02/19/2025 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Presentation: Child Care Update | |
| HB23 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 20 | TELECONFERENCED | |
| *+ | HB 23 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 19, 2025
3:19 p.m.
DRAFT
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
MEMBERS ABSENT
Representative David Nelson
COMMITTEE CALENDAR
PRESENTATION: CHILD CARE UPDATE
- HEARD
HOUSE BILL NO. 23
"An Act relating to the definition of 'employer' for the
purposes of the State Commission for Human Rights."
- HEARD & HELD
HOUSE BILL NO. 20
"An Act relating to fees for paper documents; and relating to
unfair trade practices."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: HB 23
SHORT TITLE: APPLICABILITY OF HUMAN RIGHTS COMMISSION
SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON
01/22/25 (H) PREFILE RELEASED 1/10/25
01/22/25 (H) READ THE FIRST TIME - REFERRALS
01/22/25 (H) L&C, FIN
02/19/25 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
HEIDI HEDBERG, Commissioner
Department of Health
Juneau, Alaska
POSITION STATEMENT: Co-offered presentation on Child Care
Update via PowerPoint, titled "Governor's Task Force on Child
Care."
LEAH VAN KIRK, Healthcare Policy Advisor
Department of Health
Juneau, Alaska
POSITION STATEMENT: Co-offered presentation on Child Care
Update via PowerPoint, titled "Governor's Task Force on Child
Care."
REPRESENTATIVE ANDY JOSEPHSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave introductory remarks and answered
questions from committee members as prime sponsor of HB 23.
KEN ALPER, Staff
Representative Andy Josephson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As staff to Representative Josephson, prime
sponsor of HB 23, gave an introductory presentation via
PowerPoint, titled "HB 23: Applicability of Human Rights
Commission" and answered questions from committee members.
ACTION NARRATIVE
3:19:31 PM
CO-CHAIR CAROLYN HALL called the House Labor and Commerce
Standing Committee meeting to order at 3:19 p.m.
Representatives Saddler, Burke, Carrick, Fields, and Hall were
present at the call to order. Representative Coulombe arrived
as the meeting was in progress.
^PRESENTATION: Child Care Update
PRESENTATION: Child Care Update
3:20:13 PM
CO-CHAIR HALL announced that the first order of business would
be the Child Care Update presentation.
3:20:52 PM
HEIDI HEDBERG, Commissioner, Department of Health (DOH), began
by stating the task force completed its work in fall of 2024.
She referred to slide 1 of a PowerPoint, titled "Governor's Task
Force on Child Care" [hard copy included in the committee file],
stating that she would cover both the recommendations that have
been implemented by the State of Alaska and the work that is
currently underway. She reminded committee members that in
April 2023, Governor Mike Dunleavy signed the administrative
order to create the taskforce on child care, with the purpose of
addressing longstanding issues surrounding child care,
identifying solutions, and making recommendations on increasing
access to available, quality child care. She further stated
that a robust child care system is critical to the healthy
development of children. Additionally, a robust child care
system supports parents in entering the workforce.
COMMISSIONER HEDBERG referred to slide 2, reporting that the
taskforce concluded its studies in fall 2024 and wrote two
reports with 56 recommendations. Slide 2, which represents the
focus areas [of the taskforce], read as follows [original
punctuation provided]:
Areas of Focus
1)Background checks
2)Licensing
3)Workforce Support
4)Public/Private Partnerships
5) Tribal Authority
6) Accessibility
7) Affordability
8) Quality
COMMISSIONER HEDBERG moved to slide 3. She stated that
throughout the taskforce, there was a lot of robust
participation by both public and media at each meeting. She
stated DHSS received presentations by local childcare providers,
state providers, the Division of Public Assistance (DPA), and
national perspectives on landscape, problems, and solutions [of
child care]. She gave an overview of the contractual work of
the taskforce, represented on slide 3 as Workforce Study, Market
Price Study, and Cost of Care Study. Additionally, she noted
that a contractor conducted focus group studies, with feedback
from 130 families, providers, and businesses to ensure that the
work of the taskforce was echoing the focus groups.
3:24:22 PM
COMMISSIONER HEDBERG gave an overview of the elements that made
up the Workforce Study, which read as follows on slide 4
[original punctuation provided]:
Wages & Benefits
Supports & retain the workforce
Healthy Workplace Conditions
Wellness for children & caregivers
Strengthen Career Pathways
Professional development & training
System Coordination
Shared values & goals support improved systems
Small Business Supports
Optimized supports for smaller businesses
COMMISSIONER HEDBERG noted that it became evident during the
interview process that child care workers are "100 percent
engaged and dedicated to their work."
COMMISSIONER HEDBERG gave a detailed explanation of the elements
of the workforce study, beginning with wages & benefits. She
stated the purpose of wages & benefits was to support and retain
the workforce. She stated childcare providers desired access to
health insurance, leave, and retirement. Additionally, she
noted that wages & benefits varied across the state. She moved
to healthy workplace conditions, the second area of study, whose
purpose was to provide wellness for children & caregivers. She
reported that interviews highlighted burnout experienced by
[child care] providers. She noted that elements of workplace
conditions were driving providers away, including administrative
burdens, challenging behavior from children post [COVID-19]
pandemic and a lack of infrastructure for adults in child care
facilities.
COMMISSIONER HEDBERG moved to the third area of study,
strengthen[ing] career pathways. She noted the purpose of this
study was professional development & training [of child care
providers]. She reported that there has been a decline in
individuals entering early childhood [education]. She
emphasized the importance of building educational pipelines
through apprenticeship programs, increasing access to [child
care] certifications, and increasing access to university
programs related to child care.
3:30:45 PM
COMMISSIONER HEDBERG highlighted the last two areas of the
workforce study: system coordination and small business
supports. She stated the purpose of system coordination was to
align values & goals. She reported a shared desire from
stakeholders to improve the [child care] system as a whole. She
stated the purpose of small business supports was to optimize
supports for smaller businesses. She clarified for the
committee that she was primarily referring to in-home child care
businesses when talking about small businesses. She reported,
from interviews, that in-home providers need additional support
in the form of technical assistance in licensing, support in
operating a business, and start up funding. Commissioner
Hedberg concluded by noting Ms. Van Kirk and herself would cover
what [DOH] has done already to address the issues and
recommendations uncovered by the taskforce.
3:32:32 PM
LEAH VAN KIRK, Healthcare Policy Advisor, Department of Health,
continued the presentation via PowerPoint, titled "Governor's
Task Force on Child Care." She moved to slide 5, stating the
goal of the task force is to ensure child chare is affordable
for all families. She reported that 7 out of 10 children do not
use a subsidy for child care, meaning most families [in Alaska]
are paying for child care. She gave the key points of slide 5,
which read as follows [original punctuation provided]:
State rates influence prices set by child care
businesses
Careful consideration must be taken to set rates that
are not beyond what families can pay who do not use a
subsidy
MS. VAN KIRK moved to slide 6, explaining that the child care
subsidy program is federally funded and aids with child care to
families who are considered "low to moderate" income. In
Alaska, she explained, a market price survey and, for the first
time, a cost of care study were both used to determine child
care subsidy rates. She expounded on the market price survey,
which she noted is administered to child care providers, and the
cost of care study. She shared the following information from
slide 6 [original punctuation provided]:
Market Price Survey
Conducted every two years
Sets rates based on the 75th percentile
Market analysis conducted through a survey
Cost of Care Study
Conducted for the 1st time in Alaska
True cost of providing child care in Alaska per child
Home & center-based costs
Alternate scenarios wages, benefits, facilities,
quality
Ms. Van Kirk noted that the cost of care study looked at the
cost of commercial rent, home mortgages, the cost to build a
facility, and expanded space options - i.e. spaces that are
beyond the state licensing requirements for space. Finally, she
noted that the cost of alternative facilities was compared
between urban and rural areas of Alaska.
3:36:29 PM
MS. VAN KIRK moved to slide 7, drawing committee members'
attention to the model infographic representing the operating
cost components [of child care]. She explained that revenue
streams based on capacity were also assessed as part of the cost
of care study. She noted that home-based child care facilities
can serve up to 8 children, while licensed facilities can serve
up to 9 or 12, depending on being inside or outside the
Municipality of Anchorage (MOA). She reported the following as
"key assumptions ... established as part of the cost of care
study" in the model: operating based on group sizes and ratios
according to the state licensing standards; operating at 85
percent of licensed capacity; operating for a full day; and 3
percent of non-collectible revenue. The infographic included
utilities; wages and salaries; food and food service supplies;
classroom and educational supplies; facilities costs - rent/debt
services; employee benefits; telephone and internet; office
supplies and equipment; licensing, permit, audit fees or costs;
building maintenance/repairs; training; and insurance -
building, general/professional liability. She clarified that
the model was "not adjusted downward to reflect any type of in-
kind support or other measures to reduce costs," such as reduced
rent from partnerships with schools or churches, for example.
Ms. Van Kirk moved to slide 8, stating that the current rate-
setting methodology is not sustainable for child care businesses
in Alaska. She stated a market-price survey sets rates based on
the market and does not support the actual costs of child care
businesses currently operating in Alaska. She asserted that the
actual cost of care methodology would help set rates based on
actual business costs.
MS. VAN KIRK moved to slide 9, which represented the key
highlights & recommendations of the taskforce. She noted there
are gaps between subsidy rates and the actual cost of care in
all settings. She reported that, in home-based settings, there
are gaps between $12 and $140 per child per month. In licensed
child care facilities, she reported, there are gaps between $360
and $653 per child [per month]. She noted these gaps are
significant. Further, she reported the cost of care study found
that rates for home-based care are approaching the actual cost
of care. She also noted there are gaps of costs dependent on
region and asserted that aligning subsidy rates with regional
costs would support child care businesses, particularly in rural
areas of Alaska. She commented that most child care businesses
in rural Alaska are home-based. She stated that in rural areas
of Alaska, individuals may receive cost-of-living adjustments.
She provided an example about an office assistant working in
Anchorage versus an office assistant working in Bethel.
MS. VAN KIRK spoke to public private partnerships. She noted
that the cost of care study additionally looked at the
relationship between provider revenue and cost of delivering
care, and it proposed approaches to increase revenue and
decrease operating costs. She stated that many child care
businesses are operating under the capacity of their license.
She reported that, were a child care facility to operate at full
capacity per the study model, the cost of care per child per
month could decrease by $90 and $220 per child per month.
Additionally, she asserted that investing in partnerships could
support mutual employer needs and child care businesses. She
asserted that public private partnerships could help reduce the
fixed operational costs of child care that act as barriers. She
noted that leveraging public spaces, such as classrooms or
schools willing to partner to with child care businesses, would
be beneficial given that they [classrooms and schools] are
already designed for children. She concluded that schools are a
great opportunity, given that typically, they already meet the
health and safety federal requirements regarding child care
facilities.
3:43:55 PM
MS. VAN KIRK moved to slide 10 and gave an overview of the key
accomplishments of the taskforce, based on the issues and
recommendations covered at the beginning of the presentation.
She began with workforce supports, explaining that DOH, through
regulation, removed the child care associate requirement and the
child care assistance regulations (formerly requiring family
members giving child care assistance in homes to have a high
school diploma), broadened administrator qualifications, aligned
licensing and child care assistance regulations, and removing
the requirement for administrators to be on-site at all times,
allowing delegation of authority to appropriate staff members
during times of absence. Additionally, she stated that [DOH]
increased its support for [professional development] via
educational pipelines through partnerships with UAA and
University of Alaska Fairbanks (UAF) that support child care
apprenticeships and early childhood educational programs.
MS. VAN KIRK continued to the second item on accomplishments of
the taskforce - affordability - and stated most families can't
afford child care and "often pay more for child care than they
might for a mortgage." She reported that [DOH] began covering
the cost of care for children in OCS custody, explaining that in
the past, foster families were required to cover any additional
costs that was not covered by subsidies. Additionally, [DOH]
distributed $7.5 million to providers for operational costs.
She reported that 357, or 90 percent of, providers received this
financial support. Ms. Van Kirk continued to the third item on
accomplishments of the taskforce, quality, which read as follows
[original punctuation provided]:
Quality
Quality Recognition & Improvement System (QRIS) fully
developed
MS. VAN KIRK continued to the fourth item on accomplishment of
the taskforce - tribal authorities - which read as follows
[original punctuation provided]:
Tribal Authority
.notdefTribal child care exempt from state licensure
.notdefTribal Health & Safety standards acknowledged
MS. VAN KIRK talked about the fifth accomplishment, regarding
licensing and background checks. She stated that [DOH] has
implemented the Alaska Child Care Information System ("AKCCIS")
in an effort to modernize systems. She explained that through
AKCCIS, the application and tracking process for licensure is
streamlined, additionally creating communication transparency.
She reported that [DOH] has opened one of three portals for
staff. The second portal will be for families, and the third
portal will be for child care providers. She concluded slide 10
by announcing that [DOH] had purchased digital fingerprinting
equipment, which would eventually eliminate the need to mail
fingerprints via the postal system.
3:49:30 PM
MS. VAN KIRK moved to slide 11 and gave an overview of three
areas of focus over the next 12 to 18 months: decreasing
barriers; child care as a business; and advancing a sector.
Under decreasing barriers, Ms. Van Kirk noted, an early
childhood public opinion survey found that 50 percent of parents
who responded were using some form of unlicensed child care. In
response to that, the taskforce examined models developed by
other states that allow for small, license-exempt providers to
operate out of their homes, called families, friends, and
neighbors. Ms. Van Kirk highlighted the importance of
supporting public private partnerships under child care as a
business. She stated that [DOH] would be inventorying state and
public spaces that might be available for child care facilities,
thus integrating them into existing hospitals, schools,
businesses and reducing overall operational costs.
Additionally, she noted [DOH] would be focusing on start-up and
expansion support, further noting that home-based child care
providers, particularly in rural communities, may need to make
renovations to their homes. She also stated that [DOH] would
focus on the expansion of existing larger child care facilities
and assisting in technical costs of starting a child care
business. The last item she spoke to under child care as a
business was using the cost of care study to inform rate
methodology, taking into consideration the cost of care,
families who may not use the subsidy program, and "finite"
federal funding. She concluded by highlighting the importance
of developing and maintaining a workforce [for the child care
sector].
MS.VAN KIRK spoke to the last area of focus: advancing a
sector. She emphasized the need to support burnout, oftentimes
related to children with more challenging behaviors. She stated
[DOH] is seeing and hearing a need for increased support for
infant and early childhood mental health, noting that
intervention in early childhood can change the trajectory of
one's life. She concluded that [DOH] has many "regulatory
packages" for the upcoming year [2025] to address updating rate
methodology and rates, the amount of co-payments for parents,
geographic differentials, increased eligibility, and child care
grants to incentivize child care providers to provide care for
children with special needs, children who might be experiencing
homelessness, infants, and toddlers. She invited questions from
committee members.
3:55:15 PM
REPRESENTATIVE FIELDS queried the status of implementation of
[Senate Bill 189] from the Thirty-Third Alaska State
Legislature.
MS. VAN KIRK noted that Senate Bill 189 passed but cannot be
implemented without appropriations. She reported that [DOH] is
in the process of drafting regulations.
3:55:47 PM
CO-CHAIR HALL thanked the invited presenters and noted that
committee members could submit additional questions in writing.
3:56:08 PM
The committee took an at-ease from 3:56 p.m. to 3:57 p.m.
HB 23-APPLICABILITY OF HUMAN RIGHTS COMMISSION
3:57:41 PM
CO-CHAIR HALL announced that the final order of business would
be HOUSE BILL NO. 23, "An Act relating to the definition of
'employer' for the purposes of the State Commission for Human
Rights."
3:58:02 PM
REPRESENTATIVE ANDY JOSEPHSON, Alaska State Legislature, as
prime sponsor, presented HB 23. He began by stating that HB 23
would make non-profit organizations subject to the jurisdiction
of the [Alaska State Commission on Human Rights (ASCHR)]
regarding claims of discrimination related principally to
employment. He further remarked that there are currently 44,000
citizens not protected under Alaska law from discrimination. He
asserted that the Equal Employment Opportunity Commission
(EEOC), a federal agency, provides nominal protections to these
individuals not currently protected by ASCHR. He further
asserted that protection under EEOC is inadequate. He explained
that Robert Corbisier, the director of ASCHR, brought HB 23 to
his attention. He reported that ASCHR completed unanimous
resolutions in support of the provisions of HB 23 and pointed
out that all of the current appointees [of ASCHR] are from
Governor Mike Dunleavy. He gave an anecdote about why the
proposed legislation is necessary for the protection of
employees of non-profit organizations, explaining that [ASCHR]
screens complaints [of violations] and facilitates conciliation
between employee and employer. He concluded be giving an
overview of past iterations of the proposed legislation and
suggestions for change [to HB 23] from ASCHR.
4:04:12 PM
KEN ALPER, Staff, Representative Andy Josephson, Alaska State
Legislature, gave a PowerPoint [hard copy included in the
committee file], titled "HB 23: Applicability of Human Rights
Commission" on behalf of Representative Josephson, prime sponsor
of HB 23. He began an overview of ASCHR on slide 2, which read
as follows:
• State agency that enforces the Alaska civil rights
laws in AS 18.80
• Seven commissioners appointed by the Governor and
confirmed by the Legislature
• Small staff and office in Anchorage
• Statewide powers to accept and investigate complaints
for individuals across all regions of the state
Mission Statement:
To eliminate and prevents discrimination for all
Alaskans
In Alaska, it is illegal to discriminate in:
• Employment
• Places of Public Accommodation
• Sale or Rental of Real Property
• Financing and Credit
• Practices by the State or its Political Subdivisions
Because of:
• Race
• Color
• Religion
• Sex
• National Origin
• Disability
MR ALPER moved to slide 3, an overview of the jurisdiction of
various human rights groups, including ASHRC, which read as
follows [original punctuation provided]:
U.S. Equal Employment Opportunity Commission
(EEOC) protects non-profit employees from
discrimination if the employer has at least 15
employees
Municipal commissions, like the Anchorage Equal
Rights Commission (AERC) and the Juneau Human Rights
Commission (JHRC), cover non-profit employees in those
communities
The State commission has no jurisdiction to
accept or pursue discrimination cases brought to them
by non-profit employees
(This is due to language in the definition
of "employer" in the ASHRC statutes, AS 18.80.300(5))
MR. ALPER clarified that a non-profit is not currently included
under the definition of "employer" for ASHRC. Specifically, a
non-profit with fewer than 15 employees, which constitutes the
majority of non-profits according to Mr. Alper, could not seek
out help from ASHRC for discrimination.
MR. ALPER moved to slide 4, drawing committee members' attention
to a bar graph representing a breakdown of the types of non-
profit jobs in Alaska. He noted that a study from the Foraker
Group reported that there are 5,688 non-profits in Alaska, with
35,302 directly employed persons - roughly 12 percent of the
state's workforce. He further noted that only one-fourth of the
non-profits have more than a single employee, stating HB 23
would not apply to the other three-fourths [non-profits with a
single person].
MR. ALPER moved to slide 5, drawing committee members' attention
to an annual report from ASCHR. He highlighted one of its
legislative priorities, which read as follows [original
punctuation provided]:
"Work with the State Legislature to add non-profits to
ASCHR's jurisdiction in an effort to include
protections for 44,000 currently unprotected workers"
MR. ALPER moved to slide 6 and gave an overview of the
provisions under HB 23, which read as follows [original
punctuation provided]:
What does the bill do?
Exactly what the commission asked for in their
resolution
Changes definition of "employer" to include non-
profit organizations
The change in HB23 only applies to the State
Commission for Human Rights [AS 18.80.300(5)]
Retains the exceptions for religious and
fraternal organizations
MR. ALPER moved to slide 7, giving on overview of other
recommendations/requests from ASCHR, which read as follows
[original punctuation provided]:
1. Additional / alternative clarifying language in
the definition of "employer"
2. Change name of the commission to the Alaska State
Commission for Civil Rights
3. New statute saying that the governor can only
remove a commissioner for cause (incompetence,
neglect, misconduct, etc.)
4. Change the timing of their annual report to
November 15, and allow for it to be provided
electronically
All these changes were incorporated into a previous
version of this bill by the House Judiciary Committee
on 5/8/23, as work draft CSHB181(JUD)\U
MR. ALPER concluded by inviting questions from committee
members.
4:09:30 PM
REPRESENTATIVE JOSEPHSON indicated he would welcome all four
additional changes, cited on slide 7 of the PowerPoint, which
ASCHR requested in its report.
4:10:24 PM
CO-CHAIR HALL noted that Robert Corbisier, the executive
director of ASCHR, was available for questions.
4:10:37 PM
REPRESENTATIVE SADDLER queried why the four additional changes,
cited on slide 7 of the PowerPoint, are not included in the
current version of the proposed legislation.
REPRESENTATIVE JOSEPHSON offered his primary objective of
covering non-profits but welcomed the additional changes. He
spoke to one recommendation for change: changing the name of
the commission to the Alaska State Commission for Civil Rights.
He explained that the commission receives phone calls regarding
matters that it cannot attend to [human rights abuses] and
believes the name change would "speak better to their mission."
He urged members to entertain the proposed changes and noted
that the additional changes have bipartisan support.
REPRESENTATIVE SADDLER repeated his question.
REPRESENTATIVE JOSEPHSON replied that his decision not to
include the additional changes was incidental.
REPRESENTATIVE SADDLER additionally asked what ASCHR does that
EEOC does not do.
REPRESENTATIVE JOSEPHSON stated that he is trying to expand, not
change, the jurisdiction of ASCHR [to include non-profits]. He
gave an anecdote about people with red hair as an example of
possible discrimination.
4:14:23 PM
MR. ALPER added that proposed legislation would allow ASCHR to
cover employees working for non-profits with fewer than 15
employees, which EEOC currently does not cover.
4:14:44 PM
REPRESENTATIVE COULOMBE asked if non-profits were aware of HB 23
and whether there had been any opposition to the proposed
legislation from non-profits.
REPRESENTATIVE JOSEPHSON stated he had an informal conversation
with Laurie Wolf, president and CEO of the Foraker Group, who
shared some concerns about the changes [to ASCHR]. He stated
that the proposed legislation is bipartisan due to its
reintroductions and changes over the years.
4:16:14 PM
CO-CHAIR HALL announced that HB 23 was held over.
4:16:23 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:16 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2025 Child Care House Labor Commerce 2.19.25.pdf |
HL&C 2/19/2025 3:15:00 PM |
Informational Presentation-Dept of Health Child Care Update |
| 1 HB23 Sponsor Statement 2.11.2025.pdf |
HL&C 2/19/2025 3:15:00 PM |
HB 23 |
| 2 HB 23 Sectional Analysis 2.11.2025.pdf |
HL&C 2/19/2025 3:15:00 PM |
HB 23 |
| 3 HB0023A.pdf |
HL&C 2/19/2025 3:15:00 PM |
HB 23 |
| 4 HB23 Supporting Document- NCSL Table Employment Discrimination Statutes.pdf |
HL&C 2/19/2025 3:15:00 PM |
HB 23 |
| 5 HB23 Supporting Document- ASCHR resolution 2022-4.pdf |
HL&C 2/19/2025 3:15:00 PM |
HB 23 |
| 7 HB23 Supporting Document Foraker Group Presentation.pdf |
HL&C 2/19/2025 3:15:00 PM |
HB 23 |
| 8 HB23 Supporting Document-Sponsor PPT 2.18.2025.pdf |
HL&C 2/19/2025 3:15:00 PM |
HB 23 |