Legislature(2021 - 2022)BELTZ 105 (TSBldg)

05/17/2022 09:00 AM Senate LABOR & COMMERCE

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Audio Topic
12:35:39 PM Start
12:36:12 PM SB232
12:50:16 PM HB132
12:58:37 PM Confirmation Hearing
03:05:03 PM HB132
03:18:10 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to a Call of the Chair --
-- Please Note Time Change --
Bills Previously Heard/Scheduled:
+= SB 232 INTELLECTUAL PROPERTY OF EMPLOYEES TELECONFERENCED
Heard & Held
+= HB 132 SCHOOL APPRENTICESHIP PROGS; TAX CREDITS TELECONFERENCED
Heard & Held
**Streamed live on AKL.tv**
        HB 132-SCHOOL APPRENTICESHIP PROGS; TAX CREDITS                                                                     
                                                                                                                                
12:50:16 PM                                                                                                                   
CHAIR COSTELLO announced  the consideration of CS  FOR HOUSE BILL                                                               
NO.  132(FIN)  "An  Act  relating   to  technical  education  and                                                               
registered apprenticeships."                                                                                                    
                                                                                                                                
[SCS CSHB 132(EDC) was before the committee.]                                                                                   
                                                                                                                                
12:50:29 PM                                                                                                                   
CHAIR  COSTELLO  moved  to  adopt Amendment  1,  work  order  32-                                                               
LS0476\F.1.                                                                                                                     
                                                                                                                                
                                                 32-LS0476\F.1                                                                  
                                                        Klein                                                                   
                                                     5/16/22                                                                    
                                                                                                                                
                                                                                                                                
                         AMENDMENT 1                                                                                        
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                  BY SENATOR COSTELLO                                                                 
          TO:  SCS CSHB 132(EDC)                                                                                                
                                                                                                                                
                                                                                                                                
    Page 6, following line 22:                                                                                                  
          Insert a new subsection to read:                                                                                      
               "(e)  A contract under this section must                                                                         
          allow an apprentice  enrolled in an apprenticeship                                                                    
          program under 29 U.S.C. 50  - 50c and the employer                                                                    
          of  the  apprentice  to compete  for  construction                                                                    
          projects and  may not require that  the apprentice                                                                    
          or  employer  be  a   signatory  to  a  collective                                                                    
          bargaining agreement."                                                                                                
                                                                                                                                
SENATOR REVAK objected for discussion purposes.                                                                                 
                                                                                                                                
12:50:44 PM                                                                                                                   
KATIE  MCCALL,   Staff,  Senator   Mia  Costello,   Alaska  State                                                               
Legislature,  Juneau, Alaska,  explained that  Amendment 1  would                                                               
insert a  new subsection,  the intent  of which  was to  allow an                                                               
apprentice  enrolled  in  an  apprenticeship  program  and  their                                                               
employer to compete for construction  projects without being part                                                               
of a collective bargaining agreement.                                                                                           
                                                                                                                                
12:51:58 PM                                                                                                                   
At ease                                                                                                                         
                                                                                                                                
12:52:14 PM                                                                                                                   
CHAIR COSTELLO  reconvened the  meeting and  asked Representative                                                               
Fields to comment on Amendment 1.                                                                                               
                                                                                                                                
12:52:21 PM                                                                                                                   
REPRESENTATIVE  ZACK FIELDS,  Alaska  State Legislature,  Juneau,                                                               
Alaska,  speaking as  co-chair of  the House  Labor and  Commerce                                                               
Committee  that sponsored  HB 132,  stated that  he could  answer                                                               
questions about Amendment  1, but he would not speak  in favor or                                                               
against it  because it  touched on his  private sector  work with                                                               
the Anchorage School District.                                                                                                  
                                                                                                                                
12:52:54 PM                                                                                                                   
SENATOR REVAK asked where the bill goes next.                                                                                   
                                                                                                                                
CHAIR COSTELLO replied it goes to Senate Finance.                                                                               
                                                                                                                                
REPRESENTATIVE   FIELDS  advised   that   the  Senate   Education                                                               
Committee removed  the tax credit,  which may eliminate  the need                                                               
for the finance referral.                                                                                                       
                                                                                                                                
SENATOR  REVAK  asked  for  a   plain  explanation  of  what  the                                                               
amendment would do.                                                                                                             
                                                                                                                                
12:53:34 PM                                                                                                                   
REPRESENTATIVE  FIELDS  said  his   understanding  was  it  would                                                               
restrict school districts from using  state money awarded through                                                               
DEED  for  projects  where  a  school board  had  put  a  student                                                               
community  workforce  agreement  in   place.  He  explained  that                                                               
community  workforce agreements  were  similar  to project  labor                                                               
agreements.                                                                                                                     
                                                                                                                                
CHAIR COSTELLO said the intention  of the amendment was to expand                                                               
the scope of application to provide more opportunities.                                                                         
                                                                                                                                
12:54:11 PM                                                                                                                   
At ease                                                                                                                         
                                                                                                                                
12:58:11 PM                                                                                                                   
CHAIR COSTELLO reconvened the meeting  and advised that she would                                                               
recess  the  committee to  provide  members  time to  review  the                                                               
amendment and bill, HB 132.                                                                                                     
        HB 132-SCHOOL APPRENTICESHIP PROGS; TAX CREDITS                                                                     
                                                                                                                                
3:05:03 PM                                                                                                                    
CHAIR  COSTELLO returned  attention to  HB 132  and asked  Alicia                                                               
Maltby to provide her comments on the proposed Amendment 1.                                                                     
                                                                                                                                
3:05:37 PM                                                                                                                    
ALICIA  MALTBY,  President  and   CEO,  Associated  Builders  and                                                               
Contractors  (ABC)  of  Alaska,  Anchorage,  Alaska,  shared  the                                                               
history  of  the association  and  relayed  that unions  recently                                                               
received  approval  for  community workforce  agreements  on  all                                                               
Anchorage  School District  construction  projects. She  reported                                                               
that  75  percent  of  the   Alaskan  construction  workforce  is                                                               
nonunion and  said these workers  would be ineligible to  work on                                                               
those projects  under this agreement.  She cited an  example from                                                               
just one  contractor member who  won and completed  the following                                                               
projects:                                                                                                                       
   • $12 million for Chester Valley school renovation                                                                           
   • $15 million for Girdwood K-8 remodel                                                                                       
   • $8 million for Rabbit Creek Elementary renewal                                                                             
   • $60 million Airport Heights school addition and                                                                            
   • $11.7 million for Eagle River earthquake recovery projects.                                                                
                                                                                                                                
She pointed out  that the contractor, the  Alaskan employees, and                                                               
the Alaskan  apprentices that  worked on  these projects  will no                                                               
longer  be   eligible  to  work  on   Anchorage  School  District                                                               
projects.                                                                                                                       
                                                                                                                                
MS.  MALTBY  stated support  for  Amendment  1 that  says  school                                                               
districts  must allow  apprentices and  their employers  that are                                                               
not in  a bargaining unit  to work  on school projects.  It means                                                               
that  state  funding may  not  be  used to  discriminate  against                                                               
apprentices who  choose not to  join a  union hall. She  said the                                                               
apprenticeship program  should be fair  and open to all  and this                                                               
amendment will  allow for that.  She urged the committee  to pass                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
3:08:40 PM                                                                                                                    
CHAIR  COSTELLO related  her understanding  that  nothing in  the                                                               
amendment or bill  would prohibit ABC from using  a project labor                                                               
agreement;  it's  just not  a  mandate.  She  asked if  that  was                                                               
correct.                                                                                                                        
                                                                                                                                
MS. MALTBY  answered yes;  contractors may  put a  PLA on  any of                                                               
their projects,  but most  ABC member  contractors are  not doing                                                               
so.                                                                                                                             
                                                                                                                                
CHAIR  COSTELLO  discerned  there  were no  questions  and  asked                                                               
Alicia Siira to comment on Amendment 1.                                                                                         
                                                                                                                                
3:09:32 PM                                                                                                                    
ALICIA SIIRA, Executive  Director, Associated General Contractors                                                               
(AGC) of Alaska,  Anchorage, Alaska, advised that AGC  is a trade                                                               
association that represents both  union and nonunion contractors.                                                               
They support  Amendment 1,  and do not  support a  requirement to                                                               
use a project  labor agreements on publicly  funded projects. AGC                                                               
contractors are, however, free to use  PLAs if they feel it would                                                               
be  a good  tool  for  a particular  project.  She concluded  her                                                               
comments stating support for both the bill and amendment.                                                                       
                                                                                                                                
CHAIR  COSTELLO  asked  Representative Spohnholz  to  comment  on                                                               
Amendment 1 as co-chair of  the House Labor and Commerce Standing                                                               
Committee that sponsored HB 132.                                                                                                
                                                                                                                                
3:11:05 PM                                                                                                                    
REPRESENTATIVE IVY  SPOHNHOLZ, Alaska State  Legislative, Juneau,                                                               
Alaska,  speaking as  co-chair of  the House  Labor and  Commerce                                                               
Committee that sponsored HB 132,  said she appreciates the intent                                                               
but believes  the amendment would prevent  local communities from                                                               
exercising  local   control.  The  constitution   supports  local                                                               
control  and she  and Representative  Fields  believe that  local                                                               
communities and jurisdictions should  have the option of entering                                                               
into  project  labor agreements  just  as  contractors have  that                                                               
choice.  She  said  PLAs  ensure  that  the  people  who  oversee                                                               
apprentices are well-trained and will  receive a living wage. She                                                               
stressed that  nothing in the legislation  requires participation                                                               
in a PLA,  but it would ensure that local  jurisdictions have the                                                               
option of  entering into a  PLA. She  concluded that she  did not                                                               
support Amendment 1, because it  would undermine the intention of                                                               
the bill.                                                                                                                       
                                                                                                                                
REPRESENTATIVE FIELDS, Alaska  State Legislative, Juneau, Alaska,                                                               
speaking as  co-chair of the  House Labor and  Commerce Committee                                                               
that sponsored  HB 132,  restated that he  would not  discuss the                                                               
amendment because it touches on his private sector work.                                                                        
                                                                                                                                
3:12:43 PM                                                                                                                    
CHAIR COSTELLO  offered her understanding that  projects that use                                                               
local  funds would  fall under  the  student community  workforce                                                               
agreement.   She  said   the  amendment   specifically  addresses                                                               
projects that  use state funds  and both the  Associated Builders                                                               
and   Contractors  (ABC)   of  Alaska   and  Associated   General                                                               
Contractors (AGC) of  Alaska said they had the option  of using a                                                               
project labor  agreement. She  asked Representative  Spohnholz if                                                               
she wanted to clarify her remarks related to the funding source.                                                                
                                                                                                                                
3:13:15 PM                                                                                                                    
REPRESENTATIVE  SPOHNHOLZ said  she  and  her co-chair  generally                                                               
believe in local communities being  able to make decisions at the                                                               
local  level;  that  state  funding is  meant  to  augment  local                                                               
funding for  those projects; and  that it is important  to ensure                                                               
that communities continue to have  the option to advance projects                                                               
using a PLA  if they believe it  is in their best  interest to do                                                               
so. She  underscored the emphasis  the state  constitution places                                                               
on local control to the maximum extent possible.                                                                                
                                                                                                                                
CHAIR COSTELLO asked if she  was aware of any problems associated                                                               
with the  construction projects for  the elementary  schools that                                                               
Ms. Maltby  mentioned that  would have  been addressed  had there                                                               
been a project labor agreement.                                                                                                 
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  replied she didn't have  any comment on                                                               
specific  projects  other than  that  she  attended Rabbit  Creek                                                               
Elementary School and was pleased to see that work was done.                                                                    
                                                                                                                                
3:14:19 PM                                                                                                                    
SENATOR STEVENS asked for examples  of projects he might be aware                                                               
of that would have problems under the proposed amendment.                                                                       
                                                                                                                                
SENATOR GRAY-JACKSON  cited her positive experience  with project                                                               
labor agreements and  that the community had been  well served by                                                               
qualified  and well  paid workers  on these  projects. She  would                                                               
hate to see anything prevent the use of PLAs.                                                                                   
                                                                                                                                
CHAIR COSTELLO  related her understanding that  Amendment 1 would                                                               
allow companies  that don't  require union  membership to  bid on                                                               
projects.  She  referenced  the   list  of  projects  Ms.  Maltby                                                               
mentioned that one contractor completed  for the Anchorage School                                                               
District and others.                                                                                                            
                                                                                                                                
3:16:06 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:17:50 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting.                                                                                          
                                                                                                                                
[CHAIR COSTELLO held HB 132 in committee.]                                                                                      

Document Name Date/Time Subjects
HB 132 Amendment F.1.pdf SL&C 5/17/2022 9:00:00 AM
HB 132