Legislature(2023 - 2024)ADAMS 519

05/14/2024 10:00 AM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
-- Delayed to 1:30 pm --
+= SB 151 MISSING/MURDERED INDIGENOUS PEOPLE;REPORT TELECONFERENCED
+= SB 34 CITIZEN ADVISORY COMM ON FEDERAL AREAS TELECONFERENCED
+= SB 183 WORKERS' COMP BENEFITS GUARANTY FUND TELECONFERENCED
+= SB 29 CIVICS EDUCATION TELECONFERENCED
+= HB 275 SEXUAL ASSAULT EXAMINATION KITS/TRACKING TELECONFERENCED
+= HB 159 REGISTER INTERIOR DESIGNERS TELECONFERENCED
+= SB 99 FINANCIAL LITERACY PROGRAM IN SCHOOLS TELECONFERENCED
+= HB 149 NURSING: LICENSURE; MULTISTATE COMPACT TELECONFERENCED
+ SB 24 PUBLIC SCHOOLS: MENTAL HEALTH EDUCATION TELECONFERENCED
-- Public Testimony --
+ SB 12 ADDRESS CONFIDENTIALITY PROGRAM TELECONFERENCED
-- Public Testimony --
+ SB 204 CERT. OF FITNESS: PLUMBERS/ELECTRICIANS TELECONFERENCED
-- Public Testimony --
+= HB 259 COUNCIL ON HUMAN AND SEX TRAFFICKING TELECONFERENCED
+= HB 174 STATE FUND FIDUC DUTY:SOCIAL/POL INTEREST TELECONFERENCED
+= HB 190 ALASKA SUNSET COMMISSION TELECONFERENCED
+ HB 397 ELIMINATE VACANT STATE POSITIONS TELECONFERENCED
-- Public Testimony --
+ HB 396 DNR BIG GAME GUIDE PERMIT PROGRAM TELECONFERENCED
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 204                                                                                                           
                                                                                                                                
     "An  Act relating  to the  issuance of  certificates of                                                                    
     fitness  for  plumbers  and electricians;  relating  to                                                                    
     fees  for  certificates  of fitness  for  plumbers  and                                                                    
    electricians; and providing for an effective date."                                                                         
                                                                                                                                
Co-Chair  Foster relayed  that the  committee would  hear an                                                                    
introduction and  public testimony, review the  fiscal note,                                                                    
address an amendment, and report the  bill out if it was the                                                                    
will of the committee. He  asked the Department of Labor and                                                                    
Workforce Development  (DLWD) to provide an  introduction of                                                                    
the bill.  He noted  the legislation was  by request  of the                                                                    
administration.                                                                                                                 
                                                                                                                                
1:52:31 PM                                                                                                                    
                                                                                                                                
KIMBERLY  KOLVIG, LEGISLATIVE  LIAISON, DEPARTMENT  OF LABOR                                                                    
AND  WORKFORCE  DEVELOPMENT,  relayed that  the  legislation                                                                    
pertained  to  certificates  of  fitness  for  plumbers  and                                                                    
electricians.  The bill  made two  changes. First,  the bill                                                                    
would change  the trainee level  certificate of  fitness for                                                                    
plumbers  and  electricians from  two  years  to six  years.                                                                    
Currently, if  a trainee failed  to renew  their certificate                                                                    
of fitness,  the hours worked  during the lapsed  time could                                                                    
not be counted towards  the journeyman certification. In the                                                                    
past  five years,  approximately 36,000  days of  labor were                                                                    
worked  by electrical  and plumbing  trainees with  a lapsed                                                                    
certificate  and  the time  was  not  counted towards  their                                                                    
journeyman license.                                                                                                             
                                                                                                                                
Ms.  Kolvig   elaborated  that  changing  to   the  six-year                                                                    
certificate   of  fitness   took   into  consideration   the                                                                    
apprenticeship  period,  which   was  typically  about  four                                                                    
years, plus  anything unforeseen  that may occur  during the                                                                    
apprenticeship  period. Trainee  certificates after  July 1,                                                                    
2022, and  before the effective  date of the act,  would not                                                                    
be  required  to reapply  or  repay  the fees.  Second,  the                                                                    
amendment would increase the fee  for issuance of journeyman                                                                    
level  certificates or  renewal  certificates  from $200  to                                                                    
$300.  The journeyman  two-year  certification  had been  in                                                                    
effect since  2006 and it  had been  18 years since  the fee                                                                    
had  increased. The  fee increase  would cover  the loss  in                                                                    
revenue  created by  the changes  to trainee  certificate of                                                                    
fitness  as  the  Mechanical   Inspection  Unit  was  funded                                                                    
through program receipts.  She noted that there  had been no                                                                    
changes to the legislation along  the way. She shared that a                                                                    
colleague would speak to any  questions on an amendment that                                                                    
may be offered. She added  that the unions all supported the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Ms.  Kolvig relayed  that the  legislation  would avoid  the                                                                    
difficult  situation  of  having to  reject  training  hours                                                                    
because   the  certificate   of  fitness   was  not   valid.                                                                    
Additionally,  the bill  would  eliminate  days in  trainees                                                                    
becoming a  journeyman plumber or electrician  who were much                                                                    
needed  in  Alaska. She  noted  a  colleague was  online  to                                                                    
review the fiscal note and  respond to any questions related                                                                    
to an amendment.                                                                                                                
                                                                                                                                
1:54:55 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster OPENED public testimony.                                                                                        
                                                                                                                                
Co-Chair Foster CLOSED public testimony.                                                                                        
                                                                                                                                
1:56:15 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster  asked the department  to review  the fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
TANYA   KEITH,  DIRECTOR,   LABOR   STANDARDS  AND   SAFETY,                                                                    
DEPARTMENT   OF  LABOR   AND   WORKFORCE  DEVELOPMENT   (via                                                                    
teleconference),   reviewed  the   DLWD  fiscal   note,  OMB                                                                    
component  346,   control  code   cHaip.  The   fiscal  note                                                                    
reflected  the change  in  fees. She  noted  that fees  were                                                                    
increased  based on  the Consumer  Price Index  (CPI). There                                                                    
would  be  a reduction  in  fees  associated with  the  less                                                                    
frequent updating of the certificate  of fitness. The fiscal                                                                    
note  showed  the  projected  increase   in  revenue  to  be                                                                    
collected by DLWD as a result of the legislation.                                                                               
                                                                                                                                
1:58:20 PM                                                                                                                    
                                                                                                                                
Representative Galvin understood that  many sectors had been                                                                    
reducing fees  in order to  encourage people to  choose that                                                                    
line of  work. She wondered  what the discussion  was around                                                                    
the particular  line of work for  plumbers and electricians.                                                                    
She asked if  there was a sense that the  increase would not                                                                    
deter anyone  from going into  the field. She  observed that                                                                    
the  fee   was  going  up   $100  and  she   recognized  the                                                                    
certificate would be good for  six years instead of two. She                                                                    
noted that  individuals would be  at the beginning  of their                                                                    
career, and she wanted to  ensure the change would not deter                                                                    
individuals from the specific line of work.                                                                                     
                                                                                                                                
Ms. Keith responded that the  change in fee would only apply                                                                    
to   the  journeyman   license.  She   clarified  that   the                                                                    
certificate of fitness for the  trainee license would remain                                                                    
at the $200 every six  years. The department recognized that                                                                    
people  entering the  trades  were earning  much  less at  a                                                                    
training rate.                                                                                                                  
                                                                                                                                
Representative Galvin thought she saw  the change on page 2,                                                                    
line 6.                                                                                                                         
                                                                                                                                
Representative  Tomaszewski believed  it seemed  like a  big                                                                    
increase.  He noted  that he  paid the  fee every  two years                                                                    
because   he   held    an   electrician   journeyman   level                                                                    
certificate. He  surmised he would  be paying $25  per month                                                                    
to continue to have his license.  He asked if there had been                                                                    
any  discussion in  changing the  journeyman's timeframe  to                                                                    
four  or six  years. He  estimated the  cost was  $12.50 per                                                                    
month  for two  years. He  asked how  many journeyman  level                                                                    
plumbers and electricians there were  in Alaska and how much                                                                    
money the new fee would generate.                                                                                               
                                                                                                                                
Ms.  Keith   responded  that  in  2023,   there  were  3,386                                                                    
electrical journeyman  and 1,184 plumbers. The  fee increase                                                                    
was due to an inflationary  increase. The department did not                                                                    
want  a   fee  increase   to  have  a   substantial  impact;                                                                    
therefore, it had  increased the fee based on  the amount of                                                                    
inflation.                                                                                                                      
                                                                                                                                
Representative Tomaszewski estimated  the combined number of                                                                    
electricians  and plumbers  was about  4,570. He  asked what                                                                    
the $100 increase would generate in a two-year period.                                                                          
                                                                                                                                
Ms.  Keith  responded that  the  fiscal  note reflected  the                                                                    
increase in  revenue the department  would collect  based on                                                                    
the  increase in  fees. She  explained  that the  Mechanical                                                                    
Inspection Unit  was self-funded. Since inflation  and costs                                                                    
had increased,  the unit  had to cut  back on  services. She                                                                    
relayed  that the  lapsed time  the certificate  of issuance                                                                    
certificate  increased  dramatically   making  plumbers  and                                                                    
electricians  waiting  for  their  licenses to  wait  for  a                                                                    
longer period of time. Increasing  the fees would enable the                                                                    
department  to update  databases  and services  in order  to                                                                    
provide services to the public in a timelier manner.                                                                            
                                                                                                                                
Representative  Tomaszewski  asked  if  the  change  equaled                                                                    
$105,000.                                                                                                                       
                                                                                                                                
Ms. Keith responded in the affirmative.                                                                                         
                                                                                                                                
2:04:19 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster moved to the amendment.                                                                                         
                                                                                                                                
Representative  Josephson MOVED  to ADOPT  Amendment 1,  33-                                                                    
GS2370\A.3 (Gunther, 5/8/24) (copy on file):                                                                                    
                                                                                                                                
     Page 2, following line 1:                                                                                                  
     Insert a new bill section to read:                                                                                         
     "*Sec. 2. AS 18.62.020 is amended by adding a new                                                                          
     subsection to read:                                                                                                        
     (b)  The department may  adopt regulations allowing for                                                                    
     the issuance  of a  provisional certificate  of fitness                                                                    
     to  an  individual who  applies  for  a certificate  of                                                                    
     fitness  under   (a)  of  this  section   and  holds  a                                                                    
     comparable certificate in another jurisdiction."                                                                           
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
Representative Stapp OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative  Josephson  characterized  Amendment 1  as  a                                                                    
friendly  amendment that  he believed  was supported  by the                                                                    
department and labor.  He had been told  secondhand that the                                                                    
industry supported  it. The amendment would  allow people to                                                                    
receive a  provisional certificate of fitness  when applying                                                                    
for a certificate of fitness.                                                                                                   
                                                                                                                                
Co-Chair  Foster  asked if  DLWD  had  any comments  on  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Representative Josephson corrected that  he did not know the                                                                    
department's position.                                                                                                          
                                                                                                                                
Ms. Keith relayed that the  department was in support of the                                                                    
amendment.  She  explained   that  individuals  licensed  in                                                                    
another  state  (with  a   similar  licensing  structure  to                                                                    
Alaska) coming to  work in Alaska had to take  a test before                                                                    
they were allowed  to work, which could result  in a waiting                                                                    
period  of up  to a  month  or longer.  The amendment  would                                                                    
allow  DLWD to  offer a  provisional license  so individuals                                                                    
could work  while waiting for  their certificate  of fitness                                                                    
in Alaska to come through.                                                                                                      
                                                                                                                                
2:06:42 PM                                                                                                                    
                                                                                                                                
Representative Stapp  noted that  he had heard  the argument                                                                    
previously  related   to  other  issues.  He   WITHDREW  the                                                                    
OBJECTION.                                                                                                                      
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Hannan  asked about a scenario  where an out-                                                                    
of-state  contractor  came to  Alaska  to  work and  brought                                                                    
their  own  electricians  and plumbers.  She  asked  if  the                                                                    
individuals had  to be  licensed in Alaska  to work  under a                                                                    
general contractor in the state.                                                                                                
                                                                                                                                
Ms.  Keith  responded  that anyone  coming  into  Alaska  to                                                                    
perform  any  type of  trade  work  had  to have  an  Alaska                                                                    
certificate  of fitness.  She  explained  that the  scenario                                                                    
provided by Representative Hannan  was exactly the situation                                                                    
where  DLWD would  be looking  to grant  individuals with  a                                                                    
provisional certificate  of fitness  to allow them  to begin                                                                    
work immediately.                                                                                                               
                                                                                                                                
Representative Galvin  asked if  a one-month period  for the                                                                    
provisional  certificate  was  sufficient. She  wondered  if                                                                    
there was  concern that if  the provisional  certificate was                                                                    
good for longer  than one month that  individuals would come                                                                    
to the  state to work for  a month and would  leave [without                                                                    
ever obtaining  their certificate  of fitness].  She assumed                                                                    
the  goal  was  to   have  individuals  eventually  get  the                                                                    
certificate.                                                                                                                    
                                                                                                                                
Ms. Keith  responded that she was  not sure if she  had seen                                                                    
the  particular version  of  the  amendment currently  under                                                                    
consideration. The amendment she had  seen did not include a                                                                    
timeframe.                                                                                                                      
                                                                                                                                
Representative  Galvin  thought she  had  heard  one of  the                                                                    
speakers mention  one month but she  considered that perhaps                                                                    
a  timeframe  was  not  in  the  amendment.  She  asked  the                                                                    
amendment sponsor to clarify.                                                                                                   
                                                                                                                                
Representative Josephson responded that  he did not know the                                                                    
timeline. He agreed with Ms.  Keith that the amendment would                                                                    
enable the department to adopt regulations.                                                                                     
                                                                                                                                
Representative Galvin  thought that  it would make  sense to                                                                    
attach a  specific timeframe  to a  provisional certificate.                                                                    
She  believed  "provisional"   implied  that  something  was                                                                    
temporary until  another hurdle  or paperwork  was complete.                                                                    
She noted she was agnostic on the issue.                                                                                        
                                                                                                                                
Ms.  Keith   responded  that   the  department   would  make                                                                    
regulations that would specify a  time frame. She assumed it                                                                    
would be  closer to 90 days  to give an individual  the time                                                                    
to complete  the steps needed  to obtain the  certificate of                                                                    
fitness.                                                                                                                        
                                                                                                                                
Co-Chair Foster WITHDREW the OBJECTION.                                                                                         
                                                                                                                                
There being NO further OBJECTION, Amendment 1 was ADOPTED.                                                                      
                                                                                                                                
2:11:50 PM                                                                                                                    
                                                                                                                                
Representative Tomaszewski  asked about the fiscal  note. He                                                                    
remarked  that   it  had  been   stated  there   were  4,570                                                                    
electricians and plumbers and  the bill would increase their                                                                    
fee  by $100  for  the two-year  period.  He calculated  the                                                                    
total as $228,500  per year. He highlighted  that the fiscal                                                                    
note  specified  the  department   was  losing  $58,700  and                                                                    
increasing  $164,500  in other  license  fees  with a  total                                                                    
revenue  change of  $105,000. He  wondered  where the  other                                                                    
$64,000 was going.                                                                                                              
                                                                                                                                
Ms. Keith  believed the reduction  reflected the  amount the                                                                    
department   would   lose   associated  with   the   trainee                                                                    
certificate of fitness. There  were some additional licenses                                                                    
outside  of journeyman  electricians and  plumbers including                                                                    
boilermakers. She noted the additional  licenses may make up                                                                    
the amount.                                                                                                                     
                                                                                                                                
Representative  Tomaszewski  remarked   that  based  on  the                                                                    
department's testimony related  to electricians and plumbers                                                                    
there was an increase of  $457,000 over two years, which was                                                                    
$228,500 per year. He reasoned  that the department was only                                                                    
getting rid of  $58,000. He stated that the  numbers did not                                                                    
add up  to him, but he  assumed there were other  factors in                                                                    
play.                                                                                                                           
                                                                                                                                
Ms.  Keith responded  that Representative  Tomaszewski could                                                                    
be  right.  She relayed  that  the  fiscal note  was  vetted                                                                    
through  DLWD and  budget and  "that  is the  amount of  the                                                                    
change in increase."                                                                                                            
                                                                                                                                
2:14:06 PM                                                                                                                    
                                                                                                                                
Representative Stapp MOVED to REPORT  HCS SB 204(FIN) out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
There being NO  OBJECTION, HCS SB 204(FIN)  was REPORTED out                                                                    
of committee  with five "do  pass" recommendations,  two "no                                                                    
recommendation"      recommendations,       two      "amend"                                                                    
recommendations  and with  one  previously published  fiscal                                                                    
impact note: FN2 (DOL).                                                                                                         
                                                                                                                                
Co-Chair Foster  noted that  the committee  gave Legislative                                                                    
Legal  Services   the  authority   to  make   technical  and                                                                    
conforming changes  with the adoption  of the  amendment. He                                                                    
noted that  a number  of committee  members needed  to leave                                                                    
for a meeting. He remarked  that the committee may reconvene                                                                    
later  to  address HB  149.  He  thanked the  House  Finance                                                                    
Committee  nonpartisan  staff,   finance  members,  and  his                                                                    
staff.                                                                                                                          
                                                                                                                                
2:16:54 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:17:09 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Foster  thanked the committee  and staff  for their                                                                    
work throughout session.  He RECESSED the meeting  to a call                                                                    
of the chair.                                                                                                                   
                                                                                                                                
[Note: the meeting never reconvened.]                                                                                           
                                                                                                                                

Document Name Date/Time Subjects
SB 204 Amendment 1 051424.pdf HFIN 5/14/2024 10:00:00 AM
SB 204
SB 204 Amendment 1 Backup DLWD 051424.pdf HFIN 5/14/2024 10:00:00 AM
SB 204
SB204 Additional Documents-MI Licensing Review Charts 5.8.24.pdf HFIN 5/14/2024 10:00:00 AM
SB 204
SB204 Sectional Analysis ver A 5.8.24.pdf HFIN 5/14/2024 10:00:00 AM
SB 204
SB204 Sponsor Statement 5.8.24.pdf HFIN 5/14/2024 10:00:00 AM
SB 204
SB204 Supporting Documentation Letters of Support 5-8-24.pdf HFIN 5/14/2024 10:00:00 AM
SB 204
SB 12 Public Testimony Rec'd by 051324.pdf HFIN 5/14/2024 10:00:00 AM
SB 12