Legislature(2019 - 2020)SENATE FINANCE 532
04/04/2019 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB55 | |
| SB65 | |
| SB66 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 65 | TELECONFERENCED | |
| + | SB 66 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 55 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 4, 2019
9:02 a.m.
9:02:40 AM
CALL TO ORDER
Co-Chair von Imhof called the Senate Finance Committee
meeting to order at 9:02 a.m.
MEMBERS PRESENT
Senator Natasha von Imhof, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
Senator Peter Micciche
Senator Donny Olson
Senator Mike Shower
Senator David Wilson
MEMBERS ABSENT
Senator Click Bishop
Senator Bill Wielechowski
ALSO PRESENT
Tamika Ledbetter, Commissioner, Department of Labor and
Workforce Development; Grey Mitchel, Director, Division of
Workers' Compensation, Department of Labor and Workforce
Development; Don Etheridge, AFL-CIO, Juneau; Senator Cathy
Giessel.
PRESENT VIA TELECONFERENCE
Joey Crum, President and CEO, Northern Industrial Teaching,
Palmer; Louise Dean, Director, Alaska Workforce Investment
Board; Vikki Jo Kennedy, Self, Kodiak; Laura Bonner, Self,
Anchorage.
SUMMARY
SB 55 TEMP. APPOINTMENTS TO COURT OF APPEALS
CSSB 55(FIN) was REPORTED out of committee with
"no recommendation" and with one previously
published fiscal impact note: FN 1(AJS).
SB 65 DEPT. OF LABOR: TECHNICAL ED. PROGRAMS
SB 65 was HEARD and HELD in committee for further
consideration.
SB 66 LABOR STANDARDS/SAFETY; WORKER COMP.
SB 66 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 55
"An Act relating to judges of the court of appeals;
and providing for an effective date."
9:04:03 AM
Co-Chair von Imhof noted that the only change in the cs was
the addition of an effective date of July 1, 2019, to
ensure that the appointed judge could serve a full two
years before the bill sunsets in 2021.
9:04:27 AM
Senator Shower MOVED to ADOPT the committee substitute for
SB 55, Work Draft 31-LS0485\U (Bruce, 4/2/19). There being
NO OBJECTION, it was so ordered.
Senator Shower MOVED to REPORT SB 55 from committee with
individual recommendations and attached fiscal note. There
being NO OBJECTION, it was so ordered.
CSSB 55(FIN) was REPORTED out of committee with "no
recommendation" and with one previously published fiscal
impact note: FN 1(AJS).
SENATE BILL NO. 65
"An Act relating to the duties of the Department of
Labor and Workforce Development; and providing for an
effective date."
9:06:00 AM
Co-Chair von Imhof noted that the bill had one section.
9:06:09 AM
TAMIKA LEDBETTER, COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, spoke from prepared talking points
(copy on file):
Good Morning Madame/Mister Chair and members of the
Senate Finance Committee. Thank you for the opportunity
to be here and to present for your consideration of
Senate Bill 65. at the Department of Labor and Workforce
Development, connecting Alaskans to the job opportunities
in our state is a primary focus of our work. Our goal is
to reach more young Alaskans and to connect them with
training that will lead to family-wage job opportunities
in their home regions. Whether those individuals live in
coastal Alaska or the interior, we are working to
identify partnerships with employers and training
organizations that will best prepare Alaskans for these
opportunities.
• Senate Bill 65 adds language in Title 44 directing
the Department of Labor and Workforce Development to
coordinate and monitor state career and technical
education programs. This will be accomplished in
collaboration with the Department of Education and
Early Development, the University of Alaska, and
other entities that provide career and technical
training.
• Federal legislation governing the use of Workforce
Innovation Opportunity Act (WIOA) funding, as well
as Carl Perkins career and technical education
funding requires agency coordination and
collaboration. The specific language in this bill
formalizes that requirement.
• The Department of Labor and Workforce Development
works to provide job seekers and workers with high
quality training, education and career services.
This is a central focus of our mission.
• The department also helps employers find skilled
workers and identifies education and training
opportunities for their current workforce.
• The Alaska Workforce Investment Board (AWIB) located
in the Commissioners office is the lead state
planning and coordinating entity for human resource
programs in the state. Members represent a diverse
dross-section of business and educational partners.
• In 2010, the AWIB worked in cooperation with the
Department of Education and Early Development and
the University of Alaska to develop the 2010 Alaska
Career and Technical Education (CTE) Plan witch
called for strategies to improve Career and
Technical Education and prepare Alaskans with
required skills needed for postsecondary training
and careers in high growth occupations in Alaska.
• The CTE Plan called for increasing efforts to
develop career pathways, career counseling,
standards for training programs, coordination, and
program delivery.
• The Plan addressed the individual need for career
preparedness as well as the broader need for a
training and education system that is efficient,
effective and coordinated with current and future
workforce needs.
• In 2018, these same partners developed the 2018
Addendum to the Alaska Career and Technical
Education (CTE) Plan to reenergize the conversation
around CTE, reexamine CTE Plan strategies, and help
ensure that our broad spectrum of education and
training opportunities are communicated to Alaskans.
• A CTE Coordinator located within the Department of
Labor and Workforce Development works to implement
these CTE Plan strategies.
• AVTEC the Alaska Vocational Tech Education Center
- is the premiere state training school for
customized trainings directed at specific employers,
and longer-term trainings averaging 9 months in
duration in maritime, applied technology, culinary
arts, energy and building technology, and
information technology.
• Another key role that the Department of Labor plays
in the dissemination of career and technical
training funds thorough, STEP, TVEP and many federal
grant programs.
• Senate Bill 65 formalized the role of the Department
of Labor and Workforce Development as the lead
agency in coordinating and monitoring state career
and technical education.
9:11:11 AM
Co-Chair von Imhof wondered they the role needed to be
formalized in statute if programs were already monitored
under the CTE Plan.
9:11:25 AM
Commissioner Ledbetter replied that the legislation offered
more structure to the process and gave the department more
of a leadership role in ensuring that technical education
was properly coordinated and monitored across the state.
Co-Chair von Imhof thought that the formalization was
unnecessary but deferred to the department's judgement that
it would give the department the teeth to work with the
federal government for federal grant funding.
9:12:42 AM
Senator Shower wondered who previously performed the duty
of coordinating and monitoring state career and technical
education.
Commissioner Ledbetter replied that AWIB had monitored
career and technical education.
9:13:51 AM
Senator Olson pointed to the fiscal note, which showed zero
from 2021 through 2025. He wondered how confident the
department was that the program would continue without
additional funding.
9:13:57 AM
Commissioner Ledbetter replied that she was very confident.
Senator Olson asked where future funding would be found.
Commissioner Ledbetter replied that the program was already
underway and urged the passing of the legislation so that
the department could have a more formalized role.
9:14:48 AM
Co-Chair von Imhof asked whether the bill would have a
fiscal impact to the state.
9:15:03 AM
Commissioner Ledbetter agreed to provide that information.
9:15:11 AM
Senator Shower asked whether vacant PCNs had been used for
the hiring of the new Career and Technical Education
Coordinator.
Commissioner Ledbetter said that the position had already
been filled.
9:15:42 AM
Co-Chair von Imhof OPENED public testimony.
9:16:15 AM
JOEY CRUM, PRESIDENT AND CEO, NORTHERN INDUSTRIAL TEACHING,
PALMER (via teleconference), spoke in support of the
legislation.
9:18:28 AM
LOUISE DEAN, DIRECTOR, ALASKA WORKFORCE INVESTMENT BOARD
(via teleconference), was available for questions.
9:18:45 AM
VIKKI JO KENNEDY, SELF, KODIAK (via teleconference), spoke
in support of the bill.
9:19:46 AM
Co-Chair von Imhof CLOSED public testimony.
SB 65 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 66
"An Act relating to the division of labor standards
and safety; relating to the division of workers'
compensation; establishing the division of workers'
safety and compensation; and providing for an
effective date."
9:20:37 AM
TAMIKA LEDBETTER, COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, explained the legislation. She read
from talking points (copy on file):
• This bill proposes to merge the Workers
Compensation and Labor Standards and Safety
Divisions.
• The Division of Labor Standards and Safety is
focused on preventing workplace accidents and
enforcing laws related to workplace safety and
wages, while the Division of Workers Compensation
is focused on the efficient administration of
benefits to injured workers and enforcing laws
related to workers compensation requirements.
• The missions of these two divisions complement each
other in that one works to prevent accidents and the
other works to provide an efficient system of
benefits for injured workers.
• The divisions have historically worked together, and
this bill is expected to further increase the
opportunities to remove silos and capitalize on
efficiencies through a unified management structure.
• The department is cognizant of the critical roles
that each of these divisions have and the proposed
merger does not impact any of the statutes or
regulations currently administered and enforced by
each division.
• The merger aims to take advantage od position
vacancies to explore opportunities to share duties
between divisions where it makes sense, streamline
processes, and cut back on unnecessary middle
management supervisory functions.
• As reflected in the fiscal note, the bill flattens
the management structure in Labor Standards and
Safety by reclassifying the Director to a Deputy
Director who will focus attention on operational
aspects of the new divisions inspection,
consultation and enforcement functions. This will
allow for a mid-level management reduction in the
AKOSH component.
• In addition, the fiscal note illustrates the
opportunity to consolidate and share administrative
duties between the two divisions where it makes
sense.
• Future opportunities for increased efficiency could
come from office space consolidations to increase
opportunity for coordination and improved service
delivery for employers and workers.
• This effort is not expected to happen overnight, but
will be carefully developed over time.
• The bill does not propose to change the functions of
the Division of Labor Standards and Safety or the
Division of Workers Compensation.
• Its all about establishing a structure that creates
maximum opportunities to share resources and get the
work done more efficiently.
9:23:25 AM
GREY MITCHEL, DIRECTOR, DIVISION OF WORKERS' COMPENSATION,
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, discussed
the Sectional Analysis:
BILL SUMMARY WHAT DOES THIS BILL DO?
This bill will merge the Department of Labor and
Workforce Development divisions of Labor Standards and
Safety and Workers' Compensation into a new Division
of Workers' Safety and Compensation. The new division
would administer the same programs currently
administered by the two separate divisions. This bill
is needed to improve fiscal management of these
programs and to allow for efficiencies through
management and administrative restructuring and
improved coordination of service delivery. This
restructuring will result in an immediate savings
estimated at $238,000 per year starting in FY2020.
Potential future year cost savings will have to be
determined as position responsibilities and lease
space needs are evaluated moving forward. Also, with
office consolidations wherever possible this merger
will improve program services to the public and the
private sector by giving individuals one place to go
versus multiple.
DETAILED SECTIONAL ANALYSIS
Section 1: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.20.410(b).
Section 2: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.20.450(a).
Section 3: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.60.055.
Section 4: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.60.055(a).
Section 5: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.60.235(a).
Section 6: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 23.05.067(a)(1)(B).
Section 7: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS 23.10.075.
Section 8: Amends the powers and duties of the
division director under AS 23.10.080 to include intent
language
established in AS 23.30.001(1); this bring the
legislative intent of the current division of workers'
compensation into the new division of workers' safety
and compensation.
Section 9: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 23.30.025(a).
Section 10: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 23.30.280(e)(2).
Section 11: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 23.30.395(15).
Section 12: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 23.30.395(17).
Section 13: Renames the division of workers
compensation to the division of workers' safety and
compensation in AS 23.30.120(c)(14).
Section 14: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 39.25.158(b).
Section 15: Repeals AS 23.30.002; this is the
statutory reference to the current division of
workers' compensation and its director, which is
replaced by the division of workers' safety and
compensation and its director established under
section 7 of the bill.
Section 16: Establishes transition provisions in the
uncodified law of Alaska to allow completion of any
pending actions under the merged division.
9:27:05 AM
Co-Chair von Imhof OPENED public testimony.
9:27:15 AM
LAURA BONNER, SELF, ANCHORAGE (via teleconference), opposed
the bill, because she felt that merging the two divisions
would split each divisions focus. She worried that one
division director would not be enough to oversee the work
of both divisions.
9:29:00 AM
DON ETHERIDGE, AFL-CIO, JUNEAU, testified in opposition to
the merger. He expressed concern that the merger could
affect the effectiveness of the individual divisions.
9:29:42 AM
Senator Olson asked whether the unions were in favor if the
legislation.
9:29:57 AM
Mr. Etheridge replied that unions had not come out in
support or opposition of the legislation.
9:30:07 AM
Senator Olson looked at Section 8, which amended the powers
and duties of the division director. He wondered whether it
would be beneficial to give the director additional power
when overseeing the merged division.
Mr. Etheridge thought that the powers would need to be
expended if the merger was going to work and reiterated his
concern that one person would be able to handle all the
responsibility that the merger would place solely on the
one position.
9:31:06 AM
Co-Chair von Imhof CLOSED public testimony.
9:31:14 AM
Co-Chair von Imhof invited Commissioner Ledbetter to
address the concerns of the previous testifiers.
9:31:23 AM
Commissioner Ledbetter replied anytime a change was
initiated it could spark concern. She assured the committee
that the change was being proposed in order to create
efficiencies and to better serve Alaskans. She noted the
merger that had occurred between the Division of Employment
and Training Services and the Division of Business
Partnership had proved successful. She said that the
current Division Director of Workers Compensation was
familiar with Labor Standards and Safety and the new Deputy
Director of Labor Standards and Safety had an extensive
background in safety. She said that the two working
together provided additional knowledge sharing and
expertise. She said that no positions would be eliminated
because of the change and that the two divisions were
already working together in this manner.
9:33:40 AM
Senator Shower appreciated the attempt at efficiency and
hoped that core competencies would be achieved.
9:34:19 AM
Senator Olson wondered how the program would be more
efficient without the elimination of personnel.
9:34:42 AM
Commissioner Ledbetter replied said that individuals with a
greater capacity were being hired. The work was being done
well and would continue to be done well.
9:35:33 AM
Co-Chair von Imhof noted that the fiscal note showed a
savings of $283,000, although the fund source was
incorrect.
9:36:02 AM
Commissioner Ledbetter deferred to Mr. Mitchell.
9:36:10 AM
Mr. Mitchell explained that there were several areas where
efficiencies were expected. He said that the Administrative
Managers over each division would be reclassified so that
one was subordinate over the other; $8,000 would be saved.
He said that as functions were combined opportunities would
present themselves.
9:37:47 AM
Senator Micciche supported the bill and believed it had the
potential to deliver positive results.
Co-Chair von Imhof said that updated fiscal notes would be
discussed at a future hearing.
SB 66 was HEARD and HELD in committee for further
consideration.
Co-Chair von Imhof discussed the following day's agenda.
ADJOURNMENT
9:39:54 AM
The meeting was adjourned at 9:39 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 55 Work Draft Version U.pdf |
SFIN 4/4/2019 9:00:00 AM |
SB 55 |
| SB 66 support ASHBA.pdf |
SFIN 4/4/2019 9:00:00 AM |
SB 66 |
| SB 66 - transmittal letter.pdf |
SFIN 4/4/2019 9:00:00 AM |
SB 66 |
| SB 66 Commissioner Ledbetter Testimony.pdf |
SFIN 4/4/2019 9:00:00 AM |
SB 66 |
| SB 66 Bill and Sectional Analysis - DOLWD.pdf |
SFIN 4/4/2019 9:00:00 AM |
SB 66 |