00 SENATE BILL NO. 289 01 "An Act establishing and relating to the Alaska Board of Technical and 02 Vocational Education; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.07.020(a)(12) is amended to read: 05  (12) provide educational opportunities in the areas of vocational 06 education and training,  through the Alaska Board of Technical and Vocational 07 Education,  and basic education to individuals over 16 years of age who are no longer 08 attending school; 09 * Sec. 2. AS 14.35.020(a) is amended to read: 10  (a) The  Alaska  [STATE] Board of  Technical and Vocational  Education 11 serves as the state board for the purposes of any of the Acts described in 12 AS 14.35.010. 13 * Sec. 3. AS 14.35.020(b) is amended to read: 14  (b) When required by any of the Acts described in AS 14.35.010, the  Alaska 01 Board of Technical and Vocational Education  [BOARD] shall 02  (1) prepare, submit, and supervise the administration of the plans for 03 vocational education; 04  (2) select a state director of vocational education; 05  (3) establish the minimum qualifications for teachers, supervisors, or 06 directors; 07  (4) determine the prorated basis on which money shall be available for 08 the salary and necessary travel expenses of the state director of vocational education; 09  (5) consider the advice of the Alaska Human Resource Investment 10 Council established by as 23.15.550 regarding employment training needs [AND 11 ADVISE THAT COUNCIL IN THE DEVELOPMENT OF VOCATIONAL 12 EDUCATION PROGRAMS]. 13 * Sec. 4. AS 14.48.040 is amended to read: 14  Sec. 14.48.040. Commission and Alaska Board of Technical and Vocational 15 Education to administer chapter.  Except as provided in (b) of this section, the  16 [THE] Alaska Commission on Postsecondary Education shall administer this chapter 17 and may hire necessary personnel. The commission may obtain from departments, 18 commissions, and other state agencies information and assistance needed to carry out 19 the provisions of this chapter. 20 * Sec. 5. AS 14.48.040 is amended by adding new subsections to read: 21  (b) The Alaska Board of Technical and Vocational Education shall administer 22 this chapter with respect to institutions that offer only technical and vocational 23 education programs. In administering this chapter with respect to those institutions, 24 the Alaska Board of Technical and Vocational Education shall exercise the powers and 25 has the duties of the commission under this chapter. 26  (c) The Alaska Board of Technical and Vocational Education, with the advice 27 of the commission, shall adopt regulations identifying the institutions that fall within 28 its jurisdiction. 29 * Sec. 6. AS 16.43.340(a) is amended to read: 30  (a) In addition to entry permits and interim-use permits, the commission may 31 issue educational entry permits to public, private, or denominational educational 01 institutions accredited by the Department of Education and Early Development or 02 accredited institutions, career, or vocational programs approved by the Alaska 03 Commission on Postsecondary Education  or the Alaska Board of Technical and 04 Vocational Education , or full-time nonprofit residential child care facilities licensed 05 by the Department of Health and Social Services, division of social services, if 06  (1) the program is offered to students at the junior high school level or 07 above; 08  (2) the issuance of an educational entry permit is reasonably necessary 09 to the instruction of students under courses offered by the applicant for the educational 10 entry permit; 11  (3) the program is offered by an institution that is located in the state 12 and has been in operation for at least two years; and 13  (4) the institution offering the program is not a correspondence 14 institution. 15 * Sec. 7. AS 18.63.040(a) is amended to read: 16  (a) The department shall , in cooperation with the Alaska Board of Technical 17 and Vocational Education, as appropriate,  18  (1) establish requirements for basic and supplemental hazardous 19 painting certificate programs; 20  (2) review, and approve or disapprove, programs proposed by 21 contractors, labor organizations, public and private schools, vocational education 22 institutions, and others; 23  (3) assist persons who propose programs to meet requirements for 24 approval. 25 * Sec. 8. AS 23.15.575 is amended to read: 26  Sec. 23.15.575. Council as state planning entity. The Alaska Human 27 Resource Investment Council shall act as the lead state planning and coordinating 28 entity for state human resource programs administered under 29  (1) 29 U.S.C. 1501 - 1792b (Job Training Partnership Act); 30  (2) [20 U.S.C. 2301 - 2471 (CARL D. PERKINS VOCATIONAL AND 31 APPLIED TECHNOLOGY EDUCATION ACT); 01  (3)] 20 U.S.C. 1201 - 1213d (Adult Education Act); 02   (3)  [(4)] 29 U.S.C. 49 - 49l-1 (Wagner - Peyser Act); 03   (4)  [(5)] 42 U.S.C. 681 - 687 (Job Opportunities and Basic Skills 04 Training Program) for needy families with children under the Social Security Act; 05   (5)  [(6)] the employment program established under 7 U.S.C. 06 2015(d)(4) (Food Stamp Act of 1977); 07   (6)  [(7)] all federal programs designated as successors to the programs 08 listed in  (1) - (5)  [(1) - (6)] of this section; and 09   (7)  [(8)] all state laws involving [EMPLOYMENT TRAINING, 10 VOCATIONAL EDUCATION,] workforce development [,] and community service 11  other than those involving technical and vocational education . 12 * Sec. 9. AS 23.15.580(d) is amended to read: 13  (d) The council shall provide oversight for the planning and coordination of 14 employment-related education training programs operated by the state or operated 15 under contract with the state that are described in (f) of this section. The council shall 16 require a training program listed in (f) of this section to meet the requirements of this 17 subsection. The council shall, by regulation, establish appropriate penalties for 18 programs that fail to meet the requirements of this subsection. The council may 19 recommend to the legislature changes to enhance the effectiveness of the training 20 programs it oversees under this section. A training program described in (f) of this 21 section funded with money appropriated by the legislature must 22  (1) meet the standards adopted by the council concerning the 23 percentage of a grant that may be spent on administrative costs; 24  (2) be operated by an institution that holds a valid authorization to 25 operate issued under AS 14.48 [BY THE ALASKA COMMISSION ON 26 POSTSECONDARY EDUCATION] if the program is a postsecondary educational 27 program operated by a postsecondary educational institution subject to regulation under 28 AS 14.48; 29  (3) provide to the Department of Labor and Workforce Development 30 the information required by the department for the preparation of the statistical 31 information necessary for the council to evaluate programs by the standards set out in 01 (e) of this section. 02 * Sec. 10. AS 23.15 is amended by adding new sections to read: 03 Article 7. Alaska Technical and Vocational Education. 04  Sec. 23.15.820. Alaska Board of Technical and Vocational Education. (a) 05 The Alaska Board of Technical and Vocational Education is established in the 06 Department of Education and Early Development. The board consists of five 07 members, appointed by the governor and confirmed by the legislature in joint session. 08 The governor shall appoint each member on the basis of interest in public affairs, good 09 judgment, knowledge, and ability in the field of action of the board, and with a view 10 to providing diversity of interest and points of view in the membership. 11  (b) Members of the board serve for staggered terms of three years and may 12 serve until a successor is appointed. A member appointed to fill a vacancy serves for 13 the balance of the unexpired term. 14  (c) The board shall meet at the call of the chair to conduct its business. The 15 board may meet by teleconference. A majority of the members of the board 16 constitutes a quorum. 17  (d) Members of the board serve without compensation but are entitled to per 18 diem and travel expenses authorized by law for boards and commissions under 19 AS 39.20.180. 20  (e) The board shall elect a chair and a vice-chair and other officers considered 21 necessarily by the board from among the members. The elected officers serve in their 22 positions at the pleasure of the board. 23  Sec. 23.15.825. Powers and duties of the board. (a) The board shall 24  (1) act as the lead state planning and coordinating entity for, and 25 assume the duties and functions of the state councils described under the laws relating 26 to, the programs administered under 27  (A) 20 U.S.C. 2301 - 2471 (Carl D. Perkins Vocational and 28 Applied Technology Education Act) and any federal program designated as 29 successor to it; and 30  (B) all state laws involving technical and vocational education; 31  (2) administer the Alaska technical and vocational education program 01 established in AS 23.15.820 - 23.15.850; 02  (3) facilitate the development of a statewide policy for a coordinated 03 and effective technical and vocational education training system in this state and, to 04 the extent authorized by federal and state law, plan and coordinate federal, state, and 05 local efforts in technical and vocational education programs; 06  (4) carry out its powers and duties under AS 14.48 with respect to 07 technical and vocational institutions as described in AS 14.48.040; 08  (5) adopt regulations under AS 44.62 (Administrative Procedure Act) 09 to carry out the purposes of AS 23.15.820 - 23.15.850, including regulations that set 10 standards for the percentage of a grant that may be used for administrative costs; the 11 regulations must clearly identify and distinguish between expenses that may be 12 included in administrative costs and those that may not be included in administrative 13 costs; the percentage allowed for administrative costs may not exceed the lesser of five 14 percent or the amount permitted under the requirements of a federal program, if 15 applicable; 16  (6) administer the grant program under 23.15.840 and establish grant 17 administration requirements including accounting procedures that apply to qualified 18 entities and their grantees; 19  (7) report to the legislature, by the 30th day of each regular legislative 20 session, on the performance and evaluation of training programs in the state subject 21 to review under (e) of this section. 22  (b) The board may receive money designated for technical and vocational 23 education programs and may disburse money, including grants, to technical and 24 vocational education projects in accordance with AS 37.07 (Executive Budget Act). 25 The board may enter into partnership agreements through appropriate administrative 26 agencies with private industry training entities within the state in order to facilitate the 27 coordination of training opportunities. 28  (c) The board shall provide oversight for the planning and coordination of 29 employment-related technical and vocational education training programs operated by 30 the state or operated under contract with the state. The board may recommend to the 31 legislature changes to enhance the effectiveness of the training programs it oversees 01 under this section. A training program funded by the board must 02  (1) meet the standards adopted by the board concerning the percentage 03 of a grant that may be spent on administrative costs; 04  (2) be operated by an institution that holds a valid authorization to 05 operate issued under AS 14.48 if the program is a postsecondary educational program 06 operated by a postsecondary educational institution subject to regulation under 07 AS 14.48; 08  (3) provide to the Department of Labor and Workforce Development 09 the information required by the department for the preparation of the statistical 10 information necessary for the board to evaluate programs by the standards set out in 11 (d) of this section. 12  (d) The board shall develop standards that encourage agencies to contract for 13 training programs that maximize the program's class size. The board shall adopt 14 standards for the evaluation of training programs listed in (e) of this section with 15 regard to the following: 16  (1) the percent of former participants who have a job one year after 17 leaving the training program; 18  (2) the median wage of former participants seven to 12 months after 19 leaving the program; 20  (3) the percent of former participants who were employed after leaving 21 the training program who received training under the program that was related to their 22 jobs or somewhat related to their jobs seven to 12 months after leaving the training 23 program; 24  (4) the percent of former participants of a training program who 25 indicate that they were satisfied with or somewhat satisfied with the overall quality of 26 the training program; 27  (5) the percent of employers who indicate that they were satisfied with 28 the quality of the work of new employees who had recently completed the training 29 program. 30  (e) The following training programs are subject to the provisions of (c) and (d) 31 of this section: 01  (1) in the Department of Community and Economic Development or 02 operated by the department: 03  (2) in the Department of Education and Early Development or operated 04 by the department, the non-public-school portions of the following programs: 05  (3) in the Department of Health and Social Services: 06  (4) in the Department of Labor and Workforce Development: 07  (f) The University of Alaska shall evaluate the performance of its training 08 programs using the standards set out in (d) of this section and shall provide a report 09 on the results to the board for inclusion in the board's annual report to the legislature. 10  (g) The board shall review each program listed in (e) of this section to 11 determine whether it is in compliance with the standards set out in (c) and (d) of this 12 section. If the board finds that a program has failed to comply with the standards set 13 out in (c) and (d) of this section, it shall notify the program director of the failure. If 14 the program director fails to improve the performance of the program within a 15 reasonable time, the board shall notify the governor and the Legislative Budget and 16 Audit Committee that the program is out of compliance. A contract entered into by 17 a state agency relating to a training program set out in (e) of this section must contain 18 terms consistent with this section. 19  (h) A department that operates or contracts for a training program listed in (e) 20 of this section shall pay to the board a management assessment fee not to exceed 75 21 percent of the program's annual operating budget. The total amount received as 22 management assessment fees may not exceed the board's authorized budget for the 23 fiscal year. The board shall, by regulation, establish a method to determine annually 24 the amount of the management assessment fee. If the amount the board expects to 25 collect under this subsection exceeds the authorized budget of the board, the board 26 shall reduce the percentage so that the total amount of the fees collected approximately 27 equals the authorized budget of the board for the fiscal year. The board shall adopt 28 regulations under AS 44.62 (Administrative Procedure Act) necessary to administer 29 this subsection. 30  Sec. 23.15.830. Alaska technical and vocational education program 31 account.  The Alaska technical and vocational education program account is 01 established in the general fund. The commissioner of administration shall separately 02 account for money collected under AS 23.15.835 that the Department of Labor and 03 Workforce Development deposits in the general fund. The legislature may appropriate 04 the annual estimated balance in the account to the board to implement AS 23.15.820 - 05 23.15.850. The legislature may appropriate the lapsing balance of the account to the 06 unemployment compensation fund established in AS 23.20.130. 07  Sec. 23.15.835. Special employer unemployment credit and contributions 08 for program. (a) In the manner provided in AS 23.20, the Department of Labor and 09 Workforce Development shall collect from each employer an amount equal to one- 10 tenth of one percent of the wages, as set out in AS 23.20.175, on which the employer is 11 required to make contributions under AS 23.20.290(c). The Department of Labor and 12 Workforce Development shall remit to the Department of Revenue, in accordance with 13 AS 37.10.050, money collected under this subsection. 14  (b) The Department of Labor and Workforce Development shall assess and 15 collect, under AS 23.20.185 - 23.20.275, interest and penalties for delinquent reports 16 and payments due under this section. Interest and penalties collected shall be handled 17 in accordance with AS 23.20.130(d). 18  Sec. 23.15.840. Grants for technical and vocational education. (a) The 19 board shall award grants, in accordance with the priority list adopted under (f) of this 20 section, to technical and vocational education entities. A technical and vocational 21 entity is eligible for a grant under this section if the entity meets program requirements 22 and can demonstrate that 23  (1) the entity's accounting systems include controls adequate to check 24 the accuracy and reliability of accounting data, promote operating efficiency, and 25 assure compliance with program requirements and generally accepted accounting 26 principles; 27  (2) the entity's activities do not replace or compete in any way with a 28 federally approved, jointly administered apprenticeship program or any other existing 29 training programs; and 30  (3) the entity has secured commitments from the private sector to 31 contribute to the program for which the grant is requested an amount equal to or 01 greater than the amount of the grant request. 02  (b) The board may not award a grant if the grant would displace money 03 available through existing public or private technical and vocational education 04 programs. 05  (c) Subject to the limits of its grant, an entity receiving a grant under this 06 section shall provide one or more program elements. The program elements include 07  (1) industry-specific training; 08  (2) on-the-job training; and 09  (3) institutional or classroom job-linked training. 10  (d) A technical or vocational educational institution that receives a grant from 11 the board shall give appropriate state agencies full access to accounting records 12 concerning the grant to assure compliance with program standards. 13  (e) In making a grant under this section, the board shall require that the 14 qualified entity and grantees of the qualified entity limit the amount of the grant 15 proceeds spent on administration so that the total spent on administration from the 16 proceeds of the technical and vocational education program account, including amounts 17 spent by the board itself, does not exceed five percent. 18  (f) To the extent that funding is available, grants shall be awarded to entities 19 that apply for funding by the deadline established by the department by regulation. 20 The board shall give priority to grant applications from qualified entities whose 21 purpose is listed first on the list of priorities adopted by the board under this 22 subsection. If money remains after grants for the first priority have been awarded, the 23 board may make grants to entities whose purpose is listed next on the list of priorities. 24 The board shall proceed in this fashion until it has exhausted the money available for 25 granting for the year. The board shall adopt a priority list each year based on 26 economic, employment, and other relevant data in order to maximize employment 27 opportunities for participants. 28  Sec. 23.15.850. Definitions. In AS 23.15.820 - 23.15.850, 29  (1) "board" means the Alaska Board of Technical and Vocational 30 Education; 31  (2) "program" means the Alaska technical and vocational education 01 program established in AS 23.15.820 - 23.15.850. 02 * Sec. 11. AS 23.20.110(a) is amended to read: 03  (a) Except as provided in (h) and (i) of this section, the department shall hold 04 information obtained from an employing unit or individual in the course of 05 administering this chapter and determinations as to the benefit rights of an individual 06 confidential and may not disclose them or open them to public inspection in a manner 07 that reveals the identity of the individual or employing unit. A claimant or an 08 employing unit, or the legal representative of the claimant or the employing unit, is 09 entitled to information from the records of the department to the extent necessary to 10 properly present or protest a claim or determination under this chapter. Subject to 11 restrictions that the department prescribes by regulation, the information may be made 12 available to an agency of this state or another state or federal agency charged with the 13 administration of an unemployment compensation law or the maintenance of a system 14 of public employment offices, or, for the purposes of the Federal Unemployment Tax 15 Act, to the Internal Revenue Service of the United States, or, for tax purposes, to the 16 Department of Revenue. Information obtained in the course of administering this 17 chapter or in connection with the administration of the employment service may be 18 made available to persons or agencies for purposes appropriate to the operation of a 19 public employment service or the administration of employment and training programs 20 planned or coordinated by the Alaska Human Resource Investment Council under 21 AS 23.15.550 - 23.15.585  or by the Alaska Board of Technical and Vocational 22 Education under AS 23.15.820 - 23.15.850 . 23 * Sec. 12. AS 39.25.110(11) is amended to read: 24  (11) the officers and employees of the following boards, commissions, 25 and authorities: 26  (A) [REPEALED. 27  (B)] Alaska Permanent Fund Corporation; 28   (B)  [(C)] Alaska Industrial Development and Export Authority; 29   (C)  [(D)] Alaska Commercial Fisheries Entry Commission; 30   (D)  [(E)] Alaska Commission on Postsecondary Education; 31   (E)  [(F)] Alaska Aerospace Development Corporation; 01   (F) Alaska Board of Technical and Vocational Education;  02 * Sec. 13. AS 39.50.200(b) is amended by adding a new paragraph to read: 03   (56) Alaska Board of Technical and Vocational Education. 04 * Sec. 14. AS 44.62.330(a)(43) is amended to read: 05  (43) Alaska Commission on Postsecondary Education  or the Alaska 06 Board of Technical and Vocational Education  under AS 14.48 as to denial of 07 applications and revocation of authorizations and permits; 08 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 VALIDATION OF ACCREDITATIONS ISSUED BY THE POSTSECONDARY 11 EDUCATION COMMISSION. Notwithstanding the amendments to AS 14.48 made by secs. 12 4 and 5 of this Act, an authorization to operate issued to a technical or vocational educational 13 institution before the effective date of this Act by the Alaska Commission on Postsecondary 14 Education under AS 14.48 remains valid until it expires or is revoked under AS 14.48. 15 * Sec. 16. This Act takes effect July 1, 2000.