HB 301-ELECTRICIAN & PLUMBER APPRENTICESHIPS  3:38:33 PM CHAIR SPOHNHOLZ announced that the next order of business would be CS FOR HOUSE BILL NO. 301(L&C), "An Act relating to certificates of fitness for plumbers and electricians." 3:39:05 PM REPRESENTATIVE GABRIELLE LEDOUX, Alaska State Legislature, as prime sponsor, provided a brief summary of HB 301. She said the bill is about adding the current apprenticeship regulations into statute. 3:39:41 PM REPRESENTATIVE FIELDS added that the purpose in putting forward this legislation is to ensure that apprenticeship is the standard for trainees, as it has been in Alaska for decades. He noted that he does not support any attempt by the Department of Labor & Workforce Development (DLWD) to create workarounds around apprenticeship. 3:40:35 PM REPRESENTATIVE STUTES directed attention to a letter from the Alaska State Home Building Association (ASHBA) [included in the committee packet]. She asked how HB 301 affects the ASHBA. REPRESENTATIVE FIELDS said there might be some confusion about HB 301, because as written, the bill changes nothing in terms of how any industry practices in Alaska today. He noted that [the ASHBA] has a separate bill that would change the standards for plumbing. He offered his belief that the ASHBA is objecting to HB 301 because they would prefer to go in a different statutory direction. He reiterated that the current bill changes nothing about the way in which the industry operates today. 3:41:27 PM CHAIR SPOHNHOLZ opened public testimony. 3:41:44 PM VICTOR BANASZAK, President, Alaska State Home Building Association, read the following prepared statement: The Alaska State Home Builders Association appreciates the opportunity to comment on HB 301, relating to certificates of fitness for plumbers and electricians. We also support apprenticeships. We support fewer statutory barriers for training skilled trades. We have long supported state funding for programs in workforce development. Getting good qualified workers and trades for our line of work is very difficult. Its become a national crisis. We are here to ask you not to make it more difficult. Residential construction contractors do not want and do not need to be included in AS 18.62 for certificates of fitness. We are already well covered, and dont wish to be included in legislation that tightens controls on apprenticeships and other possible avenues to skilled trades. We would propose that HB 301 be amended to remove residential construction from certificates of fitness. Residential construction is licensed separately under AS 08.18.025, and we also comply with municipal residential building codes, which include inspections. Mortgage financing requirements also typically include code compliance and energy efficiency standards. In other words, residential construction has plenty of government and regulatory oversight on construction standards that are outside the requirements for certificates of fitness. Conversely, state law exempts certificates of fitness for residential construction performed by owner- builders, and it even prescribes how owner-builders can list and sell new construction that includes self- installed plumbing and electrical. Anyone who says that certificates of fitness should be mandated for licensed, bonded, and insured home builders is welcome to explain why unlicensed contractors in the state are exempt and allowed to install their own plumbing and electrical. We feel that HB 301 strengthens federally registered apprenticeship programs, but it does not necessarily help housing. If enacted, HB 301 should remove residential construction from the certificates of fitness for plumbers and electricians. Thank you for your consideration. 3:44:32 PM REPRESENTATIVE HANNAN questioned whether under current state law, licensed and bonded commercial home builders are required to use certificated electricians and plumbers. MR. BANASZAK confirmed that they are required to use licensed and administrated electricians and plumbers. He explained that they risk getting inspected by the city or the state, during which the inspector can ask what entity is performing the plumbing and electrical. He added that if they are not using someone who is fully licensed and bonded, the inspector can shut down the project. REPRESENTATIVE HANNAN sought clarification as to whether the state requires Mr. Banaszak to use electricians and plumbers who have certificates of fitness, even if they are subcontracted. MR. BANASZAK confirmed that. 3:45:41 PM REPRESENTATIVE STUTES sought to clarify that the ASHBA is asking to use employees or subcontractors that do not have a certificate of fitness. She asked if they no longer wish to be held to that current requirement. MR. BANASZAK said their biggest issue is the severe workforce deficit, adding that its the number one bottleneck in the industry. He said that while they respect this body of governments desire to keep the highest standards for builders - he would hate to see avenues for high school students and new builders reduced. 3:46:47 PM CHAIR SPOHNHOLZ asked if Mr. Banaszak is suggesting that high school students should build residential housing in Alaska. MR. BANASZAK maintained that there are programs for them to begin learning about building and selling homes. He reiterated that he opposes regulating to the point where kids coming through those programs will not have avenues to continue on if they choose not to join a union. 3:47:33 PM REPRESENTATIVE STUTES asked if Mr. Banaszak is asking to be exempt from what he is currently required to do. MR. BANASZAK confirmed that. 3:48:16 PM BRAD AUSTIN, Training Coordinator, Plumbers & Pipefitters Local Union 262, expressed his support for HB 301. He offered his belief that when the plumbing trainee certificate of fitness is tied to an apprenticeship it guarantees that properly trained apprentices will become journeymen. He explained that the state requires a minimum of 8,000 hours; however, their program is five years long and requires at least 10,000 hours. He said that since 1999, they have turned out 45 apprentices that have become journeyman. To conclude, he reiterated his belief that its a great move tie the trainee certificate of fitness to an apprenticeship program. Its a very proven way to train and I think we turn out superior skilled tradesmen. 3:50:44 PM RYAN MCGOVERN, Plumbers & Pipefitters Local Union 375, offered his belief that relaxing these standards will ultimately jeopardize the quality of craftsmen and potentially, public safety. 3:52:15 PM PETER JURCZAK, Project Manager, Ketchikan Mechanical Inc., informed the committee that he was a state inspector with the Department of Labor & Workforce Development (DLWD) for 29 years and that he is strongly in favor of HB 301. He said when the state adopted requirements for the apprenticeship program to be part of the certificate of fitness requirements for trainees, the workmanship improved greatly. Furthermore, it brought continuity into the program. He added that the technology in these trades is changing rapidly. To keep up with the technology, he said, both the journeymen and apprentices should keep in mind that an apprenticeship program gives them a solid basis to continue on with their careers. He said he thinks that the state of Alaska should support and encourage that. He emphasized that the apprenticeship program leads to careers that allow these individuals to work anywhere in the country. He went on to say that its important to have trained workers on residential projects. He reiterated that he strongly supports HB 301, the apprenticeship requirements, and the accompanying regulations. 3:56:56 PM REPRESENTATIVE HANNAN noted the concern about having enough skilled tradespeople available. She asked Mr. Jurczak for his insight, as a previous state inspector, on how to ensure that there are skilled tradespeople available for both the commercial and the residential industries while still adhering to the statutory standards that Alaska has had. MR. JURCZAK offered his belief that schools are trying to steer students in that direction. He said more people are realizing that they can get paid while learning through an apprenticeship program, adding that its just a matter of educating students and encouraging them to try a trade class. 3:59:01 PM TOM FISHER, Owner, Aaron Plumping and Heating Company, said from a contractor's perspective, HB 301 is instrumental and essential in ensuring a properly trained workforce for the plumbing and electrical trades, which will minimize the probability of endangering public health and property, as well as themselves and others. Registered apprenticeship programs provide on-the- job training, mentoring, structured standards, and trade- specific improvement training programs aimed at making sure the participants are given the tools and resources to be the best tradespeople they can be. He said registered apprenticeship programs provide benefits to career seekers and employers, as well as social and economic benefits to the communities they serve. He said that, as a contractor, he pays benefits into a fund to support the apprenticeship program that he draws his labor pool from. The participants are committed to a five-year program with classroom time and a learning facility equipped with the latest technology in front of professional well-trained instructors and staff. To conclude, he reiterated his support for HB 301. 4:02:32 PM VINCE BELTRAMI, President, Alaska AFL-CIO, informed the committee that his prior job was the statewide training director at the NECA-IBEW apprenticeship program in 2003 when the regulations were modified to require all certificate of fitness holding trainees to be registered in a federally registered apprenticeship program. He said the number of trainees and apprentices grew quickly during that time. The new requirements did not stifle training opportunities for Alaskans opportunities increased significantly. Furthermore, it ensured more safety on the job for workers and safer buildings for occupants to inhabit. He noted that those standards have remained intact, regardless of the governor or commissioner, for 17 years. He stated that its been a tremendous success story; however, the recent efforts by the DLWD to derail those regulations threatens to undo that gold standard. He said he applauds the effort to codify the current regulations into law. He encouraged members to move HB 301 from committee. 4:06:13 PM CHAIR SPOHNHOLZ closed public testimony. REPRESENTATIVE FIELDS said its been made abundantly clear that this bill maintains the status quo, which is an apprenticeship system that works. He addressed the public comments from 375 Alaska construction workers and contractors that opposed watering down existing regulations. He further noted that HB 301 supports an ecosystem that flows from high schools to colleges and provides Alaskans with the opportunity to get good careers in the building trades. 4:07:46 PM REPRESENTATIVE STUTES moved to report CSHB 301, Version LS1506\E, Fisher, 3/6/20, out of committee with individual recommendations and the accompanying fiscal notes. Without objection, CSHB 301(L&C) was moved from the House Labor and Commerce Standing Committee.