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 Sharp noted this bill had been before the committee the week before. Senator Torgerson had prepared several amendments to offer. He assured the other members that most were technical changes. He shared that the program director had initially submitted many times the amount of amendments seen here and the senator had been able to whittle the number down. Senator Torgerson moved for adoption of the CS Workdraft version "K". Senator Adams objected to ask a question. He wanted to know how many of the amendments before the committee were included in the revised bill. Senator Torgerson replied that it included Amendments 1-7 that the committee had adopted during the other meeting. Senator Adams removed his objection. Without objections, Version "K" was adopted. Senator Torgerson moved for adoption of Amendment #8. It was pointed out there already existed another Amendment #8. Senator Torgerson's amendment was renumbered to be Amendment Senator Torgerson spoke to the amendment saying, it had been requested by Mike Andrews, the program director. It would identify ways for operating agencies to share resources and structures and curriculum through the collaboration of other public and private entities to increase opportunities and reduce costs. He detailed the specific changes, siting page and line items and which words would be deleted and inserted. Amendment #8A was adopted without objection. Senator Torgerson moved for adoption of Amendment #9 and spoke to the amendment. He told the committee it was also brought to him by Mr. Andrews and would define the term "program". Basically, their intention was to limit the activities of the Human Investment Resources Council to programs that are directly underneath its control, according to the senator. In many cases, the institutions did a lot more than just training programs and the sponsor didn't want them to come under the administrative cap and other provisions. Therefore, this amendment would define a program to include certificates for associate degree courses related to the employment offered by the institutions or contracted by the private sector. Senator Parnell tried to figure out how it fit into the referenced page 7, line 8. There was discussion as to the proper placement of the language. Senator Torgerson amended his amendment to ask the drafter to insert the conceptual language in the proper order in the bill. The intention of the amendment was to define the programs outlined in the section, according to Senator Torgerson. Co-Chair Sharp instructed the secretary and the bill drafter to work with Senator Torgerson to ensure his amendment was incorporated into the legislation. Without objection, Amendment #9 was adopted. Senator Torgerson moved for adoption of Amendment #10, saying they were all technical changes. He detailed the specific changes, and described each. There was no objection or further discussion and the amendment was adopted. Senator Torgerson moved for adoption of Amendment #11. He spoke to the changes it made, moving the Employment Services Division, Department of Labor language from Section F to Section G. Instead of coming under the direct responsibility of the AHRIC committee, the AHRIC committee would include assessor programs in their annual report, he explained. He stressed that this program was more broad- based that just job placement and training programs. The last part of the amendment inserted a new Section H, which read, "The University of Alaska shall evaluate the performance of its training program using the standards of E of this section and shall provide a report on the results to the council for inclusion in the council's annual report to the Legislature." That was language given to him by the university, who really like the efforts being made with this bill and wanted to be included, he attested. Without objection, Amendment #11 was adopted. Senator Torgerson spoke to Amendment #12 telling the committee it was an all-encompassing language that said if there were any new programs enacted by the federal government, AHRIC was to review each of those programs and make recommendations to the governor and the Legislature. He then moved for adoption of Amendment #12. There was no objection and it was adopted. Senator Torgerson moved for adoption of Amendment #13. He explained it would just delete a duplicated section in the bill. Without objection or discussion, Amendment #13 was adopted. Senator Torgerson moved for adoption of Amendment #14. In speaking to the amendment, he said the Office of Management and Budget came to him with an amendment that basically deleted the three-quarters language that was in the bill for the assessment of AHRIC. There was some concern the bill would create a different mechanism than what was currently in statutes. After double-checking with the drafter, the amendment would take out the assessment of one-half of one percent on the program that AHRIC was to just assess and review. It was determined the extra was not needed and the fiscal note was reduced by about half, according to Senator Torgerson. He detailed the new language. Amendment #14 was adopted without objection. Senator Torgerson moved for adoption of Amendment #15 and told the committee of another bill currently in the finance committee. SB 245 would extend the date of the State Training and Employment Program from 1998 to 2002. The language matched the amendment and would essentially roll that bill into this one. Senator Parnell asked if there was a Legislative Budget and Audit report on the STEP program. When told there was none, he commented that the committee usually relied on those audits when determining extensions. Senator Torgerson gave a background on the program sharing that when it was last before the Legislature, because the program had been spending well over 40 percent on administrative costs, they capped the administrative costs of the program at 20 percent and added the two-year sunset. The sunset was so the program would come back before the Legislature so they could see if the 20 percent cap was being observed. As this bill was written, the cap would drop down to 15 percent, he pointed out. Although there was not a report done by LB&A, he assured the committee he had looked at their accounting extensively. Senator Adams expressed a desire that SB 245 go to the Senate Rules Committee for review. Senator Torgerson hinted that this would ensure that the sunset bill would begin to move through the process, if attached to the training bill. Without objection, Amendment #15 was adopted. Co-Chair Sharp noted several individuals signed up to answer questions. He announced that unless he heard objections from any of them, he would assume concurrence with the actions taken by the committee today. DWIGHT PERKINS, Special Assistant with the Department of Labor wished to comment. He expressed concerns similar to Senator Adam's regarding SB 245. He noted if the sunset provision were not adopted the training employment program would halt. He said there was a companion bill in the House, which may be adequate. Senator Torgerson offered to rescind action on Amendment #15 if that would help. Senator Adams suggested passing both bills from committee. Co-Chair Sharp agreed, saying they could take action on SB 245 later if necessary. Co-Chair Sharp assigned Senator Torgerson to work with the co-chairs on amending the fiscal notes because of the many changes made to the bill. He ordered the bill held in committee until new fiscal notes were prepared. Co-Chair Sharp announced upcoming subcommittee meetings to hear public testimony on SJR 42, Constitutional Amendment RE: Same Sex Marriage. He announced a full committee meeting scheduled for 9:00am the next morning.