Legislature(2025 - 2026)BARNES 124
01/24/2025 09:00 AM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Overview: Department of Labor & Workforce Development | |
| Presentation: Universal Service Fund | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
January 24, 2025
9:00 a.m.
MEMBERS PRESENT
Representative Zack Fields, Co-Chair
Representative Carolyn Hall, Co-Chair
Representative Ashley Carrick
Representative Robyn Niayuq Burke
Representative Dan Saddler
Representative Julie Coulombe
Representative David Nelson
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
OVERVIEW: DEPARTMENT OF LABOR & WORKFORCE DEVELOPMENT
- HEARD
PRESENTATION: UNIVERSAL SERVICE FUND
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
CATHY MUNOZ, Commissioner
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Co-offered an overview pertaining to the
Department of Labor and Workforce Development.
DAN DEBARTOLO, Director
Central Office
Division of Administrative Services
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Co-offered the Department of Labor and
Workforce Development overview.
CHRISTINE O'CONNOR, Executive Director
Alaska Telecom Association
Anchorage, Alaska
POSITION STATEMENT: Gave the Universal Service Fund
presentation.
CAROLE TRIEM, Governmental Affairs Manager
Alaska Municipal League
Juneau, Alaska
POSITION STATEMENT: Discussed the role of the universal service
fund to Alaska.
ACTION NARRATIVE
9:00:07 AM
CO-CHAIR ZACK FIELDS called the House Labor and Commerce
Standing Committee meeting to order at 9:00 a.m.
Representatives Nelson, Coulombe, Saddler, Burke, Carrick, Hall,
and Fields were present at the call to order.
^OVERVIEW: Department of Labor & Workforce Development
OVERVIEW: Department of Labor & Workforce Development
9:00:27 AM
CO-CHAIR FIELDS announced that the first order of business would
be the Department of Labor & Workforce Development overview.
9:00:47 AM
CATHY MUNOZ, Commissioner, Department of Labor and Workforce
Development, co-offered the Department of Labor and Workforce
Development (DLWD) overview via PowerPoint [hard copy included
in the committee file]. She began on Slide 2, which illustrated
the DLWD operating areas in the state. She mentioned that this
includes: 14 job centers, 9 regional Technical Vocational
Education Program (TVEP) recipients, 30 State Training and
Employment Program (STEP) grantees, 8 construction academies,
the Alaska Technical Vocational Center (AVTEC), and 7 divisions.
On Slide 3, she introduced the leadership team and described
that it had recently met to plan goals for the upcoming year.
COMMISSIONER MUNOZ moved to Slide 4 and described the highlights
from 2024. She said that this included opening the Office of
Citizenship Assistance to assist legal immigrants with
employment and training and to assist employers with visa
utilization and educational opportunities. She noted that
training support from the Alaska Job Center Network went up
around 85 percent from 2023-2024. She spoke about collaboration
with the Department of Education and Early Development (DEED) on
various projects including teacher apprenticeships, a career
guide project, and work in rural districts. She also
highlighted the implementation of the Alaska Occupational Safety
and Diversionary Program which allows businesses with first-time
citations to go through consultation and training to improve
operations and waive penalties. She noted that this program is
the first of its kind nationwide and has fostered interest from
other states. She remarked on the implementation of a skill
bridge program between DLWD and the U.S. Department of Defense
(DoD). She also explained the improvements to the certificate
of fitness process. Presenting Slide 5, she provided
elaboration on the Office of Citizenship Assistance.
9:06:15 AM
Presenting Slides 6-8, she described that one of DLWD's units is
the Research and Analysis Section, which works to describe
socioeconomic information pertaining to Alaska. This includes
providing up-to-date information on the economy, and both job
and population projections. She noted steady job growth heading
into 2025, with notable areas of growth in the construction and
healthcare industries. She highlighted projected population
growth and demonstrated that some areas are projected to grow,
and others are set to decline.
9:07:55 AM
COMMISSIONER MUNOZ, presenting Slide 9, described the Alaska
Workforce Investment Board, a volunteer board appointed by the
governor that oversees grants and provides funding
recommendations. Slide 10 showed a screenshot from the Alaska
Jobs Website, which falls under the Division of Employment and
Training Services. She noted that recently media focus has been
on targeting younger audiences and provided an explanation.
Presenting Slide 11, she mentioned the Unemployment Insurance
Unit and showed a graph that illustrates the Unemployment
Insurance Trust Fund.
9:09:40 AM
COMMISSIONER MUNOZ, presenting Slide 12, described the Alaska
Vocational Technical Center in Seward, which is nationally
accredited and provides training opportunities in a variety of
fields. On Slide 13, she described the Division of Vocational
Rehabilitation, which oversees: the Vocational Rehabilitation
Program, the Mature Alaskans Seeking Skills Training Program,
the Disability Determination Services Program, and the Business
Enterprise Program. Presenting Slide 14, she described the
Division of Labor Standards & Safety, which includes the Alaska
Occupational Safety and Health (AKOSH) Unit, the Mechanical
Inspection Unit and the Wage and Hour Unit. She remarked that
Alaska is 1 of 26 states to have a state-specific OSHA program.
COMMISSIONER MUNOZ, presenting Slides 15-18, described the AKOSH
Diversionary Program. It eliminated more than $600,000 in
penalties last year and it is an opportunity for businesses that
have received first-time citations to work with the Consultation
Unit to address safety concerns without financial hardship to
the business. The Mechanical Inspection Unit oversees the
certification of fitness process for electrical and plumbing
work. Currently, reciprocal agreements exist with 13 states for
the electrical certification and DLWD is working on increasing
reciprocity agreements. She remarked that last year the
legislature approved legislation to increase provisional
licensing and work was underway to accommodate these provisional
licenses. She noted that federal/military credits and third-
party testing is part of the process. She then explained the
major responsibilities of the Workers' Compensation Unit and
pointed out that one such responsibility was the Fisherman's
Fund.
9:17:10 AM
DAN DEBARTOLO, Director, Central Office, Division of
Administrative Services, Department of Labor and Workforce
Development, as co-presenter of the Department of Labor and
Workforce Development Overview, brought the committee's
attention to Slide 19, which described staffing over a 15-year
period. He mentioned that the department was budgeted for 939
permanent positions in 2009 and the budget allowed for 718
positions at the start of the past fiscal year. He compared
various vacancy rates for previous years, including last year.
Presenting Slide 20, he described staffing by average age within
DLWD and compared them to statewide averages. He noted that
DLWD employees have the highest average age of any department in
Alaska. He noted that a possible explanation for the difference
may have to do with culture and other work dynamics.
9:20:31 AM
MR. DEBARTOLO, presenting Slide 21, described retirement
eligibility by division. He said approximately 20 percent of
active employees are nearing retirement. He mentioned that a
current concern is that a lot of institutional mileage has been
leaving, which creates both strain within the department and
difficulties for training purposes. He mentioned that it has
also led to rapid promotion and the criteria required for
promotions isn't the way it was historically. He noted that
better accession planning is a major point of focus within the
department. Presenting Slide 22, he described staffing vacancy
rates and compared them to pre-pandemic vacancy rates. He
remarked that department vacancy rates are higher than usual at
22.2 percent; pre-pandemic rates were around 17 percent. He
mentioned that the graph utilized was pulled from NEOGOV, the
public sector vendor that hosts Workplace Alaska job postings.
He remarked that NEOGOV looked at 45 million applications prior
to the pandemic and applications now. He noted that while jobs
increased, the total applications did not increase
comparatively. He mentioned that this is not just a public
sector issue, but job and applicant proportions will challenge
all departments within the state.
9:24:37 AM
CO-CHAIR FIELDS remarked on the importance of accession planning
and opined that DLWD is a good place to work.
9:25:04 AM
COMMISSIONER MUNOZ responded to questions from various committee
members. She said that she would follow-up with a breakdown of
those professions in demand for training. She said the
legislature in 2006 passed a law to form the Office of
Citizenship Assistance, but it was never fully operational. She
stated that given the scale of legal immigration, the department
needed to do more to be a resource for individuals coming to
Alaska. She said the department is excited to get the outcome
of a job classification study and understand how it impacts the
department. She spoke about the Office of Citizenship
Assistance and how it helps with employment and transition into
Alaska and said she would follow-up with how many have been
served by the office. She clarified that the 80 percent figure
shown on slide 4 pertains to industry certified trainings that
have been completed and supported from the job center network.
She reaffirmed that this is largely a result of targeting
younger populations. She explained that there are several
funding streams from the Federal Government, some of which are
targeted funding for specific groups. She explained that both
construction and healthcare were current high demand areas and a
focus of the department.
9:37:04 AM
The committee took an at-ease from 9:37 a.m. to 9:39 a.m.
^PRESENTATION: Universal Service Fund
PRESENTATION: Universal Service Fund
9:39:25 AM
CO-CHAIR FIELDS announced that the final order of business would
be the Universal Service Fund presentation.
CO-CHAIR FIELDS, as co-presenter, mentioned that a lawsuit in
the Lower-48 endangers this fund, and it should be on the
committee's radar for any potential action. He began a
PowerPoint presentation [hard copy included in the committee
file]. In Slide 1, he described what the universal service fund
is, how it was formed, and the implications associated with its
removal. In Slide 2, he highlighted a map of the total
financial impact of the fund and what areas benefit from it. In
Slides 3 and 4, he talked about the different areas and groups
that would be impacted by the loss of the fund. He presented
Slide 5 and compared the financial support from the fund
relative to other states. He noted that Alaska is vulnerable
due to its unique nature. In Slide 6, he described what would
happen if the plaintiffs were successful in removing the
universal service fund.
9:43:24 AM
CHRISTINE O'CONNOR, Executive Director, Alaska Telecom
Association, discussed the role of the universal service fund.
She said that it is not overstating to say that the removal of
this fund presents a grave threat to Alaska. She provided a
background to the laws passed by Congress that help define the
universal service fund. She noted that the fund allows the
state to make forward progress, maintain infrastructure, and
keep rates fair. She said that current projects are in jeopardy
due to their reliance on the fund.
9:46:02 AM
CAROLE TRIEM, Governmental Affairs Manager, Alaska Municipal
League, discussed the importance of the universal service fund
to Alaska. She remarked that it impacts schools, healthcare,
and critical infrastructure. She noted that local governments
in Alaska rely on this fund, especially rural communities. She
explained that it helps mitigate the high cost of networks. She
mentioned that many rural communities are working to overcome
connectivity issues, and the universal service fund helps with
those projects. She explained that the Schools and Libraries
Program ("E-Rate") funding is almost equal to contributions from
local governments. She said that it is not feasible for local
governments to foot the bill without fund support.
9:48:13 AM
MS. O'CONNOR responded to questions from committee members. She
elaborated on the recent court rulings and expressed concern
that Supreme Court decisions have been known to allow room for
redefinition. Additionally, she remarked that if the fund were
lost, telecom companies would find themselves in a no-win
situation regarding service obligations. She related that the
funding of recipients is program specific and funding streams
depend on the program. She remarked that the most apparent
concern is a funding lapse. She said that if the Supreme Court
made a worst-case decision, then there would be about one month
until funds stop. Resources to continue telecom operations
without the fund are limited and operations couldn't continue
for long; however, telecom obligations to continue service do
exist.
9:58:00 AM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
9:58 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DOLWD overview HL&C.pdf |
HL&C 1/24/2025 9:00:00 AM |
|
| Universal Service Fund Presentation - 1.24.25 Final.pdf |
HL&C 1/24/2025 9:00:00 AM |