Legislature(2017 - 2018)SENATE FINANCE 532

04/14/2017 01:30 PM FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as
Download Video part 1. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 49 EXTEND BOARD OF DIRECT-ENTRY MIDWIVES TELECONFERENCED
Moved SCS CSHB 49(L&C) Out of Committee
Uniform Rule 23 Waived
+ HB 141 AK WORKFORCE INVESTMENT BOARD;FUNDS TELECONFERENCED
Heard & Held
Uniform Rule 23 Waived
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 104 EDUCATION CURRICULUM TELECONFERENCED
Moved CSSB 104(FIN) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 14, 2017                                                                                            
                         1:39 p.m.                                                                                              
                                                                                                                                
1:39:24 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 1:39 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Shelley Hughes                                                                                                          
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Brittany  Hutchison,   Staff,  Senator   MacKinnon;  Michael                                                                    
Johnson,  Commissioner, Department  of  Education and  Early                                                                    
Development;   Heidi   Teshner,   Director,   Administrative                                                                    
Services,  Department of  Education  and Early  Development;                                                                    
Paul  Prussing,  Director,  Division  of  Student  Learning,                                                                    
Department of  Education; Representative Sam  Kito, Sponsor;                                                                    
Kris  Curtis,   Legislative  Auditor,  Alaska   Division  of                                                                    
Legislative Audit; Sara  Chambers, Deputy Director, Division                                                                    
of  Corporations,  Business,   and  Professional  Licensing,                                                                    
Department of Commerce,  Community and Economic Development;                                                                    
Johanna  Crossett,   Midwife,  Juneau;   Madi  Nolan-Grimes,                                                                    
Midwife, Juneau; Representative  Zach Fansler, Sponsor; Mary                                                                    
Schlosser, Staff, Representative  Zach Fansler; Greg Cashen,                                                                    
Deputy  Commissioner,  Department  of  Labor  and  Workforce                                                                    
Development;   Paloma   Harbour,   Director,   Division   of                                                                    
Administrative Services,  Department of Labor  and Workforce                                                                    
Development; Juli Lucky, Staff, Senator Anna MacKinnon.                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Deborah  Schnider,  Board  of Midwives,  Anchorage;  Suzanne                                                                    
Trewilliger,  President,  Midwives  Association  of  Alaska,                                                                    
Eagle  River; Doug  Walrath,  Director, Northwestern  Alaska                                                                    
Technical Center, Nome;  Dennis Dishion, Executive Director,                                                                    
Yuut   Elitnaurviat,  Bethel;   Annette  Caruso,   Executive                                                                    
Director, Southwest Alaska  Vocational and Education Center,                                                                    
King Salmon;  Pearl Brower, Ilisagvik College,  Barrow; Fred                                                                    
Villa,   Associate  Vice   President,  Workforce   Programs,                                                                    
University of Alaska,  Fairbanks; Cheryl Edenshaw, Director,                                                                    
Alaska   Technical  Center,   Kotzebue;  Joey   Crum,  Self,                                                                    
Anchorage; Cathy  LeCompte, Director, Alaska  Vocational and                                                                    
Technical Center, Seward;  Paul Prussing, Director, Division                                                                    
of  Student  Learning,  Department of  Education  and  Early                                                                    
Development.                                                                                                                    
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 104    EDUCATION CURRICULUM                                                                                                  
                                                                                                                                
          CSSB 104(FIN)  was REPORTED out of  committee with                                                                    
          a  "do  pass"  recommendation  and  with  one  new                                                                    
          fiscal note  from the Department of  Education and                                                                    
          Early Development.                                                                                                    
                                                                                                                                
          [Note:  Action   to  report  CSSB   104(FIN)  from                                                                    
          committee  was  later  rescinded on  February  22,                                                                    
          2018  for  further  consideration  by  the  Senate                                                                    
          Finance Committee.]                                                                                                   
                                                                                                                                
CSHB 49(FIN)                                                                                                                    
          EXTEND BOARD OF DIRECT-ENTRY MIDWIVES                                                                                 
                                                                                                                                
          SCS  CSHB 49(L&C)  was REPORTED  out of  committee                                                                    
          with  a  "do  pass" recommendation  and  with  one                                                                    
          previously  published  fiscal   impact  note:  FIN                                                                    
          1(CED).                                                                                                               
                                                                                                                                
HB 141    AK WORKFORCE INVESTMENT BOARD;FUNDS                                                                                   
                                                                                                                                
          HB  141  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
SENATE BILL NO. 104                                                                                                           
                                                                                                                                
     "An Act  relating to the  duties of the state  Board of                                                                    
     Education  and  Early   Development;  and  relating  to                                                                    
     school curriculum."                                                                                                        
                                                                                                                                
1:40:41 PM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop MOVED Conceptual Amendment 1 (copy on                                                                         
file):                                                                                                                          
                                                                                                                                
     Page 1, line 6, following "review"                                                                                         
     Delete "test"                                                                                                              
                                                                                                                                
     Page 1, line 9, following "curricula"                                                                                      
     Insert the word "currently".                                                                                               
                                                                                                                                
     Page 2, Lines 3-5, following "state"                                                                                       
     Delete  "The department  shall implement  a program  to                                                                    
     test   the  curricula   during   the  two   immediately                                                                    
     succeeding  school years  in  the  five largest  school                                                                    
     districts based  on the district ADM  for the 2015-2016                                                                    
     school year."                                                                                                              
                                                                                                                                
     Page 2, lines 6-7, following "if"                                                                                          
     Delete "after testing under (c) of this section."                                                                          
                                                                                                                                
     Page 2, following line                                                                                                     
     Insert a new section to read                                                                                               
                                                                                                                                
     "* Sec.  2. The uncodified  law of the State  of Alaska                                                                    
     is amended by adding a new section to read:                                                                                
                                                                                                                                
     "REPORT ON CURRICULUM. The  Department of Education and                                                                    
     Early Development  20 shall  submit to  the legislature                                                                    
     an electronic  report, and  make the  report publically                                                                    
     available on the department's  website. The report will                                                                    
     provide information on the  curriculum that each school                                                                    
     district has  adopted. On or  before July 1,  2018, and                                                                    
     each year  thereafter, the department shall  submit the                                                                    
     report  required  under  this  section  to  the  senate                                                                    
     secretary  and   the  chief  clerk  of   the  house  of                                                                    
     representatives  and notify  the  legislature that  the                                                                    
     report is available."                                                                                                      
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
1:41:03 PM                                                                                                                    
                                                                                                                                
BRITTANY HUTCHISON, STAFF,  SENATOR MACKINNON, explained the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Vice-Chair Bishop queried the deletion of the word "test."                                                                      
                                                                                                                                
MICHAEL JOHNSON,  COMMISSIONER, DEPARTMENT OF  EDUCATION AND                                                                    
EARLY DEVELOPMENT,  responded that  the testing  of students                                                                    
and  curriculum were  two different  things. He  stated that                                                                    
the  vetting  of curriculum  would  still  occur within  the                                                                    
districts without the use of the word "test."                                                                                   
                                                                                                                                
Co-Chair MacKinnon WITHDREW her OBJECTION.                                                                                      
                                                                                                                                
Co-Chair MacKinnon queried comments.                                                                                            
                                                                                                                                
Commissioner   Johnson  thanked   the   committee  for   the                                                                    
legislation. He  stressed that effective curriculum  was one                                                                    
of  the  fundamental  components of  teaching  students.  He                                                                    
remarked that  assisting districts by  providing flexibility                                                                    
in  the curriculum  review process  was  helpful during  the                                                                    
time  of   necessary  efficiencies,  and  was   helpful  for                                                                    
families   to  have   more   information  about   curriculum                                                                    
materials adopted by the local school boards.                                                                                   
                                                                                                                                
Co-Chair MacKinnon stated that  there would be a forthcoming                                                                    
fiscal note.                                                                                                                    
                                                                                                                                
1:48:05 PM                                                                                                                    
                                                                                                                                
Senator  von  Imhof noted  that  the  bill stated  that  the                                                                    
Department of  Education and Early Development  (DEED) would                                                                    
be required  to review  curricula used  in other  states and                                                                    
countries,  and  by 2019  identify  the  best practices  for                                                                    
teaching math  and language  arts at  each grade  level. She                                                                    
queried  the  challenges  that  may  occur  in  the  process                                                                    
outlined in  the fiscal  note. Commissioner  Johnson replied                                                                    
that  the  fiscal note  reflected  the  need for  additional                                                                    
staff to accomplish the intent of the bill.                                                                                     
                                                                                                                                
Senator   von   Imhof   noted  the   line   item,   "Program                                                                    
Administration and  Operations" with  83 individuals  for FY                                                                    
18. She queried the details of that line item.                                                                                  
                                                                                                                                
1:50:08 PM                                                                                                                    
                                                                                                                                
HEIDI    TESHNER,    DIRECTOR,   ADMINISTRATIVE    SERVICES,                                                                    
DEPARTMENT OF  EDUCATION AND EARLY DEVELOPMENT,  stated that                                                                    
the  line item  was the  Alaska Commission  on Postsecondary                                                                    
Education,  which  was a  corporation  to  handle loans  and                                                                    
grants within DEED.                                                                                                             
                                                                                                                                
Senator  von   Imhof  surmised  that  cutting   budgets  for                                                                    
curriculum was wrong.                                                                                                           
                                                                                                                                
1:51:38 PM                                                                                                                    
                                                                                                                                
PAUL  PRUSSING,  DIRECTOR,  DIVISION  OF  STUDENT  LEARNING,                                                                    
DEPARTMENT  OF  EDUCATION, stated  that  the  intent was  to                                                                    
assist  districts   in  aligning   to  the   new  curriculum                                                                    
standards.                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon   requested  a  new  fiscal   note.  Mr.                                                                    
Prussing replied  he would  provide the  fiscal note  in the                                                                    
afternoon.                                                                                                                      
                                                                                                                                
Vice-Chair  Bishop  hoped  that  DEED would  work  with  the                                                                    
University to align curriculum standards.                                                                                       
                                                                                                                                
Senator Hughes remarked that there  was confusion about DEED                                                                    
making the curriculum available  to all school districts and                                                                    
the  costs related  to materials.  She wondered  whether the                                                                    
state was purchasing all the materials for the schools.                                                                         
                                                                                                                                
Co-Chair MacKinnon replied in the negative.                                                                                     
                                                                                                                                
Ms. Hutchison  announced that the  state would  not purchase                                                                    
the curriculum.                                                                                                                 
                                                                                                                                
Senator  Hughes  felt  that  DEED  may  have  had  incorrect                                                                    
information in a previous committee.                                                                                            
                                                                                                                                
Ms.  Hutchison  stated  that  DEED  had  been  helpful,  and                                                                    
communication   had   enhanced  throughout   the   committee                                                                    
process.                                                                                                                        
                                                                                                                                
SB  104  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
1:56:11 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:58:16 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 49(FIN)                                                                                                 
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Certified Direct-Entry Midwives; and providing for an                                                                      
     effective date."                                                                                                           
                                                                                                                                
1:58:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SAM    KITO,   SPONSOR,    introduced   the                                                                    
legislation. He  stated that the bill  provided an extension                                                                    
of Board  of Certified  Direct-Entry Midwives  through 2021,                                                                    
which was the recommended extension from Legislative Audit.                                                                     
                                                                                                                                
1:59:53 PM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT, shared that  there was an audit available                                                                    
dated  2016 (copy  on file).  The last  sunset audit  of the                                                                    
board was  conducted in 2014.  At that time the  Division of                                                                    
Corporation,  Business, and  Professional Licensing  (DCBPL)                                                                    
investigative    staff    had   not    actively    processed                                                                    
investigations that  posed a public safety  risk. After that                                                                    
audit was released,  the board was only  extended two years.                                                                    
The most recent  audit found that the  board was effectively                                                                    
licensing  and regulating  certified  direct entry  midwives                                                                    
and  midwife apprentices,  and she  recommended a  four-year                                                                    
extension. He  stated that  there were  four recommendations                                                                    
located in the audit document.                                                                                                  
                                                                                                                                
2:04:28 PM                                                                                                                    
                                                                                                                                
Senator  Olson queried  the reasons  for  the deficits.  Ms.                                                                    
Curtis   replied  that   the   board   had  struggled   with                                                                    
investigative fees.                                                                                                             
                                                                                                                                
Senator Olson  wondered whether there were  lawsuits related                                                                    
to malpractice  of midwives. Ms.  Curtis replied  that there                                                                    
were  four cases  involving two  individuals  that were  not                                                                    
moving  forward  and  resulted   in  additional  costs.  She                                                                    
stressed that the audit did  not typically go into detail on                                                                    
investigative cases.                                                                                                            
                                                                                                                                
Senator  Olson wondered  whether  did not  pursue a  license                                                                    
because  of  the  high  fee.  Ms.  Curtis  deferred  to  the                                                                    
department.                                                                                                                     
                                                                                                                                
Senator Olson  asked whether there  were any mergers  of the                                                                    
boards for  economic reasons in  the state or  other states.                                                                    
Ms. Curtis replied that there were no recent board mergers.                                                                     
                                                                                                                                
Senator Hughes  wondered whether the investigations  were of                                                                    
licensed  individuals  or  fraudulent midwives.  Ms.  Curtis                                                                    
that, historically, there was a mixture of both.                                                                                
                                                                                                                                
2:07:48 PM                                                                                                                    
                                                                                                                                
SARA  CHAMBERS, DEPUTY  DIRECTOR, DIVISION  OF CORPORATIONS,                                                                    
BUSINESS,   AND   PROFESSIONAL  LICENSING,   DEPARTMENT   OF                                                                    
COMMERCE,  COMMUNITY AND  ECONOMIC DEVELOPMENT,  shared that                                                                    
the department concurred with the  first two findings in the                                                                    
audit regarding  administrative errors and fees.  She stated                                                                    
that there was a fee  increase to $3800 for fully authorized                                                                    
midwives, and  under $2000 for apprentices.  She stated that                                                                    
there  were  no  documented  departures  from  the  industry                                                                    
because  of the  fees,  but it  was a  fairly  new fee.  She                                                                    
stated that the board  only have approximately 50 licensees,                                                                    
so  there was  an  economy of  scale  issue with  unlicensed                                                                    
practice and some standard of care investigations.                                                                              
                                                                                                                                
Co-Chair MacKinnon  shared that  Senator Olson  had valuable                                                                    
medical expertise.                                                                                                              
                                                                                                                                
Senator Olson  wondered whether  the licensees  included the                                                                    
apprentices. Ms. Chambers responded  in the affirmative. She                                                                    
stated  that  the  latest  numbers   for  the  fee  analysis                                                                    
indicated  that there  were 43  fully licensed  midwives and                                                                    
approximately 20 apprentices.                                                                                                   
                                                                                                                                
Senator Olson  wondered whether the investigations  were for                                                                    
midwives  or apprentices.  Ms.  Chambers  agreed to  provide                                                                    
that information, but  midwives had fiduciary responsibility                                                                    
over apprentices.                                                                                                               
                                                                                                                                
Senator Hughes  queried the  licensure fees  for physicians,                                                                    
nurses, and  nurse practitioners. Ms. Chambers  replied that                                                                    
the physician  fee was $300,  physician assistant's  fee was                                                                    
$200, nurse's fee was approximately $200.                                                                                       
                                                                                                                                
Senator  Hughes noted  that  midwives  paid a  significantly                                                                    
larger license fee, and thanked them for their dedication.                                                                      
                                                                                                                                
2:13:54 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon wondered  whether  the department  could                                                                    
advance  the concern  that was  listed from  the officer  to                                                                    
either the  presiding officers, Labor  and Commerce,  or the                                                                    
appropriate  chairman.   She  remarked  that  there   was  a                                                                    
liability for choosing to use a midwife.                                                                                        
                                                                                                                                
Co-Chair Hoffman remarked that the  bill only dealt with the                                                                    
extension. He felt that  addressing the third recommendation                                                                    
in the  audit may  require work from  the Senate  Health and                                                                    
Social Services Committee.                                                                                                      
                                                                                                                                
Co-Chair MacKinnon agreed.                                                                                                      
                                                                                                                                
Senator  Micciche wondered  how  long it  took  to build  an                                                                    
operation  deficit of  $183,083. Ms.  Chambers replied  that                                                                    
the board  has had a deficit  since 2012 of $65,000  and had                                                                    
grown  annually until  the most  recent  renewal cycle.  The                                                                    
deficit began to  reduce because of the  increased fees. She                                                                    
remarked that  the fees  were dropped in  2009, but  did not                                                                    
know the rationale for lowering the fee at that time.                                                                           
                                                                                                                                
Senator  Micciche  wondered  whether  the  four-year  sunset                                                                    
renewal was too  long, because the board  should continue to                                                                    
be investigated.                                                                                                                
                                                                                                                                
Senator  Olson supported  keeping  independent midwives.  He                                                                    
queried the  estimated forecast.  Ms. Chambers  replied that                                                                    
there was a fee analysis  to address the issues with setting                                                                    
fees. She  stated that,  assuming that  the fees  remain the                                                                    
same, the board's deficit would be eliminated by FY 21.                                                                         
                                                                                                                                
2:22:31 PM                                                                                                                    
                                                                                                                                
DEBORAH   SCHNIDER,  BOARD   OF  MIDWIVES,   ANCHORAGE  (via                                                                    
teleconference), testified in support of the bill.                                                                              
                                                                                                                                
2:24:21 PM                                                                                                                    
                                                                                                                                
JOHANNA CROSSETT,  MIDWIFE, JUNEAU, spoke in  support of the                                                                    
bill.                                                                                                                           
                                                                                                                                
Senator Micciche  queried whether  there was support  of the                                                                    
licensees covering the deficit.  Ms. Crossett replied in the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Vice-Chair Bishop  wondered whether  the midwives  might not                                                                    
want  to  pay the  fee,  and  stop licensing.  Ms.  Crossett                                                                    
replied that  the initial proposed licensing  fee was $4700.                                                                    
The  reduction to  $3800 was  a good  compromise. She  hoped                                                                    
that there would not be another fee increase.                                                                                   
                                                                                                                                
2:26:25 PM                                                                                                                    
                                                                                                                                
MADI NOLAN-GRIMES, MIDWIFE, JUNEAU,  spoke in support of the                                                                    
bill.                                                                                                                           
                                                                                                                                
2:27:21 PM                                                                                                                    
                                                                                                                                
SUZANNE  TREWILLIGER,  PRESIDENT,  MIDWIVES  ASSOCIATION  OF                                                                    
ALASKA,  EAGLE  RIVER  (via  teleconference),  testified  in                                                                    
support of the bill.                                                                                                            
                                                                                                                                
Senator  Micciche wondered  whether the  number of  midwives                                                                    
was changing. Ms. Trewilliger replied  that that there was a                                                                    
reduction of thirteen midwives, and  did not know the number                                                                    
of apprentices.                                                                                                                 
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
2:31:03 PM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop addressed the fiscal note: FN 1(CED).                                                                         
                                                                                                                                
2:32:01 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:32:48 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Bishop  MOVED to REPORT  SCS CSHB 49(L&C)  out of                                                                    
committee  with  individual   recommendations  and  attached                                                                    
fiscal note.                                                                                                                    
                                                                                                                                
SCS CSHB  49(L&C) was REPORTED  out of committee with  a "do                                                                    
pass"  recommendation  and  with  one  previously  published                                                                    
fiscal impact note: FIN 1(CED).                                                                                                 
                                                                                                                                
2:33:51 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:40:39 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 141                                                                                                            
                                                                                                                                
     "An Act relating to allocations of funding for the                                                                         
     Alaska Workforce Investment Board; and providing for                                                                       
     an effective date."                                                                                                        
                                                                                                                                
2:41:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ZACH FANSLER, SPONSOR, introduced himself.                                                                       
                                                                                                                                
MARY   SCHLOSSER,   STAFF,  REPRESENTATIVE   ZACH   FANSLER,                                                                    
introduced herself.                                                                                                             
                                                                                                                                
Representative Fansler introduced  the legislation. The bill                                                                    
was  the renewal  of funding  allocations  for ten  programs                                                                    
through  the  Technical  and  Vocational  Education  Program                                                                    
(TVEP). The purpose of the  funding was to put Alaskans back                                                                    
to work and into the  job market. The program was regionally                                                                    
aimed at  ten different  institutions across the  state. The                                                                    
institutions  concentrated on  the skills  that were  needed                                                                    
for  the  jobs  in  the  region. He  went  through  the  ten                                                                    
programs and the allocations in the bill.                                                                                       
                                                                                                                                
2:45:21 PM                                                                                                                    
                                                                                                                                
Senator von Imhof wondered whether  TVEP analyzed the number                                                                    
of people  obtained jobs after  training, and  whether those                                                                    
jobs  were retained  a  year  later. Representative  Fansler                                                                    
replied in the affirmative.                                                                                                     
                                                                                                                                
Senator Olson queried the reason  for the change to the one-                                                                    
year  extension.  Representative  Fansler  replied  that  he                                                                    
assumed  that  there  was  a   concern  about  changing  the                                                                    
reporting  requirements to  ensure  that  the programs  were                                                                    
adequately  serving   and  accomplishing  their   tasks.  He                                                                    
stressed that  there was  a hope  to provide  stable funding                                                                    
for the programs. He remarked  that the programs depended on                                                                    
the funding.                                                                                                                    
                                                                                                                                
2:50:23 PM                                                                                                                    
                                                                                                                                
Senator   Olson  stressed   that  the   concern  was   about                                                                    
addressing the same issue in a year.                                                                                            
                                                                                                                                
Co-Chair MacKinnon  queried information about the  change to                                                                    
a one-year extension.                                                                                                           
                                                                                                                                
                                                                                                                                
Senator Hughes  felt there  was a  varied cost  per student.                                                                    
She   felt   that   there  would   be   consideration   with                                                                    
recommendations  of how  to be  sure that  the dollars  were                                                                    
well spent.  The hope was  that the  funds would be  used to                                                                    
assist students  in preparation for  needed jobs.  She noted                                                                    
that there  was funding for  office training, but  there may                                                                    
be redundancies in the programs.                                                                                                
                                                                                                                                
2:55:01 PM                                                                                                                    
                                                                                                                                
Senator   Micciche   wondered    whether   there   reporting                                                                    
requirements  could  be  improved  while  the  training  was                                                                    
occurring as  normal. Representative Fansler replied  in the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Senator Micciche felt  hoped that there may  be a compromise                                                                    
on the length of effectiveness of the bill.                                                                                     
                                                                                                                                
Co-Chair MacKinnon  announced that  amendments were  due the                                                                    
following day at noon.                                                                                                          
                                                                                                                                
2:58:09 PM                                                                                                                    
                                                                                                                                
DOUG  WALRATH,   DIRECTOR,  NORTHWESTERN   ALASKA  TECHNICAL                                                                    
CENTER, NOME  (via teleconference), spoke in  support of the                                                                    
bill.                                                                                                                           
                                                                                                                                
3:00:25 PM                                                                                                                    
                                                                                                                                
DENNIS  DISHION,  EXECUTIVE   DIRECTOR,  YUUT  ELITNAURVIAT,                                                                    
BETHEL (via teleconference), he  felt that a one-year sunset                                                                    
would be detrimental to the rural training centers.                                                                             
                                                                                                                                
3:02:23 PM                                                                                                                    
                                                                                                                                
ANNETTE   CARUSO,  EXECUTIVE   DIRECTOR,  SOUTHWEST   ALASKA                                                                    
VOCATIONAL   AND   EDUCATION   CENTER,  KING   SALMON   (via                                                                    
teleconference), spoke in support of  the bill, with a five-                                                                    
year reauthorization.                                                                                                           
                                                                                                                                
3:04:32 PM                                                                                                                    
                                                                                                                                
PEARL    BROWER,    ILISAGVIK     COLLEGE,    BARROW    (via                                                                    
teleconference),  supported the  five-year extension  in the                                                                    
bill.                                                                                                                           
                                                                                                                                
3:05:24 PM                                                                                                                    
                                                                                                                                
FRED  VILLA, ASSOCIATE  VICE PRESIDENT,  WORKFORCE PROGRAMS,                                                                    
UNIVERSITY OF ALASKA,  FAIRBANKS (via teleconference), spoke                                                                    
in support of the bill.                                                                                                         
                                                                                                                                
3:07:23 PM                                                                                                                    
                                                                                                                                
CHERYL   EDENSHAW,   DIRECTOR,  ALASKA   TECHNICAL   CENTER,                                                                    
KOTZEBUE  (via  teleconference),  spoke in  support  of  the                                                                    
five-year extension in the bill.                                                                                                
                                                                                                                                
3:08:45 PM                                                                                                                    
                                                                                                                                
JOEY CRUM,  SELF, ANCHORAGE (via  teleconference), supported                                                                    
the current version  of the bill, in order  to determine the                                                                    
effectiveness of the programs.                                                                                                  
                                                                                                                                
3:11:23 PM                                                                                                                    
                                                                                                                                
CATHY  LECOMPTE, DIRECTOR,  ALASKA VOCATIONAL  AND TECHNICAL                                                                    
CENTER,  SEWARD (via  teleconference), spoke  in support  of                                                                    
the bill.                                                                                                                       
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
3:13:07 PM                                                                                                                    
                                                                                                                                
GREG CASHEN,  DEPUTY COMMISSIONER,  DEPARTMENT OF  LABOR AND                                                                    
WORKFORCE DEVELOPMENT, introduced himself.                                                                                      
                                                                                                                                
PALOMA   HARBOUR,  DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                                                                    
SERVICES,  DEPARTMENT OF  LABOR  AND WORKFORCE  DEVELOPMENT,                                                                    
introduced herself.                                                                                                             
                                                                                                                                
Co-Chair MacKinnon queried  comments regarding the reduction                                                                    
from  five years  to one  year. Mr.  Cashen replied  that an                                                                    
extension of more  than one year would  allow for stability,                                                                    
and allow for examination of the performance measures.                                                                          
                                                                                                                                
Co-Chair MacKinnon noted that  there was approximately $12.5                                                                    
million  distributed  between   the  programs.  Ms.  Harbour                                                                    
agreed. She stated  that there was an average  cost of $1215                                                                    
per student, which was an affordable training program.                                                                          
                                                                                                                                
Co-Chair  MacKinnon queried  the percentage  of unemployment                                                                    
contributions overall.  Ms. Harbour replied that  she needed                                                                    
a moment to collect that information.                                                                                           
                                                                                                                                
3:15:05 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:15:47 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
3:15:53 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  restated   her  question.  Ms.  Harbour                                                                    
replied that  the contribution that  the employee  made into                                                                    
TVEP was 0.16 percent of  their taxable wage base, which was                                                                    
a maximum  of $63.84 in  2017 per employee. She  stated that                                                                    
the overall collection percentage  in 2017 was approximately                                                                    
11 percent  of total  unemployment insurance  from employers                                                                    
and employees in 2017.                                                                                                          
                                                                                                                                
Co-Chair MacKinnon  queried comments  on the  assertion that                                                                    
there were  no clearly  defined goals  for the  program. Ms.                                                                    
Harbour replied  that there were statutory  requirements for                                                                    
reporting performance  of the program. She  noted that there                                                                    
was  an  examination  of  the  fact  that  some  performance                                                                    
measures were implemented at establishment,  but did not fit                                                                    
the program.                                                                                                                    
                                                                                                                                
3:18:38 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon wondered  whether  the investment  board                                                                    
had created a master list  of education opportunities in the                                                                    
state.  Mr.  Cashen  replied   that  the  Eligible  Training                                                                    
Providers list had  all the training providers  in the state                                                                    
that may receive funding.                                                                                                       
                                                                                                                                
Co-Chair   MacKinnon  remarked   that  there   was  training                                                                    
opportunities available  in multiple  regions in  the state.                                                                    
She wondered whether there may  be a duplication of services                                                                    
by  providing additional  state money.  Ms. Harbour  replied                                                                    
that the Workforce Investment Board  outlined areas of high-                                                                    
demand  occupations and  industries to  invest in  training.                                                                    
The board did a review  to determine a workforce demand, the                                                                    
training capacity, and the possible  gaps. She stressed that                                                                    
the training  did not meet the  needs in the state.  She did                                                                    
not believe that there was a program by program review.                                                                         
                                                                                                                                
                                                                                                                                
Co-Chair  MacKinnon  noted  that the  department  had  never                                                                    
quantified  private  training   sources,  so  other  similar                                                                    
training was available.                                                                                                         
                                                                                                                                
Senator Olson  wondered whether any for  profit corporations                                                                    
that received  TVEP funding. Ms.  Harbour replied  that TVEP                                                                    
funding was only available for  not for profit entities. She                                                                    
furthered that  there was the State  Training and Employment                                                                    
Program (STEP)  which had private entities  that applied for                                                                    
that program.                                                                                                                   
                                                                                                                                
Senator Olson  wondered whether the private  entity received                                                                    
TVEP  funding.  Ms.  Harbour  replied  in  the  negative;  a                                                                    
private entity could only receive STEP funding.                                                                                 
                                                                                                                                
Co-Chair MacKinnon  requested a  list of recipients  of STEP                                                                    
grant   program.  Ms.   Harbour  agreed   to  provide   that                                                                    
information.                                                                                                                    
                                                                                                                                
Vice-Chair  Bishop queried  the list  of all  the Individual                                                                    
Training Accounts  (ITA) recipients.  Ms. Harbour  agreed to                                                                    
provide that information                                                                                                        
                                                                                                                                
Co-Chair Hoffman requested a list  of the areas of the state                                                                    
with the  highest unemployment rates. Ms.  Harbour agreed to                                                                    
provide that information.                                                                                                       
                                                                                                                                
Co-Chair MacKinnon  stated that  the fiscal notes  needed to                                                                    
be corrected.                                                                                                                   
                                                                                                                                
3:22:38 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:23:10 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
3:23:19 PM                                                                                                                    
                                                                                                                                
JULI  LUCKY, STAFF,  SENATOR ANNA  MACKINNON, explained  the                                                                    
forthcoming fiscal notes.                                                                                                       
                                                                                                                                
Co-Chair  MacKinnon  remarked  that  the  numbers  would  be                                                                    
replicated in  the out years,  based on the number  of years                                                                    
in the extension.                                                                                                               
                                                                                                                                
HB  141  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
3:26:32 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:28:05 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
3:28:09 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon announced the following day's schedule.                                                                      
                                                                                                                                
3:28:33 PM                                                                                                                    
RECESS                                                                                                                          
                                                                                                                                
3:45:10 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 104                                                                                                           
                                                                                                                                
     "An Act relating to the duties of the state Board of                                                                       
     Education and Early Development; and relating to                                                                           
     school curriculum."                                                                                                        
                                                                                                                                
3:45:45 PM                                                                                                                    
                                                                                                                                
PAUL  PRUSSING,  DIRECTOR,  DIVISION  OF  STUDENT  LEARNING,                                                                    
DEPARTMENT   OF  EDUCATION   AND   EARLY  DEVELOPMENT   (via                                                                    
teleconference), explained the fiscal note.                                                                                     
                                                                                                                                
Co-Chair MacKinnon  asked for further information  about the                                                                    
$1 million for contract  services. Mr. Prussing replied that                                                                    
education  consultants  "were  not cheap."  He  stated  that                                                                    
there  was  a difference  in  the  curriculum based  on  the                                                                    
education level.                                                                                                                
                                                                                                                                
Co-Chair  MacKinnon  wondered  whether the  number  was  for                                                                    
"Alaska Challenge"  or the bill.  Mr. Prussing  replied that                                                                    
it referenced the bill.                                                                                                         
                                                                                                                                
3:48:42 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:50:50 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon remarked  that  DEED  could not  suggest                                                                    
using the Higher  Education Fund. She felt  that DEED should                                                                    
have assigned the request at UGF 1004.                                                                                          
                                                                                                                                
Co-Chair MacKinnon changed the fiscal note to $500,0000                                                                         
                                                                                                                                
3:53:28 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Bishop  MOVED to  REPORT  CSSB  104(FIN) out  of                                                                    
committee  with  individual   recommendations  and  attached                                                                    
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
CSSB  104(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass" recommendation and  with one new fiscal  note from the                                                                    
Department of Education and Early Development.                                                                                  
                                                                                                                                
[Note:  Action to  report CSSB  104(FIN) from  committee was                                                                    
later   rescinded  on   February   22,   2018  for   further                                                                    
consideration by the Senate Finance Committee.]                                                                                 
                                                                                                                                
Co-Chair MacKinnon announced the following day's schedule.                                                                      
                                                                                                                                
Co-Chair  Hoffman  queried  a  schedule  for  the  following                                                                    
Sunday.                                                                                                                         
                                                                                                                                
Co-Chair  MacKinnon  announced  that she  hoped  that  there                                                                    
would be "light load" on Sunday, based on floor session.                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
3:55:45 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:55 p.m.                                                                                          

Document Name Date/Time Subjects
HB 49 Supporting Document Medicaid Cost Savings CDMs 2015.pdf SFIN 4/14/2017 1:30:00 PM
HB 49
HB 49 Supporting Document Licensing Fees FY06-17.pdf SFIN 4/14/2017 1:30:00 PM
HB 49
HB049 Support Letters 020217.pdf SFIN 4/14/2017 1:30:00 PM
HB 49
HB049 Supporting Documents-Full Sunset Audit 01.30.17.pdf SFIN 4/14/2017 1:30:00 PM
HB 49
SB 104 Amendment Consolidated 1 MacKinnon.pdf SFIN 4/14/2017 1:30:00 PM
SB 104