HB 6-EMPLOYMENT PREFERENCE FOR VETS & SPOUSES    4:27:23 PM CHAIR OLSON announced that the final order of business would be HOUSE BILL NO. 6, "An Act relating to a voluntary preference for veterans and for spouses and domestic partners of veterans by private employers." [Before the committee was CSHB 6(MLV)]. 4:27:39 PM REPRESENTATIVE CHRIS TUCK, Alaska State Legislature, stated that HB 6 would remove barriers to employment for veterans and their spouses. According to a 2012 survey of veterans from all eras, more than two-thirds of respondents said they found it difficult to transition from military service to civilian life, attributed largely to employment challenges. As of June 2014, nearly 600,000 veterans were unemployed. Recent employment data from the Veterans' Benefits Administration showed that in February 2015 the jobless rate for post 9/11 veterans at 6.7 percent, with young male veterans experiencing a jobless rate of more than 18 percent. REPRESENTATIVE TUCK said that the military discharges roughly 160,000 active duty service members and approximately 110,000 reserve and National Guard service members each year. During 2013, Alaska saw over 2,000 military personnel separate from service and return home, and those figures will likely rise in coming years. Many states have made great strides to improve veteran employment by removing professional licensing barriers and crediting military education and experience. However, employment ultimately depends on employers providing workforce opportunities. Although forty states and the District of Columbia award preference to veterans who are being considered for hire to a public position, private employers are prohibited from establishing comparable business hiring policies. This bill would allow an optional veteran hiring preference for private employers by taking advantage of an option available under the Civil Rights Act of 1964. To date, twelve states have adopted similar legislation, which is supported by the United States Department of Defense. It's time Alaska takes action by joining these other states in passing HB 6 to help our veterans and our small businesses, he said. 4:29:01 PM REPRESENTATIVE TUCK related a study completed by Iraq and Afghanistan Veterans of America indicated that one in five veterans are unemployed. This study also stated that veterans named finding a job as the greatest challenge in transitioning into civilian life. Alaska has made significant inroads and great strides to improve veteran employment by removing professional licensing barriers and crediting military education and experience; however, employment ultimately depends on employers providing workforce opportunities. Veterans have cited practical hurdles such as competing with candidates who have been in the workforce longer, lack of education, and challenges in showing how their military experience translates into skills of interest to a civilian employer, and the current economic situation. 4:29:50 PM REPRESENTATIVE TUCK said that the United States Department of Defense (DOD) has found many private sector employers want to hire veterans due to their unique skill sets, work ethic, and reliability, but are hesitant to do so for fear of being sued under Title 7 of the Civil Rights Act of 1964. This Act prohibits veteran preferences for employment as unlawfully discriminatory; however, Section 11 of the Act also allows rights or preferences can be granted to veterans as long as authorized under federal, state, and local law. 4:30:41 PM REPRESENTATIVE TUCK reported that currently all 50 states, the District of Columbia, and Guam award preference to veterans who being considered for hire to public positions; however, private employers are prohibited from establishing comparable business hiring policies. He said that HB 6 would allow an optional veteran hiring preference for private employers by taking advantage of an option available under the Civil Rights Act of 1964. To date, 17 states have adopted similar legislation, which has been supported by the United States Department of Defense (DOD) with legislation pending in 14 additional states. In conclusion, he said, "It's time Alaska takes its action by joining other states in passing HB 6 to help our veterans and our small businesses." 4:31:12 PM REPRESENTATIVE JOSEPHSON directed attention to the third bullet, which seemed to say, "It's unlawful unless it becomes lawful." REPRESENTATIVE TUCK answered that under the Human Rights Commission, the law allows states to provide that provision if states decide to do so and all 50 have done so for public employees. This bill would ask for the preference to be granted to the private sector. 4:32:00 PM REPRESENTATIVE KITO asked whether other states allow this for private employers. REPRESENTATIVE TUCK reiterated that 17 states have done so. 4:32:14 PM REPRESENTATIVE HUGHES asked for further clarification that if a private employer offered a preference that it would be in violation of federal law. She recalled from a previous committee that it was important to protect business owners from lawsuits. 4:32:39 PM REPRESENTATIVE TUCK answered yes; that currently if an employer must choose between two applicants, the employer could not recognize the veteran's service. He said that as previously mentioned, Section 11 does allow states to adopt preferences so that states are not in violation of the Human Rights Commission. 4:33:08 PM CHAIR OLSON declared that he was a veteran and wished to state so since it may represent a potential conflict of interest. REPRESENTATIVE TUCK thanked him for his service. CHAIR OLSON opened public testimony on HB 6. 4:33:54 PM MARK SAN SOUCI, Regional Liaison, State Liaison Office, U.S. Department of Defense, stated that he was a retired US Air Force officer and he currently serves the Department of Defense's Regional Liaison for the Northwestern states including Alaska. He stated that Representative Tuck summarized HB 6 well. He emphasized that HB 6 has a [zero] fiscal note and the bill addresses private employers voluntarily giving employment preference to veterans. Although this was a new issue for the Department of Defense, it was not a new issue for the National Conference of State Legislatures (NCSL). Representative Saddler has been active on the NCSL's Task Force on Military and Veterans' Affairs. He reported that in 2015 a number of states adopted legislation similar to HB 6, including Montana, Kentucky, Nebraska, and Utah. He reported that the Bureau of Labor's unemployment statistics for March 2015 for 18-24 year old veterans was 19.1 percent as compared to 11 percent for non- veterans and 25-34 year-old veterans have a 7.8 percent unemployment as compared to 5.8 for non-veterans. In fiscal year (FY) 2014, the Defense Manpower Data Center reported that 2,450 military in Alaska separated from active reserve and National Guard components, which was up 13 percent from FY 13. MR. SAN SOUCI said that the state will continue to see new veterans, with proven work ethic, with unique skill sets, and reliability that is very much valued by the private sector. He added that the training has been paid for by through US taxes. 4:36:25 PM RUSSELL BALL said he owns a small IT [Internet Technology] business. He spoke in support of the bill. He stated he has been in business for 30 years and have had many veterans who have worked for him. He emphasized that veterans have a skill set, military training, and productivity. He has found that veterans have good discipline and work ethic, possess problem solving and troubleshooting skills. He characterized veterans as being a valuable resource. He stated that many employees lack basic skills. He envisioned that this bill would allow him to advertise that he provides a preference for veterans. He hoped that veterans who are making a huge transition would gain confidence in knowing that their skill set was considered desirable. Further, it could give veterans a boost of morale building confidence, his business would be protected, and Alaska could send the right message to veterans that their service was valued, their skill set is valued, and they can make the transition to civilian life. 4:39:44 PM RUSSELL POUNDS, Owner, Pacific Rim Media, stated that he owns his own marketing and media communications business and his father and brother are veterans. First, his company values collaboration and veterans bring teamwork, which is a great asset to his business. Second, he agreed with the earlier testifier who desired to give preferences to veterans transitioning out the military. Finally, it will be great to not offend anyone who isn't a veteran and allow the preference for veterans. He said he fully supported HB 6 and he hoped it can become a part of the future in Alaska. 4:41:57 PM CHAIR OLSON, after first determining no one wished to testify, closed public testimony on HB 6. REPRESENTATIVE HUGHES offered her support for HB 6. 4:42:32 PM REPRESENTATIVE HUGHES moved to report CSHB 6(MLV) out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 6(MLV) was reported from the House Labor and Commerce Standing Committee.