Legislature(2025 - 2026)BARNES 124

01/24/2025 09:00 AM House LABOR & COMMERCE

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Audio Topic
09:00:07 AM Start
09:00:27 AM Overview: Department of Labor & Workforce Development
09:39:25 AM Presentation: Universal Service Fund
09:58:00 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ Overview: Department of Labor & Workforce TELECONFERENCED
Development by Commissioner Cathy Munoz;
Dan DeBartolo, Administrative Services Director
+ Presentation: Universal Service Fund by TELECONFERENCED
Christine O'Connor, Alaska Telecom Association;
Nils Andreassen, Alaska Municipal League
**Streamed live on AKL.tv**
                    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