Legislature(2023 - 2024)DAVIS 106
03/21/2023 03:00 PM House HEALTH & SOCIAL SERVICES
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s): Department of Family and Community Services | |
| HB57 | |
| HB46 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | HB 57 | TELECONFERENCED | |
| + | HB 46 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 46-CHILD CARE PROVIDER COLLECTIVE BARGAINING
4:16:16 PM
CHAIR PRAX announced that the final order of business would be
HOUSE BILL NO. 46, "An Act allowing child care providers that
receive state aid to organize and collectively bargain with the
Department of Health; and establishing the child care provider
fund." [Before the committee was CSHB 46 (L&C).]
4:17:35 PM
CHAIR PRAX [opened public testimony].
4:17:53 PM
CANDACE RICHEY, Owner, Candi's Tot Stop, shared that she has
been in business for 17 years. She said that child care
providers have been asked about their needs; however, she
expressed the opinion that "they are not heard." She stated
that HB 46 would offer support to providers. She thanked
members who helped pass similar legislation through the House
last year; however, it was blocked in the Senate. She expressed
hope that the proposed legislation would make it to the governor
this year. She explained that the bill would cover topics of
concern in the child care industry, including wages, benefits,
and retirement. She said that the low wages earned in the
industry are not a living wage, resulting in high staff
turnovers. She shared that families on her waitlist for child
care consists of many military service members, and she
suggested that this lack of child care is impacting the
[country's] preparedness. She explained that benefits are not
possible because of the unaffordable insurance premiums for
small businesses. She argued that the bill would give providers
more of a say as to where the state funds marked for child care
would go.
4:21:56 PM
BRIAN HOLST, Executive Director, Juneau Economic Development
Council, explained that child care is an important economic
development issue for the state, as it provides a high return on
public investment. He suggested that high quality early care
for children is critical and pointed out the Heckman Curve, as
it shows that investment has diminishing returns as children get
older. He argued that the lack of child care hurts the economy,
as data from 2019 has shown that $165 million is lost annually
from the state's economy. He continued that 77 percent of
Alaska parents missed school or work for child care in a three-
month period; 36 percent of Alaska parents postpone school or
training due to such issues; and 47 percent of families rely on
other family members or friends for child care. He said that
every state ranks child care readiness, and two-thirds of the
state's students are not ready for kindergarten. He explained
that the Journal of Education Psychology identified that if 50
first graders have problems reading, 44 of them would still have
problems reading by the time they are in fourth grade. He
argued that a lack of access to affordable high-quality child
care has an impact on the workforce. While employers want more
child care options, there are significant barriers, such as cost
and scarcity. He explained that the current model of child care
in the state is broken, as wages are uncompetitive, and workers
can earn more in an entry level retail job. He pointed out that
operators are small because of the cost of rent and the child-
to-adult ratio requirements. He opined that these programs
cannot raise wages without increasing prices.
4:27:19 PM
REPRESENTATIVE RUFFRIDGE questioned whether businesses would
offer child care services in regard to the added tax incentives
for this in the proposed legislation.
MR. HOLST answered that, when businesses were surveyed, they
said they are interested in supporting child care operations,
however; he expressed the understanding that the challenge would
be in the size of the business, as smaller businesses would not
be able to make these investments.
4:28:37 PM
[Public testimony on HB 46 was closed.]
4:28:43 PM
REPRESENTATIVE ZACK FIELDS, Alaska State Legislature, as prime
sponsor, addressed CSHB 46 (L&C). He explained that the
proposed legislation has three provisions: 1) it would establish
the opportunity for child care providers to enter intersectoral
bargaining with the state. Intersectoral bargaining is when
employees and owners of businesses bargain with the state over
terms and conditions of employment. This would include how
federal and state child care funds are used, and it would give
providers more of a voice concerning any regulation changes; 2)
it would establish a child care trust fund, allowing savings to
trickle out for child care when state revenues are low; and 3)
it would provide tax credits to companies who participate in
helping provide child care.
4:32:46 PM
REPRESENTATIVE SUMNER questioned the experience other states may
have had with intersectoral bargaining agreements.
REPRESENTATIVE FIELDS explained that legislatures can only
implement sectoral bargaining for child care or farmwork, as
these are the only two areas excluded from the National Labor
Relations Act. He said that 10 states have implemented this
framework, with some being successful. He shared that last year
the House Labor and Commerce Standing Committee heard from
providers in Washington State, which have this bargaining.
These providers described how, over time, the profession was
built up to a living wage, which increased the supply of labor
and child care.
4:35:28 PM
EVAN ANDERSON, Staff, Representative Zack Fields, Alaska State
Legislature, on behalf of Representative Fields, prime sponsor,
gave the sectional analysis for CSHB 46 (L&C) [copy included in
the committee packet], which read as follows [original
punctuation provided]:
Section 1: This section amends AS 23.05.360(f) to
allow the Alaska Labor Relations Agency board in the
Department of Labor & Workforce Development the
authority to include workers in the child care sector
for the purpose of holding hearings. This is a
conforming change to language added in Sec 4.
Section 2: This section amends AS 23.05.370(a) to
direct the Alaska Labor Relations Agency to serve as
labor relations agency for workers in the child care
sector covered by the new language added in Sec. 4.
Section 3: This section amends AS 23.05.380 to give
Department of Labor & Workforce Development the
authority to update regulations pertaining to
collective bargaining rights for workers in the child
care sector. This is a conforming change to language
added in Sec 4.
Section 4: This section amends AS 23.40 to give child
care providers the right to self-organize, join, or
assist an organization to bargain collectively and
engage in concerted activities for the purposes of
collective bargaining or other mutual aid or
protection. This section prohibits the Department of
Health from engaging in unfair labor practices, and it
provides a process for investigation and conciliation
of complaints. This section also provides definitions.
Section 5: This section establishes a child care
provider fund as a separate fund in the state
treasury. This section also establishes a child care
stakeholder group to recommend disbursements from the
fund.
4:41:59 PM
CHAIR PRAX mentioned that New Mexico has a $2 billion trust fund
for child care. He asked if such a fund is designated or
dedicated.
REPRESENTATIVE FIELDS said he does not know if New Mexico has
the same designated fund restrictions as Alaska. He expressed
the understanding from Legislative Legal Services that the key
phrase is "funds do not last". He said there were hundreds of
millions of additional dollars last year, and there were $400
million put towards capital funding, as an example.
CHAIR PRAX pointed out that the fiscal note contemplates just an
annual appropriation.
4:43:57 PM
MR. ANDERSON explained that the bill's two fiscal notes, one
from the Department of Health and another from the Department of
Revenue, clearly lay out protected deficits around the tax
credit program.
4:44:56 PM
BRANDON SPANOS, Deputy Director, Tax Division, Department of
Revenue, answered that on the fiscal note there would be three
parts that would reduce the revenue: 1) broadening what is
allowed to be an expenditure on credits and how many companies
would take advantage of this; 2) expanding the program to $3
million from the capped $1 million. He added that companies
often contribute more than they can take as a credit; and 3)
extending the sunset date.
CHAIR PRAX suggested that this would be the only anticipated
loss for the tax revenue, and this is because the companies
would donate money to the program.
MR. SPANOS responded in the affirmative.
CHAIR PRAX asked whether it would be a one-to-one tax credit.
He also asked whether the money would go into the child care
fund.
MR. SPANOS explained that the tax credit in current statute has
changed over the years, but in the first year and after the
first $100,000, 50 percent would be applied to the credit;
therefore, it is a 5:1 ratio.
CHAIR PRAX inquired as to whether the proposed $15 million
initial appropriation would have sufficient interest earnings to
maintain the fund.
4:48:39 PM
REPRESENTATIVE FIELDS expressed the opinion that a $15 million
fund could be managed, but it would not be large enough to make
a difference in the sector; however, it could be something to
establish and be built up over time.
4:48:55 PM
CHAIR PRAX announced that CSHB 46(L&C) was held over.