HB 132-SCHOOL APPRENTICESHIP PROGS; TAX CREDITS  12:50:16 PM CHAIR COSTELLO announced the consideration of CS FOR HOUSE BILL NO. 132(FIN) "An Act relating to technical education and registered apprenticeships." [SCS CSHB 132(EDC) was before the committee.] 12:50:29 PM CHAIR COSTELLO moved to adopt Amendment 1, work order 32- LS0476\F.1. 32-LS0476\F.1 Klein 5/16/22 AMENDMENT 1 OFFERED IN THE SENATE BY SENATOR COSTELLO TO: SCS CSHB 132(EDC) Page 6, following line 22: Insert a new subsection to read: "(e) A contract under this section must allow an apprentice enrolled in an apprenticeship program under 29 U.S.C. 50 - 50c and the employer of the apprentice to compete for construction projects and may not require that the apprentice or employer be a signatory to a collective bargaining agreement." SENATOR REVAK objected for discussion purposes. 12:50:44 PM KATIE MCCALL, Staff, Senator Mia Costello, Alaska State Legislature, Juneau, Alaska, explained that Amendment 1 would insert a new subsection, the intent of which was to allow an apprentice enrolled in an apprenticeship program and their employer to compete for construction projects without being part of a collective bargaining agreement. 12:51:58 PM At ease 12:52:14 PM CHAIR COSTELLO reconvened the meeting and asked Representative Fields to comment on Amendment 1. 12:52:21 PM REPRESENTATIVE ZACK FIELDS, Alaska State Legislature, Juneau, Alaska, speaking as co-chair of the House Labor and Commerce Committee that sponsored HB 132, stated that he could answer questions about Amendment 1, but he would not speak in favor or against it because it touched on his private sector work with the Anchorage School District. 12:52:54 PM SENATOR REVAK asked where the bill goes next. CHAIR COSTELLO replied it goes to Senate Finance. REPRESENTATIVE FIELDS advised that the Senate Education Committee removed the tax credit, which may eliminate the need for the finance referral. SENATOR REVAK asked for a plain explanation of what the amendment would do. 12:53:34 PM REPRESENTATIVE FIELDS said his understanding was it would restrict school districts from using state money awarded through DEED for projects where a school board had put a student community workforce agreement in place. He explained that community workforce agreements were similar to project labor agreements. CHAIR COSTELLO said the intention of the amendment was to expand the scope of application to provide more opportunities. 12:54:11 PM At ease 12:58:11 PM CHAIR COSTELLO reconvened the meeting and advised that she would recess the committee to provide members time to review the amendment and bill, HB 132. HB 132-SCHOOL APPRENTICESHIP PROGS; TAX CREDITS  3:05:03 PM CHAIR COSTELLO returned attention to HB 132 and asked Alicia Maltby to provide her comments on the proposed Amendment 1. 3:05:37 PM ALICIA MALTBY, President and CEO, Associated Builders and Contractors (ABC) of Alaska, Anchorage, Alaska, shared the history of the association and relayed that unions recently received approval for community workforce agreements on all Anchorage School District construction projects. She reported that 75 percent of the Alaskan construction workforce is nonunion and said these workers would be ineligible to work on those projects under this agreement. She cited an example from just one contractor member who won and completed the following projects: • $12 million for Chester Valley school renovation • $15 million for Girdwood K-8 remodel • $8 million for Rabbit Creek Elementary renewal • $60 million Airport Heights school addition and • $11.7 million for Eagle River earthquake recovery projects. She pointed out that the contractor, the Alaskan employees, and the Alaskan apprentices that worked on these projects will no longer be eligible to work on Anchorage School District projects. MS. MALTBY stated support for Amendment 1 that says school districts must allow apprentices and their employers that are not in a bargaining unit to work on school projects. It means that state funding may not be used to discriminate against apprentices who choose not to join a union hall. She said the apprenticeship program should be fair and open to all and this amendment will allow for that. She urged the committee to pass Amendment 1. 3:08:40 PM CHAIR COSTELLO related her understanding that nothing in the amendment or bill would prohibit ABC from using a project labor agreement; it's just not a mandate. She asked if that was correct. MS. MALTBY answered yes; contractors may put a PLA on any of their projects, but most ABC member contractors are not doing so. CHAIR COSTELLO discerned there were no questions and asked Alicia Siira to comment on Amendment 1. 3:09:32 PM ALICIA SIIRA, Executive Director, Associated General Contractors (AGC) of Alaska, Anchorage, Alaska, advised that AGC is a trade association that represents both union and nonunion contractors. They support Amendment 1, and do not support a requirement to use a project labor agreements on publicly funded projects. AGC contractors are, however, free to use PLAs if they feel it would be a good tool for a particular project. She concluded her comments stating support for both the bill and amendment. CHAIR COSTELLO asked Representative Spohnholz to comment on Amendment 1 as co-chair of the House Labor and Commerce Standing Committee that sponsored HB 132. 3:11:05 PM REPRESENTATIVE IVY SPOHNHOLZ, Alaska State Legislative, Juneau, Alaska, speaking as co-chair of the House Labor and Commerce Committee that sponsored HB 132, said she appreciates the intent but believes the amendment would prevent local communities from exercising local control. The constitution supports local control and she and Representative Fields believe that local communities and jurisdictions should have the option of entering into project labor agreements just as contractors have that choice. She said PLAs ensure that the people who oversee apprentices are well-trained and will receive a living wage. She stressed that nothing in the legislation requires participation in a PLA, but it would ensure that local jurisdictions have the option of entering into a PLA. She concluded that she did not support Amendment 1, because it would undermine the intention of the bill. REPRESENTATIVE FIELDS, Alaska State Legislative, Juneau, Alaska, speaking as co-chair of the House Labor and Commerce Committee that sponsored HB 132, restated that he would not discuss the amendment because it touches on his private sector work. 3:12:43 PM CHAIR COSTELLO offered her understanding that projects that use local funds would fall under the student community workforce agreement. She said the amendment specifically addresses projects that use state funds and both the Associated Builders and Contractors (ABC) of Alaska and Associated General Contractors (AGC) of Alaska said they had the option of using a project labor agreement. She asked Representative Spohnholz if she wanted to clarify her remarks related to the funding source. 3:13:15 PM REPRESENTATIVE SPOHNHOLZ said she and her co-chair generally believe in local communities being able to make decisions at the local level; that state funding is meant to augment local funding for those projects; and that it is important to ensure that communities continue to have the option to advance projects using a PLA if they believe it is in their best interest to do so. She underscored the emphasis the state constitution places on local control to the maximum extent possible. CHAIR COSTELLO asked if she was aware of any problems associated with the construction projects for the elementary schools that Ms. Maltby mentioned that would have been addressed had there been a project labor agreement. REPRESENTATIVE SPOHNHOLZ replied she didn't have any comment on specific projects other than that she attended Rabbit Creek Elementary School and was pleased to see that work was done. 3:14:19 PM SENATOR STEVENS asked for examples of projects he might be aware of that would have problems under the proposed amendment. SENATOR GRAY-JACKSON cited her positive experience with project labor agreements and that the community had been well served by qualified and well paid workers on these projects. She would hate to see anything prevent the use of PLAs. CHAIR COSTELLO related her understanding that Amendment 1 would allow companies that don't require union membership to bid on projects. She referenced the list of projects Ms. Maltby mentioned that one contractor completed for the Anchorage School District and others. 3:16:06 PM At ease 3:17:50 PM CHAIR COSTELLO reconvened the meeting. [CHAIR COSTELLO held HB 132 in committee.]