Legislature(2023 - 2024)BELTZ 105 (TSBldg)
02/26/2024 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB144 | |
| SB204 | |
| SB228 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 144 | TELECONFERENCED | |
| *+ | SB 204 | TELECONFERENCED | |
| *+ | SB 228 | TELECONFERENCED | |
SB 204-CERT. OF FITNESS: PLUMBERS/ELECTRICIANS
1:42:50 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 204, "An Act relating to the
issuance of certificates of fitness for plumbers and
electricians; relating to fees for certificates of fitness for
plumbers and electricians; and providing for an effective date."
1:43:19 PM
CATHY MUNOZ, Commissioner-Designee, Department of Labor and
Workforce Development (DOLWD), Juneau, Alaska, gave introductory
remarks on SB 204. She stated that this legislation changes the
trainee certificate for fitness (COF) from two years to six
years. She explained that currently, if a trainee fails to renew
their COF - which is required by law - the hours worked during
the lapsed period cannot be counted towards their journeyman
certification. This specifically impacts electricians and
plumbers. She stated that the fee for a journeyman certificate
would increase from $200 to $300 and added that this fee has not
changed since 2006. She explained that the fee increase would
partly cover the loss in revenue that would result from the
changes made to the training certificate. In addition, trainees
would no longer be required to apply - and pay for - renewals
during their training period, thus expediting the apprenticeship
procedure - and will avoid the difficult situation of having to
deny hours worked on a lapsed COF.
1:45:10 PM
SENATOR BISHOP asked if they received input from the industry.
1:45:24 PM
MS. MUNOZ replied yes.
1:45:35 PM
SCOTT DAMEROW, Chief of Mechanical Inspection, Department of
Labor and Workforce Development (DOLWD), Anchorage, Alaska, gave
a presentation on SB 204. He first offered a brief overview of
the work done by the Labor Standards and Safety Division,
Mechanical Inspection section. This includes licensing and field
enforcement for plumbing and electrical code work, performing
inspections, issuing certificates of operation, and a variety of
other related licensing services.
1:46:20 PM
MR. DAMEROW moved to slide 2 and began the presentation SB 204 -
Certificate of Fitness: Plumbers/Electricians:
[Original punctuation provided.]
Proposal
This legislation would:
• Change trainee certificate of fitness durations
from two- to six-years
• No change to the $200 fee for this license
• Increase the fees for journey-level licenses from
$200 biennially to $300 biennially
1:46:46 PM
MR. DAMEROW reviewed slide 3:
[Original punctuation provided.]
Why the Change
Trainee certificate of fitness holders (enrolled in
the federal apprenticeship program) often lapse their
license during their apprenticeship.
This results in:
• Time worked that cannot be counted towards the
journeyman license
• Administrative delays in processing licenses
• Delays in becoming a journeyman
1:47:24 PM
MR. DAMEROW advanced to slide 4, displaying a pie chart
depicting mechanical inspection active licenses. He pointed out
that this includes electrical journeymen, electrical trainees,
plumbing journeymen, and plumbing trainees.
1:47:43 PM
MR. DAMEROW advanced to slide 5, displaying a line graph
depicting new licenses issued by type and year from 2019-2023.
He explained that this does not include renewals. He noted a
slight uptrend in both plumbing and electrician licenses issued;
however, he explained that this is offset by a loss in overall
licenses as workers leave the workforce.
1:48:13 PM
MR. DAMEROW advanced to slide 6, displaying a line graph
depicting plumbing licenses issued by year from 2019-2023. He
pointed out that the graph shows a decrease in overall licenses.
1:48:23 PM
MR. DAMEROW advanced to slide 7, displaying a line graph
depicting electrical licenses issued by year from 2019-2023. He
pointed out that, as with plumbing licenses, electrical licenses
show a slight increase in trainees but a decrease in overall
licenses.
1:48:36 PM
MR. DAMEROW advanced to slide 8, displaying a line graph
depicting other licenses issued by year from 2019-2023. He noted
that these are included to give an overall picture of licensing
and trainees, though they do not directly apply to SB 204. He
noted that there are downtrends in most areas. He commented
that, while this is to be expected in asbestos abatement, it is
alarming to see in the other areas.
1:49:07 PM
MR. DAMEROW reviewed slide 9:
[Original punctuation provided.]
Trainee Requirements
Requirements for a journeyman plumber or electrician
license are similar:
• Completion of 8,000 legally obtained on-the-job
hours
• May include 1,000 classroom hours
• Hours are submitted on one or more
Experience Verification Forms
• Passing score of 70 percent or better on the exam
• Payment of $200 fee
1:49:19 PM
SENATOR BISHOP asked if the terms (e.g. electrical trainee) used
in the presentation are federal identifiers or if they are
unique to Alaska.
1:49:55 PM
MR. DAMEROW replied that the identifiers are unique to the
state. He explained that there are no federal guidelines for
this; however, the identifiers used in Alaska match the general
federal requirements for the federal apprenticeship program.
1:50:08 PM
SENATOR BISHOP commented on the distinction between an
"electrician trainee" and "electrician apprentice."
1:50:19 PM
MR. DAMEROW replied that there are no apprenticeship programs
offered. He explained that Alaska is a federally managed
apprenticeship state. The state of Alaska issues a trainee card
to complete the training work - and this works in conjunction
with the federal apprenticeship program.
1:50:33 PM
SENATOR BISHOP referred to the use of the term "journeyman" and
opined that "journeypersons" is a more apt term.
1:50:44 PM
MR. DAMEROW expressed agreement and clarified that the language
used in the presentation is what is in current statute.
1:50:56 PM
SENATOR GRAY-JACKSON asked why workers are leaving the industry.
1:51:09 PM
MR. DAMEROW replied that reasons include Covid-19; an increase
in college attendance and a resulting decrease in trade workers;
and a lack of promotion of the trades. He said that training and
work are available and part of the intention behind SB 204 is to
keep these jobs in Alaska.
1:52:14 PM
SENATOR GRAY-JACKSON asked for clarification that many of these
workers are state and municipal employees.
1:52:23 PM
MR. DAMEROW replied that those workers are included in the chart
data.
1:52:30 PM
SENATOR GRAY-JACKSON asked if a lack of concrete retirement
impacts whether individuals stay in the industry.
1:52:45 PM
MR. DAMEROW replied that he cannot speak to this.
1:53:01 PM
MR. DAMEROW continued reviewing slide 9.
[Original punctuation provided.]
Trainee Requirements
Requirements for a journeyman plumber or electrician
license are similar:
• Completion of 8,000 legally obtained on-the-job
hours
• May include 1,000 classroom hours
• Hours are submitted on one or more
Experience Verification Forms
• Passing score of 70 percent or better on the exam
• Payment of $200 fee
1:53:36 PM
MR. DAMEROW reviewed slide 10:
[Original punctuation provided.]
Trainee Barriers
Barriers that can make it difficult to obtain a
journeyman license:
• Employers do not complete the Experience
Verification Form correctly
• Employers are not available to complete the
Experience Verification Form
• Some of the hours worked were not legally
obtained
• Maintenance hours may not be counted
• Trainee certificate of fitness was lapsed
when the hours were worked
MR.DAMEROW said that SB 204 removes one barrier that trainees
experience.
1:54:05 PM
MR. DAMEROW spoke to points on slide 11:
[Original punctuation provided.]
Lapsed Trainee Card Hours
In the period from 2019-2023:
Electrical trainee license days lapsed:
• 21,142 (57.9 years)
• Average number of licensees affected per year:
51.6
• Average days lapsed for each affected licensee:
81.9
Plumbing trainee license days lapsed:
• 15,513 (42.5 years)
• Average number of licensees affected per year:
28.8
• Average days lapsed for each affected licensee:
107.7
MR. DAMEROW noted that some of the trainee hours were worked
illegally and could not be put toward their journeyman license.
1:54:49 PM
MR. DAMEROW reviewed slide 12:
[Original punctuation provided.]
Trainee Card Renewal Requirements
Renewal of a two-year trainee certificate of fitness:
• Pay $200 renewal fee
MR. DAMEROW explained that there are no training requirements or
other markers used for trainee card renewal.
1:55:06 PM
MR. DAMEROW spoke to points on slide 13:
[Original punctuation provided.]
Impact
The proposed change to duration and fees would:
• Lower the cost of apprenticeship programs for
plumbers and electricians
• Reduce administrative requirement to renew a
trainee certificate of fitness in the middle of
an apprenticeship
• Result in much less time lost due to lapsed
licenses
Results:
• Incentivize more workers to enter the trade
apprenticeship programs
• Shift the financial burden to the higher-paid
journey-level workers
• Allow apprentices to "journey out" faster by
removing lapsed periods
MR. DAMEROW explained that extending the timeframe to six years
would cover the full length of the trainee program, thus
ensuring that trainees do not experience lapsed licenses. He
noted that the changes in SB 204 would go into effect on July 1,
coinciding with the new fiscal year. Additionally, current
trainee cardholders would be able to upgrade to the six-year
card.
1:56:32 PM
MR. DAMEROW advanced to slide 14, displaying a bar graph of
current and proposed fees and the following text:
[Original punctuation provided.]
Proposed Fee Changes
Fee change results:
• $164.5 average increase in annual fees based on
2019-2023 data
• $58.75 average annual savings for trainees
• Trainee licenses will cost $200 for the entire
apprenticeship rather than the current $400
MR. DAMEROW said that lowering these fees would remove a barrier
for those entering the trainee group directly out of high
school.
1:57:30 PM
MR. DAMEROW reviewed slide 15:
[Original punctuation provided.]
Reasoning for Proposed Fee Increase
• The primary purpose of the proposed fee increase
is to offset the proposed lack of renewals for
trainee licenses
• This number was selected to compensate for the
lack of fee increases since 2006
• $200-$300 fee change matches the Consumer Price
Index from 2006-2023
• Mechanical Inspection is self-funded from program
receipts
1:58:02 PM
SENATOR BISHOP surmised that one reason fewer people are
applying for the trade programs is the legalization of cannabis.
With respect to fees, he commented that apprentices often begin
at 60 percent of the journeyperson's pay and work 70 hours per
week. He opined that the trainees can afford the $200 fee.
2:00:05 PM
CHAIR BJORKMAN opened public testimony on SB 204; finding none,
he closed public testimony.
2:00:32 PM
SENATOR MERRICK asked if the other crafts are required to have a
certificate of fitness and, if so, why aren't they included in
SB 204.
2:01:01 PM
MS. MUNOZ answered that the Department of Labor oversees the
training for electricians and plumbers.
2:01:19 PM
SENATOR MERRICK asked if other crafts also need a certificate of
fitness.
2:01:27 PM
MS. MUNOZ expressed her understanding that the other trades do
not require a certificate of fitness. She deferred to Mr.
Damerow.
MR. DAMEROW said that he would defer this to the Department of
Commerce.
2:02:20 PM
CHAIR BJORKMAN held SB 204 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB204 ver A.pdf |
SL&C 2/26/2024 1:30:00 PM SL&C 4/3/2024 1:30:00 PM |
SB 204 |
| SB204 Sponsor Statement Ver A.pdf |
SFIN 4/22/2024 1:30:00 PM SL&C 2/26/2024 1:30:00 PM SL&C 4/3/2024 1:30:00 PM |
SB 204 |
| SB204 Sectional Analysis Ver A.pdf |
SFIN 4/22/2024 1:30:00 PM SL&C 2/26/2024 1:30:00 PM SL&C 4/3/2024 1:30:00 PM |
SB 204 |
| SB204 Fiscal Note-DOLWD-MI-01.18.24.pdf |
SL&C 2/26/2024 1:30:00 PM |
SB 204 |
| SB204 Supporting Documents-2023 Mech Insp 5yr Review Chart.pdf |
SL&C 2/26/2024 1:30:00 PM |
SB 204 |
| SB204 DOLWD Presentation 02.26.24.pdf |
SL&C 2/26/2024 1:30:00 PM |
SB 204 |
| SB228 Ver A.pdf |
SL&C 2/26/2024 1:30:00 PM |
SB 228 |
| SB228 Sponsor Statement.pdf |
SFIN 4/3/2024 9:00:00 AM SL&C 2/26/2024 1:30:00 PM |
SB 228 |
| SB228 Supporting Documents-Sunset Audit.pdf |
SFIN 4/3/2024 9:00:00 AM SL&C 2/26/2024 1:30:00 PM |
SB 228 |
| SB228 Fiscal Note-DCCED-CBPL-02.23.24.pdf |
SL&C 2/26/2024 1:30:00 PM |
SB 228 |
| SB144 ver A.PDF |
SL&C 2/19/2024 1:30:00 PM SL&C 2/26/2024 1:30:00 PM |
SB 144 |
| SB144 Sponsor Statement v. A.pdf |
SL&C 2/19/2024 1:30:00 PM SL&C 2/26/2024 1:30:00 PM |
SB 144 |
| SB144 Sectional Analysis ver A.pdf |
SL&C 2/19/2024 1:30:00 PM SL&C 2/26/2024 1:30:00 PM |
SB 144 |
| SB144 Fiscal Note-VAR-EXE 02.16.24.pdf |
SL&C 2/19/2024 1:30:00 PM SL&C 2/26/2024 1:30:00 PM |
SB 144 |
| SB144 Supporting Documents- AADA Presentation-Service Times 02.19.24.pdf |
SL&C 2/19/2024 1:30:00 PM SL&C 2/26/2024 1:30:00 PM |
SB 144 |
| SB144 Public Testimony Received as of 2.15.24.pdf |
SL&C 2/19/2024 1:30:00 PM SL&C 2/26/2024 1:30:00 PM |
SB 144 |
| SB144 Supporting Documents-Alaska_NADA Auto Retailing State Data Sheet.pdf |
SL&C 2/19/2024 1:30:00 PM SL&C 2/26/2024 1:30:00 PM |
SB 144 |