05/02/1998 09:35 AM House FIN

HOUSE BILL NO. 479                                                             
                                                                               
"An Act relating to recognition of employers who hire                          
Alaskans."                                                                     
                                                                               
RANDY LORENZ, INTERN-STAFF, REPRESENTATIVE NORMAN ROKEBERG,                    
pointed out that Department of Labor statistics indicate                       
that in 1996 about one third of job openings went to out-                      
of-state workers.  Companies in Alaska paid total wages                        
topping $900 million dollars to nonresidents.                                  
                                                                               
Mr. Lorenz added, between 20,000 and 30,000 Alaskans were                      
unemployed in any given month in 1996, while 52,000                            
nonresidents gained employment here in the State.  HB 479                      
was written with the intention to induce companies to hire                     
within the State by awarding them with an "Alaska Hire"                        
seal, modeled after the "Made in Alaska" logo.                                 
                                                                               
HB 479 would help the State initiatives to curb out-of-                        
state hire by giving companies an incentive to hire Alaskan                    
workers.  Nonresidents often spend portions of their wages                     
in their home states, decreasing the multiplier affect and                     
depriving Alaska of the full economic benefits of                              
employment created in the Alaska economy.                                      
                                                                               
Mr. Lorenz pointed out that the Department of Labor                            
analysis indicates that nonresidents who spend even one                        
quarter of their earnings outside Alaska, take away $100-                      
$200 million dollars from the State economy.                                   
                                                                               
ED FLANAGAN, DEPUTY COMMISSIONER, DEPARTMENT OF LABOR,                         
provided Committee members with a copy of an amendment and                     
proposed change to the legislation.  He noted that the                         
proposed amendment embodies in concept what was discussed                      
in the House Labor and Commerce Committee.  [Copy on File].                    
                                                                               
The amendment would remove the fee and the collection of                       
the fee.  All employers with 80% or over Alaska hire would                     
be mailed a certificate.  He remarked that at this time                        
11,000 employers, or 70%, have hit the mark.                                   
                                                                               
Mr. Flanagan pointed out that the amendment was accompanied                    
with a revised straight general fund fiscal note as opposed                    
to the original $27.5 program receipt funding.                                 
                                                                               
Representative J. Davies MOVED the referenced amendment.                       
There being NO OBJECTION, it was adopted.                                      
                                                                               
Representative Kohring questioned the need for this                            
legislation; he believed that this is the obligation of the                    
Department.  Mr. Lorenz replied that placing it in statute                     
as a program provides a "platform" and caveat for                              
businesses. Mr. Flanagan added that this activity could not                    
be handled by the Department without a fiscal note.                            
                                                                               
Representative J. Davies MOVED to report CS HB 479 (FIN)                       
out of Committee with individual recommendations and with                      
the new fiscal note.  There being NO OBJECTION, it was                         
adopted.                                                                       
                                                                               
CS HB 479 (FIN) was reported out of Committee with a "no                       
recommendation" and with a fiscal note by the Department of                    
Labor and a zero fiscal note by the Alaska State                               
Legislature dated 4/24/98.