Legislature(2005 - 2006)SENATE FINANCE 532
04/28/2006 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SJR20 | |
| SB272 | |
| SB309 | |
| SB317 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SJR 20 | TELECONFERENCED | |
| + | SB 272 | TELECONFERENCED | |
| + | SB 309 | TELECONFERENCED | |
| *+ | SB 317 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR SENATE BILL NO. 309(L&C)
"An Act establishing a construction trades training grant
program for award by the Department of Labor and Workforce
Development, providing for special employee unemployment
contributions to fund the program and an offsetting credit
against the employees' general unemployment contribution,
and providing for an expiration date for the program,
contributions, and credit; and providing for an effective
date."
This was the first hearing for this bill in the Senate Finance
Committee.
GREG O'CLARAY, Commissioner, Department of Labor and Workforce
Development, characterized the bill as "must pass legislation"
necessary to meet the State's needs in the construction
industry, and to prepare Alaska's workforce for the potential
formation of a natural gas pipeline in the future.
TOM MAHER, Staff to Senator Therriault, explained the bill and
the sponsor statement [copy on file], which reads as follows.
This legislation responds to the upcoming opportunity to
train resident Alaskans to fill the thousands of high
paying jobs that will be created in the construction of a
gas pipeline by providing a stable stream of revenue,
subject to legislative appropriation, to Alaska Work
Partnership, Inc. or other qualified nonprofits for both
training and increasing the capacity of training
facilities.
With a project as large as the gas pipeline and the
thousands of jobs it will create, we must start now to make
sure resident Alaskans are trained and employable. This
bill provides the multi-year commitment necessary to do
that. This funding will leverage industry investment in
training facilities and equipment to build private sector
training capacity and increase industry capability for
sustaining training into the future.
In 2005 there were more than 20,000 individuals employed in
Alaska construction trades with annual incomes approaching
$60,000. Unfortunately, one in every five jobs, or 20%
belongs to individuals, who according to Permanent Fund
Dividend Eligibility are recent arrivals to Alaska. These
high paying jobs will continue to attract workers from
other states and countries. Also, with our 45% of our
resident construction workforce being over 45 years old,
industry must renew it's workforce with thousands of
appropriately training workers.
Alaska Works Partnership, Inc. has developed successful
programs that are proven effective in moving residents into
construction jobs. In the past five years AWP has helped
more than 1,000 residents become employed in construction.
More than 85% of the residents AWP has served are employed
in construction as a result of training. More than 90% of
the workers Alaska Work Partnership, Inc. trains are not
members of a union. The majority of workers placed in jobs
work for non-union employers.
SB 309 will divert 1/10th of a percent of current employee
contributions to a new "holding account" for appropriation
by the Legislature. Estimated income to the account is
projected to be over five million a year. With increased
payroll within the state, the Department of Labor has
projected that it is highly unlikely that this small
percentage diversion will cause any increase in
unemployment insurance rates.
The Senate Labor and Commerce Committee amended this
legislation to allow grants to other nonprofit
corporations, as determined by the Commissioner, to be
qualified and capable of providing this training.
SB 309 is slated to sunset in six years and requires an
annual report on performance.
Mr. Maher overviewed the fiscal notes, and noted the six-year
termination date with annual reporting requirements. He located
changes made by the Senate Labor & Commerce Committee on page 2
line 12, that allowed for grants to be made to nonprofit
training entities other than AWP.
4:06:48 PM
Mr. Maher referenced numerous letters of support for this bill.
AT EASE 4:07:24 PM /4:08:00 PM
4:08:38 PM
Senator Hoffman requested further information about the
construction labor force's growth of "15 percent over the next
five years" referred to in fiscal note #1.
Commissioner O'Claray replied that the figure was a statewide
projection. He informed that the Alaska Works Partnership (AWP)
trains more rural residents than urban residents, and considered
the program a "good balance". This funding stream would allow
"concerted" training efforts in both rural and urban areas, as
well as redirecting more than $3 million from the State Training
and Employment Program (STEP) fund back to the State for use in
other industries.
Co-Chair Green inquired as to the relation between this bill and
the funding for the proposed King Career Center.
Commissioner O'Claray responded that the King Career Center
would likely receive funding in the FY 07 Capital Budget for a
pilot program and this funding stream would sustain those
programs beyond the pilot period.
Co-Chair Wilken had received comments regarding this bill as a
"union/non-union" issue. He had directed those concerns to
Senator Therriault's office, and hoped Senator Therriault had
addressed those matters.
4:11:32 PM
Senator Bunde reported that the amendment adopted in the Senate
Labor & Commerce Committee offered the opportunity for any non-
profit corporation to apply for funding for training programs
under this bill.
Co-Chair Green asked if that was the language specified on page
2, line 12.
Senator Bunde affirmed.
4:12:24 PM
Co-Chair Wilken was aware of concerns that this bill would
divert monies away from the unemployment insurance (UI) fund. He
asked if UI benefits would be fully funded.
Commissioner O'Claray predicted 20 years of continual growth in
the State's economy, with new employees' UI contributions being
added to the fund along with existing employees'. The affect of
this bill would be "minimal", and would not have an adverse
affect on employers' rates, as the fund is supported by employee
contributions.
Senator Olson asked regarding training of rural residents.
Commissioner O'Claray speculated that approximately 40 percent
of the participants involved in pipeline training in Fairbanks
in recent years were residents of Rural Alaska. He recounted
that AWP trains primarily in rural areas.
Senator Olson inquired where the training had occurred, other
than King Career Center.
Commissioner O'Claray would provide the requested information.
Senator Olson asked if dormitory facilities were available at
the training locations.
Commissioner O'Claray informed that many of the facilities
provide housing for the trainees.
4:15:06 PM
Co-Chair Green asked online testifiers to abbreviate their
testimony in light of the time constraints.
4:15:44 PM
MIKE ANDREWS, Director, Alaska Works Partnership Inc., had
provided a map [copy not provided] indicating the regions where
AWP had conducted training. He urged support for the bill. He
qualified that AWP was formed as another avenue for people to
receive training outside of the traditional union membership.
The two entities are symbiotic, not competitive, and for that
reason, this bill should not be viewed as a "union/non-union"
matter.
4:17:37 PM
JOHN BITNEY, Lobbyist, Alaska State Homebuilders Association,
testified in support of the bill. The Association is not a union
group, but supportive of the bill as "a rising tide floats all
boats". He hoped his Association would be included in the annual
reporting requirements contained in the bill.
4:18:59 PM
RICHARD CATTANACH, Executive Director, Associated General
Contractors, testified via teleconference from an offnet
location in support of the bill.
4:19:21 PM
JAY QUAKENBUSH, President, Building and Construction Trades,
testified via teleconference from Fairbanks and urged support of
the bill. He recognized the potential future natural gas
pipeline as a monumental construction project, and warned that
"our borders are open" for out-of-state workers to fill jobs in
Alaska. He exampled the thousands of workers who came from other
states to work on the construction of the Trans Alaska Pipeline
System (TAPS) and left the state upon completion. He understood
this bill as providing a "proactive" way of addressing
employment issues in Alaska.
4:20:54 PM
JIM LAITI, Business Manager, Pipefitters Local 375, testified
via teleconference from Fairbanks in support of the bill. He
identified demand for construction workers for the proposed
natural gas pipeline, TAPS maintenance, possible development of
the NPR-A area, and Alpine development. These projects
illustrate a need for more trained workers, and he urged support
of the bill.
4:21:56 PM
CLICK BISHOP, testified via teleconference from Fairbanks in
support of the bill.
4:22:26 PM
MIKE SAMSON, President, Samson Electric, testified via
teleconference from Anchorage. He is a member of the Associated
Building Contractors (ABC) and dedicated to the training
process, but was concerned that ABC may not be included in the
program. Neither Samson Electric nor ABC has received any
funding under the STEP program for their training practices. He
would support an amendment to specifically include ABC along
with AWP.
4:24:33 PM
BILL WATTERSON, President, Watterson Construction, testified via
teleconference from Anchorage. His company employs approximately
200 people, and more than 98 percent of payroll checks are
written to Alaska residents. He opined that trained Alaskan
workers are better employees than "boomers" that come to the
state to work for short periods. He informed that over 35
percent of people employed by his company as craft workers are
members of ethnic minority groups. He would support the bill if
the employer was allowed to designate which training program
their contribution would fund.
4:26:40 PM
JULIE AUNE, Vice President, AAA Fence, testified via
teleconference from Anchorage. She represents a small, family
owned company with no means to train employees as there are no
specialty training programs. She would like to be able to chose
the training provider if her company is contributing financially
in any way.
4:28:38 PM
MIKE SEXTON, Executive Director, Mechanical Contractors of
Fairbanks, testified via teleconference from Fairbanks in
support of the bill, and encouraged its passage.
4:29:12 PM
WENDY REDMAN, University of Alaska, testified via teleconference
from Fairbanks in support of the bill. The University does not
have the capacity to provide this type of training, and has
therefore partnered with Alaska Works and ABC to develop
training programs.
4:30:10 PM
REBECCA LOGAN, President, Associated Building and Contractors
(ABC) of Alaska, testified via teleconference from Anchorage.
She commented that ABC supports the concept of the bill, but
does not support the "delivery". She considered the training
contract that this legislation proposed to award solely to AWP a
"procurement" issue that was not open to the competitive bidding
process that other State grants are subject to.
4:31:00 PM
Co-Chair Green asked if a restriction would be placed on
awarding funds to a non-profit entity other than Alaska Works.
Commissioner O'Claray replied that there was no such
prohibition. The aforementioned amendment adopted in the Senate
Labor & Commerce Committee substitute clarified that issue.
Co-Chair Green furthered, asking if a group of companies would
have to form a nonprofit training center to qualify for funding.
4:31:41 PM
Senator Bunde responded that a consortium of building
contractors would need a non-profit entity to receive funding
monies, rather than the State awarding training funds to the
construction company directly.
Co-Chair Green informed that she would support the bill only if
she could be assured that private companies would be able to
organize to receive funding for their collective training
practices.
Commissioner O'Claray guaranteed this bill was developed to be
non-partisan in regard to the union/non-union issue. He asserted
that there are many people to train, and the bill endeavors to
encompass as many employees as possible.
Co-Chair Green appreciated Commissioner O'Claray's "positive
attitude".
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, CSSB 309(L&C) was REPORTED from
Committee with two fiscal notes from the Department of Labor and
Workforce Development: fiscal note #1 in the amount of
$5,043,300, and fiscal note #2 for $247,700.
| Document Name | Date/Time | Subjects |
|---|