HOUSE BILL NO. 149 "An Act relating to allowing certain child day care providers to organize for the purpose of collective bargaining." 3:16:28 PM Co-Chair Merrick Representative Rasmussen MOVED to ADOPT Amendment 1, 32- LS0474\A.7 (Klein, 3/16/22) (copy on file): Page 6, line 27: Delete"." Insert";" Page 6, following line 27: Insert a new paragraph to read: "(6) requires an employee or child day care provider to become a member of an organization that represents childcare providers." Co-Chair Merrick OBJECTED for discussion. Representative Rasmussen explained the amendment. She communicated that the amendment clarified that an employee or childcare provider did not have to become a member of an organization that represents childcare providers. The amendment offered a choice and she asked for members support. Representative Josephson asked whether the sponsor supported the amendment. REPRESENTATIVE ZACH FIELDS, SPONSOR, had worked on the amendment with Representative Rasmussen and supported the amendment. He reminded the committee that the bill proposed a sectorial bargaining model, where the entire sector negotiated with the state. He did not believe that union membership should be mandated under the sectorial model and should be an opt-in model. He felt that the sectorial model did not need any degree of coercion. The language ensured the providers that it was a choice to affiliate with a union should the sector decide to form one. 3:18:35 PM Representative Josephson believed that members would pay dues and if negotiated benefits were passed on to non- members then non-union employees would enjoy the benefits without any costs. He asked whether he was correct. Representative Fields responded, "not necessarily." He explained that if sectorial bargaining was adopted the sector would seek out a union it wanted to affiliate with. He exemplified the sector joining the Service Employees International Union (SEIU). Some small providers might opt out of being a part of the union because they did not need the benefits a union provided. He restated that there were many benefits of sectoral bargaining because it gave the sector a voice without coercing individual providers or employees to join the sectoral bargaining structure. Representative Josephson indicated that he was well informed about labor unions. He thought that joining was a "critical issue" regarding unfair labor practices (ULP) and whether an employee would receive attorney privileges. 3:20:03 PM Representative Josephson wanted to make sure the sponsor was comfortable with the amendment. Representative Fields had asked Representative Rasmussen to offer the amendment. He reminded the committee that most parts of the state's economy were involved in "enterprise based bargaining" which constituted an individual company and a union that engaged in negotiations. He shared that within the enterprise based bargaining model he did not support the right to work model because it enabled "free riders." He furthered that in a sectoral bargaining process he did not think the same problems associated with free riders existed. He remarked that it was a new idea for the sector and the sector was diverse and he did not believe that it was appropriate to require individuals to be a member of a union. He believed that the employees would choose to join the union when the benefits were worth the costs for things like healthcare, training, and legal fees. Co-Chair Merrick asked for clarification of SEIU. Representative Fields responded that it stood for Service Employees International Union that included childcare providers and used the sectoral bargaining model in other states. Representative Wool inquired whether the amendment would be in the union's laws as well. Representative Fields replied that because domestic work was excluded from the National Labor Relations Act, it was entirely up to a state whether to require union membership within a sectorial bargaining framework. He emphasized the importance of allowing people to opt in with a new bargaining option in the state. 3:22:51 PM Representative Rasmussen wrapped up the amendment. She wanted to ensure that providers felt comfortable that they could opt out of the sectorial bargaining agreement and could still receive state childcare assistance. Co-Chair Merrick withdrew her objection. There being NO OBJECTION, it was so ordered. Amendment 1 was adopted. 3:23:34 PM Representative Josephson MOVED to ADOPT Amendment 2, 32- LS0474\A.6 (Klein, 3/16/22) (copy on file): Page 1, line 2, following "bargaining": Insert"; and establishing the child day care provider fund" Page 8, following line 28: Insert a new bill section to read: "* Sec. 19. AS 37.14 is amended by adding a new section to read: Article 11. Child Day Care Provider Fund. Sec. 37.14.850. Child day care provider fund established. (a) The child day care provider fund is established as a separate fund in the state treasury for the purpose of implementing the monetary terms of an agreement applicable to child day care providers entered into under AS 23.40.070 - 23.40.260. Money in the fund does not lapse. The fund consists of (I) money appropriated to the fund; (2) income earned on investment of fund assets; and (3) donations to the fund. (b) The legislature may annually appropriate money from the fund to implement the monetary terms of an agreement applicable to child day care providers entered into under AS 23.40.070 - 23.40.260. (c) Nothing in this section creates a dedicated fund." Renumber the following bill sections accordingly. Co-Chair Merrick OBJECTED for discussion. Representative Josephson explained that the amendment established a trust fund to implement the sectorial bargaining agreement. He invited the bill sponsor to speak to the amendment. Representative Fields spoke to the amendment. He articulated that since the bill was introduced in the prior session, the state had experienced a financial windfall that could allow for a structure that could inject "meaningful public investment into the childcare sector." He relayed hearing testimony that the childcare sector needed more power in negotiating with the state and that the state was never going to have an adequately supplied childcare workforce at affordable prices without more public investment. The childcare trust fund was based on models used in other states, that after initial capitalization, was managed under an endowment model. He believed that when the state experiences a "significant" revenue windfall, it should consider setting some revenue aside to pay out long-term benefits. He explained that the legislature would appropriate a portion of the savings from the childcare trust fund and if paid out at a 5 percent rate it could be the largest investment in childcare that the state ever made. He cited significant public testimony regarding the issue in the House Labor and Commerce Committee. He offered that the United States Chamber of Commerce Foundation addressed the "dire need for intervention in the childcare sector." He heard from multiple organizations in support of a childcare trust fund and from parents who had to drop out of the workforce due to the unaffordability of childcare. He emphasized that the "crisis" in childcare needed to be addressed and the trust fund was beneficial to solving the problems. 3:26:41 PM Co-Chair Merrick withdrew her objection There being NO OBJECTION, it was so ordered. Amendment 2 was adopted. 3:26:55 PM Representative Rasmussen spoke in support of the legislation. She believed that the bill had a lot of merit and could help with the childcare shortage in the state. 3:27:50 PM Co-Chair Foster MOVED to REPORT CSHB 149(FIN) out of committee with individual recommendations and the accompanying fiscal note. Representative Johnson objected and did not speak to her objection. A roll call vote was taken on the motion. IN FAVOR: Edgmon, Ortiz, Josephson, Wool, Foster, Merrick OPPOSED: Thompson, Johnson The MOTION PASSED (6/2). CSHB 149(FIN) was REPORTED out of committee with three "do pass" recommendations and five "no recommendation" recommendations and with one new fiscal impact note from the Department of Labor and Workforce Development. 3:29:12 PM AT EASE 3:30:19 PM RECONVENED