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

This bill establishes a new Alaska Technical and Vocational Education Program which is funded through an employee credit on the Unemployment Insurance Trust Fund. The new credit is two-tenths of one percent and is patterned after the credit currently in place for the Statewide Employment Program (STEP).

The new program will be administered by the existing Alaska Human Resource Investment Council (AHRIC), which is charged with the responsibility of determining the priorities for grant submittal and distributions on an annual basis. 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.

The first year revenues (about $6.4 million) are directed to 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).

The bill also provides for the AHRIC to act as the lead state planning and coordinating entity for Alaska. The state will then be in position to receive funds from the federal government for technical and vocational education programs.

Grants shall be awarded to programs in Alaska run by technical and vocational entities that hold valid authorization to operate. The AHRIC will 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.

The bill sets out intent language directing the AHRIC to undergo an internal review to improve its efficiency and minimize its membership and requires a report to the 22nd Legislature on that review and also on the developed guidelines for implementing the new grant program.

Finally, the bill revises some program elements of the existing STEP by adding clarifying language on grant fund use for relocation assistance, tools and other gear, and support services, including allowances.

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