Legislature(2021 - 2022)ADAMS 519

05/07/2021 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 70 APPROP: CAP; REAPPROP; SUPP; AMEND TELECONFERENCED
<Bill Hearing Canceled>
+ HB 197 APPROP: ERA FOR PAYMENT OF PFD TELECONFERENCED
<Bill Hearing Canceled>
<Pending Referral>
+ HB 202 PERMANENT FUND DIVIDEND; ROYALTIES TELECONFERENCED
<Bill Hearing Canceled>
<Pending Referral>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 110 AGE FOR NICOTINE/E-CIG; TAX E-CIG. TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 132 SCHOOL APPRENTICESHIP PROGS; TAX CREDITS TELECONFERENCED
Heard & Held
-- Public Testimony --
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."                                                                                                           
                                                                                                                                
1:36:27 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick indicated that the  bill was first heard in                                                                    
committee on May 6, 2021.                                                                                                       
                                                                                                                                
1:36:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ZACK FIELDS,  CO-CHAIR,  LABOR AND  COMMERCE                                                                    
COMMITTEE,  introduced  himself  and declined  to  make  any                                                                    
additional opening comments regarding the legislation.                                                                          
                                                                                                                                
1:36:44 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick OPENED public testimony.                                                                                       
                                                                                                                                
1:36:52 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:39:57 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Merrick noted there were no testifiers.                                                                                
                                                                                                                                
Co-Chair Merrick CLOSED public testimony.                                                                                       
                                                                                                                                
Co-Chair  Merrick   asked  Ms.  Reynold  to   review  fiscal                                                                    
note #5.                                                                                                                        
                                                                                                                                
1:40:44 PM                                                                                                                    
                                                                                                                                
DEBORAH  RIDDLE,  DIVISION  OPERATION MANAGER,  DIVISION  OF                                                                    
INNOVATION  AND EDUCATION  EXCELLENCE,  DEPARTMENT OF  LABOR                                                                    
AND  WORKFORCE DEVELOPMENT  (via  teleconference), spoke  to                                                                    
published  zero  fiscal   note  5  [FN  5   (EED)]  for  the                                                                    
Department of  Education and  Early Development  (DEED). She                                                                    
related  that DEED  currently worked  in collaboration  with                                                                    
school   districts  to   increase  career,   technical,  and                                                                    
culturally relevant education to  meet student and workforce                                                                    
needs. The bill was not expected to have a fiscal impact                                                                        
                                                                                                                                
1:41:30 PM                                                                                                                    
                                                                                                                                
Representative Carpenter stated  that the sectional analysis                                                                    
in section  2  added duties   for DEED, to  collaborate with                                                                    
Department  of Labor  and Workforce  Development (DLWD).  He                                                                    
suggested  that adding  duties  cost  something and  implied                                                                    
that extra work was required  to fulfill the mandate. He did                                                                    
not understand how  the extra duties did not  incur a fiscal                                                                    
impact to DEED.                                                                                                                 
                                                                                                                                
1:42:36 PM                                                                                                                    
                                                                                                                                
Representative Fields  replied that DEED  currently provided                                                                    
financial  support  to  the  school  districts  through  the                                                                    
Perkins grants.  The intent of  the language was  to provide                                                                    
supporting  statutory   language  to  allow  DEED   and  the                                                                    
Department  of Labor  and  Workforce  Development (DLWD)  to                                                                    
collaborate on  ways to use  the forthcoming  federal grants                                                                    
to  support  school  apprenticeship programs.  He  confirmed                                                                    
that  the relationships  were already  established, and  the                                                                    
language ensured  that the agencies could  capitalize on the                                                                    
grant opportunities.                                                                                                            
                                                                                                                                
Ms.  Riddle relayed  that DEED  had  a state  plan with  the                                                                    
United States Department  of Education to work  with DLWD to                                                                    
help  facilitate work  based learning  which fell  under the                                                                    
apprenticeship bill.                                                                                                            
                                                                                                                                
1:43:50 PM                                                                                                                    
                                                                                                                                
Representative  Carpenter  thought  the phrases  like   work                                                                    
with   or  additional  duties   was   incredibly vague.   He                                                                    
asked what the  additional duties were being  added to DEED.                                                                    
Ms.  Riddle  reported that  further  work  with the  sponsor                                                                    
would better  define the details.  She reiterated  that DEED                                                                    
would partner  with DOL  to facilitate  the grants  and were                                                                    
currently  working   with  them  to  match   districts  with                                                                    
apprenticeship activities.                                                                                                      
                                                                                                                                
Representative  Carpenter wanted  the specific  list of  the                                                                    
added duties  and better   understanding  of what  the added                                                                    
duties  were before  he  approved of  a  program that  could                                                                    
potentially need future funding.                                                                                                
                                                                                                                                
Representative Fields replied that  the commissioner of DEED                                                                    
had done  a good  job of  figuring out  how to  support work                                                                    
based  learning  and   collaborate  across  departments.  He                                                                    
characterized   the  fiscal   note   request  as   providing                                                                    
statutory  support  for  something  the  department  already                                                                    
carried out. He thought the  outcomes of work based programs                                                                    
made  the   statutory  support  important  but   because  of                                                                    
departmental leadership the engagement already existed.                                                                         
                                                                                                                                
1:46:56 PM                                                                                                                    
                                                                                                                                
NICOLE REYNOLDS,  DEPUTY DIRECTOR, TAX  DIVISION, DEPARTMENT                                                                    
OF  REVENUE (via  teleconference), indicated  that published                                                                    
fiscal note  3 [FN 3  (REV)] from the Department  of Revenue                                                                    
(DOR) was  indeterminate because  the revenue impact  of the                                                                    
bill could  not be determined because  the department lacked                                                                    
sufficient information to estimate  the number of registered                                                                    
apprentices a taxpayer  may hire or the  number of corporate                                                                    
income tax  taxpayers who  may hire  registered apprentices.                                                                    
She offered  that the additional  cost to the  department to                                                                    
administer the credit  was minimal and could  be absorbed by                                                                    
the  department. All  the required  tasks like  updating tax                                                                    
forms  on  the Tax  Revenue  Management  System (TRMS),  and                                                                    
updating  Revenue  Online     the  public  taxpayer  portal,                                                                    
could  be  administered  with  the  resources  currently  in                                                                    
place.                                                                                                                          
                                                                                                                                
JOY  HARTLIEB,  DIVISION  OF   LABOR  STANDARDS  AND  PUBLIC                                                                    
SAFETY, DEPARTMENT  OF LABOR AND WORKFORCE  DEVELOPMENT (via                                                                    
teleconference),  reported that  the  published zero  fiscal                                                                    
note [FN 2  ((LWF)] showed there were zero  costs related to                                                                    
the bill.                                                                                                                       
                                                                                                                                
1:49:55 PM                                                                                                                    
                                                                                                                                
GREG  CASHEN,   ASSISTANT  DIRECTOR,   EMPLOYMENT  SECURITY,                                                                    
DEPARTMENT   OF  LABOR   AND   WORKFORCE  DEVELOPMENT   (via                                                                    
teleconference),  commented that  the published  fiscal note                                                                    
was zero.  The department collaborated with  DEED regularly.                                                                    
He added that DLWD and  the University of Alaska created the                                                                    
CTE plan  in 2010,  updated it in  2018, included  school to                                                                    
apprenticeship pathways from  career and technical education                                                                    
to  post-secondary education  and registered  apprenticeship                                                                    
programs that DLWD administered.                                                                                                
                                                                                                                                
Representative Carpenter  cited page 4,  line 2 of  the bill                                                                    
and  read   using  funds available  for  that  purpose    He                                                                    
wondered  what funds  the bill  referred to.  Representative                                                                    
Fields  responded that  there were  ongoing federal  funding                                                                    
streams through  DLWD. Some  of the  streams were  grants to                                                                    
organizations   such   as    the   American   Apprenticeship                                                                    
Initiative.  He  noted  that   other  funding  streams  like                                                                    
Workforce  Innovation and  Opportunity  Act  (WIOA) went  to                                                                    
individuals  to  support  training [through  local  programs                                                                    
providing youth  services] in partnership with  American Job                                                                    
Centers. He expected more funding  would be available in the                                                                    
future  and  reiterated  that  the  primary  funding  stream                                                                    
currently was the Perkins grants.                                                                                               
                                                                                                                                
1:52:32 PM                                                                                                                    
                                                                                                                                
Representative Carpenter  asked if  any of the  funding went                                                                    
directly   to   school  districts.   Representative   Fields                                                                    
answered  that the  Perkins funds  went  directly to  school                                                                    
districts.  Most of  the DLWD  funds  historically, had  not                                                                    
gone  directly   to  the   school  districts   with  limited                                                                    
exceptions.                                                                                                                     
                                                                                                                                
1:53:16 PM                                                                                                                    
                                                                                                                                
Representative Carpenter  felt that  he had to  protest what                                                                    
he was  hearing. He voiced  that tasks like  develop, create                                                                    
and, expand  cost money and  he found the zero  fiscal notes                                                                    
 unbelievable.   Representative  Fields provided  background                                                                    
history on  DLWD involvement in  supporting apprenticeships.                                                                    
He shared that  the Commissioner at the  time [Click Bishop,                                                                    
former commissioner,  DLWD] trained department  employees to                                                                    
become  apprenticeship specialists.  He elaborated  that the                                                                    
specialists worked  closely with  the federal  Department of                                                                    
Labor that regulated and  oversaw apprenticeships. The state                                                                    
specialists  started apprenticeship  programs and  supported                                                                    
employers.   The   infrastructure  continued   across   many                                                                    
administrations.     When    additional     federal    grant                                                                    
opportunities became available,  the department utilized the                                                                    
federal apprenticeship  grant money  and distributed  it. He                                                                    
shared  that he  had worked  for DLWD  and administered  the                                                                    
grants at  a time  when DLWD experienced  significant budget                                                                    
reductions.  He  deduced  that   by  looking  back,  it  was                                                                    
possible  to see  that the  department could  expand support                                                                    
for  apprenticeships  when  federal funds  became  available                                                                    
even with  reduced Undesignated  General Funds  (UGF). There                                                                    
had  been proposals  put forward  by  the administration  to                                                                    
further  expand  federal  grant dollars  and  the  bill  was                                                                    
targeting the opportunity for  when additional grant dollars                                                                    
were received.                                                                                                                  
                                                                                                                                
1:55:27 PM                                                                                                                    
                                                                                                                                
Representative  Carpenter  asked  if  the  school  districts                                                                    
could  absorb the  burden of  creating additional  programs.                                                                    
Representative  Fields  replied  that   he  asked  the  same                                                                    
question to school districts when  crafting the bill. He had                                                                    
discussions   with  the   career  and   technical  education                                                                    
directors at  several school districts who  wanted to expand                                                                    
school apprenticeship  programs. He had inquired  about what                                                                    
could be  done to  support the  districts to  strengthen the                                                                    
programs   thus,  creating   more   opportunities  for   the                                                                    
students. He relayed that the  answer was they needed school                                                                    
apprenticeship  coordinators who  worked under  the schools                                                                     
CTE  directors.   The  coordinators  would   strengthen  the                                                                    
programs   and   create    more   apprenticeship   placement                                                                    
opportunities for  students. He referred to  prior testimony                                                                    
from  Trish Zugg,  Information Technology  Instructor/Grants                                                                    
Administration,  Matanuska-Susitna Borough  School District,                                                                    
who hoped the  state would secure more of  the federal grant                                                                    
funding and fund  the positions in the  school districts. He                                                                    
ascertained that  the school districts needed  more capacity                                                                    
and he hoped that through  the collaboration with DEED, some                                                                    
of the funds could be used for the positions.                                                                                   
                                                                                                                                
1:57:11 PM                                                                                                                    
                                                                                                                                
Representative Thompson  referred to page 5  lines 6 through                                                                    
11 and read the following:                                                                                                      
                                                                                                                                
     (f) In this section,  "veteran" means an individual who                                                                    
     was honorably discharged from service  in the (1) armed                                                                    
     forces of  the United States, including  a reserve unit                                                                    
     of  the  armed forces  of  the  United States;  or  (2)                                                                    
     Alaska  Territorial  Guard,  the Alaska  Army  National                                                                    
     Guard,  the Alaska  Air National  Guard, or  the Alaska                                                                    
     Naval Militia.                                                                                                             
                                                                                                                                
Representative  Thompson  asked   whether  the  Coast  Guard                                                                    
should  be  included  on  the  list.  Representative  Fields                                                                    
answered in the affirmative.                                                                                                    
                                                                                                                                
Co-Chair Merrick  noted amendments  for HB  132 were  due by                                                                    
6:00 p.m. on Monday, May 10, 2021.                                                                                              
                                                                                                                                
1:58:17 PM                                                                                                                    
                                                                                                                                
Representative Rasmussen  believed that high  school seniors                                                                    
should have  more options upon  completing high  school. She                                                                    
related  that a  college  degree was  not  required for  her                                                                    
career  as a  residential appraiser.  She did  not have  the                                                                    
kind of college  debt that others had making  the same level                                                                    
of  income.  She thought  that  the  districts were  already                                                                    
anticipating   the  shift   toward   career  or   vocational                                                                    
programs. She  did not view the  bill as a means  of forcing                                                                    
an  unfunded  mandate.  She thought  that  there  was  broad                                                                    
consensus  in   the  legislature   to  support   career  and                                                                    
vocational opportunities. The state had  a higher need for a                                                                    
skilled  labor workforce.  She suggested  that  even if  the                                                                    
bill did have  a cost to it, the state  would benefit in the                                                                    
long term.  She supported  the legislation and  relayed that                                                                    
school  districts   embraced  the  concept  of   career  and                                                                    
vocational education.                                                                                                           
Representative   Carpenter  took   offense   to  the   prior                                                                    
comments.  He   believed  that   Representative  Rasmussens                                                                     
comments were addressed to him, and he felt lectured to.                                                                        
                                                                                                                                
2:01:04 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:01:51 PM                                                                                                                    
RECONVENNED                                                                                                                     
                                                                                                                                
Representative Johnson  referred to page  4, lines 22  to 24                                                                    
which she read the following:                                                                                                   
                                                                                                                                
     To qualify as a  registered apprentice for the purposes                                                                    
     of  the  credit  under  this  section,  a  person  must                                                                    
     participate  in  a  registered  apprenticeship  program                                                                    
     recognized  by the  Department of  Labor and  Workforce                                                                    
     Development.                                                                                                               
                                                                                                                                
Representative Johnson  asked if there was  a list available                                                                    
of  registered   participants  in  the   committee  members                                                                     
packets. Representative Fields answered  in the negative. He                                                                    
indicated  that   there  were  several   hundred  registered                                                                    
apprenticeship programs  in the state sponsored  by hundreds                                                                    
of employers.  He offered to  follow up with the  full list.                                                                    
Representative Johnson thanked the sponsor.                                                                                     
                                                                                                                                
HB  132  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
2:03:13 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:09:05 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 110 Public Testimony by 051021.pdf HFIN 5/7/2021 1:30:00 PM
HB 110
HB 132 Amendments 1-3 051121.pdf HFIN 5/7/2021 1:30:00 PM
HB 132