Legislature(2017 - 2018)BELTZ 105 (TSBldg)
04/13/2017 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
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| HB141 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 141 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 13, 2017
1:38 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Shelley Hughes, Vice Chair
Senator Kevin Meyer
Senator Gary Stevens
Senator Berta Gardner
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 141
"An Act relating to allocations of funding for the Alaska
Workforce Investment Board; and providing for an effective
date."
- MOVED SCS HB 141(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 141
SHORT TITLE: AK WORKFORCE INVESTMENT BOARD; FUNDS
SPONSOR(s): REPRESENTATIVE(s) FANSLER
02/22/17 (H) READ THE FIRST TIME - REFERRALS
02/22/17 (H) L&C, FIN
03/06/17 (H) L&C AT 3:15 PM BARNES 124
03/06/17 (H) Heard & Held
03/06/17 (H) MINUTE(L&C)
03/10/17 (H) L&C AT 3:15 PM BARNES 124
03/10/17 (H) Moved HB 141 Out of Committee
03/10/17 (H) MINUTE(L&C)
03/13/17 (H) L&C RPT 5DP 2NR
03/13/17 (H) DP: STUTES, WOOL, JOSEPHSON, KNOPP,
KITO
03/13/17 (H) NR: SULLIVAN-LEONARD, BIRCH
03/16/17 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/16/17 (H) Heard & Held
03/16/17 (H) MINUTE(FIN)
03/31/17 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/31/17 (H) Heard & Held
03/31/17 (H) MINUTE(FIN)
04/06/17 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/06/17 (H) Moved HB 141 Out of Committee
04/06/17 (H) MINUTE(FIN)
04/07/17 (H) FIN RPT 8DP 1NR 2AM
04/07/17 (H) DP: GARA, KAWASAKI, GRENN, ORTIZ,
THOMPSON, GUTTENBERG, SEATON, FOSTER
04/07/17 (H) NR: PRUITT
04/07/17 (H) AM: WILSON, TILTON
04/09/17 (H) RETURN HB 141 BACK TO FINANCE - Y17 N22
E1
04/09/17 (H) ENGROSSED
04/09/17 (H) VERSION: HB 141
04/12/17 (H) TRANSMITTED TO (S)
04/12/17 (H) VERSION: HB 141
04/12/17 (S) READ THE FIRST TIME - REFERRALS
04/12/17 (S) L&C, FIN
04/13/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
04/13/17 (S) Heard & Held
04/13/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
GREGG CASHEN, Deputy Commissioner
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: During the hearing on HB 141, responded to
questions the committee asked about the Technical Vocational and
Education Program (TVEP).
PALOMA HARBOUR, Director
Division of Administrative Services
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Answered questions related to HB 141.
CHERYL EDENSHAW, Director
Alaska Technical Center
Kotzebue, Alaska
POSITION STATEMENT: Testified in support of HB 141.
FRED VILLA, Associate Vice President
Workforce Programs
University of Alaska Fairbanks
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 141.
KATHY LEARY
Ilisagvik College
Barrow, Alaska
POSITION STATEMENT: Testified in support of HB 141.
ANISHIA ELBIE, Co-Executive Director
Southwest Alaska Vocational and Educations Center (SAVEC)
King Salmon, Alaska
POSITION STATEMENT: Testified in support of HB 141.
KEVIN SPENCE, Board Chair
Amundsen Education Center
Soldotna, Alaska
POSITION STATEMENT: Testified in support of HB 141.
ACTION NARRATIVE
1:38:11 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:38 p.m. Present at the call to
order were Senators Stevens, Gardner, Meyer, and Chair Costello.
Senator Hughes arrived during the meeting.
HB 141-AK WORKFORCE INVESTMENT BOARD; FUNDS
1:38:54 PM
CHAIR COSTELLO announced the consideration of HB 141. She stated
that the intent is to hear the deputy commissioner's response to
comments made during the meeting this morning, take public
testimony, and report the bill from committee.
1:39:28 PM
GREGG CASHEN, Deputy Commissioner, Department of Labor and
Workforce Development (DOLWD), paraphrased the letter that he
prepared after the meeting this morning. He stated the
following:
The first item was that it's important to clarify that
both Ilisagvik College and Amundsen Educational Center
are public not-for-profit training institutions. We
would also like to clarify that Alaskans served with
TVEP funds that go through the University of Alaska to
the Fairbanks Pipeline Training Center are included in
the University of Alaska's performance data that they
submitted both to the department and in the TVEP
report.
Second, it's important to know what technical and
vocational education really means. Vocational
education is simply another term for career-focused
education and includes business and office technology.
Many small businesses rely heavily on office managers
to stay afloat. One example would be a medical office
assistant. It's a high-demand occupation in Alaska in
the health care industry and that falls within this
category.
Third, administrative or overhead cost usage by many
of the small regional training centers is necessary to
provide local access to programs and job training
opportunities by partnering with other training
centers to host programs. Without the use of TVEP
funds to cover the operational cost of these centers,
access to these programs would be extremely limited.
Limiting these costs to just two percent would be very
difficult in most cases.
Fourth, there was reference to a penalty clause in
statute that was recently added and effective with
FY2016. This penalty is only applied if an entity does
not have an articulation agreement or if they do not
provide the participant data to the department. All
the TVEP recipients reported their participant data to
the department and had at least one articulation
agreement so there was no need for the department to
apply the penalty to any of the TVEP recipients.
The problem with the report is that we do not have a
crosswalk between a training provided and all the
occupations employed in to define whether or not the
participants are employed in a job that is related or
somewhat related to the area of their training.
Finally, the department is committed to working with
the Alaska Workforce Investment Board to develop
suggestions for performance measures and improvements
for the Technical and Vocational Educational Program.
MR. CASHEN offered to answer additional questions.
CHAIR COSTELLO thanked Mr. Cashen for being so responsive to the
committee's questions and concerns.
1:42:47 PM
SENATOR STEVENS said he's not sure that getting a job in the
area of the training is really a major concern because any
education will help in a future job. Someone who takes one
administrative training may want to become a welder, for
example. He asked Mr. Cashen to reflect on that thought.
MR. CASHEN said he agrees that it might not be an accurate
indicator because many students who attend these training
institutions move on to employment or additional training.
Testimony from AVTEC indicated that students receive initial
training from regional training centers like Yuut and Ilisagvik
then go on to postsecondary education.
SENATOR STEVENS remarked that the important point is for people
to get jobs.
CHAIR COSTELLO noted that Dennis Dishion from Yuut Elitnaurviat
was available online to respond to the question.
SENATOR MEYER asked why he singled out Ilisagvik College and
Amundsen Educational Center as public not-for-profit training
institutions. "Aren't they all that status?"
MR. CASHEN said he was responding to testimony from this morning
when those institutions were identified as private.
SENATOR MEYER noted that the letter does not address the
assertion that some grant monies are used for capital projects
rather than operational expenses.
1:46:38 PM
PALOMA HARBOUR, Director, Division of Administrative Services,
Department of Labor and Workforce Development (DOLWD), clarified
that the statute does not restrict how the funds are used so
long as it's to keep the center open to provide training. She
said that could include repairing a roof or replacing a boiler,
but she didn't know if funds had been used for that.
SENATOR MEYER said he can understand that the Pipeline Training
Center may need to buy a backhoe, but he isn't sure that a
center should be able to buy another building or even fix a
roof.
SENATOR STEVENS asked why TVEP funds are allocated to the
university for distribution to another agency such as the
Pipeline Training Center. Why aren't we working directly with
the pipeline group?
MS. HARBOUR explained that the university submitted an operating
request to the legislature to add a process technology program
to its offerings about the same time that the Pipeline Training
Center opened. It was the will of the legislature that the
university partner with the pipeline center through the
university's Career and Technical College in Fairbanks.
SENATOR STEVENS asked for confirmation that the legislature is
apprised of the success of the program because the center
reports to the university and the information is subsequently
reported to the legislature.
MS. HARBOUR said that's correct.
1:49:37 PM
CHERYL EDENSHAW, Director, Alaska Technical Center (ATC),
Kotzebue, stated support for HB 141, reauthorizing the Technical
Vocational and Education Program. She said ATC is recognized as
a statewide postsecondary training center and has been eligible
for TVEP funding since 2000. ATC is passionate about partnering
with the state as well as business and industry to train a
responsible Alaskan workforce and help develop and sustain the
economy. The stable funding that TVEP provides is essential for
ATC to maintain its long-term commitment to meet the needs of
employers, both local and statewide.
Responding to previous testimony, she clarified that ATC neither
allocates TVEP funds for administration nor uses them for high
school students. Because of TVEP funding, they can provide
training for jobs in health care, resource development, process
technology, culinary arts, and construction trades. The training
is aligned with local and statewide job opportunities. She
opined that ATC is the only institution in the state that offers
a guarantee to employers that hire ATC graduates. If the new
employee lacks a skill that was part of the curriculum,
employers can send the person back to ATC for retraining at no
cost to the employer. She asked the committee to reauthorize
TVEP funds for five years, which will help build a future for
Alaskans and strengthen families and communities statewide.
1:50:13 PM
SENATOR HUGHES joined the committee.
1:52:19 PM
SENATOR STEVENS asked if she believes that success can only be
measured by the number of people who get a job in the field in
which they received training.
MS EDENSHAW said their priority would be to help a student get a
job in the area in which they received training. However, part
of every training includes learning about work ethic, attitudes
and values.
CHAIR COSTELLO invited Fred Villa to provide testimony and
advised members that the university's report is on page 28 of
the TVEP report.
1:53:58 PM
FRED VILLA, Associate Vice President, Workforce Programs,
University of Alaska Fairbanks stated that he called to answer
questions and provide information about the Pipeline Training
Center as a passthrough of TVEP funds from the university. It
has been part of the university's fiscal note since 2008.
He explained that the university's workforce development
committee decides to fund programs based on three criteria. They
look at: 1) high-demand occupations identified by the Workforce
Investment Board, 2) regional economic development
opportunities, and 3) priorities for the campuses themselves.
The committee represents all three campuses and has an executive
director from the Alaska Workforce Investment Board. The
process, manual, and schedule for the distributions are online
at Alaska.edu/research/wp/funding. He opined that the maximum
employee contribution of $64 per year and the cost per student
of between $1,000 and $1,400 is a good investment of resources
that is returned to the state in workforce development.
CHAIR COSTELLO invited Kathy Leary to provide testimony and
advised members that the Ilisagvik College report is on page 16
of the TVEP report.
1:57:04 PM
KATHY LEARY, Ilisagvik College, Barrow, said she called to
clarify that Ilisagvik is a public, nonprofit institution. She
noted that DOLWD also clarified the misstatement in earlier
testimony. She echoed Ms. Edenshaw's request for a five-year
reauthorization.
CHAIR COSTELLO invited Anishia Elbie to provide testimony and
advised members that the Southwest Alaska Vocational and
Education Center report is on page 23 of the TVEP report.
1:58:20 PM
ANISHIA ELBIE, Co-Executive Director, Southwest Alaska
Vocational Center (SAVC), King Salmon, said she testified
previously and is calling today to reiterate support for HB 141
to reauthorize funding for the Technical Vocational and
Education Program (TVEP) for five years. She also clarified that
SAVC is a public nonprofit organization.
CHAIR COSTELLO invited Kevin Spence to provide testimony and
advised members that the Amundsen Education Center report is on
page 12 of the TVEP report.
1:59:29 PM
KEVIN SPENCE, Board Chair, Amundsen Education Center, Soldotna,
said he is calling to support the reauthorization of the
Technical Vocational and Education Program (TVEP). He reported
that Amundsen does teacher recertification and initial teacher
certification training as well as soft skills training that
Senator Stevens correctly identified as important for any
employment. Amundsen has also started the only Microsoft Imagine
Academy in the area. They estimate that business employees can
earn up to $16,000 more than their uncertified peers. He noted
that many graduates move on to get additional training which
skews the performance data down.
2:01:38 PM
CHAIR COSTELLO closed public testimony on HB 141 and asked the
will of the committee.
2:02:08 PM
At ease
2:06:07 PM
CHAIR COSTELLO reconvened the meeting and recognized Senator
Hughes.
2:06:21 PM
SENATOR HUGHES moved Conceptual Amendment 1. Page 1, line 6,
change 2022 to 2018.
SENATOR GARDNER objected.
2:06:42 PM
CHAIR COSTELLO said the concern centers on the quality of
reporting of TVEP recipients. It's important to follow the
requirements in state law regarding reporting. She expressed
hope that the discussion could continue in the finance
committee. She noted that the sponsor said there are efforts to
review the program and perhaps develop suggestions to tighten
the reporting requirements. She stated support for the
amendment.
SENATOR HUGHES said she is concerned about the lack of
consistent reporting and the wide range of cost per participant.
The committee also heard testimony that funds are being used for
office-type training and safety courses that could be taken
online more economically. She stated support for the amendment,
workforce training, and getting a better understanding for how
TVEP dollars can best be spent.
2:09:20 PM
SENATOR STEVENS said reauthorizing the program for just one year
is reasonable given the concerns about common reporting
standards and ensuring that the data is meaningful.
2:09:54 PM
SENATOR GARDNER withdrew her objection.
CHAIR COSTELLO announced that Conceptual Amendment 1 is adopted.
2:10:26 PM
SENATOR HUGHES moved to report HB 141, as amended, from
committee with individual recommendations and attached fiscal
note(s).
CHAIR COSTELLO announced that without objection SCS HB 141(L&C)
is reported from the Senate Labor and Commerce Standing
Committee.
2:10:49 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:10 p.m.
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