03/16/2022 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB185 | |
| Confirmation Hearing(s) | |
| SB159 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 159 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 185 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 16, 2022
2:02 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Peter Micciche
Senator Gary Stevens
Senator Elvi Gray-Jackson
MEMBERS ABSENT
Senator Joshua Revak, Vice Chair
COMMITTEE CALENDAR
SENATE BILL NO. 185
"An Act relating to exemptions from minimum wage."
- MOVED CSSB 185(L&C) OUT OF COMMITTEE
CONFIRMATION HEARING
Commissioner, Department of Commerce, Community and Economic
Development
Julie Sande
- CONFIRMATION ADVANCED 5/2/22
SENATE BILL NO. 159
"An Act relating to unemployment benefits."
- MOVED CSSB 159(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 185
SHORT TITLE: ELIMINATE MINIMUM WAGE EXEMPTION
SPONSOR(s): SENATOR(s) MICCICHE
02/08/22 (S) READ THE FIRST TIME - REFERRALS
02/08/22 (S) L&C
02/28/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/28/22 (S) Scheduled but Not Heard
03/14/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/14/22 (S) Heard & Held
03/14/22 (S) MINUTE(L&C)
03/16/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 159
SHORT TITLE: UNEMPLOYMENT BENEFITS
SPONSOR(s): SENATOR(s) COSTELLO
01/18/22 (S) PREFILE RELEASED 1/14/22
01/18/22 (S) READ THE FIRST TIME - REFERRALS
01/18/22 (S) L&C, FIN
02/02/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/02/22 (S) Scheduled but Not Heard
02/04/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/04/22 (S) Heard & Held
02/04/22 (S) MINUTE(L&C)
03/16/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
MELODIE WILTERDINK, Staff
Senator Mia Costello
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the explanation of changes between
version B and version I for SB 185.
JULIE A. SANDE, Commissioner Designee
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: Testified as Commissioner Designee to the
Department of Commerce, Community, and Economic Development.
MELODIE WILTERDINK, Staff
Senator Mia Costello
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided a summary of SB 159.
JEFF GARNESS, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 159.
ROY SYREN, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 159.
BETHANY MARCUM, Chief Executive Officer
Alaska Policy Forum
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 159.
BRIAN SIKMA, Visiting Fellow
Opportunity Solutions Project
Wisconsin
POSITION STATEMENT: Answered questions during the hearing on SB
159.
CLIFFORD NAPIER, Assistant Director
Unemployment Insurance
Division of Employment and Training Services
Department of Labor and Workforce Development (DOLWD)
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on SB
159.
ACTION NARRATIVE
2:02:59 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 2:02 p.m. Present at the call to
order were Senators Gray-Jackson, Micciche, Stevens, and Chair
Costello.
SB 185-ELIMINATE MINIMUM WAGE EXEMPTION
2:03:30 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO.
185 "An Act relating to exemptions from minimum wage."
She stated that this was the second hearing and solicited a
motion to adopt the proposed committee substitute.
2:03:49 PM
SENATOR STEVENS moved to adopt the work draft committee
substitute (CS) for SB 185, work order 32-LS1443\I, as the
working document.
2:04:03 PM
CHAIR COSTELLO objected for an explanation of the changes.
2:04:07 PM
MELODIE WILTERDINK, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska, reviewed the changes between
version B and version I for SB 185.
Page 1, lines 8-9. The language about an exemption that allowed
subminimum wages to be paid to someone under age 18 temporarily
employed by a nonprofit was removed. The following two sections
were renumbered.
2:04:56 PM
At ease
2:06:07 PM
CHAIR COSTELLO reconvened the meeting. She removed her objection
and asked if there was further objection.
2:06:26 PM
SENATOR MICCICHE stated support for the change and restated that
the primary intent of the bill is to remove the offensive
language from statute that discriminates against individuals who
have a disability.
CHAIR COSTELLO offered her understanding that the CS, version I,
still would allow a nonprofit to hire an underage person as long
as the wage was not below the federal minimum.
SENATOR MICCICHE answered that is correct. The other option is
for the nonprofit to engage volunteers to teach them the value
of hard work and thank them in a way other than a wage.
CHAIR COSTELLO clarified that she would like young people to
receive the minimum wage but if a nonprofit has no money, it
would have the option to offer underage individuals the federal
minimum wage.
2:08:27 PM
CHAIR COSTELLO removed her objection; finding no further
objection, the Committee Substitute for SB 185 was adopted. She
noted that Tanya Keith was available to answer questions.
2:09:04 PM
At ease
2:09:12 PM
CHAIR COSTELLO reconvened the meeting.
2:09:17 PM
SENATOR STEVENS moved to report CSSB 185, work order 32-LS
1493\I, from committee with individual recommendations and
attached fiscal note(s).
2:09:36 PM
CHAIR COSTELLO found no objection and CSSB 185(L&C) was reported
from the Senate Labor and Commerce Standing Committee.
2:09:48 PM
At ease
^CONFIRMATION HEARING(S)
CONFIRMATION HEARING(S)
Commissioner, Department of Commerce, Community and Economic
Development
2:11:31 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of the governor appointee for the position of
commissioner of the Department of Commerce, Community and
Economic Development (DCCED), Julie A. Sande.
2:12:29 PM
JULIE A. SANDE, Commissioner Designee, Department of Commerce,
Community, and Economic Development, Juneau, Alaska, testified
as Commissioner Designee to the Department of Commerce,
Community, and Economic Development. She stated that she grew up
in logging camps in Southeast Alaska. She volunteered at a
Pioneer Home when she was in middle school and she gained a
great appreciation for elders, their history, and what they had
done for the state. Her life aspiration was to get a degree and
return to work at the Pioneer Home throughout her career. She
started as a social worker and retired as the director after 22
years. During that time she also worked in several private
businesses the family owned.
She said having both public sector and private sector experience
has been particularly helpful in her current position as
commissioner designee. She shared that she also had experience
serving on the Alaska Industrial Development and Export
Authority (AIDEA) and the Alaska Energy Authority (AEA) boards.
That experience helped her understand large infrastructure
projects. She said she was looking forward to working with her
team and legislators.
2:16:36 PM
CHAIR COSTELLO thanked her for sharing her impressive background
2:16:42 PM
SENATOR STEVENS asked if Commerce, Community, and Economic
Development were three separate and equal parts of the
department.
COMMISSIONER DISIGNEE SANDE said she had been on the job just a
short time but so far she had spent equal time in each of the
three areas.
SENATOR STEVENS asked if she saw a need to reorganize any of the
six divisions within the department.
COMMISSIONER DESIGNEE SANDE replied there may be some
reorganization but she plans to use the experts in every
division to help her make decisions based on what is best for
Alaskans. That may mean improvements in customer service, the
database systems the department uses, or reorganization.
2:21:26 PM
SENATOR GRAY-JACKSON noted that she had served on the Senate
Commerce, Community & Economic Development finance subcommittee
for four years and the first meeting this session was tonight.
She asked if she had any concerns about the budget or with labor
that she should be aware of for the meeting.
COMMISSIONER DESIGNEE SANDE offered her perspective that the
FY2023 budget overview that would be presented was fairly
benign.
2:22:43 PM
SENATOR MICCICHE said he appreciated meeting with her and he is
pleased with the appointment because her qualifications are
unique. He said you have an understanding of the balance between
the public and private sector. You know what it's like to make
payroll and you understand the logistics of marketing in a
private sector business; you held a responsible position in a
bureaucracy; and your experience on AIDEA and AEA showed you the
more formal processes of the state. He said he looks forward to
seeing what she'll do with an important department.
2:24:23 PM
CHAIR COSTELLO highlighted that the Division of Community and
Regional Affairs (DCRA) that resides within the department is
the only division that is mentioned in the state constitution.
She noted that in earlier years an entire department was
dedicated to that topic. She asked Commissioner Designee Sande
to share what that division does and how she will aid in that
effort.
COMMISSIONER DESIGNEE SANDE said she has found that the DCRA
team does a phenomenal job helping communities and
municipalities. She cited the $1.2 billion in grant funding
division Director Moller is responsible for administering and
the work on the Rural Utility Business Advisory (RUBA) program
as examples. She noted the travel constraints since 2019 and
that rural communities were just beginning to welcome visitors
again.
2:29:16 PM
CHAIR COSTELLO referenced her experience with family-owned
businesses and asked how the state could improve the environment
for small businesses.
COMMISSIONER DESIGNEE SANDE said she believes it would be very
helpful to look at the regulations that may be hampering small
businesses and work to get the state out of the way whenever
possible. She said she is well aware of the ways that small
businesses help communities stay healthy by doing things like
employing people, paying taxes, and participating in nonprofit
and volunteer efforts. She noted that she is currently working
with the business licensing division to look at ways to get
licenses out more quickly.
2:31:23 PM
CHAIR COSTELLO said the committee has heard from the top levels
of the military that the largest challenge that military
families face when they're stationed in Alaska is obtaining
professional licenses for military spouses. Current law says
those applications are expedited but that just means they are
put to the head of the queue. It does not mean these licenses
will be issued any faster. She asked Commissioner designee Sande
if she was aware of this and if she had any ideas about how to
solve this problem.
2:32:34 PM
COMMISSIONER DESIGNEE SANDE offered her understanding that the
regulations that will provide some relief for this problem were
currently before each of the boards.
CHAIR COSTELLO asked what role she envisions for herself in
advancing investigations that Alaskans file with the department.
Specifically, what role would she play and would she be involved
in any decisions in the following example that came to the
committee's attention this session:
During a sunset audit, the committee learned that multiple
Alaskans had filed complaints with the Board of Chiropractors
about one licensee. During that investigative process there were
three periods of inactivity, one of which was more than 200
days.
2:36:15 PM
COMMISSIONER DESIGNEE SANDE answered that her learning style is
to do the task if she doesn't understand something, but in this
role she realizes she needs to be more disciplined in allocating
her time. She said she realizes that issues like that
demonstrate that the current process is not serving Alaskans
well, it is not benefiting the economy, and it is not protecting
the consumer. She is well aware of the challenges and has every
intention of working with the division directors to figure out
the bottlenecks in the process and possible solutions. She will
draw on her professional experience with investigations and
licensing and will also look at what the legislature might do to
help with this effort.
SENATOR STEVENS asked her to talk about what she thought she
knew working as a volunteer [at the Pioneer Home] and how that
might have changed as she moved up the ladder and transitioned
to being the boss.
COMMISSIONER DESIGNEE SANDE said she was fairly confident that
she knew everything when she was young but she doesn't feel that
way now. However, based on the difficulty she had meeting the
qualifications for the state to hire her as a social worker
after she graduated with a degree, she believes the state could
be more creative in solving the current workforce challenges.
Now is the perfect time to figure this out, she said.
CHAIR COSTELLO thanked her for her thoughtful and inspiring
responses to the committee's questions.
2:44:04 PM
CHAIR COSTELLO advised that the names of all appointees this
committee has heard from would be forwarded in one batch.
COMMISSIONER DESIGNEE SANDE thanked the committee for its time.
2:44:27 PM
At ease
2:45:19 PM
CHAIR COSTELLO reconvened the meeting and opened public
testimony on the governor appointee Julie Sande, Commissioner
Designee of the Department of Commerce, Community and Economic
Development (DCCED). Finding none, she closed public testimony.
SB 159-UNEMPLOYMENT BENEFITS
2:45:47 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO.
159, "An Act relating to unemployment benefits."
She stated that this is the second hearing and version I is
before the committee. She asked Ms. Wilterdink to refresh the
committee's recall of SB 159 before she opened public testimony.
2:46:14 PM
MELODIE WILTERDINK, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska, stated that SB 159 will index the
duration of unemployment benefits Alaskan claimants may receive
to the unemployment rate. When there are more jobs, the
unemployment rate will be lower so fewer weeks of benefits will
be available. The reverse applies when there are few jobs
available.
CHAIR COSTELLO asked for an explanation of what the section on
seasonal workers accomplishes.
MS. WILTERDINK explained that the current system gives fewer
weeks of unemployment benefits to seasonal workers who have
inconsistent income throughout the year compared to workers
whose income is stable throughout the year. SB 159 says seasonal
workers who pay into the system deserve the same duration of
benefits as somebody who works year round and pays into the
system.
2:48:04 PM
CHAIR COSTELLO opened public testimony on SB 159.
2:48:23 PM
JEFF GARNESS, representing self, Anchorage, Alaska, stated that
as a long time private business owner he was speaking in support
of SB 159. He read the following testimony.
As the primary payers of the unemployment system,
business owners like me have a vested interest in
seeking that the program is an effective safety net
that carries workers from one job to the next. But
over the past years, pandemic related pressures
weighed heavily on the unemployment system
exacerbating and exposing some of the unemployment
program's flaws and weaknesses and ultimately
decreasing the program's solvency. Both employers and
workers deserve reforms to the unemployment system
that shore up the program for the long term.
We all want the unemployment program to exist for hard
working Alaskans who need a helping hand between jobs
and Senate Bill 159 contains several proposals to
accomplish that very goal.
Alaska's current unemployment system doesn't account
for the availability of jobs when determining the
duration of benefits. Senate Bill 159 would tie the
actual job market to the duration of benefits thus
treating all Alaskans more fairly, even if they work a
seasonal job.
The indexing of unemployment insurance benefits to the
current state unemployment rate would ensure
individuals receive the support they need when jobs
are scarce, but also giving individuals the push they
may need to get back to work when the jobs are
plentiful. Employers should not be forced to compete
with the unemployment insurance program when jobs are
available, nor should adults be encouraged to forego
work and trade their independence.
This bill also requires checking suspicious activity
such as multiple filings for benefits through the same
IP address. These simple reforms would target
fraudsters and help maintain benefits for those who
truly need them.
I encourage you to pass Senate Bill 159 to help
Alaskans get started on ensuring our state's
unemployment system is poised for success in the
future.
2:50:46 PM
ROY SYREN, representing self, Anchorage, Alaska, stated support
for SB 159 as the owner of a small construction business that
employs people seasonally and year round. There is a limited
window to accomplish this work in Alaska. His business ramps up
employment during construction months and typically lays off 50
percent of these workers in late fall.
He related that it was a challenge in 2021 to fill these jobs
even when no experience was required. Many of the few applicants
did not follow through to an interview. He said it is important
for businesses such as his to have a pool of employees from
which to draw, so he was encouraged when SB 159 was introduced.
It will improve the employment market in the state by putting
potential workers into the market at just the right time. This
will help businesses like his do more business and contribute
positively to the Alaskan economy.
2:52:59 PM
BETHANY MARCUM, Chief Executive Officer, Alaska Policy Forum,
Anchorage, Alaska, read her testimony in support of SB 159:
Alaska's economic recovery from the pandemic has not
been strong. We have not yet recovered the jobs lost
and unemployment trust funds have been greatly
reduced. Too many Alaskans have not returned to the
labor force and by not fully replenishing the funds in
our trust, we are putting our economy at risk in the
event of future crises. Other states such as Idaho,
North Carolina, Alabama, Florida, and Tennessee have
policies in place that promote a healthier economy.
Those states link unemployment benefits to economic
conditions. In those states, when economic conditions
are such that there are not many job openings, workers
receive payments for longer periods of time. And when
employers are hiring and many jobs are available,
benefits are provided for a shorter duration.
It's a policy that helps in multiple ways. First, it
helps by restoring the funds in our trust so that we
can continue to support those who have lost jobs
during difficult times. Second, it helps individuals
get the support they need and return to the workforce
when jobs do exist. Third, it helps to create a market
as workers for employers who are trying to hire as
they maintain or expand their businesses.
The data from those states which have implemented this
policy is strong and compelling. They have continued
recovering jobs post-pandemic at a much higher rate
than Alaska. Their residents have returned to the
workforce and now their state trust fund balances are
on the right trajectory. The data also shows that
people who are out of the job market for longer
periods of time are less likely to return to work.
Thus our policies should encourage workers to return
as soon as the economy supports the jobs.
As elected officials, you have the power to pass
policies that will put our economy on the right path.
I encourage you to take a look at policies that exist
that will reduce Alaska's labor shortage and improve
our economy.
2:55:06 PM
CHAIR COSTELLO discerned nobody else wished to comment and she
closed public testimony on SB 159.
She noted who were available to answer questions and asked Brian
Sikma what his experience was with bills such as SB 159 that
index the duration of benefits to the unemployment rate.
2:55:48 PM
BRIAN SIKMA, Visiting Fellow, Opportunity Solutions Project,
Wisconsin, stated his organization has worked in a number of
states that either already have or plan to implement this type
of indexing reform. There are numerous benefits to labor
markets, responsiveness to job openings, and trust fund
stability. Calculations he and his colleagues have run indicate
that Alaska's unemployment insurance trust fund would grow by
about $96 million per year which would make a significant
difference in the solvency of the fund without raising taxes on
employers or employees.
MR. SIKMA offered his professional opinion that many states are
looking at this type of legislation to refill their trust funds
without having to raise taxes. Large workforce shortages are
also a factor. The US Department of Labor data shows that Alaska
had more job openings, seasonally adjusted per capita, than any
other state in the union. Based on the experience of other
states that have enacted similar legislation, Alaska will likely
see workers return to work much more quickly if this legislation
passes.
MR. SIKMA described SB 159 as a multiple solution to
incentivizing people to return to work.
2:58:30 PM
SENATOR STEVENS asked for a simple explanation of indexing
reform and how it works.
MR. SIKMA explained that indexing bases the duration of
unemployment benefits on the unemployment rate that is measured
with federal data. For every half percentage point that the
unemployment rate rises, an additional week of benefits is
added, up to a cap. SB 159 establishes a floor such that the
minimum duration of benefits would be 12 weeks if the employment
rate is below seven percent and up to 20 weeks if the
unemployment rate is 10.51 percent or higher.
CHAIR COSTELLO asked Clifford Napier how the Division of
Employment and Training Services overlaps with the Unemployment
Insurance Benefit Program.
3:00:15 PM
CLIFFORD NAPIER, Assistant Director, Unemployment Insurance,
Division of Employment and Training Services, Department of
Labor and Workforce Development (DOLWD), Anchorage, Alaska,
explained that individuals who are collecting unemployment are
required to search for work and report those efforts. Unemployed
workers are registered with the job centers and they are
required to go through a reemployment assessment process that
looks at ways the individual could become better ready for the
labor market. This might include a referral for training or
simply improving the individual's resume.
3:01:32 PM
At ease
3:01:43 PM
CHAIR COSTELLO reconvened the meeting and solicited a motion.
3:01:52 PM
SENATOR STEVENS moved to report the CS for SB 159, work order
32-LS1313\I, from committee with individual recommendations and
attached fiscal note(s).
3:02:14 PM
CHAIR COSTELLO found no objection and CSSB 159(L&C) was reported
from the Senate Labor and Commerce Standing Committee.
3:02:32 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:02 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 185 Version I.pdf |
SL&C 3/16/2022 1:30:00 PM |
SB 185 |
| SLAC Gov Appointee Julie Sande Resume.pdf |
SL&C 3/16/2022 1:30:00 PM |
|
| SB 159 Written Testimony received as of 3.15.22.pdf |
SL&C 3/16/2022 1:30:00 PM |
SB 159 |