HB 132-SCHOOL APPRENTICESHIP PROGS; TAX CREDITS  1:50:21 PM CHAIR COSTELLO announced the consideration of CS FOR HOUSE BILL NO. 132(FIN) "An Act relating to technical education and registered apprenticeships." She noted that this was a House Labor and Commerce committee bill. She asked the co-chairs of that committee to provide the introduction. 1:51:48 PM REPRESENTATIVE IVY SPOHNHOLZ, Alaska State Legislature, Juneau, Alaska, Co-Chair House Labor and Commerce Committee, thanked the chair for hearing HB 132 that is also known as the Alaska Apprenticeship Expansion Act. The bill strengthens collaboration between the Department of Labor and Workforce Development (DOLWD) and the Department of Education and Early Development (DEED), which is intended to ensure maximum opportunities for Alaskans in secondary school and college to receive dual credit learning. The bill positions Alaska to be able to expand access to the apprenticeship model of learning. In particular, this "learn while you earn" model is being used more frequently in the health care industry. She deferred to her co-chair to provide a more in-depth review of the bill. 1:53:13 PM REPRESENTATIVE ZACK FIELDS, Alaska State Legislature, Juneau, Alaska, Co-Chair House Labor and Commerce Committee introduced HB 132 with the PowerPoint: Apprenticeship and CTE Expansion Act. REPRESENTATIVE FIELDS reviewed slide 2: • Alaska has high-performing apprenticeship programs in traditional trades, and recent innovation with apprenticeship in new industries • School districts want to expand CTE and school- to-apprenticeship but need support to meet demand • Other states and nations have shown potential to expand apprenticeship & CTE • Expansion of apprenticeship and CTE helps people pull themselves up by their bootstraps without student debt • Good state policy positions us to capture and capitalize on federal apprenticeship grants • Youth participation in work-based learning helps young people enter good careers and contributes to meeting education policy objectives 1:54:49 PM REPRESENTATIVE FIELDS discussed what the bill does, the first of which is to provide statutory support for the departments of labor and education to coordinate. He reviewed slide 3: • Directs DOLWD and DEED to collaborate in provision of technical and financial support for: • School to apprenticeship programs • Science, Math, and Engineering CTE programs • Lowers the age at which youth can participate in workplace learning He noted that language about lowering the age for youth participation came from Representative McCarty's HB 108, and he would talk about this strengthening measure later in the presentation. REPRESENTATIVE FIELDS discussed the provisions on slide 4 for High School and College Credit for CTE and Apprenticeship: • Directs University to explore ways to expand dual credit for CTE courses and college credit for participants in apprenticeship • Directs school districts to offer and support concurrent vocational education, training, and on-the-job trade experience programs He highlighted that the Primary Care Association has apprenticeship programs where students can earn college credit, which opens a college path for people who cannot afford to attend full time. He also noted that language from HB 108 was incorporated that supports school districts that offer concurrent vocational education and on-the-job training programs. 1:56:43 PM REPRESENTATIVE FIELDS displayed slide 5 that shows the logos of some of the organizations that support HB 132. He noted the wide range of sectors that are represented. REPRESENTATIVE FIELDS reported that the Senate Education Committee removed the tax credit for apprenticeship programs that was in the original bill, which brought the cost of the bill to zero. REPRESENTATIVE FIELDS summarized that HB 132: incentivizes employer participation, encourages cross-departmental collaboration, supports school districts, and expands dual credit and post-secondary pathways CHAIR COSTELLO commented on the benefits and her support of CTE and the concept in the bill. She asked if other states have this program and where the idea for the legislation come from. REPRESENTATIVE FIELDS replied part of the idea for the legislation stemmed from conversations with Representative McCarty about supporting CTE and apprenticeships when he was serving on the Mental Health Trust Authority Board. He also credited CTE coordinators at the school district level and the Alaska Primary Care Association for some of the concepts in the bill. Furthermore, the bill is informed by research in support of apprenticeships and CTE from Switzerland, Germany, and South Carolina. CHAIR COSTELLO asked Representative McCarty to explain his participation in the bill. 2:00:19 PM REPRESENTATIVE KEN MCCARTY, Alaska State Legislature, Juneau, Alaska, confirmed that he and Representative Fields discussed some of the concepts in HB 132 many years ago. Ideas also came from sixth grade students who were already thinking about good jobs in their future. He noted that his support for these students was represented by the Bill Bear sign he was holding, and that it would be returned once the bill was signed into law. He pointed out that the concepts in the bill were already partially realized. For example, there is concurrent enrollment in college but not in high school. Certification credit needs to be recognized by the industry, not just a piece of paper from a high school. People in the community are industry masters and the bill allows those individuals to receive M certification so they can go into schools or schools can send students to the facilities that are in the community. This eliminates the need for the state to purchase appropriate training equipment for each school. REPRESENTATIVE MCCARTY stated that other provisions in the bill allow a 14-year-old student to start the training process with book learning and proceed to hands-on training at age 16. The bill also adds an hour to the number of hours a student can work and it extends OSHA guidelines to relatives working in a family business. The bill is about eliminating barriers to CTE training so people can get to work and stay over the long term. 2:05:34 PM CHAIR COSTELLO turned to invited testimony on HB 132. 2:05:50 PM ANNE VELARDI, Statewide Apprenticeship Coordinator, Department of Labor and Workforce Development (DOLWD), Anchorage, Alaska, stated she had no prepared comments but was available to answer questions. CHAIR COSTELLO asked if she was currently working with programs like this and how this would change if HB 132 were to become law. 2:06:20 PM MS. VELARDI stated that her team was currently working on school to apprenticeship and pre-apprenticeship programs with private employers and school districts, as well Alaska Works Partnership. They have reached out to various school districts to ascertain interest in these programs. She opined that an important component is for school districts to find employers who are interested in working with students in the district. 2:07:35 PM CHAIR COSTELLO asked where parents and students can find information about existing programs. MS. VERLARDI offered her belief that they only exist in the Fairbanks North Star Borough School District. 2:08:02 PM JARED KOSIN, President and CEO, Alaska State Hospital and Nursing Home Association (ASHNHA), Anchorage, Alaska, stated that the shortage of workers in the health care field is a long- standing problem that came to a head with burnout associated with the COVID-19 pandemic. The expectation is that this will be an issue for years. National statistics show that 18 percent of the national workforce have quit their jobs since 2020. Reliance on temporary health care staff has grown 33 percent since 2019, and Alaska is experiencing these same shortages. Over 6,300 health care openings must be filled each year to keep up with demand and worker exits. Adding to the problem, the health care industry in Alaska is projected to need to add more than 5,000 new health care jobs in the next 10 years. This is more than any other sector in the state. MR. KOSIN posited that growing our own workforce is the only way to meet this challenge. Efforts to create and expand career and technical education programs, including pre-apprenticeship and school apprenticeship programs, is what is needed to prepare Alaskans for professions in the health care field. Exposing younger Alaskans to the real opportunity in health care is vital and HB 132 will help advance that effort. 2:10:08 PM MISSY FRAZE, Director, Career and Technical Education, Anchorage School District, Anchorage, Alaska, stated that career and technical education is vital to the economic prosperity of the state. She expressed appreciation that HB 132 supports innovation and access to quality CTE programs. It establishes a framework for school districts to develop pathways for students to enter high skilled jobs. 2:11:55 PM CHAIR COSTELLO asked her to comment on the change in age and the effective date and whether school districts would provide opportunities for students over 14 years of age to participate concurrently in vocational education, training, and on-the-job trade experience programs. MS. FRAZE replied that her school district already has CTE opportunities for students beginning in middle school for job shadowing and guest speaking. The high school programs have internships for students on a career path and those are turning into jobs. These opportunities connect students to the community. She offered her belief that the age change didn't have a negative effect. Students in fifth grade are already deciding what they don't want to do in life so lowering the age requirement could be seen as a benefit for students. 2:13:35 PM CHAIR COSTELLO opened public testimony on HB 132; finding none, she closed public testimony. 2:13:52 PM CHAIR COSTELLO held HB 132 in committee awaiting an amendment.