Legislature(2021 - 2022)BUTROVICH 205
03/11/2022 09:00 AM Senate EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| SB146 | |
| HB132 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 146 | TELECONFERENCED | |
| += | SB 34 | TELECONFERENCED | |
| *+ | HB 132 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 132-SCHOOL APPRENTICESHIP PROGS; TAX CREDITS
9:12:41 AM
CHAIR HOLLAND reconvened the meeting and announced the
consideration of CS FOR HOUSE BILL NO. 132(FIN) "An Act relating
to technical education and registered apprenticeships."
9:13:55 AM
REPRESENTATIVE ZACK FIELDS, District 20, Alaska State
Legislature, Juneau, Alaska, sponsor of HB 132, recognized Ray
Stevens and the Labor and Commerce Committee for the origination
of HB 132 and Representative Claman, who assisted in carrying it
across the House floor.
REPRESENTATIVE FIELDS said Alaska has high-performing
apprenticeship programs in traditional trades and new
industries. The Alaska Primary Care Association is a new
industry experiencing large-scale apprenticeship expansion. By
expanding career and technical education (CTE) and school-to-
apprenticeship program opportunities, HB 132 will benefit
students who cannot afford college or need to remain in their
communities. Apprenticeships are a vehicle for individuals to
have a promising career and potentially earn a college degree
without acquiring student debt. Making opportunities available
supports employers looking for skilled workers to fill demanding
jobs. Apprenticeships are expanding nationally. Good state
policy positions Alaska to capture and capitalize on federal
apprenticeship grants.
9:15:46 AM
REPRESENTATIVE FIELDS moved to slide 2 and said HB 132
establishes an employer tax credit of $1,250 per apprentice and
is based on a successful model used in South Carolina. He
briefly explained South Carolina's apprenticeship expansion.
Although Alaska is a leader in union apprenticeship programs,
modeling South Carolina's apprenticeship program can diversify
and expand Alaska's apprenticeships by embedding non-union
apprenticeships into colleges.
9:17:00 AM
REPRESENTATIVE FIELDS turned to slide 3 and said that HB 132
provides statutory direction to the Department of Labor and
Workforce Development (DOLWD) and the Department of Education
and Early Development (DEED) to collaborate in support of
apprenticeships at no cost to the state. The goal is for DOLWD
to determine ways federal apprenticeship grants can be used to
partner with school districts to support CTE and school-to-
apprenticeship programs since the Perkins funding stream is
inadequate for Alaska's needs.
9:17:58 AM
REPRESENTATIVE FIELDS advanced to slide 5 and said HB 132 was
crafted using language that respects the Board of Regents and
directs the University of Alaska (UA) to explore ways to expand
dual credit for CTE courses and college credit for
apprenticeship participants. There are already many types of
apprenticeships that could receive college credit. Making a
college pathway available to working-class students would help
advance their careers while they work. He listed the broad range
of union and non-union stakeholders that support HB 132.
9:19:08 AM
REPRESENTATIVE FIELDS moved to slide 7 and said DEED is
interested in expanding apprenticeships, and DOLWD is
supportive. HB 132 has zero cost implications for either
department. The sole financial implication centers on the tax
credit.
REPRESENTATIVE FIELDS summarized that HB 132 would incentivize
employer participation and friendship, support cross-
departmental collaboration, support school districts seeking CTE
and apprenticeship programs, and expand dual-credit and post-
secondary pathway programs.
9:20:08 AM
SENATOR BEGICH stated that Senator Bishop and Stedman asked
Commissioner Johnson how to fix Alaska's low-ranking national
test scores when reviewing SB 111. Commissioner Johnson
responded that focus should be on the five measures identified
in Alaska's Education Challenge. Alaska is addressing those
measures through several bills. He asked if HB 132 addresses a
measure identified in Alaska's Education Challenge to increase
career and technical education.
REPRESENTATIVE FIELDS replied yes, HB 132 provides baseline
policy support to state agencies by encouraging the search for
apprenticeship and CTE opportunities. He said specific
apprenticeship opportunities, such as teaching apprenticeships,
should be sought after and necessary statutory baselines
established.
9:21:41 AM
SENATOR BEGICH stated that the Finance Committee is engaged in
this process, and the Education Committee should take advantage
of the moment.
9:22:03 AM
SENATOR HUGHES asked if the university and DLOWD were given
timeframes to submit proposals for CTE apprenticeships and
pathways.
REPRESENTATIVE FIELDS said no, the university and DLOWD have
been investigating and developing proposals for some time. The
legislature must inform agencies that it supports the work by
providing statutory baselines. He suggested that Teri Cothren
could provide insight into what the university has been working
on, and he could give details on DLOWDs proposals.
9:23:26 AM
SENATOR HUGHES said she was excited about expanding broadband in
Alaska and the online coursework capabilities it will provide to
villages off the road system. She opined that Alaska should be
gearing up now to offer individuals the ability to train for
high-paying jobs that might be of interest and fit off road
communities. She stated her belief that the expansion of
broadband pairs well with CTE and apprenticeship expansion
because it can provide job opportunities to areas that struggle
to have an economic base. She opined that marrying the two
concepts could be a game changer for Alaska.
9:24:48 AM
REPRESENTATIVE FIELDS agreed. He said that the Alaska Primary
Care Association (APCA) apprenticeship model plus college credit
shows potential because distance-delivered instruction to rural
community health centers is only possible when the two concepts
of apprenticeship and video instruction are connected. Other
organizations will have the ability to replicate the APCA model
and benefit more people as broadband expands to other
communities.
9:25:18 AM
SENATOR HUGHES said schools and clinics provide state jobs that
are wonderful, and she supports training Alaskans for those
positions. However, job opportunities outside of state funding
bring dollars to grow and strengthen the economy. She stated her
desire for broadband expansion and apprenticeships to bring new
opportunities into the state.
9:26:16 AM
TERI COTHREN, Associate Vice President, Workforce Development,
University of Alaska, Anchorage, Alaska, stated that the
university supports HB 132 and expanding apprenticeship
pathways. The workforce development office also encourages
existing and continued partnerships between UA, DOLWD, and DEED
because it helps the state be responsive to workforce needs
while expanding access to education. She opined that federal
infrastructure funding ties in nicely with apprenticeships to
help address workforce needs. The university wants to partner
with DOLWD and DEED to expand the pathways between dual
enrollment opportunities in secondary education and
apprenticeship pathways for apprentices and journeymen to
continue their education for career advancement. She provided
examples of university partnerships and how they assist students
and employers. Growing a solid workforce is core to the
university's mission. She stated that the university wants to
provide Alaskans pathways for upward mobility by earning
certifications and degrees that lead to employment and advanced
careers.
9:30:24 AM
MARIKO SELLE, Workforce Development Director, South Central
Alaska Health Education Center, Alaska Primary Care Association
(APCA), Anchorage, Alaska, stated she fully supports HB 132 and
its potential to open doors into health and human services
careers for youth and adults through registered apprenticeships.
The Alaska Primary Care Association has been a multi-agency
sponsor of registered apprenticeships since 2017. Being a multi-
agency sponsor means working with various healthcare employers,
including but not limited to federally qualified health centers.
APCA has healthcare apprentices learning and working throughout
Alaska. Currently, apprenticeships offered are:
• Medical Assistant
• Medical Secretary
• Electronic Records Specialist
• Direct Support Specialist
• Pharmaceutical Technician
• Billing and Coding Specialist
• Community Health Worker
• Dental Assistant
MS. SELLE stated that apprenticeships are an innovative way to
recruit and retain workers critical to the healthcare field.
When Alaska has strong apprenticeship policies, it puts the
state in a better position to garner federal funding. The model
works well for rural Alaska but also in urban areas where
mentors are training staff. The recruitment pool for entry-level
jobs is the people who live in the community, which means people
are hired without experience and are trained by staff. An
apprenticeship model provides structured formal education for
individuals to learn needed skills through a didactic related
technical instructor (RTI) while being locally mentored. The
University of Alaska (UAA) career ladder is open to the
apprentices at APCA to create a partnership with UA. APCA also
partners with Alaska Pacific University so apprentices can earn
an undergraduate certificate after completing an apprenticeship
program. She stated that the programs are well suited for youth
pursuing a career track versus a college track. APCA works with
school districts to provide pathways to career-minded high
school students to earn college credit while following a career
path.
9:36:03 AM
ALICIA MALTBY, President, Associated Builders and Contractors
(ABC), Anchorage, Alaska, said ABC is the voice of Alaska's
construction industry. It advocates free enterprise ideals,
develops workforce training, and provides contractors with the
resources required to compete in an ever-changing business
environment. ABC operates one of the largest apprenticeship
programs in Alaska through its member employee companies and
self-study. She stated that ABC believes training is integral to
Alaska's economy. Too often, public entities debate policies
that attempt to pick winners and losers among training
opportunities available to Alaskans. She opined that policy
around training should promote all opportunities, including
federally approved apprenticeship programs for on-the-job
training, self-study, and robust vocational and technical
options, including secondary education. ABC supports the passage
of HB 132 because it is a responsible, collaborative, and
positive step in promoting more training opportunities for
Alaska but will remain neutral on the apprenticeship tax credit
provision. She stated her appreciation for Representative
Fields' work and partnership on HB 132.
9:37:40 AM
CHAIR HOLLAND asked if HB 132 was based on North Carolinas
model.
REPRESENTATIVE FIELDS replied that the tax credit portion of HB
132 was based on South Carolina's successful tax credit.
CHAIR HOLLAND asked whether HB 132 was based entirely on South
Carolina's model.
REPRESENTATIVE FIELDS responded that only the tax credit portion
of HB 132 followed the South Carolina model. The policy
structure for HB 132 was inspired by the incredible expansion of
APCA's apprenticeship program that started in 2017. He stated
that he worked for DOLWD when the program started and noticed
gaps in statutory support for cross-departmental collaboration.
He also saw gaps in support for school districts trying to ready
students for apprenticeships. He provided an example of
statutory change and said he worked with several school
districts to determine how the legislature could support school
efforts and scale up school-to-apprenticeship programs.
9:39:39 AM
CHAIR HOLLAND said that usually tax credits are given to spur
activity. He questioned whether a tax credit was necessary since
employer demands were not being met. He asked whether the tax
credit was integral to HB 132.
9:40:13 AM
REPRESENTATIVE FIELDS replied that HB 132 would be beneficial
even without the tax credit. However, it is more potent with the
credit because employers have startup costs, and the tax credit
alleviates risk. He said that more employers would try
apprenticeships if the risk were reduced. He provided APCA as an
example. He opined that employers would continue to use
apprentices because of the internal rate of return.
9:41:27 AM
CHAIR HOLLAND asked if it is a one-time credit per apprentice or
employer.
REPRESENTATIVE FIELDS responded that it is a one-time credit per
apprentice.
9:41:38 AM
SENATOR BEGICH stated he wanted to emphasize that the tax credit
is ongoing. However, once a tax credit is applied to an
apprentice, the employer does not continue to apply it yearly to
that apprentice.
9:41:51 AM
SENATOR HUGHES said that giving a tax credit means the state
collects less revenue. She asked if an employer incentive
payment of $1,250 could be set up using untapped federal dollars
instead of reducing state revenues through a tax credit.
9:42:58 AM
REPRESENTATIVE FIELDS answered that federal apprenticeship funds
are being used. He opined that strong statutory support for
apprenticeships puts Alaska in the best position to capture
additional apprenticeship opportunities that arise. The US
Department of Labor announced a new round of apprenticeship
grants one month ago. He stated his belief that DOLWD could
incentivize new employers who start an apprenticeship program by
offering $1,250 to offset the program costs. However, he would
want to talk to DOLWD about opportunity costs compared to the
current allocation of the American Apprenticeship Initiative
grant, which is the main ongoing funding stream. The Alaska
State Hospital and Nursing Home Association (ASHNA), in
partnership with APCA, is applying for one of the new grants. If
successful, it will significantly scale up apprenticeships in
healthcare. He concluded that he is hesitant to suppose $1,250
could universally be issued as an incentive without fully
understanding funding.
9:44:20 AM
SENATOR HUGHES said it is worth exploring because many
organizations, such as community health clinics, do not pay
taxes. She opined that everyone should be motivated without
impacting state revenue if it is feasible.
9:44:50 AM
REPRESENTATIVE FIELDS noted that the Finance Committee amended
HB 132 to make the credit refundable so that it is equal for
non-profit and for-profit organizations. For-profit C
Corporation taxpayers get a tax credit. Non-profit
organizations, like APCA, would be paid $1,250 because the cost
impact to the organization would be the same.
9:45:28 AM
GRACE KUBITZ, Staff, Representative Zach Fields, Alaska State
Legislature, Juneau, Alaska, read the sectional analysis for HB
132:
[Original punctuation provided.]
Sectional Analysis for CSHB 132 ver N
Section 1: This section names the bill the Alaska
Apprenticeship Expansion Act.
Section 2:
AS 14.07.020(a). Duties of the department. Adds
to the duties of the Department of Education and Early
Development that they must collaborate with the
Department of Labor and Workforce Development to
provide financial and technical support to school
districts creating or expanding school to
apprenticeship programs or concurrent secondary
education and apprenticeship programs.
DEED must also provide technical support to school
districts seeking to provide science, math, and
engineering credit for career and technical education
courses, and provide opportunities to participate in
concurrent vocational education, training, and on-the-
job trade experience programs to students over 14
years of age enrolled in public secondary schools.
Section 3:
AS 14.40.190(c). Duties and powers of Board of
Regents. Adds to the duties of the Board of Regents
and their designee. It requires they give a
presentation to the proper legislative committees in
the first year of a legislative session on their work
with Department of Labor to provide credit programs
for concurrent secondary education and registered
apprenticeships.
Section 4:
AS 43.20. Chapter 20. Alaska Net Income Tax Act.
Adds a new section to AS 43.20. The new section is
described below:
Sec. 43.20.055. Registered apprentice tax credit.
Creates a registered apprentice tax credit. This
section clarifies that a taxpayer that hires a
registered apprentice and employs and trains the
registered apprentice in the state is entitled to a
credit. This section also specifies other requirements
related to the registered apprentice tax credit:
? To qualify as a registered apprentice for the
purposes of the credit, a person must participate in a
registered apprenticeship program recognized by the
Department of Labor and Workforce Development;
? The amount of credit that may be applied by a
taxpayer for each qualifying registered apprentice is
$1,250.
? The tax credit may be applied against the tax for
the first tax year ending on or after the end of the
employment period. The credit may not be used to
reduce a person's tax liability below zero for any tax
year, and any credit or portion of a credit not used
may be applied in a later tax year. It is refundable.
A taxpayer must keep a record of the name of the
registered apprentice whose employment and training is
the basis for a credit, and the registered
apprentice's hours employed and period of employment.
The department may by regulation specify the
documentation that must be maintained to support a
claim that an employee qualifies as a registered
apprentice.
9:48:27 AM
SENATOR HUGHES asked what the process is for registering an
apprentice program and having it recognized by DOLWD. She
wondered if there were statutory guidelines.
9:48:51 AM
REPRESENTATIVE FIELDS replied that apprenticeship is regulated
by the federal government under the National Apprenticeship Act.
Every registered apprenticeship is registered with the US
Department of Labor. States have some options regarding how they
work with the federal government. The Alaska Department of Labor
and Workforce Development is unique because it works alongside
the US Department of Labor in registering an apprenticeship. The
actual registration is filed with the US Department of Labor.
There is an Office of Apprenticeship in Anchorage. Federal law
requires apprenticeships to be transparent.
9:49:36 AM
SENATOR HUGHES asked for a description of the criteria and
process that a new employer would go through to establish an
apprenticeship.
REPRESENTATIVE FIELDS replied that there are four types of
sponsors single employer, multi-employer, educational training
institution, and self. He stated that if a person does not want
to sponsor themself, they can ask a single employer to be a
sponsor, such as a mom-and-pop plumbing shop or hospital. Multi-
employers, like associations and unions, pool resources to offer
apprenticeship programs. Educational institutions can also
sponsor apprenticeships in partnership with an employer who
provides the training.
9:52:14 AM
SENATOR HUGHES questioned whether there is more to an
apprenticeship program than filling out a form to train someone
properly. She asked if there would be paperwork with detailed
criteria to meet.
REPRESENTATIVE FIELDS replied yes. The detailed criteria are
called standards of apprenticeship. There is a wide diversity of
apprenticeships, and each has detailed standards. Every
apprenticeship is a full-time job with training. One hundred and
forty-four is the minimum number of related technical
instruction hours per year for an apprenticeship.
Additionally, there are 2000 hours of on-the-job training with a
mentor. The US Department of Labor oversees the entire process
and will attempt to bring a program not being implemented
correctly back into compliance. The US Department of Labor can
cancel the apprenticeship if corrections are not made.
9:54:52 AM
CHAIR HOLLAND stated that career and technical education is
essential to Alaska's education and landscape. The committee
previously worked on a bill to create a middle college to help
university-bound students get a head start. He foresees the
committee working to provide similar opportunities for students
pursuing trades instead of college. He opined that HB 132 is one
piece of that puzzle.
9:55:45 AM
REPRESENTATIVE FIELDS thanked the committee for the opportunity
to discuss HB 132.
9:55:50 AM
CHAIR HOLLAND held HB 132 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CS SB 146 (SEDC).pdf |
SEDC 3/11/2022 9:00:00 AM |
SB 146 |
| SB 146 Updated Fiscal Note (University).pdf |
SEDC 3/11/2022 9:00:00 AM |
SB 146 |
| HB 132 Sponsor Statement 3.12.21.pdf |
HL&C 3/15/2021 6:30:00 PM SEDC 3/11/2022 9:00:00 AM |
HB 132 |
| HB 132 Sectional Analysis ver N 1.19.22.pdf |
SEDC 3/11/2022 9:00:00 AM |
HB 132 |
| HB 132 Summary of Changes ver O to ver N 5.15.21.pdf |
SEDC 3/11/2022 9:00:00 AM |
HB 132 |
| HB 132 Letter of Support - AGC 3.2.22.pdf |
SEDC 3/11/2022 9:00:00 AM |
HB 132 |
| HB 132 Letter of Support - ABC Alaska 2.24.22.pdf |
SEDC 3/11/2022 9:00:00 AM |
HB 132 |
| HB 132 Letter of Support - ASHNA 3.11.21.pdf |
HL&C 3/15/2021 6:30:00 PM SEDC 3/11/2022 9:00:00 AM |
HB 132 |
| HB 132 Letter of Support - Matsu Borough School District 2.24.21.pdf |
HL&C 3/15/2021 6:30:00 PM SEDC 3/11/2022 9:00:00 AM |
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 - ASPTA 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 - 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 Sponsor PowerPoint 1.19.21.pdf |
SEDC 3/11/2022 9:00:00 AM |
HB 132 |
| SB 146 Summary of Changes.pdf |
SEDC 3/11/2022 9:00:00 AM |
SB 146 |