03/11/2022 09:00 AM Senate EDUCATION
| Audio | Topic | 
|---|---|
| Start | |
| SB146 | |
| HB132 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 146 | TELECONFERENCED | |
| += | SB 34 | TELECONFERENCED | |
| *+ | HB 132 | TELECONFERENCED | |
| + | TELECONFERENCED | 
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE EDUCATION STANDING COMMITTEE                                                                             
                         March 11, 2022                                                                                         
                           9:06 a.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Roger Holland, Chair                                                                                                    
Senator Shelley Hughes                                                                                                          
Senator Tom Begich                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Gary Stevens, Vice Chair                                                                                                
Senator Peter Micciche                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 146                                                                                                             
"An Act relating to costs of and charges for textbooks and other                                                                
course materials required for University of Alaska courses; and                                                                 
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED CSSB 146(EDC) OUT OF COMMITTEE                                                                                     
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 132(FIN)                                                                                
"An Act relating to technical education and registered                                                                          
apprenticeships."                                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 34                                                                                                              
"An Act providing for the establishment of public schools                                                                       
through state-tribal compacts."                                                                                                 
                                                                                                                                
     - REMOVED FROM AGENDA                                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 146                                                                                                                  
SHORT TITLE: UNIVERSITY: TEXTBOOKS/MATERIALS COST                                                                               
SPONSOR(s): SENATOR(s) MYERS                                                                                                    
                                                                                                                                
01/18/22       (S)       PREFILE RELEASED 1/7/22                                                                                
01/18/22       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/22       (S)       EDC                                                                                                    
02/25/22       (S)       EDC AT 9:00 AM BUTROVICH 205                                                                           
02/25/22       (S)       Heard & Held                                                                                           
02/25/22       (S)       MINUTE(EDC)                                                                                            
03/11/22       (S)       EDC AT 9:00 AM BUTROVICH 205                                                                           
                                                                                                                                
BILL: HB 132                                                                                                                  
SHORT TITLE: SCHOOL APPRENTICESHIP PROGS; TAX CREDITS                                                                           
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
03/10/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/10/21       (H)       L&C, EDC, FIN                                                                                          
03/15/21       (H)       L&C AT 6:30 PM BARNES 124                                                                              
03/15/21       (H)       Heard & Held                                                                                           
03/15/21       (H)       MINUTE(L&C)                                                                                            
03/22/21       (H)       L&C AT 3:15 PM DAVIS 106                                                                               
03/22/21       (H)       Moved CSHB 132(L&C) Out of Committee                                                                   
03/22/21       (H)       MINUTE(L&C)                                                                                            
03/22/21       (H)       L&C AT 6:30 PM DAVIS 106                                                                               
03/22/21       (H)       -- MEETING CANCELED --                                                                                 
03/25/21       (H)       L&C RPT CS(L&C) NEW TITLE 5DP 1AM                                                                      
03/25/21       (H)       DP:     SNYDER,    SCHRAGE,     MCCARTY,                                                               
                         SPOHNHOLZ, FIELDS                                                                                      
03/25/21       (H)       AM: NELSON                                                                                             
04/09/21       (H)       EDC AT 8:00 AM DAVIS 106                                                                               
04/09/21       (H)       Heard & Held                                                                                           
04/09/21       (H)       MINUTE(EDC)                                                                                            
04/19/21       (H)       EDC AT 8:00 AM DAVIS 106                                                                               
04/19/21       (H)       Heard & Held                                                                                           
04/19/21       (H)       MINUTE(EDC)                                                                                            
04/23/21       (H)       EDC AT 8:00 AM DAVIS 106                                                                               
04/23/21       (H)       Moved CSHB 132(EDC) Out of Committee                                                                   
04/23/21       (H)       MINUTE(EDC)                                                                                            
04/28/21       (H)       EDC RPT CS(EDC) NEW TITLE 3DP 3NR                                                                      
04/28/21       (H)       DP: ZULKOSKY, DRUMMOND, STORY                                                                          
04/28/21       (H)       NR: CRONK, GILLHAM, HOPKINS                                                                            
05/06/21       (H)       FIN AT 9:00 AM ADAMS 519                                                                               
05/06/21       (H)       Heard & Held                                                                                           
05/06/21       (H)       MINUTE(FIN)                                                                                            
05/07/21       (H)       FIN AT 1:30 PM ADAMS 519                                                                               
05/07/21       (H)       Heard & Held                                                                                           
05/07/21       (H)       MINUTE(FIN)                                                                                            
05/14/21       (H)       FIN AT 1:30 PM ADAMS 519                                                                               
05/14/21       (H)       Moved CSHB 132(FIN) Out of Committee                                                                   
05/14/21       (H)       MINUTE(FIN)                                                                                            
05/18/21       (H)       FIN RPT CS(FIN) NEW TITLE 7DP 1DNP 2NR                                                                 
05/18/21       (H)       DP: ORTIZ, EDGMON, LEBON, THOMPSON,                                                                    
                         WOOL, MERRICK, FOSTER                                                                                  
05/18/21       (H)       DNP: CARPENTER                                                                                         
05/18/21       (H)       NR: JOHNSON, JOSEPHSON                                                                                 
05/19/21       (H)       LIMIT ALL DEBATE TO 2 MIN EACH Y23 N16                                                                 
                         E1                                                                                                     
05/19/21       (H)       TRANSMITTED TO (S)                                                                                     
05/19/21       (H)       VERSION: CSHB 132(FIN)                                                                                 
01/18/22       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/22       (S)       EDC, L&C, FIN                                                                                          
03/11/22       (S)       EDC AT 9:00 AM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ED KING, Staff                                                                                                                  
Senator Roger Holland                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented committee substitute changes to SB
146.                                                                                                                            
                                                                                                                                
SARA PERMAN, Government Relations Manager                                                                                       
University of Alaska                                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions on SB 146.                                                                             
                                                                                                                                
SENATOR ROBERT MYERS                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor SB 146.                                                                                           
                                                                                                                                
REPRESENTATIVE ZACK FIELDS                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 132.                                                                                        
                                                                                                                                
TERI COTHREN, Associate Vice President                                                                                          
Workforce Development                                                                                                           
University of Alaska, Anchorage                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on HB 132.                                                                        
                                                                                                                                
MARIKO SELLE, Director                                                                                                          
Workforce Development                                                                                                           
South Central Alaska Health Education Center                                                                                    
Alaska Primary Care Association (APCA)                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on HB 132.                                                                        
                                                                                                                                
ALICIA MALTBY, President                                                                                                        
Associated Builders and Contractors                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on HB 132.                                                                        
                                                                                                                                
GRACE KUBITZ, Staff                                                                                                             
Representative Zach Fields                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided the sectional analysis on HB 132.                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:06:08 AM                                                                                                                    
CHAIR  ROGER   HOLLAND  called  the  Senate   Education  Standing                                                             
Committee meeting  to order at 9:06  a.m. Present at the  call to                                                               
order were Senators Hughes, Begich and Chair Holland.                                                                           
                                                                                                                                
          SB 146-UNIVERSITY: TEXTBOOKS/MATERIALS COST                                                                       
                                                                                                                                
9:06:40 AM                                                                                                                    
CHAIR HOLLAND announced the consideration  of SENATE BILL NO. 146                                                               
"An Act relating to costs of  and charges for textbooks and other                                                               
course materials  required for University of  Alaska courses; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
CHAIR HOLLAND  noted there  was a  committee substitute  (CS) for                                                               
the committee to consider.                                                                                                      
                                                                                                                                
9:06:54 AM                                                                                                                    
SENATOR HUGHES  moved to adopt the  proposed CS for SB  146, work                                                               
order 32-LS1062\I, as the working document.                                                                                     
                                                                                                                                
9:07:07 AM                                                                                                                    
CHAIR HOLLAND objected for purposes of discussion.                                                                              
                                                                                                                                
9:07:15 AM                                                                                                                    
ED KING, Staff, Senator Roger  Holland, Alaska State Legislature,                                                               
Juneau, Alaska,  read the explanation of  changes between Version                                                               
B and Version I.                                                                                                                
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     The Senate Education Committee Substitute makes three                                                                      
     changes:                                                                                                                   
                                                                                                                                
     1. Added the phrase "to the extent practicable" on                                                                         
         page 1, line 13.                                                                                                       
     2. Included "low-cost" resources on page 2, line 5.                                                                        
     3. Pushed the effective date beyond the expected                                                                           
        completion time of the current university system                                                                        
        upgrade (now July 1, 2026).                                                                                             
                                                                                                                                
9:07:41 AM                                                                                                                    
CHAIR  HOLLAND  removed  his  objection.   He  found  no  further                                                               
objection and CSSB 146 was adopted.                                                                                             
                                                                                                                                
9:08:04 AM                                                                                                                    
SARA PERMAN, Government Relations  Manager, University of Alaska,                                                               
Anchorage, Alaska, stated that changes  to the fiscal note for SB
146  were based  on the  concerns expressed  during the  previous                                                               
meeting. The  university reviewed the fiscal  note and determined                                                               
that $802,000 per  year is absorbed in  salaries since additional                                                               
people  are   not  being  hired.   Therefore  the  amount   is  a                                                               
productivity  cost  not  a  fiscal   cost  and  was  zeroed  out.                                                               
Therefore, it  has been  zeroed out.  A one-time  capital upfront                                                               
cost   of  $397,000   remains  for   consulting  and   Office  of                                                               
Information  Technology staff.  An upgrade  for the  university's                                                               
system remains  a cost  in the fiscal  note rather  than assuming                                                               
separate funding will pass.                                                                                                     
                                                                                                                                
9:09:28 AM                                                                                                                    
SENATOR  BEGICH   acknowledged  the  work  of   the  sponsor  and                                                               
university in  producing SB  146. He  affirmed his  commitment to                                                               
upgrading  a  university  system  older than  one  of  his  staff                                                               
members. The system  is a critical component  of the university's                                                               
budget  request.   He  opined  that  the   Education  Committee's                                                               
influence would be helpful given  the difficulties the university                                                               
has experienced over the past few years.                                                                                        
                                                                                                                                
9:10:25 AM                                                                                                                    
CHAIR  HOLLAND  found  no  further   comments  or  questions  and                                                               
solicited a motion.                                                                                                             
                                                                                                                                
9:10:46 AM                                                                                                                    
SENATOR HUGHES moved to report the  CS for SB 146, work order 32-                                                               
LS1062\I,  from  committee  with individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
9:11:05 AM                                                                                                                    
CHAIR HOLLAND found  no objection and CSSB 146  was reported from                                                               
the Senate Education Standing Committee.                                                                                        
                                                                                                                                
9:11:28 AM                                                                                                                    
SENATOR MYERS, Alaska State  Legislature, Juneau, Alaska, sponsor                                                               
of  SB 146,  thanked  the  committee and  the  chair's staff  for                                                               
putting together the  CS. He also thanked the  university for its                                                               
work  and  acknowledged  its need  for  an  upgraded  information                                                               
system. Pending funding, the system  is expected to be functional                                                               
by 2025, which moves the effective date for SB 146 to 2026.                                                                     
                                                                                                                                
                                                                                                                                
9:12:34 AM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
                                                                                                                                
        HB 132-SCHOOL APPRENTICESHIP PROGS; TAX CREDITS                                                                     
                                                                                                                                
9:12:41 AM                                                                                                                    
CHAIR   HOLLAND  reconvened   the  meeting   and  announced   the                                                               
consideration of CS FOR HOUSE  BILL NO. 132(FIN) "An Act relating                                                               
to technical education and registered apprenticeships."                                                                         
                                                                                                                                
9:13:55 AM                                                                                                                    
REPRESENTATIVE   ZACK   FIELDS,   District   20,   Alaska   State                                                               
Legislature, Juneau,  Alaska, sponsor  of HB 132,  recognized Ray                                                               
Stevens and the Labor and  Commerce Committee for the origination                                                               
of HB 132 and Representative  Claman, who assisted in carrying it                                                               
across the House floor.                                                                                                         
                                                                                                                                
REPRESENTATIVE   FIELDS    said   Alaska    has   high-performing                                                               
apprenticeship   programs   in   traditional   trades   and   new                                                               
industries.  The  Alaska  Primary   Care  Association  is  a  new                                                               
industry  experiencing large-scale  apprenticeship expansion.  By                                                               
expanding  career and  technical education  (CTE) and  school-to-                                                               
apprenticeship  program   opportunities,  HB  132   will  benefit                                                               
students who  cannot afford  college or need  to remain  in their                                                               
communities.  Apprenticeships are  a vehicle  for individuals  to                                                               
have a  promising career  and potentially  earn a  college degree                                                               
without  acquiring student  debt. Making  opportunities available                                                               
supports employers looking for skilled  workers to fill demanding                                                               
jobs.  Apprenticeships  are   expanding  nationally.  Good  state                                                               
policy  positions Alaska  to capture  and  capitalize on  federal                                                               
apprenticeship grants.                                                                                                          
                                                                                                                                
9:15:46 AM                                                                                                                    
REPRESENTATIVE  FIELDS  moved   to  slide  2  and   said  HB  132                                                               
establishes an employer  tax credit of $1,250  per apprentice and                                                               
is  based  on a  successful  model  used  in South  Carolina.  He                                                               
briefly  explained  South  Carolina's  apprenticeship  expansion.                                                               
Although  Alaska is  a leader  in union  apprenticeship programs,                                                               
modeling  South Carolina's  apprenticeship program  can diversify                                                               
and  expand  Alaska's   apprenticeships  by  embedding  non-union                                                               
apprenticeships into colleges.                                                                                                  
                                                                                                                                
9:17:00 AM                                                                                                                    
REPRESENTATIVE  FIELDS turned  to slide  3 and  said that  HB 132                                                               
provides  statutory  direction to  the  Department  of Labor  and                                                               
Workforce  Development (DOLWD)  and the  Department of  Education                                                               
and  Early  Development  (DEED)  to  collaborate  in  support  of                                                               
apprenticeships at  no cost to the  state. The goal is  for DOLWD                                                               
to determine  ways federal apprenticeship  grants can be  used to                                                               
partner  with  school districts  to  support  CTE and  school-to-                                                               
apprenticeship  programs  since  the Perkins  funding  stream  is                                                               
inadequate for Alaska's needs.                                                                                                  
                                                                                                                                
9:17:58 AM                                                                                                                    
REPRESENTATIVE FIELDS  advanced to  slide 5 and  said HB  132 was                                                               
crafted using  language that  respects the  Board of  Regents and                                                               
directs the University  of Alaska (UA) to explore  ways to expand                                                               
dual   credit   for   CTE  courses   and   college   credit   for                                                               
apprenticeship  participants. There  are  already  many types  of                                                               
apprenticeships  that  could  receive college  credit.  Making  a                                                               
college pathway  available to  working-class students  would help                                                               
advance their careers while they  work. He listed the broad range                                                               
of union and non-union stakeholders that support HB 132.                                                                        
                                                                                                                                
9:19:08 AM                                                                                                                    
REPRESENTATIVE  FIELDS  moved  to  slide   7  and  said  DEED  is                                                               
interested   in   expanding   apprenticeships,   and   DOLWD   is                                                               
supportive.  HB  132  has  zero   cost  implications  for  either                                                               
department.  The sole  financial implication  centers on  the tax                                                               
credit.                                                                                                                         
                                                                                                                                
REPRESENTATIVE FIELDS  summarized that  HB 132  would incentivize                                                               
employer   participation    and   friendship,    support   cross-                                                               
departmental collaboration, support  school districts seeking CTE                                                               
and  apprenticeship programs,  and expand  dual-credit and  post-                                                               
secondary pathway programs.                                                                                                     
                                                                                                                                
9:20:08 AM                                                                                                                    
SENATOR  BEGICH  stated that  Senator  Bishop  and Stedman  asked                                                               
Commissioner  Johnson how  to fix  Alaska's low-ranking  national                                                               
test  scores   when  reviewing   SB  111.   Commissioner  Johnson                                                               
responded that  focus should be  on the five  measures identified                                                               
in  Alaska's  Education  Challenge. Alaska  is  addressing  those                                                               
measures through  several bills. He  asked if HB 132  addresses a                                                               
measure identified  in Alaska's  Education Challenge  to increase                                                               
career and technical education.                                                                                                 
                                                                                                                                
REPRESENTATIVE  FIELDS  replied  yes, HB  132  provides  baseline                                                               
policy support  to state agencies  by encouraging the  search for                                                               
apprenticeship   and   CTE   opportunities.  He   said   specific                                                               
apprenticeship opportunities,  such as  teaching apprenticeships,                                                               
should  be   sought  after  and  necessary   statutory  baselines                                                               
established.                                                                                                                    
                                                                                                                                
9:21:41 AM                                                                                                                    
SENATOR BEGICH  stated that the  Finance Committee is  engaged in                                                               
this process,  and the Education Committee  should take advantage                                                               
of the moment.                                                                                                                  
                                                                                                                                
9:22:03 AM                                                                                                                    
SENATOR  HUGHES asked  if  the university  and  DLOWD were  given                                                               
timeframes  to  submit  proposals  for  CTE  apprenticeships  and                                                               
pathways.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  FIELDS said  no,  the university  and DLOWD  have                                                               
been investigating  and developing  proposals for some  time. The                                                               
legislature must  inform agencies  that it  supports the  work by                                                               
providing  statutory baselines.  He suggested  that Teri  Cothren                                                               
could provide insight  into what the university  has been working                                                               
on, and he could give details on DLOWDs proposals.                                                                              
                                                                                                                                
9:23:26 AM                                                                                                                    
SENATOR HUGHES said she was  excited about expanding broadband in                                                               
Alaska and the online coursework  capabilities it will provide to                                                               
villages off  the road system.  She opined that Alaska  should be                                                               
gearing  up now  to offer  individuals the  ability to  train for                                                               
high-paying  jobs that  might be  of  interest and  fit off  road                                                               
communities.  She  stated  her   belief  that  the  expansion  of                                                               
broadband  pairs  well  with  CTE  and  apprenticeship  expansion                                                               
because it can  provide job opportunities to  areas that struggle                                                               
to  have an  economic  base.  She opined  that  marrying the  two                                                               
concepts could be a game changer for Alaska.                                                                                    
                                                                                                                                
9:24:48 AM                                                                                                                    
REPRESENTATIVE  FIELDS agreed.  He said  that the  Alaska Primary                                                               
Care Association (APCA) apprenticeship  model plus college credit                                                               
shows potential  because distance-delivered instruction  to rural                                                               
community health centers  is only possible when  the two concepts                                                               
of  apprenticeship and  video  instruction  are connected.  Other                                                               
organizations will have  the ability to replicate  the APCA model                                                               
and   benefit  more   people  as   broadband  expands   to  other                                                               
communities.                                                                                                                    
                                                                                                                                
9:25:18 AM                                                                                                                    
SENATOR HUGHES said  schools and clinics provide  state jobs that                                                               
are  wonderful,  and she  supports  training  Alaskans for  those                                                               
positions. However,  job opportunities  outside of  state funding                                                               
bring dollars to grow and  strengthen the economy. She stated her                                                               
desire for  broadband expansion and apprenticeships  to bring new                                                               
opportunities into the state.                                                                                                   
                                                                                                                                
9:26:16 AM                                                                                                                    
TERI  COTHREN, Associate  Vice President,  Workforce Development,                                                               
University  of   Alaska,  Anchorage,  Alaska,  stated   that  the                                                               
university   supports  HB   132   and  expanding   apprenticeship                                                               
pathways.  The  workforce   development  office  also  encourages                                                               
existing and  continued partnerships between UA,  DOLWD, and DEED                                                               
because  it helps  the  state be  responsive  to workforce  needs                                                               
while  expanding access  to education.  She  opined that  federal                                                               
infrastructure  funding ties  in nicely  with apprenticeships  to                                                               
help  address workforce  needs. The  university wants  to partner                                                               
with  DOLWD  and  DEED  to   expand  the  pathways  between  dual                                                               
enrollment    opportunities    in   secondary    education    and                                                               
apprenticeship  pathways   for  apprentices  and   journeymen  to                                                               
continue  their education  for career  advancement. She  provided                                                               
examples of university partnerships  and how they assist students                                                               
and  employers.  Growing  a  solid   workforce  is  core  to  the                                                               
university's  mission. She  stated that  the university  wants to                                                               
provide  Alaskans   pathways  for  upward  mobility   by  earning                                                               
certifications and  degrees that lead to  employment and advanced                                                               
careers.                                                                                                                        
                                                                                                                                
9:30:24 AM                                                                                                                    
MARIKO  SELLE,  Workforce  Development  Director,  South  Central                                                               
Alaska Health  Education Center, Alaska Primary  Care Association                                                               
(APCA), Anchorage, Alaska,  stated she fully supports  HB 132 and                                                               
its  potential  to open  doors  into  health and  human  services                                                               
careers for youth and  adults through registered apprenticeships.                                                               
The  Alaska  Primary Care  Association  has  been a  multi-agency                                                               
sponsor of registered apprenticeships  since 2017. Being a multi-                                                               
agency sponsor  means working with various  healthcare employers,                                                               
including but not limited to  federally qualified health centers.                                                               
APCA has  healthcare apprentices learning and  working throughout                                                               
Alaska. Currently, apprenticeships offered are:                                                                                 
                                                                                                                                
   • Medical Assistant                                                                                                          
   • Medical Secretary                                                                                                          
   • Electronic Records Specialist                                                                                              
   • Direct Support Specialist                                                                                                  
   • Pharmaceutical Technician                                                                                                  
   • Billing and Coding Specialist                                                                                              
   • Community Health Worker                                                                                                    
   • Dental Assistant                                                                                                           
                                                                                                                                
MS. SELLE  stated that apprenticeships  are an innovative  way to                                                               
recruit  and retain  workers critical  to  the healthcare  field.                                                               
When  Alaska  has strong  apprenticeship  policies,  it puts  the                                                               
state in a  better position to garner federal  funding. The model                                                               
works  well  for rural  Alaska  but  also  in urban  areas  where                                                               
mentors are training staff. The  recruitment pool for entry-level                                                               
jobs is the people who live  in the community, which means people                                                               
are  hired  without  experience  and are  trained  by  staff.  An                                                               
apprenticeship  model provides  structured  formal education  for                                                               
individuals  to learn  needed skills  through a  didactic related                                                               
technical  instructor (RTI)  while  being  locally mentored.  The                                                               
University  of  Alaska  (UAA)  career   ladder  is  open  to  the                                                               
apprentices at  APCA to create  a partnership with UA.  APCA also                                                               
partners with  Alaska Pacific University so  apprentices can earn                                                               
an undergraduate  certificate after completing  an apprenticeship                                                               
program. She stated  that the programs are well  suited for youth                                                               
pursuing a career  track versus a college track.  APCA works with                                                               
school  districts  to  provide  pathways  to  career-minded  high                                                               
school students to  earn college credit while  following a career                                                               
path.                                                                                                                           
                                                                                                                                
9:36:03 AM                                                                                                                    
ALICIA  MALTBY, President,  Associated  Builders and  Contractors                                                               
(ABC),  Anchorage, Alaska,  said  ABC is  the  voice of  Alaska's                                                               
construction  industry.  It  advocates  free  enterprise  ideals,                                                               
develops workforce  training, and  provides contractors  with the                                                               
resources  required  to  compete  in  an  ever-changing  business                                                               
environment.  ABC  operates  one of  the  largest  apprenticeship                                                               
programs  in Alaska  through its  member  employee companies  and                                                               
self-study. She stated that ABC  believes training is integral to                                                               
Alaska's  economy. Too  often,  public  entities debate  policies                                                               
that  attempt   to  pick  winners   and  losers   among  training                                                               
opportunities  available  to  Alaskans. She  opined  that  policy                                                               
around  training  should  promote  all  opportunities,  including                                                               
federally   approved  apprenticeship   programs  for   on-the-job                                                               
training,  self-study,   and  robust  vocational   and  technical                                                               
options, including secondary education.  ABC supports the passage                                                               
of  HB  132  because  it is  a  responsible,  collaborative,  and                                                               
positive  step  in  promoting  more  training  opportunities  for                                                               
Alaska but will  remain neutral on the  apprenticeship tax credit                                                               
provision.  She   stated  her  appreciation   for  Representative                                                               
Fields' work and partnership on HB 132.                                                                                         
                                                                                                                                
9:37:40 AM                                                                                                                    
CHAIR  HOLLAND asked  if HB  132  was based  on North  Carolinas                                                                
model.                                                                                                                          
                                                                                                                                
REPRESENTATIVE FIELDS replied  that the tax credit  portion of HB
132 was based on South Carolina's successful tax credit.                                                                        
                                                                                                                                
CHAIR HOLLAND  asked whether HB  132 was based entirely  on South                                                               
Carolina's model.                                                                                                               
                                                                                                                                
REPRESENTATIVE FIELDS responded that  only the tax credit portion                                                               
of  HB  132  followed  the   South  Carolina  model.  The  policy                                                               
structure for HB 132 was  inspired by the incredible expansion of                                                               
APCA's  apprenticeship program  that started  in 2017.  He stated                                                               
that he  worked for  DOLWD when the  program started  and noticed                                                               
gaps in  statutory support for  cross-departmental collaboration.                                                               
He also saw gaps in support  for school districts trying to ready                                                               
students  for   apprenticeships.  He   provided  an   example  of                                                               
statutory  change   and  said  he  worked   with  several  school                                                               
districts to  determine how the legislature  could support school                                                               
efforts and scale up school-to-apprenticeship programs.                                                                         
                                                                                                                                
9:39:39 AM                                                                                                                    
CHAIR HOLLAND  said that  usually tax credits  are given  to spur                                                               
activity. He questioned whether a  tax credit was necessary since                                                               
employer demands  were not  being met. He  asked whether  the tax                                                               
credit was integral to HB 132.                                                                                                  
                                                                                                                                
9:40:13 AM                                                                                                                    
REPRESENTATIVE  FIELDS replied  that HB  132 would  be beneficial                                                               
even without the tax credit. However,  it is more potent with the                                                               
credit because employers  have startup costs, and  the tax credit                                                               
alleviates  risk.   He  said  that   more  employers   would  try                                                               
apprenticeships if the risk were  reduced. He provided APCA as an                                                               
example.  He   opined  that  employers  would   continue  to  use                                                               
apprentices because of the internal rate of return.                                                                             
                                                                                                                                
9:41:27 AM                                                                                                                    
CHAIR HOLLAND asked if it is  a one-time credit per apprentice or                                                               
employer.                                                                                                                       
                                                                                                                                
REPRESENTATIVE FIELDS responded that it  is a one-time credit per                                                               
apprentice.                                                                                                                     
                                                                                                                                
9:41:38 AM                                                                                                                    
SENATOR BEGICH stated he wanted  to emphasize that the tax credit                                                               
is  ongoing.  However,  once  a  tax  credit  is  applied  to  an                                                               
apprentice, the employer does not  continue to apply it yearly to                                                               
that apprentice.                                                                                                                
                                                                                                                                
9:41:51 AM                                                                                                                    
SENATOR  HUGHES said  that giving  a tax  credit means  the state                                                               
collects  less  revenue.  She  asked  if  an  employer  incentive                                                               
payment of $1,250 could be  set up using untapped federal dollars                                                               
instead of reducing state revenues through a tax credit.                                                                        
                                                                                                                                
9:42:58 AM                                                                                                                    
REPRESENTATIVE FIELDS answered  that federal apprenticeship funds                                                               
are  being used.  He  opined that  strong  statutory support  for                                                               
apprenticeships  puts  Alaska in  the  best  position to  capture                                                               
additional  apprenticeship  opportunities   that  arise.  The  US                                                               
Department  of  Labor announced  a  new  round of  apprenticeship                                                               
grants  one month  ago. He  stated  his belief  that DOLWD  could                                                               
incentivize new employers who start  an apprenticeship program by                                                               
offering $1,250  to offset the  program costs. However,  he would                                                               
want to  talk to  DOLWD about opportunity  costs compared  to the                                                               
current  allocation  of  the American  Apprenticeship  Initiative                                                               
grant,  which is  the  main ongoing  funding  stream. The  Alaska                                                               
State  Hospital   and  Nursing   Home  Association   (ASHNA),  in                                                               
partnership with APCA, is applying for  one of the new grants. If                                                               
successful,  it will  significantly scale  up apprenticeships  in                                                               
healthcare. He  concluded that he  is hesitant to  suppose $1,250                                                               
could  universally  be  issued  as  an  incentive  without  fully                                                               
understanding funding.                                                                                                          
                                                                                                                                
9:44:20 AM                                                                                                                    
SENATOR  HUGHES   said  it  is   worth  exploring   because  many                                                               
organizations,  such  as community  health  clinics,  do not  pay                                                               
taxes.  She  opined that  everyone  should  be motivated  without                                                               
impacting state revenue if it is feasible.                                                                                      
                                                                                                                                
9:44:50 AM                                                                                                                    
REPRESENTATIVE FIELDS  noted that  the Finance  Committee amended                                                               
HB 132  to make  the credit  refundable so that  it is  equal for                                                               
non-profit   and    for-profit   organizations.    For-profit   C                                                               
Corporation    taxpayers   get    a   tax    credit.   Non-profit                                                               
organizations, like APCA,  would be paid $1,250  because the cost                                                               
impact to the organization would be the same.                                                                                   
                                                                                                                                
9:45:28 AM                                                                                                                    
GRACE KUBITZ, Staff, Representative Zach Fields, Alaska State                                                                   
Legislature, Juneau, Alaska, read the sectional analysis for HB
132:                                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
             Sectional Analysis for CSHB 132 ver N                                                                          
                                                                                                                                
     Section  1:  This section  names  the  bill the  Alaska                                                                  
     Apprenticeship Expansion Act.                                                                                              
                                                                                                                                
     Section 2:                                                                                                               
          AS 14.07.020(a). Duties of the department. Adds                                                                       
     to the duties of the  Department of Education and Early                                                                    
     Development  that   they  must  collaborate   with  the                                                                    
     Department  of  Labor   and  Workforce  Development  to                                                                    
     provide  financial  and  technical  support  to  school                                                                    
     districts    creating    or   expanding    school    to                                                                    
     apprenticeship   programs   or   concurrent   secondary                                                                    
     education and apprenticeship programs.                                                                                     
                                                                                                                                
     DEED  must also  provide  technical  support to  school                                                                    
     districts  seeking   to  provide  science,   math,  and                                                                    
     engineering credit  for career and  technical education                                                                    
     courses,  and provide  opportunities to  participate in                                                                    
     concurrent vocational education,  training, and on-the-                                                                    
     job  trade  experience  programs to  students  over  14                                                                    
     years of age enrolled in public secondary schools.                                                                         
                                                                                                                                
     Section 3:                                                                                                               
          AS 14.40.190(c). Duties and powers of Board of                                                                        
     Regents. Adds  to the  duties of  the Board  of Regents                                                                    
     and   their  designee.   It   requires   they  give   a                                                                    
     presentation  to the  proper legislative  committees in                                                                    
     the first year  of a legislative session  on their work                                                                    
     with  Department of  Labor to  provide credit  programs                                                                    
     for  concurrent  secondary   education  and  registered                                                                    
     apprenticeships.                                                                                                           
                                                                                                                                
     Section 4:                                                                                                               
          AS 43.20. Chapter 20. Alaska Net Income Tax Act.                                                                      
     Adds  a new  section to  AS 43.20.  The new  section is                                                                    
     described below:                                                                                                           
                                                                                                                                
     Sec.  43.20.055.  Registered   apprentice  tax  credit.                                                                  
     Creates  a  registered   apprentice  tax  credit.  This                                                                    
     section  clarifies   that  a  taxpayer  that   hires  a                                                                    
     registered  apprentice  and   employs  and  trains  the                                                                    
     registered  apprentice in  the state  is entitled  to a                                                                    
     credit. This section  also specifies other requirements                                                                    
     related to the registered apprentice tax credit:                                                                           
     ?  To  qualify  as  a  registered  apprentice  for  the                                                                    
     purposes of the credit, a  person must participate in a                                                                    
     registered  apprenticeship  program recognized  by  the                                                                    
     Department of Labor and Workforce Development;                                                                             
                                                                                                                                
     ?  The  amount of  credit  that  may  be applied  by  a                                                                    
     taxpayer for  each qualifying registered  apprentice is                                                                    
     $1,250.                                                                                                                    
     ? The  tax credit  may be applied  against the  tax for                                                                    
     the first  tax year ending on  or after the end  of the                                                                    
     employment  period.  The  credit  may not  be  used  to                                                                    
     reduce a person's tax liability  below zero for any tax                                                                    
     year, and  any credit or  portion of a credit  not used                                                                    
     may be applied in a later tax year. It is refundable.                                                                      
       A  taxpayer must  keep a  record of  the name  of the                                                                    
     registered apprentice whose  employment and training is                                                                    
     the   basis   for   a  credit,   and   the   registered                                                                    
     apprentice's hours  employed and period  of employment.                                                                    
     The   department   may   by  regulation   specify   the                                                                    
     documentation  that must  be  maintained  to support  a                                                                    
     claim  that  an  employee  qualifies  as  a  registered                                                                    
     apprentice.                                                                                                                
                                                                                                                                
9:48:27 AM                                                                                                                    
SENATOR  HUGHES asked  what  the process  is  for registering  an                                                               
apprentice  program  and  having  it  recognized  by  DOLWD.  She                                                               
wondered if there were statutory guidelines.                                                                                    
                                                                                                                                
9:48:51 AM                                                                                                                    
REPRESENTATIVE  FIELDS replied  that apprenticeship  is regulated                                                               
by the federal government under  the National Apprenticeship Act.                                                               
Every  registered  apprenticeship  is   registered  with  the  US                                                               
Department of Labor. States have  some options regarding how they                                                               
work with the federal government.  The Alaska Department of Labor                                                               
and Workforce  Development is unique  because it  works alongside                                                               
the US Department of Labor  in registering an apprenticeship. The                                                               
actual registration  is filed  with the  US Department  of Labor.                                                               
There is  an Office of  Apprenticeship in Anchorage.  Federal law                                                               
requires apprenticeships to be transparent.                                                                                     
                                                                                                                                
9:49:36 AM                                                                                                                    
SENATOR  HUGHES  asked for  a  description  of the  criteria  and                                                               
process  that a  new employer  would go  through to  establish an                                                               
apprenticeship.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  FIELDS  replied  that  there are  four  types  of                                                               
sponsors  single employer,  multi-employer, educational  training                                                               
institution, and self.  He stated that if a person  does not want                                                               
to  sponsor themself,  they can  ask a  single employer  to be  a                                                               
sponsor, such as a mom-and-pop  plumbing shop or hospital. Multi-                                                               
employers, like associations and  unions, pool resources to offer                                                               
apprenticeship  programs.   Educational  institutions   can  also                                                               
sponsor  apprenticeships  in  partnership with  an  employer  who                                                               
provides the training.                                                                                                          
                                                                                                                                
9:52:14 AM                                                                                                                    
SENATOR   HUGHES  questioned   whether  there   is  more   to  an                                                               
apprenticeship program than  filling out a form  to train someone                                                               
properly. She  asked if  there would  be paperwork  with detailed                                                               
criteria to meet.                                                                                                               
                                                                                                                                
REPRESENTATIVE  FIELDS replied  yes.  The  detailed criteria  are                                                               
called standards of apprenticeship. There  is a wide diversity of                                                               
apprenticeships,   and  each   has   detailed  standards.   Every                                                               
apprenticeship is a full-time job  with training. One hundred and                                                               
forty-four   is  the   minimum   number   of  related   technical                                                               
instruction hours per year for an apprenticeship.                                                                               
                                                                                                                                
Additionally, there are 2000 hours  of on-the-job training with a                                                               
mentor. The  US Department of  Labor oversees the  entire process                                                               
and  will  attempt  to  bring a  program  not  being  implemented                                                               
correctly back  into compliance. The  US Department of  Labor can                                                               
cancel the apprenticeship if corrections are not made.                                                                          
                                                                                                                                
9:54:52 AM                                                                                                                    
CHAIR  HOLLAND  stated that  career  and  technical education  is                                                               
essential  to Alaska's  education  and  landscape. The  committee                                                               
previously worked  on a bill to  create a middle college  to help                                                               
university-bound  students  get a  head  start.  He foresees  the                                                               
committee working  to provide similar opportunities  for students                                                               
pursuing trades instead of college. He  opined that HB 132 is one                                                               
piece of that puzzle.                                                                                                           
                                                                                                                                
9:55:45 AM                                                                                                                    
REPRESENTATIVE FIELDS thanked the committee for the opportunity                                                                 
to discuss HB 132.                                                                                                              
                                                                                                                                
9:55:50 AM                                                                                                                    
CHAIR HOLLAND held HB 132 in committee.                                                                                         
                                                                                                                                
                                                                                                                                
9:56:29 AM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Holland adjourned the Senate Education Standing Committee                                                                 
meeting at 9:56 a.m.                                                                                                            
| Document Name | Date/Time | Subjects | 
|---|---|---|
| CS SB 146 (SEDC).pdf | SEDC       3/11/2022 9:00:00 AM | SB 146 | 
| SB 146 Updated Fiscal Note (University).pdf | SEDC       3/11/2022 9:00:00 AM | SB 146 | 
| HB 132 Sponsor Statement 3.12.21.pdf | HL&C       3/15/2021 6:30:00 PM SEDC 3/11/2022 9:00:00 AM | HB 132 | 
| HB 132 Sectional Analysis ver N 1.19.22.pdf | SEDC       3/11/2022 9:00:00 AM | HB 132 | 
| HB 132 Summary of Changes ver O to ver N 5.15.21.pdf | SEDC       3/11/2022 9:00:00 AM | HB 132 | 
| HB 132 Letter of Support - AGC 3.2.22.pdf | SEDC       3/11/2022 9:00:00 AM | HB 132 | 
| HB 132 Letter of Support - ABC Alaska 2.24.22.pdf | SEDC       3/11/2022 9:00:00 AM | HB 132 | 
| HB 132 Letter of Support - ASHNA 3.11.21.pdf | HL&C       3/15/2021 6:30:00 PM SEDC 3/11/2022 9:00:00 AM | HB 132 | 
| HB 132 Letter of Support - Matsu Borough School District 2.24.21.pdf | HL&C       3/15/2021 6:30:00 PM SEDC 3/11/2022 9:00:00 AM | HB 132 | 
| HB 132 Letter of Support - Ironworkers Business Manager 3.19.21.pdf | HL&C       3/22/2021 3:15:00 PM SEDC 3/11/2022 9:00:00 AM | HB 132 | 
| HB 132 Letter of Support - ASPTA 3.22.21.pdf | HL&C       3/22/2021 3:15:00 PM SEDC 3/11/2022 9:00:00 AM | HB 132 | 
| HB 132 Letter of Support - PNRCC 3.22.21.pdf | HL&C       3/22/2021 3:15:00 PM SEDC 3/11/2022 9:00:00 AM | HB 132 | 
| HB 132 Sponsor PowerPoint 1.19.21.pdf | SEDC       3/11/2022 9:00:00 AM | HB 132 | 
| SB 146 Summary of Changes.pdf | SEDC       3/11/2022 9:00:00 AM | SB 146 |