Legislature(2021 - 2022)ADAMS 519

03/18/2022 01:30 PM House FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 281 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Scheduled but Not Heard
+= HB 282 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Scheduled but Not Heard
+= HB 149 CHILD CARE PROVIDER COLLECTIVE BARGAINING TELECONFERENCED
Moved CSHB 149(FIN) Out of Committee
+ HB 289 AK MARIJUANA INDUSTRY TASK FORCE TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 9 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
 HOUSE BILL NO. 149                                                                                                           
                                                                                                                                
      "An Act relating to allowing certain child day care                                                                       
      providers to organize for the purpose of collective                                                                       
      bargaining."                                                                                                              
                                                                                                                                
 3:16:28 PM                                                                                                                   
                                                                                                                                
 Co-Chair Merrick                                                                                                               
                                                                                                                                
 Representative  Rasmussen  MOVED  to ADOPT  Amendment  1, 32-                                                                  
 LS0474\A.7 (Klein, 3/16/22) (copy on file):                                                                                    
                                                                                                                                
      Page 6, line 27:                                                                                                          
      Delete"."                                                                                                                 
      Insert";"                                                                                                                 
                                                                                                                                
      Page 6, following line 27:                                                                                                
      Insert a new paragraph to read:                                                                                           
      "(6) requires an employee or child day care provider                                                                      
      to become a member of an organization that represents                                                                     
      childcare providers."                                                                                                     
                                                                                                                                
 Co-Chair Merrick OBJECTED for discussion.                                                                                      
                                                                                                                                
 Representative   Rasmussen   explained  the   amendment.  She                                                                  
 communicated  that the  amendment clarified  that an employee                                                                  
 or childcare  provider did not have  to become a member of an                                                                  
 organization   that  represents   childcare   providers.  The                                                                  
 amendment  offered   a  choice  and  she  asked  for  members                                                                  
 support.                                                                                                                       
                                                                                                                                
 Representative   Josephson    asked   whether   the   sponsor                                                                  
 supported the amendment.                                                                                                       
                                                                                                                                
   REPRESENTATIVE ZACH FIELDS, SPONSOR, had worked on the                                                                       
 amendment  with Representative  Rasmussen  and  supported the                                                                  
 amendment.  He reminded the committee  that the bill proposed                                                                  
 a  sectorial  bargaining   model,  where  the  entire  sector                                                                  
 negotiated  with the  state.  He did  not believe  that union                                                                  
 membership  should be mandated under  the sectorial model and                                                                  
 should be  an opt-in model. He felt  that the sectorial model                                                                  
 did  not need any  degree of  coercion. The  language ensured                                                                  
 the  providers  that it  was  a choice  to  affiliate  with a                                                                  
 union should the sector decide to form one.                                                                                    
 3:18:35 PM                                                                                                                   
                                                                                                                                
 Representative  Josephson  believed  that  members  would pay                                                                  
 dues  and  if negotiated  benefits  were  passed  on  to non-                                                                  
 members  then non-union  employees  would enjoy  the benefits                                                                  
 without  any   costs.  He  asked   whether  he  was  correct.                                                                  
 Representative   Fields  responded,   "not  necessarily."  He                                                                  
 explained  that  if  sectorial  bargaining  was  adopted  the                                                                  
 sector  would seek out a  union it wanted  to affiliate with.                                                                  
 He  exemplified  the  sector  joining  the Service  Employees                                                                  
 International  Union (SEIU).  Some small providers  might opt                                                                  
 out of  being a part of  the union because  they did not need                                                                  
 the benefits  a union  provided. He restated  that there were                                                                  
 many  benefits of  sectoral  bargaining  because it  gave the                                                                  
 sector  a  voice  without  coercing  individual  providers  or                                                                 
 employees   to  join   the  sectoral   bargaining  structure.                                                                  
 Representative   Josephson   indicated   that  he   was  well                                                                  
 informed  about labor unions.  He thought that  joining was  a                                                                 
 "critical  issue" regarding unfair  labor practices (ULP) and                                                                  
 whether an employee would receive attorney privileges.                                                                         
                                                                                                                                
 3:20:03 PM                                                                                                                   
                                                                                                                                
 Representative  Josephson  wanted  to make  sure  the sponsor                                                                  
 was  comfortable  with the  amendment.  Representative Fields                                                                  
 had  asked Representative  Rasmussen to offer  the amendment.                                                                  
 He  reminded the  committee  that most  parts of  the state's                                                                  
 economy  were  involved  in  "enterprise  based   bargaining"                                                                  
 which  constituted  an individual  company  and a  union that                                                                  
 engaged   in  negotiations.   He   shared  that   within  the                                                                  
 enterprise  based  bargaining model  he  did not  support the                                                                  
 right  to work  model because  it  enabled "free  riders." He                                                                  
 furthered  that in a  sectoral bargaining process  he did not                                                                  
 think   the  same  problems   associated   with  free  riders                                                                  
 existed.  He remarked that it  was a new  idea for the sector                                                                  
 and  the sector was  diverse and  he did not  believe that  it                                                                 
 was appropriate  to require  individuals to be  a member of  a                                                                 
 union.  He believed that  the employees would  choose to join                                                                  
 the union  when the benefits were  worth the costs for things                                                                  
 like healthcare, training, and legal fees.                                                                                     
                                                                                                                                
 Co-Chair   Merrick   asked   for   clarification   of   SEIU.                                                                  
 Representative  Fields  responded that  it stood  for Service                                                                  
 Employees   International   Union  that   included  childcare                                                                  
 providers  and used  the sectoral  bargaining model  in other                                                                  
 states.                                                                                                                        
 Representative  Wool inquired whether  the amendment would be                                                                  
 in the  union's laws  as well. Representative  Fields replied                                                                  
 that  because domestic  work was  excluded from  the National                                                                  
 Labor Relations  Act, it  was entirely up  to a state whether                                                                  
 to  require union  membership  within a  sectorial bargaining                                                                  
 framework.  He emphasized  the importance  of allowing people                                                                  
 to opt in with a new bargaining option in the state.                                                                           
                                                                                                                                
 3:22:51 PM                                                                                                                   
                                                                                                                                
   Representative Rasmussen wrapped up the amendment. She                                                                       
 wanted  to ensure that  providers felt  comfortable that they                                                                  
 could  opt  out of  the  sectorial  bargaining  agreement and                                                                  
 could still receive state childcare assistance.                                                                                
                                                                                                                                
 Co-Chair Merrick withdrew her objection.                                                                                       
                                                                                                                                
 There being NO OBJECTION, it was so ordered. Amendment 1                                                                       
 was adopted.                                                                                                                   
                                                                                                                                
 3:23:34 PM                                                                                                                   
                                                                                                                                
  Representative Josephson MOVED to ADOPT Amendment 2, 32-                                                                      
 LS0474\A.6 (Klein, 3/16/22) (copy on file):                                                                                    
                                                                                                                                
      Page 1, line 2, following "bargaining":                                                                                   
      Insert"; and establishing the child day care provider                                                                     
      fund"                                                                                                                     
                                                                                                                                
      Page 8, following line 28:                                                                                                
      Insert a new bill section to read:                                                                                        
      "* Sec. 19. AS 37.14 is amended by adding a new                                                                           
      section to read:                                                                                                          
      Article 11. Child Day Care Provider Fund.                                                                                 
      Sec.   37.14.850.   Child   day   care   provider   fund                                                                  
      established.  (a) The  child day  care provider  fund is                                                                  
      established  as a  separate fund  in the  state treasury                                                                  
      for  the purpose of  implementing the  monetary terms of                                                                  
      an  agreement  applicable  to child  day  care providers                                                                  
      entered  into under AS  23.40.070 -  23.40.260. Money in                                                                  
      the fund does not lapse. The fund consists of                                                                             
           (I) money appropriated to the fund;                                                                                  
           (2) income earned on investment of fund assets;                                                                      
            and                                                                                                                 
           (3) donations to the fund.                                                                                           
      (b)  The  legislature  may  annually  appropriate  money                                                                  
      from  the fund  to implement  the  monetary terms  of an                                                                  
      agreement   applicable  to  child   day  care  providers                                                                  
      entered into under AS 23.40.070 - 23.40.260.                                                                              
      (c) Nothing in this section creates a dedicated fund."                                                                    
                                                                                                                                
      Renumber the following bill sections accordingly.                                                                         
                                                                                                                                
 Co-Chair Merrick OBJECTED for discussion.                                                                                      
                                                                                                                                
 Representative   Josephson   explained  that   the  amendment                                                                  
 established   a  trust   fund  to  implement   the  sectorial                                                                  
 bargaining  agreement. He invited  the bill  sponsor to speak                                                                  
 to the amendment.                                                                                                              
                                                                                                                                
 Representative   Fields   spoke   to  the   amendment.     He                                                                  
 articulated  that since the bill was  introduced in the prior                                                                  
 session,  the  state  had  experienced  a financial  windfall                                                                  
 that   could  allow  for   a  structure   that  could  inject                                                                  
 "meaningful  public  investment into  the  childcare sector."                                                                  
 He  relayed  hearing  testimony  that  the  childcare  sector                                                                  
 needed  more power  in negotiating  with  the state  and that                                                                  
 the  state was  never going  to  have an  adequately supplied                                                                  
 childcare  workforce  at  affordable  prices  without    more                                                                  
 public  investment.  The childcare  trust  fund was  based on                                                                  
 models   used   in   other   states,   that   after   initial                                                                  
 capitalization,  was  managed  under an  endowment  model. He                                                                  
 believed  that  when the  state  experiences  a "significant"                                                                  
 revenue  windfall, it  should  consider setting  some revenue                                                                  
 aside  to pay out long-term  benefits. He  explained that the                                                                  
 legislature  would appropriate a portion  of the savings from                                                                  
 the  childcare trust  fund  and if  paid out  at a  5 percent                                                                  
 rate  it could be  the largest  investment in  childcare that                                                                  
 the state  ever made.  He cited significant  public testimony                                                                  
 regarding   the  issue  in  the   House  Labor  and  Commerce                                                                  
 Committee.  He  offered  that the  United  States  Chamber  of                                                                 
 Commerce   Foundation    addressed   the   "dire   need   for                                                                  
 intervention   in  the  childcare   sector."  He  heard  from                                                                  
 multiple organizations  in support of  a childcare trust fund                                                                  
 and  from parents who  had to drop  out of  the workforce due                                                                  
 to the  unaffordability of childcare.  He emphasized that the                                                                  
 "crisis"  in childcare needed  to be addressed  and the trust                                                                  
 fund was beneficial to solving the problems.                                                                                   
                                                                                                                                
 3:26:41 PM                                                                                                                   
                                                                                                                                
 Co-Chair Merrick withdrew her objection                                                                                        
 There being NO OBJECTION, it was so ordered. Amendment 2                                                                       
 was adopted.                                                                                                                   
                                                                                                                                
 3:26:55 PM                                                                                                                   
                                                                                                                                
 Representative Rasmussen spoke in support of              the                                                                  
 legislation. She believed that the bill had a lot of merit                                                                     
 and could help with the childcare shortage in the state.                                                                       
                                                                                                                                
 3:27:50 PM                                                                                                                   
                                                                                                                                
 Co-Chair Foster MOVED to REPORT CSHB 149(FIN) out of                                                                           
committee    with   individual   recommendations    and   the                                                                   
 accompanying fiscal note.                                                                                                      
                                                                                                                                
 Representative Johnson objected and did not speak to her                                                                       
 objection.                                                                                                                     
                                                                                                                                
 A roll call vote was taken on the motion.                                                                                      
                                                                                                                                
 IN FAVOR: Edgmon, Ortiz, Josephson, Wool, Foster, Merrick                                                                      
 OPPOSED: Thompson, Johnson                                                                                                     
                                                                                                                                
 The MOTION PASSED (6/2).                                                                                                       
                                                                                                                                
 CSHB 149(FIN)  was REPORTED  out of committee  with three "do                                                                  
 pass"   recommendations    and   five   "no   recommendation"                                                                  
 recommendations  and  with one  new fiscal  impact  note from                                                                  
 the Department of Labor and Workforce Development.                                                                             
                                                                                                                                
 3:29:12 PM                                                                                                                   
 AT EASE                                                                                                                        
                                                                                                                                
 3:30:19 PM                                                                                                                   
 RECONVENED