HB 132-SCHOOL APPRENTICESHIP PROGS; TAX CREDITS  4:31:28 PM CO-CHAIR FIELDS announced that the next order of business would be 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." 4:31:44 PM JOHN HAKALA, State Director, Office of Apprenticeship, Employment and Training Administration, U.S. Department of Labor, offered a PowerPoint presentation [hard copy included in the committee packet], titled "Registered Apprenticeship in Alaska; Providing a Foundation for Career Success and Skilled Workers for Businesses," and began on slide 2, "Agenda," which read as follow [original punctuation provided]: • Apprenticeship 101 • Registered Apprenticeship in Alaska • Youth Apprenticeship Framework • Quality Pre-Apprenticeship Framework • Funding Announcement • Questions MR. HAKALA advanced to slide 3, "What is Registered Apprenticeship?" and explained that he went through an apprenticeship program and became a journeyman electrician as a result of his apprenticeship. The slide read as follows [original punctuation provided]: • Registered Apprenticeship is a national training system that combines paid learning on-the-job and related technical instruction in a skilled occupation. • The purpose of a Registered Apprenticeship program is to enable employers to develop and apply industry standards to training programs that can increase productivity and improve the quality of the workforce. MR. HAKALA paraphrased slide 4, "Federal Requirements," which read as follows [original punctuation provided]: • On-the-job training plan • Provisions for organized related instruction • Progressive wage schedule • Adequate and safe equipment and facilities for training • Established apprentice progress evaluation • Qualified training and supervision • EEO Pledge • Minimum Age = 16 years 4:35:58 PM MR. HAKALA proceeded to slide 5, "Office of Apprenticeship (OA)," and noted that he has worked in this office for almost 23 years. He paraphrased the slide, which read as follows [original punctuation provided]: • Established by the National Apprenticeship Act of 1937 (Fitzgerald Act) • The purpose of the Fitzgerald Act is to set forth labor standards to safeguard the welfare of apprentices & promote apprenticeship opportunity with industry • OA is a program office of the Employment & Training Administration of the U.S. Department of Labor MR. HAKALA advanced to slide 6, "OA Functions & Services," which read as follows [original punctuation provided]: • Registration agency • Promotion and expansion of apprenticeship • Assist potential sponsors in developing apprenticeship training standards • Coordinates services with employment and training programs • Conduct program reviews and quality assessments • Provide on-going technical assistance • Integration of apprenticeship with workforce system • State-Federal Apprenticeship Partnership MR. HAKALA presented slide 7, "Apprenticeship Framework," which read as follows [original punctuation provided]: • Structured on-the-job learning (OJL) • Supervision by qualified mentors • Combines related technical instruction (RTI) • "Earn while you learn" format • Adaptable and industry-driven • Time, hybrid, or competency-based approaches • Industry recognized certifications are portable 4:41:03 PM CO-CHAIR SPOHNHOLZ asked whether the "earn while you learn" format applies to all apprenticeships in Alaska. MR. HAKALA responded that every registered apprenticeship program must have a progressive wage schedule and are all "earn while you learn." He explained that fields such as midwifery or hairdressing include the term "apprentice" in employment contracts, however this is not connected to the registered apprentice programs managed by his office. He recalled his experience working with midwives in trying to help them develop an approved occupation to become registered nationally as apprentices, but his office didn't get to the point where the midwives could submit the occupation. He shared his understanding that the midwife occupation has quite a lot to consider moving forward. He concluded that the "earn while you learn" format is imperative and must include defined entry wages and a structure for wages to scale according to experience. CO-CHAIR SPOHNHOLZ shared her understanding that "registered" is the operative word as it relates to the "earn while you learn" format. She asked Mr. Hakala what the barriers would be to becoming registered in other fields, such as hairdressing. MR. HAKALA replied that he would love for every occupation to be "apprentice-able" in Alaska. If an industry is implementing an apprenticeship model, he said, it would have the apprenticeship framework in place, and the industry would work with his office. Many industries are already doing about 80 percent of what the apprenticeship model does, he said, such as incremental pay raises. He noted that it is a difficult question to answer because each industry is so different. 4:45:16 PM REPRESENTATIVE KAUFMAN asked for the definition of registered apprenticeship. MR. HAKALA replied that regulations are discussed on the final page of the presentation. The primary regulations from the Code of Federal Regulations that drive his office are 29 CFR Part 29 Subpart A and 29 CFR Part 30. He said that he will distribute those regulations to the committee. 4:46:34 PM CO-CHAIR FIELDS listed progressive wages, the mentor ratio, related technical instruction, and on-the-job training as some of the benchmark components to apprenticeship. He asked Mr. Hakala to share any other benchmark components for apprenticeship. MR. HAKALA directed attention back to slide 7 of his presentation, which detailed the apprenticeship framework. He emphasized the requirements for oversight of apprentices and noted that apprentices need a minimum of 144 hours per year of related technical instruction. He noted that there are 23 standards which must be met in order to be considered a registered apprenticeship program. CO-CHAIR FIELDS asked Mr. Hakala for an outline of the structure of the on-the-job learning framework and for more details on the standards of apprenticeship. MR. HAKALA responded that the core of the program is on-the-job learning, which is supplemented by related technical instruction. When the program was designed, he said, it was intended to supply all information "from A to Z" to an apprentice about a chosen profession. He explained that companies sometimes approach him but only intend to provide apprenticeship and training for a portion of the occupation, but such an arrangement wouldn't be considered for the registered apprenticeship program because it is the goal of the program for apprentices to learn every component. He said that O*NET Online [www.onetonline.org] is a good resource for seeing the tasks and detailed work activity of various occupations. 4:50:39 PM REPRESENTATIVE KAUFMAN directed attention to the faith-based organizations listed as apprenticeship partners on slide 8 [to be presented]. He asked what an apprenticeship at a faith-based organization would look like. MR. HAKALA responded that there were initiatives a few years ago by faith-based organizations that helped with recruitment. He said that large organizations often conduct outreach activities to get assistance in recruitment and will announce position openings to various organizations including faith-based organizations, which could include community or Alaska Native organizations. Such organizations can also become program sponsors for youth or adult occupations. 4:52:06 PM MR. HAKALA continued his presentation with slide 8, "Apprenticeship Partners," which read as follows [original punctuation provided]: • Businesses & Employer Associations • Labor Organizations • Educational Institutions • Workforce Intermediaries • Alaska Native Organizations • Community-based Organizations • Faith-based Organizations • Government Agencies • Workforce System • Apprenticeship Grantees MR. HAKALA proceeded to slide 9, "How is Apprenticeship Different from Other Work-based Learning Models?", which read as follows [original punctuation provided]: Apprenticeship training is distinguished from other types of workplace training by several factors: (1) Apprenticeships are jobs! Apprentices earn wages from their employers during training; (2) Apprenticeship programs provide on-the-job learning and job-related classroom training; (3) On-the-job learning is conducted in the work setting under the direction of a mentor(s); and (4) Training results in an industry-recognized and portable credential. 4:55:41 PM REPRESENTATIVE SNYDER asked Mr. Hakala whether he could provide a range of apprentice wages. MR. HAKALA replied that in the trades, apprentices may earn "quite a lot of money," beginning at 50 percent of the journey worker's scale, which in the private sector could be anywhere from $25 to $45 per hour. Health care occupations, he said, earn less as a whole and apprentices may start at $12 per hour, finishing at $18. He noted that earnings can generally be higher in rural Alaska, but still vary greatly. He said that he occasionally assists organizations in developing wage schedules, using resources such as the Research and Analysis website through the Department of Labor and Workforce Development, which details wages across Alaska. He recalled challenges in determining pay scale for apprentices in the early childhood development industry, with organizations wanting apprentice wages to be on par with those of employees with bachelor's degrees. He observed that an apprentice who completes the program always earns more than the individual would have otherwise and has additional opportunities for managerial progressions within the company. 4:58:45 PM CO-CHAIR SPOHNHOLZ asked Mr. Hakala to detail apprenticeships in early childhood education that take place in Alaska. MR. HAKALA responded that it's a two-year, early child development apprenticeship program with opportunity he described as "gigantic." He shared that he is confident that if he were to start having conversations with the early childhood development community in Alaska, an apprenticeship program could be achieved. Non-profits, however, depend more on "soft funds" than do labor management programs that are able to fund their own training centers; this is a limiting factor, he said, because program development becomes more difficult when funding comes from sources like grants. 5:01:00 PM CO-CHAIR FIELDS commented that construction jobs are "living wage" jobs, while the same is not true with regards to childcare. If a living wage is not offered, he said, it is difficult to support an apprenticeship program. 5:01:30 PM MR. HAKALA added that Alaska Primary Care was a result of an American Apprenticeship Initiative grant. He said that although the program did not easily come together in the beginning, the program is now "beautiful," with the addition of occupations such as pharmacy tech. He said that with regards to early childhood development, he was unable to convince the University of Alaska to work with him on a curriculum, so instead his office works with a university in Virginia that agreed to share the school's curriculum. MR. HAKALA continued his presentation on slide 10, "Benefits for Apprentices," which read as follows [original punctuation provided]: • Skill development • Earn and learn • Career pathway to higher skills and wages • Career advancement opportunities • Training under the guidance of qualified mentors • Nationally recognized credentials • College credits • Apprentices graduates earn up to $300 thousand dollars more during their careers than non- apprentice workers MR. HAKALA moved to slide 11, "Benefits for Businesses," which read as follows [original punctuation provided]: • Increase employee retention • Effective recruitment tool • Cost-efficient training model • Trained and educated workforce • Transfer of knowledge, skills and expertise • Improved quality of services & client care • Develops future leadership • Invest in your community • On average, employers realize an average return on investment of $1.47 5:05:24 PM MR. HAKALA continued to slide 12, "Benefits for Alaska - Social & Economic," which read as follows [original punctuation provided]: • Stabilize the Alaskan workforce • Learn and train locally • Employed apprentices purchase goods, services, vehicles, snowmobiles, 4-wheelers, boats, airplanes and homes. • Increase supply of highly skilled Alaskan workers • Reduce recruitment of out of state workers • Future business leaders • Aligns with and advances goals of key workforce system initiatives • Every $1 invested in apprenticeships leads to a public return of approximately $28 in benefits 5:06:18 PM CO-CHAIR FIELDS interjected to encourage members to look at the extensive trend articles released by the Research and Analysis Division of the Department of Labor and Workforce Development, which studied this issue in 2009 and again in 2019. 5:06:41 PM MR. HAKALA noted that registered apprenticeship wasn't written into the Workforce Investment Act of 1998 (WIA), and his office at the USDOL was figuring out how to integrate apprenticeships with the WIA. Registered apprenticeship was written into the Workforce Innovation and Opportunity Act of 2014 (WIOA), and Mr. Hakala said that, due to the components inherent to the design of the registered apprentice model, such as structured training, mentorship, pre- and post-employment earnings, the registered apprenticeship model fits well with WIOA. MR. HAKALA moved to slide 13, "Apprentices in Alaska," which read as follows [original punctuation provided]: • Registered apprenticeship is a proven workforce development strategy that supports local economies, builds worker skills, and establishes career pathways to higher levels of employment and wages. • Registered apprenticeships in the construction and building trades have been active in Alaska since the 1940's. • Registered apprenticeships in Alaska train union and non-union apprentices in 68 occupations, 16 occupation groups/industries, and in 21 borough/census areas. • Hundreds of millions of private dollars have been invested in apprentices and apprenticeship training centers across the state. 5:08:57 PM CO-CHAIR FIELDS asked Mr. Hakala about the annual cost, per apprentice, in a National Electrical Contractors-Association International Brotherhood of Electrical Workers (NECA-IBEW) apprenticeship. 5:09:16 PM MR. HAKALA replied that it varies. Labor management programs have a dedicated amount to invest in workforce training, such as paying $1 per hour into a training fund. He said that investing in workforce training is how the registered apprenticeship programs survive, and he explained that the soft-funded programs take a different viewpoint on sustainability. He said he tries to help those programs establish a fee structure and business model for a path to sustainability. 5:11:04 PM REPRESENTATIVE KAUFMAN asked Mr. Hakala whether committee members can view the various revenue streams that fund the registered apprenticeship program. He asked, "Is there veterans' money that goes into these programs as well, similar to other continuing education?" MR. HAKALA responded that programs typically use the State Training & Employment Program (STEP) for funding, in addition to funds from WIOA, with the funds generally distributed through the job centers. There are a variety of funding streams, he said, and there are active federal apprenticeship expansion grants in Alaska right now. He said that his office doesn't help fund the programs, he simply designs them and determines how to make the programs efficient and cost-effective. He noted that registered apprenticeship programs are also pre-approved for the Government Issue (GI) Bill, which could include all costs related to college such as tuition or the differential between the entry-level apprentice wage and the journey wage. 5:14:33 PM CO-CHAIR FIELDS announced that the committee would recess to the call of the chair. 6:37:31 PM CO-CHAIR FIELDS called the House Labor and Commerce meeting back to order at 6:37 p.m. Representatives Fields, Snyder, Schrage, and McCarty were present at the call back to order. Representatives Spohnholz and Nelson arrived as the meeting was in progress. 6:37:41 PM MR. HAKALA told committee members that he sent an email to Co- Chair Fields that included apprenticeship standards and occupation schedules for veterinary technicians, pipe and operation technicians, airframe and power plant mechanics, and a couple of medical occupations. Also included in the email were 10 examples of potential funding streams, which Representative Kaufman had asked about, and he said that apprenticeship starting wages range from $15 to $28 per hour across all occupations in Alaska, with exit wages up to $48 per hour. MS. HAKALA resumed his presentation with slide 14, "Apprenticeship in Alaska," which read as follows [original punctuation provided]: • Program Sponsors = 283 • Multi employer = 22 • Single employer = 261 • Total employers participating = 796 • 68 active apprenticeship occupations • 16 occupation groups/industries • Primarily in construction & extraction; installation, maintenance & repair, and healthcare categories • Total Active Apprentices = 1931 6:40:00 PM CO-CHAIR FIELDS interjected to verify whether both multi- employer and single employer sponsors could be union or non- union. MR. HAKALA replied that is correct, and he said that the majority are non-union. He noted that the apprenticeship program is tailored to the needs of each employer. 6:41:44 PM REPRESENTATIVE NELSON asked how long it takes for a registered apprentice to complete the program. MR. HAKALA replied that the apprenticeship program is described in either hours or years and allows some leeway. For instance, he said, a four-year construction program might take 5 years to complete; depending on the occupation, the program can take anywhere from one to five years. He noted that construction apprenticeships can take longer due to cycles in the industry, but that health care occupations operate year-round, so those apprentices are more able to stay on a timeline. REPRESENTATIVE NELSON asked whether the completion rate has increased from the 2014 level of 26 percent. MR. HAKALA responded that the completion rate is a complicated formula using, in part, the apprenticeship start date plus one year. He said there's a probationary period wherein an apprentice can cancel their participation, and those don't count against the program's metrics. He said that in FY 20 the program saw 99 completions, whereas a typical year would have 225 -275 completions each year in the system. Some occupations have a higher cancellation rate than others, he said, but the overall annual completion rate within the national apprenticeship system is 41 percent. REPRESENTATIVE NELSON expressed the understanding that 275 completions in 1,931 apprentices equates to a 7 percent completion rate, which, he said, is "a very small amount." He said that he would like to see more numbers. MR. HAKALA replied that he doesn't disagree. He said that there are cancelations in every training program, and it's preferred that if the apprentice leaves the program it's done within the first year. He noted that there is a statistics page with current data for each state on the website www.apprenticeship.gov. 6:47:01 PM CO-CHAIR SPOHNHOLZ noted that it's likely that some apprentices are in multi-year programs. MR. HAKALA said yes, programs such as electrician and pipefitting take 5 years, and each occupation has a different timeline for completion. CO-CHAIR SPOHNHOLZ commented that the earlier characterization of the program as having a 7 percent completion rate is inaccurate, since many of the 1,931 apprentices in Alaska are in multi-year programs. She noted that with the healthcare apprenticeships being much shorter, one would expect to see a higher completion rate in those occupations. 6:48:24 PM CO-CHAIR FIELDS interjected to comment that the primary care association has an "impressive" completion rate, but occupations in the traditional building trades have more participants, which is the reason for the efforts to expand the non-traditional building occupations. 6:48:37 PM REPRESENTATIVE NELSON said that his comments about the 7 percent completion rate came from a study of Alaska economic trends between 2004 and 2014, encompassing all industries in the state, which said that "only 26 actually completed their apprenticeships, while only 56 percent cancelled or dropped out." CO-CHAIR FIELDS asked whether shifting from one apprenticeship program to another would count as a cancellation. MR. HAKALA said that the 2014 trends study included "bad numbers" and that the study was never vetted with his office before it was published. He suggested a longitudinal study from 2009 for reference, which he described as "accurate." REPRESENTATIVE NELSON said that he would like to see the 2009 longitudinal study. MR. HAKALA said, "It was a 10-year study: the Alaska [Economic] Trends [February] 2009 Apprenticeships in Alaska." REPRESENTATIVE NELSON said that he referenced the 2014 study because the commissioner of the Department of Labor and Workforce Development, Heidi Drygas, had put her name on it. MR. HAKALA stressed that the 2014 publication was "not accurate at all," and he described being upset that he wasn't asked to review it. He then asked Co-Chair Fields to repeat his question. 6:51:19 PM CO-CHAIR FIELDS asked whether a transfer between apprenticeship programs constitutes a cancellation. MR. HAKALA responded that apprentices used to be tracked by an identification (ID) number, which would be attached to the individual through their entire apprenticeship experience. Now, he said, it's easier to cancel an apprentice leaving a program and re-register the individual using a new ID number. He expressed that he understands the reason for doing so, even though he has "issues" with it. Should an employer lay off an apprentice, he said, which is common in construction, the apprentice needs to find a new sponsor; if everyone communicates, transition could happen with the original apprentice ID number. However, he said, very few people call him when leaving a program, so they end up re-registered with a new apprentice ID number. 6:53:18 PM MR. HAKALA continued with slide 15, which displayed a chart showing the registered apprentices grouped by age. Of the 1,931 total apprentices, 822 are between 16 and 24 years old, with 2 16-year-olds, 3 17-year-olds, and 78 18-year-olds. He said, "For me, this legislation, this House Bill, is really important because what we're looking to do is create the environment for new program sponsors, for youth, to be registered." He said that the current stock of program sponsors are primarily programs who accept apprentices aged 18 and over, and if those younger than 18 are accepted, it's only one or two per year. He said that there is no true youth apprenticeship system in Alaska and that youths are not being recruited into the programs currently operating. He said, "They go out and maybe try college, maybe drop out - we were talking about completion rates, college has a pretty high dropout rate too, you know? - and so they kick soda cans for five or six years before maybe they cycle back to an apprenticeship program." He stressed that's the urgency of this proposed legislation. MR. HAKALA moved to slide 16, "High School Registered Apprenticeship," and noted that this area is very important. He said the career and technical education programs around the state, which have already been invested in and include high- quality training, could become program sponsors; however, like many nonprofits, programs need help making the connection with employers. Slide 16 read as follows [original punctuation provided]: • High School (HS) Registered Apprenticeship programs combine work-based, on-the-job learning with relevant technical education in the classroom. • Students who participate in these programs graduate with a high school diploma, may earn college credits, and national industry credentials. • They also start on a career path that continues after high school graduation whether that is a continuation of their registered apprenticeship along with college, college only, registered apprenticeship only, or other full-time employment. • HS Registered Apprenticeships benefit businesses as well by providing a fresh source of talent developed from within their community. MR. HAKALA presented slide 17, "High School Registered Apprenticeship," which included photos of apprentices working in different occupations, as well as a quote from Kayden Gilila, the first associate teacher apprentice in Akiak, Alaska. The quote on the slide read as follows [original punctuation provided]: "I want to become a high school math teacher and teach in my village. I want to give my community someone who will be there for the kids and actually care about their education. I plan on teaching in the community for a long time. I want to be fortunate enough to be remembered as the teacher who cared and made a difference." -Kayden Gilila, Senior 2021, Associate Teacher apprentice, Akiak School 6:58:47 PM CO-CHAIR FIELDS explained to committee members that the Lower Kuskokwim School District helped develop the associate teacher program, with the participants using the apprenticeship to get halfway to a bachelor's degree in elementary education. He said that other school districts, with proper support, could put similar programs in place. 6:59:14 PM MR. HAKALA paraphrased slide 18, "Youth Apprenticeship Considerations," which read as follows [original punctuation provided]: • Does the sponsor/employer hire apprentices who are 16 -18 years of age as well as older applicants? • Is it a program who's sole purpose is to serve youth? • High Schools • Youth organizations • Community or Faith-based organizations • Designing Youth Apprenticeships • Behavioral competencies • Flexibility to work/school schedule • Intermediary responsibilities post-graduation (e.g., high schools) • CTE credits for OJL and RTI • Employer requirements MR. HAKALA proceeded to slide 19, "Quality Pre-Apprenticeship," which read as follows [original punctuation provided]: • Quality pre-apprenticeship programs contribute to the development of a diverse and skilled workforce by preparing participants to meet the basic qualifications for entry into one or more Registered Apprenticeship programs. • Through a variety of unique designs and approaches, pre-apprenticeship programs can be adapted to meet the needs of differing populations being trained, the various employers and sponsors they serve, and specific opportunities within the local labor market. MR. HAKALA presented slide 20, "Quality Pre-Apprenticeship," which read as follows [original punctuation provided]: • Pre-apprenticeship services and programs are designed to prepare individuals to enter and succeed in Registered Apprenticeship (RA) programs. • These programs have a documented partnership with at least one Registered Apprenticeship program sponsor and together, they expand the participant's career pathway opportunities with industry-based training coupled with classroom instruction MR. HAKALA advanced to slide 21, "Quality Pre-Apprenticeship," which read as follows [original punctuation provided]: • Benefits for Participants: • Career exploration • Qualify to meet minimum standards for selection into RA programs • Benefit from classroom and technology-based training • Get started on career-specific training and career opportunities • Develop literacy, math, and work readiness skills • Advance into a Registered Apprenticeship Program MR. HAKALA opined that career exploration should begin in middle school, and noted that child labor laws allow youth, with parental approval, to work beginning at age 14. He then proceeded to slide 22, "Alaska Quality Pre-Apprenticeship Framework," which read as follows [original punctuation provided]: • Minimum Qualifications • Recruitment Strategy • Hands-on Training and Integrated Curriculum • Industry Certifications • Supportive Services • Registered Apprenticeship Placement • Partnerships and Collaborations • Recognized by DOL&WD Division of Employment & Training Services MR. HAKALA discussed the importance of a structured pre- apprenticeship framework and expressed that the USDOL has been working to develop the apprenticeship in Alaska. He then progressed to slide 23, "Resources," displaying links to various resources, which read as follows [original punctuation provided]: DOL Apprenticeship Website: www.apprenticeship.gov Youth Apprenticeship: www.apprenticeship.gov/education/high-school-and- middle-school Resource Hub: www.apprenticeship.gov/resource-hub Investments: www.apprenticeship.gov/investments-tax- credits-and-tuition-support Alaska Department of Labor & Workforce Development: www.jobs.state.ak.us/apprentice/index.html John P. Hakala, Alaska State Director, hakala.john@dol.gov 7:07:49 PM MR. HAKALA concluded his presentation with slide 24, "Funding Announcement," and commented that each administration approaches apprenticeship programs differently. Slide 24 read as follows [original punctuation provided]: Funding Opportunity Number: FOA-ETA-21-07; $87.5  million    Posted Date: March 17, 2021 | Closing Date for  Applications: April 26, 2021  The purpose of the State Apprenticeship Expansion and Innovation (SAEI) grant program is to support the development of new, or the expansion of existing, Registered Apprenticeship Programs (RAPs), as described in 29 CFR Part 29 (Subpart A) and 29 CFR Part 30. This also includes quality pre-apprenticeship programs that directly lead to grant funded RAPs during the grant period of performance. The SAEI grants will support states to achieve the following goals: 1) Apprenticeship system expansion to support the development, modernization, and diversification of RAPs; 2) Partnership and alignment to support a One Workforce System vision; 3) Increasing the number of apprentices enrolled in RAPs; and 4) Innovation in apprenticeship expansion efforts to include program development and recruitment strategies. 7:09:11 PM CO-CHAIR FIELDS, directing his comments to Ms. Riddle, said that he's of the understanding that there's not enough school district staff to work on establishing partnerships with employers for new apprenticeship and dual credit programs. He said that he would like to see DOLWD and EED pursue those funding opportunities in partnership with the school districts. 7:10:10 PM CO-CHAIR SPOHNHOLZ asked whether the $87.5 million is for the entire country, or if there are multiple grants for that amount. MR. HAKALA said that it's the funding for the entire country, but the minimum award would be $2 million, which would be enough to fund the initiatives as described by Co-Chair Fields. He said that "very few" states have the job training and workforce initiatives as does Alaska. 7:11:18 PM REPRESENTATIVE MCCARTY commented on empowering the workforce. 7:12:12 PM MR. HAKALA mentioned that the University of Alaska utilized funds from the Alaska Technical Vocational Education Program (TVEP) to pay for an apprenticeship coordinator, and University of Alaska Anchorage used those funds to develop the curriculum for the aircraft maintenance technician program, which was based on the premise of making the program available for registered apprentices. He said that HB 132 would help in that development. 7:12:58 PM REPRESENTATIVE NELSON asked Mr. Hakala to confirm that the state has not received the $87.5 million grant described on slide 24. MR. HAKALA confirmed Representative Nelson's understanding and he said that the funding was announced five days earlier. REPRESENTATIVE NELSON expressed concern for funding the apprenticeship programs, even with the grant money. 7:14:13 PM CO-CHAIR FIELDS suggested moving on the proposed legislation and subsequently parsing the question of funding. 7:14:29 PM REPRESENTATIVE SCHRAGE moved to adopt the committee substitute (CS) for HB 132, Version 32-LS0476\G, Klein, 3/19/21, as the working document. 7:14:44 PM REPRESENTATIVE NELSON objected for purposes of discussion. 7:14:49 PM CO-CHAIR FIELDS explained that the CS removed HB 108, which will be considered separately. Also in the CS, he said, were some technical changes recommended by Mr. Hakala, as well as language ensuring that the proposed tax credit would work for nonprofits. 7:15:35 PM The committee took a brief at-ease. 7:15:38 PM A roll call vote was taken. Representatives Snyder, Spohnholz, Fields, Schrage, and McCarty voted in favor of adopting the CS for HB 132, Version 32-LS0476\G, as the working document. Representative Nelson voted against it. Therefore, by a vote of 5-1, the CS for HB 132 ("Version G") was before the House Labor and Commerce Standing Committee as the working document. 7:17:13 PM REPRESENTATIVE SCHRAGE moved to adopt Amendment 1, labeled 32- LS0476\G.1, Klein, 3/22/21, which read as follows: Page 5, line 27: Delete "$1,000" Insert "(1) $1,000 for an apprentice who is not a veteran; (2) $1,500 for an apprentice who is a veteran" Page 6, following line 4: Insert a new subsection to read: "(f) In this section, "veteran" means an individual who was honorably discharged from service in the (1) armed forces of the United States, including a reserve unit of the armed forces of the United States; or (2) Alaska Territorial Guard, the Alaska Army National Guard, the Alaska Air National Guard, or the Alaska Naval Militia." 7:17:11 PM CO-CHAIR FIELDS objected for purposes of discussion. 7:17:14 PM REPRESENTATIVE SCHRAGE explained that Amendment 1 would increase the tax credit to $1,500 for veterans and provides for a definition of "veteran." 7:17:41 PM REPRESENTATIVE NELSON noted that veterans already have parts of training paid for, and sections of the Government Issue (GI) Bill fund training also. He asked whether the incentive is really needed. 7:18:05 PM REPRESENTATIVE SCHRAGE explained that tax credit is for the employers, not the apprentice, and that it would incentivize businesses to hire veterans. 7:18:28 PM CO-CHAIR SPOHNHOLZ expressed her support of Amendment 1 and noted Alaska's longstanding support of veterans. 7:19:09 PM REPRESENTATIVE MCCARTY voiced his approval of Amendment 1 but asked whether there are already tax credit incentives. CO-CHAIR FIELDS answered that Alaska does not currently have an apprenticeship tax credit. He said that Amendment 1 mirrors some policy in place in Montana. He also clarified that the amendment would be incentivizing the employer to hire veterans. REPRESENTATIVE MCCARTY asked, "If there's already money that's going to employers for the payroll of veterans, that's kind of like a credit in itself." He mentioned "other Alaskans that don't have such a privilege" and asked whether there exists an "overappreciation" of veterans which serves to focus on job creation for veterans as opposed to the non-veteran population. 7:20:47 PM REPRESENTATIVE NELSON commented that there already exist federal regulations that limit training to "75 or 85 percent of a class has to be limited to just veterans." He expressed that there could be apprenticeship classes full of veterans. 7:21:43 PM REPRESENTATIVE SNYDER noted for the record that she is the co- sponsor of the amendment. She commented on the need to ensure that veterans, being overrepresented in terms of being eligible for other benefits, are not having their needs "over-addressed" compared to other groups. She said that in previous hearings the committee has heard testimony about the importance of gainful employment for veterans. She described a family member's struggle with PTSD upon return from deployment and said that she wished a program such as this was available at the time. She said, "Everything that we can do to add to making sure we have a smooth experience for our veterans coming back, I think we should take that opportunity." 7:23:16 PM CO-CHAIR FIELDS withdrew his objection. 7:23:26 PM REPRESENTATIVE NELSON objected. 7:23:33 PM REPRESENTATIVE SCHRAGE expressed approval of Representative Snyder's comments and said that there is a "substantial, demonstrated" need for opportunities for veterans. He stated that Alaska has a large military presence as well as a shortage of skilled workers. He said that with the future funding, including the federal infrastructure package, this "could not come at a better time." 7:24:19 PM REPRESENTATIVE NELSON explained that he supports the concept of Amendment 1 and noted that he is the only actively serving military member on the committee. He stated his belief that the proposed legislation focuses too narrowly on apprenticeships and should also include internship, externships, and on-the-job training. 7:24:56 PM A roll call vote was taken. Representatives McCarty, Schrage, Snyder, Spohnholz, Nelson, and Fields voted in favor of adopting Amendment 1. No one voted against it. Therefore, Amendment 1 was adopted by a vote of 6-0. 7:25:47 PM CO-CHAIR FIELDS opened public testimony on CSHB 132(L&C). After ascertaining that there was no one who wished to testify, he closed public testimony. 7:26:04 PM REPRESENTATIVE SCHRAGE moved to report CSHB 132(L&C), Version 32-LS0476\G, Klein, 3/19/21, as amended, out of committee with individual recommendations and the accompanying fiscal notes. 7:26:20 PM REPRESENTATIVE NELSON objected. 7:26:26 PM REPRESENTATIVE NELSON said that he supports the concept of the proposed legislation but believes there has not been enough time in committee for it to be properly vetted. He characterized HB 132 as a "very in-depth, comprehensive bill" and stated that he does not believe in a "one-prong approach" to adequately meet the needs of the state's students and workforce. He stated his desire to see a broader array of educational options and expressed concern with the tax credit being applicable only to the business who hire apprentices. 7:27:43 PM CO-CHAIR FIELDS commented that the committee would be considering HB 108, which would take a broader approach in dealing with workforce development programs for youth. 7:27:58 PM REPRESENTATIVE MCCARTY opined that this is "a great discussion" with no easy solution. He said that considering both HB 132 and HB 108 would strengthen youth workforce training. 7:28:41 PM A roll call vote was taken. Representatives McCarty, Snyder, Fields, Spohnholz, and Schrage voted in favor of the motion to report CSHB 132, Version 32-LS0476\G, Klein, 3/19/21, as amended, out of committee with individual recommendations and the accompanying fiscal notes. Representative Nelson voted against it. Therefore, CSHB 132(L&C), was amended, was reported out of the House Labor and Commerce Standing Committee by a vote of 5-1.