An Act relating to technical and vocational education and to employment assistance and training; and providing for an effective date.

1. What training entities are affected by this bill?

The first year of the program, funds will go to the University of Alaska, the Kotzebue Technical Center, and the Alaska Vocational and Technical Center in Seward. The University of Alaska campuses that provide vocational and technical education are:

• Anchorage Technical & Community College
• Dillingham
• Kenai Peninsula (Kenai/Soldotna & Homer)
• Kotzebue     Through the Kotzebue Technical Center
• Nome
• Tanana Valley     In coordination with the Hutchinson Career Center
• Bethel
• Ketchikan
• Kodiak
• Mat-Su (Palmer)
• Sitka
• Valdez

The first year revenues (about $6.4 million) are directed to those specific entities because the AHRIC will not have had the opportunity to formulate regulations to solicit grant applications. Those funds are directed to the University of Alaska (76% = $4.902 million), Kotzebue Technical Center (8% =$516,000) and Alaska Vocational Technical Center (16% = $1.032 million).

Grants after the first year will be awarded according to regulations developed by the Alaska Human Resource Investment Council (AHRIC). The revenue from this source is expected to be about $8.6 million annually. Entities eligible to receive grants are those that are authorized by and are physically located in the State of Alaska. Recipients are not restricted to only the public education institutions.

The AHRIC may only award grants to entities that have sufficient accounting systems, that have secured private sector contribution commitments for matching purposes, and who's grant application purpose is listed first on the list of priorities adopted by the AHRIC. The AHRIC will adopt a priority list each year based on economic, employment, and other relevant data in order to maximize employment opportunities for participants.

2. How does the bill affect the AHRIC?

This bill affects the AHRIC (Alaska Human Resource Investment Council) in three areas. First, it makes AHRIC the responsible board for the new program. AHRIC is charged with the task of promulgating guidelines, which must be submitted to the next legislature by the 15th day of the session.

AHRIC is also charged with the task of conducting an internal reassessment and reorganization to minimize the number of members of the council and to improve its ability to efficiently and effectively serve as the state's primary planning and coordinating entity for vocational and technical education. They must also submit a report on that task to the next legislature by the 15th day of the session.

3. How does this bill affect the Statewide Employment Program (STEP)?

There are six program elements of the STEP in current statute, shown below.

1. industry specific training
2. on-the-job training
3. institutional or classroom job-linked training
4. support services, including allowances
5. relocation assistance
6. provisions of necessary tools, work related clothing, safety gear, or other necessities to obtain or retain employment.

The bill adds clarifying language on three of those program elements: (4) support services, including allowances, (5) relocation assistance and (6) provisions of necessary tools, etc.. The new language requires that grants for those purposes may be awarded only if funds from other assistance programs or grants are either not available or have been exhausted.

The bill also provides a definition for support services, now defined as a service to an individual that will enable the individual to participate in program elements (1) industry specific, (2) on-the-job, or (3) institutional or classroom job-linked training. In other words, support services can not be provided except to an individual for training under program elements (1) through (3).

Finally, when economically feasible, the individual will be required to reimburse the STEP for tools, work-related clothing, safety gear, or other similar items acquired under program element (6). The department will separately account for those reimbursements and the amounts may be used to make appropriations to the STEP account.

The intent is to have an individual, who is economically able, reimburse the program when they have obtained employment through the STEP program. Those monies can then be provided to other individuals.

Attachments:

• Sponsor Statement
• Sectional Analysis
• Flow Chart, requires Adobe Acrobat