HOUSE BILL NO. 132 "An Act relating to technical education and apprenticeships; relating to concurrent vocational education, training, and on-the-job trade experience programs for students enrolled in public secondary schools; relating to child labor; and providing for an effective date." 9:03:35 AM REPRESENTATIVE ZACH FIELDS, SPONSOR, relayed that the bill was sponsored by the House Labor and Commerce Committee. He provided a PowerPoint presentation titled "Apprenticeship Expansion Act" (copy on file). He began with slide 1 "Apprenticeship and CTE Background": • Alaska has high-performing apprenticeship programs in traditional trades, and recent innovation with apprenticeship in new industries • School districts want to expand CTE and school-to- apprenticeship but need support to meet demand • Other states and nations have shown potential to expand apprenticeship & CTE • Expansion of apprenticeship and CTE helps people pull themselves up by their bootstraps without student debt • Good state policy positions us to capture and capitalize on federal apprenticeship grants Representative Fields turned to slide 2, "Incentivize Employer Participation": • Establishes $1,000 / apprentice employer tax credit, and $1,500 / veteran apprentice • Based on successful model from other states and addressed what the bill would do. The bill would incentivize employer participation. Representative Fields mentioned the success of apprenticeship programs in South Carolina. He thought the legislature should be pushing the Department of Education and Early Development to think more broadly about how to support apprenticeships. Representative Fields turned to slide 4, "Depts. Labor, Education Coordination": • Directs DOLWD and DEED to collaborate in provision of technical and financial support for: o School to apprenticeship programs o Science, Math, and Engineering CTE programs 9:06:58 AM Representative Fields moved to slide 5, "College Credit for CTE and Apprenticeship": • Directs University to explore ways to expand dual credit for CTE courses and college credit for participants in apprenticeship and discussed the college credit for CTE Representative Fields noted that the bill language was written in consultation with the University. He noted that the bill was endorsed by a wide range of organizations, including the Associate Builders and Contractors, Alaska State Hospital and Nursing Home Association, the Matanuska- Susitna School District. He quickly showed endorsing organizations on slide 6. Representative Fields advanced to slide 7, "Financial Implications": • Zero cost from language affecting DEED, DOLWD, University system • Cost is per-apprentice tax credits of $1,000 or $1,500 for veterans • Tax credits apply once, not for each year of apprenticeship participation Representative Fields noted that there would be an indeterminate fiscal note from the Department of Revenue. He shared that the apprenticeships usually lasted 1 to 6 years. Representative Fields spoke to slide 8, "Summary": • Incentivize employer participation • Encourage cross-departmental collaboration • Support school districts • Expand dual credit and post-secondary pathways Representative Fields relayed that he had heard definitively that school districts wanted to support apprenticeship more broadly but did not have the resources. He reiterated that there was an opportunity to capture federal grants to support school apprenticeships. He noted that invited testimony would go into greater detail about the bill. 9:09:03 AM MS. AMY NIBERT, PRESIDENT AND CEO, ASSOCIATED BUILDERS AND CONTRACTORS OF ALASKA, ANCHORAGE (via teleconference), introduced herself and noted that her organization operated one of the largest apprenticeships in the state and supported career and technical training. She relayed that the Associated Builders and Contractors of Alaska (ABC) supported an increase in opportunities for Alaskans to be successful in apprenticeship programs and believed that HB 132 would help drive high school students to success. Representative Rasmussen asked how many new apprentices the ABC organization took on in one year. Ms. Nibert answered that the organization took on apprentices year-round after an application process and interview. She cited that ABC received 200 to 250 applicants per year and currently they had between 200 and 300 individuals working in apprenticeships. Representative Rasmussen asked what percentage of ABC was organized versus unorganized labor. Ms. Nibert replied that the organization represented open shop contractors but had one union contractor that utilized ABC's sprinkler-fitter apprenticeship program. 9:12:23 AM MARI SELLE, ALASKA PRIMARY CARE ASSOCIATION, ANCHORAGE (via teleconference), indicated that she represented the workforce development of the Alaska Primary Care Association (APCA). She believed the bill had to the potential to open doors to youth that wanted to enter health and human services careers. She noted that APCA had been a multi-agency sponsor of apprenticeships since 2017, working with various healthcare employers including community health centers represented by the association. She noted that there were active healthcare apprentices learning and working all over the state including billers and coders, clinical medical assistants, and community health workers. She continued that there were registered apprenticeship programs for medical secretaries, electronic health record specialists, and a pharmacy tech apprenticeship was coming soon. She cited that about 25 percent of apprentices were age 18 to 24. The model had been amazing for many employers. Ms. Selle continued her testimony in support of the bill. She commented that the model worked well for people going into entry level jobs in healthcare and human services. Professionals were already mentoring and training staff in the recruitment pool, and as a multi-agency sponsor APCA could provide the formal education and a structured way to ensure workers had the skills to be successful. She mentioned a partnership with Alaska Pacific University, through which apprentices could earn an undergraduate certificate and go on to further degrees and career ladders. She shared that the programs were especially well suited for youth on a work track instead of a college track. She expressed that the apprenticeships provided a "well-lit path" to work right out of high school, and students could earn college credits simultaneously if they chose to do so. 9:16:40 AM Representative Rasmussen asked for a rough estimate of the number of apprenticeship applicants they accepted per year. Ms. Selle answered that currently there were about 80 active apprentices on the APCA roster. She estimated that about 80 percent were new apprentices from the past calendar year. There were about two cohorts per year with about 30 new apprentices. 9:17:45 AM TRISH ZUGG, CTE PROGRAM ADMINISTRATOR, MAT-SU SCHOOL DISTRICT (via teleconference), read from a prepared statement. She considered that the key to providing a educated, skilled workforce in Alaska was connecting our systems of learning and assuring high quality of programs at every level. She discussed high quality career and technical education, effective workforce development that included rigorous sequence of study, recognized credentials, equity of access, technical expert instructors, and contextualization of academics. She asserted that the most effective evidence was work-based learning outside the classroom. The district's goal was to have work-based learning for all students, and apprenticeship was the gold standard for learning at work. She cited that apprenticeship provided for a means to earn money for high-demand careers, a pathway to degrees, debt- free education, and high wages. She discussed areas for apprenticeships. She mentioned preparing students for all levels of transition. She cited that apprenticeship had proven results, and cited that participants earned 35 percent more than the average Alaska worker. She continued that workers who completed their apprenticeship earned an average of $78,990. She suggested that apprenticeships prepared individuals for life and not only a job. She referenced the importance of soft skills, and the long-term success of employees. The asserted that the need for training providers was important. The district was ready to customize training opportunities and she emphasized the importance of employer buy-in and sponsorship. Ms. Zugg continued her testimony in support of the bill. She thought apprenticeships should be an institutionalized norm. She thought the bill would be foundational for the Department of Labor and Workforce Development to better guide and support the efforts. She discussed advantages to enhance partnerships such as a more upscale workforce invested locally, recruitment gains, turnover reductions, and enhanced relationships. She asserted that the bill would be good for the employer and employee and the readiness of Alaska's workforce and the economy. She mentioned a COVID-related acute labor shortage and felt pre-apprenticeship and apprenticeship could provide a pathway for preparing and returning employees to work in high demand occupations and adding to the ability to a path towards advancement. 9:23:33 AM Vice-Chair Ortiz thought it appeared that the Matanuska- Susitna (Mat-Su) School District already had an extensive CTE program. He asked how the bill would augment the district's existing program. Ms. Zugg answered that the district had a robust number of high-quality training programs, but the key linkage was to connect the programs with work outside the classroom. She continued that apprenticeship was the modality allowing for requirement, eligibility, and contracting fidelity. The district needed a liaison with the Department of Labor and Workforce Development to connect with systems, and a connection to the job center. She stressed the importance of connecting to the training programs and getting students out for work-based learning opportunities. 9:25:35 AM Vice-Chair Ortiz asked if the district had an existing program where students were in work-based apprenticeships and earned credit for graduation. Ms. Zugg replied that the district did give credit towards graduation. The school did periodic evaluations during which teachers met with employers. Teachers could evaluate soft stills and provide training specific subsets of skills that were needed. She mentioned part of the bill with a spectrum for learning. She discussed foundational courses that led to industry certifications. She mentioned setting up a seamless system that would allow students to gain credit for working to transfer into a career. Representative Rasmussen asked if the Mat-Su had any CTE courses for correctional or public safety officers. She thought the state had a deficit with the number of police and correctional officers needed in the state. Ms. Zugg answered that there was currently not an active program for apprenticeship with correctional or public safety officers. She mentioned a program of study for law. The district had looked at the Explorer Program, which was no longer active. She cited the need for a connection to curriculum. She noted that the Department of Corrections, Alaska State Troopers, and police agencies were invited to the college and career fair in the Mat-Su to recruit and talk to students. Co-Chair Merrick set the amendment deadline for Monday evening. HB 132 was HEARD and HELD in committee for further consideration. 9:29:52 AM AT EASE 9:31:20 AM RECONVENED