03/11/2020 03:15 PM House LABOR & COMMERCE

          HB 301-ELECTRICIAN & PLUMBER APPRENTICESHIPS                                                                      
                                                                                                                                
3:38:33 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ announced  that the next order  of business would                                                               
be  CS  FOR  HOUSE  BILL   NO.  301(L&C),  "An  Act  relating  to                                                               
certificates of fitness for plumbers and electricians."                                                                         
                                                                                                                                
3:39:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GABRIELLE LEDOUX,  Alaska  State Legislature,  as                                                               
prime sponsor, provided a brief summary  of HB 301.  She said the                                                               
bill is about adding the  current apprenticeship regulations into                                                               
statute.                                                                                                                        
                                                                                                                                
3:39:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  added that the purpose  in putting forward                                                               
this  legislation  is  to  ensure   that  apprenticeship  is  the                                                               
standard for trainees, as it has  been in Alaska for decades.  He                                                               
noted that he  does not support any attempt by  the Department of                                                               
Labor  &  Workforce  Development  (DLWD)  to  create  workarounds                                                               
around apprenticeship.                                                                                                          
                                                                                                                                
3:40:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES directed  attention to  a letter  from the                                                               
Alaska State  Home Building Association (ASHBA)  [included in the                                                               
committee packet].  She asked how HB 301 affects the ASHBA.                                                                     
                                                                                                                                
REPRESENTATIVE FIELDS  said there  might be some  confusion about                                                               
HB 301, because as written, the  bill changes nothing in terms of                                                               
how any industry  practices in Alaska today.  He  noted that [the                                                               
ASHBA] has  a separate bill  that would change the  standards for                                                               
plumbing.  He  offered his belief that the ASHBA  is objecting to                                                               
HB 301 because  they would prefer to go in  a different statutory                                                               
direction.  He  reiterated that the current  bill changes nothing                                                               
about the way in which the industry operates today.                                                                             
                                                                                                                                
3:41:27 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ opened public testimony.                                                                                        
                                                                                                                                
3:41:44 PM                                                                                                                    
                                                                                                                                
VICTOR   BANASZAK,   President,   Alaska  State   Home   Building                                                               
Association, read the following prepared statement:                                                                             
                                                                                                                                
     The Alaska State  Home Builders Association appreciates                                                                    
     the  opportunity  to comment  on  HB  301, relating  to                                                                    
     certificates of fitness  for plumbers and electricians.                                                                    
     We also support apprenticeships.                                                                                           
                                                                                                                                
     We  support  fewer   statutory  barriers  for  training                                                                    
     skilled trades.   We have long  supported state funding                                                                    
     for programs in workforce development.                                                                                     
                                                                                                                                
     Getting good qualified workers and  trades for our line                                                                    
     of  work is  very difficult.   Its   become a  national                                                                    
     crisis.   We are here  to ask you  not to make  it more                                                                    
     difficult.                                                                                                                 
                                                                                                                                
     Residential  construction contractors  do not  want and                                                                    
     do  not   need  to   be  included   in  AS   18.62  for                                                                    
     certificates of fitness.  We  are already well covered,                                                                    
     and  dont   wish to  be  included  in legislation  that                                                                    
     tightens   controls   on  apprenticeships   and   other                                                                    
     possible avenues to skilled trades.                                                                                        
                                                                                                                                
     We  would propose  that  HB 301  be  amended to  remove                                                                    
     residential construction from  certificates of fitness.                                                                    
     Residential construction  is licensed  separately under                                                                    
     AS  08.18.025,  and  we   also  comply  with  municipal                                                                    
     residential building codes,  which include inspections.                                                                    
     Mortgage financing requirements  also typically include                                                                    
     code compliance and energy efficiency standards.                                                                           
                                                                                                                                
     In other words, residential  construction has plenty of                                                                    
     government  and  regulatory oversight  on  construction                                                                    
     standards  that   are  outside  the   requirements  for                                                                    
     certificates of fitness.                                                                                                   
                                                                                                                                
     Conversely, state  law exempts certificates  of fitness                                                                    
     for  residential   construction  performed   by  owner-                                                                    
     builders,  and it  even  prescribes how  owner-builders                                                                    
     can list and sell  new construction that includes self-                                                                    
     installed  plumbing and  electrical.   Anyone who  says                                                                    
     that  certificates of  fitness should  be mandated  for                                                                    
     licensed, bonded, and insured  home builders is welcome                                                                    
     to explain why unlicensed  contractors in the state are                                                                    
     exempt and  allowed to install  their own  plumbing and                                                                    
     electrical.                                                                                                                
                                                                                                                                
     We feel  that HB  301 strengthens  federally registered                                                                    
     apprenticeship  programs, but  it does  not necessarily                                                                    
     help housing.                                                                                                              
                                                                                                                                
     If   enacted,   HB   301  should   remove   residential                                                                    
     construction  from  the  certificates  of  fitness  for                                                                    
     plumbers and electricians.                                                                                                 
                                                                                                                                
     Thank you for your consideration.                                                                                          
                                                                                                                                
3:44:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  questioned  whether under  current  state                                                               
law, licensed  and bonded commercial  home builders  are required                                                               
to use certificated electricians and plumbers.                                                                                  
                                                                                                                                
MR. BANASZAK  confirmed that  they are  required to  use licensed                                                               
and administrated  electricians and plumbers.   He explained that                                                               
they  risk getting  inspected by  the city  or the  state, during                                                               
which  the  inspector  can  ask what  entity  is  performing  the                                                               
plumbing and  electrical.  He  added that  if they are  not using                                                               
someone who is fully licensed  and bonded, the inspector can shut                                                               
down the project.                                                                                                               
                                                                                                                                
REPRESENTATIVE  HANNAN sought  clarification  as  to whether  the                                                               
state requires Mr. Banaszak to  use electricians and plumbers who                                                               
have certificates of fitness, even if they are subcontracted.                                                                   
                                                                                                                                
MR. BANASZAK confirmed that.                                                                                                    
                                                                                                                                
3:45:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES sought to clarify  that the ASHBA is asking                                                               
to  use   employees  or  subcontractors   that  do  not   have  a                                                               
certificate of fitness.   She asked if they no  longer wish to be                                                               
held to that current requirement.                                                                                               
                                                                                                                                
MR. BANASZAK  said their  biggest issue  is the  severe workforce                                                               
deficit,  adding  that its   the  number  one bottleneck  in  the                                                               
industry.    He  said  that  while  they  respect  this  body  of                                                               
governments  desire to keep the  highest standards for builders -                                                               
he would  hate to see  avenues for  high school students  and new                                                               
builders reduced.                                                                                                               
                                                                                                                                
3:46:47 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ  asked if  Mr. Banaszak  is suggesting  that high                                                               
school students should build residential housing in Alaska.                                                                     
                                                                                                                                
MR.  BANASZAK maintained  that  there are  programs  for them  to                                                               
begin learning about  building and selling homes.   He reiterated                                                               
that  he  opposes  regulating  to the  point  where  kids  coming                                                               
through those  programs will not  have avenues to continue  on if                                                               
they choose not to join a union.                                                                                                
                                                                                                                                
3:47:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES asked  if  Mr. Banaszak  is  asking to  be                                                               
exempt from what he is currently required to do.                                                                                
                                                                                                                                
MR. BANASZAK confirmed that.                                                                                                    
                                                                                                                                
3:48:16 PM                                                                                                                    
                                                                                                                                
BRAD AUSTIN,  Training Coordinator, Plumbers &  Pipefitters Local                                                               
Union 262,  expressed his  support for  HB 301.   He  offered his                                                               
belief that when  the plumbing trainee certificate  of fitness is                                                               
tied  to an  apprenticeship it  guarantees that  properly trained                                                               
apprentices will become journeymen.   He explained that the state                                                               
requires  a minimum  of 8,000  hours; however,  their program  is                                                               
five years  long and  requires at  least 10,000  hours.   He said                                                               
that since  1999, they have  turned out 45 apprentices  that have                                                               
become journeyman.   To conclude,  he reiterated his  belief that                                                               
 its  a great  move tie the trainee certificate of  fitness to an                                                               
apprenticeship program.   Its  a very  proven way to train  and I                                                               
think we turn out superior skilled tradesmen.                                                                                   
                                                                                                                                
3:50:44 PM                                                                                                                    
                                                                                                                                
RYAN MCGOVERN,  Plumbers & Pipefitters  Local Union  375, offered                                                               
his  belief   that  relaxing  these  standards   will  ultimately                                                               
jeopardize  the  quality  of craftsmen  and  potentially,  public                                                               
safety.                                                                                                                         
                                                                                                                                
3:52:15 PM                                                                                                                    
                                                                                                                                
PETER  JURCZAK,  Project   Manager,  Ketchikan  Mechanical  Inc.,                                                               
informed the  committee that  he was a  state inspector  with the                                                               
Department of Labor  & Workforce Development (DLWD)  for 29 years                                                               
and that  he is strongly in  favor of HB  301.  He said  when the                                                               
state adopted  requirements for the apprenticeship  program to be                                                               
part  of the  certificate of  fitness requirements  for trainees,                                                               
the  workmanship  improved  greatly.    Furthermore,  it  brought                                                               
continuity into  the program.   He added  that the  technology in                                                               
these  trades  is  changing  rapidly.     To  keep  up  with  the                                                               
technology, he  said, both the journeymen  and apprentices should                                                               
keep in  mind that an  apprenticeship program gives them  a solid                                                               
basis to continue on with their  careers.  He said he thinks that                                                               
the  state of  Alaska  should  support and  encourage  that.   He                                                               
emphasized that the apprenticeship  program leads to careers that                                                               
allow  these individuals  to work  anywhere in  the country.   He                                                               
went on  to say that  its  important  to have trained  workers on                                                               
residential projects.   He reiterated  that he  strongly supports                                                               
HB  301, the  apprenticeship requirements,  and the  accompanying                                                               
regulations.                                                                                                                    
                                                                                                                                
3:56:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  noted  the concern  about  having  enough                                                               
skilled tradespeople  available.  She  asked Mr. Jurczak  for his                                                               
insight, as  a previous  state inspector, on  how to  ensure that                                                               
there are skilled tradespeople available  for both the commercial                                                               
and  the  residential  industries  while still  adhering  to  the                                                               
statutory standards that Alaska has had.                                                                                        
                                                                                                                                
MR. JURCZAK offered  his belief that schools are  trying to steer                                                               
students in  that direction.   He said more people  are realizing                                                               
that they can  get paid while learning  through an apprenticeship                                                               
program, adding  that its   just a  matter of  educating students                                                               
and encouraging them to try a trade class.                                                                                      
                                                                                                                                
3:59:01 PM                                                                                                                    
                                                                                                                                
TOM FISHER, Owner, Aaron Plumping  and Heating Company, said from                                                               
a contractor's perspective, HB 301  is instrumental and essential                                                               
in ensuring  a properly  trained workforce  for the  plumbing and                                                               
electrical  trades,  which  will   minimize  the  probability  of                                                               
endangering  public health  and property,  as well  as themselves                                                               
and others.  Registered apprenticeship programs provide on-the-                                                                 
job  training,   mentoring,  structured  standards,   and  trade-                                                               
specific improvement  training programs aimed at  making sure the                                                               
participants are  given the  tools and resources  to be  the best                                                               
tradespeople  they can  be.   He  said registered  apprenticeship                                                               
programs  provide benefits  to career  seekers and  employers, as                                                               
well  as social  and economic  benefits to  the communities  they                                                               
serve.   He said that, as  a contractor, he pays  benefits into a                                                               
fund  to support  the apprenticeship  program that  he draws  his                                                               
labor pool from.   The participants are committed  to a five-year                                                               
program  with classroom  time and  a  learning facility  equipped                                                               
with the latest technology in  front of professional well-trained                                                               
instructors and  staff.  To  conclude, he reiterated  his support                                                               
for HB 301.                                                                                                                     
                                                                                                                                
4:02:32 PM                                                                                                                    
                                                                                                                                
VINCE   BELTRAMI,  President,   Alaska   AFL-CIO,  informed   the                                                               
committee that his prior job  was the statewide training director                                                               
at  the  NECA-IBEW  apprenticeship   program  in  2003  when  the                                                               
regulations were  modified to require all  certificate of fitness                                                               
holding  trainees  to be  registered  in  a federally  registered                                                               
apprenticeship  program.   He  said the  number  of trainees  and                                                               
apprentices grew quickly during that  time.  The new requirements                                                               
did   not   stifle   training  opportunities   for   Alaskans                                                                   
opportunities increased  significantly.  Furthermore,  it ensured                                                               
more  safety on  the  job  for workers  and  safer buildings  for                                                               
occupants  to  inhabit.    He noted  that  those  standards  have                                                               
remained intact, regardless of the  governor or commissioner, for                                                               
17 years.   He stated that its  been a  tremendous success story;                                                               
however,  the  recent  efforts  by   the  DLWD  to  derail  those                                                               
regulations threatens  to undo  that gold standard.   He  said he                                                               
applauds the effort  to codify the current  regulations into law.                                                               
He encouraged members to move HB 301 from committee.                                                                            
                                                                                                                                
4:06:13 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ closed public testimony.                                                                                        
                                                                                                                                
REPRESENTATIVE FIELDS  said its  been made  abundantly clear that                                                               
this bill  maintains the status  quo, which is  an apprenticeship                                                               
system that  works.   He addressed the  public comments  from 375                                                               
Alaska   construction  workers   and  contractors   that  opposed                                                               
watering down  existing regulations.   He  further noted  that HB
  supports  an  ecosystem  that flows  from  high  schools  to                                                               
colleges and provides  Alaskans with the opportunity  to get good                                                               
careers in the building trades.                                                                                                 
                                                                                                                                
4:07:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES   moved  to   report  CSHB   301,  Version                                                               
LS1506\E,  Fisher,  3/6/20,  out  of  committee  with  individual                                                               
recommendations  and  the  accompanying fiscal  notes.    Without                                                               
objection,  CSHB 301(L&C)  was  moved from  the  House Labor  and                                                               
Commerce Standing Committee.