Legislature(2017 - 2018)ADAMS ROOM 519

04/11/2018 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 221 WORKFORCE & ED RELATED STATISTICS PROGRAM TELECONFERENCED
Moved HB 221 Out of Committee
+= HB 255 PLUMBING/ELECTRIC CERTIFICATE OF FITNESS TELECONFERENCED
<Bill Hearing Canceled>
-- Public Testimony --
+ HB 304 MICROLOAN REVOLVING FUND & LOANS TELECONFERENCED
Moved CSHB 304(FIN) Out of Committee
-- Public Testimony --
+ HB 384 REGULATORY COMM OF AK; BROADBAND INTERNET TELECONFERENCED
Scheduled but Not Heard
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 221                                                                                                            
                                                                                                                                
     "An  Act   relating  to  the   duties  of   the  Alaska                                                                    
     Commission  on Postsecondary  Education; relating  to a                                                                    
     statewide  workforce  and education-related  statistics                                                                    
     program;  relating  to   information  obtained  by  the                                                                    
     Department  of  Labor  and Workforce  Development;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
9:08:05 AM                                                                                                                    
                                                                                                                                
Co-Chair Foster  indicated that the  bill had been  heard on                                                                    
April 2, 2018 and public testimony has been closed.                                                                             
                                                                                                                                
9:08:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HARRIET   DRUMMOND,   SPONSOR,   introduced                                                                    
herself. She  reported that failure  to pass the  bill would                                                                    
result   in  a   great  deal   of  wasted   work  and   lost                                                                    
opportunities for  the state. She  elaborated that  the bill                                                                    
clarifed  the   authority  of   the  Alaska   Commission  on                                                                    
Postsecondary Education  (ACPE) to  receive and  analyze de-                                                                    
identified  existing  data.  She  stated  that  the  current                                                                    
Memorandum  of  Understanding  (MOU)  would  likely  not  be                                                                    
renewed and  expired the current fiscal  year. The potential                                                                    
loss   of  data   would  result   in   the  destruction   of                                                                    
approximately 10 years of data  and difficulty in attracting                                                                    
additional funding.  She reported  that about  $800 thousand                                                                    
to  $1  million,  representing roughly  25  percent  of  the                                                                    
federal grant,  was invested in developing  file preparation                                                                    
necessary to  load the data.  A data base without  use would                                                                    
need funding to be  reestablished. Cross sector analysis for                                                                    
outcomes reports  would be inefficient  and cost  25 percent                                                                    
more to generate. The bill  provided the opportunity for the                                                                    
legislature to  receive data needed to  best allocate scarce                                                                    
educational and training resources.  The state would realize                                                                    
the full  potential of  the original  $4 million  grant that                                                                    
created the "Outcomes Database".                                                                                                
                                                                                                                                
9:11:43 AM                                                                                                                    
                                                                                                                                
Representative Wilson  MOVED to  ADOPT Amendment 1  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Page 3, following line 19:                                                                                                 
                                                                                                                                
          Insert a new subsection to read:                                                                                      
                                                                                                                                
               "(d)  The commission  shall provide  a method                                                                    
          for  an individual  whose information  is received                                                                    
          under  this section,  AS 14.42.030(e)(7)  and (8),                                                                    
          and AS  23.20.110 to opt  out of  the individual's                                                                    
          unit record  being used for  the purposes  of this                                                                    
          section."                                                                                                             
                                                                                                                                
     Reletter the following subsection accordingly.                                                                             
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Wilson reviewed  the amendment. She explained                                                                    
that  the  amendment  offered  an  opt  out  provision.  The                                                                    
amendment  would   allow  anyone   who  objected   to  their                                                                    
information being utilized could opt out.                                                                                       
                                                                                                                                
Representative Drummond  responded that the adoption  of the                                                                    
amendment would result in a  fiscal impact note. She pointed                                                                    
out  that  it was  not  possible  to  opt  out of  the  data                                                                    
collection  for the  Outcomes analysis  and much  of it  was                                                                    
required by federal  law. An opt out  provision required the                                                                    
storage   of  personal   information  in   order  to   track                                                                    
individuals that  opted out and halt  further tracking, thus                                                                    
nullifying the  de-identified process for the  database. The                                                                    
person  that wanted  to opt  out was  required to  provide a                                                                    
full  name, signature,  date of  birth, and  social security                                                                    
number and apply to the  Outcomes Database. The database was                                                                    
not designed to  provide data on individuals  since the data                                                                    
was de-identified.                                                                                                              
                                                                                                                                
9:13:56 AM                                                                                                                    
                                                                                                                                
Representative  Guttenberg  understood  the  intent  of  the                                                                    
amendment but surmised that the  data was aggregated and de-                                                                    
identified  and opting  out would  create an  identifier. He                                                                    
asked whether he understood correctly.                                                                                          
                                                                                                                                
STEPHANIE BUTLER,  EXECUTIVE DIRECTOR, ALASKA  COMMISSION ON                                                                    
POSTSECONDARY EDUCATION,  DEPARTMENT OF EDUCATION  AND EARLY                                                                    
DEVELOPMENT, responded  in the  affirmative. She  added that                                                                    
the  identified information  would have  to be  saved to  be                                                                    
removed from the database.                                                                                                      
                                                                                                                                
Vice-Chair Gara  objected to the amendment  because the APCE                                                                    
stated that  the Outcomes  Database did  not contain  an opt                                                                    
out  option and  he  did  not understand  the  need for  the                                                                    
amendment since the information remained confidential.                                                                          
                                                                                                                                
Representative  Wilson  believed  people   had  a  right  to                                                                    
protect  their   information  and  that   people  collecting                                                                    
unemployment   were  unaware   that  the   data  was   being                                                                    
collected.                                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
                                                                                                                                
OPPOSED: Grenn, Guttenberg, Ortiz, Gara, Foster                                                                                 
                                                                                                                                
The MOTION FAILED (4/5).                                                                                                        
                                                                                                                                
Co-Chair  Foster  directed  Vice-Chair Gara  to  review  the                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
9:17:57 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:20:39 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Gara reviewed the fiscal  notes. He reported that                                                                    
the  zero  fiscal  note from  the  Department  of  Commerce,                                                                    
Community and  Economic Development  (DCCED) (FN1  (EED) was                                                                    
appropriated to the  APCE. The second zero  fiscal note from                                                                    
the  Department of  Labor and  Workforce Development  (DLWD)                                                                    
(FN2  (LWF)  was  appropriated to  Employment  and  Training                                                                    
Services.                                                                                                                       
                                                                                                                                
9:21:41 AM                                                                                                                    
                                                                                                                                
Representative Wilson  referred to the analysis  from page 2                                                                    
of  the DLWD  fiscal  note  where it  indicated  a cost  was                                                                    
associated  with   the  bill.  She  read   the  fiscal  note                                                                    
analysis:                                                                                                                       
                                                                                                                                
     This   legislation  would   allow  the   department  to                                                                    
     disclose   data   employers    submit   for   mandatory                                                                    
     unemployment  insurance (UI)  reporting  to the  Alaska                                                                    
     Commission on  Postsecondary Education in support  of a                                                                    
     statewide  workforce and  education related  statistics                                                                    
     program. However, 20  CFR 603 prohibits the  use of the                                                                    
     UI  Administrative Grant  to pay  for costs  associated                                                                    
     with  disclosures. Therefore,  the  requestor must  pay                                                                    
     for  all  costs  associated   with  the  disclosure  of                                                                    
     permissible records.                                                                                                       
                                                                                                                                
     The department  is unable to estimate  costs associated                                                                    
     with these  disclosures without knowing the  number and                                                                    
     frequency  of  requests. No  change  to  the budget  is                                                                    
     anticipated at this time.                                                                                                  
                                                                                                                                
Representative Wilson  surmised that  there was a  cost, but                                                                    
it was presently unknown. Ms.  Butler responded that she had                                                                    
worked with  DLWD and acknowledged  that the  department was                                                                    
very careful to  ensure it was fully  compliant when dealing                                                                    
with data collection funded  through the federal government.                                                                    
Typically, the ACPE would enter  into a Request for Services                                                                    
Agreement (RSA) and  pay for the cost of  DLWD's staff time.                                                                    
She  expected  the  cost  to  be  "minimal."  Representative                                                                    
Wilson preferred that a representative  from DLWD answer the                                                                    
question.                                                                                                                       
                                                                                                                                
9:24:04 AM                                                                                                                    
                                                                                                                                
KELLY  CUNNINGHAM,  ANALYST, LEGISLATIVE  FINANCE  DIVISION,                                                                    
had  spoken  with  the department  and  confirmed  that  the                                                                    
requester of  the data was  required to pay.  The Department                                                                    
of Labor and Workforce  Development had sufficient authority                                                                    
to enter the RSA and charge and collect for the data.                                                                           
                                                                                                                                
Representative  Wilson asked  if a  fiscal note  should have                                                                    
been generated  by ACPE. Ms. Cunningham  deferred the answer                                                                    
to Ms. Butler.                                                                                                                  
                                                                                                                                
Ms. Butler replied  that currently the cost  was unknown but                                                                    
expected  that the  cost  was minimal.  She  added that  the                                                                    
department entered  the RSA process  with DLWD  annually for                                                                    
data sharing.  Representative Wilson  asked where  the funds                                                                    
to  pay for  the  program originated.  Ms. Butler  responded                                                                    
that the funds were Interagency  Receipts (IA) funded by the                                                                    
student  loan   corporation.  Representative   Wilson  asked                                                                    
whether  corporation  funding  was   the  interest  paid  on                                                                    
student  loans.  Ms.  Butler responded  that  Representative                                                                    
Wilson was correct.                                                                                                             
                                                                                                                                
Vice-Chair Gara  added that both agencies  had not requested                                                                    
additional funding.  He pointed  out that  both department's                                                                    
fiscal notes stated that they  did not anticipate any fiscal                                                                    
impact  from the  legislation and  both believed  they could                                                                    
absorb the minimal cost.                                                                                                        
                                                                                                                                
9:27:05 AM                                                                                                                    
                                                                                                                                
Representative  Wilson  stated  that someone  paid  for  the                                                                    
cost. She  wanted to  make sure  that it  was on  the record                                                                    
that  most of  the costs  were paid  with the  high interest                                                                    
charged to students.                                                                                                            
                                                                                                                                
Vice-Chair  Gara MOVED  to report  HB 221  out of  Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
notes.                                                                                                                          
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB  221 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and  with   two  previously  published  zero                                                                    
fiscal notes: FN1(CED) and FN2(LWF).                                                                                            
                                                                                                                                
9:28:41 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:31:37 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 221 ACPE House Bill 221 Follow-Up.pdf HFIN 4/11/2018 9:00:00 AM
HB 221
HB 304 Sectional Analysis ver A 2.27.18.pdf HFIN 4/11/2018 9:00:00 AM
HB 304
HB 304 Transmittal Letter 2.27.18.pdf HFIN 4/11/2018 9:00:00 AM
HB 304
HB384 Legal Memo 04.05.18.pdf HFIN 4/11/2018 9:00:00 AM
HB 384
HB384 Sponsor Statement 04.05.18.pdf HFIN 4/11/2018 9:00:00 AM
HB 384
HB384 Supporting Document FCC Commissioner Pai Alaska Plan Dissent 04.05.18.pdf HFIN 4/11/2018 9:00:00 AM
HB 384
HB384 Supporting Document FCC Commissioner Rosenworcel on New National Broadband Map 04.05.18.pdf HFIN 4/11/2018 9:00:00 AM
HB 384
HB384 Supporting Document NCSL List of State Broadband Statutes 04.05.18.pdf HFIN 4/11/2018 9:00:00 AM
HB 384
HB384 Supporting Document RCA Enabling Statutes 04.05.18.pdf HFIN 4/11/2018 9:00:00 AM
HB 384
HB384 Supporting Document Restoring Internet Freedom Jurisdictional Excerpt 04.05.18.pdf HFIN 4/11/2018 9:00:00 AM
HB 384
HB384 Supporting Documents Rural Broadband_Taking a Broad-Scope Look at State Legislation 04.06.18.pdf HFIN 4/11/2018 9:00:00 AM
HB 384
HB 386 Opposition.PDF HFIN 4/11/2018 9:00:00 AM
HB 386
HB 339 BSA Increase PowerPoint House Finance Committee April 6 2018.pdf HFIN 4/11/2018 9:00:00 AM
HB 339
HB 339 Support4.9.18.pdf HFIN 4/11/2018 9:00:00 AM
HB 339
HB 385 - Amendment #1.pdf HFIN 4/11/2018 9:00:00 AM
HB 385
BSA Increase PowerPoint House Finance Committee April 6 2018.pdf HFIN 4/11/2018 9:00:00 AM
HB 339
HB 399 FY19 Foundation Report - Factors.pdf HFIN 4/11/2018 9:00:00 AM
HB 399