Legislature(2025 - 2026)BARNES 124
04/24/2025 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HJR14 | |
| HB186 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 186 | TELECONFERENCED | |
| += | HJR 14 | TELECONFERENCED | |
HB 186-APPRENTICE LABOR IN PUBLIC PROJECTS
1:12:25 PM
CO-CHAIR CARRICK announced that the final order of business
would be HOUSE BILL NO. 186, "An Act relating to the use of
apprentice labor in public construction projects; and relating
to a report on the use of apprentice labor in public
construction projects."
1:12:52 PM
CO-CHAIR CARRICK provided a brief overview of HB 186, which
would ensure, when practicable, that state-funded construction
projects valued at $2.5 million, or more, would have at least 15
percent of the labor performed by registered apprentices. She
continued that apprenticeship utilization is important in
keeping young Alaskans in the trades in Alaska. She maintained
that there is historical precedence for this policy in the
state, and the proposed legislation would return to this
provision.
1:13:53 PM
GRIFFEN SUKKAEW, Staff, Representative Ashley Carrick, Alaska
State Legislature, on behalf of Representative Carrick, prime
sponsor, presented a PowerPoint on HB 186. He began on slide 2
and addressed why apprenticeships matter. This includes the
following: opportunities to learn skills while earning a livable
wage, long-term employment opportunities, encouragement for
Alaskans to stay in the state, alternatives to college, and
local workforce development. He stated that it was reported
that 92 percent of those who complete apprenticeships in the
state are still employed nine months later, with the average
earnings of $80,000 annually.
MR. SUKKAEW moved to slide 3, which showed a timeline of
administrative orders (AOs) relevant to language in the proposed
bill. In 2005, Administrative Order 226 had been created to
ensure a workforce for construction projects. In 2015, AO 226
had been replaced with AO 278, which included more job titles.
In 2019, AO 309 merely rescinded AO 278.
MR. SUKKAEW moved to slide 4 and addressed the proposed
legislation, which would direct that when a construction
contract advertised by the Department of Administration (DOA)
and the Department of Transportation and Public Facilities
(DOT&PF) is worth $2.5 million or more, not less than 15 percent
of the labor hours must be performed by apprentices. The slide
listed 23 apprenticeships included in the proposed bill, as
follows: boilermakers, bricklayers, carpenters, cement masons,
culinary workers, electricians, equipment operators, elevator
constructors and mechanics, insulation workers, ironworkers,
laborers, mechanics, millwrights, painters, piledriving
occupations, plumbers and pipefitters, roofers, sheet metal
workers, surveyors, sprinkler fitters, truck drivers, tugboat
workers, and welders.
1:17:15 PM
MR. SUKKAEW, on slide 4 through slide 6, paraphrased the
sectional analysis for HB 186, which read as follows [original
punctuation provided]:
Subsection B: The commissioner of the Department of
Transportation or the commissioner of the Department
of Administration shall provide to the commissioner of
the Department of Labor and Workforce Development the
following information for each construction project:
1. Name of the project
2. Dollar value of the project
3. The name of the prime contractor and contact
information for the prime contractor
4. The name of each subcontractor and contact
information as provided to the department and prime
contractor
5. The percentage of labor hours that will be
preformed by apprentices
6. The occupation title of each apprentice used
Subsection C: the Commissioner of labor and workforce
development shall collect data on the total apprentice
hours worked on each construction project that is
provided to the commissioner under subsection B.
Subsection D: this section does not apply to a
construction project if applying the requirements of
this section to the project would cause the state to
lose federal funding.
Subsection E: contains three definitions
1. Apprentice means an apprentice enrolled in a
registered apprenticeship program under 29 U.S.C. 50
2. "construction" means the process of building,
altering, repairing, maintaining, improving, or
demolishing a public highway, structure, building, or
other public improvement for any kind of real property
other than privately owned real property leased for
the use of agencies; "construction" does not include
professional and other services related to the
planning and design required for a construction
project, the routine operation of a public improvement
to real property, or the construction of public
housing
3. "labor hours" means the total hours of work
performed by construction workers on a project in job
classes subject to minimum wage rates under AS
36.05.070.
Section 2: Amends the uncodified law of the State of
Alaska by adding a new section requiring a report to
the legislature. The commissioner of labor and
workforce development shall, with the assistance of
the commissioner of administration and the
commissioner of transportation and public facilities,
submit a report to the legislature identifying the
percentage of apprentice labor hours in the
occupations listed in AS 36.05.125 that were used in
each construction contract subject to AS 36.05.125 for
the fiscal years ending June 30, 2026, June 30, 2027,
June 30, 2028, June 30, 2029, and June 30, 2030. The
commissioner of labor and workforce development shall
deliver the report to the senate secretary and chief
clerk of the house of representatives on or before
September 1, 2030, and shall notify the legislature
that the report is available.
1:21:47 PM
REPRESENTATIVE STUTES questioned, if the needed percentage of
apprentices were unavailable, whether the project would stop.
MR. SUKKAEW responded that the language in the proposed
legislation provides for the "extent practicable"; therefore,
projects could continue without the required percentage of
apprentices.
CO-CHAIR CARRICK expressed the understanding that most
construction companies already use apprentices when available;
however, per the proposed legislation, if apprentices were
unavailable, companies would not be penalized.
1:23:27 PM
REPRESENTATIVE MINA questioned the enforcement of the proposed
legislation.
CO-CHAIR CARRICK responded that there would be no repercussions
if the percentage was not met, as HB 186 does not have "teeth."
She stated that the purpose of the proposed legislation would be
twofold: increase the number of apprentices involved in
construction work and, through reporting to the legislature,
give a better idea to the Department of Labor and Workforce
Development (DLWD) which fields need more investment. She
reiterated that the proposed legislation does not have an
enforcement mechanism. In response to a follow-up question
concerning the percentage of apprentices in the advertisements,
she deferred to her staff.
1:25:12 PM
MR. SUKKAEW clarified the question and deferred the question to
the Department of Transportation and Public Facilities (DOT&PF).
1:26:04 PM
ANDY MILLS, Legislative Liaison, Special Assistant to the
Commissioner, Office of the Commissioner, Department of
Transportation and Public Facilities, answered that when DOT&PF
puts out a request for proposals and an invitation to bid, the
contracts already have language involving the percentage of
apprentices to journeymen. He stated that the proposed
legislation would add a threshold in the language. Per the
threshold, the department would update its boilerplate
contractual language; however, he expressed the opinion that
contractors and union halls would have the responsibility to
meet the obligation.
1:27:42 PM
REPRESENTATIVE MCCABE gave a hypothetical on two companies
bidding on the same project, with one of the companies being
able to supply a higher percentage of apprentices. He
questioned whether this would make a difference who receives the
contract.
MR. MILLS deferred the question to James Woods.
1:28:32 PM
JAMES WOODS, Chief Contracts Officer, Contracting and Appeals,
Office of the Commissioner, Department of Transportation and
Public Facilities, expressed uncertainty that language in the
proposed legislation would address the question. He stated that
currently, the contract would go to the lowest bidder. He
stated that the question would require further research.
CO-CHAIR CARRICK expressed agreement that the question has not
been addressed by the proposed legislation.
1:29:41 PM
REPRESENTATIVE MINA directed attention to AO 309 in 2019,
stating that it had revoked apprenticeship standards in the
state. She questioned whether this has impacted apprenticeship
numbers in the state.
1:30:46 PM
CHRIS DIMOND, Lead Representative of Alaska, Western States
Regional Council of Carpenters, expressed the opinion that when
the benchmarks and guidelines were removed [in 2019],
contractors no longer had to focus on building the workforce
infrastructure in the state. He suggested that DOT&PF might
have data from this change; however, without the data, he could
not answer the question.
CO-CHAIR CARRICK expressed the understanding that if the
standards were revoked, DOT&PF would not have these numbers.
She questioned whether the department was tracking any changes.
1:31:44 PM
MR. MILLS deferred to DLWD. He stated that he could also
request the information from DOT&PF; however, he expressed the
understanding that this data would be under DLWD.
1:32:13 PM
JEREMY APPLEGATE, Program Manager, Wage and Hour, Division of
Labor Standards and Safety, Department of Labor and Workforce
Development, responded that the department does not have this
information.
CO-CHAIR CARRICK commented that this information would be
researched and provided to the committee.
MR. APPLEGATE suggested that Research and Analysis under DLWD
may have the information.
1:32:48 PM
REPRESENTATIVE MCCABE questioned whether the language in the
proposed legislation would add more pressure on remote villages
that currently cannot find contractors to do work there.
CO-CHAIR CARRICK opined that using the term "practicable" in the
proposed bill would prevent this restriction. She acknowledged
that certain areas have struggles with certain projects, and she
maintained that the proposed legislation does not have a
"forcing mechanism." She continued that this is where the
distinction lies, and she does not foresee a reduction of
construction contracts in the state. She deferred to Mr.
Dimond.
1:34:57 PM
MR. DIMOND advised the committee that the proposed bill would be
taking measures to rebuild the state's workforce; furthermore,
it is not meant to be punitive and a detriment to contractors.
He expressed the opinion that the language "extent practicable"
should not be a hindrance to contractors that cannot fill the
apprenticeships in villages and other areas.
REPRESENTATIVE MCCABE, with a follow up, questioned whether
apprentices could gain hours to become journeymen while working
in nonunion companies or jobs.
MR. DIMOND responded in the affirmative, as there are many
apprenticeship programs in the state, union and nonunion, and
this should not be an issue.
1:36:58 PM
CO-CHAIR CARRICK announced that HB 186 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 186 Sponsor Statement.pdf |
HTRA 4/24/2025 1:00:00 PM |
HB 186 |
| HB 186 Sectional.pdf |
HTRA 4/24/2025 1:00:00 PM |
HB 186 |
| HB 186 Fiscal Note HB186-DOT-CAA-04-18-2025.pdf |
HTRA 4/24/2025 1:00:00 PM |
HB 186 |
| HB 186 Fiscal Note DOLWD-WH-04-16-25.pdf |
HTRA 4/24/2025 1:00:00 PM |
HB 186 |
| HB 186 Letter of Support BCTC South-Central.pdf |
HTRA 4/24/2025 1:00:00 PM |
HB 186 |
| HB 186 Presentation.pdf |
HTRA 4/24/2025 1:00:00 PM |
HB 186 |
| HB 186 Letter of Support WSCC.pdf |
HTRA 4/24/2025 1:00:00 PM |
HB 186 |
| HB 186 Letter of Support Operating Engineers.pdf |
HTRA 4/24/2025 1:00:00 PM |
HB 186 |