04/06/2017 01:30 PM House FINANCE

HOUSE BILL NO. 141                                                                                                            
                                                                                                                                
     "An Act relating to allocations of funding for the                                                                         
     Alaska Workforce Investment Board; and providing for                                                                       
     an effective date."                                                                                                        
                                                                                                                                
2:46:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ZACH   FANSLER,   SPONSOR,   reminded   the                                                                    
committee  that  the  bill  was   a  funding  mechanism  for                                                                    
technical and  vocational education  programs set  to sunset                                                                    
on June 30, 2017. He furthered that HB 141 included a five-                                                                     
year renewal  extending it through  June 30, 2022.  He noted                                                                    
that during the prior  hearing several questions were asked.                                                                    
He  had  distributed a  memo  with  answers in  response  to                                                                    
committee member questions [Memo  "House Bill 141 Questions"                                                                    
(copy on file)].                                                                                                                
                                                                                                                                
Representative Wilson  asked about the  constitutionality of                                                                    
a private school receiving some of the funding.                                                                                 
                                                                                                                                
2:49:53 PM                                                                                                                    
                                                                                                                                
PALOMA  HARBOUR,  ADMIN  SERVICES  DIRECTOR,  DEPARTMENT  OF                                                                    
LABOR, was  not aware of any  constitutional restrictions or                                                                    
violations.  She referred  to the  memo and  noted that  the                                                                    
answers  listed the  federal requirements  regarding use  of                                                                    
the  fund   and  specified  that   there  were   no  federal                                                                    
requirements  regarding  use  of employee  contributions  to                                                                    
unemployment programs.  She reminded committee  members that                                                                    
the  state   requirements  were  statutes  enacted   by  the                                                                    
legislature.  Representative  Wilson asked  whether  private                                                                    
schools  were required  to meet  state standards  to qualify                                                                    
for  the  funding. Ms.  Harbour  was  unable to  answer  the                                                                    
question   but  remembered   that  the   list  of   eligible                                                                    
recipients  were  placed  in state  statute.  Representative                                                                    
Wilson  commented that  there were  certain restrictions  on                                                                    
uses of general  funds for education. She  deemed that since                                                                    
the   funding   was   generated   by   unemployment   funds,                                                                    
restrictions regarding  type of  institution did  not apply.                                                                    
Ms.  Harbour  responded  that the  funds  became  designated                                                                    
state general funds.                                                                                                            
                                                                                                                                
2:51:46 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Gara asked  whether  the bill  covered the  same                                                                    
training institutions at the same  amounts as in years prior                                                                    
to the sunset. Representative  Fansler replied that the same                                                                    
10  institutions would  receive the  same amount  of funding                                                                    
they  received in  prior  years.  Vice-Chair Gara  commented                                                                    
that the Constitution did stipulate  that private funds were                                                                    
prohibited  for  use  for  public   education.  He  was  not                                                                    
concerned about any constitutional issues over the funding.                                                                     
Co-Chair Foster  asked Vice-Chair Gara to  review the bill's                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
2:53:17 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara  reviewed the  fiscal notes  for HB  141. He                                                                    
noted the new Department  of Labor and Workforce Development                                                                    
(DLWD)  fiscal  impact   note  appropriated  for  Employment                                                                    
Training  Services  in  the  amount   of  $408  thousand  in                                                                    
designated general funds (DGF).  He cited the new Department                                                                    
of  Labor  and  Workforce  Development  fiscal  impact  note                                                                    
allocated  to Workforce  Development in  the amount  of $4.2                                                                    
million  DGF. He  reported that  another  new Department  of                                                                    
Labor   and   Workforce    Development   fiscal   note   was                                                                    
appropriated  to  the  Alaska  Vocational  Technical  Center                                                                    
(AVTEC) in  the amount of $2  million DGF. He turned  to the                                                                    
previously  published   fiscal  notes:  FN4  (UA)   for  the                                                                    
University of Alaska  in the amount of $5.3  million DGF and                                                                    
a  previously  published fiscal  notes:  FN1  (EED) for  the                                                                    
Department of Education and Early  Development in the amount                                                                    
of $478 thousand DGF.                                                                                                           
                                                                                                                                
2:56:02 PM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton MOVED  to report  HB 141  out of  Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
notes.                                                                                                                          
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB  141 was  REPORTED  OUT  of Committee  with  a "do  Pass"                                                                    
recommendation and  with three new fiscal  impact notes from                                                                    
Department of  Labor and Workforce Development  and with two                                                                    
previously published fiscal notes: FN1 (EED) and FN4 (UA).                                                                      
                                                                                                                                
Co-Chair Foster reviewed the agenda for the following day.                                                                      
                                                                                                                                
Co-Chair Foster recessed the meeting  to a call of the chair                                                                    
[Note: the meeting never reconvened].