Legislature(2013 - 2014)BELTZ 105 (TSBldg)

01/29/2013 01:30 PM Senate LABOR & COMMERCE


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01:31:54 PM Start
01:32:17 PM Confirmation Hearing: Commissioner, Department of Labor and Workforce Development
01:57:49 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Confirmation Hearing:
+ Commissioner Dianne Blumer TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                        January 29, 2013                                                                                        
                           1:31 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mike Dunleavy, Chair                                                                                                    
Senator Peter Micciche, Vice Chair                                                                                              
Senator Donald Olson                                                                                                            
Senator Johnny Ellis                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Bert Stedman                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING                                                                                                            
                                                                                                                                
     Commissioner, Department of Labor and Workforce Development                                                            
          Dianne Blumer                                                                                                         
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DIANNE BLUMER, Commissioner                                                                                                     
Department of Labor and Workforce Development                                                                                   
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified as appointee to the position of                                                                 
commissioner of the Department of Labor and Workforce                                                                           
Development.                                                                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:31:54 PM                                                                                                                    
CHAIR MIKE DUNLEAVY called the Senate Labor and Commerce                                                                      
Standing Committee meeting to order at 1:31 p.m. Present at the                                                                 
call to order were Senators Micciche, Olson, and Chair Dunleavy.                                                                
                                                                                                                                
^Confirmation Hearing: Commissioner, Department of Labor and                                                                    
Workforce Development                                                                                                           
                      CONFIRMATION HEARING                                                                                  
  Commissioner, Department of Labor and Workforce Development                                                               
                                                                                                                                
1:32:17 PM                                                                                                                    
CHAIR DUNLEAVY announced  the business before the  committee was a                                                              
confirmation  hearing. He  asked Commissioner  Blumer to  tell the                                                              
committee  about  herself  and  her  qualifications  to  serve  as                                                              
commissioner.                                                                                                                   
                                                                                                                                
1:32:34 PM                                                                                                                    
DIANNE  BLUMER, Commissioner,  Department of  Labor and  Workforce                                                              
Development,  said  she was  born  and  raised in  Southeast,  and                                                              
started working  for the  State of Alaska  in 1991.  She described                                                              
leadership  positions she  held  as director  of  the Division  of                                                              
Personnel and  Labor Relations  and deputy  director of  the Child                                                              
Support Services  Division. As special assistant  to the governor,                                                              
she  advised Governor  Parnell on  regulation and  policy for  the                                                              
departments  of Administration,  Revenue, and Commerce,  Community                                                              
and  Economic  Development.   In  May  2012,  she   was  appointed                                                              
commissioner   of   the   Department  of   Labor   and   Workforce                                                              
Development (DOLWD).                                                                                                            
                                                                                                                                
1:32:57 PM                                                                                                                    
SENATOR ELLIS joined the committee.                                                                                             
                                                                                                                                
SENATOR MICCICHE  thanked Commissioner  Blumer for her  responsive                                                              
efforts to encourage Alaskan hire.                                                                                              
                                                                                                                                
CHAIR  DUNLEAVY asked  Commissioner  Blumer to  discuss her  plans                                                              
and visions for the department going forward.                                                                                   
                                                                                                                                
COMMISSIONER BLUMER  said the primary  goal was to maintain  a low                                                              
unemployment rate.  The current rate  is about 6.6 percent  and it                                                              
could  be  lower  since  there  is  continuing  workforce  demand.                                                              
Another goal  was to improve  outreach to  all areas of  Alaska to                                                              
advertise  the  opportunities that  DOLWD  has  to offer  and  get                                                              
residents ready for jobs that are coming.                                                                                       
                                                                                                                                
1:37:03 PM                                                                                                                    
CHAIR  DUNLEAVY  asked  how  her  extensive  background  in  labor                                                              
relations and  human resources would  benefit her  as commissioner                                                              
and the department she would oversee.                                                                                           
                                                                                                                                
COMMISSIONER  BLUMER explained  that when  she was advocating  for                                                              
management  and  organizations   she  learned  the  importance  of                                                              
balance  and not  having  preconceived notions.  Those  principles                                                              
will be  beneficial moving  forward in  the role of  commissioner,                                                              
she said.                                                                                                                       
                                                                                                                                
1:38:08 PM                                                                                                                    
SENATOR  ELLIS  discussed  the common  complaint  about  the  high                                                              
percentage  of  non-Alaskans working  in  the  oil fields  on  the                                                              
North Slope. He  asked Commissioner Blumer to  discuss the numbers                                                              
generally, the trends,  and her efforts to increase  the number of                                                              
Alaskans in those good jobs on the North Slope.                                                                                 
                                                                                                                                
COMMISSIONER BLUMER  said she did  not have specific  data because                                                              
the residency  report  would not  be ready for  release until  the                                                              
31st,  but the draft  she'd seen  indicated a  slight increase  in                                                              
non-Alaskan  hire. She expressed  concern  about the increase  and                                                              
assured  the committee  that DOLWD  continued to  look at  ways to                                                              
train  local  Alaskans  for North  Slope  jobs.  She  specifically                                                              
mentioned the core  drilling training program with  the University                                                              
of Alaska  Mining and  Petroleum Training  Service (MAPTS)  on the                                                              
Kenai  Peninsula,  which is  committed  to training  students  for                                                              
careers  that require  advanced  skills.  She expressed  hope  and                                                              
optimism  that trained  Alaskans would  take those  jobs, stay  in                                                              
the state, and increase the Alaskan-hire rates.                                                                                 
                                                                                                                                
She   said   the  mining   industry   provides   other   potential                                                              
opportunities  for local  Alaskans. She  described the  successful                                                              
mine simulator program  in Juneau that has industry  input and job                                                              
placement from  both Greens  Creek and  Kensington mines.  If that                                                              
program  can  be  mobilized  to   areas  in  rural  Alaska,  local                                                              
Alaskans   could  potentially   be   trained   for  mining   jobs.                                                              
"Hopefully  we can use  that model  to address  the issues  on the                                                              
Slope as well," she said.                                                                                                       
                                                                                                                                
SENATOR  ELLIS  requested  that  once  the  residency  report  was                                                              
released  that the committee  invite Commissioner  Blumer  back to                                                              
continue  the conversation  about what  the data  shows and  plans                                                              
moving forward. He  asked if it was a policy of  DOLWD to take the                                                              
"Big  Three" on  the North  Slope at  their word  that they  would                                                              
hire Alaskans  if they were  trained. He  further asked if  it was                                                              
the policy  of the administration  to train Alaskans  for specific                                                              
North Slope jobs  so that Alaskans would fill  positions when they                                                              
become available. "Is  that what your training is  focused on," he                                                              
asked.                                                                                                                          
                                                                                                                                
COMMISSIONER BLUMER  confirmed that the  primary focus was  to put                                                              
Alaskans in those jobs.                                                                                                         
                                                                                                                                
SENATOR  ELLIS  asked  if  she would  be  willing  to  return  and                                                              
continue the dialog about Alaskan hire numbers and trends.                                                                      
                                                                                                                                
COMMISSIONER BLUMER said yes.                                                                                                   
                                                                                                                                
1:43:32 PM                                                                                                                    
SENATOR  OLSON asked  what  her  plans were  within  DOLWD to  get                                                              
ready  for  the  anticipated  gas   pipeline  project,  and  which                                                              
project she favored.                                                                                                            
                                                                                                                                
COMMISSIONER   BLUMER   explained   that  the   Alaska   Workforce                                                              
Investment Board  developed an oil and gas pipeline  training plan                                                              
that  identified  113  occupational  job  classes  that  would  be                                                              
needed    when   pipeline    construction    occurs.    Registered                                                              
apprenticeship  programs  and  Alaska  work  partnership  programs                                                              
were  currently  providing  training to  meet  those  occupational                                                              
codes. DOLWD  was committed  to work with  any company  that meets                                                              
any of those  occupational codes to help with  on-the-job or other                                                              
training. She  allowed that it would  be a challenge for  DOLWD to                                                              
meet the  employment demands over  the next several years,  but it                                                              
was up to  the task. She declined  to voice her  personal opinions                                                              
about any particular project.                                                                                                   
                                                                                                                                
SENATOR   OLSON  asked  about   efforts   to  further  the   rural                                                              
workforce.                                                                                                                      
                                                                                                                                
COMMISSIONER BLUMER  described a "Youth First" program  in Emmonak                                                              
to  employ  students  in the  Yukon  Delta  Fisheries  Development                                                              
Association processing  plant. Since the program  was implemented,                                                              
youth crime  rates and school  dropout rates have  declined. DOLWD                                                              
is  also reaching  out to  regional training  centers and  working                                                              
more  closely  with ARDORS  to  assess  needs and  focus  training                                                              
regionally.                                                                                                                     
                                                                                                                                
SENATOR OLSON mentioned  throughput decline and  projected revenue                                                              
declines,  and  asked  how  she  planed  to  protect  the  funding                                                              
streams for skilled  workforce training programs  so that Alaskans                                                              
could continue to be trained for North Slope jobs.                                                                              
                                                                                                                                
1:50:06 PM                                                                                                                    
COMMISSIONER   BLUMER   responded   that   she  would   look   for                                                              
efficiencies  internally,  allow  regional  training  centers  and                                                              
ARDORS to  be the  "boots on  the ground"  to help determine  what                                                              
training  is needed  in a  particular region,  and streamline  the                                                              
training  to  simplify   the  process.  She  admitted   it  was  a                                                              
challenge and that  she and the department would  continue to work                                                              
on it.                                                                                                                          
                                                                                                                                
SENATOR  ELLIS  noted  that  there  had been  some  money  in  the                                                              
capital  budget for  film and  television production  and that  he                                                              
was  pleased  with  DOLWD's  performance  to  date  to  get  those                                                              
workforce-training  funds  on  the street  so  qualified  Alaskans                                                              
could  be hired  for those  lucrative, creative  economy jobs.  He                                                              
asked for an update.                                                                                                            
                                                                                                                                
COMMISSIONER  BLUMER   explained  that  just  over   half  of  the                                                              
legislative  appropriation was  used to issue  grants to  training                                                              
providers  that   specialize  in  film  and   television  training                                                              
programs  and  curricula,  and  just under  half  was  budget  for                                                              
Individual Training  Accounts (ITA).  She acknowledged  that there                                                              
were not  a lot of people  that were ready  to do ITA  training in                                                              
Alaska, so it was  more of a start-up grant program.  The training                                                              
provider grantees  have developed the following  programs: Talking                                                              
Circle Media, Alaska  Crew Training (Act I),  Affinityfilms, Inc.,                                                              
KPU Telecommunications,  and University of Alaska  Fairbanks, Film                                                              
Program. She said  the outcomes wouldn't be available  until after                                                              
June 30, but DOLWD was pleased with the progress to date.                                                                       
                                                                                                                                
1:55:06 PM                                                                                                                    
SENATOR  MICCICHE expressed  hope that  Commissioner Blumer  would                                                              
make  it  a  priority  to  incentivize  local  Alaskan  hire,  not                                                              
temporary Alaskans.  "I think  it is a  key priority  for everyone                                                              
in one  of these seats  that we see  our Alaskan brothers  working                                                              
and we disincentivize  those that are hiring folks  from somewhere                                                              
else.  We're open  to any  ideas  you have  on how  we can  create                                                              
legislation  that  encourages  a  greater  percentage  of  Alaskan                                                              
hire," he stated.                                                                                                               
                                                                                                                                
COMMISSIONER BLUMER  said she looked  forward to working  with him                                                              
on that issue.                                                                                                                  
                                                                                                                                
CHAIR  DUNLEAVY found  no further  questions  or public  testimony                                                              
and asked for a motion.                                                                                                         
                                                                                                                                
1:57:15 PM                                                                                                                    
SENATOR MICCICHE  moved to advance  the name Dianne Blumer  to the                                                              
joint session  for consideration  with the  understanding  that it                                                              
did not reflect  intent by any member  to vote for or  against the                                                              
confirmation of the individual.                                                                                                 
                                                                                                                                
CHAIR DUNLEAVY  announced that without  objection, the  name Diane                                                              
Blumer would be advanced to the joint body for consideration.                                                                   
                                                                                                                                
1:57:49 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Dunleavy adjourned the Senate Labor and Commerce Standing                                                                 
Committee meeting at 1:57 p.m.                                                                                                  

Document Name Date/Time Subjects
Commissioner DOLWD - Blumer #2.pdf SL&C 1/29/2013 1:30:00 PM
Confirmation Hearing DOL