HOUSE BILL NO. 2 "An Act relating to the vocational education account and appropriations from that account; and providing for an effective date." Senator Olson MOVED to ADOPT SCS HB 2(FIN), labeled 25- LS006\K, Mischel, 4/10/08, as the work draft before the Committee. Co-Chair Stedman OBJECTED for discussion purposes. DAVID GRAY, STAFF, SENATOR DONNY OLSON, explained that SCS HB 2(FIN) combines two bills, the original HB 2, which is Section 3 of the bill, and SB 124, which made distributions of funds for various vocational technical training programs throughout the state. SB 124 unanimously passed the Senate and had 15 co-sponsors. The SCS is an attempt to try to enact the essential parts of SB 124. Mr. Gray explained that Section 1 increases the percentage of the contribution to technical training education funds. Section 2 puts the allocations in affect for a 5-year time period. Page 2 of the bill lists the various allocations. The University of Alaska allocation has been increased. Mr. Gray noted an error in the Galena Project allocation. He said that it should be 4 percent, not 3 percent. He listed the allocations for the various categories in HB 2, as compared to what they used to be in SB 124. Missing from 124 is an allocation of 15.5 percent to the Alaska Works Partnership. 9:52:07 AM Mr. Gray addressed a new feature in subsections (e) and (f) - an expenditure and performance report to the department and to the legislature. Mr. Gray reported that Section 4 is a repeal of uncodified law. 9:53:06 AM Co-Chair Stedman MOVED to ADOPT a Conceptual Amendment: On page 2, line 7, change 3 percent to 4 percent. There being NO OBJECTION, it was so ordered. Co-Chair Stedman mentioned the zero fiscal note from the Department of Administration. 9:53:58 AM GUY BELL, ASSISTANT COMMISSIONER AND DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, said there would be a third fiscal note once the bill is adopted by the Committee. One from the University of Alaska, one from the Department of Education and Early Development, and one from the Department of Labor and Workforce Development. 9:55:26 AM REPRESENTATIVE MARK NEUMAN, Sponsor, explained that HB 2 started out as a proposal to create a vocational education account within the general fund. It was a way to allow private industry to help vocational education. It does require the Department of Education and Early Development and the Department of Labor and Workforce Development to target programs that need vocational education funds. He spoke in favor of the changes in the new SCS. 9:56:33 AM Senator Huggins asked about the UAA allocation of 45 percent on page 2 of the bill. He wondered which programs it funded. He Representative Neuman did not know. It was an amendment with the addition of SB 124. PAT PITNEY, VICE PRESIDENT, BUDGET AND PLANNING, UNIVERSITY OF ALASKA, addressed the distribution of the funding which goes to all campuses. Senator Huggins asked about MatSu's allotment. Ms. Pitney reported that it varies from year to year. The funds are primarily for workforce startup or equipment. She offered to provide more information. 9:59:57 AM Representative Neuman commented that there needs to be more money funded for vocational education. He spoke in favor of jobs for Alaskans. He strongly advocated for the passage of HB 2. Co-Chair Hoffman MOVED to REPORT SCS HB 2(FIN), as amended, out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. SCS HB 2(FIN) was REPORTED out of Committee with a "do pass" recommendation and with a previously published zero fiscal note by the Department of Administration, and with new forthcoming fiscal notes by the Department of Labor and Workforce Development, the Department of Education and Early Development, and the University. 10:02:31 AM