Legislature(2021 - 2022)DAVIS 106
03/22/2021 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB117 | |
| HB132 | |
| State Board of Physical Therapy & Occupation Therapy | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 117 | TELECONFERENCED | |
| += | HB 132 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
HB 132-SCHOOL APPRENTICESHIP PROGS; TAX CREDITS
4:31:28 PM
CO-CHAIR FIELDS announced that the next order of business would
be 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."
4:31:44 PM
JOHN HAKALA, State Director, Office of Apprenticeship,
Employment and Training Administration, U.S. Department of
Labor, offered a PowerPoint presentation [hard copy included in
the committee packet], titled "Registered Apprenticeship in
Alaska; Providing a Foundation for Career Success and Skilled
Workers for Businesses," and began on slide 2, "Agenda," which
read as follow [original punctuation provided]:
• Apprenticeship 101
• Registered Apprenticeship in Alaska
• Youth Apprenticeship Framework
• Quality Pre-Apprenticeship Framework
• Funding Announcement
• Questions
MR. HAKALA advanced to slide 3, "What is Registered
Apprenticeship?" and explained that he went through an
apprenticeship program and became a journeyman electrician as a
result of his apprenticeship. The slide read as follows
[original punctuation provided]:
• Registered Apprenticeship is a national training
system that combines paid learning on-the-job and
related technical instruction in a skilled
occupation.
• The purpose of a Registered Apprenticeship
program is to enable employers to develop and
apply industry standards to training programs
that can increase productivity and improve the
quality of the workforce.
MR. HAKALA paraphrased slide 4, "Federal Requirements," which
read as follows [original punctuation provided]:
• On-the-job training plan
• Provisions for organized related instruction
• Progressive wage schedule
• Adequate and safe equipment and facilities for
training
• Established apprentice progress evaluation
• Qualified training and supervision
• EEO Pledge
• Minimum Age = 16 years
4:35:58 PM
MR. HAKALA proceeded to slide 5, "Office of Apprenticeship
(OA)," and noted that he has worked in this office for almost 23
years. He paraphrased the slide, which read as follows
[original punctuation provided]:
• Established by the National Apprenticeship Act of
1937 (Fitzgerald Act)
• The purpose of the Fitzgerald Act is to set forth
labor standards to safeguard the welfare of
apprentices & promote apprenticeship opportunity
with industry
• OA is a program office of the Employment &
Training Administration of the U.S. Department of
Labor
MR. HAKALA advanced to slide 6, "OA Functions & Services," which
read as follows [original punctuation provided]:
• Registration agency
• Promotion and expansion of apprenticeship
• Assist potential sponsors in developing
apprenticeship training standards
• Coordinates services with employment and training
programs
• Conduct program reviews and quality assessments
• Provide on-going technical assistance
• Integration of apprenticeship with workforce
system
• State-Federal Apprenticeship Partnership
MR. HAKALA presented slide 7, "Apprenticeship Framework," which
read as follows [original punctuation provided]:
• Structured on-the-job learning (OJL)
• Supervision by qualified mentors
• Combines related technical instruction (RTI)
• "Earn while you learn" format
• Adaptable and industry-driven
• Time, hybrid, or competency-based approaches
• Industry recognized certifications are portable
4:41:03 PM
CO-CHAIR SPOHNHOLZ asked whether the "earn while you learn"
format applies to all apprenticeships in Alaska.
MR. HAKALA responded that every registered apprenticeship
program must have a progressive wage schedule and are all "earn
while you learn." He explained that fields such as midwifery or
hairdressing include the term "apprentice" in employment
contracts, however this is not connected to the registered
apprentice programs managed by his office. He recalled his
experience working with midwives in trying to help them develop
an approved occupation to become registered nationally as
apprentices, but his office didn't get to the point where the
midwives could submit the occupation. He shared his
understanding that the midwife occupation has quite a lot to
consider moving forward. He concluded that the "earn while you
learn" format is imperative and must include defined entry wages
and a structure for wages to scale according to experience.
CO-CHAIR SPOHNHOLZ shared her understanding that "registered" is
the operative word as it relates to the "earn while you learn"
format. She asked Mr. Hakala what the barriers would be to
becoming registered in other fields, such as hairdressing.
MR. HAKALA replied that he would love for every occupation to be
"apprentice-able" in Alaska. If an industry is implementing an
apprenticeship model, he said, it would have the apprenticeship
framework in place, and the industry would work with his office.
Many industries are already doing about 80 percent of what the
apprenticeship model does, he said, such as incremental pay
raises. He noted that it is a difficult question to answer
because each industry is so different.
4:45:16 PM
REPRESENTATIVE KAUFMAN asked for the definition of registered
apprenticeship.
MR. HAKALA replied that regulations are discussed on the final
page of the presentation. The primary regulations from the Code
of Federal Regulations that drive his office are 29 CFR Part 29
Subpart A and 29 CFR Part 30. He said that he will distribute
those regulations to the committee.
4:46:34 PM
CO-CHAIR FIELDS listed progressive wages, the mentor ratio,
related technical instruction, and on-the-job training as some
of the benchmark components to apprenticeship. He asked Mr.
Hakala to share any other benchmark components for
apprenticeship.
MR. HAKALA directed attention back to slide 7 of his
presentation, which detailed the apprenticeship framework. He
emphasized the requirements for oversight of apprentices and
noted that apprentices need a minimum of 144 hours per year of
related technical instruction. He noted that there are 23
standards which must be met in order to be considered a
registered apprenticeship program.
CO-CHAIR FIELDS asked Mr. Hakala for an outline of the structure
of the on-the-job learning framework and for more details on the
standards of apprenticeship.
MR. HAKALA responded that the core of the program is on-the-job
learning, which is supplemented by related technical
instruction. When the program was designed, he said, it was
intended to supply all information "from A to Z" to an
apprentice about a chosen profession. He explained that
companies sometimes approach him but only intend to provide
apprenticeship and training for a portion of the occupation, but
such an arrangement wouldn't be considered for the registered
apprenticeship program because it is the goal of the program for
apprentices to learn every component. He said that O*NET Online
[www.onetonline.org] is a good resource for seeing the tasks and
detailed work activity of various occupations.
4:50:39 PM
REPRESENTATIVE KAUFMAN directed attention to the faith-based
organizations listed as apprenticeship partners on slide 8 [to
be presented]. He asked what an apprenticeship at a faith-based
organization would look like.
MR. HAKALA responded that there were initiatives a few years ago
by faith-based organizations that helped with recruitment. He
said that large organizations often conduct outreach activities
to get assistance in recruitment and will announce position
openings to various organizations including faith-based
organizations, which could include community or Alaska Native
organizations. Such organizations can also become program
sponsors for youth or adult occupations.
4:52:06 PM
MR. HAKALA continued his presentation with slide 8,
"Apprenticeship Partners," which read as follows [original
punctuation provided]:
• Businesses & Employer Associations
• Labor Organizations
• Educational Institutions
• Workforce Intermediaries
• Alaska Native Organizations
• Community-based Organizations
• Faith-based Organizations
• Government Agencies
• Workforce System
• Apprenticeship Grantees
MR. HAKALA proceeded to slide 9, "How is Apprenticeship
Different from Other Work-based Learning Models?", which read as
follows [original punctuation provided]:
Apprenticeship training is distinguished from other
types of workplace training by several factors:
(1) Apprenticeships are jobs! Apprentices earn wages
from their employers during training;
(2) Apprenticeship programs provide on-the-job
learning and job-related classroom training;
(3) On-the-job learning is conducted in the work
setting under the direction of a mentor(s); and
(4) Training results in an industry-recognized and
portable credential.
4:55:41 PM
REPRESENTATIVE SNYDER asked Mr. Hakala whether he could provide
a range of apprentice wages.
MR. HAKALA replied that in the trades, apprentices may earn
"quite a lot of money," beginning at 50 percent of the journey
worker's scale, which in the private sector could be anywhere
from $25 to $45 per hour. Health care occupations, he said,
earn less as a whole and apprentices may start at $12 per hour,
finishing at $18. He noted that earnings can generally be
higher in rural Alaska, but still vary greatly. He said that he
occasionally assists organizations in developing wage schedules,
using resources such as the Research and Analysis website
through the Department of Labor and Workforce Development, which
details wages across Alaska. He recalled challenges in
determining pay scale for apprentices in the early childhood
development industry, with organizations wanting apprentice
wages to be on par with those of employees with bachelor's
degrees. He observed that an apprentice who completes the
program always earns more than the individual would have
otherwise and has additional opportunities for managerial
progressions within the company.
4:58:45 PM
CO-CHAIR SPOHNHOLZ asked Mr. Hakala to detail apprenticeships in
early childhood education that take place in Alaska.
MR. HAKALA responded that it's a two-year, early child
development apprenticeship program with opportunity he described
as "gigantic." He shared that he is confident that if he were
to start having conversations with the early childhood
development community in Alaska, an apprenticeship program could
be achieved. Non-profits, however, depend more on "soft funds"
than do labor management programs that are able to fund their
own training centers; this is a limiting factor, he said,
because program development becomes more difficult when funding
comes from sources like grants.
5:01:00 PM
CO-CHAIR FIELDS commented that construction jobs are "living
wage" jobs, while the same is not true with regards to
childcare. If a living wage is not offered, he said, it is
difficult to support an apprenticeship program.
5:01:30 PM
MR. HAKALA added that Alaska Primary Care was a result of an
American Apprenticeship Initiative grant. He said that although
the program did not easily come together in the beginning, the
program is now "beautiful," with the addition of occupations
such as pharmacy tech. He said that with regards to early
childhood development, he was unable to convince the University
of Alaska to work with him on a curriculum, so instead his
office works with a university in Virginia that agreed to share
the school's curriculum.
MR. HAKALA continued his presentation on slide 10, "Benefits for
Apprentices," which read as follows [original punctuation
provided]:
• Skill development
• Earn and learn
• Career pathway to higher skills and wages
• Career advancement opportunities
• Training under the guidance of qualified mentors
• Nationally recognized credentials
• College credits
• Apprentices graduates earn up to $300 thousand
dollars more during their careers than non-
apprentice workers
MR. HAKALA moved to slide 11, "Benefits for Businesses," which
read as follows [original punctuation provided]:
• Increase employee retention
• Effective recruitment tool
• Cost-efficient training model
• Trained and educated workforce
• Transfer of knowledge, skills and expertise
• Improved quality of services & client care
• Develops future leadership
• Invest in your community
• On average, employers realize an average return
on investment of $1.47
5:05:24 PM
MR. HAKALA continued to slide 12, "Benefits for Alaska - Social
& Economic," which read as follows [original punctuation
provided]:
• Stabilize the Alaskan workforce
• Learn and train locally
• Employed apprentices purchase goods, services,
vehicles, snowmobiles, 4-wheelers, boats,
airplanes and homes.
• Increase supply of highly skilled Alaskan workers
• Reduce recruitment of out of state workers
• Future business leaders
• Aligns with and advances goals of key workforce
system initiatives
• Every $1 invested in apprenticeships leads to a
public return of approximately $28 in benefits
5:06:18 PM
CO-CHAIR FIELDS interjected to encourage members to look at the
extensive trend articles released by the Research and Analysis
Division of the Department of Labor and Workforce Development,
which studied this issue in 2009 and again in 2019.
5:06:41 PM
MR. HAKALA noted that registered apprenticeship wasn't written
into the Workforce Investment Act of 1998 (WIA), and his office
at the USDOL was figuring out how to integrate apprenticeships
with the WIA. Registered apprenticeship was written into the
Workforce Innovation and Opportunity Act of 2014 (WIOA), and Mr.
Hakala said that, due to the components inherent to the design
of the registered apprentice model, such as structured training,
mentorship, pre- and post-employment earnings, the registered
apprenticeship model fits well with WIOA.
MR. HAKALA moved to slide 13, "Apprentices in Alaska," which
read as follows [original punctuation provided]:
• Registered apprenticeship is a proven workforce
development strategy that supports local
economies, builds worker skills, and establishes
career pathways to higher levels of employment
and wages.
• Registered apprenticeships in the construction
and building trades have been active in Alaska
since the 1940's.
• Registered apprenticeships in Alaska train union
and non-union apprentices in 68 occupations, 16
occupation groups/industries, and in 21
borough/census areas.
• Hundreds of millions of private dollars have been
invested in apprentices and apprenticeship
training centers across the state.
5:08:57 PM
CO-CHAIR FIELDS asked Mr. Hakala about the annual cost, per
apprentice, in a National Electrical Contractors-Association
International Brotherhood of Electrical Workers (NECA-IBEW)
apprenticeship.
5:09:16 PM
MR. HAKALA replied that it varies. Labor management programs
have a dedicated amount to invest in workforce training, such as
paying $1 per hour into a training fund. He said that investing
in workforce training is how the registered apprenticeship
programs survive, and he explained that the soft-funded programs
take a different viewpoint on sustainability. He said he tries
to help those programs establish a fee structure and business
model for a path to sustainability.
5:11:04 PM
REPRESENTATIVE KAUFMAN asked Mr. Hakala whether committee
members can view the various revenue streams that fund the
registered apprenticeship program. He asked, "Is there
veterans' money that goes into these programs as well, similar
to other continuing education?"
MR. HAKALA responded that programs typically use the State
Training & Employment Program (STEP) for funding, in addition to
funds from WIOA, with the funds generally distributed through
the job centers. There are a variety of funding streams, he
said, and there are active federal apprenticeship expansion
grants in Alaska right now. He said that his office doesn't
help fund the programs, he simply designs them and determines
how to make the programs efficient and cost-effective. He noted
that registered apprenticeship programs are also pre-approved
for the Government Issue (GI) Bill, which could include all
costs related to college such as tuition or the differential
between the entry-level apprentice wage and the journey wage.
5:14:33 PM
CO-CHAIR FIELDS announced that the committee would recess to the
call of the chair.
6:37:31 PM
CO-CHAIR FIELDS called the House Labor and Commerce meeting back
to order at 6:37 p.m. Representatives Fields, Snyder, Schrage,
and McCarty were present at the call back to order.
Representatives Spohnholz and Nelson arrived as the meeting was
in progress.
6:37:41 PM
MR. HAKALA told committee members that he sent an email to Co-
Chair Fields that included apprenticeship standards and
occupation schedules for veterinary technicians, pipe and
operation technicians, airframe and power plant mechanics, and a
couple of medical occupations. Also included in the email were
10 examples of potential funding streams, which Representative
Kaufman had asked about, and he said that apprenticeship
starting wages range from $15 to $28 per hour across all
occupations in Alaska, with exit wages up to $48 per hour.
MS. HAKALA resumed his presentation with slide 14,
"Apprenticeship in Alaska," which read as follows [original
punctuation provided]:
• Program Sponsors = 283
• Multi employer = 22
• Single employer = 261
• Total employers participating = 796
• 68 active apprenticeship occupations
• 16 occupation groups/industries
• Primarily in construction & extraction;
installation, maintenance & repair, and
healthcare categories
• Total Active Apprentices = 1931
6:40:00 PM
CO-CHAIR FIELDS interjected to verify whether both multi-
employer and single employer sponsors could be union or non-
union.
MR. HAKALA replied that is correct, and he said that the
majority are non-union. He noted that the apprenticeship
program is tailored to the needs of each employer.
6:41:44 PM
REPRESENTATIVE NELSON asked how long it takes for a registered
apprentice to complete the program.
MR. HAKALA replied that the apprenticeship program is described
in either hours or years and allows some leeway. For instance,
he said, a four-year construction program might take 5 years to
complete; depending on the occupation, the program can take
anywhere from one to five years. He noted that construction
apprenticeships can take longer due to cycles in the industry,
but that health care occupations operate year-round, so those
apprentices are more able to stay on a timeline.
REPRESENTATIVE NELSON asked whether the completion rate has
increased from the 2014 level of 26 percent.
MR. HAKALA responded that the completion rate is a complicated
formula using, in part, the apprenticeship start date plus one
year. He said there's a probationary period wherein an
apprentice can cancel their participation, and those don't count
against the program's metrics. He said that in FY 20 the
program saw 99 completions, whereas a typical year would have
225 -275 completions each year in the system. Some occupations
have a higher cancellation rate than others, he said, but the
overall annual completion rate within the national
apprenticeship system is 41 percent.
REPRESENTATIVE NELSON expressed the understanding that 275
completions in 1,931 apprentices equates to a 7 percent
completion rate, which, he said, is "a very small amount." He
said that he would like to see more numbers.
MR. HAKALA replied that he doesn't disagree. He said that there
are cancelations in every training program, and it's preferred
that if the apprentice leaves the program it's done within the
first year. He noted that there is a statistics page with
current data for each state on the website
www.apprenticeship.gov.
6:47:01 PM
CO-CHAIR SPOHNHOLZ noted that it's likely that some apprentices
are in multi-year programs.
MR. HAKALA said yes, programs such as electrician and
pipefitting take 5 years, and each occupation has a different
timeline for completion.
CO-CHAIR SPOHNHOLZ commented that the earlier characterization
of the program as having a 7 percent completion rate is
inaccurate, since many of the 1,931 apprentices in Alaska are in
multi-year programs. She noted that with the healthcare
apprenticeships being much shorter, one would expect to see a
higher completion rate in those occupations.
6:48:24 PM
CO-CHAIR FIELDS interjected to comment that the primary care
association has an "impressive" completion rate, but occupations
in the traditional building trades have more participants, which
is the reason for the efforts to expand the non-traditional
building occupations.
6:48:37 PM
REPRESENTATIVE NELSON said that his comments about the 7 percent
completion rate came from a study of Alaska economic trends
between 2004 and 2014, encompassing all industries in the state,
which said that "only 26 actually completed their
apprenticeships, while only 56 percent cancelled or dropped
out."
CO-CHAIR FIELDS asked whether shifting from one apprenticeship
program to another would count as a cancellation.
MR. HAKALA said that the 2014 trends study included "bad
numbers" and that the study was never vetted with his office
before it was published. He suggested a longitudinal study from
2009 for reference, which he described as "accurate."
REPRESENTATIVE NELSON said that he would like to see the 2009
longitudinal study.
MR. HAKALA said, "It was a 10-year study: the Alaska [Economic]
Trends [February] 2009 Apprenticeships in Alaska."
REPRESENTATIVE NELSON said that he referenced the 2014 study
because the commissioner of the Department of Labor and
Workforce Development, Heidi Drygas, had put her name on it.
MR. HAKALA stressed that the 2014 publication was "not accurate
at all," and he described being upset that he wasn't asked to
review it. He then asked Co-Chair Fields to repeat his
question.
6:51:19 PM
CO-CHAIR FIELDS asked whether a transfer between apprenticeship
programs constitutes a cancellation.
MR. HAKALA responded that apprentices used to be tracked by an
identification (ID) number, which would be attached to the
individual through their entire apprenticeship experience. Now,
he said, it's easier to cancel an apprentice leaving a program
and re-register the individual using a new ID number. He
expressed that he understands the reason for doing so, even
though he has "issues" with it. Should an employer lay off an
apprentice, he said, which is common in construction, the
apprentice needs to find a new sponsor; if everyone
communicates, transition could happen with the original
apprentice ID number. However, he said, very few people call
him when leaving a program, so they end up re-registered with a
new apprentice ID number.
6:53:18 PM
MR. HAKALA continued with slide 15, which displayed a chart
showing the registered apprentices grouped by age. Of the 1,931
total apprentices, 822 are between 16 and 24 years old, with 2
16-year-olds, 3 17-year-olds, and 78 18-year-olds. He said,
"For me, this legislation, this House Bill, is really important
because what we're looking to do is create the environment for
new program sponsors, for youth, to be registered." He said
that the current stock of program sponsors are primarily
programs who accept apprentices aged 18 and over, and if those
younger than 18 are accepted, it's only one or two per year. He
said that there is no true youth apprenticeship system in Alaska
and that youths are not being recruited into the programs
currently operating. He said, "They go out and maybe try
college, maybe drop out - we were talking about completion
rates, college has a pretty high dropout rate too, you know? -
and so they kick soda cans for five or six years before maybe
they cycle back to an apprenticeship program." He stressed
that's the urgency of this proposed legislation.
MR. HAKALA moved to slide 16, "High School Registered
Apprenticeship," and noted that this area is very important. He
said the career and technical education programs around the
state, which have already been invested in and include high-
quality training, could become program sponsors; however, like
many nonprofits, programs need help making the connection with
employers. Slide 16 read as follows [original punctuation
provided]:
• High School (HS) Registered Apprenticeship
programs combine work-based, on-the-job learning
with relevant technical education in the
classroom.
• Students who participate in these programs
graduate with a high school diploma, may earn
college credits, and national industry
credentials.
• They also start on a career path that continues
after high school graduation whether that is a
continuation of their registered apprenticeship
along with college, college only, registered
apprenticeship only, or other full-time
employment.
• HS Registered Apprenticeships benefit businesses
as well by providing a fresh source of talent
developed from within their community.
MR. HAKALA presented slide 17, "High School Registered
Apprenticeship," which included photos of apprentices working in
different occupations, as well as a quote from Kayden Gilila,
the first associate teacher apprentice in Akiak, Alaska. The
quote on the slide read as follows [original punctuation
provided]:
"I want to become a high school math teacher and teach
in my village. I want to give my community someone who
will be there for the kids and actually care about
their education. I plan on teaching in the community
for a long time. I want to be fortunate enough to be
remembered as the teacher who cared and made a
difference."
-Kayden Gilila, Senior 2021, Associate Teacher
apprentice, Akiak School
6:58:47 PM
CO-CHAIR FIELDS explained to committee members that the Lower
Kuskokwim School District helped develop the associate teacher
program, with the participants using the apprenticeship to get
halfway to a bachelor's degree in elementary education. He said
that other school districts, with proper support, could put
similar programs in place.
6:59:14 PM
MR. HAKALA paraphrased slide 18, "Youth Apprenticeship
Considerations," which read as follows [original punctuation
provided]:
• Does the sponsor/employer hire apprentices who
are 16 -18 years of age as well as older
applicants?
• Is it a program who's sole purpose is to serve
youth?
• High Schools
• Youth organizations
• Community or Faith-based organizations
• Designing Youth Apprenticeships
• Behavioral competencies
• Flexibility to work/school schedule
• Intermediary responsibilities post-graduation
(e.g., high schools)
• CTE credits for OJL and RTI
• Employer requirements
MR. HAKALA proceeded to slide 19, "Quality Pre-Apprenticeship,"
which read as follows [original punctuation provided]:
• Quality pre-apprenticeship programs contribute to
the development of a diverse and skilled
workforce by preparing participants to meet the
basic qualifications for entry into one or more
Registered Apprenticeship programs.
• Through a variety of unique designs and
approaches, pre-apprenticeship programs can be
adapted to meet the needs of differing
populations being trained, the various employers
and sponsors they serve, and specific
opportunities within the local labor market.
MR. HAKALA presented slide 20, "Quality Pre-Apprenticeship,"
which read as follows [original punctuation provided]:
• Pre-apprenticeship services and programs are
designed to prepare individuals to enter and
succeed in Registered Apprenticeship (RA)
programs.
• These programs have a documented partnership with
at least one Registered Apprenticeship program
sponsor and together, they expand the
participant's career pathway opportunities with
industry-based training coupled with classroom
instruction
MR. HAKALA advanced to slide 21, "Quality Pre-Apprenticeship,"
which read as follows [original punctuation provided]:
• Benefits for Participants:
• Career exploration
• Qualify to meet minimum standards for selection
into RA programs
• Benefit from classroom and technology-based
training
• Get started on career-specific training and
career opportunities
• Develop literacy, math, and work readiness skills
• Advance into a Registered Apprenticeship Program
MR. HAKALA opined that career exploration should begin in middle
school, and noted that child labor laws allow youth, with
parental approval, to work beginning at age 14. He then
proceeded to slide 22, "Alaska Quality Pre-Apprenticeship
Framework," which read as follows [original punctuation
provided]:
• Minimum Qualifications
• Recruitment Strategy
• Hands-on Training and Integrated Curriculum
• Industry Certifications
• Supportive Services
• Registered Apprenticeship Placement
• Partnerships and Collaborations
• Recognized by DOL&WD Division of Employment &
Training Services
MR. HAKALA discussed the importance of a structured pre-
apprenticeship framework and expressed that the USDOL has been
working to develop the apprenticeship in Alaska. He then
progressed to slide 23, "Resources," displaying links to various
resources, which read as follows [original punctuation
provided]:
DOL Apprenticeship Website: www.apprenticeship.gov
Youth Apprenticeship:
www.apprenticeship.gov/education/high-school-and-
middle-school
Resource Hub: www.apprenticeship.gov/resource-hub
Investments: www.apprenticeship.gov/investments-tax-
credits-and-tuition-support
Alaska Department of Labor & Workforce Development:
www.jobs.state.ak.us/apprentice/index.html
John P. Hakala, Alaska State Director,
hakala.john@dol.gov
7:07:49 PM
MR. HAKALA concluded his presentation with slide 24, "Funding
Announcement," and commented that each administration approaches
apprenticeship programs differently. Slide 24 read as follows
[original punctuation provided]:
Funding Opportunity Number: FOA-ETA-21-07; $87.5
million
Posted Date: March 17, 2021 | Closing Date for
Applications: April 26, 2021
The purpose of the State Apprenticeship Expansion and
Innovation (SAEI) grant program is to support the
development of new, or the expansion of existing,
Registered Apprenticeship Programs (RAPs), as
described in 29 CFR Part 29 (Subpart A) and 29 CFR
Part 30. This also includes quality pre-apprenticeship
programs that directly lead to grant funded RAPs
during the grant period of performance. The SAEI
grants will support states to achieve the following
goals:
1) Apprenticeship system expansion to support the
development, modernization, and diversification of
RAPs;
2) Partnership and alignment to support a One
Workforce System vision;
3) Increasing the number of apprentices enrolled in
RAPs; and
4) Innovation in apprenticeship expansion efforts to
include program development and recruitment
strategies.
7:09:11 PM
CO-CHAIR FIELDS, directing his comments to Ms. Riddle, said that
he's of the understanding that there's not enough school
district staff to work on establishing partnerships with
employers for new apprenticeship and dual credit programs. He
said that he would like to see DOLWD and EED pursue those
funding opportunities in partnership with the school districts.
7:10:10 PM
CO-CHAIR SPOHNHOLZ asked whether the $87.5 million is for the
entire country, or if there are multiple grants for that amount.
MR. HAKALA said that it's the funding for the entire country,
but the minimum award would be $2 million, which would be enough
to fund the initiatives as described by Co-Chair Fields. He
said that "very few" states have the job training and workforce
initiatives as does Alaska.
7:11:18 PM
REPRESENTATIVE MCCARTY commented on empowering the workforce.
7:12:12 PM
MR. HAKALA mentioned that the University of Alaska utilized
funds from the Alaska Technical Vocational Education Program
(TVEP) to pay for an apprenticeship coordinator, and University
of Alaska Anchorage used those funds to develop the curriculum
for the aircraft maintenance technician program, which was based
on the premise of making the program available for registered
apprentices. He said that HB 132 would help in that
development.
7:12:58 PM
REPRESENTATIVE NELSON asked Mr. Hakala to confirm that the state
has not received the $87.5 million grant described on slide 24.
MR. HAKALA confirmed Representative Nelson's understanding and
he said that the funding was announced five days earlier.
REPRESENTATIVE NELSON expressed concern for funding the
apprenticeship programs, even with the grant money.
7:14:13 PM
CO-CHAIR FIELDS suggested moving on the proposed legislation and
subsequently parsing the question of funding.
7:14:29 PM
REPRESENTATIVE SCHRAGE moved to adopt the committee substitute
(CS) for HB 132, Version 32-LS0476\G, Klein, 3/19/21, as the
working document.
7:14:44 PM
REPRESENTATIVE NELSON objected for purposes of discussion.
7:14:49 PM
CO-CHAIR FIELDS explained that the CS removed HB 108, which will
be considered separately. Also in the CS, he said, were some
technical changes recommended by Mr. Hakala, as well as language
ensuring that the proposed tax credit would work for nonprofits.
7:15:35 PM
The committee took a brief at-ease.
7:15:38 PM
A roll call vote was taken. Representatives Snyder, Spohnholz,
Fields, Schrage, and McCarty voted in favor of adopting the CS
for HB 132, Version 32-LS0476\G, as the working document.
Representative Nelson voted against it. Therefore, by a vote of
5-1, the CS for HB 132 ("Version G") was before the House Labor
and Commerce Standing Committee as the working document.
7:17:13 PM
REPRESENTATIVE SCHRAGE moved to adopt Amendment 1, labeled 32-
LS0476\G.1, Klein, 3/22/21, which read as follows:
Page 5, line 27:
Delete "$1,000"
Insert "(1) $1,000 for an apprentice who is not
a veteran;
(2) $1,500 for an apprentice who is a
veteran"
Page 6, following line 4:
Insert a new subsection to read:
"(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."
7:17:11 PM
CO-CHAIR FIELDS objected for purposes of discussion.
7:17:14 PM
REPRESENTATIVE SCHRAGE explained that Amendment 1 would increase
the tax credit to $1,500 for veterans and provides for a
definition of "veteran."
7:17:41 PM
REPRESENTATIVE NELSON noted that veterans already have parts of
training paid for, and sections of the Government Issue (GI)
Bill fund training also. He asked whether the incentive is
really needed.
7:18:05 PM
REPRESENTATIVE SCHRAGE explained that tax credit is for the
employers, not the apprentice, and that it would incentivize
businesses to hire veterans.
7:18:28 PM
CO-CHAIR SPOHNHOLZ expressed her support of Amendment 1 and
noted Alaska's longstanding support of veterans.
7:19:09 PM
REPRESENTATIVE MCCARTY voiced his approval of Amendment 1 but
asked whether there are already tax credit incentives.
CO-CHAIR FIELDS answered that Alaska does not currently have an
apprenticeship tax credit. He said that Amendment 1 mirrors
some policy in place in Montana. He also clarified that the
amendment would be incentivizing the employer to hire veterans.
REPRESENTATIVE MCCARTY asked, "If there's already money that's
going to employers for the payroll of veterans, that's kind of
like a credit in itself." He mentioned "other Alaskans that
don't have such a privilege" and asked whether there exists an
"overappreciation" of veterans which serves to focus on job
creation for veterans as opposed to the non-veteran population.
7:20:47 PM
REPRESENTATIVE NELSON commented that there already exist federal
regulations that limit training to "75 or 85 percent of a class
has to be limited to just veterans." He expressed that there
could be apprenticeship classes full of veterans.
7:21:43 PM
REPRESENTATIVE SNYDER noted for the record that she is the co-
sponsor of the amendment. She commented on the need to ensure
that veterans, being overrepresented in terms of being eligible
for other benefits, are not having their needs "over-addressed"
compared to other groups. She said that in previous hearings
the committee has heard testimony about the importance of
gainful employment for veterans. She described a family
member's struggle with PTSD upon return from deployment and said
that she wished a program such as this was available at the
time. She said, "Everything that we can do to add to making
sure we have a smooth experience for our veterans coming back, I
think we should take that opportunity."
7:23:16 PM
CO-CHAIR FIELDS withdrew his objection.
7:23:26 PM
REPRESENTATIVE NELSON objected.
7:23:33 PM
REPRESENTATIVE SCHRAGE expressed approval of Representative
Snyder's comments and said that there is a "substantial,
demonstrated" need for opportunities for veterans. He stated
that Alaska has a large military presence as well as a shortage
of skilled workers. He said that with the future funding,
including the federal infrastructure package, this "could not
come at a better time."
7:24:19 PM
REPRESENTATIVE NELSON explained that he supports the concept of
Amendment 1 and noted that he is the only actively serving
military member on the committee. He stated his belief that the
proposed legislation focuses too narrowly on apprenticeships and
should also include internship, externships, and on-the-job
training.
7:24:56 PM
A roll call vote was taken. Representatives McCarty, Schrage,
Snyder, Spohnholz, Nelson, and Fields voted in favor of adopting
Amendment 1. No one voted against it. Therefore, Amendment 1
was adopted by a vote of 6-0.
7:25:47 PM
CO-CHAIR FIELDS opened public testimony on CSHB 132(L&C). After
ascertaining that there was no one who wished to testify, he
closed public testimony.
7:26:04 PM
REPRESENTATIVE SCHRAGE moved to report CSHB 132(L&C), Version
32-LS0476\G, Klein, 3/19/21, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
7:26:20 PM
REPRESENTATIVE NELSON objected.
7:26:26 PM
REPRESENTATIVE NELSON said that he supports the concept of the
proposed legislation but believes there has not been enough time
in committee for it to be properly vetted. He characterized HB
132 as a "very in-depth, comprehensive bill" and stated that he
does not believe in a "one-prong approach" to adequately meet
the needs of the state's students and workforce. He stated his
desire to see a broader array of educational options and
expressed concern with the tax credit being applicable only to
the business who hire apprentices.
7:27:43 PM
CO-CHAIR FIELDS commented that the committee would be
considering HB 108, which would take a broader approach in
dealing with workforce development programs for youth.
7:27:58 PM
REPRESENTATIVE MCCARTY opined that this is "a great discussion"
with no easy solution. He said that considering both HB 132 and
HB 108 would strengthen youth workforce training.
7:28:41 PM
A roll call vote was taken. Representatives McCarty, Snyder,
Fields, Spohnholz, and Schrage voted in favor of the motion to
report CSHB 132, Version 32-LS0476\G, Klein, 3/19/21, as
amended, out of committee with individual recommendations and
the accompanying fiscal notes. Representative Nelson voted
against it. Therefore, CSHB 132(L&C), was amended, was reported
out of the House Labor and Commerce Standing Committee by a vote
of 5-1.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 117 Additional Document 3.19.21.pdf |
HL&C 3/22/2021 3:15:00 PM SFIN 5/14/2021 1:00:00 PM |
HB 117 |
| HB 117 Sponsor Statement version A.pdf |
HL&C 3/22/2021 3:15:00 PM |
HB 117 |
| HB 117 v. A.PDF |
HL&C 3/22/2021 3:15:00 PM |
HB 117 |
| HB 117 Sunset Review DLA 6.19.2020.pdf |
HL&C 3/22/2021 3:15:00 PM SFIN 5/14/2021 1:00:00 PM |
HB 117 |
| HB 117 Fiscal Note DCCED 3.22.21.pdf |
HL&C 3/22/2021 3:15:00 PM |
HB 117 |
| HB 132 Work Draft Committee Substitute v. G 3.19.21.pdf |
HL&C 3/22/2021 3:15:00 PM |
HB 132 |
| HB 132 Amendment #1 3.22.21.pdf |
HL&C 3/22/2021 3:15:00 PM |
HB 132 |
| HB 132 Letter of Support - Ironworkers Business Manager 3.19.21.pdf |
HL&C 3/22/2021 3:15:00 PM SEDC 3/11/2022 9:00:00 AM |
HB 132 |
| HB 132 Letter of Support - Ironworkers Apprenticehsip Training Coordinator 3.19.21.pdf |
HL&C 3/22/2021 3:15:00 PM |
HB 132 |
| HB 132 Letter of Support - PNRCC 3.22.21.pdf |
HL&C 3/22/2021 3:15:00 PM SEDC 3/11/2022 9:00:00 AM |
HB 132 |
| HB 132 Letter of Support - ASPTA 3.22.21.pdf |
HL&C 3/22/2021 3:15:00 PM SEDC 3/11/2022 9:00:00 AM |
HB 132 |