Legislature(2019 - 2020)ADAMS 519
03/18/2020 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB235 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 155 | TELECONFERENCED | |
| + | HB 201 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 235 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
March 18, 2020
1:57 p.m.
1:57:01 PM
CALL TO ORDER
Co-Chair Johnston called the House Finance Committee
meeting to order at 1:57 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Jennifer Johnston, Co-Chair
Representative Dan Ortiz, Vice-Chair
Representative Andy Josephson
Representative Gary Knopp
Representative Bart LeBon
Representative Adam Wool
MEMBERS ABSENT
Representative Ben Carpenter
Representative Kelly Merrick
Representative Colleen Sullivan-Leonard
Representative Cathy Tilton
ALSO PRESENT
Erin Shine, Staff, Representative Jennifer Johnston
PRESENT VIA TELECONFERENCE
Miles Baker, Associate Vice President, Government
Relations, University of Alaska.
SUMMARY
HB 235 AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS
CSHB 235(FIN) was REPORTED out of committee with
three "do pass" recommendations, three "no
recommendation" recommendations, one "amend"
recommendation and with one new fiscal impact
note by Department of Education and Early
Development, four new fiscal impact notes by the
Department of Labor and Workforce Development,
and one new fiscal impact note by the University
of Alaska.
Co-Chair Johnston reviewed the agenda for the meeting.
HOUSE BILL NO. 235
"An Act relating to allocations of funding for the
Alaska Workforce Investment Board; and providing for
an effective date."
1:57:41 PM
Co-Chair Foster MOVED to ADOPT proposed committee
substitute for HB 235, Work Draft 31-LS1480\K (Neuman\Wayne
3/18/20)(copy on file).
Co-Chair Johnston OBJECTED for discussion.
ERIN SHINE, STAFF, REPRESENTATIVE JENNIFER JOHNSTON,
introduced herself.
1:58:09 PM
AT EASE
1:58:25 PM
RECONVENED
Ms. Shine reviewed the changes to the CS. She relayed the
first change, which removed language related to employee
contributions to the Alaska Technical and Vocational
Education program (TVEP). She continued to the next change;
the numbers in the previous Section 1 had been changed to
reflect what was already in statute, this Section 1 was new
as the previous was moot. The next change was the insertion
of legislative intent in the new Section 1, line 4 through
11. She noted that Section 2 changed the extension date to
a 3-year extension rather than a 5-year extension. She
pointed out Page 2, line 4 thorough 13, which reverted the
percentages back to what was found in statute; there had
been an insertion of the Kodiak Marine Science Center,
which was removed and addressed in the intent language in
Section 1.
2:00:06 PM
Representative Josephson reported that currently the
University of Alaska Fairbanks spent its own resources on
TVEP.
Ms. Shine deferred to the university. She understood that
in previous years the science center had received funding
though TVEP.
2:00:43 PM
Representative Josephson restated his question.
2:00:58 PM
MILES BAKER, ASSOCIATE VICE PRESIDENT, GOVERNMENT
RELATIONS, UNIVERSITY OF ALASKA (via teleconference),
reported that the Kodiak Seafood and Marine Science Center
(KSMSC) was part of the College of Fisheries and Ocean
Science at UAF, the budget of which had been over $1
million annually. He said that if there was a request from
the KSMSC for TVEP funding, it went through a competitive
process and was typically awarded. He said that the average
award was for $40 thousand to $50 thousand of strictly TVEP
funds.
2:02:32 PM
Representative Josephson was wondering about the
flexibility the university would retain if it reduced the
portion of UGF it provided to KSMSC.
Mr. Baker responded that the funding would be part of the
budget that went through the College of Fisheries and Ocean
Science. He explained that the concern with the intent
language was the reference to AS 16.52.020 and AS
16.52.030; these were not TVEP statutes but were statutes
that created and governed KSMSC, which under its statutory
authority was involved in more than the programs envisioned
through TVEP.
2:04:01 PM
Representative Wool asked whether existing TVEP funding for
ASMSC fell under AS 16.52.020 and AS 16.52.030.
Mr. Baker read the intent language such that the University
would allocate the amount needed to fund and maintain the
programs consistent with the KSMSC and TEVP statutes. He
noted that AS 16.52.020, which established the KSMSC, were
broader than the programming mandate of TVEP. He speculated
that some KSMSC programs could be crafted into TVEP
eligible programs.
Representative Wool thought that if the statute was broad,
perhaps a smaller program encompassed by the statute would
be eligible.
Mr. Baker directed attention to Page 1, line 8 of the bill:
?. allocate the amount necessary to sustainably
maintain programs consistent with AS 16.52.020 and AS
23.15.820 23.15.850 through the Kodiak Seafood
Marine Science Center.
Mr. Baker thought that it could be read that the University
was maintaining and sustaining programs consistent with the
mission of KSMSC and the TVEP mission.
2:08:40 PM
AT EASE
2:08:54 PM
RECONVENED
Co-Chair Johnston WITHDREW her OBJECTION.
There being NO further OBJECTION, Work Draft 31-LS1480\K
was ADOPTED.
Vice-Chair Ortiz MOVED to ADOPT Conceptual Amendment 1:
Page 1, line 7
Insert a comma and "from the funds received under
Section 2 of this act" after the word "allocate."
Co-Chair Johnston OBJECTED for discussion.
Vice-Chair Ortiz explained the amendment tied the intent
language to the University's TVEP allocation. He shared
that the current language in Section 1 did not specify
funding source.
Co-Chair Johnston WITHDREW her OBJECTION.
Co-Chair Foster OBJECTED for discussion.
Co-Chair Foster requested clarity on what the amendment
would do regarding funding from the TVEP allocation.
Mr. Baker responded that from reading the amendment, he did
not believe that anything would change in the budgeting
process for KSMSC but would encourage a focus on the
increased use of available TVEP money. He supported the
amendment, as it offered clarity about TVEP money. He
shared that in 2019, the total budget was slightly less
than $1.7 million in combined UGF, TVEP funds, and
unrestricted fund revenue grants brought in by faculty and
researchers at KSMSC.
Co-Chair Foster WITHDREW his OBJECTION.
There being NO further OBJECTION, Conceptual Amendment 1
was ADOPTED.
2:14:08 PM
Co-Chair Foster MOVED to report CSHB 235(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes.
Representative Knopp OBJECTED.
Representative Knopp wanted to offer a conceptual
amendment.
2:14:54 PM
AT EASE
2:22:22 PM
RECONVENED
Representative Knopp WITHDREW his OBJECTION.
There being NO further OBJECTION, it was so ordered.
CSHB 235(FIN) was REPORTED out of committee with three "do
pass" recommendations, three "no recommendation"
recommendations, one "amend" recommendation and with one
new fiscal impact note by Department of Education and Early
Development, four new fiscal impact notes by the Department
of Labor and Workforce Development, and one new fiscal
impact note by the University of Alaska.
Co-Chair Johnston discussed housekeeping.
2:23:28 PM
Representative Wool wanted to address a concept that came
up during public testimony. He clarified that TVEP funding
was not based on payroll or earnings. He thought it was
important to consider reviewing performances of the
entities funded through TVEP. He reiterated that funding
for TVEP was not based on payroll receipts.
2:24:40 PM
Representative Knopp asked Representative Wool to comment
further, as he understood that all funding for the TVEP
program was based on employee contributions.
Representative Wool agreed that the funding came from the
unemployment fund. He clarified that what he meant was that
the way the TVEP program was distributed was not based on
the industrys contribution to unemployment. He added that
the TEVP programs offered were determined based on the need
for certain workforce development.
Representative Knopp asserted that if a particular industry
was paying an exorbitant amount in wages and unemployment
insurance into the fund there should not be a lack of
funding for training in that industry.
ADJOURNMENT
2:26:28 PM
The meeting was adjourned at 2:26 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 235 ver. K 3.18.20.pdf |
HFIN 3/18/2020 1:30:00 PM |
HB 235 |
| HB 235 UA TVEP FY15-FY19 Funding Allocations 031820.pdf |
HFIN 3/18/2020 1:30:00 PM |
HB 235 |