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

Section 1: Intent language so that AHRIC minimizes its membership; develops regulations on the new grant program, and reports to the legislature on both by the 15th day of next session.

Section 2: Amends AS 23.15.640 (STEP Program) by inserting new subsections (b), (c), and (d) that add clarifying language on three of the six program elements for STEP, which are; (4) support services, including allowances, (5) relocation assistance and (6) provisions of necessary tools, etc..

2. requires that grants for elements (a) 4, 5, and 6 may be awarded only if funds from other assistance programs or grants are either not available or have been exhausted.
3. requires reimbursement by the individual, if economically feasible, for funds provided for items under program element (a)(6) tools, etc., and requires the department to account for the receipts and implement the subsection by regulation.
4. Clarifies that "support service" for program element (a)(4) can be extended to an individual only when they are participating in program elements (a)(1), (a) (2), or (a) (3).

Section 3: New section defining the new program - Article 7. Alaska Technical and Vocational Education.

Sec. 23.15.820: This section outlines the powers and duties of the Alaska Human Resource Investment Council as administrators of the new program.

Sec. 23.15.830: This section formally establishes the account for the new program and specifies the functions of the departments in regards to the account.

Sec. 23.15.835: This section sets out the amount and collection method for the new program - a credit of two-tenths of one percent in a manner similar to the existing Statewide Employment Program.

Sec. 23.15.840: This section identifies the process for the grants for the new program.

1. The AHRIC awards grants to technical and vocational education/ training entities, according to a priority list (f) they develop. The entity is eligible if its program is physically located in Alaska and they:
1. have adequate accounting systems
2. do not replace or compete with certain other training programs
3. have secured matching funds for the program
2. The AHRIC can not award if it would displace money through existing programs.
3. An entity receiving a grant must provide at least one of:
1. industry-specific training;
2. on-the-job training; and
3. institutional or classroom job-linked training
4. An educational institution that receives a grant must provide full access to records for accounting purposes.
5. When making a grant, AHRIC will limit the amount spent by entities on administration to not exceed five percent. A program funded must:
1. meet the standards on the administrative costs percentage
2. be operated by an institution authorized under AS 14.48 if the program is one operated by an institution subject to AS 14.48.
6. Grants are awarded based on the list of priorities adopted by the AHRIC. That list is based on economic, employment, and other data that is reviewed annually by AHRIC.

Section 4: This section specifies that the funds collected for the first year of the program will be distributed to the institutions listed.

Section 5: The effective date of the legislation.

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