ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 27, 2009
3:27 p.m.
MEMBERS PRESENT
Representative Mark Neuman, Vice Chair
Representative Mike Chenault
Representative Bob Lynn
Representative Robert L. "Bob" Buch
MEMBERS ABSENT
Representative Kurt Olson, Chair
Representative John Coghill
Representative Lindsey Holmes
COMMITTEE CALENDAR
HOUSE BILL NO. 151
"An Act repealing the termination date of the statewide boating
safety and education program; providing for an effective date by
repealing the effective dates of secs. 3, 5, 7, 9, 11, 14, 16,
18, 20, 23, 26, and 27, ch. 28, SLA 2000, and sec. 3, ch. 119,
SLA 2003; and providing for an effective date."
- MOVED CSHB 151(L&C) OUT OF COMMITTEE
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 105
"An Act relating to the state training and employment program;
and providing for an effective date."
- HEARD AND HELD
HOUSE JOINT RESOLUTION NO. 16
Relating to federal procurement preferences for small businesses
in the state that are owned and controlled by service-disabled
veterans.
- HEARD AND HELD
HOUSE BILL NO. 37
"An Act relating to the relationship between employees and labor
organizations; prohibiting collective bargaining contracts that
require employees to join a labor or employee organization;
extending the policy and limitations set out in this Act to
public employers and public employees subject to the Public
Employment Relations Act; and providing for an effective date."
- SCHEDULED BUT NOT HEARD
HOUSE BILL NO. 185
"An Act relating to the labor organization position of state
agencies and others with regard to construction contracts paid
for by state money."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 151
SHORT TITLE: USE, REGULATION, AND OPERATION OF BOATS
SPONSOR(s): REPRESENTATIVE(s) NEUMAN
02/25/09 (H) READ THE FIRST TIME - REFERRALS
02/25/09 (H) L&C, FIN
03/27/09 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 105
SHORT TITLE: STEP PROGRAM
SPONSOR(s): REPRESENTATIVE(s) COGHILL
01/30/09 (H) READ THE FIRST TIME - REFERRALS
01/30/09 (H) L&C, FIN
03/02/09 (H) SPONSOR SUBSTITUTE INTRODUCED
03/02/09 (H) READ THE FIRST TIME - REFERRALS
03/02/09 (H) L&C, FIN
03/16/09 (H) L&C AT 3:15 PM BARNES 124
03/16/09 (H) Heard & Held
03/16/09 (H) MINUTE(L&C)
03/27/09 (H) L&C AT 3:15 PM BARNES 124
BILL: HJR 16
SHORT TITLE: DISABLED VETERANS PROCUREMENT PREFERENCE
SPONSOR(s): REPRESENTATIVE(s) GATTO
02/09/09 (H) READ THE FIRST TIME - REFERRALS
02/09/09 (H) MLV, L&C
02/24/09 (H) MLV AT 1:00 PM BARNES 124
02/24/09 (H) Moved Out of Committee
02/24/09 (H) MINUTE(MLV)
02/25/09 (H) MLV RPT 6DP
02/25/09 (H) DP: KAWASAKI, OLSON, HARRIS, LYNN,
BUCH, GATTO
03/27/09 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
JIM ELLIS, Staff
Representative Mark Neuman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified and presented HB 151 on behalf of
the prime sponsor, Representative Mark Neuman.
JAMES KING, Director
Division of Parks and Outdoor Recreation
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HB 151.
BILL HUDSON
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion of HB 151.
MIKE FOLKERS
Recreational Boating Safety Specialist
Seventeenth U.S. Coast Guard District
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion of HB 151.
GENE BROOKS, Admiral and Commander
Seventeenth U.S. Coast Guard District
Juneau, Alaska
POSITION STATEMENT: Testified on HB 151.
CHARLES GEWIN
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 151.
TIM BUNDY, Chief
Injury Prevention & Emergency Medical Services
Department of Health and Social Services (DHSS)
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion of HB 151.
RYNNIEVA MOSS, Staff
Representative John Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified on behalf of the prime sponsor,
Representative John Coghill on HB 105.
DAVID STONE, Deputy Commissioner
Department of Labor & Workforce Development (DLWD)
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 105.
DON ETHRIDGE, Lobbyist
Alaska AFL-CIO
Alaska Works Partnership, Inc.
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 105.
LINDA HULBERT, Member
Alaska Workforce Investment Board
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 105.
DOUG WARD, Director
Shipyard Development
Alaska Ship and Drydock, Inc.
Ketchikan, Alaska
POSITION STATEMENT: Testified during the discussion of HB 105.
SANDRA WILSON, Staff
Representative Carl Gatto
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified and presented HJR 16 on behalf of
the prime sponsor.
MCHUGH PIERRE, Director of Communications
Legislative Liaison
Department of Military & Veterans' Affairs (DMVA)
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion of HJR 16.
BUTCH WHITING, Owner
Big Four Enterprises, LLC
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HJR 16.
TIM WHEELER, President
Alaska Veterans Business Alliance (AVBA)
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HJR 16.
RIC DAVIDGE, President
Vietnam Veterans of America - Alaska Chapter
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HJR 16.
RUSSELL KELL, State Service Officer
Vietnam Veterans of America - Alaska Chapter
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 16
KARL LERAY, Chairman
Alaska Veterans Business Alliance
Anchorage, Alaska.
POSITION STATEMENT: Testified in support of HJR 16.
BARBARA BACHMEIER
Juneau, Alaska
POSITION STATEMENT: Testified on HJR 16.
ACTION NARRATIVE
3:27:14 PM
VICE CHAIR MARK NEUMAN called the House Labor and Commerce
Standing Committee meeting to order at 3:27 p.m. Representatives
Buch, Chenault, Lynn, and Neuman were present at the call to
order.
3:27:44 PM
HB 151-USE, REGULATION, AND OPERATION OF BOATS
3:27:51 PM
VICE-CHAIR NEUMAN announced that the first order of business
would be HOUSE BILL NO. 151, "An Act repealing the termination
date of the statewide boating safety and education program;
providing for an effective date by repealing the effective dates
of secs. 3, 5, 7, 9, 11, 14, 16, 18, 20, 23, 26, and 27, ch. 28,
SLA 2000, and sec. 3, ch. 119, SLA 2003; and providing for an
effective date."
3:28:29 PM
REPRESENTATIVE CHENAULT made a motion to adopt the proposed
committee substitute (CS) for HB 151 labeled, 26-LS0422\E, Kane,
3/11/09. There being no objection, Version E was before the
committee.
3:29:52 PM
JIM ELLIS, Staff, Representative Mark Neuman, Alaska State
Legislature, on behalf of the prime sponsor, stated that Version
E would extend the sunset date of the statewide boating safety
and education program until July 1, 2018. Since 2000, the
number of boating deaths has been reduced by 20 percent. He
explained that the termination date is 2010. He offered that if
the program is extended quickly the Department of Natural
Resources will be eligible for a full year of funding.
3:31:22 PM
JAMES KING, Director, Division of Parks and Outdoor Recreation,
Department of Natural Resources (DNR), offered some highlights
of the program. He explained that the "Kids Don't Float"
program is a major component of the program. He related that
515 loaner boards are scattered around the state in 153
communities. He related that the major supplier of the life
jackets is the Boating Safety program. He also mentioned that
the educational component has reached over 63,000 students in
Alaska. "Alaska Water Wise" is a popular training program
within the Boating Safety program that helps teach appropriate
boating safety practices. Marketing is an important part of the
program, including sharing announcements on the radio and
television. He pointed out that the Cold Water Boating seal
received national recognition and is used in training programs.
The program trains law enforcement in safe boating practices and
provides support to the U.S. Coast Guard Auxiliary Vessel Safety
Check Program. He highlighted one of the most exciting things
about the program is that 17 Alaskan children are alive today
who were rescued from the water wearing those life jackets. He
pointed out that since the program started ten years ago, life
jacket wear rates have gone up significantly and recreational
boating fatalities have been reduced by 20 percent. He
concluded by expressing his appreciation for the efforts in
considering HB 151.
3:34:18 PM
REPRESENTATIVE LYNN commented that it is a wonderful program.
He asked how many personal floatation devices are lost.
3:34:40 PM
MR. KING stated that some life jackets wear out and others are
stolen or lost. However, a relatively small number of life
jackets are lost. He opined that people are pretty responsible
with the life jackets and most are put back. Additionally, some
are donated. He also mentioned that when the life jackets wear
out that new ones are purchased. The goal is to protect the
kids and the program has been very successful.
3:35:33 PM
REPRESENTATIVE LYNN stated it is a wonderful program. He asked
who pays for the life jackets.
MR. KING explained that the life jackets are paid for from
federal funding.
3:36:00 PM
BILL HUDSON stated that this bill is necessary. He said he has
followed the program since he first introduced it during his
time as a member of the Alaska State Legislature. He noted that
he spent 20 some years in the U.S. Coast Guard. He stated that
much of his activity was spent saving lives of people, who in
many cases were unprepared to protect themselves in the water
environment. He opined that the program has directly and
indirectly saved lives. He complimented the sponsor for
introducing the bill and asked members to extend the program
another eight years.
REPRESENTATIVE NEUMAN explained that he was going to eliminate
the sunset date, but that some legislators expressed concern so
the sunset clause was added back in the bill.
MR. HUDSON related that he understood the reason for the sunset
provision, although he preferred the bill did not have one.
3:38:27 PM
MIKE FOLKERS, Recreational Boating Safety Specialist,
Seventeenth U.S. Coast Guard District, stated that the U.S.
Coast Guard, through the federal Secretary of Homeland Security,
is directed to carry out a national recreational boating safety
program. The goal of the program is to encourage the states to
assume the major role in carrying out boating safety education,
assistance, and enforcement activities within their
jurisdictions and to foster greater development, use, and
enjoyment of all waters of the U.S. Under this program, the
U.S. Coast Guard allocates and distributes funds to eligible
states to assist them in carrying out and financing recreational
boating safety programs. Federal financial assistance is
provide through the Boating Safety Account of the Aquatic
Resources Trust Fund, also known as the Sport Fish Restoration
and Boating Trust Fund. Part of that eligibility to receive
this funding happened when Alaska established its boating safety
program by passing House Bill 108 in 2000, nearly 10 years ago.
Alaskans are safer and better educated. Recreational boating
fatality rates are down. He provided statistics, including that
23.8 lives were lost per year from 1995 to 1999. The most
recent 5 year average reduces the fatalities to 15.8 lives each
year. He stated that in calendar year 2008, 12 Alaskans were
lost in recreational boating accidents, which is the lowest
number since the program began. He stated that the U.S. Coast
Guard will continue to maintain a strong working relationship
with the state, which is outlined in a memorandum of
understanding between the State of Alaska and the U.S. Coast
Guard.
3:40:48 PM
GENE BROOKS, Admiral and Commander, Seventeenth U.S. Coast Guard
District, stated that he is commander of the district
responsible for all U.S. Coast Guard operations in Alaska. He
stated that the deadliest catch in Alaska is not fish on
commercial fishing vessels, but people on recreational pleasure
boats. He indicated that more lives are lost on recreational
boats than on commercial fishing vessels every year. He said,
"Your program, the state Boating Safety Program, has done a
tremendous job in reducing the loss of life on recreational
pleasure boats, almost exclusively, but substantially on state
waters." He recalled testimony on the loss of fatalities, and
the "Kids Don't Float" program statewide. He related that when
he heard that life jackets were placed in lockers and left
unprotected that he did not expect the program to last longer
than a week. However, he remarked that people don't steal them
and they actually refill them. He highlighted that the "no-
violation boardings" have increased from 35 percent in 2001 to
73 percent. He explained that means that 73 percent of the
boats that receive courtesy inspections for boating safety are
in full compliance with the boating safety requirements, which
means that three out of four boats have the required safety
equipment on board. He related that this is a great partnership
for the U.S. Coast Guard. He encouraged support for the bill.
3:42:43 PM
CHARLES GEWIN stated that he has lived along the Yukon River
since the mid 1990s. He observed that villagers often loaded up
boats to the extent that only two or three inches of freeboard
remained. Additionally, often no life jackets were in the
boats. In 2000, when this program went into effect life jackets
disappeared off the boards. However, in 2001 he related that he
observed children wearing life vests. He offered his belief
that the use of life vests has continued. He said, "I'd like to
see the program continue." He complained that the bill contains
a sunset clause, but he also understands the desire to review
programs periodically. He stated that he prefers the bill did
not have a sunset provision.
3:44:22 PM
TIM BUNDY, Chief, Injury Prevention & Emergency Medical
Services, Department of Health and Social Services (DHSS),
stated that HB 151 makes boating laws consistent with federal
laws, assigns boating regulation functions to the appropriate
state agencies, qualifies Alaska to receive federal funds, and
creates a Safe Boating Education Program in Alaska. He
explained that his section houses the "Kids Don't Float"
program. He provided some statistics. Since 1991, there have
been 271 commercial and 382 noncommercial boating fatalities.
According to the Alaska Bureau of Vital Statistics drowning was
the sixth leading cause of death between 2002 and 2006. Based
on a prior U.S. Coast Guard study on noncommercial boating
fatalities in Alaska between 1991 and 2000, drowning data showed
that 9 of 10 fatalities occurred in boats under 26 feet. He
noted that victims were adult males and 5 of the 6 boats
capsized or involved victims who fell overboard, with 3 out of 4
involving power boats. Deaths were evenly split between fresh
and salt water, and in 25 percent of the cases alcohol was
confirmed as a contributing factor. However, since the Safe
Boating Act was enacted, the program has reduced deaths by more
than 20 percent. Additionally, the "Kids Don't Float" program,
which is a coordinated partnership between state, federal, and
local entities, has documented 17 lives saved through the loaner
live jackets. The "Kids Don't Float" program has been adopted
and promoted by organizations such as Safe Kids International
and Safe Kids of America. This program was a recipient of an
outstanding achievement award by the National Fresh Water
Fisheries Hall of Fame in 2006. Prior to 2000, the state did
not have a Safe Boating Act and federal funds collected from
Alaskans under the Federal Sport Fish Restoration and Boating
Trust Funds were given to other states. Since 2000, the state
has received approximately $1.1 million per year in federal
revenue and approximately $450,000 from Boat Registration Fees
that would have gone to other states had Alaska not enacted this
law. The funding that is received from the programs funds
numerous safety programs including funds spent on life vests.
He mentioned that approximately $60,000 per year is spent on the
"Kids Don't Float" program. He highlighted that if the bill
does not pass to extend the Boating Safety and Education
Program, that the state would lose the federal funding.
3:47:46 PM
REPRESENTATIVE NEUMAN, after first determining no one else
wished to testify, closed public testimony on HB 151.
3:48:01 PM
REPRESENTATIVE CHENAULT moved to report the committee substitute
(CS) for HB 151, labeled 26-LS0422\E, Kane, 3/11/09, out of
committee with individual recommendations and the accompanying
fiscal note.
There being no objection, CSHB 151(L&C) was reported from the
House Labor and Commerce Standing Committee.
3:48:41 PM
The committee took an at-ease from 3:48 p.m. to 3:50 p.m.
3:50:10 PM
HB 105-STEP PROGRAM
3:50:19 PM
RYNNIEVA MOSS, Staff, Representative John Coghill, Alaska State
Legislature, explained on behalf of the prime sponsor, that this
bill was introduced last legislature as House Bill 226. She
related that HB 105 passed with a two-year sunset, and
instructions for the Department of Labor & Workforce Development
(DLWD) to form a work group from all sectors of the workforce to
recommend how to improve the program. The DLWD commissioner
appointed a task force that met several times. The sponsor
introduced the bill this year to facilitate a statewide policy
for a coordinated and effective employment training and
education system. She stated that a lot of effort has been put
forth on this bill. She mentioned a proposed committee
substitute has been prepared.
REPRESENTATIVE LYNN made a motion to adopt the proposed
committee substitute (CS) for HB 105, labeled 26-LS0475\C,
Wayne, 3/20/09. There being no objection, Version C was before
the committee.
3:53:22 PM
MS. MOSS explained that the bill provides additional authority
for the Alaska Workforce Investment Board (AWIB) with respect to
the Statewide Training and Employment Program (STEP) operations.
The bill expands their duties to include review and approval of
regulations to be adopted by the DLWD. The AWIB would annually
review the priorities set by the department. She opined that
the bill streamlines the paperwork requirements for the STEP
program. She recalled one gentleman stated that the grant
process is cruel to businesses. She interpreted that to mean
the bureaucracy was simply more than a business should have to
endure to obtain funding for his employees.
3:54:38 PM
MS. MOSS related that HB 105 would make the STEP a permanent
program and would make the AWIB a partner with the DLWD to
ensure the training is in areas that Alaska needs additional
workforce jobs. She opined that Alaska is anxiously awaiting a
gas line, but Alaska needs to be ready for that. Thus, STEP
provides a mechanism for that training.
3:55:33 PM
MS. MOSS, in response to Representative Buch, explained that the
purpose of House Bill 226 was to end the sunset provision and
make the program permanent. The legislature asked the DLWD to
review the program and make it user friendly. The DLWD's task
force met and the AWIB will have more input in the program such
as in developing regulations to provide for an appeal process.
REPRESENTATIVE BUCH applauded the sponsor's staff for work on
this issue.
3:57:15 PM
DAVID STONE, Deputy Commissioner, Department of Labor &
Workforce Development (DLWD), stated that he serves on the AWIB
and was co-chair of the STEP task force. He reiterated that the
STEP task force was the result of legislation that passed last
year. The STEP task force was charged with developing
recommendations for revisions to statutes and regulations to
improve the STEP program. He explained that Version C is a
result of recommendations made by the STEP task force. The STEP
task force was comprised of ten people representing the
employers, the employees, the U.S. Department of Labor, the
University of Alaska, and the AWIB. The STEP task force met on
numerous occasions and recommended the following: Offer
services to an expanded pool of workers who may be displaced.
Clarify the AWIB oversight and accountability. Support resident
hire through targeted projects and services. Increase input
from local businesses and regional advisory councils.
Streamline the grantee application and reporting process. Make
the STEP a permanent program.
3:58:59 PM
MR. STONE provided some statistics about the STEP program. The
DLWD tracked STEP participants for a full year after training.
In 2007, the STEP participants earned $62 million in Alaska
wages in the year following their training. This represents an
average salary increase of 18 percent. The 1,445 participants
increased their earnings by $9.3 million. He related that 91
percent of the participants claimed Alaska as their residence in
the 2008 Permanent Fund Dividend applications. Additionally, 95
percent of STEP participants were employed within 12 months. He
concluded by stating that STEP works. It consistently is the
best training program for unemployed or underemployed Alaskan
workers. Furthermore, by reducing the length of time that
workers are unemployed, this program is designed to reduce the
amount of unemployment insurance benefits that are paid.
4:00:00 PM
REPRESENTATIVE BUCH inquired as to whether a list of board
members and their affiliations is available.
MR. STONE stated that the Workforce Investment Board consists of
25 people, including the commissioners of the Department of
Education and Early Development, Department of Labor & Workforce
Development, Department of Commerce, Community, & Economic
Development. Additionally, members included a broad spectrum of
people including Jim Lynch, Fairbanks Hospital, Chair; Linda
Hulbert, Fairbanks New York Life Insurance; Doug Ward, Ketchikan
Shipyard, operating engineers, and labor groups.
4:01:20 PM
MR. STONE, in response to Representative Buch, stated that the
process is streamlined in this way. Three people from the AWIB
and one public member will review all of the competitive grant
applications and make decisions on who will be awarded the
grants. If any discretionary funds remain, two members would
examine and meet with the DLWD commissioner to make decisions.
He highlighted that the whole idea is to make it fast and
nimble.
4:02:29 PM
DON ETHRIDGE, Lobbyist, Alaska AFL-CIO; Alaska Works
Partnership, Inc., stated that both the AFL-CIO and Alaska Works
Partnership, Inc. support the program. He explained that the
STEP program is particularly helpful to rural residents and
people who would not otherwise get training.
4:04:20 PM
LINDA HULBERT, Member, Alaska Workforce Investment Board,
testified that she has been involved in the STEP program for
some time and has watched the program grow and serve Alaskans.
She offered that she has served on the AWIB the past few years
and also served on the STEP task force. She offered her support
for HB 105. She stated that the bill is critical, noting the
importance of having a trained and flexible work force. She
related that this bill provides key funding to individuals and
to groups statewide. She opined that the program can help
provide workers with a living wage for families. She concluded
by reiterating her strong support for HB 105, without a sunset
provision to ensure continuity of the program and for adequate
planning purposes.
4:05:57 PM
The committee took an at-ease from 4:06 p.m. to 4:08 p.m.
4:08:02 PM
DOUG WARD, Director, Shipyard Development, Alaska Ship and
Drydock, Inc., explained that Alaska Ship and Drydock, Inc. is
an Alaska Corporation operating the Ketchikan shipyard under a
30-year agreement with the Alaska Industrial Development and
Export Authority (AIDEA). He stated that he serves as a member
of the Alaska Workforce Investment Board, and chairs the
Workforce Readiness and Employment Committee, as well as serving
on Commissioner Bishop's State Training and Employment Program
(STEP) Task Force. His corporation is a current STEP grant
recipient, accessing the STEP grant program to develop a stable,
knowledgeable, and skilled shipyard workforce. He stated he
supports Version C of HB 105. He asked members to keep in mind
that the workforce investment board was tasked by Commissioner
Bishop in 2007 to reassume and execute statutory authority and
fiduciary responsibilities to provide effective oversight of the
state's workforce investment initiatives. He related that the
commissioner has provided the leadership necessary for the board
to accomplish this task. He opined that the board transformed
itself into a "hardworking sleeves up" group of people
developing tools and policies to maximize the careers in Alaska.
He emphasized careers in Alaska, not just jobs. He thanked
Deputy Commissioner David Stone for his leadership on the STEP
task force. He indicated that the task force recommendations
are included in HB 105. He reiterated that this task force has
been the most productive task force he has served on,
particularly given the diverse interests represented including
the University of Alaska, organized labor, employers,
legislative staff, and federal workforce professionals. During
the course of the year long deliberation the group identified
common issues and solutions, and gave unanimous support for the
task force report, which is included in Version C.
4:11:37 PM
MR. WARD opined that the STEP program has been successful in
training Alaskans for good careers. This bill would provide
statutory equality for all potential STEP grant recipients and
participants and provides the statutory authority necessary for
the STEP program to proceed to help create legacy careers for
Alaskans. He urged members to support on HB 105.
4:12:26 PM
REPRESENTATIVE NEUMAN, after first determining no one else
wished to testify, closed public testimony on HB 105.
REPRESENTATIVE NEUMAN announced the bill would be held over for
further discussion.
HJR 16-DISABLED VETERANS PROCUREMENT PREFERENCE
4:13:10 PM
REPRESENTATIVE NEUMAN announced that the final order of business
would be HOUSE JOINT RESOLUTION NO. 16, Relating to federal
procurement preferences for small businesses in the state that
are owned and controlled by service-disabled veterans.
4:13:22 PM
SANDRA WILSON, Staff, Representative Carl Gatto, on behalf of
the prime sponsor, stated that HJR 16 recognizes the sacrifices
of the men and women that serve in the military. She stated
that they sacrifice the opportunity to start a small business in
order to protect our country. This resolution asks the federal
agencies to set aside three percent of federal procurement for
service-disabled veteran owned businesses. She explained that
currently two separate pieces of legislation passed by the
Congress mandates three percent of federal procurement for
service-disabled veteran owned businesses. Additionally a
Presidential order mandates that federal agencies comply with
the federal legislation. This resolution asks that the federal
agencies in Alaska follow the federal mandate and investigate
reasons the federal law requiring agencies to set aside three
percent of federal procurement for service-disabled veteran
owned businesses is not being followed by federal agencies in
Alaska.
4:14:35 PM
REPRESENTATIVE NEUMAN inquired as to whether this allows a
disabled veteran to partner with a large business and receive
advantage on construction contracts.
MS. WILSON answered that if the business is owned by a service-
disabled veteran, who owns a majority share, or in large
business 51 percent must be owned by a service-disabled veteran.
4:15:26 PM
REPRESENTATIVE NEUMAN related a scenario in which a service-
disabled veteran owned a company. He inquired as to whether he
could partner with an XYZ Construction company that employs 300
employees to obtain a preference.
MS. WILSON responded that he would not qualify as a service-
disabled veteran business under that scenario. She explained
that the federal mandate disallows a service-disabled veteran in
a large company from qualifying for the preference. In further
response to Representative Neuman, Ms. Wilson related her
understanding that in a large company the minimum service-
disabled veterans would need to be 50 percent plus one employee
to qualify for a preference.
4:16:55 PM
MCHUGH PIERRE, Director of Communications, Legislative Liaison,
Department of Military & Veterans' Affairs (DMVA), stated that
the DMVA supports HJR 16. He stated that the DMVA believes this
is the right thing to do. He explained the department believes
when the federal government makes rules that Alaskans need to
live by them. He opined that it is especially important to
follow the preference since Alaska has so many veterans. He
further opined that the state should do everything it can to see
to it that our service-disabled veteran business owners achieve
success. He urged members to quickly pass HJR 16.
4:18:05 PM
MR. PIERRE, in response to Representative Buch, offered that
Alaska's Congressional delegation is the appropriate group to
ensure that federal laws are enforced, especially the federal
mandate for preferences for service-disabled veterans.
4:19:07 PM
REPRESENTATIVE BUCH asked which entities within the federal
government have the responsibility for oversight. He opined the
testimony will cover this issue.
REPRESENTATIVE LYNN inquired as to what percentage of disability
would qualify a veteran to the service-disabled veteran status.
MR. PIERRE said he did not know.
4:19:51 PM
BUTCH WHITING, Owner, Big Four Enterprises, LLC, stated that he
is a service-disabled veteran who owns his company. He stated
that he supports HJR 16 since it provides hope. He explained
that he represents a new generation of veterans. He is a
veteran of Iraq and Afghanistan having served four tours in
those regions for a total of 10 years, 9 months, and 6 days. He
opined that he and many other veterans had to postpone their
desires to run organizations and businesses. He highlighted the
personal sacrifices that service-disabled veterans have made.
He opined that this resolution provides hope for the service-
disabled veterans. The federal government has recognized their
sacrifices and he hopes that this resolution will provide a
means for the state to assist service-disabled veterans. He
offered his belief that this is not a handout but a method to
offer inspiration for service-disabled veterans to continue to
work towards their goals and objectives. He said, "I hope this
resolution is passed." He opined a significant number of
Alaskans have paid a high price and this resolution could help
motivate veterans to pursue dreams that they thought were robbed
from them. He urged members to vote for HJR 16.
4:22:28 PM
TIM WHEELER, President, Alaska Veterans Business Alliance
(AVBA), provided a brief history of service-disabled veteran
preferences and federal laws. He stated that 51 percent is the
minimum ownership that will qualify a business as a service-
disabled veteran business. He opined that the program is self-
certified. He highlighted that the service-disabled veteran
could provide the DD 214 and the U.S. Department of Veteran's
Affairs (VA) Certificate of Disability as proof. He explained
that the disability rating can range from zero percent to 100
percent so long as the VA classifies the veteran as a service-
disabled veteran. He provided information on federal law such
that in June 1999, Public Law 106-50, also called the Veteran
Entrepreneurship Act, which created a three percent procurement
preference goal for service-disabled veteran businesses, which
applies to prime contracts and subcontracts. He stated that
Public Law 108-183, the Veterans Benefits Act of 2003 (15 U.S.C.
657f), allows service-disabled veterans to obtain sole source
contracts for goods and services used by the U.S. government.
In October 2004, President George W. Bush signed Executive Order
13360, which mandates all federal agencies to increase
opportunities for service-disabled veteran businesses. He said,
"And still, Alaska is left out." He remarked that the federal
Public Law 109-461, is also known as "Veterans First." He
offered his belief that all contracts bid out by the VA will go
to the service-disabled veterans first. He pointed out that if
a service-disabled veteran's business is not available, the bid
would be opened to competition by everyone.
4:24:59 PM
MR. WHEELER stated that the AVBA met with the contracting
officer of VA last summer, and one of Representative Don Young's
staff. He related that during this meeting the contracting
officer stated that she would not set aside any contracts for
service-disabled veteran or veteran owned businesses because she
feared the veterans would "jack up the price anyway we want".
He said, "She says it's only fair to open up for all
competition. This is total blatant disregard of Public Law 109-
461 and basically, a slam in all of our faces that put our lives
on hold for the defense and freedoms of this country." He
reiterated that the service-disabled veterans are not asking for
handouts, but would just like the federal law to be enforced.
He concluded by reminding members that when people drive in
Anchorage and Fairbanks they see yellow ribbons or stickers on
cars that read "Support the Troops." He asked, "When the troops
come home, put the weapons down, take the uniforms off, why does
the support stop?" He thanked the committee for allowing him to
testify.
4:26:23 PM
REPRESENTATIVE BUCH thanked him for his testimony. He recalled
conversations in his office. He inquired as to who has
enforcement authority over the federal law.
4:27:10 PM
RIC DAVIDGE, President, Vietnam Veterans of America - Alaska
Chapter, stated that he is also a member of the Veteran Business
Alliance. He responded to an earlier question by Representative
Buch, stating that no one in the agencies is assigned to enforce
veterans' preferences. The only tool is a report by the
Inspector General. He advised that Alaska's Congressional
Delegation has been working for nearly two years to urge federal
agencies in Alaska to meet the requirements. He explained that
the enforcement authority is discretionary within the agencies,
even though the executive order mandated performance
requirements for every agency. He emphasized the lack of
enforcement is one reason the veterans are requesting oversight
hearings in Alaska, and to request commanders who have refused
to enforce the laws to participate in the hearings.
4:28:41 PM
MR. DAVIDGE opined that the government has not met its legal or
moral obligations. He related that he is 75 percent disabled.
He focused on his main point, to have the state insist on
action. He related that he specifically has asked to have
Congressional members hold a joint hearing in Alaska. He
recalled during his time as staff to Senator Ted Stevens that
similar hearing were held with respect to Native health and
housing issues. He opined that procurement officers could be
called to testify as to the reasons they are not complying with
the federal requirements for service-disabled veteran
preferences. He stressed the importance of holding hearings in
the state. He concluded that this resolution is in the best
interests of the economy of Alaska. He opined that more and
more procurement decisions are being made outside Alaska.
4:30:31 PM
RUSSELL KELL, State Service Officer, Vietnam Veterans of America
- Alaska Chapter, stated that preferences for disabled veterans
have existed for years. However, those preferences have been
diminished in practice, he stated. Given the significance of
the contributions made by disabled veterans to all citizens, any
illusion of preference is unacceptable and dishonors the
obligation we all have. He urged members to endorse and support
HJR 16.
4:31:22 PM
MR. KELL, in response to Representative Neuman, answered that in
order to be considered a veteran, the person must serve in
active duty a minimum of 180 days, and must have an honorable
discharge, although there are some exceptions. He referred to
AS 38, Section 101 for the specific definition.
4:32:00 PM
KARL LERAY, Chairman, Alaska Veterans Business Alliance, on
behalf of the Alaska Veterans Business Alliance spoke in support
of HJR 16. He explained that it is critical to hold hearings in
Alaska to determine why the federal agencies are not complying
with state law. He explained his group has contacted several
federal agencies, including the U.S. Forest Service, U.S. Army,
U.S. Air Force, and Bureau of Land Management. He characterized
the response as a "tepid response at best." He pointed out that
the U.S. Corp of Engineers is supportive. He said, "We have
contracting officers that do not feel the veteran business is of
any great importance. It's just that simple." He indicated
that the organization wants the legislature to support them, and
recognize that it is a disservice to the veteran who has
sacrificed himself/herself to serve this country. He said,
"Then when ready to come back and start a business and move
forward in his dreams, his abilities, and his wants after his
service in the country, to basically just give that opportunity,
not a handout, just the opportunity. We have the drive. We
have the initiative. We've shown it when we wore a uniform. We
want to show it as business owners."
4:33:53 PM
BARBARA BACHMEIER stated that she is an 80 percent service
connected disabled veteran. She stated that she resides and
operates a research company in Juneau. She identified that she
is affiliated with the Women Serving Women Veterans and the
Alaska Military Veterans Political Action Committee. She
offered to add to the testimony given for the definition of a
service-disabled veteran that would allow him/her to qualify for
procurement preferences. She advised that the veteran must be
fully active in the conduct of the business. Thus, the instance
in which the grandfather was the service connected disabled
veteran, but had nothing to do with the business would be
unacceptable. The service-disabled veteran must have a key
management role, she stated.
4:35:40 PM
MS. BACHMEIER stated that she joins other service-disabled
veterans, veterans' organizations, and veterans' advocates in
testifying today pertaining to passage of HJR 16. She offered
her belief that this is an excellent move in the right
direction. She suggested her preference for a stronger use than
the word "goal" in the original federal legislation, although
that word could suffice for service-disabled businesses, if
federal agencies turned the three percent goal into a tangible
reality. Then service disabled veterans will benefit from the
original intent of the legislation, which is not happening
currently. She stated that in order for federal agencies doing
business to understand the federal requirements, which leaves no
room for claims of unawareness, it is important to hold joint
oversight hearings in Alaska. Thus, a public review of the
contractor's performance with respect to federal regulations is
important to have on the public record. She said, "If they have
wonderful explanations of why they did not meet that three
percent set aside goal, we'd want to examine those." She
offered that the veterans would like to see documentation and
thoroughly analyze why the federal procurement preference was
disregarded. She reiterated that federal agencies doing
business in Alaska are required to comply, but they are not
doing so. She urged members to pass this resolution. She
stated that later she would like the legislature to consider
what Florida is considering, which is to have a state set aside
for service-disabled veterans. She concluded by stating that
she has the highest regard for General Eric Shinseki. She
remarked that she served under him while on duty at the
Pentagon. She further opined that President Obama could not
have selected a more appropriate person to lead the U.S.
Department of Veterans Affairs. She referred to page 2, line 31
of HJR 16, and mentioned that the General James B. Peake, M.D.
is listed, but he is General Shinseki's predecessor. She asked
members to consider making that change.
4:38:48 PM
REPRESENTATIVE NEUMAN, after first determining no one else
wished to testify, closed public testimony on HJR 16.
4:39:03 PM
REPRESENTATIVE NEUMAN announced that HJR 16 would be held over
for further discussion.
4:39:37 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:39 p.m.