CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 105(L&C) "An Act relating to the state training and employment program; and providing for an effective date." CSSSHB 105 (L&C) was REPORTED out of Committee with a "do pass" recommendation and with two previously published fiscal impact notes from Department of Labor and Workforce Development. 10:56:38 AM Co-Chair Stedman introduced HB 105. RYNNIEVA MOSS, STAFF, REPRESENTATIVE COGHILL discussed the legislation. She reminded the committee about the task force appointed during the previous session including all of the players of the State Training and Employment Program (STEP). The task force includes private employers. The task force created a more accountable, fair, and user friendly STEP program. She commented that HB 105 is the result of the recommendations from the task force. The bill attempts to take politics out of the STEP program and empower the Alaska Workforce Investment Board to retain involvement in determining which entities receive grants. The bill puts in statute the requirement of Alaskan citizenship in order to receive training under the STEP program. She discussed the repeal process for the step grants. She explained the six month restrictions and requirements to qualify for the STEP program. 10:59:38 AM DAVID STONE, DEPUTY COMMISSIONER, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT informed that the STEP task force unanimously supported HB 105. He enthusiastically applauded the program. He suggested that the task force oversee the development of regulations while the workforce investment board approves those regulations. Currently the Workforce Investment Board oversees the grant applications. Co-Chair Stedman asked if the department supports the bill. Mr. Stone stated yes the department supports the bill. Co-Chair Stedman asked about program availability for non- residents. Ms. Moss detailed that a person must be present in Alaska for 92 days to qualify for the STEP program. 11:01:26 AM Senator Huggins asked about repeat training offered to non- residents. Ms. Moss responded that Section 6 addressed the requirement that participants in the program are Alaskan residents. One definition of Alaskan resident includes residing in the state for 30 days prior to voter registration. Because a citizen must contribute to the unemployment insurance program in Alaska, he or she must live in the state 92 days before qualifying for the STEP program. Co-Chair Stedman asked about Page 8, Line 1 and the overhead allowance of 20 percent. Ms. Moss answered that this portion of the legislation sets a limit to how much the department can employ for administrative purposes under the STEP program. No greater than 20 percent can be used for administrative purposes; the rest must be routed directly to grant programs. 11:02:59 AM DOUG WARD, ALASKA WORKFORCE INVESTMENT BOARD (testified via teleconference) in support of HB 105. He noted that the legislation provides statutory authority that both the Workforce Investment Board and the task force will need to provide effective oversight. The board is unanimous in support of the legislation. 11:05:25 AM DON ETHERIDGE, ALASKA WORKFORCE PARTNERSHIP testified in support of HB 105. He explained the value of the funds in providing extensive training in rural Alaska. Co-Chair Stedman noted two fiscal notes from the Department of Labor and Workforce Development (DOL) totaling $6,405,000 in STEP funds. There are no additional costs anticipated as a result of passing the legislation. The funding for the program is currently in the FY10 operating budget. Ms. Moss stressed that the existing STEP program does sunset July 1, 2010, however, there is much work ahead in adopting regulations to make the program more accountable, more user friendly, and to ensure that Alaskans receive training. Eventually Alaska will have a gas line must have a prepared work force. Co-Chair Hoffman MOVED to report CSHB 105 out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSSSHB 105 (L&C) was REPORTED out of Committee with a "do pass" recommendation and with two previously published fiscal impact notes from Department of Labor and Workforce Development.