HOUSE BILL NO. 226 "An Act repealing the termination of the state training and employment program; and providing for an effective date." RYNNIEVA MOSS, STAFF, REPRESENTATIVE JOHN COGHILL, reported that the sponsor feels that it is very important for the state to step up to the plate to train the workforce for the gas pipeline. HB 226, in its present form, would give the State Training and Employment Program (STEP) six more years. The original bill would have made STEP into a permanent program. Ms. Moss related that STEP is a good mechanism toward reducing welfare. She mentioned that there are legal concerns regarding this legislation and an amendment has been written to address those concerns. Governor Palin's transition team recognized the value of STEP and recommended restructure of the Alaska Workforce Investment Board and to revise STEP to its original intent. She reported support for the bill by members of the Alaska Builders and Contractors, the Department of Labor, and labor leaders. The sponsor of the bill has tremendous faith in Commissioner Bishop to make the necessary changes to the STEP program as recommended by the bipartisan transition team. She requested the Committee to pass HB 226. 9:03:17 AM GUY BELL, ASSISTANT COMMISSIONER, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, thanked Representative Coghill for sponsoring HB 226. Mr. Bell related that STEP has demonstrated its success the past 18 years, serving over 25,000 Alaskans. He discussed the evaluation from DOL called the "Training Program Performance Report", which contains STEP as one of its programs. He said he looks forward to reviewing the STEP program with all involved parties. He shared statistics related to the success of the STEP program that demonstrate it is working to reduce the number of unemployment benefits and increasing wages. 9:06:13 AM Representative Crawford asked about the amendments. Co- Chair Meyer said they would be discussed shortly. REBECCA LOGAN, PRESIDENT, ALASKA BUILDERS AND CONTRACTORS, referred to a position paper in the members' packets. She said she is in favor of increasing the current contribution. She spoke in strong support of the bill. BARBARA HUFF TUCKNESS, DIRECTOR OF GOVERNMENTAL AND LEGISLATIVE AFFAIRS, TEAMSTERS LOCAL 959, testified in support of HB 226. She pointed out that joint employer union representatives manage the training trusts, which sets a very strong groundwork from a long-term perspective. She added that STEP augments a process that is already in place. STEP is an infusion of additional dollars. She spoke of the importance of oversight. Representative Gara asked for Ms. Huff Tuckness's opinion of the amendments. Ms. Huff Tuckness reported that she supports Amendment #1. She wondered why the date was reduced in Amendment #2. 9:14:46 AM Co-Chair Meyer MOVED to ADOPT Amendment #1: Page 1, line 1, following "program;" Insert "requiring a review of the program;" Page 1, following line 8: Insert a new bill section to read: "*Sec.2. The uncodified law of the State of Alaska is amended by adding a new section to read: REVIEW OF THE STATE TRAINING AND EMPLOYMENT PROGRAM. The Department of Labor and Workforce Development, in consultation with the entities listed in AS 23.15.645(b), shall work with representatives of entities eligible to submit a grant application under AS 23.15.620-23.15.660 and that provide industry specific training, on-the-job training, institutional training, classroom job linked training and employment assistance to conduct a review of the priorities and procedures of the state training and employment program. The entities involved in the review of the state training and employment program must represent organized labor and non-union entities. Following the review, the department shall publish a written report containing its findings and recommendations, including changes, that it recommends be made to state statute and regulations. The department shall deliver the report to the president of the senate and the speaker th of the house of representatives on or before the 30 day of the 2008 regular legislative session." Renumber the following bill section accordingly. Vice Chair Stoltze OBJECTED. Co-Chair Meyer noted that both amendments are at the request of the sponsor. Ms. Moss explained that Amendment #1 requires DOL to put together a report and present it to the President of the Senate and to the Speaker of the House. It echoes recommendations made in the transition report. Representative Crawford thought the amendment was vague. Ms. Moss reported that the sponsor tried to get all parties to come to the table, which they have. He wanted some flexibility for all of those people to work together. Vice Chair Stoltze WITHDREW his objection. There being NO OBJECTION, it was so ordered. 9:16:58 AM Co-Chair Meyer MOVED to ADOPT Amendment #2: Page 1, line 8 Delete "2014" Insert "2009" Vice Chair Stoltze OBJECTED. Ms. Moss explained that the amendment gives DOL two years to make the changes to the program to make it more efficient, more accountable, and more transparent. 9:18:42 AM At-ease. 9:23:41 AM Representative Crawford spoke against Amendment #2. He concurred with Amendment #1. He said that Amendment #2 does not allow enough time to make any changes. Co-Chair Meyer mentioned that the commissioner was in favor of the amendments. Ms. Moss said that the original bill ended sunsets completely, but through discussions with trade unions, contractors, and DOL it was agreed upon to set a two-year sunset. Vice Chair Stoltze asked if the intent of the sponsor is to make STEP permanent after the two-year sunset. Ms. Moss said it was. Representative Hawker noted that legitimate concerns were raised in previous committees and spoke in favor of both amendments. 9:26:59 AM Representative Kelly spoke in favor of the sunset in two years. Representative Gara commented that the sunset takes place before the evaluation would be complete. He spoke against Amendment #2. Ms. Moss said that the report is due to the th legislature on the 30 day of the 2008 legislative session. Vice Chair Stoltze maintained his objection. A roll call vote was taken on the motion. IN FAVOR: Kelly, Stoltze, Thomas, Foster, Hawker, Chenault, Meyer OPPOSED: Joule, Nelson, Crawford, Gara Representative Gara questioned if 2014 was in the bill. Co- Chair Meyer said it was June 30, 2014. The amendment passed (7-4). 9:31:05 AM SEAN MONTGOMERY, LABORERS LOCAL 341, ANCHORAGE, shared personal experiences with STEP training. He spoke in support of HB 226 and allowing STEP grants to continue. PAT FALON, LABORERS LOCAL 341, ANCHORAGE, testified in support of HB 226 and voiced gratitude for the training provided by the STEP program. He spoke against Amendment #2. JOE CRUM, PRESIDENT, NORTHERN INDUSTRIAL TRAINING (NIT), spoke of his extensive background in training programs. He detailed programs offered by NIT and the difficulties of securing funding. He testified in support of STEP only if the problems are fixed which have cut NIT out of receiving STEP funding. Co-Chair Chenault asked for an explanation for the funding cuts. Mr. Crum said he did not know why. He highlighted successes of his programs. Some grantees were given funding while others were left unfunded. Representative Kelly commented that Mr. Crum's input is valued. 9:40:53 AM Co-Chair Meyer noted that the fiscal notes will have to be modified to reflect the new date of 2009. Representative Foster MOVED to REPORT CSHB 266 (FIN) out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSHB 226 (FIN) was REPORTED out of Committee with a "do pass" recommendation and with two new fiscal notes by the Department of Labor and Workforce Development. 9:43:16 AM