04/09/2021 08:00 AM House EDUCATION

        HB 132-SCHOOL APPRENTICESHIP PROGS; TAX CREDITS                                                                     
                                                                                                                                
8:03:15 AM                                                                                                                    
                                                                                                                                
CO-CHAIR STORY announced  that the first order  of business would                                                               
be HOUSE  BILL NO. 132,  "An Act relating to  technical education                                                               
and   apprenticeships;   relating    to   concurrent   vocational                                                               
education,  training, and  on-the-job  trade experience  programs                                                               
for students  enrolled in public  secondary schools;  relating to                                                               
child labor; and  providing for an effective date."   [Before the                                                               
committee was CSHB 123(L&C)                                                                                                     
                                                                                                                                
8:03:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ZACH  FIELDS, Alaska State  Legislature, presented                                                               
CSHB  132(L&C) on  behalf of  the  sponsor, the  House Labor  and                                                               
Commerce Standing Committee, on which  he serves as co-chair.  He                                                               
stated that  apprenticeships are part  of a larger  ecosystem and                                                               
shared that  the goal of  the proposed legislation was  to expand                                                               
apprenticeship  and  school-to-apprenticeship linkages,  so  more                                                               
Alaska youth can  enter living wage careers  that have nationally                                                               
recognized post-secondary  credentials, including  college credit                                                               
and apprenticeship.                                                                                                             
                                                                                                                                
REPRESENTATIVE  FIELDS shared  that  Alaska  has high  performing                                                               
apprenticeship programs  in the traditional building  trades, and                                                               
recent  innovation with  apprenticeship  in new  industries.   He                                                               
opined that  Alaska has fantastic career  and technical education                                                               
(CTE) programs in its school districts, including some school-                                                                  
to-apprenticeship  linkage  programs.    He  explained  that  the                                                               
school-to-apprenticeship  programs' volume  is not  sufficient to                                                               
meet demand.   In the  last 10 years, he  said, there has  been a                                                               
focus  across   party  lines   and  through   administrations  on                                                               
expanding   apprenticeship  and   CTE  with   support  from   the                                                               
congressional delegation.                                                                                                       
                                                                                                                                
REPRESENTATIVE FIELDS argued that  expansion of CTE helps "people                                                               
pull themselves up  by their bootstraps" and  avoid college debt.                                                               
He shared  that he is from  a poor family and  opined that people                                                               
shouldn't have to choose between  postsecondary credentials and a                                                               
career.   He stated that some  people cannot afford not  to work,                                                               
need  to   have  a  job,   and  they  must  complete   either  an                                                               
apprenticeship program, college credit, or ideally both.                                                                        
                                                                                                                                
REPRESENTATIVE  FIELDS  noted  that   Alaska  is  in  a  fiscally                                                               
constrained  position, but  federal resources  for apprenticeship                                                               
are  expanding.     He  shared  that  Alaska   is  completing  an                                                               
application  for State  Apprenticeship  Expansion and  Innovation                                                               
(SAEI) grants,  and CSHB  132(L&C) would put  policy in  place to                                                               
capitalize on the federal investment.                                                                                           
                                                                                                                                
8:06:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  said   CSHB  132(L&C)  would  incentivize                                                               
employer participation with $1,000  per apprentice in an employer                                                               
tax credit.  He  shared that this is based on  a model from South                                                               
Carolina, where  it was found  that apprenticeship can  be scaled                                                               
up by incentivizing employer participation  and linking it to the                                                               
school system.   He  commented that  the legislature  could learn                                                               
from  that model  and  expand  apprenticeship beyond  traditional                                                               
building trades.   He noted  that there  was a $1,500  credit for                                                               
veterans entering apprenticeship.                                                                                               
                                                                                                                                
REPRESENTATIVE  FIELDS  explained  that  the  second  thing  CSHB
(L&C)  would  do  is  direct   the  Department  of  Labor  and                                                               
Workforce Development (DLWD) and  the Department of Education and                                                               
Early  Development   (DEED)  to  collaborate  in   technical  and                                                               
financial support  for school apprenticeship, science,  math, and                                                               
engineering  CTE programs.    He noted  that  DLWD has  supported                                                               
apprenticeship  for  a long  time,  and  cited examples  back  to                                                               
Governor  Frank Murkowski  and  also nodded  to  work by  Senator                                                               
Click Bishop  from his time  as commissioner  of DLWD.   He noted                                                               
however, that  there had not  been a statutory directive  to DEED                                                               
to support apprenticeship.   Representative Fields commented that                                                               
as    exemplified   by    international   best    practices   for                                                               
apprenticeship,   Alaska  needed   to   better  link   vocational                                                               
education with higher education.   He shared that the House Labor                                                               
and Commerce Standing Committee worked  with DEED on the proposed                                                               
legislation,   and   that   it   is   supportive   of   CTE   and                                                               
apprenticeship.                                                                                                                 
                                                                                                                                
8:09:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  stated that the University  of Alaska (UA)                                                               
system   has   pioneered   examples   of   college   credit   and                                                               
apprenticeship, including  in the  automotive industry.   He said                                                               
this  proposed legislation  directed  the  university to  support                                                               
[college credit  for apprenticeship] and  noted that there  was a                                                               
forthcoming  amendment  to  change  the  language  in  a  way  UA                                                               
supports.    He emphasized the importance of  linking college and                                                               
apprenticeship.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  FIELDS said  CSHB 132(L&C)  has a  wide range  of                                                               
support,   and  listed   entities  in   favor  of   the  proposed                                                               
legislation,  including   Associated  Builders   and  Contractors                                                               
(ABC),  the  Alaska State  Hospital  &  Nursing Home  Association                                                               
(ASHNHA),  the  Alaska  Primary   Care  Association  (APCA),  the                                                               
Matanuska-Susitna  Borough  School  District  (MSBSD),  and  some                                                               
individual  employers and  unions.   He noted  that whether  non-                                                               
union  or union,  building trades,  or  healthcare, the  proposed                                                               
legislation had support from a broad range of stakeholders.                                                                     
                                                                                                                                
REPRESENTATIVE  FIELDS   summarized  that  CSHB   132(L&C)  would                                                               
incentivize employer participation with a  tax credit and a bonus                                                               
tax   credit   for   veterans,  encourages   cross   departmental                                                               
collaboration between  DLWD and DEED, supports  school districts'                                                               
work  to expand  school-to-apprenticeship programs,  and provides                                                               
statutory  support  for  UA to  continue  expanding  its  college                                                               
credit for apprenticeship programs.                                                                                             
                                                                                                                                
8:12:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GILLHAM asked if there  was a minimum age to begin                                                               
an apprenticeship.                                                                                                              
                                                                                                                                
REPRESENTATIVE  FIELDS replied  that it  depended on  the student                                                               
and the program.  He offered  that someone ages 16-18 could be in                                                               
a  registered apprenticeship  program and  a middle  college high                                                               
school program.   He  stated that in  some occupations  one can't                                                               
work before  turning 18,  so it would  depend on  the profession.                                                               
He shared  that in other  cases many Alaska schools  have school-                                                               
to-college linkage programs, which prepare  a student to enter an                                                               
apprenticeship program  upon graduating high school.   He offered                                                               
that in  this scenario, the  intention is to link  college credit                                                               
to the program.                                                                                                                 
                                                                                                                                
8:13:51 AM                                                                                                                    
                                                                                                                                
MARI  SELLE,  Director,  South Central  Alaska  Health  Education                                                               
Center   (SCAHEC),  Alaska   Primary  Care   Association  (APCA),                                                               
testified  in  favor of  CSHB  132(L&C).    She shared  that  the                                                               
proposed legislation  has the potential  to open doors  for youth                                                               
to  enter  health and  human  services  careers.   She  told  the                                                               
committee  that   APCA  has  been  a   multi-agency  sponsor  for                                                               
registered  apprenticeships since  2017.   The program  was built                                                               
with  the United  States Department  of Labor's  (DoL's) American                                                               
Apprenticeship  Initiative  (AAI)  and the  State  Apprenticeship                                                               
Expansion grant, managed  by DLWD.  She explained that  APCA is a                                                               
multi-agency  sponsor   that  works  with   different  healthcare                                                               
employers,  many  of whom  are  community  health centers.    The                                                               
various employers  employ the apprentices,  and APCA  manages the                                                               
apprenticeship  program for  its partners,  she said.  She stated                                                               
this is a system where students get paid while they learn.                                                                      
                                                                                                                                
MS.  SELLE  shared  that  about   25  percent  of  the  program's                                                               
apprentices  are  youths  ages  18-24.    She  said  APCA  has  a                                                               
partnership with  Alaska Works on a  youth apprenticeship program                                                               
to  increase the  availability of  apprenticeships.   She offered                                                               
that APCA also works with school  districts to get youth into its                                                               
apprenticeship programs.   She commented  that there is a  lot of                                                               
energy at  the moment  to create  apprenticeships for  youth, and                                                               
she believes CSHB 132(L&C) will  help take everything to the next                                                               
level.   She  said this  model of  apprenticeship works  well for                                                               
people who are  going into entry level jobs.   She explained that                                                               
this is because healthcare facilities  are mentoring and training                                                               
new staff.   She said the recruitment pool for  entry level jobs,                                                               
especially in  rural Alaska, is  limited so employers  must often                                                               
hire individuals  without experience.   The  apprenticeship model                                                               
provides the  missing piece of structured,  formal education that                                                               
leads to a certification and  takes people with no experience and                                                               
puts them  on a great career  path, she opined.   Ms. Selle noted                                                               
that APCA partners  with Alaska Pacific University  (APU), so all                                                               
participants   earn   college   credit   and   an   undergraduate                                                               
certificate    at   the    successful    completion   of    their                                                               
apprenticeship.    That  certificate  can lead  to  an  associate                                                               
degree  or  bachelor's  degree,  launching  the  student  into  a                                                               
career.                                                                                                                         
                                                                                                                                
MS.  SELLE reiterated  her support  for the  proposed legislation                                                               
and  said she  felt  that  the tax  credit  incentive  was a  key                                                               
component.   She shared  that one of  APCA's challenges  has been                                                               
having more  willing students  than employers.   She  pointed out                                                               
the burden  of mentorship and  working with  young, inexperienced                                                               
people,  but  she believed  the  financial  incentive would  help                                                               
employers "take the plunge."                                                                                                    
                                                                                                                                
8:19:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX looked  for clarification  regarding if  the                                                               
apprenticeship program  would establish guidelines in  the health                                                               
care  industry   to  measure   an  apprentice's   experience  and                                                               
knowledge in a specific field.                                                                                                  
                                                                                                                                
MS.  SELLE   replied  that  there   are  two  components   to  an                                                               
apprenticeship.    She  said  there  is  an  on-the-job  learning                                                               
component with many  metrics that one must meet.   She said there                                                               
is also  a related technical  instruction (RTI)  component, which                                                               
is classroom  learning.  She  explained that  it is similar  to a                                                               
college class  in which  there are  learning objectives  that one                                                               
must meet.   She  shared that APCA's  apprenticeships are  one to                                                               
two  years,  and  about  25-40  weeks  are  spent  in  a  virtual                                                               
classroom for 1-2 hours per week.                                                                                               
                                                                                                                                
8:21:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  added that apprenticeship is  regulated by                                                               
DoL,  so  for  any  given  occupation  there  are  "standards  of                                                               
apprenticeship" which  govern the  skills taught  on the  job and                                                               
RTI.   He  emphasized that  the standards  of apprenticeship  are                                                               
consistent  for any  occupation across  the United  States, which                                                               
gives a guarantee of quality across sponsors.                                                                                   
                                                                                                                                
REPRESENTATIVE PRAX  asked how a  university or  school education                                                               
program  interfaced   with  an  employer  to   give  credits  and                                                               
accreditation.                                                                                                                  
                                                                                                                                
REPRESENTATIVE FIELDS  replied that  the Northwest  Commission on                                                               
Colleges  and  Universities  (NWCCU),  the  region's  accrediting                                                               
body, has  long worked with  universities.  He explained  that an                                                               
institution of  higher education  must look at  an apprenticeship                                                               
program and  determine whether the related  technical instruction                                                               
and the on-the-job learning align  with a college degree program.                                                               
The college can  then either use an existing  instructor, such as                                                               
one  from  APCA, for  the  program,  or have  college  professors                                                               
deliver the  RTI in a traditional  college setting, he said.   He                                                               
explained that NWCCU accommodates that range of options.                                                                        
                                                                                                                                
8:23:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GILLHAM  asked Ms.  Selle how CSHB  132(L&C) would                                                               
help  existing apprenticeship  programs.   He  commented that  he                                                               
completed   a  union   apprenticeship  without   needing  college                                                               
credits.                                                                                                                        
                                                                                                                                
MS. SELLE answered that healthcare  apprenticeships are new.  She                                                               
said  she believed  the proposed  legislation  would help  school                                                               
districts strengthen apprenticeship  programs and bring awareness                                                               
to  the value  of apprenticeships  to both  school districts  and                                                               
employers.   She  commented that  the  financial incentive  would                                                               
intrigue  employers.    She  said  there  are  differences  among                                                               
different trades  and said carpentry  was an example of  having a                                                               
long  history of  established  apprenticeships, while  healthcare                                                               
was still in the process  of making apprenticeship an established                                                               
norm.     She  emphasized  that  retention   and  recruitment  in                                                               
healthcare  is an  issue  and has  been  for a  long  time.   She                                                               
suggested that this could be a  tool to train an a highly skilled                                                               
and qualified workforce.                                                                                                        
                                                                                                                                
REPRESENTATIVE FIELDS added that  in South Carolina where similar                                                               
proposed legislation  had passed, the $1000  incentive was enough                                                               
to incentivize employers to try  the program, which then paid for                                                               
itself  with  reduced  turnover  and  higher  productivity.    He                                                               
described  it   as  an  inducement  that   allowed  employers  to                                                               
experiment.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GILLHAM asked  if the  $1,000 incentive  was one-                                                               
time or repeated.                                                                                                               
                                                                                                                                
REPRESENTATIVE FIELDS replied that it is a one-time incentive.                                                                  
                                                                                                                                
8:27:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  presented the  sectional analysis  of CSHB
(L&C).    He  said  Section   1  names  the  bill  the  Alaska                                                               
Apprenticeship Expansion Act;  Section 2 adds duties  to DEED and                                                               
states that  it must collaborate  with DLWD to  provide financial                                                               
and technical  support to  school districts.   He  commented that                                                               
DEED has primarily supported CTE  with the Carl D. Perkins grant,                                                               
which  is  insufficient   to  scale  up  school-to-apprenticeship                                                               
programs.  He said this  makes the statutory direction necessary,                                                               
because DEED  will have  to think  creatively beyond  the Perkins                                                               
grant.     Section  3  provides   statutory  support  to   UA  to                                                               
collaborate  with DEED  on  apprenticeships  aligned with  higher                                                               
education, he explained.  Section  4 is the registered apprentice                                                               
tax credit, he said.                                                                                                            
                                                                                                                                
8:29:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DRUMMOND commented that  Ms. Selle had said COVID-                                                               
19 did  not disrupt  the remote instruction  but did  not mention                                                               
how it  affected on the job  training.  She asked  for discussion                                                               
on healthcare training during the pandemic.                                                                                     
                                                                                                                                
REPRESENTATIVE  FIELDS  replied  that APCA  was  well  positioned                                                               
because  they  have a  robust  system  for digital  communication                                                               
including video from the APCA  headquarters in Anchorage, Alaska.                                                               
He said in  terms of the participating  community health centers,                                                               
the  health centers  needed to  identify the  mentor for  a given                                                               
apprentice in  one of  APCA's five  apprenticeship programs.   He                                                               
clarified  that APCA  is an  umbrella organization  that includes                                                               
numerous health care organizations throughout the state.                                                                        
                                                                                                                                
8:31:53 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  STORY asked  how  the program  would  work for  smaller                                                               
village schools.                                                                                                                
                                                                                                                                
REPRESENTATIVE FIELDS pointed to a  teaching program in the Lower                                                               
Kuskokwim School  District (LKSD) with  registered apprenticeship                                                               
embedded  in it.   He  said LKSD  identifies people  who want  to                                                               
become elementary education teachers and  allows them to start as                                                               
an  apprentice, either  as an  associate teacher  or a  teacher's                                                               
aide.     Students   then  work   through  apprenticeship   while                                                               
completing  their  University  of Alaska  Fairbanks  (UAF)  Early                                                               
Education distance  delivered program.   He explained  that these                                                               
participants are earning  a wage while working  towards a college                                                               
degree.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  FIELDS offered  a  second  example with  building                                                               
trades.   He said  someone working  in construction  may complete                                                               
apprenticeship  hours   in  different   communities.     He  also                                                               
suggested  there are  rural residents  who attend  apprenticeship                                                               
training at a training center in Anchorage or Fairbanks.                                                                        
                                                                                                                                
8:33:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    GILLHAM    asked   if    individuals    joining                                                               
apprenticeships would be required to join unions.                                                                               
                                                                                                                                
REPRESENTATIVE  FIELDS replied  no,  apprenticeship  as a  system                                                               
works  for  both   union  and  non-union  employers.     He  said                                                               
apprenticeship programs can be sponsored  by a single employer or                                                               
multiple employers.   He  gave Red  Dog Mine as  an example  of a                                                               
single-employer,  non-union apprenticeship  program sponsor.   He                                                               
said it  has multiple  apprenticeships and is  a world  leader in                                                               
terms of apprenticeship.   He offered APCA and  ABC as non-union,                                                               
multi-employer examples.  He said  there are also single-employer                                                               
union  programs and  mentioned employees  at the  Mat-Su Regional                                                               
Medical Center, which has  employees represented by International                                                               
Brotherhood of  Electrical Workers (IBEW) Local  1574 and started                                                               
an  apprentice  program  in  partnership  with  the  union.    He                                                               
explained that  traditional building  trades, such  as carpentry,                                                               
are  the multi-employer  unions.   He  summarized  that all  four                                                               
models exist, and apprenticeship training  is open to anyone.  He                                                               
said some  of the  new innovative  programs are  still developing                                                               
standards of apprenticeship, which is  what Dol and DLWD did with                                                               
APCA and the Red Dog Mine.                                                                                                      
                                                                                                                                
8:36:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DRUMMOND  said she  would like to  see a  chart of                                                               
the  four  models  Representative  Fields  had  described.    She                                                               
commented that  she had  seen a chart  by the  Associated General                                                               
Contractors (AGC)  of Alaska  that compared  apprenticeship wages                                                               
while working  and learning  to college  wages while  working and                                                               
learning, along with the debt at  the end of either program.  She                                                               
asked if he could provide  something similar to show the benefits                                                               
of the program.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  FIELDS replied  that all  apprenticeship programs                                                               
have  a  wage progression.    He  said the  traditional  building                                                               
trades  with AGC  typically offer  60  percent of  wages for  the                                                               
first year  of apprenticeship,  70 percent  for the  second year,                                                               
then 80  and 90  with a four-year  apprenticeship.   He explained                                                               
that  as an  apprentice learns,  he/she earns  higher wages.   He                                                               
suggested  this  is  instrumental  for a  win-win  for  both  the                                                               
employer and the employee.  He  referenced a study from the Palin                                                               
Administration on  apprenticeship, Alaska hiring, and  wages.  He                                                               
suggested it had compelling data  about apprenticeship leading to                                                               
living wages.                                                                                                                   
                                                                                                                                
8:39:08 AM                                                                                                                    
                                                                                                                                
CO-CHAIR STORY  asked about the  fiscal note.  She  observed that                                                               
DLWD and  DEED appeared  to be able  to build  these partnerships                                                               
with  the current  structure.   She also  commented that  she was                                                               
curious  how   it  extended   into  post-secondary   high  school                                                               
programs.                                                                                                                       
                                                                                                                                
REPRESENTATIVE FIELDS replied that DEED  and DLWD told his office                                                               
that  both already  wanted to  support apprenticeship,  so adding                                                               
statutory support  did not add  cost.  He  said the cost  in CSHB
(L&C) is going to be the tax credit.                                                                                         
                                                                                                                                
CO-CHAIR  STORY concluded  by adding  that CTE  is one  of DEED's                                                               
five priorities of Alaska's Education Challenge.                                                                                
                                                                                                                                
[HB 132 was held over.]