Legislature(2017 - 2018)ADAMS ROOM 519
04/11/2018 09:00 AM FINANCE
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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