Legislature(2023 - 2024)BELTZ 105 (TSBldg)
01/20/2023 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Overview: Department of Labor and Workforce Development | |
| Overview: Department of Commerce, Community and Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
January 20, 2023
1:39 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Click Bishop, Vice Chair
Senator Elvi Gray-Jackson
Senator Kelly Merrick
MEMBERS ABSENT
Senator Forrest Dunbar
COMMITTEE CALENDAR
OVERVIEW: DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
- HEARD
OVERVIEW: DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
Tamika Ledbetter, Commissioner
Department of Labor and Workforce Development
Anchorage, Alaska
POSITION STATEMENT: Presented the overview of the Department of
Labor and Workforce Development.
JULIE SANDE, Commissioner
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Presented the overview of the Department of
Commerce, Community and Economic Development.
SYLVAN ROBB, Director
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions pertaining to the
overview of the Department of Commerce, Community and Economic
Development (DCCED).
ACTION NARRATIVE
1:39:19 PM
CHAIR JESSE BJORKMAN called the Senate Labor and Commerce
Standing Committee meeting to order at 1:39 p.m. Present at the
call to order were Senators Gray-Jackson, Merrick, Bishop, and
Chair Bjorkman.
^ OVERVIEW: Department of Labor and Workforce Development
OVERVIEW:
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
1:40:01 PM
CHAIR BJORKMAN stated one goal for the Senate Labor and Commerce
Committee is to focus on Alaska's workforce and the
opportunities to move Alaska's economy forward toward a
prosperous future. Alaska's workforce changed dramatically over
the past few years, and entire industries struggle to find
employees. Leaders serve the economy best by promoting clear
pathways so businesses and workers both succeed. Improved access
to information will help workers and entrepreneurs obtain the
essential skills, tools, and abilities to succeed in the
marketplace. The committee will hear from state agencies,
educators, trade organizations, and representatives of key
agencies who will speak to the problems they face finding
qualified workers and the impacts these problems have had on
their businesses and all Alaskans. The committee is reaching out
to industries, groups, and agencies to propose solutions to help
the legislature pass bills tailored to the problem.
CHAIR BJORKMAN announced the overview of the Department of Labor
and Workforce Development (DOLWD). He invited Commissioner
Ledbetter to put herself on the record and begin the DOLWD
overview.
1:41:56 PM
TAMIKA LEDBETTER, Commissioner, Department of Labor and
Workforce Development (DOLWD), Anchorage, Alaska, recognized the
department's team of dedicated, professional employees. She
began the on slide 2, which outlined her work history and
background. Her vision is to raise awareness of the prowess of
the state workforce and the resources available to Alaskans.
1:45:45 PM
COMMISSIONER LEDBETTER advanced to slide 3 that depicts the
department's broad reach from Ketchikan to Utqiagvik with
fourteen job centers and the Alaska Vocational Technical Center
in Seward. It provides funding to eight Alaska Technical
Vocational Education Programs (TVEP), has 27 State Training and
Employment Programs (STEP) grantees, eight construction
academies, and private training partners. The department's reach
is large and strong and covers a lot of ground. DOLWD has a
well-established apparatus for solid training.
COMMISSIONER LEDBETTER advanced to slide 4, stating the function
of the department's Research and Analysis Section is to maintain
up-to-date data on labor market information, such as industry-
specific tracking and economic trends. This slide shows the
lookback on Alaska job openings from January 2015 to August
2021, indicating job availability trends.
COMMISSIONER LEDBETTER reviewed the population map on slide 5,
stating the Research and Analysis Section also produces
population data and works closely with the U.S. Census Bureau on
population estimates and projections across the state. This
slide shows projected population changes across the state from
2021 to 2050.
COMMISSIONER LEDBETTER advanced to slide 6 to highlight the
Research and Analysis publication Alaska Economic Trends, a
magazine that covers a wide range of economic topics. It is
available in hard copy and is searchable online back to 1978 at
http://labor.alaska.gov/trends/.
1:47:57 PM
COMMISSIONER LEDBETTER advanced to the pie chart on slide 7
which illustrates programs/funds on a pie chart. The chart
emphasizes a large portion of the pie is dedicated to workforce
development and job training programs. She explained the purpose
of the Alaska Workforce Investment Board. Its 26 members are
appointed by the governor and represent public and private
educational providers, industry, and labor entities. The members
meet quarterly, recommend fund deployment, and support training
Alaska's workforce. The point of this slide is to illustrate
DOLWD's experience and conscientious handling of federal and
state funds. The programs/funds are listed below:
Alaska Workforce Investment Board ($ in millions)
• Workers Compensation Reemployment Benefits
$7.6 million
• Workforce Training & Development
STEP, $4.6 million
Construction Academies, $1.8 million
Individual Training Accounts, $1.0 million
• TVEP Distribution, $13.5 million
• Vocational Rehabilitation, $1.6 million
• STEP Individual Work Readiness, $1.1 million
• Workforce Innovation and Opportunity Act (WIOA)
Dislocated Worker, $1.5 million
Adult, $3.3 million
• Alaska Construction Academies, $1.7 million
• STEP Grants, $5.5 million
1:50:59 PM
COMMISSIONER LEDBETTER advanced to slides 8 and 9, Employment
and Training Services, noting that most job seekers interface
with the department through online queries. In addition to
online job queries, the department has in-office staff ready to
help job seekers write resumes, brush up on interviewing skills,
write cover letters, and more. The department also targets
groups like veterans, service members transitioning out of the
military, prisoners with reentry, youth, adults who are basic-
education deficient, and more. DOLWD touches almost everyone in
one way or the other.
Mission:
Provide labor exchange, employment and training
services, and unemployment insurance to Alaskans
and Alaska businesses to advance opportunities for
employment and provide economic stability for
communities in Alaska.
Workforce Development
• Division staff in the 14 Alaska Job Centers
strengthen Alaska's workforce by providing
employment and training services to Alaska's job
seekers and employers.
• Administer multiple workforce development
programs that result in a skilled Alaskan
workforce.
• Veteran's Employment and Training Services
• Adult Education
• Fidelity Bonding
• Worker Opportunity Tax Credit
• Rapid Response
• Fidelity Bonding
• Reemployment Services
1:52:24 PM
COMMISSIONER LEDBETTER reviewed slide 10, stating that one way
to highlight the department is to discuss unemployment insurance
(UI). At the height of the pandemic, everyone was talking about
unemployment insurance. She emphasized that unemployment
insurance is not an entitlement program.
Employment and Training Services - Unemployment Insurance
• Provides temporary/partial wage replacement for
insured workers who are unemployed due to no fault
of their own and actively seeking reemployment.
Unemployment insurance provides a way to put food on the table
and gas in the car while an unemployed person looks for work.
• Provides an economic stabilizing factor in local
economies during economic downturns.
• Protects integrity of the UI Trust Fund by
preventing, detecting, and recovering benefit
overpayments.
The unemployment trust fund bore a lot of weight during the
COVID pandemic. She expressed pleasure in reporting that
only 5,077 individuals receive unemployment benefits as of
today. This is a significantly lower number than during the
height of the pandemic.
• Alaska's UI Trust Fund is healthy!
o As of September 30, 2022, the balance is
$509,395,826 This value reflects a current
reserve ratio of 3.64 percent, exceeding the
target for full solvency.
o At this level, DOLWD anticipates a .34 percent
solvency credit to help bring the fund back in
line with funding goals and reduce the tax burden
on employers.
o The annual benefit cost rate also continues to
fall. Given these trends, DOLWD anticipates an
average tax rate of 1.04 percent for employers in
CY2023. This would be a decrease from the CY2022
average rate of 1.53 percent.
1:54:20 PM
COMMISSIONER LEDBETTER paraphrased slide 11, Alaska Vocational
Education Technical Center (AVTEC). The department wants to make
AVTEC a household name. AVTEC's motto is "A Career in Under a
Year." In 2019, Georgetown University named AVTEC one of the
best returns on investment. Out of 4,000 postsecondary
institutions nationwide, AVTEC was ranked 43 in that category.
AVTEC's partnership with the University of Alaska provides high-
quality maritime education. The U.S. Department of
Transportation recognized it as a "Center of Excellence for
Domestic Maritime Workforce Training and Education." The
department continues to work with employers to design training
opportunities. AVTEC is becoming more portable, sending
instruction to communities around the state to ensure all
Alaskans have training opportunities.
Alaska Vocational Technical Center (AVTEC)
AVTEC is a nationally accredited provider of workforce
training with a mission to deliver flexible,
accessible and affordable training for Alaskans from
across the state in areas of:
• Business & Office Technology
• Construction
• Culinary Arts
• Diesel/Heavy Equipment
• Industrial Electricity
• Industrial Welding
• Information Technology
• Plumbing and Heating
• Refrigeration
• Maritime
1:56:07 PM
COMMISSIONER LEDBETTER reviewed slide 12, Vocational
Rehabilitation:
Mission: Assist individuals with disabilities to
obtain and maintain employment
Assistive Technology Program (AT)
• improves access to and acquisition of assistive
technology (AT) for Alaskans with disabilities of
all ages
• The majority is funded by a federal grant from
the AT Act
1:56:31 PM
People with disabilities had increased employment opportunities
during the COVID pandemic. Telework was instrumental in the
expansion of those opportunities. Technological advancements
opened new doors for the visually, hearing, and motor-skilled
impaired.
Business Enterprise Program (BEP)
• provides employment opportunities to people who
experience blindness and other severe
disabilities by establishing businesses such as
food service, gift shops, and vending machines
• Managed by these individuals
Disability Determination Services Program (DDS)
• is contracted to the Social Security
Administration (SSA) to adjudicate medical
eligibility for disability benefits
Mature Alaskans Seeking Skills Training Program
(MASST)
• places unemployed, low-income Alaskans 55 years
old or older in community service positions and
provides job training to help them become self-
sufficient
Vocational Rehabilitation Program (VR)
• provides individualized services to help Alaskans
with disabilities prepare for, get and keep good
jobs
The entrepreneurial spirit was alive during the pandemic. She
described a disabled business owner that partnered with a
childcare services facility to set up childcare within the Mat-
Su Regional Hospital in Wasilla. The department helped
facilitate the venture, and the commissioner said she looks
forward to observing the outcome.
1:58:28 PM
COMMISSIONER LEDBETTER reviewed slide 13, Labor Standards &
Safety, whose mission is to ensure safe and legal working
conditions for Alaskan workers. This division houses the
following four units:
• Alaska Occupational Safety and Health (AKOSH):
Protects Alaska workers from industrial accidents
and job-related injuries or illness through the
enforcement of state and federal standards and
provides consultation and training for employers and
employees to follow healthful work practices.
Alaska is one of 26 states that operates under its own state
plan under the umbrella of the federal Occupational Safety and
Health Administration (OSHA). Consultation services provided
under this unit are free and confidential to employers. The
department finds that more businesses are taking advantage of
these services, which helps ensure safe working environments.
• Mechanical Inspection: Provides protection through
inspection and certification of boilers, pressure
vessels, elevators, and inspection of electrical,
and plumbing installations. This section also issues
certificates of fitness for electric and plumbing
work and enforces contractor registration.
• Wage and Hour: Oversees Alaska labor laws to ensure
that workers are justly compensated for their labors
and safeguarded from unfair practices. This includes
enforcement of minimum wages and overtime
regulations, child labor laws, "right to return"
transportation, public contract laws.
• The Alaska Safety Advisory Council: Promotes health
and safety issues with a focus on workplaces in
Alaska and organizes the annual Governor's Safety
and Health Conference.
1:59:24 PM
COMMISSIONER LEDBETTER advanced to slide 14, stating the Alaska
Labor Relations Agency is a small but mighty unit within the
department. This 3-person unit oversees the elections of labor
representation and reviews representation petitions for public
sector entities.
Statewide jurisdiction over ~ 65,500 employees from:
• Over 500 schools
• University of Alaska
• Alaska Railroad
• Political Subdivisions
• State of Alaska
Under AS 23.40.070-260 and AS 42.40.705-890,
facilitates cooperative relations between Alaska's
public employers and labor organizations that
represent public employees.
1:59:53 PM
COMMISSIONER LEDBETTER advanced to slide 15, stating Workers'
Compensation is the division responsible for supporting injured
workers.
Workers' Compensation
Administration:
• Log almost 20,000 reports of injury annually
• Track $250m in benefits and services
• Compile and store data from over 60 years of claims
Adjudication:
• Publish decision of formal hearings
• Mediate agreements between parties
• Hold thousands of informal meetings for expediency
of claims
Reemployment:
• Orders eligibility evaluations
• Approves reemployment plans
• Monitors rehabilitation specialists
The department wants to prioritize and provide more support to
Reemployment Services. Being injured on the job does not
necessarily mean being out of work indefinitely. The department
wants to quickly connect injured workers, who want to be
employed, with job opportunities.
Investigation:
• Investigate and educate employers
• Follow up on fraud claims
• Collaborate with other investigative units to keep
Alaska workers safe
Workers' Compensation Benefits Guaranty
• Provide for medical and indemnity benefits for
injured uninsured workers
• Process payments on judgements from uninsured
employers
• Actively manage the Benefits Guaranty Fund
Fisherman's Fund
• Manage and reimburse commercial fisherman's injury
claims
• Actively manage the "Fisherman's Fund"
• Manage the claims database
Self-Insurance Program
• Ensure the self-insured entity meets statutory
financial criteria
• Perform annual audits on each organization
• Collects proper collateral as prescribed by statute
2:00:36 PM
COMMISSIONER LEDBETTER advanced to slide 16, Preparing Alaskans
for the Jobs of Today - and Tomorrow. She mentioned that many
training opportunities exist around the state. She committed to
working with training providers to ensure Alaskans stay informed
of training opportunities.
COMMISSIONER LEDBETTER concluded the presentation with a
personal story that explained why the department, its services,
and its funding are essential. She said reaching out to target
populations in today's workforce climate is necessary. Long gone
are the days of Job Center walk-ins looking for work; instead,
the department must seek out workers to meet today's workforce
challenges.
2:05:35 PM
SENATOR GRAY-JACKSON asked for more information about the AVTEC
program and how it works.
COMMISSIONER LEDBETTER answered AVTEC offers nimble training.
AVTEC works on a clock-hour system, as opposed to credit hours.
The classroom simulates clocking in and out of an on-the-job
workday. The training is ideal for individuals who want to go
straight from training into the workforce. The center boasts a
high rate of student placement. Many students secure employment
before graduation day. AVTEC is open and looking for more
students. Students seeking a 4-year school alternative should be
apprised of this opportunity. AVTEC bolsters upskilling to help
individuals prepare for the workplace.
SENATOR GRAY-JACKSON asked about the duration of AVTEC programs
and associated student costs.
COMMISSIONER LEDBETTER answered the cost is low, probably a lot
less than other comparable programs. Programs have varying
durations.
SENATOR GRAY-JACKSON requested an AVTEC tour.
COMMISSIONER LEDBETTER answered Workforce Development Month is
September, which would be a good time for a tour.
2:08:00 PM
SENATOR MERRICK inquired about Workforce Development funds
vetoed from last year's budget. She asked whether the
commissioner talked with the administration before the veto.
COMMISSIONER LEDBETTER answered the department works within the
funds allocated; it budgets within the designated appropriation.
She added that most of the department is federally funded and
supported by grant funds.
2:08:39 PM
SENATOR BISHOP directed attention to slide 9, Employment and
Training Services. He pointed out the slide mentions fidelity
bonding twice. He asked whether the department picked up a new
fidelity bonding program.
COMMISSIONER LEDBETTER answered no; the duplication is an error.
SENATOR BISHOP asked the Chair's permission to make two data
requests:
1. A UI Trust Fund graph from 1974 forward. He commented that it
is worth a lookback. It will give the committee a historical
perspective on how well the UI Trust Fund has worked.
2. A 10-year lookback on enrollment by discipline for comparison
purposes.
2:10:18 PM
SENATOR MERRICK asked whether some industries are affected more
by the current labor shortage than others.
COMMISSIONER LEDBETTER answered that the labor shortage most
impacts the childcare industry. She said it is imperative that
the state professionalize childcare, stop calling it daycare,
and beefs up wages. The state should view childcare as
supporting the current workforce and simultaneously training the
future workforce. Children that see their parents working are
probably more inclined to lean into the example of work
established by their parents.
2:11:19 PM
CHAIR BJORKMAN asked whether there are things the department
could do to improve the childcare situation and connect
childcare seekers with providers.
COMMISSIONER LEDBETTER replied many things would improve the
situation and support the childcare industry:
- Train up childcare workers
- Ensure workers have the skill set to handle the classroom and
progress through the ranks.
- Train teachers for the classroom and train teachers who want
to rise up through the ranks to become childcare facility
administrators. Most childcare facilities close because they
lack mid-level staff.
- Create path academies, upskill childcare workers, and partner
with business entities like the Small Business Administration.
- Understand that an individual passionate about childcare does
not necessarily have the skill set for operating a facility.
These two paths require different competencies and skill sets.
- DOLWD is working closely with the Department of Health (DOH)
to ensure a strong partnership for these efforts.
CHAIR BJORKMAN commented that the legislature supports this
mission and offers to help.
CHAIR BJORKMAN asked what needs to be done to ensure labor
standards and safety in Alaska workplaces are consistent with
laws and regulations.
COMMISSIONER LEDBETTER answered employers and business owners
should take advantage of consultation services the department
offers. The unit will visit their site and take a look around.
The department will not take punitive action, which should
reassure businesses to ask for help. People should be able to go
to work and be safe in their working environment, and the
department wants to do everything possible to assist with that
effort.
2:14:31 PM
At ease.
^ OVERVIEW: Department of Commerce, Community and Economic
Development
OVERVIEW:
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
2:18:57 PM
CHAIR BJORKMAN reconvened the meeting and announced the overview
of the Department of Commerce, Community and Economic
Development (DCCED). He invited Commissioner Sande to begin the
overview.
2:19:09 PM
JULIE SANDE, Commissioner, Department of Commerce, Community and
Economic Development, Juneau, Alaska, presented the Department
of Commerce, Community and Economic Development department
overview. She introduced her team and gave a brief personal
employment history.
2:22:47 PM
COMMISSIONER SANDE summarized slide 2, the Agenda:
1. Overview of DCCED:
Intro
Structure
Divisions
Corporate Agencies
2. Road Blocks to Economic Growth
3. Clearing the Way
Department Mission: Promote a healthy economy, strong
communities, and protect consumers in Alaska.
COMMISSIONER SANDE reviewed slide 3, DCCED Organization, stating
the department has six core divisions and eight corporate
agencies. The slide emphasized the difference between divisions
and corporate agencies. She explained corporate agencies need
independence and flexibility to react nimbly to market changes
more so than divisions. The slide illustrated how the DCCED
executive team, the six core divisions, and the eight corporate
agencies interface to support the department's mission.
2:24:27 PM
COMMISSIONER SANDE paraphrased slide 4, How do We Achieve Our
Mission:
Healthy Economy
• International Trade (ET)
COMMISSIONER SANDE said that 18,000 jobs in Alaska are from
foreign-owned companies. Every opportunity to promote Alaska is
important to the state. She noted that the Alaska Seafood
Marketing Institute does a tremendous job promoting Alaska.
• Seafood Pandemic Response Grant Program (ET)
• Small Business Innovation Research (ET)
• Commercial Fishing (INV)
• Fisheries Enhancement (INV)
• Capstone (INV)
• Small Business Economic Development Loan (INV)
• Rural Development Initiative Fund (INV)
• Alternative Energy (INV)
• Mariculture (INV)
• Microloan (INV)
• Commercial Charter (INV)
• Environmental, Social Governance (INS)
• Made In Alaska (MIA) (DCRA)
• Alaska Product Preference (DCRA)
• Minerals Commission (DCRA)
• ARDOR Program (DCRA)
• Financial Institution Examinations (DBS)
• Securities Examinations (DBS)
• Financial Institutions/Professionals Licensing (DBS)
Strong Communities
• Food Security Taskforce (ET)
• Broadband Office (ET)
• Commercial Fishing (INV)
• Fisheries Enhancement (INV)
• Capstone (INV)
• Small Business Economic Development Loan (INV)
• Rural Development Initiative Fund (INV)
• Alternative Energy (INV)
• Mariculture (INV)
• Microloan (INV)
• Commercial Charter (INV)
• Community Development Block Grants (DCRA)
• Local Government Assistance (DCRA)
• Direct Legislative Grants (DCRA)
• Serve Alaska State Commission (DCRA)
• Alaska Native Language Preservation & Advisory
Council (DCRA)
• ANCSA Elections Proxies (DBS)
• Financial Consumer Outreach & Education (DBS)
Protecting Consumers
• Information Technology (DAS)
• Financial Operations (DAS)
• Human Resources (DAS)
• External Healthcare Review (INS)
• Alaska Reinsurance Program (INS)
• Investigations (INS)
• Financial and Market Conduct (INS)
• Consumer Services (INS)
• License and Regulate Professionals (CBPL)
• License Businesses (CBPL)
• Register Corporations (CBPL)
• Investigate Complaints Against Professionals (CBPL)
• Investor Protection/Anti-Fraud/Criminal Coordination
(DBS)
• Cryptocurrency Multistate Oversight (DBS)
• Mobile Payment App Multistate Oversight (DBS)
2:27:08 PM
COMMISSIONER SANDE reviewed the organizational structure of the
department's executive team on slide 5:
DCCED Executive Team
Promoting a healthy economy, strong communities, and
protecting consumers in Alaska
Alaska Broadband Office
Office of International Trade
Legislative Relations
Economic Development
Special Projects
Commissioner Sande said special projects include missions like
food security and the American Rescue Plan Act (ARPA) funding.
COMMISSIONER SANDE explained why it is important she serves on
the following boards: Alaska Travel Industry, Alaska Energy
Authority, Alaska Railroad Corporation, Alaska Industrial
Development and Export Authority, Alaska Housing Finance
Corporation, and Alaska Royalty Oil and Gas Development Advisory
Board. Deputy Commissioner Fowler serves on the Municipal Bond
Bank Authority board, among others.
2:29:51 PM
COMMISSIONER SANDE advanced to slide 6, Division of
Administrative Services, which depicts various division
functions overseen by Acting Director Hannah Lager. She pointed
out her intention to spotlight divisions that were self-
supporting. The FY2024 budget is just under $200,000,000. She
emphasized the department is only using $14,500,000 in
unrestricted general funds (UGF). The remainder comes from
designated general funds (DGF), federal and other sources. Slide
6 reads as follows:
[Original punctuation provided.]
Division of Administrative Services
Providing management information and support services
for the Department's programs
Financial Services
Budget Management
Human Resources
Procurement
DCCED FY2024 Budget
Total $197,160.80
UGF $14,545
DGF $106,291.10
Federal $53,476.80
Other $22,847.90
Positions 546
Department contribution to the General Fund in FY2022:
$101 million
2:33:14 PM
COMMISSIONER SANDE read slide 7, Division of Banking and
Securities, which Director Robert Schmidt heads. She said
Director Schmidt's focus this year is on enforcement. He looks
for ways to protect Alaskans from bad players who take advantage
of the elderly. The elderly have suffered losses in the millions
of dollars. This division is self-supporting.
Division of Banking and Securities
Protecting consumers of financial services and
promoting safe and sound financial systems
DBS handles licensing, examinations, and enforcement
for:
Depositories and Trusts
Securities and Investments
Mortgage Lending
Money Transmissions
Payday Lenders
Premium Finance and Small Loan Companies
DBS deposited $18.5 million to the General Fund in
FY2022
Money Transmission is the fastest-growing sector in
Alaska's financial services industry: $7 billion was
transmitted to, from, or within Alaska in 2021
2:34:37 PM
COMMISSIONER SANDE advanced to slide 8, Division of Community
and Regional Affairs, stating that this division could be an
independent department based on the number of its services. The
division director is Sandra Moller. The slide pictures the
division's QR Code which provides a wealth of information
without having to search the web; she encourages legislative
staff to explore and use it. The division currently manages 700
active grants at just under $1 billion.
Division of Community and Regional Affairs
Helping Alaska's communities build sustainable economies and a
means of self-governance
Established in Article X of Alaska's Constitution,
DCRA's services include:
Local Government Outreach & Training
Bulk Fuel Loan Fund
Rural Utility Business Assistance
Grant Administration
Made in Alaska
State Assessors Office
Municipal Land Trust
Serve Alaska
......and so much more!
2:37:18 PM
COMMISSIONER SANDE advanced to slide 9, Division of
Corporations, Business and Professional Licensing, headed by
Director Sylvan Robb. She reviewed the causes of professional
licensing delays and gave recommendations for improvement. This
division is self-supporting.
Division of Corporations,
Business and Professional Licensing
Ensuring that competent, professional and regulated
commercial services are available to Alaska consumers
There has been a 64% increase in the number of
professional license holders over the last 10 years
Professional Business Corporations
Licensing Licensing
45 programs 99,554 licenses 92,078
registered
21 Boards 1,656 nicotine 13.4% increase
endorsements in FY22
104,383 licenses 9.2% increase
in FY22
8.6% increase
in FY22
COMMISSIONER SANDE said that she and Governor Dunleavy are
committed to making rapid improvements to this division. She
said the division explained where bottlenecks were occurring,
and everyone went to work determining where efficiencies could
be gained and redundant processes eliminated. She said the
delays in licensing occurred due to the unexpected increase in
professional license requests. Thirty percent of professional
licenses are nursing licenses. She acknowledged this is a point
of frequent discussion and one reason she advocates for adopting
the Nurse Licensure Compact (NLC). The compact would provide
immediate relief to the licensing team, enabling staff to deploy
some of its resources elsewhere.
COMMISSIONER SANDE said another big fix is software related. The
Alcohol and Marijuana Control Office (AMCO) will pilot a new
software system. If the pilot software is successful, the plan
is to extend the reach of the software further throughout the
division. She touched on the subject of professional license
investigations. Last year there were over 1,000 investigations
into complaints against professionally licensed individuals. She
noted that it is important to protect Alaskans, commenting that
it takes time and resources to do so.
2:42:28 PM
COMMISSIONER SANDE read slide 10, Division of Insurance. She
emphasized this is a self-supporting division led by Director
Lori Wing-Heier.
Division of Insurance
Regulating the insurance industry to protect Alaskan
consumers
The Division of Insurance (DOI) is responsible for the
licensing and compliance of insurers and insurance
products in Alaska.
The Centers for Medicare and Medicaid Services
approved DOI's application to extend The Alaska
Reinsurance Program for another five years (through
2027). This allows DOI to leverage federal dollars to
reduce the cost of healthcare to individual Alaskans
purchasing insurance on the federal marketplace.
DOI deposited nearly $65 million into the general fund
in FY2022
Nearly $400 million of federal funds collected 2016-
2023
2:43:30 PM
COMMISSIONER SANDE summarized slide 11, Division of Investments,
led by Acting Director Jim Anderson. She noted this self-
supporting division represents the most effective economic
development tool the state has, and is of no cost to the state.
The programs pay for themselves. The individuals that utilize
these services are not eligible for traditional lending.
Individuals often graduate from these programs to conventional
lenders, like banks.
Division of Investments
Promoting economic development through direct state
lending within those industries, and within those
areas of the state that are not adequately serviced by
the private sector
Revolving Loan Funds:
Alternative Energy Loan
Commercial Fishing Loan
Fisheries Enhancement Loan
Commercial Charter Fisheries Loan
Community Quota Entity (CQE) Loan
Mariculture Loan
Alaska Microloan
Rural Development Initiative Fund
Small Business Economic Development Loan
2:44:48 PM
COMMISSIONER SANDE read slide 12, Corporate Agencies. She said
the previous slides encapsulated division activities, but this
slide features the department's agencies.
Corporate Agencies
Alaska Energy Authority
Alaska Railroad Corporation - Self Supporting
Alcohol and Marijuana Control Office - Self Supporting
Alaska Industrial Development & Export Authority
Self Supporting
Alaska Seafood Marketing Institute - Self Supporting
Regulatory Commission of Alaska - Self Supporting
Alaska Gasline Development Corporation
Alaska Oil and Gas Conservation Commission
Self Supporting
COMMISSIONER SANDE advanced to slide 13, Road Blocks to Economic
Growth, stating the department has identified three main
challenges to economic growth. The state will only be able to
move the economy forward with a workforce, childcare, and
housing. She explained that many DCCED functions interface with
other departments, which means departments will not solve these
issues independent of their sister agencies. DCCED is actively
working with other agencies to find solutions. Another challenge
DCCED consistently hears from stakeholders is the cost of
shipping.
2:47:00 PM
COMMISSIONER SANDE reviewed slide 14, Clearing the Way. She said
that Governor Dunleavy appropriated $5 million to help find
solutions to these challenges. The graphic on slide 14
identifies six ways to clear Alaska's economic roadblocks and
she briefly summarizes each one.
2:52:14 PM
CHAIR BJORKMAN opened the meeting to questions from committee
members.
2:52:20 PM
SENATOR BISHOP directed attention to slide 13, Road Blocks to
Economic Growth. He asked whether the high cost of energy was
found to be a barrier to economic growth.
COMMISSIONER SANDE answered yes, it is. The high cost of energy
is absolutely a department focus. She found it shocking that
people in the Railbelt region pay more than 20 cents per KWh.
She hopes to see innovative solutions within the next few years,
especially with nuclear energy.
SENATOR BISHOP commented that he and Curtis Thayer are joined at
the hip on this subject. He posited that if the "high cost of
energy" code could be cracked, everything else would fall into
place.
COMMISSIONER SANDE agreed.
2:54:09 PM
CHAIR BJORKMAN asked the commissioner to tell the public who
Curtis Thayer is.
COMMISSIONER SANDE answered Curtis Thayer is the director of the
Alaska Energy Authority.
2:54:21 PM
SENATOR BISHOP asked whether there was an application start date
for the innovation research grants and if the department needed
a lifeline.
COMMISSIONER SANDE answered in February.
SENATOR BISHOP inquired about DCCED workforce staffing levels,
particularly in licensing. He expressed that the legislature was
available to help.
COMMISSIONER SANDE said that achieving changes without a
workforce is impossible. The department had a 20 percent vacancy
rate at one point. The good news is that the department is
getting close to its budgeted vacancy rate, somewhere between 7
and 10 percent.
COMMISSIONER SANDE brought up the interplay between the
department and boards and commissions. She said that even if the
department had the means to fix everything within its scope, the
board must share the same priorities to avoid licensing delays.
She commented that the interplay between the department and the
boards is far more complicated than expected, similar to
statutes and regulations, they are subject to change. It takes
communication, coordination, and patience. She announced a new
position, boards and commissions liaison. She said Sara Chambers
agreed to take this position to help the department get in
lockstep moving forward.
2:58:56 PM
CHAIR BJORKMAN commented that Alaska's population has remained
relatively flat while license applications have increased. He
asked what the driver is for the increase in licensing requests.
COMMISSIONER SANDE answered one driver is the huge increase in
the healthcare field. Throwing money at this issue will not fix
the worker shortage problem. She said the department seeks to
tackle this problem by maximizing efficiencies, following best
practices, and adopting the Nurse Licensure Compact.
CHAIR BJORKMAN asked whether the workload would be reduced by
extending the renewal period, lengthening the time a license is
valid.
COMMISSIONER SANDE said DCCED implemented extensions initially,
which was very useful. She deferred the question to Director
Robb.
3:01:03 PM
SYLVAN ROBB, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community and
Economic Development, Juneau, Alaska, said about half of the
professional licenses are governed by boards and they would
decide whether to extend the licensing period. It's a good idea
for the professional licenses that the division oversees and
they'll look at that.
CHAIR BJORKMAN said he looks forward to working with DOLWD and
DCCED to solve Alaska's workforce challenges.
3:02:14 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:02 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 01.20.23 DOLWD Overview Presentation.pdf |
SL&C 1/20/2023 1:30:00 PM |
DOLWD Overview Presentation |
| 01.20.23 DCCED Overview Presentation corrected.pdf |
SL&C 1/20/2023 1:30:00 PM |
DCCED Overview Presentation |