HB 301-ELECTRICIAN & PLUMBER APPRENTICESHIPS  3:51:50 PM CHAIR SPOHNHOLZ announced that the next order of business would be HOUSE BILL NO. 301, "An Act relating to certificates of fitness for plumbers and electricians." 3:52:28 PM REPRESENTATIVE STUTES moved to adopt the proposed committee substitute (CS), labeled 31-LS1506\E, Fisher, 3/6/20, as the working document. CHAIR SPOHNHOLZ objected for the purpose of discussion. 3:52:53 PM REPRESENTATIVE GABRIELLE LEDOUX, Alaska State Legislature, as prime sponsor, provided a brief explanation of HB 301. She stated that Alaska has a great apprenticeship program; however, there are regulations that have been proposed that would gut it. Essentially, she said, HB 301 would codify the current regulations regarding apprenticeship programs so that the changes promulgated by the administration would not go into effect. 3:53:48 PM REPRESENTATIVE FIELDS reported that they heard 375 public comments in opposition to the proposed regulations and in favor of the status quo. He said the proposed CS maintains that status quo to provide certainty for the industry. CHAIR SPOHNHOLZ removed her objection. There being no further objection, Version E was adopted as the working document. 3:54:42 PM DEBORAH KELLY, Director, National Electrical Contractors Association & International Brotherhood of Electrical Workers Apprenticeship Program, stated that she is in favor of the committee substitute (CS) for HB 301. She said there are only two building trades in Alaska that require licenses: plumbers and electrical workers. She added that there is good reason for licensing these trades. The work performed by plumbers and electrical workers is complex and must be done properly; however, once its completed, its often hidden behind walls, floors, and ceilings. Consequently, the state has several overlapping inspections to ensure that plumbing and electrical installations are safe for the public: administers licenses, state conducted inspections, and certificates of fitness. These licenses ensure that workers know what theyre doing before they work alone. She explained that this is accomplished by requiring that trainees are in an apprenticeship the industry standard for building competency. She said each apprenticeship may be somewhat different, but they all follow the same basic standards and expectations for training and experience to create a qualified person. She explained that the Department of Labor & Workforce Development (DLWD) recently proposed regulations that would remove this apprenticeship requirement, effectively stripping away all training and relevant experience requisites for these trades. She offered her belief that it would have created economic advantages for businesses not using apprenticeships and allowed employers to hire out-of-state, seasonal, low wage labor instead of investing in Alaskas workforce. She noted that stakeholders were not consulted, and the proposal included several provisions that showed a lack of understanding of the realities in the field. HB 301, she said, will prevent the department from turning trainee licenses into nothing more than a ransom paid to work in the plumbing or electrical trade. This bill will help ensure that the department respects the statutory intent for public safety. She urged the passage of CSHB 301. 3:59:25 PM DAVE MCALLEN, CEO, The Superior Group Inc.; National Electrical Contractors Association, expressed his hope to offer insight from a contractor's perspective. He informed the committee that he is the chief operations officer for The Superior Group Inc., which is an employee-owned, Alaska-based contractor that employs both electrical workers, plumbers, and pipefitters. HB 301, he said, will have a direct impact on their business operations. He stated that he is also the vice president of the Alaska chapter of the National Electrical Contractors Association (NECA). He said that as an employer utilizing a workforce heavily comprised of skilled tradespeople, registered apprenticeship is an important tool in hiring and vetting the workforce. A standardized means of identifying experience levels and verifiable skillsets is critical in developing and qualifying his crews. He said that his tradespeople can work in high-risk environments and it is imperative that the product is completed in a safe and code-compliant manner. He said that his business appreciates and leans heavily on registered apprenticeship and the associated licensing requirements. Without it, it would be difficult to effectively evaluate employees and ensure that theyre being placed in an appropriate role. It is important for both the personal safety of the employee and for the general public that inhabits the property on which they worked. Furthermore, in todays competitive market, the lower scale apprentice is a factor in determining competitive bids and there is an expectation that they are working on the installation, not simply observing the journeyman doing the install. Consequently, he said that he sees a very real need for that individual to be licensed to do the work. He stated that apprenticeship and licensing work well in their current form. Furthermore, he surmised that it is the best and most cost-effective means of developing a local workforce. To conclude, he stated his support for HB 301 and for codifying a system that is currently working. CHAIR SPOHNHOLZ announced that HB 301 was held over.