
during the winter when consistent power is critical. The
Roadbelt Intertie project would increase Alaska's electric
system reliability, she said, allowing for the integration of
more renewable energy, enhance power reliability to military
installations, provide redundancy for the Anchorage-Fairbanks
intertie, and enable economic development opportunities in the
Copper Valley region. The proposed run-of-river project in
Southwest Alaska, she said, could generate power year-round and
generate up to 20 megawatts of power, depending on seasonality
and river flow; electricity and optical fiber could be provided
to Dillingham and other area communities to support the
electricity and broadband needs in the Bristol Bay region. In
South Central Alaska, she said, the railbelt utilities and the
Alaska Energy Authority have identified more than $1 billion in
transmission upgrades, removing constraints, and allowing for
better use of the Bradley Lake hydropower project that serves
more than half of Alaska's population.
MS. ENKVIST said that renewable energy generation requires a
grid that can accommodate the full potential of such energy, as
well as for safety and reliability. "There is no doubt that
Alaska can be a leader in renewable energy," she said, "but it
will take additional funding from the renewable energy fund and
other sources to get us there." Alaska's energy utilities are
integrating renewable energy sources into their portfolios, she
said, and the Renewable Energy Fund (REF) program is an
effective way to continue investment and development to benefit
communities. Electric vehicle charging stations continue to be
installed by communities and businesses, and as more of the
barriers to electric vehicle usage are addressed, more Alaskans
will consider electric vehicle purchases. Since the vehicles
are commonly charged at night, she said, electricity loads are
occurring during off-peak hours. She pointed out that electric
vehicles are popular in small communities with limited road
miles and that the development of electric vehicle charging
infrastructure would resolve a barrier to market expansion and
inform future utility planning. "Alaska's future relies on an
electric system that can fully employ the technological advances
of tomorrow," she said, "but the time to move us in that
direction is now." She said that the economy relies on
electricity and the state must invest in strategic and necessary
upgrades statewide.
4:03:43 PM
CO-CHAIR FIELDS noted that Ms. Enkvist referenced a number of
projects that were sent to members of the House Special
Committee on Energy and asked her to send the same information
to members of the House Labor and Commerce Standing Committee.
4:04:26 PM
JIM JAGER, Director, Business Continuity and External Affairs,
Port of Alaska at Anchorage, Municipality of Anchorage,
presented a PowerPoint as part of his testimony in support of
HJR 19. He presented slide 2, which read as follows [original
punctuation provided]:
4.7 MILLION TONS OF FUEL AND CARGO IN 2020
14.3 BILLION IN STATEWIDE COMMERCIAL ACTVITY IN 2019
HANDLES GOODS CONSUNSUMED BY 90% OF ALL ALASKA
RESIDENTS STATEWIDE
HALF OF ALL ALASKA INBOUND FREIGHT CROSSES ANCHORAGE'S
DOCK
HALF OF ALL THE FREIGHT THAT CROSSES ANCHORAGE'S DOCK
IS DELIVERED TO FINAL DESTINATION OUTSIDE OF ANCHORAGE
75% OF ALL NON-PETROLEUM MARINE CARGO SHIPPED INTO
ALASKA
MR. JAGER said that cargo handling, logistics, and efficiency
are driven by proximity to markets, infrastructure for handling
the cargo, and transportation connections. He pointed out that
54 percent of Alaska's population lives within an hour's drive
of the Port of Alaska at Anchorage. He said the port handles
hundreds of millions of dollars' worth of mostly private
infrastructure as detailed on slide 3, which read as follows
[original punctuation provided]:
125+ ACRES OF CARGO-HANDLING INFRASTRUCTURE
3.1 MILLION BARRELS OF LIQUID FUEL STORAGE
60,000 TONS OF CEMENT STORAGE
DOCK CRANES, RO-RO TRESTLES, RAIL, PIPLINES, ETC.
SKILLED WORKFORCE
MR. JAGER presented slide 4, which displayed a graphic of
different modes of transportation, and explained that the marine
transportation system meets the road system, which meets the air
transportation system, railroad, and pipeline. He then
presented slide 5, which listed commerce, national defense, and
disaster response as the three functions of the Port of Alaska
at Anchorage. He presented slide 6, which displayed pictures of
corroded materials and read, "Docks have exceeded economic and
design life and are failing from age-related corrosion and
obsolescence." He said that a 2020 engineering study concluded
that load limits would need to be reduced and docks would need
to be closed within the next five years. He then presented
slide 7, "Port of Alaska Modernization Program," which read as
follows [original punctuation provided]:
? Replace aging docks and related infrastructure
? Improve operational safety and efficiency
? Accommodate modern shipping operations
? Improve resiliency to survive extreme seismic
events and Cook Inlet's harsh marine environment
MR. JAGER presented slide 8, which showed a picture from 2020 of
construction of a new dock, and slide 9, which showed a recent
picture of the finished dock.
MR. JAGER presented slide 10, "Petroleum & Cement Terminal
Funding," which read as follows [original punctuation provided]:
Remaining PIEP funds State Capital Grant (2012) $28
Million
SB160 State Grant (2013) $48 Million
State GO Bond (2013) $50 Million
State Grant (2019) $20 Million
Federal Grants
MARAD BUILD II Grant (2019) $25 Million
MARAD PIDP Grant (2019) $20 Million
Port Cash/Equity $2 Million
Bond Proceeds (repaid w/ PoA tariffs) $60 Million
MR. JAGER noted that federal funds are critical to
infrastructure. He then presented slide 11, "North Extension
Stabilization," which displayed an aerial picture of the area
slated for construction and which read as follows [original
punctuation provided]:
Phase 1 north extension stabilization $121 M
On-shore facilities replacement $15 M
Phase 2 north extension stabilization $128 M
MR. JAGER presented slide 12, "2022 construction: $121 million,"
and slide 13, "Balance of North Extension: $128 million," which
displayed the same picture as slide 11. He then presented slide
14, "What's next?", which read as follows [original punctuation
provided]:
$1 Billion+ General Cargo Terminal Replacement
? Cargo Terminal Design and Permitting (2021-24)
? Phase 1 North Extension Stabilization (2022)
? Administration Building (2022-23)
? Phase 2 North Extension Stabilization (>2022)
? Cargo Terminal 1 Replacement (2025)
? Cargo Terminal 2 Replacement (2028)
? Fuels Terminal Incorporation (>2028)
? Terminal 3 Demolition (>2030)
MR. JAGER pointed out that bonds can be repaid using tariffs,
but several large projects can't be funded by bonds, which is
why federal funding is so important.
4:12:09 PM
REPRESENTATIVE MCCARTY asked for clarification about the numbers
in slide 1.
MR. JAGER replied that 90 percent of Alaska residents routinely
use items that have come through the Port of Alaska at
Anchorage.
REPRESENTATIVE MCCARTY asked about imports.
MR. JAGER responded that 90 percent of all goods arriving in
Alaska arrive by ship or barge; the Port of Alaska at Anchorage
handles half of all types of cargo, and half of that cargo is
transferred to a different mode of transportation and sent to
other parts of the state.
REPRESENTATIVE MCCARTY talked about taking mud out of the port
area and asked for alternatives in case something happens to the
port.
MR. JAGER replied that redundancies are in place in other parts
of the country; if something happens at the Port of Tacoma there
are six other nearby seaports that can handle the cargo.
Alaska's population is too small for redundant ports, he said,
pointing out that the ports at Whittier and Seward don't have
the deep water or necessary infrastructure.
4:16:08 PM
ALICE SIIRA, Executive Director, Associated General Contractors
(AGC), presented a PowerPoint as part of her testimony in
support of HJR 19. She said AGC is looking forward to providing
input as legislators develop strategic, long-term plans to
maximize funding and prioritize critical infrastructure needs to
provide immediate economic relief and employment opportunities.
She presented slide 2, "HOW MONEY FLOWS THROUGH OUR ECONOMY,"
which displayed a graphic showing that spending by construction
companies creates indirect impacts, including vendor spending on
jobs and payroll. She then presented slide 3, "IN 2019,
ALASKA'S CONSTRUCTION INDUSTRY..." Slide 3 read as follows
[original punctuation provided]:
Employed Alaskans
? Employed 24,000 workers, including wage & salary,
and self-employed workers
81% Alaska Residents making 86% of Alaska wages
1 in 20 Alaska jobs (5%) was in construction
Paid Alaskans
? Paid $2.3 billion in labor income, or 7% of all
earnings in Alaska
Generated Multiplier Effects
? Total impacts of 42,000 jobs and $3.4 billion in
wages
? 9% of total employment in Alaska
? 10% of total labor income in Alaska
MS. SIIRA presented slide 4, "2,507 CONSTRUCTION INDUSTRY
EMPLOYERS," which displayed a table showing 2019 statistics of
2,507 total employers, 16,396 jobs, and over $1 billion in
wages.
4:19:41 PM
MS. SIIRA noted that she skipped slide 5 and moved to slide 6,
"CONSTRUCTION WAGES," which showed that wages for specialty
trade contractors total $515 million; for heavy construction,
$449 million; and for building construction, $368 million. She
pointed out that the average annual construction worker wage is
$81,258, which is 43 percent above the average Alaska wage of
$56,983. She then presented slide 7, "TOTAL ECONOMIC IMPACT,"
which read as follows [original punctuation provided]:
? Statewide construction industry-related jobs
represent 9% of all Alaska jobs (42,000 of 453,788)
? Construction industry-related activity accounted for
$3.4B in labor income, 10% of Alaska's total labor
income ($32.7B)
MS. SIIRA presented slide 8, "STATE/FEDERAL FUNDING FOR STATE OF
ALASKA CONSTRUCTION PROJECTS," which showed the portion of the
capital budget related to construction. She said that the
federal government has been the dominant source of construction
funding since 2014, as the state's capital budget has declined.
She then discussed the impacts of COVID-19 and presented slide
9, "CONSTRUCTION ACTIVITY IMPACTS," which read as follows
[original punctuation provided]:
? As essential workers, the construction industry
continued work on projects across Alaska throughout
the pandemic.
? However, due to revenue constraints, supply chain
challenges, and complicated logistics, construction
activity was significantly impacted in 2020; these
impacts are expected to continue in 2021
MR. SIIRA said that contracts worth $50 million were cancelled,
with another $50 million in deferred spending. Slide 10,
"CONSTRUCTION COMPANY IMPACTS," displayed a chart showing the
number of initial unemployment claims by construction workers;
like other industries, construction saw a notable spike in
unemployment claims in April 2020, then the number of claims
trended downward. She said construction companies spent
hundreds of millions of dollars on overtime pay, testing, and
extra housing at work sites; many construction companies were
assisted by federal stimulus funds and about 12,000 total
employees were retained. She then presented slide 11, "THE BIG
TAKEAWAYS," which read as follows [original punctuation
provided]:
24,000 construction jobs, earning $2.3 B (81% Alaska
Resident Hire and 86% Alaska Resident Wages Paid)
Total Economic Impact of Industry: 42,000 jobs (9% of
Alaska's jobs) $3.4 B (10% of Alaska earnings)
Oil prices and COVID-19 have significantly impacted
Alaska's construction activity and construction
companies
4:25:15 PM
CO-CHAIR FIELDS opined that the construction industry did an
"extraordinary" job managing COVID-19.
4:25:54 PM
REPRESENTATIVE MCCARTY asked about the supply and demand of
materials in Alaska.
MS. SIIRA replied that AGC has noticed supply chain issues that
are driving up the cost of materials. She said that employers
are getting creative and hoping that the issue levels out.
REPRESENTATIVE MCCARTY asked whether losing the rail barge out
of Prince Rupert, British Columbia, was one of the reasons for
the supply chain issues.
MS. SIIRA replied that she would find out.
[HJR 19 was held over.]
4:27:55 PM
The committee took an at-ease from 4:27 p.m. to 4:28 p.m.
[Co-Chair Fields passed the gavel to Co-Chair Spohnholz.]
HB 149-CHILD CARE PROVIDER COLLECTIVE BARGAINING
4:28:27 PM
CO-CHAIR SPOHNHOLZ announced that the next order of business
would be HOUSE BILL NO. 149, "An Act relating to allowing
certain child day care providers to organize for the purpose of
collective bargaining."
4:28:38 PM
CO-CHAIR FIELDS, as prime sponsor, stated that HB 149 would
solve the issue of persistently low wages and benefits in the
child care sector, which results in an inadequate supply of
child care workers, which in turn inhibits Alaska's ability to
economically recover from the COVID-19 pandemic. He discussed
the different models of structural change, along with their pros
and cons. The first model, he said, focuses on countries that
have high taxes and directly subsidize child care, which Alaska
wouldn't be able to afford with its current revenue. The second
option, he said, would be to create a structure for the industry
to negotiate with the state for wages and benefits as outlined
in HB 149. He noted that this model is based on the model in
place in 11 other states. It is non-coercive for workers, he
said, and the industry would be able to collaborate with the
state to adjust the cost structure according to changing
circumstances. The third model, he said, is legislative
establishment of a living wage for the child care industry, but
it would be difficult to adjust the model in response to
changing circumstances. The fourth option, he said, would be to
establish a prevailing wage covering all providers that receive
public funding. He pointed out that the construction industry
has higher-than-average wages due to public intervention to
ensure the industry's place as a middle-class profession. He
said the model would be based on established policy; however,
unlike construction, child care does not experience robust
public investment, so there may not be the market penetration
necessary to sufficiently raise wages. It's also more coercive
in terms of private sector impact, as opposed to the bargaining
structure proposed under HB 149. Of all these options, he
concluded, HB 149 outlines the option which is both the least
expensive and the least coercive.
CO-CHAIR FIELDS said key goals of HB 149 are to raise wages and
benefits to allow workers a living wage, which would make it
easier for employers to find and keep employees. This would
increase the supply of quality child care, he said, which is
important so that working professionals can help the economy
recover. Another key goal, he said, is to not increase the
already high prices of child care; the economics of the model
must also work so employers can stay in business, and a
structure must be provided for the industry to work with the
state for adaptability in response to changing circumstances.
He stated that the longstanding structural problems within the
industry, the pandemic's effect on women's participation in the
workforce, and workforce nonparticipation due to the lack of
available child care all make HB 149 necessary.
4:33:26 PM
NOLAN KLOUDA, Executive Director, Center for Economic
Development, University of Alaska, presented a PowerPoint titled
"Economics of Child Care in Alaska." He presented the overview
on slide 2, which read as follows [original punctuation
provided]:
? Economic value of child care
? Pandemic impacts
? Wages for child care workers
? Affordability of child care
MR. KLOUDA presented slide 3, "Economic impact of investing in
early childhood learning," which displayed the Heckman Curve
showing that educational investments made between birth and age
five have much higher payoffs in terms of generating positive
lifetime benefits for individuals. He clarified that early
education programs could include child care or Head Start. He
noted that investments in K-12 education and job training later
in life are important, but they produce lower benefits per
dollar invested. He then presented slide 4, "Economic impacts
of early childhood education," which displayed a graphic that
said, "High quality birth-to-five programs for disadvantaged
children can deliver a 13% Return on Investment," and which read
as follows [original punctuation provided]:
? Increased parental income
? Greater educational attainment
? Increased earnings and employment
? Fewer arrests
? Reduced likelihood of drug use
? Greater overall health
MR. KLOUDA presented slide 5, "Pandemic effects on child care in
AK," which read as follows [original punctuation provided]:
? Child care capacity in AK reduced to
? 49% in June 2020
? 75% in January 2021
? 37% of centers considered permanently closing
? 63% needed additional funding to stay open
MR. KLOUDA noted that the committee has previously demonstrated
the understanding that child care capacity has been reduced due
to the pandemic and said almost 40 percent of daycare centers
considered closing permanently, with 60 percent needing
additional funding in order to stay open.
4:38:09 PM
MR. KLOUDA pointed out the link between the availability of
child care and the ability of parents, particularly mothers, to
participate in the workforce. He presented slide 7, "Child care
and workforce participation," which read as follows [original
punctuation provided]:
? In May/June 2020, 41% of unemployed parents looking
for work said they were unable or uncertain about
returning to pre-pandemic arrangements for child care
(Urban Institute, 2020).
? "For parents with young children, the loss of
full-time childcare was associated with an increased
risk of unemployment for mothers but not fathers."
(Petts, Carlson, Pepin, 2020)
MR. KLOUDA presented slide 8, "Workers' Ability to Return to
Prepandemic Child Care Arrangements, by Employment Status,"
which displayed a graph showing the ability to return to
previous child care arrangements as a function of unemployment
status. The graph shows that those who were unemployed or laid
off, but actively seeking employment, had the biggest problems
with child care access; the workforce categories of "unemployed
but not seeking employment," "furloughed," "hours reduced," and
"working part time," had progressively decreasing degrees of
difficulty in child care access, with the category of "working
full time" experiencing the least difficulty. Mr. Klouda
pointed out that difficulty accessing child care impairs an
unemployed person's ability to accept work.
MR. KLOUDA presented slide 8, "Workforce shortfalls are among
employers' greatest concerns," which displayed a graph from the
annual Business Confidence Index Report by the Anchorage
Economic Development Corporation. The report from 2021 showed
that most of the top issues concerning businesses in Anchorage
related to the availability, affordability, and readiness of the
workforce. He then presented slide 9, "Survey of AK child care
workers," which read as follows [original punctuation provided]:
? Over 50% said pay inadequate to meet living expenses
? Passion for job, but 65% planned to leave
? 36% not compensated for professional development
? Over 70% do not receive health insurance from
employer
? 97% are women
4:42:40 PM
MR. KLOUDA presented slide 10, "Hourly pay compared," which
displayed a graphic showing that the median pay of a child care
worker in Alaska is $13.21 per hour, which is at least $10 less
than the median pay for all occupations. For points of
comparison he included two other occupations for which, like
child care, the prerequisites are a high school diploma and on-
the-job training; median pay for a corrections officer is $30.08
per hour, and $42.84 per hour for a special education teacher.
He noted that these occupations relate to the Heckman Curve, as
individuals receiving less early education are more likely to
have encounters with criminal justice and to need remedial
education, both of which cost more and are less effective than
early education. He shared that he learned that animal
caretakers are, on average, paid more than child care workers.
MR. KLOUDA presented slide 11, "National data about child care
workers," which read as follows [original punctuation provided]:
? Disproportionately women of color
? 1 in 7 live in poverty, twice the rate of other
occupations
? Almost half are in households using public
assistance programs (vs 25% of the general population)
? Cannot afford their own child care: infant care
costs equal 40-60% of the median child care worker's
earnings in most states (7% is the DHHS standard)
MR. KLOUDA said, "In a particularly cruel twist of fate, most
... could not afford child care on their own, because the
typical child care would cost about 40 to 60 percent of what
they make in wages." He pointed out that the standard published
by the U.S. Department of Health and Human Services is that
approximately 7 percent of income should be budgeted for child
care. He then presented slide 12, "How can costs be high but
wages so low?" Slide 12 read as follows [original punctuation
provided]:
? Highly labor intensive: 1 teacher for 4 infants
? Wages and benefits are almost 70% of costs
? At $12,000 per year per child, center collects
$48,000 in fees per teacher
? Subtract administration, rent, utilities, insurance,
materials, etc
? Leaves about $30,000 to pay staff (including admin
and support staff other than teachers!)
MR. KLOUDA pointed out that economies of scale don't function in
the child care industry because handling more children means
hiring more child care workers. He then presented slide 13,
which displayed a graph showing a breakdown of personnel costs,
noting that they're higher for those caring for infants and are
approximately 70 percent of a daycare's total cost. He
proceeded to slide 14, which read as follows [original
punctuation provided]:
"...adequately compensating a highly qualified
workforce is a mathematical impossibility when public
funding is limited and parents cannot afford to pay
higher tuition rates."
MR. KLOUDA noted that there is more federal involvement in child
care under the current administration, as well as tax credits
and funds available through block grants to the state.
4:48:30 PM
REPRESENTATIVE MCCARTY asked for statistical information on
child care businesses, licensed in-home operations, unlicensed
in-home operations, and stay-at-home parents.
MR. KLOUDA responded that he doesn't have such information on
hand.
REPRESENTATIVE MCCARTY asked what the worker to child ratio is
for toddlers.
MR. KLOUDA responded that he doesn't know the exact ratio for
the licensing requirements in Alaska, but said the ratio becomes
more lenient as kids get older and require less care.
CO-CHAIR SPOHNHOLZ interjected that child care prices tend to
decrease as the ratios get higher.
REPRESENTATIVE MCCARTY asked about the ratio of infants to older
children.
MR. KLOUDA replied that he doesn't know the breakdown of the
ages of kids in the daycare system, but that most child care
research is focused on the ages of birth to age five.
4:51:05 PM
CO-CHAIR FIELDS said that it's harder to find a spot for infants
because the economics are more challenging for a child care
provider. He said it's easier to find care once a child reaches
15 months.
CO-CHAIR SPOHNHOLZ added that the cost is due to the licensing
requirements mandating a certain ratio for workers to children.
CO-CHAIR FIELDS opined that there will never be a provider that
accepts only infants because that facility would not survive.
He explained that a facility that accepts infants and toddlers
makes enough money taking care of the toddlers to subsidize
infant care.
CO-CHAIR SPOHNHOLZ asked Representative McCarty to clarify his
earlier question about child care businesses, noting that even
an in-home provider is a child care business.
4:53:04 PM
REPRESENTATIVE MCCARTY said that he was trying to differentiate
between a child care operation in an "office," in-home child
care operation, and unlicensed providers. He shared an anecdote
of a child care facility that recently stated to him its belief
that it was turning away business because they can't hire
employees because people are making more money on unemployment.
CO-CHAIR SPOHNHOLZ reminded the committee that it is illegal to
decline appropriate employment when an individual is collecting
unemployment. She pointed out that the additional wage
replacement for unemployment expires in September, meaning the
state will revert to the traditional wage replacement value of
49 percent for a minimum-wage worker, which is what many child
care workers are. She then pointed out that Mr. Klouda's
research found that 50 percent of child care workers are on
public assistance.
4:55:14 PM
REPRESENTATIVE KAUFMAN noted a 2012 study from Rutgers
University and asked Mr. Klouda if he has studied the child care
industry in "more free-market states."
MR. KLOUDA responded that he doesn't study many other states.
Low wage states, he said, would be expected to have cheaper
child care due to an overall lower average wage. He
hypothesized about licensing requirements allowing more children
per worker and explained that the main variables are the cost of
labor and the number of children per workers.
REPRESENTATIVE KAUFMAN commented that he suspects there could be
other factors and talked about population growth in Texas and
Florida.
4:58:15 PM
CO-CHAIR FIELDS noted that the biggest cost driver is the ratio
of teacher to child, which is fairly consistent across most
states.
4:58:52 PM
REPRESENTATIVE MCCARTY asked whether there would be an economic
difference if the ratio changed by one child.
CO-CHAIR FIELDS responded yes, which is why providers are more
likely to stay in business taking care of toddlers. He said
that it wouldn't be desirable to increase the number of children
per worker when discussing infant care due to safety issues.
4:59:53 PM
CO-CHAIR SPOHNHOLZ pointed out that it is very difficult to care
for more than four infants at a time.
5:00:43 PM
CO-CHAIR SPOHNHOLZ opened public testimony on HB 149. After
ascertaining that no one wished to testify, she closed public
testimony.
5:01:09 PM
REPRESENTATIVE SCHRAGE moved to report HB 149 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 149 was reported out of the
House Labor and Commerce Standing Committee
HB 146-DISCLOSURE OF WAGE INFORMATION
5:01:38 PM
CO-CHAIR SPOHNHOLZ announced that the next order of business
would be HOUSE BILL NO. 146, "An Act relating to disclosure of
information regarding employee compensation by employers,
employees, and applicants for employment; establishing the fund
for protection of compensation disclosure rights; and providing
for an effective date." [Before the committee, adopted as the
working document during the 4/23/21 House Labor and Commerce
Standing Committee meeting, was the proposed committee
substitute (CS) for HB 146, Version 32-LS0513\B, Wayne, 4/19/21
("Version B").]
5:02:04 PM
REPRESENTATIVE SNYDER, as prime sponsor of HB 146, addressed
several concerns with the proposed legislation that were brought
up during the House Labor and Commerce Standing Committee
meeting on April 23, 2021. She referenced a document [included
in the committee packet] that included a table of states with
similar legislation, population, policy description, and fiscal
impact. She expressed that HB 146 is important because, when
the economic impacts of the COVID-19 pandemic are being
addressed, people are entering into or returning to the
workforce after a prolonged absence; those people, she said, are
likely to experience something called "wage scarring," which is
a well-documented issue in which someone returns to the
workforce at a depressed rate of pay after a prolonged period of
unemployment. This depressed rate of pay, she said, is then
used to inform future salary offers; an initial depressed rate
of pay can follow a worker for decades, regardless of his/her
performance in the workplace and in spite of any future larger
economic recovery. She said that after the "Great Recession" of
2007-2009 the average decrease in inflation-adjusted weekly
earnings was 17.5 percent, and only one in four displaced
workers got back to their original earnings within five years.
REPRESENTATIVE SNYDER said that national unemployment hit 10
percent during the Great Recession; Alaska's unemployment rate
over the past year was 12 percent, with some regions
experiencing over 20 percent unemployment. The hardest-hit
occupations, with employment reductions of between 25 and 35
percent, she said, were the industries of mining and logging,
oil and gas, and leisure and hospitality. She encouraged the
committee to consider not only those returning to the workforce
after a period of unemployment but also new high school or
vocational school graduates who are just entering the workforce
and are more likely to be offered a depressed rate of pay and
will, under current law, be more likely to be penalized forward
into their careers. She stated that HB 146, with its provisions
to protect pay history privacy, pay transparency, and pay
posting, would help reduce the impacts of wage scarring by
ensuring that workers get to be on the same road to recovery as
businesses. She stressed that the proposed legislation would
not require businesses to offer salaries they can't afford, but
that it would give workers the opportunity for economic recovery
alongside their employers.
5:08:08 PM
REPRESENTATIVE KAUFMAN characterized the text of HB 146 as
requiring the employer to disclose salaries but said that in the
next subsection it says that nothing requires the employee to
make the same disclosure. He said that the language "outs" the
employee's pay range by default.
REPRESENTATIVE SNYDER responded that the language says "range of
salaries" but does not say that specific wage information would
be required.
REPRESENTATIVE KAUFMAN commented that the language would still
force the disclosure of salaries.
REPRESENTATIVE SNYDER replied, "That is correct, it's a
component of the bill."
5:10:34 PM
CO-CHAIR SPOHNHOLZ commented that employers are not currently
required to disclose information, but employees are often put
into situations in which they feel they have no choice but to
disclose their salary history in order to be considered for a
position. She said this proposed legislation is designed to
create more transparency, as well as protection, for the
applicant.
REPRESENTATIVE SNYDER said, "It creates a sense of balance."
5:11:09 PM
REPRESENTATIVE MCCARTY said, "I'm not quite catching the
balance." He characterized the proposed legislation as putting
more burden on the employer and opined that the process of
searching for an employee is "equitable" to both employer and
potential employee. He then expressed concerns with having the
state involved in a business's hiring practices and mentioned
the possibility of meritless complaints.
REPRESENTATIVE SNYDER responded that, with respect to a
complaint, the language of HB 146 "very narrowly" defines what
complaints could be covered. If the complaint is that the pay
range is not posted, she said, the employer may correct the
posting and without being fined. If the complaint is that an
employer asked an applicant for a salary history, then the
employer could be fined. She stressed that the language does
not open the door for complaints stemming from an applicant
being unsatisfied with the salary range they were offered. She
said the language of the proposed legislation gives the
Department of Labor and Workforce Development (DLWD) the
authority to decide how complaints would be handled. She then
addressed Representative McCarty's comment regarding balance and
said:
I would argue that the way it is now, the scales are
definitely tipped on the side of the employer. They
are aware of the pay range. They are aware of how
much higher they might be willing to go and what
flexibility they have. They, right now, can ask about
past pay history and use that information to inform
how they're going to treat a suite of applicants and
decide ... what the size of the offer is, to whom.
Those are some pretty significant imbalances from my
perspective.
REPRESENTATIVE SNYDER said that the term is "information
asymmetry" and said the proposed legislation is intended to
bring symmetry, allowing both parties to have a productive
conversation.
5:16:02 PM
CO-CHAIR FIELDS commented that the Young Women's Christian
Association (YWCA) began an equal pay initiative in 2014 aimed
at addressing the pay gap. He said that the wage scarring issue
is pernicious for women, and that minor differences in pay
beginning at a young age contribute to a large aggregate pay
gap. He said there was a large group of businesses that
voluntarily implemented the pay transparency measures as
described in HB 146 and as a result, he said, it became clear
that the provisions in the proposed legislation would make a
significant difference in addressing the pay gap. He discussed
issues of unconscious gender bias such as occupational sorting
and women being forced out of the workforce due to the lack of
available child care.
5:18:25 PM
CO-CHAIR SPOHNHOLZ noted that the committee will hear from DLWD
about the gender pay gap.
5:18:43 PM
CO-CHAIR SPOHNHOLZ opened public testimony on HB 146, Version B.
5:18:54 PM
KIM HAYS, Political Director, American Federation of Labor -
Congress of Industrial Organizations (AFL-CIO), testified in
support of HB 146. She stated the AFL-CIO's support for
measures that protect Alaska's workers, including protection
from practices that discriminate against them in the workplace.
She said the National Labor Relations Act of 1935 already
includes a statute prohibiting employers from retaliating
against employees who share compensation information with their
colleagues, but employers have repeatedly violated the law with
no consequences. She stated support for the provision
prohibiting employers from requiring salary history, noting that
when individuals are required to provide such information but
not provided the salary range for the position for which they
are applying, their earning potential is harmed. She noted that
this is particularly true for women and said that, according to
a 2020 study by Boston University School of Law, such provisions
enacted in other states have resulted in 8 percent higher pay
for women and 13 percent higher pay for African-American job
candidates.
MS. HAYS stated that requiring employers to include compensation
ranges on job postings saves employers the time of interviewing
candidates who wouldn't be interested in the compensation
package and saves potential employees time by focusing their
resources on looking for jobs that offer the wages they need to
support themselves. She said that the Society for Human
Resource Managers recognizes the gender pay gap and, in 2020,
published support for wage transparency, saying that it
"virtually eliminates the gender pay gap."
5:21:20 PM
CO-CHAIR SPOHNHOLZ, after ascertaining that no one else wished
to testify, closed public testimony on HB 146, Version B.
5:21:36 PM
REPRESENTATIVE NELSON moved to adopt Amendment 1 to HB 146,
Version B, labeled 32-LS0513\B.1, Wayne, 4/27/21, which read as
follows:
Page 1, line 2:
Delete ", employees,"
Page 2, line 8:
Delete "Employee"
Page 2, lines 14 - 16:
Delete all material.
Page 2, line 17:
Delete "(2)"
Page 2, line 18:
Delete "; or"
Insert "."
Page 2, lines 19 - 20:
Delete all material.
Page 2, lines 22 - 24:
Delete all material.
Renumber the following paragraphs accordingly.
Page 2, line 25:
Delete "employee or"
Page 2, line 26:
Delete "employee or"
Page 2, line 29:
Delete "(2)"
Insert "(1)"
Page 2, line 30:
Delete "employee or"
Page 3, lines 7 - 8:
Delete "exercising a right under AS 23.10.700 -
23.10.740 or"
5:21:41 PM
REPRESENTATIVE SCHRAGE objected.
5:21:45 PM
REPRESENTATIVE NELSON stated his support for the proposed
legislation but said that he couldn't justify a $316,000 fiscal
note to his constituents.
5:22:31 PM
REPRESENTATIVE SNYDER asked Representative Nelson to describe
the changes that would be made by Amendment 1.
REPRESENTATIVE NELSON explained that Amendment 1 would "remove
the reporting structure of the aspect." He said the deleted
lines would be ones that reference employees reporting
infractions to DLWD. He said that the reporting structure is
the reason for the fiscal note.
CO-CHAIR SPOHNHOLZ said, "Just to clarify, you've removed the
enforcement mechanisms in the bill?"
REPRESENTATIVE NELSON replied, "I removed what was going to
cause an additional three employees to be added."
REPRESENTATIVE SNYDER expressed her appreciation for the effort
to reduce the fiscal note but said that Amendment 1, by deleting
lines 14-16 on page 2, would remove the language saying that an
employer may not prohibit an employee from discussing his/her
compensation with others. She pointed out that it would also
remove the prohibition about asking about previous compensation.
She said, "It essentially removes the gist of the bill."
REPRESENTATIVE NELSON referred to a line in the sponsor
statement that read, "Federal law already requires that workers
are free to discuss salary information with one another, and HB
146 incorporates this protection into state statute." He said
he was just trying to reduce the fiscal note.
REPRESENTATIVE SNYDER responded, "I do appreciate the effort."
5:24:49 PM
CO-CHAIR FIELDS shared that the enforcement section of DLWD is
already understaffed due to laws already in statute. He
suggested passing HB 146 and fighting for additional resources
in next year's budget. He said that the proposed legislation
could be passed with zero enforcement cost; enforcement would be
slower, he said, but having the expectation for employers would
still be of benefit.
5:25:43 PM
CO-CHAIR SPOHNHOLZ asked Mr. Dunham how many Wage and Hour
Administration enforcement employees are currently on staff.
5:25:57 PM
JOE DUNHAM, Chief Investigator, Wage and Hour Administration,
Division of Labor Standards and Safety, Department of Labor and
Workforce Development, responded that there are currently 12
employees.
CO-CHAIR SPOHNHOLZ asked Mr. Dunham to clarify whether he is
proposing increasing the Wage and Hour Administration
enforcement staff by 25 percent.
MR. DUNHAM replied, "Correct. Three people for the first year."
CO-CHAIR SPOHNHOLZ commented that the number of new employees
seems disproportionate to the amount of workload expected in the
first year.
5:26:45 PM
A roll call vote was taken. Representative Nelson voted in
favor of Amendment 1 to HB 146. Representatives Spohnholz,
Fields, Snyder, Schrage, McCarty, and Kaufman voted against it.
Therefore, Amendment 1 failed to be adopted by a vote of 1-6.
5:28:15 PM
CO-CHAIR FIELDS moved to report CSHB 146, Version 32-LS0513\B,
Wayne, 4/19/21, out of committee with individual recommendations
and the accompanying fiscal notes.
5:28:30 PM
REPRESENTATIVE NELSON objected.
5:28:35 PM
A roll call vote was taken. Representatives Fields, Spohnholz,
Snyder, and Schrage voted in favor of moving CSHB 146, Version
32-LS0513\B, Wayne, 4/19/21, out of committee with individual
recommendations and the accompanying fiscal notes.
Representatives Nelson, Kaufman, and McCarty voted against it.
Therefore, CSHB 146(L&C) was reported out of the House Labor and
Commerce Standing Committee by a vote of 4-3.
^CONFIRMATION HEARING(S):
^CONFIRMATION HEARING(S):
^Board of Direct Entry Midwives
Board of Direct Entry Midwives
^Marijuana Control Board
Marijuana Control Board
^Occupational Safety and Health Review Board
Occupational Safety and Health Review Board
5:29:26 PM
CO-CHAIR SPOHNHOLZ announced that the final order of business
would be confirmation hearings for consideration of the
governor's appointees to the Board of Direct Entry Midwives, the
Marijuana Control Board, and the Occupational Safety and Health
Review Board. [The confirmation hearings commenced on 4/26/21.]
CO-CHAIR SPOHNHOLZ stated that the House Labor and Commerce
Standing Committee has reviewed the qualifications of the
governor's appointees and recommends that the names be forwarded
to a joint session for consideration: Tanya Kirk, Board of
Direct Entry Midwives; Casey Dschaak, Marijuana Control Board;
and Vincent Perez, Occupational Safety and Health Review Board.
She said that signing the report regarding appointments to
boards and commissions in no way reflects an individual member's
approval or disapproval of the appointee, and the nomination is
merely forwarded to the full legislature for confirmation or
rejection.
5:30:39 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
5:31 p.m.