Legislature(2021 - 2022)DAVIS 106
03/24/2021 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB133 | |
| HB121 | |
| HB133 | |
| HB121 | |
| HB133 | |
| HB121 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 133 | TELECONFERENCED | |
| += | HB 121 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 24, 2021
4:05 p.m.
MEMBERS PRESENT
Representative Zack Fields, Co-Chair
Representative Ivy Spohnholz, Co-Chair
Representative Calvin Schrage
Representative Liz Snyder (via teleconference)
Representative David Nelson
Representative James Kaufman
Representative Ken McCarty
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 133
"An Act relating to the Alaska savings program for eligible
individuals; relating to education savings programs; relating to
the Education Trust of Alaska; relating to the Alaska advance
college tuition savings fund; relating to the Alaska education
savings program for children; and relating to the Governor's
Council on Disabilities and Special Education."
- MOVED CSHB 133(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 121
"An Act relating to education tax credits for certain payments
and contributions for child care and child care facilities; and
providing for an effective date."
- MOVED CSHB 121(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 133
SHORT TITLE: AK ED SAVINGS PROGRAMS/ELIGIBILITY
SPONSOR(s): LABOR & COMMERCE
03/10/21 (H) READ THE FIRST TIME - REFERRALS
03/10/21 (H) L&C, FIN
03/17/21 (H) L&C AT 5:45 PM BARNES 124
03/17/21 (H) <Bill Hearing Canceled>
03/19/21 (H) L&C AT 3:15 PM BARNES 124
03/19/21 (H) Heard & Held
03/19/21 (H) MINUTE(L&C)
03/24/21 (H) L&C AT 3:15 PM DAVIS 106
BILL: HB 121
SHORT TITLE: EDUC.TAX CREDIT: EMPLOYER CHILD CARE COST
SPONSOR(s): FIELDS
03/03/21 (H) READ THE FIRST TIME - REFERRALS
03/03/21 (H) L&C, FIN
03/17/21 (H) L&C AT 5:45 PM BARNES 124
03/17/21 (H) Heard & Held
03/17/21 (H) MINUTE(L&C)
03/24/21 (H) L&C AT 3:15 PM DAVIS 106
WITNESS REGISTER
MICHELE GIRAULT
Key Coalition of Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 133.
OLIVIA FOSTER, Nurse
Providence Valdez Medical Center
Valdez, Alaska
POSITION STATEMENT: Testified in support of HB 121.
LAURA NORTON-CRUZ, Volunteer Organizer
Growing Alaska Leaders
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 121.
NICOLE REYNOLDS, Deputy Director
Tax Division
Department of Revenue,
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
121.
ACTION NARRATIVE
4:05:45 PM
CO-CHAIR IVY SPOHNHOLZ called the House Labor and Commerce
Standing Committee meeting to order at 4:05 p.m.
Representatives Fields, Spohnholz, Schrage, Nelson, Kaufman, and
McCarty were present at the call to order. Representative
Snyder arrived (via teleconference) as the meeting was in
progress.
HB 133-AK ED SAVINGS PROGRAMS/ELIGIBILITY
4:07:13 PM
CO-CHAIR SPOHNHOLZ announced that the first order of business
would be HOUSE BILL NO. 133, "An Act relating to the Alaska
savings program for eligible individuals; relating to education
savings programs; relating to the Education Trust of Alaska;
relating to the Alaska advance college tuition savings fund;
relating to the Alaska education savings program for children;
and relating to the Governor's Council on Disabilities and
Special Education."
4:07:47 PM
CO-CHAIR FIELDS moved to adopt the proposed committee substitute
(CS) for HB 133, Version 32-LS0450\I, Bannister, 3/22/21, as the
working document.
4:08:01 PM
The committee took a brief at ease.
4:08:25 PM
CO-CHAIR SPOHNHOLZ objected for the purpose of discussion. She
asked Co-Chair Fields to describe the changes in the CS.
4:08:43 PM
CO-CHAIR FIELDS explained that the substantive change in the
proposed CS is that following discussions with the Department of
Revenue (DOR) and the Department of Health and Social Services
(DHSS), the Achieving a Better Life Experience (ABLE) Act
program will remain under the management of DOR instead of
moving it to DHSS. He shared his understanding that although
there may not be a perfect place for the program, the DOR has
done well managing it thus far and concluded that it should
remain under the jurisdiction of DOR. He noted that DHSS sent a
long email explaining why it was preferable to leave it under
DOR and he is listening to that guidance.
4:09:33 PM
CO-CHAIR SPOHNHOLZ opened public testimony on HB 133.
4:09:41 PM
MICHELE GIRAULT, Key Coalition of Alaska, explained that the
coalition is a statewide advocacy organization representing
stakeholders experiencing disabilities, their family members and
supporters, and service providers. She shared that the passage
of the ABLE Act was life-enhancing for Alaskans with
disabilities and allowed individuals to save money without
jeopardizing their disability benefits. She concluded that the
coalition is in support of HB 133, which as she understands it,
aligns state implementation and language with federal
expectations, language, and intent.
4:11:28 PM
CO-CHAIR SPOHNHOLZ announced that HB 133 was held over. [The
bill was brought back later in the meeting to address the
pending objection to the motion to adopt the proposed committee
substitute.]
HB 121-EDUC.TAX CREDIT: EMPLOYER CHILD CARE COST
4:11:57 PM
CO-CHAIR SPOHNHOLZ announced that the next order of business
would be HB 121, HOUSE BILL NO. 121, "An Act relating to
education tax credits for certain payments and contributions for
child care and child care facilities; and providing for an
effective date."
[The committee set aside HB 121 to take up later in the
meeting.]
4:12:06 PM
The committee took a brief at-ease.
HB 133-AK ED SAVINGS PROGRAMS/ELIGIBILITY
4:12:20 PM
CO-CHAIR SPOHNHOLZ announced that the next order of business
would be a return to HOUSE BILL NO. 133, "An Act relating to the
Alaska savings program for eligible individuals; relating to
education savings programs; relating to the Education Trust of
Alaska; relating to the Alaska advance college tuition savings
fund; relating to the Alaska education savings program for
children; and relating to the Governor's Council on Disabilities
and Special Education."
CO-CHAIR SPOHNHOLZ removed her objection to the motion to adopt
the proposed CS for HB 133, Version 32-LS0450\I, Bannister,
3/22/21, as the working document. There being no further
objection, Version I was before the committee.
[HB 133 was set aside and addressed again later in the meeting.]
HB 121-EDUC.TAX CREDIT: EMPLOYER CHILD CARE COST
4:12:38 PM
CO-CHAIR SPOHNHOLZ announced that the next order of business
would be HOUSE BILL NO. 121, "An Act relating to education tax
credits for certain payments and contributions for child care
and child care facilities; and providing for an effective date."
4:12:41 PM
CO-CHAIR FIELDS moved to adopt the proposed committee substitute
(CS) for HB 121, Version 32-LS0364\B, Nauman, 3/20/21, as the
working document.
4:12:59 PM
CO-CHAIR SPOHNHOLZ objected so that Co-Chair Fields could
describe the proposed changes in the CS.
4:13:05 PM
CO-CHAIR FIELDS explained that some of the changes came about at
the suggestion of the Division of Insurance Director, Lori Wing-
Heier. He directed attention to language in Section 1,
paragraph (7) of the CS [hard copy included in the committee
packet], which clarifies that the tax credits were only to be
used for expenses in the state of Alaska and read as follows:
(7) expenditures made to operate a child care facility
in the state for the children of the taxpayer's
employees;
CO-CHAIR FIELDS added that there are also some conforming
changes regarding the use of ["in the state"] in Section 1,
paragraphs (8) and (9) [on page 2], and also on pages 4, 5, 7,
9, 11, and 13. He reiterated that the only substantive changes
are to clarify that the facilities are "in the state".
4:14:00 PM
REPRESENTATIVE MCCARTY asked whether the change clarifying that
the facilities are in-state would disqualify employees that
travel out of state for work and bring their children from
claiming credit.
CO-CHAIR FIELDS responded that the intent is to avoid giving
Alaska tax credits for operations in other states. He said he
would have to follow up with Ms. Wing-Heier about the type of
situation that Representative McCarty described.
REPRESENTATIVE MCCARTY asked if this covers anyone working in
child care.
CO-CHAIR FIELDS responded that it applies to anyone doing child
care work within the confines of existing child care
regulations. This could be an onsite facility of a licensed
employer or an employer supplying a stipend to a licensed
facility, he continued.
REPRESENTATIVE MCCARTY asked for clarification on whether a
licensed facility could be a "mom and pop" home facility.
CO-CHAIR FIELDS stated that his intent was to include all
facilities that operate within the suite of regulations that the
Department of Health and Social Services (DHSS) oversees, and he
said that he would like to defer to the department when it comes
to a description of those facilities.
REPRESENTATIVE MCCARTY reiterated his question and asked if it
applies to licensed individuals running small child care
operations out of their homes.
CO-CHAIR FIELDS responded that yes, the intention is to include
all legal child care operating facilities, large or small,
onsite or offsite, depending on the nature of the employer
stipend.
4:16:44 PM
CO-CHAIR SPOHNHOLZ offered clarification that this is limited to
licensed facilities. If, for example, a relative provided child
care, it would not apply to the relative unless they were also
licensed.
REPRESENTATIVE MCCARTY thanked her for the clarification.
4:17:20 PM
CO-CHAIR SPOHNHOLZ removed her objection to the motion to adopt
the proposed CS for HB 121, Version 32-LS0364\B, Nauman,
3/20/21, as a working document. there being no objections,
Version B was before the committee.
4:17:40 PM
The committee took an at-ease from 4:17 p.m. to 4:19 p.m.
4:19:40 PM
CO-CHAIR SPOHNHOLZ opened public testimony on HB 121.
4:19:47 PM
OLIVIA FOSTER, Nurse, Providence Valdez Medical Center, shared
that she has been a nurse in Alaska for the past twelve years,
with six of those years spent in Valdez, Alaska. She also noted
that she is a board member of Thread Alaska. She is in support
of HB 121 and stated that she would like to encourage
legislators to pass it. Nurses are the largest sector of the
health profession, she said, and the occupation is projected to
grow at a faster rate than any other occupation from 2016-2026.
As nurses are majority female, many will cut back or leave the
profession all together during childbearing years, which she
said adds to the nurse shortage problem. She shared the
community of Valdez has identified that there is a deficiency in
access to high-quality early childhood learning, which can be a
major barrier to employers in recruiting and maintaining
employees. She opined that the profession of nursing does not
need any additional barriers, though nursing is not the only
profession that is impacted by this problem. To address this
concern, the city of Valdez has formed a "0-3 with Families
Alliance" that consists of nonprofit, city, state, tribal, and
private businesses in the community. She added that although
nonprofit businesses would not be eligible for the changes in
the bill, the private businesses that they partner with would be
eligible. She concluded that HB 121 would supplement access for
Alaska children to safe, high-quality, affordable early
learning, which she opined is imperative to the health and
wellness of all Alaskans.
4:22:08 PM
LAURA NORTON-CRUZ, Volunteer Organizer, Growing Alaska Leaders,
stated that she is in support of HB 121 and thinks that it is
crucial to do everything possible to support access to quality
and affordable child care. She shared that Alaska is one of the
least affordable states in the country for child care, and that
it is important for children to have quality care as it is a
crucial time for brain development. The price in Alaska for
child care is about 17 percent of the average medium income
family, she said, but for lower wage workers the cost can
consist of over half of a worker's income. She concluded that
investing in child care is a smart investment because it
benefits the wellbeing of the families, but also because it
benefits businesses because access to child care improves
employee retention.
4:24:26 PM
CO-CHAIR SPOHNHOLZ, after ascertaining that there was no one
else who wished to testify, closed public testimony on HB 121.
4:24:41 PM
REPRESENTATIVE KAUFMAN asked about the fiscal impact of the
bill. He shared his understanding that it is not neutral to the
balance sheet, and asked if the sponsor knows what the fiscal
impact might be.
CO-CHAIR FIELDS explained that DOR previously testified on the
indeterminate fiscal note that the department submitted in terms
of the tax expenditures based on not knowing how many employers
would participate in the program.
4:25:45 PM
NICOLE REYNOLDS, Director, Tax Division, Department of Revenue,
explained that DOR submitted an indeterminate fiscal note for
the bill because the department was uncertain how many employers
would participate and how many employers would start paying
child care costs to their employees if this credit was imposed.
The department was unable to predict what the impact might be,
but for the education tax credit in general, there is a one-
million-dollar cap across all tax types, she shared. This means
that any one taxpayer cannot exceed that cap annually.
[HB 121 was set aside and addressed again later in the meeting.]
HB 133-AK ED SAVINGS PROGRAMS/ELIGIBILITY
4:27:06 PM
CO-CHAIR SPOHNHOLZ announced that the next order of business
would be a return to HOUSE BILL NO. 133, "An Act relating to the
Alaska savings program for eligible individuals; relating to
education savings programs; relating to the Education Trust of
Alaska; relating to the Alaska advance college tuition savings
fund; relating to the Alaska education savings program for
children; and relating to the Governor's Council on Disabilities
and Special Education."
4:27:21 PM
CO-CHAIR FIELDS moved to report CSHB 133, Version 32-LS0450\I,
Bannister, 3/22/21, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, CSHB 133(L&C) was reported out of the House Labor
and Commerce Standing Committee.
HB 121-EDUC.TAX CREDIT: EMPLOYER CHILD CARE COST
4:27:38 PM
CO-CHAIR SPOHNHOLZ announced that the final order of business
would be a return to HOUSE BILL NO. 121, "An Act relating to
education tax credits for certain payments and contributions for
child care and child care facilities; and providing for an
effective date."
4:27:41 PM
CO-CHAIR FIELDS moved to report CSHB 121, Version 32-LS0364\B,
Nauman, 3/20/21, out of committee with individual
recommendations and the accompanying fiscal notes.
4:27:51 PM
REPRESENTATIVE NELSON objected for purposes of discussion.
4:27:58 PM
REPRESENTATIVE NELSON spoke to his objection. He shared his
opinion that since the state is in a fiscally challenging time
and DOR is unable to project the fiscal impact of the bill, it
would not be prudent to provide this additional benefit. In
addition, he said that he would like to know how many businesses
already provide child care benefits that can be reimbursed with
tax dollars.
4:28:26 PM
REPRESENTATIVE NELSON maintained his objection.
4:28:30 PM
A roll call vote was taken. Representatives McCarty, Schrage,
Snyder, Fields, and Spohnholz voted in favor of the motion to
move CSHB 121, Version 32-LS0364\B, Nauman, 3/20/21, out of
committee with individual recommendations and the accompanying
fiscal notes. Representatives Kaufman and Nelson voted against
it. Therefore, CSHB 121 (L&C) was reported out of the House
Labor and Commerce Standing Committee by a vote of 5-2.
4:29:38 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:30 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 133 Fiscal Note DHSS, 3.18.21.pdf |
HL&C 3/24/2021 3:15:00 PM |
HB 133 |
| CS HB 121 (H)L&C v. B 3.23.21.pdf |
HL&C 3/24/2021 3:15:00 PM |
HB 121 |
| CS HB 133 (H)L&C v. I 3.22.21.pdf |
HL&C 3/24/2021 3:15:00 PM |
HB 133 |
| HB 121 Summary of changes Ver A to Ver B 3.23.2021.pdf |
HL&C 3/24/2021 3:15:00 PM |
HB 121 |