00 CS FOR SENATE BILL NO. 289(FIN) am 01 "An Act relating to technical and vocational education and to employment 02 assistance and training; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new 05 section to read: 06 LEGISLATIVE INTENT; REPORT TO THE LEGISLATURE. (a) It is the intent of 07 the legislature that the Alaska Human Resource Investment Council undergo an internal 08 reassessment and reorganization to minimize the number of members of the council and to 09 improve its ability to efficiently and effectively serve as the state's primary planning and 10 coordinating entity for vocational and technical education. 11 (b) The Alaska Human Resource Investment Council shall report to the legislature by 12 the 15th legislative day of the First Regular Session of the Twenty-Second Alaska State 13 Legislature on the 14 (1) reorganization undertaken to accomplish the goals identified in (a) of this 01 section; and 02 (2) development of regulations and guidelines for implementation of the grant 03 programs for which it is responsible. 04 * Sec. 2. AS 23.15.640 is amended by adding new subsections to read: 05 (b) A granting entity may award a grant that includes a program element listed 06 in(a)(4), (a)(5), or (a)(6) of this section only if all funds from other assistance or aid 07 programs or grants for that purpose are either not available to the granting entity or 08 have been exhausted. 09 (c) The department shall, to the extent economically feasible for the individual, 10 require an individual who participated in a program that was funded at least in part by 11 a grant under AS 23.15.651 and that included as a program element the provision of 12 necessary tools, work-related clothing, safety gear, or other necessities to obtain or 13 retain employment under (a)(6) of this section to reimburse the department for the 14 portion of the grant that was spent on an element listed in (a)(6) of this section. The 15 department shall separately account for receipts under this subsection. The annual 16 estimated receipts may be used by the legislature to make appropriations to the 17 department to the employment assistance and training program account (AS 23.15.625) 18 for grants under AS 23.15.651. The department shall implement this subsection by 19 regulation. 20 (d) In this section, a support service under (a)(4) of this section means a 21 service provided to an individual participating in a training program described in (a)(1) 22 - (3) of this section to enable the individual to participate in the training. 23 * Sec. 3. AS 23.15 is amended by adding new sections to read: 24 Article 7. Alaska Technical and Vocational Education. 25 Sec. 23.15.820. Powers and duties of the Alaska Human Resource 26 Investment Council. (a) The Alaska Human Resource Investment Council shall 27 (1) administer the Alaska technical and vocational education program 28 established in AS 23.15.820 - 23.15.850; 29 (2) facilitate the development of a statewide policy for a coordinated 30 and effective technical and vocational education training system in this state and, to 31 the extent authorized by federal and state law, plan and coordinate federal, state, and 01 local efforts in technical and vocational education programs; 02 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 03 to carry out the purposes of AS 23.15.820 - 23.15.850, including regulations that set 04 standards for the percentage of a grant that may be used for administrative costs; the 05 regulations must clearly identify and distinguish between expenses that may be 06 included in administrative costs and those that may not be included in administrative 07 costs; the percentage allowed for administrative costs may not exceed the lesser of five 08 percent or the amount permitted under the requirements of a federal program, if 09 applicable; 10 (4) administer the grant program under 23.15.840 and establish grant 11 administration requirements including accounting procedures that apply to qualified 12 entities and their grantees. 13 (b) The council may 14 (1) receive money designated for technical and vocational education 15 programs and may disburse money, including grants, to technical and vocational 16 education projects in accordance with AS 37.07 (Executive Budget Act); 17 (2) enter into partnership agreements through appropriate administrative 18 agencies with private industry training entities within the state in order to facilitate the 19 coordination of training opportunities; and 20 (3) recommend to the legislature changes to enhance the effectiveness 21 of the training programs it oversees under this section. 22 Sec. 23.15.830. Alaska technical and vocational education program 23 account. The Alaska technical and vocational education program account is 24 established in the general fund. The commissioner of administration shall separately 25 account for money collected under AS 23.15.835 that the department deposits in the 26 general fund. The legislature may appropriate the annual estimated balance in the 27 account to the council to implement AS 23.15.820 - 23.15.850. The legislature may 28 appropriate the lapsing balance of the account to the unemployment compensation fund 29 established in AS 23.20.130. 30 Sec. 23.15.835. Special employee unemployment contributions for program. 31 (a) In the manner provided in AS 23.20, the department shall collect from each 01 employee an amount equal to two-tenths of one percent of the wages, as set out in 02 AS 23.20.175, on which the employee is required to make contributions under 03 AS 23.20.290(d). The department shall remit to the Department of Revenue, in 04 accordance with AS 37.10.050, money collected under this subsection. 05 (b) Notwithstanding AS 23.20.290(d), the department shall credit each 06 employee with an amount equal to the amount collected from the employee under (a) 07 of this section against unemployment contributions owed by the employee under 08 AS 23.20. 09 (c) The Department of Labor and Workforce Development shall assess and 10 collect, under AS 23.20.185 - 23.20.275, interest and penalties for delinquent reports 11 and payments due under this section. Interest and penalties collected shall be handled 12 in accordance with AS 23.20.130(d). 13 Sec. 23.15.840. Grants for technical and vocational education. (a) The 14 council shall award grants, in accordance with the priority list adopted under (f) of this 15 section, to technical and vocational education entities. A technical and vocational 16 entity is eligible for a grant under this section if the entity meets program 17 requirements, the grant program is physically located in Alaska, and the entity can 18 demonstrate that 19 (1) the entity's accounting systems include controls adequate to check 20 the accuracy and reliability of accounting data, promote operating efficiency, and 21 assure compliance with program requirements and generally accepted accounting 22 principles; 23 (2) the entity's activities do not replace or compete in any way with a 24 federally approved, jointly administered apprenticeship program or any other existing 25 training programs; and 26 (3) the entity has secured matching funds for the program for which the 27 grant is requested. 28 (b) The council may not award a grant if the grant would displace money 29 available through existing public or private technical and vocational education 30 programs. 31 (c) Subject to the limits of its grant, an entity receiving a grant under this 01 section shall provide one or more program elements. The program elements include 02 (1) industry-specific training; 03 (2) on-the-job training; and 04 (3) institutional or classroom job-linked training. 05 (d) A technical or vocational educational institution that receives a grant from 06 the council shall give appropriate state agencies full access to accounting records 07 concerning the grant to assure compliance with program standards. 08 (e) In making a grant under this section, the council shall require that the 09 qualified entity and grantees of the qualified entity limit the amount of the grant 10 proceeds spent on administration so that the total spent on administration from the 11 proceeds of the technical and vocational education program account, including amounts 12 spent by the council itself, does not exceed five percent. A training program funded 13 by the council must 14 (1) meet the standards adopted by the council concerning the 15 percentage of a grant that may be spent on administrative costs; 16 (2) be operated by an institution that holds a valid authorization to 17 operate issued under AS 14.48 if the program is a postsecondary educational program 18 operated by a postsecondary educational institution subject to regulation under 19 AS 14.48. 20 (f) To the extent that funding is available, grants shall be awarded to entities 21 that apply for funding by the deadline established by the council by regulation. The 22 council shall give priority to grant applications from qualified entities whose purpose 23 is listed first on the list of priorities adopted under this subsection. If money remains 24 after grants for the first priority have been awarded, the council may make grants to 25 entities whose purpose is listed next on the list of priorities. The council shall proceed 26 in this fashion until it has exhausted the money available for granting for the year. 27 The council shall adopt a priority list each year based on economic, employment, and 28 other relevant data in order to maximize employment opportunities for participants. 29 Sec. 23.15.850. Definitions. In AS 23.15.820 - 23.15.850, 30 (1) "council" means the Alaska Human Resource Investment Council; 31 (2) "program" means the Alaska technical and vocational education 01 program established in AS 23.15.820 - 23.15.850. 02 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section 03 to read: 04 PROVISIONS FOR FIRST-YEAR OPERATION. Notwithstanding AS 23.15.840(a), 05 enacted by sec. 3 of this Act, for the fiscal year ending June 30, 2001, the money collected 06 under AS 23.15.835, enacted by sec. 3 of this Act, or otherwise appropriated to the Alaska 07 Human Resource Investment Council shall be allocated directly in the following percentages 08 to the following institutions for programs consistent with AS 23.15.820 - 23.15.850, enacted 09 by sec. 3 of this Act, and capital improvements: 10 University of Alaska 76 percent 11 Kotzebue Technical Center 8 percent 12 Alaska Vocational Technical Center 16 percent. 13 * Sec. 5. This Act takes effect July 1, 2000.