Legislature(2019 - 2020)BARNES 124
02/27/2019 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Overview(s): Department of Labor by Commissioner Tamika L. Ledbetter | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 27, 2019
3:16 p.m.
MEMBERS PRESENT
Representative Gabrielle LeDoux, Co-Chair
Representative Adam Wool, Co-Chair
Representative Zack Fields
Representative Sara Hannan
Representative Louise Stutes
Representative Josh Revak
Representative David Talerico
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
OVERVIEW(S): DEPARTMENT OF LABOR BY COMMISSIONER TAMIKA L.
LEDBETTER
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
TAMIKA L. LEDBETTER, PhD, Commissioner-Designee
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Presented an overview of the Alaska
Department of Labor and Workforce Development.
PATSY WESTCOTT, Director
Division of Employment and Training Services
Alaska Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the overview of
the DOLWD.
PALOMA HARBOUR, Director
Division of Administrative Services
Alaska Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the overview of
the DOLWD.
GREY MITCHELL, Director
Division of Workers' Compensation
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the overview of
the DOLWD.
NELSON SAN JUAN, Deputy Commissioner
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the overview of
the DOLWD.
ACTION NARRATIVE
3:16:50 PM
CO-CHAIR ADAM WOOL called the House Labor and Commerce Standing
Committee meeting to order at 3:16 p.m. Present at the call to
order were Representatives Hannan, Fields, Revak, Stutes,
LeDoux, and Wool. Representative Talerico arrived as the
meeting was in progress.
^OVERVIEW(S): DEPARTMENT OF LABOR BY COMMISSIONER TAMIKA L.
LEDBETTER
OVERVIEW(S): DEPARTMENT OF LABOR BY COMMISSIONER TAMIKA L.
LEDBETTER
3:17:47 PM
CO-CHAIR WOOL announced that the only order of business would be
an overview of the Alaska Department of Labor and Workforce
Development by Commissioner-Designee Dr. Tamika Ledbetter.
3:18:18 PM
TAMIKA L. LEDBETTER, PhD, Commissioner-Designee, Department of
Labor and Workforce Development (DLWD), gave a brief overview of
her background, education, and military service. She said she
came to Alaska with the Air Force in 2003 and served at
Elmendorf Air Force Base. She said she has two sons serving in
the United States Marine Corps. She also discussed her teenage
daughter's career aspirations. She said she presented this
information to offer insight into why she is passionate about
workforce development, specifically career and technical
education.
3:20:56 PM
COMMISSIONER LEDBETTER said she started working with DLWD in
2007. She said she was hired as a career development specialist
with the Division of Employment and Training Services. Two
years later, she said, she became manager of the Mat-Su Job
Center [part of the Alaska Job Center Network] in Wasilla, a job
she held for eight years. She said she was then promoted to
regional manager of the Anchorage/Mat-Su Economic Region. She
added that her responsibilities included oversight over all job
centers in the region as well as all workforce development
programs and services provided.
3:21:33 PM
COMMISSIONER LEDBETTER began her PowerPoint presentation [hard
copy included in the committee packet]. She stated that DLWDs
mission is "to provide safe and legal working conditions and to
advance opportunities for employment of Alaskans." She said she
wanted the department "to connect Alaskans with job
opportunities in this economy and also to be strategic in
identifying workforce development needs of each region."
Commissioner Ledbetter said she wants the department to "build
up" regional workforces so that individuals will not be forced
to leave their region to find work. "Part of our challenge,"
she said, is to inform young Alaskans about in-state
opportunities, especially opportunities in the regions in which
they reside. She said it will be vital to work with the public
and private sector, as well as educational partners, in order to
direct the department's limited resources toward training that
"actually leads to employment." She said she believes in her
ability to champion the governor's message that "Alaska is open
for business." She said she expects the leadership of the
department to embody that message.
COMMISSIONER LEDBETTER said she interprets "Alaska is open for
business" to mean that the department will direct everything it
does "to ensure all workers and employers are being served
appropriately and effectively." She said the department's key
priorities include developing an Alaskan workforce for Alaskan
jobs. She stressed the importance of "[growing] our own" and
ensuring Alaskan workers get first priority of jobs available
and created in Alaska." She said another key priority is to
monitor and coordinate career and technical education. She said
any career and technical education plan that does not include
DLWD is "a failed plan." She said it is another key priority to
protect Alaskan workers through consultation and enforcement, as
well as income replacement for injured, disabled, and unemployed
workers.
3:24:20 PM
COMMISSIONER LEDBETTER addressed slide 3, titled "Department
Organizational Chart." She pointed out the tripartite structure
of the department below the commissioner's office with each
section focused on one of the department's key priorities:
Protect Workers, Workforce Development, and Income Replacement.
COMMISSIONER LEDBETTER addressed slide 4, titled "Research and
Analysis." She extolled the department's Research and Analysis
section and the way it presents data nonpolitically. She said
this data informs workforce development and is very useful.
3:26:20 PM
COMMISSIONER LEDBETTER introduced the Alaska Relations Agency's
core goal "to promote harmonious and cooperative relations
between government and its employees." She said the agency
resolves disputes between organized labor and public employers.
COMMISSIONER LEDBETTER addressed slide 5, titled "Alaska
Workforce Investment Board." She said she is very excited about
the board, which "provides policy oversight of state and
federally funded job training and vocational education
programs." She added that the board provides an annual report
to the legislature on the performance of the state's training
programs. She said this allows the department to learn from the
past and coordinate efforts moving forward to develop a
workforce plan that works for both private and public
industries.
3:28:14 PM
REPRESENTATIVE LEDOUX asked how many people each year
participate in job training and vocational education through
DLWD.
3:28:54 PM
PATSY WESTCOTT, Director, Division of Employment and Training
Services, Department of Labor and Workforce Development, said
the department has those numbers and she can get them to the
committee at a later time.
COMMISSIONER LEDBETTER added that her case load was "very high"
when she worked as a career development specialist.
3:30:13 PM
COMMISSIONER LEDBETTER addressed slide 6, titled "Alaska
Vocational Technical Center (AVTEC)." She explained that AVTEC
provides "market-driven vocational and technical training to
prepare Alaska residents for jobs." She said that, in fiscal
year 2018, AVTEC had 197 long-term program enrollees and 1,069
short-term program enrollees. She pointed out that AVTEC has a
maritime training center that is currently working with the
University of Alaska on "a domestic center of maritime
excellence delegation." She listed other training opportunities
offered by AVTEC. She said, as of fiscal year 2018, AVTEC's
completion rate was 92 percent.
3:31:13 PM
REPRESENTATIVE STUTES asked what the difference is between a
long-term and short-term program.
PALOMA HARBOUR, Director, Division of Administrative Services,
Department of Labor and Workforce Development, defined a long-
term program as lasting longer than six weeks. She said a
majority of AVTEC's programs are nine months in length.
3:31:52 PM
CO-CHAIR WOOL asked about how AVTEC keeps in touch with program
graduates to verify their employment status. He asked what the
long-term employment rate is for graduates.
COMMISSIONER LEDBETTER answered that she would have to get back
to the committee with accurate numbers.
3:32:29 PM
COMMISSIONER LEDBETTER addressed slide 8, titled "Employment and
Training Services." She introduced the mission of the Division
of Employment and Training Services and spoke to its efforts to
develop workforces for in-demand industries and occupations.
She said the division promotes activities and develops
partnerships that strengthen training, recruitment, and
retention of workers in rural Alaska. It serves "priority
populations" such as young people, veterans, Alaska Natives, and
transitioning servicemembers. She said the division partners
with private and public organizations to provide outreach
services to youth, address barriers to employment, assist with
high school completion, and provide career awareness and
mentorship. She added that the division promotes economic
stability to unemployed Alaskans through unemployment insurance
that allows them to purchase food and fuel while they seek
employment.
3:33:54 PM
REPRESENTATIVE FIELDS recalled that Alaska has one of the
nation's lowest levels of unemployment insurance in terms of the
amount of money that unemployed workers receive. He asked if
Commissioner Ledbetter knew where Alaska ranks compared to other
states.
COMMISSIONER LEDBETTER said she did not know offhand but would
follow up later with the committee.
3:34:30 PM
COMMISSIONER LEDBETTER addressed slide 9, titled "Labor
Standards and Safety." She explained that the Division of Labor
Standards and Safety provides enforcement, training, and
monitoring of laws governing occupational safety and health,
wages and hours, child labor, and electrical and mechanical
codes. She said the division supports the Alaska Safety
Advisory Council, which is responsible for the governor's annual
safety conference. She said the division has taken a
consultative approach to employer outreach in order to ensure
employees do not "fall into safety issues."
3:35:12 PM
REPRESENTATIVE FIELDS asked for confirmation that the number of
division staff dedicated to monitoring wages and hours has
remained the same since the early 1990s. He noted that this
would represent a "huge decline" in the number of staff per
capita as the state's population has risen in that time.
COMMISSIONER LEDBETTER said she did not know the answer but that
the department would research it.
CO-CHAIR WOOL reminded members of the committee that
Commissioner Ledbetter would return to speak before the
committee in a week.
3:36:30 PM
COMMISSIONER LEDBETTER addressed slide 10, titled "Vocational
Rehabilitation." She said the Division of Vocational
Rehabilitation (DVR) assists Alaskans with disabilities to
secure and maintain employment. She said the division provides
economic stability to Alaskans with disabilities through Social
Security disability determinations. She pointed out that, in
2018, the average wage of individuals "exiting" DVR was $15.25
per hour, which is $5.41 per hour more than the Alaska hourly
minimum wage. She added that the nature of individuals'
disabilities is more complex today than it was years ago,
meaning DVR has had to adopt a more complex approach to
assisting these individuals. She said, despite these
challenges, there are "several success stories" of individuals
persevering despite disabilities.
3:37:50 PM
REPRESENTATIVE LEDOUX, referencing slide 10, addressed DVR's
goal of providing "economic stability to Alaskans with
disabilities through Social Security disability determinations."
She asked whether the federal government would provide this
service if the State of Alaska did not.
3:38:19 PM
MS. HARBOUR answered "yes" and described the process through
which the Social Security Administration would assign the task
to out-of-state adjudicators. She said that a disability
adjudicator in another state "wouldn't know the issues facing
those people ... because Alaska is so unique." She explained
that Alaskans who require support would be better served by in-
state adjudicators.
3:39:22 PM
COMMISSIONER LEDBETTER addressed slide 11, titled "Workers'
Compensation." She said the Division of Workers Compensation
helps Alaskans with employment-related injuries and illnesses
return to work. She said there are several commissions and
funds that make up the division. She highlighted the Workers'
Compensation Appeals Commission, which she said closed 84
percent of its cases within twelve months, however "a
significant percentage" of the commissions decisions are now
"pending before the Supreme Court." She asserted that the
division Medical Services Review Committee is focused on
revising the medical fee schedule to lower workers compensation
medical costs in Alaska.
3:40:25 PM
REPRESENTATIVE HANNAN asked if any of the Division of Worker's
Compensation's funds listed on slide 11 have been redirected in
the governor's proposed fiscal year 2020 budget from designated
fund status to "the new super-piled fund that has swept in, in
some agencies." She mentioned the Fisherman's Fund in
particular.
3:40:54 PM
MS. HARBOUR answered that none of the Division of Worker's
Compensation's funds have been changed to unrestricted general
funds in the governor's proposed budget. She added that the
funds had been presented in some of the department's budget
presentations as "general funds added together. Each fund, she
clarified, is kept in individual, designated fund accounts.
3:41:19 PM
REPRESENTATIVE FIELDS commented on the positive trend of reduced
on-the-job injuries. He asked Commissioner Ledbetter how the
department seeks to continue this trend as well as how it plans
to address medical costs in order to make workers compensation
more affordable for employers without taking away benefits from
workers.
COMMISSIONER LEDBETTER deferred to Grey Mitchell, Director of
the Division of Workers' Compensation.
3:42:14 PM
GREY MITCHELL, Director, Division of Workers' Compensation,
Department of Labor and Workforce Development, said the division
is having conversations and weighing various ideas. He said he
has no specific answer to Representative Fields' question. He
noted that healthcare costs in Alaska are among the highest in
the country. He said his division is also looking forward to
working closely with the Division of Labor Standards and Safety,
which seeks to avoid workplace accidents. He said one of the
plans in the works is to combine the Division of Workers'
Compensation with the Division of Labor Standards and Safety,
which he said would hopefully "produce some efficiencies" and
allow for "a better approach."
3:44:22 PM
REPRESENTATIVE HANNAN asked Mr. Mitchell to speak to
Commissioner Ledbetter's comment about pending workers'
compensation cases before the Supreme Court.
MR. MITCHELL said there are "probably a few reasons for that."
He noted that decisions from the Workers' Compensation Appeals
Commission are appealed to the Supreme Court at "a fairly high
rate," nearly 50 percent. He said a backlog has amassed and
cited the length of time it takes for issues "to reach the
Supreme Court level." He said there can be "a lag" between the
Appeals Commission's decision and when "enough legal energy is
developed" to pursue a case to the Supreme Court. He explained
that many issues coming to the Supreme Court now are "the result
of legislative changes that happened back in 2005."
3:46:04 PM
REPRESENTATIVE HANNAN said it was her understanding that a
recent change to worker's compensation law allowed sole
proprietors and subcontractors to not carry worker's
compensation. She said the appeals board" is finding
contractors responsible for subcontractors not carrying worker's
compensation despite the change to the law. She asked Mr.
Mitchell to confirm this and asked what to expect in the future.
MR. MITCHELL suggested that Representative Hannan was alluding
to House Bill 79 [passed in the Thirtieth Alaska State
Legislature], which established a new definition for
"independent contractor." He said many businesses had
previously misclassified employers as independent contractors to
avoid workers' compensation, unemployment insurance taxes, "and
other requirements that go along with labor. He said the
intention of the legislation was to limit the misclassification
of workers as independent contractors. He explained that the
new definition only went into effect in October 2018 so it will
take "a couple years" before the effects can be measured. He
said there has been an increased focus from insurers to ensure
employers are correctly classifying employees. He said this is
affecting construction contractors due to their reliance on
subcontracts. Sometimes, he said, subcontractor and second-tier
subcontractor arrangements are informal and involve inadequate
record keeping, which can lead to difficulties with insurers.
He said contractor groups are realizing they need to improve the
system with which they document their relationships with
subcontractors.
3:50:39 PM
REPRESENTATIVE FIELDS summarized what he felt were positive
aspects of House Bill 79. He asked Mr. Mitchell to describe the
public policy and worker safety implications of employers
misclassifying their employees.
MR. MITCHELL answered that employee misclassification creates an
unfair competitive advantage for businesses willing to flout the
rules. He added that it also creates significant risks for
workers who may become injured through employment. These
workers, he said, do not have access to the same protective
coverage as correctly classified employees. He said many
healthcare policies do not cover accidents that happen on the
job.
3:54:09 PM
MS. HARBOUR addressed slide 12, titled "FY2020 Governor Amended
Budget: $148,287.1." She expounded on DLWDs proposed budget.
She mentioned that around half the budget - $75.9 million - is
federal funds.
MS. HARBOUR reported three key highlights for the department in
the governor's amended budget. She said the first is reduced
travel resulting in general fund reduction of $146,700. She
said the second was the cessation of an agreement with the
Alaska Mental Health Trust Authority that had supported a
statewide re-entry coordinator position. She said the
department determined it could continue that work by utilizing
federal funds and existing Job Center staff. She said the third
highlight was increased funding to the Technical and Vocational
Education Program (TVEP) and to AVTEC, though the AVTEC increase
is offset by an equal reduction in undesignated general fund
monies.
3:55:58 PM
REPRESENTATIVE FIELDS expressed concern for the elimination of
the statewide re-entry coordinator position eliminated in the
governor's proposed budget. He asked that the department return
to the committee with assurance it can provide adequate support
for those re-entering society after incarceration.
COMMISSIONER LEDBETTER assured Representative Fields that the
new approach will improve the level of service offered by the
department.
3:57:30 PM
REPRESENTATIVE HANNAN asked for clarification on the increased
funding for TVEP and AVTEC.
3:57:54 PM
MS. HARBOUR explained that the amount in the fund changes every
year and varies based on increases or decreases in jobs and
wages. She said the department utilizes a projection to
determine distribution. She said the department had projected
larger wage reductions in past years than were experienced. She
said this meant a higher fund balance to be dispersed.
REPRESENTATIVE HANNAN expressed concern for the reduction in
undesignated general funds for AVTEC. She said she does not
want to create a scenario where AVTEC funding in two years will
not be enough to meet the needs of the state.
MS. HARBOUR assured Representative Hannan that she has been
conservative in her projections. She expressed confidence in
the department's approach.
4:00:02 PM
COMMISSIONER LEDBETTER addressed slide 13, titled "Vision for
the Department." She reiterated goals for the department and
re-emphasized efforts to ensure "Alaska is open for business,"
to ensure Alaskans are prepared for jobs in their communities,
and to ensure the most efficient and effective delivery of
services. She said the department wants to engage with existing
industries and attract new ones to Alaska. She said the
department wants to connect young Alaskans early to in-state job
opportunities. She praised DLWD as a wonderful department to
work for. She praised the department's employees. She said her
overall vision for the department is to build an internal
workforce that will have the public's trust and to deliver
services in a fashion that meets the needs of every Alaskan.
She restated the importance of engaging public and private
partners to accomplish these goals. She expressed hope that a
locally-grown workforce will drive the economy.
4:02:24 PM
REPRESENTATIVE HANNAN said Governor Michael J. Dunleavy recently
repealed an administrative order pertaining to apprenticeship
programs. She asked about the department's commitment to
training young Alaskans to work in the trades.
4:03:21 PM
MS. HARBOUR said the department had found previous
apprenticeship reporting requirements too burdensome for
contractors, employers, and department staff. She expressed
confidence that the department could effectively work toward
employing apprentices without the burdensome process.
COMMISSIONER LEDBETTER said the department's goal is to ensure
opportunities for individuals who want to work. She said she
wants that process to be efficient and not cumbersome to
employers. She restated the goal of connecting young workers
and apprentices with well-paying jobs.
4:04:53 PM
REPRESENTATIVE FIELDS stated for the record that his private
sector job is with [Laborers International Union of North
America (LiUNA)]. He offered a historical summary of the
apprenticeship requirements repealed by Governor Dunleavy. He
said the repeal raises concerns because past administrations had
shown strong support for apprenticeships. He said Governor Bill
Walker's administration had established electronic certified
payroll for wage and hour work with contractors to facilitate
efficient recordkeeping. He said he takes issue with the notion
that collection of records is extremely burdensome.
4:06:52 PM
CO-CHAIR WOOL noted that many jobs in the state are filled by
out-of-state workers and observed that this is part of a trend.
Citing the state's high unemployment rate, he asked Commissioner
Ledbetter what her short-term goals were for increasing the
number of Alaskans filling those jobs.
4:08:01 PM
COMMISSIONER LEDBETTER described it as difficult to see the
high unemployment rate given current job openings. She said the
department's focus was to increase awareness of those jobs for
younger workers. She cited the importance of parents and elders
in assisting young people in getting their first jobs.
CO-CHAIR WOOL responded that he is an employer and good labor is
hard to find. He said he was hoping for more information about
department efforts to reach high schoolers and young adults. He
asked if young people know to seek work through the department.
COMMISSIONER LEDBETTER expressed that "we have ... a problem"
because of an antiquated understanding of how individuals seek
employment. She said the department and its job centers need to
be more proactive in reaching out to job seekers rather than
waiting for job seekers to make the first move.
4:10:54 PM
REPRESENTATIVE STUTES asked if the department has reached out to
the seafood industry. She expressed that the industry has found
it difficult to fill job vacancies and has even had to bring in
workers from outside the United States. She opined that there
is an opportunity to train Alaskans to do those jobs.
COMMISSIONER LEDBETTER deferred to Deputy Commissioner Nelson
San Juan.
4:12:06 PM
NELSON SAN JUAN, Deputy Commissioner, Department of Labor and
Workforce Development, said he has been working closely with
employers statewide and had met that morning with seafood
industry representatives to continue the effort to get Alaskans
trained and hired. He said there is a plan to create an
employer's forum to alleviate the shortage of workers in the
seafood industry.
4:12:49 PM
REPRESENTATIVE FIELDS asked if Commissioner Ledbetter is
committed to maintaining "Alaska hire requirements for the zone
of underemployment consistent with statute."
COMMISSIONER LEDBETTER said she would get back to the committee
with a specific answer. She said she is committed to every
Alaskan who desires employment. She restated the importance of
developing a workforce with qualified applicants for available
positions.
REPRESENTATIVE FIELDS specified that the "Alaska hire
requirements" to which he was referring are 90 percent Alaska-
hire for state-funded projects. He requested the committee
receive an answer in writing. He shared his understanding that
every administration except one has "sustained those
requirements" since they were enacted in the late 1980s.
COMMISSIONER LEDBETTER affirmed that it is a statutory
requirement.
4:14:40 PM
CO-CHAIR WOOL thanked Commissioner Ledbetter and her staff for
speaking before the committee.
4:15:14 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:15 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2019.Committees.House Labor and Commerce Overview Presentation.pdf |
HL&C 2/27/2019 3:15:00 PM |
Commerce |