02/21/2020 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB113 | |
| HB235 | |
| HB229 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 113 | TELECONFERENCED | |
| += | HB 24 | TELECONFERENCED | |
| += | HB 229 | TELECONFERENCED | |
| *+ | HB 235 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 21, 2020
3:19 p.m.
MEMBERS PRESENT
Representative Ivy Spohnholz, Chair
Representative Louise Stutes
Representative Zack Fields
Representative Sara Hannan
Representative Andi Story
MEMBERS ABSENT
Representative Mel Gillis
Representative Sara Rasmussen
COMMITTEE CALENDAR
HOUSE BILL NO. 113
"An Act relating to employment preferences for spouses and
children of veterans, disabled veterans, former prisoners of
war, members of the national guard, and deceased service
members."
- HEARD & HELD
HOUSE BILL NO. 235
"An Act relating to allocations of funding for the Alaska
Workforce Investment Board; and providing for an effective
date."
- HEARD & HELD
HOUSE BILL NO. 229
"An Act establishing the Alaska Health Care Transformation
Corporation; relating to an all-payer claims database; and
providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 24
"An Act relating to instruction in a language other than
English; and relating to limited teacher certificates."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: HB 113
SHORT TITLE: MILITARY FAMILY EMPLOYMENT PREFERENCE
SPONSOR(s): REPRESENTATIVE(s) JACKSON
03/27/19 (H) READ THE FIRST TIME - REFERRALS
03/27/19 (H) MLV, L&C
04/16/19 (H) MLV AT 1:00 PM GRUENBERG 120
04/16/19 (H) Heard & Held
04/16/19 (H) MINUTE(MLV)
04/18/19 (H) MLV AT 1:00 PM GRUENBERG 120
04/18/19 (H) -- MEETING CANCELED --
04/23/19 (H) MLV AT 1:00 PM GRUENBERG 120
04/23/19 (H) Moved CSHB 113(MLV) Out of Committee
04/23/19 (H) MINUTE(MLV)
04/24/19 (H) MLV RPT CS(MLV) NT 5DP 1NR
04/24/19 (H) DP: KOPP, JACKSON, TARR, TUCK, LEDOUX
04/24/19 (H) NR: THOMPSON
05/06/19 (H) L&C AT 3:15 PM BARNES 124
05/06/19 (H) -- MEETING CANCELED --
05/10/19 (H) L&C AT 3:15 PM BARNES 124
05/10/19 (H) Heard & Held
05/10/19 (H) MINUTE(L&C)
02/19/20 (H) L&C AT 3:15 PM BARNES 124
02/19/20 (H) Heard & Held
02/19/20 (H) MINUTE(L&C)
02/21/20 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 235
SHORT TITLE: AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS
SPONSOR(s): REPRESENTATIVE(s) WOOL
02/05/20 (H) READ THE FIRST TIME - REFERRALS
02/05/20 (H) L&C, FIN
02/21/20 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 229
SHORT TITLE: HEALTH INFORMATION/DATABASE/PUBLIC CORP.
SPONSOR(s): REPRESENTATIVE(s) SPOHNHOLZ
01/27/20 (H) READ THE FIRST TIME - REFERRALS
01/27/20 (H) L&C, FIN
02/20/20 (H) L&C AT 3:00 PM DAVIS 106
02/20/20 (H) Heard & Held
02/20/20 (H) MINUTE(L&C)
02/21/20 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE SHARON JACKSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided opening remarks and answered
questions during the hearing on HB 113, as prime sponsor.
PAM DAY, Classification Services Manager
Division of Personnel & Labor Relations
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
113.
DAN WAYNE, Attorney
Legislative Legal Services
Legislative Affairs Agency
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
113.
REPRESENTATIVE ADAM WOOL
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced HB 235 and
answered questions.
ASHLEY CARRICK, Staff
Representative Adam Wool
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation,
entitled "HB 235: Technical Vocational Education Program (TVEP)
Re-Authorization," on behalf of Representative Wool, prime
sponsor.
LENNON WELLER, Economist/Unemployment Insurance Actuary
Research & Analysis Section
Department of Labor & Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
235.
TERI COTHREN, Associate Vice President
Workforce Development
University of Alaska
Juneau, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation,
entitled "University of Alaska Technical Vocational Education
Program," during the hearing on HB 235.
SANDRA HEFFERN, Project Coordinator
Alaska Healthcare Transformation Project
Juneau, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation,
entitled "Alaska Healthcare Transformation Project," during the
hearing on HB 229.
NORM THURSTON, Executive Director
National Association of Health Data Organizations
Salt Lake City, Utah
POSITION STATEMENT: Provided testimony during the hearing on HB
229 and answered questions.
JOHN CULLEN, MD
Valdez Medical Clinic, LLC; and
Board Member, Alaska Academy of Family Physicians
Valdez, Alaska
POSITION STATEMENT: Provided testimony and answered questions
during the hearing on HB 229.
LAURA YOUNG, Executive Director
HealtheConnect Alaska
Anchorage, Alaska
POSITION STATEMENT: Provided testimony during the hearing on HB
229.
ACTION NARRATIVE
3:19:18 PM
CHAIR IVY SPOHNHOLZ called the House Labor and Commerce Standing
Committee meeting to order at 3:19 p.m. Representatives Stutes,
Fields, Hannan, Story, and Spohnholz were present at the call to
order.
HB 113-MILITARY FAMILY EMPLOYMENT PREFERENCE
3:20:23 PM
CHAIR SPOHNHOLZ announced that the first order of business would
be HOUSE BILL NO. 113, "An Act relating to employment
preferences for spouses and children of veterans, disabled
veterans, former prisoners of war, members of the national
guard, and deceased service members."
3:23:34 PM
REPRESENTATIVE SHARON JACKSON, Alaska State Legislature, as
prime sponsor, stated the purpose of HB 113 is to extend hiring
preferences to military spouses, which would allow them to
receive an interview for a job that hires by a numerical point
system. This will enable the educated, unemployed and
underemployed [military] spouses to work in the community. She
said this is a bill that will provide them with more
opportunities.
3:24:36 PM
CHAIR SPOHNHOLZ moved to adopt Amendment 1, [labeled 31-
LS0715\S.1, Wayne, 2/19/20], which read as follows:
Page 6, line 29:
Delete "of this subsection;"
Insert "or (1)(A)(iii) of this subsection, or the
spouse or dependent child of a person who is in active
service or on furlough from active service under
(1)(A)(i) of this subsection;"
REPRESENTATIVE STUTES objected for the purpose of discussion.
REPRESENTATIVE JACKSON deferred to Pam Day.
3:25:18 PM
PAM DAY, Classification Services Manager, Division of Personnel
and Labor Relations, Department of Administration, provided a
brief background on the state's recruitment system. She said in
July 2000, the state stopped scoring applications and switched
to a vacancy-based recruitment system, which changed how
preferences are applied. If an assessment device with a
numerical rating is not used, 10-point veterans are afforded an
interview and 5-point veterans are given consideration.
Nonetheless, she said it's been a common practice to offer an
interview to 5-point veterans. HB 113 would extend the
preference of being awarded an interview to 5-point veterans, as
well as military spouses and dependent children.
CHAIR SPOHNHOLZ asked for the definition of a vacancy-based
system.
MS. DAY explained that when a vacancy arises, recruitment ensues
immediately, which is a more streamlined process than the
state's prior hiring system.
CHAIR SPOHNHOLZ acknowledged that filling vacancies faster is a
good idea.
3:27:40 PM
REPRESENTATIVE HANNAN questioned whether the point system is
based on a 100-point scale and whether points and percentages
are interchangeable.
MS. DAY answered yes. She added, "it's 5 percent of the points
available from a scoring device - or 10 percent."
REPRESENTATIVE HANNAN asked if it's based on a 100-point scale.
MS. DAY said yes.
REPRESENTATIVE HANNAN questioned the difference between a 5-
point veteran and a 10-point veteran.
MS. DAY explained that, "if we do not use a scoring system,
which we do not, if a veteran who would have been awarded the 10
points in the scoring - which is the disabled veteran or the
prisoner of war - they are offered the interview."
3:28:58 PM
REPRESENTATIVE JACKSON said, "this bill is for active duty
spouses and spouses of those that died in war, or Gold Star
families. So, this bill is just extending to the spouses"
CHAIR SPOHNHOLZ surmised that the [hiring] preference would
elevate an applicant, rather than award them a 5 or 10 percent
advantage.
MS. DAY affirmed that.
3:29:51 PM
REPRESENTATIVE HANNAN questioned the difference between a 5-
point veteran and a 10-point veteran.
REPRESENTATIVE JACKSON replied that it correlates to their
disability.
MS. DAY responding to a follow-up question from Representative
Hannan, said AS 39.25.159 [Employment Preference for Veterans
and Former Prisoners of War] articulates that disabled veterans
or prisoners of war are awarded an interview or 10 percent,
whereas veterans or members of the National Guard are awarded 5
percent or considered for an interview.
CHAIR SPOHNHOLZ questioned whether the 5 percent and 10 percent
distinction also applied to the spouse.
MS. DAY said this bill expands the interview benefit to veterans
and members of the National Guard, as well as to military
spouses and dependent children.
3:32:40 PM
REPRESENTATIVE FIELDS clarified that under HB 113, every spouse,
dependent child, and veteran would be afforded an interview for
a state job for which they applied.
MS. DAY replied yes, if they meet the minimum qualifications.
REPRESENTATIVE FIELDS asked if they would receive up to a 10
percent higher score than other applicants.
MS. DAY said it can be either or. She directed attention to AS
39.25.159, which states that if an assessment device is used to
score applicants then the 10-points can be applied; however,
because Alaska doesn't use an assessment device the interview is
guaranteed.
REPRESENTATIVE FIELDS questioned whether this bill should be
rewritten to ensure an interview. He asked if that would be a
simpler way to write it. He expressed concern with awarding a
10-point advantage to someone, should the state revert to a
point-based scoring system.
3:34:27 PM
REPRESENTATIVE JACKSON said HB 113 is offering preference points
to the spouses and family members of Gold Star families. She
added that it specifically speaks to preference points for a
spouse.
REPRESENTATIVE FIELDS said he understands.
3:35:33 PM
DAN WAYNE, Attorney, Legislative Legal Services, Legislative
Affairs Agency, attempted to provide context to page 6 of the
bill. He stated that under current law, AS 39.25.159(a)
entitles a veteran or former prisoner of war - who meets the
minimum qualifications - to an employment preference of which
there are two kinds. When hiring based on a numerical rating,
veterans get 5 points added to their score, whereas disabled
veterans or formers prisoners of war get an additional 10
points. When hiring is not based on a numerical system,
consideration is awarded to veterans and an opportunity to
interview is afforded to disabled veterans and former prisoners
of war. He explained that under HB 113, those [hiring]
preferences would extend to military spouses and dependent
children.
CHAIR SPOHNHOLZ asked what Amendment 1 accomplishes.
3:38:56 PM
MR. VERHAGEN stated that Amendment 1 affords qualified military
spouses or dependent children the right to an interview. He
explained that if, for example, there are 10 qualified
candidates, the department doesn't have to interview all 10 of
them; however, they "shall" award a military spouse or dependent
child with an interview.
CHAIR SPOHNHOLZ sought to clarify whether Amendment 1 would
require that a military spouse or dependent child is awarded an
interview if they meet the minimum qualifications.
MR. VERHAGEN answered yes.
3:40:23 PM
REPRESENTATIVE FIELDS suggested rewriting the bill to ensure an
interview without giving the same numeric point advantage to a
spouse or dependent in the event there is a numeric system being
used.
CHAIR SPOHNHOLZ pointed out that it would be a very substantial
amendment to this bill.
3:40:56 PM
REPRESENTATIVE HANNAN attempted to clarify whether Amendment 1
awards "everybody" with an interview.
3:41:24 PM
MR. VERHAGEN stated that those under [subsection] (i) get an
interview as well as those under (3)(i), which is the surviving
spouse or dependent of a person who was killed in action. He
went on to say, "so this amendment is not actually even giving
the right to an interview to a spouse or dependent child of a
veteran, but only an active duty someone described in
section (A)(i), so who is in active service or on furlough. So,
Representative Jackson's intent was to not afford the right to
an interview to veterans, spouses, and dependents, but a
spouse who's married to an active duty member or someone on
furlough, if that makes sense."
MR. VERHAGEN responding to a follow-up question from
Representative Hannan, said both the veteran and current active
duty military spouse will be awarded an interview.
3:43:22 PM
REPRESENTATIVE FIELDS asked Mr. Wayne if it would be possible to
rewrite this section to clarify that interviews are afforded to
spouses and dependents of active duty service members without
adding multiple references to points, which is conflicting. He
questioned whether it could be written to be shorter and
clearer.
3:43:53 PM
MR. WAYNE reiterated that if HB 113 does not pass, current law
states that if there is an assessment using numerical ratings -
which could happen tomorrow - then the 5 or 10-point preference
will apply to veterans, former prisoners of war, and disabled
veterans. When there's not a numeric assessment, consideration
or an interview applies. He reminded the committee that
consideration and receiving an interview are two separate things
according to the law, regardless of how the administration is
putting them into practice, which is subject to change through
regulation.
REPRESENTATIVE FIELDS stated that while he is comfortable with
awarding consideration, he is uncomfortable with the points
incentive. He requested an extension on the amendment deadline
to refine a solution.
3:47:35 PM
CHAIR SPOHNHOLZ withdrew Amendment 1.
MR. VERHAGEN in response to Representative Fields, emphasized
that under HB 113, the only people that "shall" receive a 10-
point preference are disabled veterans.
CHAIR SPOHNHOLZ assured Mr. Verhagen that the committee
understands that point. The question is whether to continue to
reference a numerical system that is not currently used in state
law, she explained.
3:49:40 PM
REPRESENTATIVE HANNAN moved to adopt Amendment 2, [labeled 31-
LS0715\S.2, Wayne, 2/20/20], which read as follows:
Page 6, lines 18 - 19:
Delete "the surviving spouse or a dependent child
of a person who"
Insert "a dependent child or, unless the
surviving spouse has remarried, the surviving spouse
of a person who died within a 10-year period
immediately preceding the date of the assessment and"
CHAIR SPOHNHOLZ objected for the purpose of discussion.
REPRESENTATIVE HANNAN explained that Amendment 2 proposes a 10-
year limit on the benefit for the surviving spouse or dependent
children in the event of a service member's death.
3:50:17 PM
REPRESENTATIVE JACKSON opined that Amendment 2 is reasonable and
acceptable.
3:50:43 PM
CHAIR SPOHNHOLZ withdrew her objection. There being no further
objection, Amendment 2 was adopted.
CHAIR SPOHNHOLZ announced that HB 113 was held over.
HB 235-AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS
3:51:19 PM
CHAIR SPOHNHOLZ announced that the next order of business would
be HOUSE BILL NO. 235, "An Act relating to allocations of
funding for the Alaska Workforce Investment Board; and providing
for an effective date."
3:51:59 PM
REPRESENTATIVE ADAM WOOL, Alaska State Legislature, as prime
sponsor, introduced 235 and delivered the sponsor statement,
which read in its entirety as follows [original punctuation
provided]:
In 2000, the Alaska Legislature established the
Technical Vocational Education Program (TVEP). This
program is administered by the Alaska Workforce
Investment Board and utilizes a portion of
Unemployment Insurance receipts to provide grants to
career and technical education providers across the
State. The TVEP program impacts thousands of students
by offering industry-specific training opportunities
that help Alaskans get to work.
HB 235 would re-authorize the TVEP program for an
additional three years until fiscal year 2023. The
program currently has ten recipients which include the
University of Alaska, the Alaska Vocational Technical
Education Center, the Alaska Technical Center, as well
as other technical education providers across the
State. These programs train Alaskans for industry-
specific jobs in sectors such as fishing,
transportation, health, mining, and construction.
Please join me in supporting House Bill 235 to re-
authorize the TVEP program and keep thousands of
Alaskans ready for the high demand careers our State
has to offer.
3:53:51 PM
ASHLEY CARRICK, Staff, Representative Adam Wool, Alaska State
Legislature, provided a PowerPoint presentation, entitled "HB
235: Technical Vocational Education Program (TVEP) Re-
Authorization," on behalf of Representative Wool, prime sponsor.
She directed attention to slide 2, "TVEP Program History." She
informed the committee that TVEP was created in 2000 to provide
competitive grant assistance to education entities in Alaska
that delivered specific vocational and technical training. The
program was established under AS 23.15.830 [Alaska Technical and
Vocational Education Program Account] and sunsets every three
years. In 2014, the legislature increased the amount of funds
diverted to TVEP from .15 percent of unemployment insurance to
.16 percent. The types of training that TVEP recipients offer
include aviation, fisheries, construction, renewable energy,
mining, information technology, transportation, health care, and
other vocational training (slide 3). Ms. Carrick turned
attention to a flow chart on slide 4, entitled "How TVEP Funding
Gets Distributed." She pointed out that both STEP and TVEP
programs are funded through unemployment insurance receipt
contributions. She went on to say that the STEP/TVEP portion
come directly from the employee portion of the contribution to
unemployment insurance, while the employer portion is deposited
into the UI trust fund account. The STEP/TVEP portion are
designated general funds.
3:57:04 PM
REPRESENTATIVE HANNAN referring to the "STEP/TVEP Portion" box
on the flow chart, asked if $103.74 is dollars or millions.
MS. CARRICK said that she does not know.
CHAIR SPOHNHOLZ offered her understanding that it is $103.74
dollars.
3:57:55 PM
MS. CARRICK resumed her presentation. She paraphrased slides 5-
6, entitled "TVEP Recipients Over Time," which read as follows
[original punctuation provided]:
In 2000:
University of Alaska: 52%
Kotzebue Training Center: 16%
Alaska Vocational Technical Center: 32%
In 2001:
University of Alaska: 63%
Kotzebue Training Center: 11%
Alaska Vocational Technical Center: 22%
Galena Project Education Training Center: 4%
In 2004:
University of Alaska: 55%
Kotzebue Training Center: 11%
Alaska Vocational Technical Center: 22%
Galena Project Education Training Center: 4%
Southwest Alaska Vocational Education Center: 4%
Yuut Elitnaurviat, Inc., People's Learning Center: 4%
In 2008:
University of Alaska: 45%
Kotzebue Training Center- Alaska Technical Center: 9%
Alaska Vocational Technical Center: 17%
Galena Project Education Training Center: 4%
Southwest Alaska Vocational Education Center: 3%
Yuut Elitnaurviat, Inc., People's Learning Center: 9%
Delta Career Advancement Center, Partners for Progress
Delta, Inc.: 3%
Amundsen Educational Center: 2%
Northwestern Alaska Career and Technical Center: 3%
University of Alaska Southeast: 5%
MS. CARRICK directed attention to slide 7, entitled "Current
TVEP Recipients," which read as follows [original punctuation
provided]:
In 2014 and again in 2017:
Statewide: University of Alaska: 45%
Kotzebue: Alaska Technical Center: 9%
Seward: Alaska Vocational Technical Center: 17%
Galena: Galena Project Education Training Center: 4%
Dillingham: Southwest Alaska Vocational Education
Center: 3%
Bethel: Yuut Elitnaurviat, Inc., People's Learning
Center: 9%
Delta: Partners for Progress Delta, Inc.: 3%
Kenai: Amundsen Educational Center: 2%
Nome: Northwestern Alaska Career and Technical Center:
3%
Utqiagvik: Illisagvik College: 5% (Added in 2014)
4:00:17 PM
REPRESENTATIVE STUTES asked if the Illisagvik College in
Utqiagvik is part of the University of Alaska system. She also
asked what Partners for Progress Delta, Inc. is.
MS. CARRICK said Illisagvik College is a private institution
that's not part of the UA system and Partners for Progress is a
vocational center.
MS. CARRICK returned attention to the table exhibited on slide
8, entitled "TVEP Distributions." She explained that the table
displays the current TVEP distributions including the proposed
distributions for FY2021 for each of the recipients.
4:01:16 PM
REPRESENTATIVE STORY asked Ms. Carrick to highlight the changes,
if any, from 2017.
MS. CARRICK asked if Representative Story is referring to the
percent of distribution or the actual dollar amount.
REPRESENTATIVE STORY said the percent of distribution, if any
has changed.
MS. CARRICK reported that percentages have not changes since
2014. She explained that there was a reauthorization in 2017
that kept the current percentages. The only change, she said,
is that the governor's supplemental budget offers additional
funding from the unemployment insurance base to bolster this
year's distribution, which is why it's slightly higher than the
formula.
CHAIR SPOHNHOLZ asked how much higher.
4:02:44 PM
REPRESENTATIVE WOOL offered his understanding that it was the
additional allocation to Alaska Vocational Technical Center
(AVTEC) of 4 million dollars.
4:03:22 PM
REPRESENTATIVE HANNAN asked if the average annual wage in Alaska
has fluctuated in the last four years and how that affects the
TVEP program.
REPRESENTATIVE WOOL deferred to Lennon Weller.
4:04:24 PM
LENNON WELLER, Economist/Unemployment Insurance Actuary,
Research & Analysis Section, Department of Labor & Workforce
Development, in response to Representative Hannan, confirmed
that the taxable wage base fluctuates. He said that four years
ago, there were two years of decline in the taxable wage base;
however, over the last several years it has been steadily
increasing at approximately $600 per year, which should continue
into the near future.
REPRESENTATIVE HANNAN asked what happens "when we have a
specific budget line item that's increasing one of the parties
receiving the TVEP distributions, how does that go into the
calculations to everybody else's allocations. Does it skew them
- do they still get the same percentage and AVTEC's just getting
that specific $4,000 but that's part of their 17 percent or is
that additional to their 17 percent."
MS. CARRICK offered to follow up with the requested information.
She offered her understanding that because this was funding in
the supplemental and this formula is in statute, "they would
still receive however much they would have received through the
formula. In addition, they are also receiving the funds the
governor has added in the supplemental."
4:06:48 PM
REPRESENTATIVE STORY pointed out that there are more career tech
programs coming online in Alaska. She asked at what point they
should get added to TVEP. She said this is a question that will
need to be looked at thoroughly in the future.
REPRESENTATIVE WOOL in response to Representative Hannan,
explained that TVEP is only one funding source for the entities,
adding that they all receive funding from other sources.
4:10:11 PM
TERI COTHREN, Associate Vice President, Workforce Development,
University of Alaska, provided a PowerPoint presentation,
entitled "University of Alaska Technical Vocational Education
Program." She informed the committee that the presentation will
offer an overview of how TVEP is managed at the university and
provide examples of what the funds are used for, as well as the
outcomes it contributes to. She stated that UA is one of the
most comprehensive providers of workforce development,
delivering 92 percent of postsecondary education in Alaska
through three separately accredited universities and 13
community campuses. UA manages it's TVEP funds as a single
allocation within the university system. The program is
administered through a competitive RFP process by the UA
workforce development committee. The funding is distributed as
the result of a process that is inclusive of all campuses and
programs in the UA system that meets the following funding
priorities: align with TVEP statutes, responsive to the
industry, strategic one-time infrastructure/equipment
investments, and develops and enhances partnerships. It is also
requested that the proposals demonstrated the ability to garner
match funding or a plan for maintaining the program beyond TVEP
funding. Specifically, TVEP is to be used at the university as
a short-term funding source to initiate or enhance workforce
development programs.
MS. COTHREN directed attention to two charts on slide 4,
entitled "UA FY19 TVEP - $4.9M Funding Distribution." She
pointed out that TVEP supports high priority industries in
Alaska, including the health industry at 34 percent.
Furthermore, funding is distributed across all six economic
regions of the state. She continued to slide 5, noting that UA
TVEP served a total of 4,492 students in FY19. She proceeded to
give specific examples from slides 6-12 of how TVEP supports
UA's ability to be responsive to Alaska's high demand
industries, as follows [original punctuation provided]:
Oil & Gas TVEP Investments & Outcomes
INVESTMENTS
? Expand access to fabrication, manufacturing, and 3D
printing
? Improve welding program alignment across campuses
? Develop/deliver BS degree in Occupational Safety &
Health
? Lease of state-of-the art shop and classroom space
for process technology
? Well Control training
OUTCOMES
Time period: FY17-19
TVEP Investment: $1.9M
Graduates: 1,937
Mining TVEP Investments & Outcomes
INVESTMENTS
? Delivery of hard skills mine training camps
? Millwright program expansion dual enrollment and
statewide delivery through partnerships
OUTCOMES
Time Period: FY17-19
TVEP Investment: $704K
Graduates: 335
Health Sciences TVEP Investments & Outcomes
INVESTMENTS
? High-demand health program development and/or
expansion
? State-of-the-art simulators and instructional
technology
? Student-centered advising, tutoring, and summer
bridge programs
? Pre-medicine programs
OUTCOMES
Time Period: FY17-19
TVEP Investment: $4M
Graduates: 2,011
Aviation TVEP Investments & Outcomes
INVESTMENTS
? Airplanes, equipment, and technology upgrades
? Flight simulator
? Aviation maintenance apprenticeships
OUTCOMES
Time Period: FY17-19
TVEP Investment: $290K
Graduates: 327
Maritime TVEP Investments & Outcomes
INVESTMENTS
? Maritime program development and expansion
Development of career awareness resources
? Equipment and technology upgrades
? Portable maritime training to expand access
OUTCOMES
Time Period: FY17-19
TVEP Investment: $2M
Graduates: 3,000
MS. COTHREN, in conclusion, turned to slide 13. She stated that
UA strongly supports the reauthorization of TVEP. State
funding, including TVEP, will continue to be critical to UA's
ability to create pathways, deliver programs, and provide
professional development to meet Alaska's workforce needs.
4:19:44 PM
REPRESENTATIVE FIELDS questioned whether the university tracks
both completions and employment in industries of training.
MS. COTHREN said the university works with research and analysis
at the Department of Labor & Workforce Development (DLWD) to
look at those metrics. She said the annual TVEP report that the
legislature receives is specific to TVEP but also speaks to
employment and wage outcomes for TVEP.
REPRESENTATIVE FIELDS sought to clarify whether the measurement
among TVEP programs is consistent across recipients.
MS. COTHREN confirmed that.
4:20:43 PM
CHAIR SPOHNHOLZ announced that HB 235 was held over.
HB 229-HEALTH INFORMATION/DATABASE/PUBLIC CORP.
4:21:05 PM
CHAIR SPOHNHOLZ announced that the final order of business would
be HOUSE BILL NO. 229, "An Act establishing the Alaska Health
Care Transformation Corporation; relating to an all-payer claims
database; and providing for an effective date."
4:21:54 PM
SANDRA HEFFERN, Project Coordinator, Alaska Healthcare
Transformation Project, began by discussing the numerous efforts
to address Alaska's health care system by the last three
administrations. She noted the Alaska Healthcare Commission
under the Palin administration that studied issues related to
health care in Alaska and reported recommendations and
activities to the legislature. The commission was defunded in
2015 and is no longer active. Additionally, under the Parnell
administration there was a Medicaid taskforce in 2010, as well
as a Medicaid reform advisory group in 2014. The purpose of
those groups was to look at the stability and predictability in
budgeting, increase the ease and efficiency of navigating the
system by providers, and provide whole care for the patient by
uniting physical and behavioral health treatment. She also
mentioned SB 74, the omnibus Medicaid reform bill that was
signed into law in 2016 during the Walker administration. She
said that while there have been incremental improvements, the
Anchorage Economic & Development Corporation found that since
2010 the rising cost of employee health has been reported as the
number two issue in hindering business growth. Furthermore, the
cost of health care in Alaska continues to be close to the most
expensive in the U.S. She reported that the per capita spending
on health care is higher than other high-income countries, which
could lead one to believe that Alaska has some of the highest
health care costs in the world.
MS. HEFFERN directed attention to her PowerPoint presentation,
entitled "Alaska Healthcare Transformation Project." She
informed the committee that the Alaska Healthcare Transformation
project is a cross sector collaboration of payers, providers,
policymakers, and patient advocates working together to
transform Alaska's health care system (slide 2). The project
management committee consists of 7 people, including
Representative Spohnholz and Senator von Imhof. The committee's
role is to provide overall direction, guidance, and support to
the project, and to monitor it to ensure successful delivery of
expected outputs and outcomes within the scope and budget (slide
3).
4:27:20 PM
REPRESENTATIVE FIELDS asked how many of the project management
committee members' employers have endorsed the current version
of HB 229.
MS. HEFFERN replied that both the Mat-Su Health Foundation and
the Alaska Primary Care Association support HB 229.
4:28:31 PM
REPRESENTATIVE STUTES asked if HB 229 is meant to be a precursor
to health care reform.
MS. HEFFERN said to effectuate change within Alaska's health
care system with a small population, it will require looking at
the entire health care system rather then just one siloed area,
like Medicaid.
REPRESENTATIVE STUTES questioned whether the intent of this
project is to reform the health care system to work more
efficiently.
MS. HEFFERN answered yes, the focus is to look at the entire
health care system instead of focusing only on one area.
CHAIR SPOHNHOLZ clarified that the Alaska Healthcare
Transformation Project's effort is to transform the entire
health care system; however, the all-payer claims database
(APCD) will not necessarily do that work. She reiterated that
they are discussing two separate topics.
4:31:16 PM
MS. HEFFERN resumed her presentation. She related the projects
vision, which is to improve Alaskan's health while also
enhancing patient and health professional's experience of care
and lowering the per capita health care growth rate (slide 4).
The project's guiding principles are to focus on improving
individual and population health, consider health coverage with
common basic benefits for all, focus on whole person and
integrated systems of care, use evidence-based practices, and
recognize the effect of social determinants of health (slide 5).
She went on to paraphrase slide 6, the project's goals, which
read as follows [original punctuation provided]:
Healthy Alaskans:
? The percentage of Alaskan residents with a usual
source of primary care will increase by 15% within
five years
Healthy Economy:
? Reduce overall per capita healthcare growth rate to
the greater of 2.25% or CPI within five years
Everybody's Business:
? Align all payers, public and private, towards value-
based alternative payment models with streamlined
administrative requirements within five years
MS. HEFFERN directed attention to a graph on slide 7, entitled
"Alaska Healthcare Per Capita Growth Rate." She stated that
from 1991 to 2014 the health care cost growth rate was 7.8
percent in Alaska compared to 6 percent in the U.S., indicating
that medical prices in Alaska are growing faster than in the
rest of the country. The Alaska Healthcare Transformation
Project narrowed its focus to five strategy areas: increasing
primary care utilization, coordinating patient care, changing
the way health care is paid for in Alaska, increasing data
analytics capacity, and addressing social determinants of health
(slide 8). The project gathered a strategy development team
that decided to assemble the previous work that had been done in
Alaska. Slide 6 highlights the research compiled by the NORC,
which read in its entirety as follows [original punctuation
provided]:
Meta-Analysis. Identify and assess a group of
Alaska-focused reports and studies issued over the
past decade (2008 to the present) that focus on
delivery system reform related to the triple aim of
improved health, improved quality of care and
experience with care delivery (for patients as well as
the health care workforce), and reduced per capita
costs.
Alaska Historical Project Scan. Identify and assess
selected delivery system reform experiments in Alaska
over the past decade (2008 to the present), with
priority to characterizing regional innovation within
the state.
National Scan. Develop case studies for selected
states where delivery system reform relevant to
Alaska's five key topics of interest offers lessons
for prospective innovation.
Drivers of the Health Care Costs and Spend in
Alaska. Review health care spending in the state and
the prospects and limitations of available data
sources that would support a fine-grained analysis of
cost drivers relevant to these reforms. Based on this
review, prepare a set of estimates of potential
reform-related savings and a draft roadmap with
proposed short-term (within one year) and long-term
steps that comprise one or more pathways to reform.
MS. HEFFERN reported that they narrowed eight NORC
recommendations down to three areas: set multi-payer goals for
value-based payment using the Health Care Payment Learning
Action Network framework; develop the details, parameters, and
build consensus around the collection of cost and quality data
and ensuring sufficient analytic capacity to effectively analyze
and use the data; and determine the structure and
responsibilities of leadership governance (slide 10). From
those recommendations, she said, they decided to consider an
all-payer claims database (APCD). The recommendation was to
develop a corporation that was connected to state government
while remaining dependent of state government. She stated that
the result is HB 229. In closing, she said Alaska is not alone
in its efforts to collect, analyze, and report health care data.
Nationally, people are trying to get a handle on the cost of
health care and an APCD is one of the ways to do that. She
added that President Trump issued an executive order in June
2019, with the focus on improving price and quality transparency
in American health care.
4:43:14 PM
MS. HEFFERN said, in closing, there are states in the process of
transforming or reforming their health care system that have
utilized their health care cost data to set a statewide growth
rate, which can't be done without data. She reiterated that the
recommendation for establishing an APCD would require a trusted
entity so all parts of the health care industry would support
the information and the story that the data is telling.
4:44:28 PM
REPRESENTATIVE HANNAN asked where Mark Foster derived the data
for his study, which found that Alaska has spent $8.5 billion on
health care.
MS. HEFFERN said she can provide a copy of that report, which
cites all his references. She added that it further supports
the need for an APCD.
4:45:54 PM
REPRESENTATIVE FIELDS questioned whether the project has
performed an analysis to find the percentage of rising health
care cost that is related to Alaska's aging population. He
offered his understanding that it's the most rapidly aging
population on a per capita basis in the country.
MS. HEFFERN replied they couldn't get to that level of detail
because they couldn't get their hands on the data.
REPRESENTATIVE FIELDS questioned whether it's possible to
establish an all or most-payer claims database with or without a
corporation.
MS. HEFFERN opined that an APCD could be established in several
different ways. Other states have done it through an office of
financial management, division of insurance, healthcare
authority, and a nonprofit organization. The issue is finding a
trusted entity that everyone in the state will trust to produce
accurate and fair data that won't be used against them.
REPRESENTATIVE FIELDS asked how many states have a something
like the project's proposed corporation that has regulatory
power.
4:48:27 PM
NORM THURSTON, Executive Director, National Association of
Health Data Organizations, addressed questions from the previous
bill hearing. First, he said of the 10 smallest states by
population, four of them have all-payer claims databases. He
noted that this has traditionally been a movement coming out of
the smaller states and into the larger states. Second, he said
states that have a good relationship with the business community
tend to do very well, some getting upwards of 30-40 percent of
businesses to participate voluntarily. He said it's not
unreasonable to think that a state like Alaska could easily be
at 60 percent of its population with the possibility of going
much higher.
4:50:53 PM
REPRESENTATIVE STUTES asked of the states that participate in
all-payer plans, how many have shown quantifiable savings in
their medical expenses.
MR. THURSTON stated it's a difficult question to answer because
data is collected, analyzed, and released, followed by the cost
- not decreasing - but increasing less rapidly, which is bending
the cost curve down. He approximated that one-third of the
participating states have had a major strategic effort to use
the data to bend the cost curve with varying degrees of success.
4:52:23 PM
REPRESENTATIVE FIELDS inquired as to how many states have
corporations with regulatory power that manage their all-payer
claims databases.
MR. THURSTON said he does not know. He noted that Colorado has
an independent regulatory agency that has the ability to make
rules of its governance. Mr. Thurston informed the committee
that he is a legislator in Utah, adding that most of the APCDs
can regulate within their sphere to set standards for data
submission and enforce compliance.
REPRESENTATIVE FIELDS asked how many of the 20 states manage
their APCDs through some entity within state government versus a
standalone corporation.
MR. THURSTON approximated that half of them are embedded in a
state agency, while the other half do something else.
REPRESENTATIVE FIELDS asked how much it costs those states with
a standalone corporation.
MR. THURSTON recounted from his experience in Utah that the core
operations of a database costs roughly $600,000. He added that
the database costs the same regardless of the population. He
said it would be consistent as a fixed cost of operations.
4:56:36 PM
REPRESENTATIVE HANNAN inquired as to the first state to have an
APCD.
MR. THURSTON offered his belief that Maine and Massachusetts
were the pioneers.
REPRESENTATIVE HANNAN questioned whether APCDs have addressed
policy issues related to people leaving a jurisdiction for
medical cost reasons.
MR. THURSTON said he is not aware of any state where that has
been a policy priority.
4:59:03 PM
REPRESENTATIVE FIELDS asked of the 20 states with an APCD, which
is most similar to Alaska in the sense that there are a low
percentage of people with private health insurance plans and a
high percentage of residents on IHS health care, tri-care, and
Medicaid.
MR. THURSTON answered New Mexico.
5:00:52 PM
REPRESENTATIVE STORY asked what the framework is for creating an
APCD within a state department.
MR. THURSTON explained that the Utah APCD is a bureau within the
Utah Department of Health. He said it's a sister agency to the
Medicaid agency and is set up with a bureau director that
reports to a division director. He said Utah's APCD is the
quintessential example of an APCD embedded within the
government. He added that most of the work is done by a
contracted vendor, leaving the [Utah] Department of Health to
focus mainly on project management.
REPRESENTATIVE STORY asked how much that costs.
MR. THURSTON said the contracted cost for an outside vendor is
roughly $400,000 per year. Furthermore, there's the agency
staff to manage the contract and analyze the data.
5:02:50 PM
CHAIR SPOHNHOLZ asked if there are other states that have put
their APCD within another agency like, for example, the Division
of Insurance.
MR. THURSTON said in Arkansas they developed everything in the
Arkansas Center for Health Improvement, which is part of the
state government. He noted that Arkansas doesn't do any
contract outsourcing at all.
CHAIR SPOHNHOLZ asked for the advantages and disadvantages of
both routes.
MR. THURSTON explained that the advantage of using an outside
vendor is that the technology already exists, which makes it
easier to set up. He added that the analytics tools that an
outside vendor offers will be much more powerful than a state
could develop on its own. The disadvantages of working with an
outside vendor is the lack of stability.
REPRESENTATIVE FIELDS asked if there is a consistent time lag in
the data.
MR. THURSTON stated that most states now have monthly submission
processes, so claims that were processed in January would be
submitted to the APCD by February 15th. Subsequently, by the
end of March, the January payments should be available in a
preliminary format. He noted that the lag is not as big on the
data collection and processing site as it is on the claim
payment site. Most states allow claims to be submitted for
payment up to one or two years after service is rendered. He
added that any service provided in October would be ready for
examination in six months.
5:07:35 PM
JOHN CULLEN, MD, Valdez Medical Clinic, LLC; Board Member,
Alaska Academy of Family Physicians, stated that the American
Academy of Family Physicians is in favor of an APCD. He
reported that he has seen it work in practice, adding that it's
a necessary step towards health transformation. He said that
family physicians have a strong interest in reducing the cost of
health care for their patients. He noted that other states have
had success with mandatory primary care investment. He offered
his belief that creating an APCD is a necessary first step in
figuring out why the cost of health care is so high.
5:11:29 PM
REPRESENTATIVE FIELDS surmised that much of the high cost of
health care in America is related to federal policies that allow
"big pharma" to consistently rip people off and private health
insurers that have higher administrative costs compared to
Medicaid, for example. He questioned what is within the state
government's control versus what is outside its control at the
federal level. He asked where the relative opportunities for
achievable cost saving rests.
DR. CULLEN opined that the reason America's health care is so
expensive is due to pharmaceutical costs, administration costs,
and high-volume/high-cost procedures, like MRIs and CT scans.
He said from a primary care perspective, having and APCD that
could provide information on which of those procedures are
excessively expensive could help them better choose the right
providers for their patients. He added that the administrative
and pharmaceutical costs are controlled at the federal level.
REPRESENTATIVE FIELDS expressed interest in state innovation
regarding high drug prices in the context of this conversation.
CHAIR SPOHNHOLZ noted that Alaska's health care costs have grown
significantly more than the rest of the country. She said it
would be difficult to argue that those are completely driven by
the federal government. She pointed out that Alaska adopted
several rules that were designed to incentivize increased access
to specialty care by allowing specialists to increase their
rates, which has increased access to Alaska for specialists,
like cardiologists and pulmonologists, while also growing the
cost of health care in the state.
5:15:35 PM
LAURA YOUNG, Executive Director, HealtheConnect Alaska,
explained that HealtheConnect is the health information exchange
for the state of Alaska that was set up under SB 133 and has
been in operation since 2013. The organization is public,
nonprofit, and independent and has a similar structure and
governance as the "health care transformation corporation" that
is being proposed. HealtheConnect collects and exchanges real
time clinical data versus claims data. She said it's their
believe both efforts should be complementary. She further noted
that they've set standards for how data is collected and
exchanged and established privacy and security requirements. To
conclude, she offered her belief that "the independent, neutral
organization of such an effort is really critical rather than
aligning it to any one entity or agency is crucial for keeping
the data neutral."
5:18:19 PM
[HB 229 was held over.]
5:18:59 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
[5:18] p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 229 Bill Text Version M.pdf |
HHSS 2/20/2020 3:00:00 PM HL&C 2/21/2020 3:15:00 PM |
HB 229 |
| HB 229 Sectional Analysis v.M.pdf |
HHSS 2/20/2020 3:00:00 PM HL&C 2/21/2020 3:15:00 PM |
HB 229 |
| HB 229 Sponsor Statement v.M.pdf |
HHSS 2/20/2020 3:00:00 PM HL&C 2/21/2020 3:15:00 PM |
HB 229 |
| HB 229 and supporting documents.pdf |
HL&C 2/20/2020 3:00:00 PM HL&C 2/21/2020 3:15:00 PM |
HB 229 |
| HB 229 Testimony Dr. Cullen CV.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 229 |
| HB229 Testimony Dr. Cullens.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 229 |
| HB 113 v. S Amendment #1 HL&C 2.21.2020.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 113 |
| HB 113 v. S Amendment #2 HL&C 2.21.2020.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 113 |
| HB 113 Powerpoint The Blue Star and Gold Star Families Act 1.31.20.pdf |
HL&C 2/19/2020 3:15:00 PM HL&C 2/21/2020 3:15:00 PM |
HB 113 |
| HB113 Backup Document NCSL veterans' state hiring preference 1.31.20.pdf |
HL&C 2/19/2020 3:15:00 PM HL&C 2/21/2020 3:15:00 PM |
HB 113 |
| HB 235 Fiscal Note DOLWFD-AVTEC 2.14.2020.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 235 |
| HB 235 Fiscal Note DOLWFD-CAS 2.15.2020.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 235 |
| HB 235 Fiscal Note DOLWFD-WD 2.14.2020.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 235 |
| HB 235 Fiscal Note DOLWFD-UI 2.14.2020.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 235 |
| HB 235 Fiscal Note EED-SSA 2.14.2020.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 235 |
| HB 235 Fiscal Note UA-SYSBRA 2.18.2020.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 235 |
| HB 235 Sponsor Statement 2.21.2020.pdf |
HL&C 2/21/2020 3:15:00 PM HL&C 3/9/2020 3:15:00 PM |
HB 235 |
| HB 235.Backup Flow Chart 2.21.2020.pdf |
HL&C 2/21/2020 3:15:00 PM HL&C 3/9/2020 3:15:00 PM |
HB 235 |
| HB 235.Backup UA TVEP Advocacy 2.21.2020.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 235 |
| HB 235 Backup Distribution Sheet 2.5.2020.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 235 |
| HB 235 TVEP Annual Report 2019.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 235 |
| HB 235 Backup Intro Presentation 2.21.2020.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 235 |
| AHCTP House L and C 2.21.20.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 229 |
| HB 235 UA TVEP Background Information.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 235 |
| HB 235 TVEP Univ. of Alaska Presentation 02.20.20.pdf |
HL&C 2/21/2020 3:15:00 PM |
HB 235 |