SENATE BILL NO. 334 "An Act relating to guidelines and standards for state training programs; and relating to the Alaska Human Resource Investment Council." Co-chair Pearce explained the agenda for bill hearings. She advised that SB 334 was a Senate Finance sponsored bill being led by Senator Torgerson. It was noted that at the last hearing a work draft of CSSB 334(FIN) had been moved. Senator Adams objected and there was some discussion, at which time the objection was removed. The bill was not formally adopted. Therefore, Senator Torgerson MOVED the committee adopt CSSB 334(FIN), version "H", dated 3/24/98 and WITHOUT OBJECTION it was ADOPTED as the working version before the committee. Senator Torgerson provided the committee with an overview of the bill. He asked that after his explanation any amendments be discussed before the taking of public testimony. He felt this may put many at ease. He indicated he had approximately four amendments that he would like the committee to consider. He said he would follow the sectional analysis. The subcommittee was created last July by Co-chair Pearce to look into all of the training programs in the State to see if the responsibilities were being carried out under AHRIC (Alaska Human Resources Investment Council). He explained that the program expends in the State approximately $93.8 million and it is a relatively large program. There are thirty-four different training programs within the State. Through their research they found many programs did not come directly under AHRIC. He said they were creations of legislation that left the committees under individual departments and there was no entity looking at their performance. It was also found there were no standard performance measures for the programs or for administrative costs. This bill would attempt to correct this and put AHRIC in direct oversight to assess the programs. Senator Torgerson then briefly reviewed the sections for the committee. Senator Torgerson MOVED amendment #1. He requested that with this amendment the bill be held pending corrected fiscal notes. WITHOUT OBJECTION amendment #1 was ADOPTED. Senator Torgerson MOVED amendment #3. Senator Pearce OBJECTED and then REMOVED her OBJECTION. WITHOUT OBJECTION amendment #2 was ADOPTED. Senator Torgerson MOVED amendment #4 and WITHOUT OBJECTION it was ADOPTED. Senator Torgerson MOVED amendment #5 and WITHOUT OBJECTION it was ADOPTED. Senator Torgerson MOVED amendment #6. He explained that it was a re-write of amendment #2, which was not offered. WITHOUT OBJECTION amendment #6 was ADOPTED. Senator Torgerson MOVED amendment #7 and explained that it was a technical amendment on page 4, line 2, deleting "section" and inserting "sector". WITHOUT OBJECTION it was ADOPTED. Mike Andrews, Executive Director, Alaska Human Resource Investment Council testified via teleconference from Anchorage. He explained that the council was made up of Commissioners and members from the private sector. He felt that SB 334 was good legislation and has worked closely with committee members, subcommittee members and others regarding the relevancy of performance measures, the evaluation of job training programs and the return on public investment. Co-chair Pearce said she was reluctant to hold the bill pending corrected fiscal notes because the committee wants to get all bills out by 7 April 1998. Senator Torgerson and Dwight Perkins, Legislative Liaison, Office of the Commissioner, Department of Labor discussed possible department amendment on page 7, line 21 of the bill. Mr. Perkins said there was still some tracking being done. Mr. Andrews said he had no problem with the proposed Department of Labor amendment. Mr. Perkins further stated he was willing to work closely with Senator Torgerson in ironing out a few more possible amendments. He noted page 3, section 6 and said the council should be able to tap more from the private sector and not be limited. Page 6, section 9 regarding administrative costs would have to be further discussed with Senator Torgerson. He completed his brief summation regarding expenses and administrative burdens and training programs on page 7 and 8, section 10(f). He said he felt the fiscal note would be reduced. Senator Torgerson MOVED amendment #8 and explained how it would decrease the Department of Labor fiscal note. WITHOUT OBJECTION it was ADOPTED. Barbara Thompson, Director, Teaching and Learning Support, Department of Education was invited to join the committee. She noted her appreciation of amendment #4 and made a few suggestions to improve the bill. She explained administrative costs as compared to Federal grants. Mike McMullin, Personnel Manager, Division of Personnel, Department of Administration was invited to join the committee. He noted a handout distributed to committee members. He said the department felt the Alaska Professional Development Institute was fundamentally different from the kinds of programs AHRIC supervised and that they should not be included under section (f). They proposed that if not outright removed from the bill that the Institute be moved to section (g) so that AHRIC could still do the assessment and then re-list them in section (g). He said they were more akin to programs of any major employer, i.e., BP, ARCO, IBM and/or major banks. They provide in- house training for their own employees, they are totally funded by receipts generated by provided services and he noted that less than one-sixth of that came from outside the State. (Tape #102, Side A switched to Side B.) Mr. McMullin continued and said that there was some concern with amendment #2, noting that the three-quarters percent was problematic. The budget authorized the APDI was not what they actually receive in funds and for which the assessment would be available to make. They should look at the language that deals with actual money. He further said that the Commissioner of Administration should have a seat on AHRIC, whether voting or non-voting. He said he had passed on a number of technical amendments through the proper channel, however he noted that the committee had not received them. He explained them briefly. Page 2, line 24 should have picked up (a) and (c), a technical amendment. The (c) list people could appoint a substitute for themselves as opposed to a substitute for someone else. Page 3, line 6 was in reference to non-voting commissioners. He said it should delete "and two" and not add (c). Line 17 of the same page he suggested deletion of "appointed" and insertion of "listed" because these were not appointments but rather done by statute. Page 5, line 2 the word "building policies" should be clarified. He said he knew what "developing policies" was. Page 6, line 14 and line 29 with reference to adopting regulations, "under AS 44.62..." language should be added to make it consistent with line 23. Page 7, lines 21 - 24 was a potential "gotcha" by assuming a particular rating scale. With regards to amendment #4 adopted this morning the program was referred to as being in Department of Transportation and it should be corrected to be in Department of Education. Pam LaBolle, President, Alaska State Chamber of Commerce was invited to join the committee. She commended the effort to coordinate all programs, noting this would improve services and cut costs. There was a great need for job and employment training. She felt the executive committee format and the per diem for small business was an improvement. She applauded the results based government approach and said that with administrative cost caps job training dollars would reach where they were most needed. Senator Phillips asked the relationship to welfare reform and if any members had expressed concern to her regarding training programs for welfare recipients? He said that Providence, Arctic Slope and FEDEX had approached him regarding a lack of coordination between State agencies. Ms. LaBolle said she had not been approached. She said she would convey the Senator's suggestion that the State Chamber coordinate help for welfare reform recipients. Co-chair Pearce noted that Yvonne Chase was available via teleconference from Anchorage if there were any questions. Dave Reese, AHRIC member was invited to join the committee. He advised the committee that he had previously been on the committee through Aleyeska Pipeline and was now with BP and still represented an industry on the council. He was currently on the executive committee as well as the employment and placement committee. He has worked on legislation and legislative review of this matter. He explained main points and efficiencies, however felt it would be difficult to oversee performance measures. With reference to section (g) he highly supported language directing the private section. He suggested they might re- look at staff support to the council and said there needs to be enough working capability of staff support. Going back to the early vision of AHRIC he said they needed to focus on still "holding the feet to the fire". Senator Phillips again voiced concern with welfare reform and said the private sector wanted one-stop-shop service. Senator Torgerson said the University would like to come under assessment and said he was working closely with Wendy Redmond. Co-chair Pearce said she would HOLD the bill in committee but wanted action taken by next week if possible. Senator Torgerson advised that he would be ready by next Tuesday. Co-chair Pearce called SB 332.