Legislature(2021 - 2022)ADAMS 519

05/06/2021 09:00 AM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 132 SCHOOL APPRENTICESHIP PROGS; TAX CREDITS TELECONFERENCED
Heard & Held
+ HB 85 FINANCIAL INSTITUTIONS; LIABILITY TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 132                                                                                                            
                                                                                                                                
     "An   Act   relating   to   technical   education   and                                                                    
     apprenticeships;  relating   to  concurrent  vocational                                                                    
     education,  training, and  on-the-job trade  experience                                                                    
     programs  for  students  enrolled in  public  secondary                                                                    
     schools; relating to child labor;  and providing for an                                                                    
     effective date."                                                                                                           
                                                                                                                                
9:03:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ZACH  FIELDS, SPONSOR, relayed that  the bill                                                                    
was sponsored by the House  Labor and Commerce Committee. He                                                                    
provided  a PowerPoint  presentation titled  "Apprenticeship                                                                    
Expansion  Act"  (copy  on  file). He  began  with  slide  1                                                                    
"Apprenticeship and CTE Background":                                                                                            
                                                                                                                                
      Alaska has high-performing apprenticeship  programs                                                                    
        in traditional trades, and recent innovation with                                                                       
        apprenticeship in new industries                                                                                        
      School districts want to expand CTE  and school-to-                                                                    
      apprenticeship but need support to meet demand                                                                            
      Other states and nations  have  shown potential  to                                                                    
        expand apprenticeship & CTE                                                                                             
      Expansion of apprenticeship  and  CTE helps  people                                                                    
        pull themselves up by their bootstraps without                                                                          
        student debt                                                                                                            
      Good state policy positions us to capture and                                                                          
        capitalize on federal apprenticeship grants                                                                             
                                                                                                                                
Representative  Fields  turned   to  slide  2,  "Incentivize                                                                    
Employer Participation":                                                                                                        
                                                                                                                                
      Establishes $1,000 / apprentice employer tax credit,                                                                   
        and $1,500 / veteran apprentice                                                                                         
      Based on successful model from other states and                                                                        
        addressed what the bill would do. The bill would                                                                        
        incentivize employer participation.                                                                                     
                                                                                                                                
Representative    Fields    mentioned   the    success    of                                                                    
apprenticeship programs  in South  Carolina. He  thought the                                                                    
legislature should  be pushing  the Department  of Education                                                                    
and Early  Development to  think more  broadly about  how to                                                                    
support apprenticeships.                                                                                                        
                                                                                                                                
Representative  Fields turned  to  slide  4, "Depts.  Labor,                                                                    
Education Coordination":                                                                                                        
                                                                                                                                
      Directs DOLWD and DEED to collaborate in provision                                                                     
        of technical and financial support for:                                                                                 
          o School to apprenticeship programs                                                                                   
          o Science, Math, and Engineering CTE programs                                                                         
                                                                                                                                
                                                                                                                                
9:06:58 AM                                                                                                                    
                                                                                                                                
Representative Fields moved to  slide 5, "College Credit for                                                                    
CTE and Apprenticeship":                                                                                                        
                                                                                                                                
      Directs University to explore ways to expand dual                                                                      
        credit for CTE courses and college credit for                                                                           
        participants in apprenticeship and discussed the                                                                        
        college credit for CTE                                                                                                  
                                                                                                                                
Representative  Fields  noted  that the  bill  language  was                                                                    
written in  consultation with the University.  He noted that                                                                    
the  bill was  endorsed by  a wide  range of  organizations,                                                                    
including  the Associate  Builders  and Contractors,  Alaska                                                                    
State Hospital and Nursing  Home Association, the Matanuska-                                                                    
Susitna  School   District.  He  quickly   showed  endorsing                                                                    
organizations on slide 6.                                                                                                       
                                                                                                                                
                                                                                                                                
Representative  Fields  advanced   to  slide  7,  "Financial                                                                    
Implications":                                                                                                                  
                                                                                                                                
      Zero cost from language affecting DEED, DOLWD,                                                                         
        University system                                                                                                       
      Cost is per-apprentice tax credits of $1,000 or                                                                        
        $1,500 for veterans                                                                                                     
      Tax credits apply once, not for each year of                                                                           
        apprenticeship participation                                                                                            
                                                                                                                                
Representative  Fields   noted  that   there  would   be  an                                                                    
indeterminate fiscal  note from  the Department  of Revenue.                                                                    
He shared  that the  apprenticeships usually  lasted 1  to 6                                                                    
years.                                                                                                                          
                                                                                                                                
Representative Fields spoke to slide 8, "Summary":                                                                              
                                                                                                                                
      Incentivize employer participation                                                                                     
      Encourage cross-departmental collaboration                                                                             
      Support school districts                                                                                               
      Expand dual credit and post-secondary pathways                                                                         
                                                                                                                                
Representative   Fields   relayed    that   he   had   heard                                                                    
definitively  that   school  districts  wanted   to  support                                                                    
apprenticeship more broadly but  did not have the resources.                                                                    
He  reiterated  that there  was  an  opportunity to  capture                                                                    
federal grants  to support school apprenticeships.  He noted                                                                    
that invited  testimony would go  into greater  detail about                                                                    
the bill.                                                                                                                       
                                                                                                                                
9:09:03 AM                                                                                                                    
                                                                                                                                
MS. AMY  NIBERT, PRESIDENT AND CEO,  ASSOCIATED BUILDERS AND                                                                    
CONTRACTORS  OF  ALASKA,   ANCHORAGE  (via  teleconference),                                                                    
introduced herself and noted  that her organization operated                                                                    
one  of  the  largest   apprenticeships  in  the  state  and                                                                    
supported career  and technical  training. She  relayed that                                                                    
the  Associated Builders  and  Contractors  of Alaska  (ABC)                                                                    
supported an  increase in opportunities  for Alaskans  to be                                                                    
successful in  apprenticeship programs and believed  that HB
132 would help drive high school students to success.                                                                           
                                                                                                                                
Representative Rasmussen asked how  many new apprentices the                                                                    
ABC organization took on in one year.                                                                                           
                                                                                                                                
Ms.   Nibert  answered   that  the   organization  took   on                                                                    
apprentices  year-round  after  an application  process  and                                                                    
interview.  She   cited  that   ABC  received  200   to  250                                                                    
applicants per year  and currently they had  between 200 and                                                                    
300 individuals working in apprenticeships.                                                                                     
                                                                                                                                
Representative Rasmussen  asked what  percentage of  ABC was                                                                    
organized versus unorganized labor.                                                                                             
                                                                                                                                
Ms. Nibert  replied that  the organization  represented open                                                                    
shop contractors but had one  union contractor that utilized                                                                    
ABC's sprinkler-fitter apprenticeship program.                                                                                  
                                                                                                                                
9:12:23 AM                                                                                                                    
                                                                                                                                
MARI SELLE, ALASKA PRIMARY  CARE ASSOCIATION, ANCHORAGE (via                                                                    
teleconference),   indicated   that  she   represented   the                                                                    
workforce   development   of   the   Alaska   Primary   Care                                                                    
Association  (APCA).  She  believed  the  bill  had  to  the                                                                    
potential  to  open doors  to  youth  that wanted  to  enter                                                                    
health and human  services careers. She noted  that APCA had                                                                    
been a  multi-agency sponsor of apprenticeships  since 2017,                                                                    
working   with   various  healthcare   employers   including                                                                    
community  health centers  represented  by the  association.                                                                    
She  noted that  there  were  active healthcare  apprentices                                                                    
learning and  working all over  the state  including billers                                                                    
and  coders,  clinical  medical  assistants,  and  community                                                                    
health  workers. She  continued that  there were  registered                                                                    
apprenticeship programs for  medical secretaries, electronic                                                                    
health   record    specialists,   and   a    pharmacy   tech                                                                    
apprenticeship  was coming  soon.  She cited  that about  25                                                                    
percent  of apprentices  were age  18 to  24. The  model had                                                                    
been amazing for many employers.                                                                                                
                                                                                                                                
Ms. Selle  continued her testimony  in support of  the bill.                                                                    
She commented  that the model  worked well for  people going                                                                    
into  entry level  jobs in  healthcare  and human  services.                                                                    
Professionals were  already mentoring and training  staff in                                                                    
the  recruitment pool,  and as  a multi-agency  sponsor APCA                                                                    
could provide the  formal education and a  structured way to                                                                    
ensure  workers  had  the  skills   to  be  successful.  She                                                                    
mentioned  a  partnership  with Alaska  Pacific  University,                                                                    
through  which  apprentices   could  earn  an  undergraduate                                                                    
certificate  and  go  on  to   further  degrees  and  career                                                                    
ladders. She  shared that the programs  were especially well                                                                    
suited  for youth  on  a  work track  instead  of a  college                                                                    
track.  She expressed  that the  apprenticeships provided  a                                                                    
"well-lit  path"  to work  right  out  of high  school,  and                                                                    
students could  earn college credits simultaneously  if they                                                                    
chose to do so.                                                                                                                 
                                                                                                                                
9:16:40 AM                                                                                                                    
                                                                                                                                
Representative Rasmussen  asked for a rough  estimate of the                                                                    
number of apprenticeship applicants they accepted per year.                                                                     
                                                                                                                                
Ms.  Selle  answered  that currently  there  were  about  80                                                                    
active apprentices  on the APCA  roster. She  estimated that                                                                    
about  80  percent  were  new   apprentices  from  the  past                                                                    
calendar year.  There were about  two cohorts per  year with                                                                    
about 30 new apprentices.                                                                                                       
                                                                                                                                
9:17:45 AM                                                                                                                    
                                                                                                                                
TRISH  ZUGG,   CTE  PROGRAM  ADMINISTRATOR,   MAT-SU  SCHOOL                                                                    
DISTRICT   (via  teleconference),   read  from   a  prepared                                                                    
statement.  She  considered  that  the key  to  providing  a                                                                    
educated,  skilled workforce  in Alaska  was connecting  our                                                                    
systems of  learning and assuring  high quality  of programs                                                                    
at  every  level.  She discussed  high  quality  career  and                                                                    
technical  education, effective  workforce development  that                                                                    
included    rigorous   sequence    of   study,    recognized                                                                    
credentials,    equity   of    access,   technical    expert                                                                    
instructors,   and  contextualization   of  academics.   She                                                                    
asserted  that the  most effective  evidence was  work-based                                                                    
learning outside  the classroom. The district's  goal was to                                                                    
have   work-based    learning   for   all    students,   and                                                                    
apprenticeship was  the gold standard for  learning at work.                                                                    
She cited that  apprenticeship provided for a  means to earn                                                                    
money for  high-demand careers, a pathway  to degrees, debt-                                                                    
free  education, and  high wages.  She  discussed areas  for                                                                    
apprenticeships.  She mentioned  preparing students  for all                                                                    
levels  of transition.  She  cited  that apprenticeship  had                                                                    
proven  results,  and  cited  that  participants  earned  35                                                                    
percent more  than the average Alaska  worker. She continued                                                                    
that workers  who completed  their apprenticeship  earned an                                                                    
average  of  $78,990.  She  suggested  that  apprenticeships                                                                    
prepared  individuals  for life  and  not  only a  job.  She                                                                    
referenced the importance of soft  skills, and the long-term                                                                    
success  of  employees.  The  asserted  that  the  need  for                                                                    
training providers was important.  The district was ready to                                                                    
customize  training  opportunities  and she  emphasized  the                                                                    
importance of employer buy-in and sponsorship.                                                                                  
                                                                                                                                
Ms. Zugg  continued her  testimony in  support of  the bill.                                                                    
She thought  apprenticeships should be  an institutionalized                                                                    
norm. She  thought the  bill would  be foundational  for the                                                                    
Department  of Labor  and  Workforce  Development to  better                                                                    
guide and  support the efforts. She  discussed advantages to                                                                    
enhance  partnerships  such  as  a  more  upscale  workforce                                                                    
invested  locally, recruitment  gains, turnover  reductions,                                                                    
and  enhanced  relationships.  She asserted  that  the  bill                                                                    
would  be  good  for  the  employer  and  employee  and  the                                                                    
readiness  of  Alaska's  workforce   and  the  economy.  She                                                                    
mentioned  a COVID-related  acute  labor  shortage and  felt                                                                    
pre-apprenticeship  and   apprenticeship  could   provide  a                                                                    
pathway  for preparing  and returning  employees to  work in                                                                    
high demand occupations and adding  to the ability to a path                                                                    
towards advancement.                                                                                                            
                                                                                                                                
9:23:33 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Ortiz thought  it appeared  that the  Matanuska-                                                                    
Susitna (Mat-Su)  School District  already had  an extensive                                                                    
CTE  program.  He  asked  how the  bill  would  augment  the                                                                    
district's existing program.                                                                                                    
                                                                                                                                
Ms. Zugg answered  that the district had a  robust number of                                                                    
high-quality training  programs, but the key  linkage was to                                                                    
connect the  programs with work  outside the  classroom. She                                                                    
continued that apprenticeship was  the modality allowing for                                                                    
requirement,  eligibility,  and  contracting  fidelity.  The                                                                    
district needed a  liaison with the Department  of Labor and                                                                    
Workforce  Development  to  connect   with  systems,  and  a                                                                    
connection to  the job center.  She stressed  the importance                                                                    
of connecting to the training  programs and getting students                                                                    
out for work-based learning opportunities.                                                                                      
                                                                                                                                
9:25:35 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Ortiz  asked if  the  district  had an  existing                                                                    
program  where students  were in  work-based apprenticeships                                                                    
and earned credit for graduation.                                                                                               
                                                                                                                                
Ms. Zugg replied  that the district did  give credit towards                                                                    
graduation.  The  school  did  periodic  evaluations  during                                                                    
which teachers  met with employers. Teachers  could evaluate                                                                    
soft stills and provide  training specific subsets of skills                                                                    
that  were needed.  She mentioned  part of  the bill  with a                                                                    
spectrum  for learning.  She discussed  foundational courses                                                                    
that led  to industry certifications. She  mentioned setting                                                                    
up  a seamless  system  that would  allow  students to  gain                                                                    
credit for working to transfer into a career.                                                                                   
                                                                                                                                
Representative  Rasmussen asked  if the  Mat-Su had  any CTE                                                                    
courses  for correctional  or  public  safety officers.  She                                                                    
thought the  state had a  deficit with the number  of police                                                                    
and correctional officers needed in the state.                                                                                  
                                                                                                                                
Ms. Zugg  answered that  there was  currently not  an active                                                                    
program  for  apprenticeship  with  correctional  or  public                                                                    
safety officers. She  mentioned a program of  study for law.                                                                    
The district had  looked at the Explorer  Program, which was                                                                    
no longer  active. She  cited the need  for a  connection to                                                                    
curriculum. She  noted that  the Department  of Corrections,                                                                    
Alaska State  Troopers, and police agencies  were invited to                                                                    
the college  and career  fair in the  Mat-Su to  recruit and                                                                    
talk to students.                                                                                                               
                                                                                                                                
Co-Chair  Merrick  set  the amendment  deadline  for  Monday                                                                    
evening.                                                                                                                        
                                                                                                                                
HB  132  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:29:52 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:31:20 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
1 CSHB 132 Sponsor Statement 3.12.21.pdf HFIN 5/6/2021 9:00:00 AM
HB 132
4 CSHB 132 ver O Sectional Analysis 4.28.2021.pdf HFIN 5/6/2021 9:00:00 AM
HB 132
3 CSHB 132 Summary of Changes ver W to ver O 4.28.2021.pdf HFIN 5/6/2021 9:00:00 AM
HB 132
10 HB 132 Letters of Support as of 4.7.21.pdf HFIN 5/6/2021 9:00:00 AM
HB 132
HB 132 Public Testimony by 050521.pdf HFIN 5/6/2021 9:00:00 AM
HB 132
HB 85 Letters of Support 04.21.2021.pdf HFIN 5/6/2021 9:00:00 AM
HB 85
HB 85 Sectional Analysis ver. G 04.22.2021.pdf HFIN 5/6/2021 9:00:00 AM
HB 85
HB 85 Sponsor Statement 04.22.2021.pdf HFIN 5/6/2021 9:00:00 AM
HB 85
HB 85 Summary of Changes version B to version G 04.22.2021.pdf HFIN 5/6/2021 9:00:00 AM
HB 85
HB 132 Sponsor PowerPoint HFIN 050621.pptx HFIN 5/6/2021 9:00:00 AM
HB 132