05/14/2021 01:00 PM Senate FINANCE

HOUSE BILL NO. 100                                                                                                            
                                                                                                                                
     "An Act relating to allocations of funding for the                                                                         
     Alaska Workforce Investment Board; and providing for                                                                       
     an effective date."                                                                                                        
                                                                                                                                
2:09:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ADAM WOOL, SPONSOR, introduced himself.                                                                          
                                                                                                                                
ASHLEY  CARRICK,  STAFF,   REPRESENTATIVE  WOOL,  introduced                                                                    
herself.                                                                                                                        
                                                                                                                                
Representative  Wool   explained  that  the  bill   was  the                                                                    
Technical     Vocational     Education    Program     (TVEP)                                                                    
reauthorization. The  bill took  a percentage of  the Alaska                                                                    
Workforce  Investment fund,  and  distributed it  throughout                                                                    
the  state, with  the University  of Alaska  (UA) being  the                                                                    
largest  recipient of  the funds  at 45  percent. He  stated                                                                    
that nine  other recipients received  between two  and seven                                                                    
percent,  which  was  an  approximate  distribution  of  $12                                                                    
million.                                                                                                                        
                                                                                                                                
Senator Wilson MOVED Amendment 1 (copy on file).                                                                                
                                                                                                                                
Co-Chair Bishop OBJECTED for discussion.                                                                                        
                                                                                                                                
Senator Wilson explained that the  amendment would take a 10                                                                    
percent reduction to  the formula in UA  and redistribute it                                                                    
to the remaining TVEP recipients.                                                                                               
                                                                                                                                
Co-Chair Stedman expressed concern  about the amendment, and                                                                    
also expressed  concern about the  bill. He stated  that his                                                                    
region's allocation  came from the university.  He felt that                                                                    
his region  was underrepresented, although he  supported the                                                                    
passage  of the  bill.  He  felt that  the  issue should  be                                                                    
reviewed periodically to ensure that  it was fair and in the                                                                    
best  interest  of  the  entire   state.  He  remarked  that                                                                    
adopting the  amendment would further heighten  the issue of                                                                    
some  areas  of  the state  having  underrepresentation.  He                                                                    
opposed the amendment.                                                                                                          
                                                                                                                                
Senator   von   Imhof   remarked  that   there   should   be                                                                    
conversations around  whether or  not the  university system                                                                    
should be  more focused on workforce  development or whether                                                                    
it should be more  participatory with other organizations to                                                                    
provide   workforce  development.   She  worried   that  the                                                                    
amendment would  have unintended consequences,  because some                                                                    
programs  would  not  have  those  relied  upon  funds.  She                                                                    
invited the  amendment drafter to  address the subject  at a                                                                    
later date to engage in a robust conversation.                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Olson, Wilson                                                                                                         
OPPOSED: Von Imhof, Wielechowski, Bishop, Stedman                                                                               
                                                                                                                                
Senator Hoffman was absent from the vote.                                                                                       
                                                                                                                                
The motion FAILED (2/4).                                                                                                        
                                                                                                                                
2:15:09 PM                                                                                                                    
                                                                                                                                
Senator Olson  wondered whether he could  offer a conceptual                                                                    
amendment.                                                                                                                      
                                                                                                                                
Co-Chair  Bishop  queried  the   length  of  the  conceptual                                                                    
amendment.                                                                                                                      
                                                                                                                                
Senator Olson felt  that the sunset could be  adjusted to be                                                                    
reviewed every ten years.                                                                                                       
                                                                                                                                
Co-Chair  Bishop felt  that the  discussion should  continue                                                                    
before the offering of the conceptual amendment.                                                                                
                                                                                                                                
2:16:03 PM                                                                                                                    
                                                                                                                                
ERIN  SHINE,  STAFF,  SENATOR CLICK  BISHOP,  discussed  the                                                                    
Letter of Intent (copy on  file). She stated that the letter                                                                    
would state that  it was the intent of  the legislature that                                                                    
the Department  of Education  and Early  Development (DEED),                                                                    
Department of Labor and Workforce  Development (DOL), and UA                                                                    
cooperate  with a  special audit  to be  requested a  future                                                                    
Legislative Budget  and Audit  (LB and  A). She  stated that                                                                    
the  conversation  around  the  amendment  highlighted  some                                                                    
questions  around  the  funding   and  participants  in  the                                                                    
program.                                                                                                                        
                                                                                                                                
Co-Chair Bishop wondered whether Ms. Shine was accurate.                                                                        
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT, replied in the affirmative.                                                                                  
                                                                                                                                
Co-Chair  Stedman stated  that  he supported  the Letter  of                                                                    
Intent,  and that  it helped  address his  concern with  the                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair Bishop agreed with Co-Chair Stedman.                                                                                   
                                                                                                                                
Senator Olson queried the purpose of the audit.                                                                                 
                                                                                                                                
Ms. Shine  replied that special  audit would be  designed in                                                                    
conjunction with the Legislative  Budget and Audit Chair and                                                                    
Ms. Curtis in  outlining some of the criteria  to be brought                                                                    
to that committee for consideration.                                                                                            
                                                                                                                                
Senator  von  Imhof pointed  to  the  Governor's request  in                                                                    
Fiscal  Note 1.  She remarked  that there  was a  request of                                                                    
$490,000.                                                                                                                       
                                                                                                                                
Co-Chair Bishop highlighted the fiscal note.                                                                                    
                                                                                                                                
Co-Chair  Stedman MOVED  to REPORT  HB  100 with  individual                                                                    
recommendations and attached fiscal note.                                                                                       
                                                                                                                                
2:25:56 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:26:05 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:26:08 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  added to  move the  Letter of  Intent with                                                                    
the bill                                                                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB  100 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and  with  one previously  published  fiscal                                                                    
note: FN 1 (EED).                                                                                                               
                                                                                                                                
2:26:26 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:26:46 PM                                                                                                                    
RECONVENED