04/18/2009 10:00 AM Senate FINANCE

CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 105(L&C)                                                                         
                                                                                                                                
     "An Act relating to the state training and employment                                                                      
     program; and providing for an effective date."                                                                             
                                                                                                                                
CSSSHB 105  (L&C) was  REPORTED out of  Committee with  a "do                                                                   
pass"  recommendation  and  with   two  previously  published                                                                   
fiscal impact  notes from Department  of Labor  and Workforce                                                                   
Development.                                                                                                                    
                                                                                                                                
10:56:38 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman introduced HB 105.                                                                                             
                                                                                                                                
RYNNIEVA MOSS,  STAFF, REPRESENTATIVE  COGHILL discussed  the                                                                   
legislation. She reminded the  committee about the task force                                                                   
appointed during  the previous  session including all  of the                                                                   
players of the State Training  and Employment Program (STEP).                                                                   
The task  force includes  private employers.  The task  force                                                                   
created  a more  accountable,  fair, and  user friendly  STEP                                                                   
program.  She commented  that  HB 105  is the  result of  the                                                                   
recommendations  from the  task force.  The bill attempts  to                                                                   
take politics out of the STEP  program and empower the Alaska                                                                   
Workforce   Investment  Board   to   retain  involvement   in                                                                   
determining which  entities receive grants. The  bill puts in                                                                   
statute the  requirement of Alaskan  citizenship in  order to                                                                   
receive training  under the STEP  program. She  discussed the                                                                   
repeal process  for the  step grants.  She explained  the six                                                                   
month restrictions  and requirements to qualify  for the STEP                                                                   
program.                                                                                                                        
                                                                                                                                
10:59:38 AM                                                                                                                   
                                                                                                                                
DAVID  STONE, DEPUTY  COMMISSIONER, DEPARTMENT  OF LABOR  AND                                                                   
WORKFORCE  DEVELOPMENT  informed  that  the STEP  task  force                                                                   
unanimously supported  HB 105. He enthusiastically  applauded                                                                   
the program.  He suggested  that the  task force oversee  the                                                                   
development  of regulations  while  the workforce  investment                                                                   
board  approves those  regulations.  Currently the  Workforce                                                                   
Investment Board oversees the grant applications.                                                                               
                                                                                                                                
Co-Chair Stedman  asked if the department supports  the bill.                                                                   
Mr. Stone stated yes the department supports the bill.                                                                          
                                                                                                                                
Co-Chair Stedman  asked about  program availability  for non-                                                                   
residents. Ms.  Moss detailed that  a person must  be present                                                                   
in Alaska for 92 days to qualify for the STEP program.                                                                          
                                                                                                                                
11:01:26 AM                                                                                                                   
                                                                                                                                
Senator Huggins  asked about repeat training  offered to non-                                                                   
residents. Ms.  Moss responded  that Section 6  addressed the                                                                   
requirement  that participants  in  the  program are  Alaskan                                                                   
residents.  One  definition  of   Alaskan  resident  includes                                                                   
residing   in  the  state   for  30   days  prior   to  voter                                                                   
registration.  Because  a  citizen  must  contribute  to  the                                                                   
unemployment  insurance program  in  Alaska, he  or she  must                                                                   
live in  the state  92 days  before qualifying  for the  STEP                                                                   
program.                                                                                                                        
                                                                                                                                
Co-Chair Stedman asked about Page  8, Line 1 and the overhead                                                                   
allowance of 20 percent. Ms. Moss  answered that this portion                                                                   
of the  legislation sets a limit  to how much  the department                                                                   
can  employ  for  administrative   purposes  under  the  STEP                                                                   
program.  No  greater  than  20   percent  can  be  used  for                                                                   
administrative purposes; the rest  must be routed directly to                                                                   
grant programs.                                                                                                                 
                                                                                                                                
11:02:59 AM                                                                                                                   
                                                                                                                                
DOUG WARD, ALASKA  WORKFORCE INVESTMENT BOARD  (testified via                                                                   
teleconference)  in support  of  HB 105.  He  noted that  the                                                                   
legislation  provides  statutory   authority  that  both  the                                                                   
Workforce Investment  Board and the  task force will  need to                                                                   
provide  effective  oversight.  The  board  is  unanimous  in                                                                   
support of the legislation.                                                                                                     
                                                                                                                                
11:05:25 AM                                                                                                                   
                                                                                                                                
DON  ETHERIDGE,  ALASKA WORKFORCE  PARTNERSHIP  testified  in                                                                   
support of  HB 105. He  explained the  value of the  funds in                                                                   
providing extensive training in rural Alaska.                                                                                   
                                                                                                                                
Co-Chair Stedman  noted two fiscal notes from  the Department                                                                   
of Labor and Workforce Development  (DOL) totaling $6,405,000                                                                   
in STEP funds.  There are no additional costs  anticipated as                                                                   
a result  of  passing the  legislation. The  funding for  the                                                                   
program is currently in the FY10 operating budget.                                                                              
                                                                                                                                
Ms. Moss stressed that the existing  STEP program does sunset                                                                   
July 1, 2010,  however, there is much work  ahead in adopting                                                                   
regulations to  make the program more accountable,  more user                                                                   
friendly,  and  to ensure  that  Alaskans  receive  training.                                                                   
Eventually Alaska  will have a gas line must  have a prepared                                                                   
work force.                                                                                                                     
                                                                                                                                
Co-Chair Hoffman  MOVED to report  CSHB 105 out  of Committee                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
notes. There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
CSSSHB 105  (L&C) was  REPORTED out of  Committee with  a "do                                                                   
pass"  recommendation  and  with   two  previously  published                                                                   
fiscal impact  notes from Department  of Labor  and Workforce                                                                   
Development.