02/17/2015 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Overview: Alaska Maritime Workforce Development Plan | |
| SB41 | |
| SB33 | |
| SB34 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 41 | TELECONFERENCED | |
| *+ | SB 33 | TELECONFERENCED | |
| *+ | SB 34 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 17, 2015
1:29 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Cathy Giessel, Vice Chair
Senator Gary Stevens
Senator Johnny Ellis
MEMBERS ABSENT
Senator Kevin Meyer
COMMITTEE CALENDAR
OVERVIEW: ALASKA MARITIME WORKFORCE DEVELOPMENT PLAN
- HEARD
SENATE BILL NO. 41
"An Act relating to criminal history record checks for
psychologists and psychological associates; and providing for an
effective date."
- MOVED SB 41 OUT OF COMMITTEE
SENATE BILL NO. 33
"An Act relating to remittance of tire fees; and providing for
an effective date."
- HEARD & HELD
SENATE BILL NO. 34
"An Act relating to investment of the power cost equalization
endowment fund; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 41
SHORT TITLE: PSYCHOLOGIST & ASSOC CRIM HISTORY CHECKS
SPONSOR(s): SENATOR(s) GIESSEL
02/04/15 (S) READ THE FIRST TIME - REFERRALS
02/04/15 (S) L&C, JUD
02/17/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 33
SHORT TITLE: FEES FOR TIRES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/30/15 (S) READ THE FIRST TIME - REFERRALS
01/30/15 (S) L&C, FIN
02/17/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 34
SHORT TITLE: PCE ENDOWMENT FUND INVESTMENT
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/30/15 (S) READ THE FIRST TIME - REFERRALS
01/30/15 (S) L&C, FIN
02/17/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
VINCE O'SHEA, Vice President
Pacific Seafood Processors Association (PSPA)
Anchorage, Alaska
POSITION STATEMENT: Presented the Alaska Maritime Workforce
Development Plan.
MATT ALWARD Vice President
Homer Marine Trades Association (HMTA)
Homer, Alaska
POSITION STATEMENT: Provided supporting testimony for the Alaska
Maritime Workforce Development Plan.
JULIE DECKER, Executive Director
Alaska Fisheries Development Foundation
Anchorage, Alaska
POSITION STATEMENT: Provided supporting testimony for the Alaska
Maritime Workforce Development Plan.
DOUG WARD, Director
Shipboard Development
Vigor Alaska
Ketchikan, Alaska
POSITION STATEMENT: Provided supporting testimony for the Alaska
Maritime Workforce Development Plan.
JANE CONWAY, Staff
Senator Cathy Giessel
POSITION STATEMENT: Provided a sectional analysis for SB 41.
SARA CHAMBERS, Acting Director
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Discussed the fiscal note for SB 41.
ALAN LEVY, L.P.A., Chair
Board of Psychologist and Psychological Associate Examiners
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 41.
DR. PHILLIP BAKER, Chair
Alaska Psychological Association
Anchorage, Alaska
POSITION STATEMENT: Testified that he cannot endorse SB 41 until
all licensed psychologists have reviewed the bill.
ANNA KIM, Chief of Revenue Operations
Tax Division
Department of Revenue (DOR)
Juneau, Alaska
POSITION STATEMENT: Introduced SB 33 on behalf of the
administration.
BRANDON SPANOS, Deputy Director
Tax Division
Department of Revenue (DOR)
Anchorage, Alaska
POSITION STATEMENT: Provided supporting testimony for SB 33.
PAM LEARY, Director
Division of Treasury
Department of Revenue (DOR)
POSITION STATEMENT: Introduced SB 34 on behalf of the
administration.
GARY BADER, Chief Investment Officer
Trusts and Portfolio Management
Department of Revenue (DOR)
POSITION STATEMENT: Provided supporting testimony for SB 34.
ACTION NARRATIVE
1:29:30 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:29 p.m. Present at the call to
order were Senators Ellis, Giessel, Stevens, and Chair Costello.
^Overview: Alaska Maritime Workforce Development Plan
Overview: Alaska Maritime Workforce Development Plan
1:31:10 PM
CHAIR COSTELLO announced the first order of business would be a
presentation on the Alaska Maritime Workforce Development Plan.
1:31:34 PM
VINCE O'SHEA, Vice President, Pacific Seafood Processors
Association (PSPA), stated that PSPA is a trade association of
nine member companies that own and operate 25 seafood processing
plants in Alaska. Collectively, they purchase about 70 percent
on the seafood landed in the state.
He explained that the Workforce Development Plan is a
collaborative effort between the University of Alaska, the
seafood industry, and key state agencies such as the Department
of Labor and Workforce Development (DOLWD) and the Alaska
Department of Fish and Game (ADF&G).
MR. O'SHEA said Alaska is a maritime state and there is
significant demand for skilled workers across the maritime
industry and therefore important job opportunities for
appropriately trained Alaskans. These opportunities exist in
fish harvesting, seafood processing, maritime transportation,
shipbuilding and repair, fisheries science and management, and
mariculture. The goal of the plan was to better link the
maritime employer needs with the entities and agencies
responsible for workforce development. The notion was to enable
more Alaskans to be able to compete for these jobs. The plan
identifies critical labor needs and skills as reported by the
industry and it describes the initial steps toward improving the
alignment between the potential workforce, the industry, and
training providers. Increasing career awareness at the K-12 as
well as high school graduates as well as military veterans is an
important component of the plan.
He emphasized that this is not about spending more money to do
more things. It's about working smarter using existing resources
for education and training. The goal is to drive outcomes that
improve maritime related job opportunities for Alaskans while
strengthening economic competitiveness of Alaskan maritime
industries.
1:35:17 PM
SENATOR STEVENS commented that he's the only committee member
who represents the fishing industry but he believes that more
people from Anchorage work in the industry than in his district.
He asked Mr. O'Shea to discuss the prospects in the next 20-30
years for value added in the seafood industry.
MR. O'SHEA confirmed that the largest concentration of Alaskan
limited entry is held in the Anchorage area. He said high labor
costs are an impediment to finish processing, but the future is
bright nevertheless. The trend likely will be toward
mechanization and automation and the workforce plan is focused
on high tech training so Alaskans will be able to operate and
maintain that machinery.
SENATOR STEVENS said he'd like it on the record that there is a
major processor in Anchorage that employs some 300 people.
MR. O'SHEA added that the name is Copper River Seafoods.
1:37:33 PM
CHAIR COSTELLO asked for suggestions on strengthening
school/business partnerships to at least expose students to
opportunities in the maritime industry before they leave high
school.
MR. O'SHEA replied the Workforce Development Plan clearly
outlines goals to increase communication at the high school
level. Much of it starts at the Board of Education because it
sets priorities within the local school districts. Not everybody
is best suited to go to college and many young people would fit
into the high paying jobs that require technical training, he
said.
1:40:07 PM
MATT ALWARD Vice President, Homer Marine Trades Association
(HMTA), discussed what HMTA has been doing to develop a trained
workforce in Homer working through the high school. Every week
one trade business visits the school and sits down with the kids
and gives them an honest view of what the trade involves, the
entry-level pay, opportunities with developing skills, and the
soft skills they are expected to bring. About 15 students have
attended the first four classes, which is hopeful.
CHAIR COSTELLO asked how the students have reacted.
MR. ALWARD replied they don't ask too many questions but they
pay attention. His high school son has passed along that these
sessions have been a positive topic of conversation among
students. He described one learning period in which students
were able to use a laptop in the classroom to shut off cylinders
and run diagnostic tests on a diesel engine that was running
outside. Boat builders came to the last learning period and
brought a modeling program that got the students' attention. The
idea is to show the students that technology skills are a
necessary part of the trades today.
CHAIR COSTELLO asked him to discuss the necessary skills.
MR. ALWARD cited CAD skills, work ethic, and staying out of
trouble. He tries to let the kids know that trade schools are a
viable option.
1:43:53 PM
JULIE DECKER, Executive Director, Alaska Fisheries Development
Foundation, provided an example of implementing the plan through
a local project. Wrangell received help from the state to build
a boatyard and marine service center. It's in place and the
economic development committee, the businesses working in the
marine service center, and the high school shop teacher are
starting to collaborate. She related an instance when students
were acting ambivalent until a visiting fisherman told them that
he paid the diesel mechanic who work on his boat this year
$100/hour. She emphasized that it's important to communicate
that these are very good jobs "high dollar, blue collar jobs"
that are needed in the local community. The challenge and one of
the reasons for the statewide plan is to encourage collaboration
so that things that are successful on the local level can be
scaled up to a regional or statewide basis.
1:46:03 PM
SENATOR GIESSEL voiced support for the list of soft skills
listed on page 16. Following instructions, functioning in
stressful situations, working independently, self-motivation are
things you learn in life, hopefully from parents.
CHAIR COSTELLO asked Mr. Alward if he assesses habit of mind
skills such as being prepared, following through, and being
timely.
MR. ALWARD confirmed that they emphasize that they're looking
for people with those kinds of skills.
1:47:46 PM
DOUG WARD, Director, Shipboard Development, Vigor Alaska,
reported that they operate both the Ketchikan and Seward
shipyards. He described one high school student with particular
promise who was referred to the shipyard by her welding teacher.
She went through the various industrial processes and spent time
with each of the supervisors. Students do more than just job
shadow; they're given what's called structured on-the-job
training. The intent is to develop a performance-based
apprenticeship program in shipbuilding and repair; the student
would test out through different processes and move up through
the ranks. He noted that there are other success examples in
Seward.
SENATOR STEVENS asked how many people are employed at the peak.
MR. WARD replied they have about 150 employees now and 97
percent are from Ketchikan. They'll hire another 150 between
Ketchikan and Seward as they start building the two new state
ferries. He expressed confidence that the training plan is solid
and based on good practices. He noted that the waiting list of
young people applying for entry-level jobs is long.
SENATOR STEVENS asked if Vigor Alaska could submit a bid to
replace the Tustumena.
MR. WARD said yes; they're looking at that project with great
interest.
CHAIR COSTELLO thanked the presenters and encouraged members to
read through the Alaska Maritime Workforce Development Plan.
1:52:25 PM
At ease
SB 41-PSYCHOLOGIST & ASSOC CRIM HISTORY CHECKS
1:53:31 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 41. "An Act relating to criminal history
record checks for psychologists and psychological associates;
and providing for an effective date."
SENATOR CATHY GIESSEL, sponsor of SB 41, stated that this
legislation provides the opportunity for the regulatory board
for psychologists and psychological associates to perform
criminal background checks. There have been no problems but this
will help ensure that the professionals working in this area are
reputable.
1:54:42 PM
JANE CONWAY, Staff, Senator Cathy Giessel, provided the
following sectional analysis for SB 41.
Section 1 amends AS 08.86.070 by adding new
subsections.
AS 08.86.070(b) imposes a duty on the Board of
Psychologist and Psychological Associate Examiners to
require applicants for licensure as psychologists or
psychological associates to submit fingerprints and
fees necessary to obtain criminal justice information
and a national criminal history record check. The
Subsection authorizes the board to adopt regulations
requiring applicants for renewal of a license to
submit fingerprints and a fee as required in the
subsection.
AS 08.86.070(c) requires the Department of
Commerce, Community and Economic Development to submit
the fingerprints and fees to the Department of Public
Safety to obtain criminal justice information and a
national criminal history check under AS 12.62.
Section 2 adds licensure as a psychologist or
psychological associate under AS 18.86 to the list of
licensed professions for which the Department of
Public Safety may process criminal history records
checks.
Section 3 makes it applicable to applications for
license or renewal filed on or after the effective
date of the act.
Section 4 provides an effective date of July 1, 2015.
1:56:17 PM
SENATOR STEVENS asked if the bill has any requirement other than
a fingerprint.
MS. CONWAY replied the fingerprint is required as part of the
formal application process and it is submitted to the Department
of Public Safety (DPS) for a background check. Responding to a
further question, she said the idea is to check for a criminal
record.
CHAIR COSTELLO asked why this hasn't been done before.
MS. CONWAY replied a number of people have asked that because a
number of other professions that deal with vulnerable
populations are required to have criminal background checks. She
suggested that Mr. Levy might provide an historical perspective.
CHAIR COSTELLO asked Ms. Chambers to discuss the fiscal note.
1:58:18 PM
SARA CHAMBERS, Acting Director, Division of Corporations,
Business and Professional Licensing, Department of Commerce,
Community and Economic Development (DCCED), said the fiscal note
reflects the current $51.50 cost of fingerprinting through DPS
multiplied by the anticipated number of licensees going through
the program the first and subsequent years.
CHAIR COSTELLO clarified that there is no impact to the state
because of receipt authority. The applicants will absorb the
cost of the background check.
MS. CHAMBERS agreed. Responding to a further question she
clarified that the current $51.50 fee is subject to the
regulatory fee change process.
CHAIR COSTELLO asked if this will affect the division's ability
to manage the overall fee structure for the professional
licenses in the state.
MS. CHAMBERS replied she sees no conflict or concern.
2:00:22 PM
SENATOR GIESSEL asked if this board is in deficit or has funds
that would cover any additional costs.
MS. CHAMBERS said she didn't have the figures, but this board
and the division work well together to ensure that revenues
cover expenses.
2:01:00 PM
ALAN LEVY, L.P.A., Chair, Board of Psychologist and
Psychological Associate Examiners, stated that he is also
employed as a therapist in private practice in Anchorage. In
response to the question about why the board doesn't already
have this authority, he explained that psychology as a licensed
profession was created by the legislature in the 1960s when
background checks were expensive and difficult to do. The checks
were typically reserved for military and high governmental
functions that required security clearance.
He explained that for the past eight years the Psychology Board
has been trying to get the authority to do background checks,
but the Department of Law (DOL) opined the board doesn't have
the authority to enact regulations to give itself this power. SB
41 would change the statutes and grant the board the authority.
Background checks are considered best practice and an essential
part of protecting the public.
SENATOR STEVENS asked if licensure exams are required to become
a psychologist.
MR. LEVY explained that a bachelors, masters and Ph.D. are
required and applicants must have graduated from an accredited
institution and meet the criteria laid out in statute and
regulation. The extensive application process includes a self-
disclosure and the board would like the ability to double check
that and look into criminal matters.
He reported that the board is in good fiscal shape. It has had a
budget surplus of over $300,000 for the last several years and
has been working with Ms. Chambers to reduce that surplus while
preserving a cushion.
MR. LEVY informed the committee that 34 states and the District
of Columbia require criminal background checks for psychologists
but Alaska is one of the 17 states that doesn't have that
requirement. He pointed out inconsistencies in Alaska's
licensure requirements. Licensed family and marriage therapists,
licensed clinical social workers, and licensed psychologists are
not required to have a criminal background check but the new
licensed profession of behavior analysts are required to undergo
criminal backgrounds checks. He suggested that at the very least
it makes sense to hold psychologists to the same standard as
behavior analysts.
2:08:13 PM
DR. PHILLIP BAKER, Chair, Alaska Psychological Association,
testified that he cannot endorse SB 41 until all licensed
psychologists have reviewed the bill. The concern is that the
language in the bill isn't specific and the limitations aren't
clear as to what will be done with the information that is
collected for the criminal investigation. The board does support
licensing all psychologists and psychological associates and
believes that the end of June would be a good time to add this
requirement for new and renewal applicants. He offered to work
to flesh the bill out so that everyone who has to submit to it
is more comfortable.
2:12:27 PM
SENATOR GIESSEL explained to Dr. Baker that the bill provides
the authority for the board to write a regulation to require a
criminal background check.
DR. BAKER interjected that the language isn't clear.
SENATOR GIESSEL explained that there are specific laws governing
the way the background checks can be used. The FBI requires the
background check to be held only by the psychology regulatory
board. It cannot be used or shared with anyone else and must be
kept in a locked facility. The details will be fleshed out
later, not in statute.
CHAIR COSTELLO noted that the bill has a judiciary referral.
MR. LEVY clarified that he is not a doctor.
2:15:31 PM
CHAIR COSTELLO closed public testimony.
SENATOR STEVENS said he was comfortable moving the bill.
2:15:54 PM
SENATOR STEVENS moved to report SB 41, labeled 29-LS0170\H, from
committee with individual recommendations and attached fiscal
note(s).
CHAIR COSTELLO announced that, without objection, SB 41 is
reported from the Senate Judiciary Standing Committee.
2:16:18 PM
At ease
SB 33-FEES FOR TIRES
2:18:20 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 33. "An Act relating to remittance of tire
fees; and providing for an effective date." She noted that the
bill was introduced at the request of the governor.
2:19:39 PM
ANNA KIM, Chief of Revenue Operations, Tax Division, Department
of Revenue (DOR), introduced SB 33 explaining that the bill
would change the deadline for venders to pay the tire fees they
collected. Tire fee payments currently are due 30 days following
the last day of the calendar quarter but that has caused
confusion because three of those quarters have months with 31
days. The bill proposes to align the due date to submit the fees
with the end of the month.
She provided the following sectional analysis:
Section 1 changes the quarterly payment due dates to
the last day of the calendar month.
Section 2 aligns the payment date used to determine
timely pay credit with the new due dates in Section 1.
Section 3 applies the due date changes to the first
calendar quarter after the date of the Act.
Section 4 provides an immediate effective date.
MS. KIM said the fiscal note is zero.
2:21:15 PM
SENATOR STEVENS asked if there was any opposition.
MS. KIM replied she didn't know of any and believes that
taxpayers would appreciate more consistency.
2:21:40 PM
BRANDON SPANOS, Deputy Director, Tax Division, Department of
Revenue (DOR), stated that he was unaware of any opposition to
the bill. The language in statute causes confusion which results
in late filers. By filing one day late, the taxpayer loses up to
a $900 credit and receives a five percent penalty for each 30-
day period. The proposed change removes the ambiguity.
2:23:02 PM
CHAIR COSTELLO closed public testimony and stated she would hold
SB 33 for further consideration.
SB 34-PCE ENDOWMENT FUND INVESTMENT
2:23:25 PM
CHAIR COSTELLO announced the consideration of SB 34. "An Act
relating to investment of the power cost equalization endowment
fund; and providing for an effective date."
2:23:41 PM
PAM LEARY, Director, Division of Treasury, Department of Revenue
(DOR) explained that the fund purpose is to annually fund the
power cost equalization endowment fund and the rural electric
capitalization fund, and to reimburse the cost of managing the
fund. The amount that can be appropriated is seven percent of
the monthly average of the fund for the previous three fiscal
years. The annual appropriation is used to fund the cost of
energy in areas that are experiencing high energy costs.
The fund was established in 2000 with a $100 million
appropriation from the Constitutional Budget Reserve. It
received an additional $89.6 million in 2002 from the proceeds
of the Four Dam Pool project. There were two additional
appropriations: one in 2007 for $182.7 million and the second in
2012 for $400 million. On January 31, 2015 the fund had a
balance of $950.7 million.
SB 34 removes the 7 percent stated nominal return target from
statute and allows the revenue commissioner to invest the fund
at potentially a lower rate while still meeting the objectives
of the program. The bill has a zero fiscal note and additional
funds will not be required to continue to manage the fund.
2:23:45 PM
GARY BADER, Chief Investment Officer, Trusts and Portfolio
Management, Department of Revenue (DOR) advised that the goal is
to achieve the highest rate of return with the lowest risk
possible. Current law directs the revenue commissioner to
achieve a specific return without regard to risk. He directed
attention to the page in the packet titled 2015 Capital Market
Expectations from Callan Associates that estimates what is
likely to be achieved over the next ten years in the capital
market. It demonstrates that in order to achieve a 7 percent
return, the commissioner of revenue would have to adopt an asset
allocation that is almost entirely equities. The projected risk
or standard deviation means it could drop 20 percent to 30
percent in one year. That is very risky and no way to run an
investment program, he said.
He summarized that SB 34 would allow the commissioner to meet
the goals of the program without having to try to achieve a 7
percent nominal return.
2:30:49 PM
SENATOR STEVENS asked if the fund has achieved 7 percent in
recent history.
MR. BADER answered yes; the fund has done very well. He offered
to follow up with the numbers.
CHAIR COSTELLO asked the genesis of the legislation.
MR. BADER replied this legislation has been proposed before and
supported by previous commissioners.
2:32:03 PM
CHAIR COSTELLO announced she would hold SB 34 in committee.
2:32:49 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:32 p.m.