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CSHB 278(FIN) am: "An Act increasing the base student allocation used in the formula for state funding of public education; relating to the exemption from jury service for certain teachers; relating to the powers of the Department of Education and Early Development; relating to high school course credit earned through assessment; relating to school performance reports; relating to assessments; establishing a public school and school district grading system; relating to charter schools and student transportation; relating to residential school applications; relating to tenure of public school teachers; relating to unemployment contributions for the Alaska technical and vocational education program; relating to earning high school credit for completion of vocational education courses offered by institutions receiving technical and vocational education program funding; relating to schools operated by a federal agency; relating to a grant for school districts; relating to education tax credits; establishing an optional municipal tax exemption for privately owned real property rented or leased for use as a charter school; requiring the Department of Administration to provide a proposal for a salary and benefits schedule for school districts; making conforming amendments; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 278(FIN) am 01 "An Act increasing the base student allocation used in the formula for state funding of 02 public education; relating to the exemption from jury service for certain teachers; 03 relating to the powers of the Department of Education and Early Development; relating 04 to high school course credit earned through assessment; relating to school performance 05 reports; relating to assessments; establishing a public school and school district grading 06 system; relating to charter schools and student transportation; relating to residential 07 school applications; relating to tenure of public school teachers; relating to 08 unemployment contributions for the Alaska technical and vocational education 09 program; relating to earning high school credit for completion of vocational education 10 courses offered by institutions receiving technical and vocational education program 11 funding; relating to schools operated by a federal agency; relating to a grant for school 12 districts; relating to education tax credits; establishing an optional municipal tax

01 exemption for privately owned real property rented or leased for use as a charter 02 school; requiring the Department of Administration to provide a proposal for a salary 03 and benefits schedule for school districts; making conforming amendments; and 04 providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 09.20.030(b) is amended to read: 07 (b) A person may claim exemption and shall be excused by the court from 08 service as a juror during the school term if it is shown that the person is a teacher in a 09 school that is designated as a low performing school under regulations adopted by 10 the state Board of Education and Early Development [FAILING TO MAKE 11 ADEQUATE YEARLY PROGRESS UNDER P.L. 107-110]. In this subsection, 12 "teacher" means a person who serves a school district in a teaching capacity in a 13 classroom setting and is required to be certificated in order to hold the position. 14 * Sec. 2. AS 14.03 is amended by adding a new section to read: 15 Sec. 14.03.073. Secondary school course credit. (a) A school district shall 16 provide the opportunity for students enrolled in a secondary school in the district to 17 challenge a course provided by the district by demonstrating mastery in the subject at 18 the level of the course challenged. A school district shall give full credit for a course to 19 a student who successfully challenges that course as provided under this section. 20 (b) A school district shall establish, within a reasonable time, an assessment 21 tool and a standard for demonstrating mastery in secondary school courses provided 22 by the district that are likely to be or have been the subject of a challenge requested 23 under this section. 24 (c) The board shall adopt regulations to implement this section. 25 (d) In this section, "school district" has the meaning given in AS 14.30.350. 26 * Sec. 3. AS 14.03.078 is amended to read: 27 Sec. 14.03.078. Report. The department shall provide to the legislature by 28 February 15 of each year an annual report regarding the progress of each school and 29 school district toward high academic performance by all students. The report required

01 under this section must include 02 (1) information described under AS 14.03.120(d); 03 (2) the number and percentage of students in each school who pass the 04 examination required under AS 14.03.075, and the number who pass each section of 05 the examination; 06 (3) progress of the department 07 (A) toward implementing the school accountability provisions 08 of AS 14.03.123; and 09 (B) in assisting high schools to become accredited; 10 (4) a description of the resources provided to each school and school 11 district for coordinated school improvement activities and staff training in each school 12 and school district; 13 (5) each school district's and each school's progress in aligning 14 curriculum with state education performance standards; 15 (6) a description of the efforts by the department to assist a public 16 school or school district that receives a low performance designation under 17 AS 14.03.123 [OF DEFICIENT OR IN CRISIS]; 18 (7) a description of intervention efforts by each school district and 19 school for students who are not meeting state performance standards; 20 (8) the number and percentage of turnover in certificated personnel and 21 superintendents; 22 (9) the number of teachers by district and by school who are teaching 23 outside the teacher's area of endorsement but in areas tested by the high school 24 competency examination. 25 * Sec. 4. AS 14.03.083 is amended by adding a new subsection to read: 26 (d) The department and the state Board of Education and Early Development 27 may not enter into or renew a contract or agreement, or participate, with any 28 organization, entity, group, or consortium after the effective date of this section that 29 requires the state to cede any measure of autonomy or control over education 30 standards and assessments, including the determination of passing scores. 31 * Sec. 5. AS 14.03.120(d) is amended to read:

01 (d) Annually, before the date set by the district under (e) of this section, each 02 public school shall deliver to the department for posting on the department's Internet 03 website and provide, in a public meeting of parents, students, and community 04 members, a report on the school's performance and the performance of the school's 05 students. The report shall be prepared on a form prescribed by the department and 06 must include 07 (1) information on accreditation; 08 (2) results of norm-referenced achievement tests; 09 (3) results of state standards-based assessments in language arts 10 [READING, WRITING,] and mathematics; 11 (4) a description, including quantitative and qualitative measures, of 12 student, parent, community, and business involvement in student learning; 13 (5) a description of the school's attendance, retention, dropout, and 14 graduation rates, including the number and percentage of students who received a 15 diploma under a waiver from the competency examination required under 16 AS 14.03.075(a), as specified by the state board; 17 (6) the annual percent of enrollment change, regardless of reason, and 18 the annual percent of enrollment change due to student transfers into and out of the 19 school district; 20 (7) if Native language education is provided, a summary and 21 evaluation of the curriculum described in AS 14.30.420; 22 (8) the number and percentage of students in each school who take and 23 who successfully complete an alternative assessment program in reading, English, or 24 mathematics; and the number and percentage of pupils in each school who 25 successfully complete the alternative assessment program but who do not reach the 26 state performance standards at the competency exam level in reading, English, or 27 mathematics; a school may not report results under this paragraph unless the school 28 complies with the family educational rights and privacy requirements of 34 C.F.R. 99; 29 (9) the performance designation assigned the school under 30 AS 14.03.123 and the methodology used to assign the performance designation, 31 including the measures used and their relative weights; [AND]

01 (10) other information concerning school performance and the 02 performance of the school's students as required by the state board in regulation; and 03 (11) information on the number, attendance, and performance of 04 students enrolled in the school whose parents or guardians are on active duty in 05 the armed forces of the United States, the United States Coast Guard, the Alaska 06 National Guard, the Alaska Naval Militia, or the Alaska State Defense Force. 07 * Sec. 6. AS 14.03.123(c) is amended to read: 08 (c) The state board shall adopt regulations implementing this section, 09 providing for a statewide student assessment system, and providing for the process of 10 assigning a designation under (a) of this section, including 11 (1) the method [METHODOLOGY] used to assign the performance 12 designation, including the measures used and their relative weights; 13 (2) high performance and low performance designations that are based 14 on the accountability system under this section and AS 14.03.124; 15 (3) a procedure for appealing a designation that may be used by the 16 principal of a public school or by the superintendent of a public school district; 17 (4) additional measures that may be progressively implemented by the 18 commissioner to assist schools or districts to improve performance in accordance with 19 this section and with federal law; to the extent necessary to conform to federal law, the 20 additional measures may be unique to a certain school or district if that school or 21 district receives federal funding that is not available to all schools or districts in the 22 state. 23 * Sec. 7. AS 14.03.123(f) is amended to read: 24 (f) In the accountability system for schools and districts required by this 25 section, the department shall 26 (1) implement 20 U.S.C. 6301 - 7941 (Elementary and Secondary 27 Education Act of 1965), as amended; 28 (2) implement state criteria and priorities for accountability including 29 the use of 30 (A) measures of student performance on standards-based 31 assessments in language arts [READING, WRITING,] and mathematics, and

01 including competency tests required under AS 14.03.075; 02 (B) measures of student improvement; and 03 (C) other measures identified that are indicators of student 04 success and achievement; and 05 (3) to the extent practicable, minimize the administrative burden on 06 districts. 07 * Sec. 8. AS 14.03 is amended by adding a new section to read: 08 Sec. 14.03.124. Public school and school district grading system. The 09 department shall establish by regulation the criteria that accounts for improvement in 10 student achievement for assigning annual performance designations as follows: 11 (1) "A" for a school making excellent progress; 12 (2) "B" for a school making above average progress; 13 (3) "C" for a school making satisfactory progress; 14 (4) "D" for a school making less than satisfactory progress; 15 (5) "F" for a school failing to make adequate progress. 16 * Sec. 9. AS 14.03.250 is repealed and reenacted to read: 17 Sec. 14.03.250. Application for charter school. (a) A local school board shall 18 prescribe an application procedure for the establishment of a charter school in that 19 school district. The application procedure must include provisions for an academic 20 policy committee consisting of parents of students attending the school, teachers, and 21 school employees and a proposed form for a contract between a charter school and the 22 local school board, setting out the contract elements required under AS 14.03.255(c). 23 (b) A decision of a local school board approving or denying an application for 24 a charter school must be in writing, must be issued within 60 days after the 25 application, and must include all relevant findings of fact and conclusions of law. 26 (c) If a local school board approves an application for a charter school, the 27 local school board shall forward the application to the state Board of Education and 28 Early Development for review and approval. 29 (d) If a local school board denies an application for a charter school, the 30 applicant may appeal the denial to the commissioner. The appeal to the commissioner 31 shall be filed not later than 60 days after the local school board issues its written

01 decision of denial. The commissioner shall review the local school board's decision to 02 determine whether the findings of fact are supported by substantial evidence and 03 whether the decision is contrary to law. A decision of the commissioner upholding the 04 denial by the local school board may be appealed within 30 days to the state Board of 05 Education and Early Development. 06 (e) If the commissioner approves a charter school application, the 07 commissioner shall forward the application to the state Board of Education and Early 08 Development for review and approval. The application shall be forwarded not later 09 than 30 days after the commissioner issues a written decision. The state Board of 10 Education and Early Development shall exercise independent judgment in evaluating 11 the application. 12 (f) A local school board that denied an application for a charter school 13 approved by the state board on appeal shall operate the charter school as provided in 14 AS 14.03.255 - 14.03.290. 15 * Sec. 10. AS 14.03 is amended by adding a new section to read: 16 Sec. 14.03.253. Charter school application appeal. (a) In an appeal to the 17 commissioner under AS 14.03.250, the commissioner shall review the record before 18 the local school board. The commissioner may request written supplementation of the 19 record from the applicant or the local school board. The commissioner may 20 (1) remand the appeal to the local school board for further review; 21 (2) approve the charter school application and forward the application 22 to the state Board of Education and Early Development with or without added 23 conditions; or 24 (3) uphold the decision denying the charter school application; if the 25 commissioner upholds a local school board's decision to deny a charter school 26 application and the applicant appeals to the State Board of Education and Early 27 Development, the commissioner shall immediately forward the application and record 28 to the state Board of Education and Early Development. 29 (b) In an appeal to the state Board of Education and Early Development of a 30 denial of a charter school application under (a)(3) of this section, the state board shall 31 determine, based on the record, whether the commissioner's findings are supported by

01 substantial evidence and whether the decision is contrary to law. The state board shall 02 issue a written decision within 90 days after an appeal. 03 * Sec. 11. AS 14.03.255(d) is amended to read: 04 (d) A school district shall offer to a charter school the right of first refusal 05 for a lease of space [CHARTER SCHOOL MAY BE OPERATED] in an existing 06 school district facility or in a facility within the school district that is not currently 07 being used as a public school, if the chief school administrator determines the facility 08 meets requirements for health and safety applicable to public buildings or other public 09 schools in the district. If the school district requires lease payments by a charter 10 school, the school district shall negotiate a lease agreement with the charter 11 school for an amount that does not exceed the true operational costs calculated 12 on a square foot basis for space leased under this subsection. 13 * Sec. 12. AS 14.03.260(a) is amended to read: 14 (a) A local school board shall provide an approved charter school with an 15 annual program budget. The budget shall be not less than the amount generated by the 16 students enrolled in the charter school less administrative costs retained by the local 17 school district, determined by applying the indirect cost rate approved by the 18 department up to 4 percent. A local school board shall provide a charter school 19 with a report itemizing the administrative costs retained by the local school 20 board under this section [DEPARTMENT OF EDUCATION AND EARLY 21 DEVELOPMENT]. The "amount generated by students enrolled in the charter school" 22 is to be determined in the same manner as it would be for a student enrolled in another 23 public school in that school district and includes funds generated by special needs 24 under AS 14.17.420(a)(1) and secondary school vocational and technical 25 instruction under AS 14.17.420(a)(3). A school district shall direct state aid under 26 AS 14.11 for the construction or major maintenance of a charter school facility to 27 the charter school that generated the state aid, subject to the same terms and 28 conditions that apply to state aid under AS 14.11 for construction or major 29 maintenance of a school facility that is not a charter school. 30 * Sec. 13. AS 14.03 is amended by adding a new section to read: 31 Sec. 14.03.263. Charter school grant program. (a) A charter school that is

01 established on or after the effective date of this section may receive a one-time grant 02 from the department equal to the amount of $500 for each student enrolled in the 03 school on October 1 of the first year in which the school applies for the grant. The 04 charter school shall use a grant received under this section to provide educational 05 services. In this subsection, "educational services" includes curriculum development, 06 program development, and special education services. 07 (b) The department shall establish by regulation procedures for the application 08 for and expenditure of grant funds under (a) of this section. 09 (c) If the amount appropriated in a fiscal year for the charter school grant 10 program is insufficient to meet the amounts authorized under (a) of this section, the 11 department shall reduce pro rata the per pupil grant amount by the necessary 12 percentage as determined by the department. If a charter school grant is reduced under 13 this subsection, the charter school may apply to the department in a subsequent fiscal 14 year for the balance of the grant amount. 15 * Sec. 14. AS 14.07.020(a)(16) is amended to read: 16 (16) establish by regulation criteria, based on low student performance, 17 under which the department may intervene in a school district to improve instructional 18 practices, as described in AS 14.07.030(14) or (15); the regulations must include 19 (A) a notice provision that alerts the district to the deficiencies 20 and the instructional practice changes proposed by the department; 21 (B) an end date for departmental intervention, as described in 22 AS 14.07.030(14)(A) and (B) and (15), after the district demonstrates three 23 consecutive years of improvement consisting of not less than two percent 24 increases in student proficiency on standards-based assessments in language 25 arts and mathematics, [READING, AND WRITING] as provided in 26 AS 14.03.123(f)(2)(A); and 27 (C) a process for districts to petition the department for 28 continuing or discontinuing the department's intervention; 29 * Sec. 15. AS 14.07.020(b) is amended to read: 30 (b) In implementing its duties under (a)(2) of this section, the department shall 31 not expend any money to implement the set of educational curriculum standards

01 for grades kindergarten through 12 established by the Common Core Standards 02 Initiative and shall develop 03 (1) performance standards in language arts [READING, WRITING,] 04 and mathematics to be met at designated age levels by each student in public schools 05 in the state; and 06 (2) a comprehensive system of student assessments, composed of 07 multiple indicators of proficiency in language arts [READING, WRITING,] and 08 mathematics; this comprehensive system must 09 (A) be made available to all districts and regional educational 10 attendance areas; 11 (B) include a developmental profile for students entering 12 kindergarten or first grade; and 13 (C) include performance standards in language arts 14 [READING, WRITING,] and mathematics for students in age groups five 15 through seven, eight through 10, and 11 - 14. 16 * Sec. 16. AS 14.07.168 is amended to read: 17 Sec. 14.07.168. Report to the legislature. Not later than the 30th legislative 18 day of each regular session of the legislature, the board shall prepare and present in 19 person to the legislative committees having jurisdiction over education an annual 20 report that describes the efforts of the board to develop, maintain, and continuously 21 improve a comprehensive quality public education system, as provided for under the 22 bylaws of the board. The report must include 23 (1) a summary of the resolves and rationales provided in support of 24 policy decisions made under AS 14.03.015; 25 (2) program and curriculum changes made, discussed, or 26 recommended in meetings held under AS 14.07.125; 27 (3) additional information relevant to efforts made to improve and 28 maintain the public education system; 29 (4) recommendations for changes in the method of education 30 spending by the state and school districts that result in improved efficiencies in 31 and administration of public education in the state.

01 * Sec. 17. AS 14.09.010 is amended by adding new subsections to read: 02 (e) A school district that provides transportation services under this section 03 shall provide transportation services to students attending a charter school operated by 04 the district under a policy adopted by the district. The policy must 05 (1) be developed with input solicited from individuals involved with 06 the charter school, including staff, students, and parents; 07 (2) at a minimum, provide transportation services for students enrolled 08 in the charter school on a space available basis along the regular routes that the 09 students attending schools in an attendance area in the district are transported; and 10 (3) be approved by the department. 11 (f) If a school district fails to adopt a policy under (e) of this section, the 12 school district shall allocate the amount received for each student under (a) of this 13 section to each charter school operated by the district based on the number of students 14 enrolled in the charter school. 15 (g) Nothing in (e) of this section requires a school district to establish 16 dedicated transportation routes for the exclusive use of students enrolled in a charter 17 school or authorizes a charter school to opt out of a policy adopted by a school district 18 for the purpose of acquiring transportation funding. 19 * Sec. 18. AS 14.16.050(a) is amended to read: 20 (a) The following provisions apply with respect to the operation and 21 management of a state boarding school as if it were a school district: 22 (1) requirements relating to school district operations: 23 (A) AS 14.03.030 - 14.03.050 (defining the school term, day in 24 session, and school holidays); 25 (B) AS 14.03.073 and 14.03.083 - 14.03.140 [AS 14.03.083 - 26 14.03.140] (miscellaneous provisions applicable to school district operations); 27 (C) regulations adopted by the board under authority of 28 AS 14.07.020(a) that are applicable to school districts and their schools, unless 29 the board specifically exempts state boarding schools from compliance with a 30 regulation; 31 (D) AS 14.12.150 (authorizing school districts to establish and

01 participate in the services of a regional resource center); 02 (E) AS 14.14.050 (imposing the requirement of an annual 03 audit); 04 (F) AS 14.14.110 (authorizing cooperation with other school 05 districts); 06 (G) AS 14.14.140(b) (establishing a prohibition on 07 employment of a relative of the chief school administrator); 08 (H) AS 14.18 (prohibiting discrimination based on sex in 09 public education); 10 (2) requirements relating to the public school funding program and the 11 receipt and expenditure of that funding: 12 (A) AS 14.17.500 (relating to student count estimates); 13 (B) AS 14.17.505 (relating to school operating fund balances); 14 (C) AS 14.17.500 - 14.17.910 (setting out the procedure for 15 payment of public school funding and imposing general requirements and 16 limits on money paid); 17 (3) requirements relating to teacher employment and retirement: 18 (A) AS 14.14.105 and 14.14.107 (relating to sick leave); 19 (B) AS 14.20.095 - 14.20.215 (relating to the employment and 20 tenure of teachers); 21 (C) AS 14.20.220 (relating to the salaries of teachers 22 employed); 23 (D) AS 14.20.280 - 14.20.350 (relating to sabbatical leave 24 provisions for teachers); 25 (E) AS 23.40.070 - 23.40.260 (authorizing collective 26 bargaining by certificated employees), except with regard to teachers who are 27 administrators and except that the board may delegate some or all of its 28 responsibilities under those statutes; 29 (F) AS 14.25 (provisions regarding the teachers' retirement 30 system); 31 (4) requirements relating to students and educational programs:

01 (A) AS 14.30.180 - 14.30.350 (relating to educational services 02 for children with disabilities); 03 (B) AS 14.30.360 - 14.30.370 (establishing health education 04 program standards); 05 (C) AS 14.30.400 - 14.30.410 (relating to bilingual and 06 bicultural education). 07 * Sec. 19. AS 14.16 is amended by adding a new section to article 2 to read: 08 Sec. 14.16.100. Application for residential school. A school district shall 09 apply to the department for approval to establish and operate a statewide or district- 10 wide residential school. The department shall accept applications during an open 11 application period conducted annually. A period of open application in itself does not 12 indicate that the department will approve the establishment of a new residential 13 school. 14 * Sec. 20. AS 14.17.470 is amended to read: 15 Sec. 14.17.470. Base student allocation. The base student allocation is 16 $5,865 [$5,680]. 17 * Sec. 21. AS 14.17.470, as amended by sec. 20 of this Act, is amended to read: 18 Sec. 14.17.470. Base student allocation. The base student allocation is 19 $5,923 [$5,865]. 20 * Sec. 22. AS 14.17.470, as amended by secs. 20 and 21 of this Act, is amended to read: 21 Sec. 14.17.470. Base student allocation. The base student allocation is 22 $5,981 [$5,923]. 23 * Sec. 23. AS 14.20.150(a) is amended to read: 24 (a) Except as provided in (c) or (d) of this section, a teacher acquires tenure 25 rights in a district when the teacher 26 (1) possesses a valid teaching certificate that authorizes the teacher to 27 be employed as a certificated teacher or as an administrator under regulations adopted 28 by the department; 29 (2) has been employed as a teacher in the same district continuously 30 for five [THREE] full school years; 31 (3) receives, in the fifth [THIRD] year of any five-year [THREE-

01 YEAR] period of continuous employment with the district, an evaluation under the 02 district's evaluation system stating that the teacher's performance meets the district 03 performance standards; and 04 (4) on or before October 15 of the school year, 05 (A) accepts a contract for employment as a teacher in the 06 district for a sixth [FOURTH] consecutive school year; and 07 (B) performs a day of teaching services in the district during 08 that school year. 09 * Sec. 24. AS 14.20.150 is amended by adding a new subsection to read: 10 (f) For teachers employed by a rural school district, the years of employment 11 required to acquire tenure rights as provided in (a) of this section shall be reduced by 12 two years. In this subsection, "rural school district" means a regional educational 13 attendance area or a school district located in a small borough or first class city with a 14 population of less than 5,500. 15 * Sec. 25. AS 23.15.835(d) is amended to read: 16 (d) Notwithstanding AS 23.15.840(a), for the fiscal years ending June 30, 17 2009, through June 30, 2017 [2014], the money collected under this section or 18 otherwise appropriated to the Alaska Workforce Investment Board, formerly known as 19 the Alaska Human Resource Investment Council, shall be allocated directly in the 20 following percentages to the following institutions for programs consistent with 21 AS 23.15.820 - 23.15.850 and capital improvements: 22 University of Alaska 45 percent 23 University of Alaska Southeast 5 percent 24 Galena Project Education Vocational Training Center 4 percent 25 Kotzebue Technical Center 9 percent 26 Alaska Vocational Technical Center 17 percent 27 Northwestern Alaska Career and Technical Center 3 percent 28 Southwest Alaska Vocational and Education Center 3 percent 29 Yuut Elitnaurviat, Inc. People's Learning Center 9 percent 30 Delta Career Advancement Center 3 percent 31 New Frontier Vocational Technical Center 2 percent.

01 * Sec. 26. AS 23.15.835(e) is amended to read: 02 (e) The institutions receiving funding under (d) of this section shall provide an 03 expenditure and performance report to the department by November 1 of each year 04 that includes [THE] 05 (1) the percentage of former participants in the program who have jobs 06 one year after leaving the program; 07 (2) the median wage of former participants seven to 12 months after 08 leaving the program; 09 (3) the percentage of former participants who were employed after 10 leaving the program who received training under the program that was related or 11 somewhat related to the former participants' jobs seven to 12 months after leaving the 12 program; 13 (4) a description of each vocational education course funded 14 through the allocation set out in (d) of this section that permits high school 15 students to earn dual credit upon course completion, and the number of high 16 school students who earned dual credit in the past year; 17 (5) a copy of any articulation agreement established under (g) of 18 this section that either was in effect for the preceding year or is in process for the 19 next year of funding, and the number of high school students who earned dual 20 credit under each articulation agreement; and 21 (6) the performance and financial information needed to verify the 22 performance of the program as specified by the department by regulation 23 [PERCENTAGE OF FORMER PARTICIPANTS WHO INDICATE SOME LEVEL 24 OF SATISFACTION WITH THE TRAINING RECEIVED UNDER THE 25 PROGRAM; AND 26 (5) PERCENTAGE OF EMPLOYERS WHO INDICATE 27 SATISFACTION WITH THE SERVICES PROVIDED THROUGH THE 28 PROGRAM]. 29 * Sec. 27. AS 23.15.835 is amended by adding new subsections to read: 30 (g) The institutions receiving funding under (d) of this section shall establish 31 and maintain at least one articulation agreement under which dual credit may be

01 earned by high school students upon completion of a vocational education course. 02 (h) An institution's failure to comply with (e) or (g) of this section shall result 03 in a withholding penalty of 20 percent of the funding allocated under (d) of this 04 section in the following year. 05 * Sec. 28. AS 23.15.850 is amended by adding new paragraphs to read: 06 (3) "articulation agreement" means a dual-credit partnership between a 07 school district and an institution receiving funding under AS 23.15.835(d) that 08 describes vocational education courses, student eligibility, course location, academic 09 policies, student support services, credit on a student's transcript, funding, and other 10 items required by the partnering institutions; 11 (4) "dual credit" means simultaneous high school credit and credit 12 toward a career or vocational certification. 13 * Sec. 29. AS 29.45.050 is amended by adding a new subsection to read: 14 (v) A municipality may by ordinance classify and exempt or partially exempt 15 from taxation all or a portion of privately owned real property rented or leased for use 16 as a charter school established under AS 14.03.250. 17 * Sec. 30. AS 43.20.014(a) is amended to read: 18 (a) A taxpayer is allowed a credit against the tax due under this chapter for 19 cash contributions accepted for 20 (1) direct instruction, research, and educational support purposes, 21 including library and museum acquisitions, and contributions to endowment, by an 22 Alaska university foundation, [OR] by a nonprofit, public or private, Alaska two-year 23 or four-year college accredited by a regional accreditation association, or by a public 24 or private nonprofit elementary or secondary school in the state; 25 (2) secondary school level vocational education courses, programs, and 26 facilities by a school district in the state; 27 (3) vocational education courses, programs, and facilities by a state- 28 operated vocational technical education and training school; 29 (4) a facility [OR AN ANNUAL INTERCOLLEGIATE SPORTS 30 TOURNAMENT] by a nonprofit, public or private, Alaska two-year or four-year 31 college accredited by a regional accreditation association or by a public or private

01 nonprofit elementary or secondary school in the state; 02 (5) Alaska Native cultural or heritage programs and educational 03 support, including mentoring and tutoring, provided by a nonprofit agency for public 04 school staff and for students who are in grades kindergarten through 12 in the state; 05 (6) education, research, rehabilitation, and facilities by an institution 06 that is located in the state and that qualifies as a coastal ecosystem learning center 07 under the Coastal America Partnership established by the federal government; [AND] 08 (7) the Alaska higher education investment fund under AS 37.14.750; 09 (8) funding a scholarship awarded by a nonprofit organization to a 10 dual-credit student to defray the cost of a dual-credit course, including the cost of 11 (A) tuition and textbooks; 12 (B) registration, course, and programmatic student fees; 13 (C) on-campus room and board at the postsecondary 14 institution in the state that provides the dual-credit course; 15 (D) transportation costs to and from a residential school 16 approved by the Department of Education and Early Development under 17 AS 14.16.200 or the postsecondary school in the state that provides the 18 dual-credit course; and 19 (E) other related educational and programmatic costs; 20 (9) constructing, operating, or maintaining a residential housing 21 facility by a residential school in the state approved by the Department of 22 Education and Early Development under AS 14.16.200; 23 (10) childhood early learning and development programs and 24 educational support to childhood early learning and development programs 25 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 26 a school district in the state, by the Department of Education and Early 27 Development, or through a state grant; and 28 (11) science, technology, engineering, and math programs 29 provided by a nonprofit agency or a school district for school staff and for 30 students in grades kindergarten through 12 in the state. 31 * Sec. 31. AS 43.20.014(a), as amended by sec. 14, ch. 92, SLA 2010, sec. 14, ch. 7,

01 FSSLA 2011, and sec. 15, ch. 74, SLA 2012, is amended to read: 02 (a) A taxpayer is allowed a credit against the tax due under this chapter for 03 cash contributions accepted 04 (1) for direct instruction, research, and educational support purposes, 05 including library and museum acquisitions, and contributions to endowment, by an 06 Alaska university foundation, [OR] by a nonprofit, public or private, Alaska two-year 07 or four-year college accredited by a regional accreditation association, or by a public 08 or private nonprofit elementary or secondary school in the state; 09 (2) for secondary school level vocational education courses and 10 programs by a school district in the state; 11 (3) by a state-operated vocational technical education and training 12 school; [AND] 13 (4) for the Alaska higher education investment fund under 14 AS 37.14.750; 15 (5) for funding a scholarship awarded by a nonprofit organization 16 to a dual-credit student to defray the cost of a dual-credit course, including the 17 cost of 18 (A) tuition and textbooks; 19 (B) registration, course, and programmatic student fees; 20 (C) on-campus room and board at the postsecondary 21 institution in the state that provides the dual-credit course; 22 (D) transportation costs to and from a residential school 23 approved by the Department of Education and Early Development under 24 AS 14.16.200 or the postsecondary school in the state that provides the 25 dual-credit course; and 26 (E) other related educational and programmatic costs; 27 (6) for constructing, operating, or maintaining a residential 28 housing facility by a residential school approved by the Department of Education 29 and Early Development under AS 14.16.200; and 30 (7) for childhood early learning and development programs and 31 educational support to childhood early learning and development programs

01 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 02 a school district in the state, by the Department of Education and Early 03 Development, or through a state grant. 04 * Sec. 32. AS 43.20.014(f) is amended by adding new paragraphs to read: 05 (3) "dual-credit student" means a secondary level student in the state 06 who simultaneously earns college and high school credit for a course; 07 (4) "nonprofit organization" means a charitable or educational 08 organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) 09 (Internal Revenue Code). 10 * Sec. 33. AS 43.65.018(a) is amended to read: 11 (a) A person engaged in the business of mining in the state is allowed a credit 12 against the tax due under this chapter for cash contributions accepted for 13 (1) direct instruction, research, and educational support purposes, 14 including library and museum acquisitions, and contributions to endowment, by an 15 Alaska university foundation, [OR] by a nonprofit, public or private, Alaska two-year 16 or four-year college accredited by a regional accreditation association, or by a public 17 or private nonprofit elementary or secondary school in the state; 18 (2) secondary school level vocational education courses, programs, and 19 facilities by a school district in the state; 20 (3) vocational education courses, programs, and facilities by a state- 21 operated vocational technical education and training school; 22 (4) a facility [OR AN ANNUAL INTERCOLLEGIATE SPORTS 23 TOURNAMENT] by a nonprofit, public or private, Alaska two-year or four-year 24 college accredited by a regional accreditation association or by a public or private 25 nonprofit elementary or secondary school in the state; 26 (5) Alaska Native cultural or heritage programs and educational 27 support, including mentoring and tutoring, provided by a nonprofit agency for public 28 school staff and for students who are in grades kindergarten through 12 in the state; 29 (6) education, research, rehabilitation, and facilities by an institution 30 that is located in the state and that qualifies as a coastal ecosystem learning center 31 under the Coastal America Partnership established by the federal government; [AND]

01 (7) the Alaska higher education investment fund under AS 37.14.750; 02 (8) funding a scholarship awarded by a nonprofit organization to a 03 dual-credit student to defray the cost of a dual-credit course, including the cost of 04 (A) tuition and textbooks; 05 (B) registration, course, and programmatic student fees; 06 (C) on-campus room and board at the postsecondary 07 institution in the state that provides the dual-credit course; 08 (D) transportation costs to and from a residential school 09 approved by the Department of Education and Early Development under 10 AS 14.16.200 or the postsecondary school in the state that provides the 11 dual-credit course; and 12 (E) other related educational and programmatic costs; 13 (9) constructing, operating, or maintaining a residential housing 14 facility by a residential school approved by the Department of Education and 15 Early Development under AS 14.16.200; 16 (10) childhood early learning and development programs and 17 educational support to childhood early learning and development programs 18 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 19 a school district in the state, by the Department of Education and Early 20 Development, or through a state grant; and 21 (11) science, technology, engineering, and math programs 22 provided by a nonprofit agency or a school district for school staff and for 23 students in grades kindergarten through 12 in the state. 24 * Sec. 34. AS 43.65.018(a), as amended by sec. 35, ch. 92, SLA 2010, sec. 14, ch. 7, 25 FSSLA 2011, and sec. 21, ch. 74, SLA 2012, is amended to read: 26 (a) A person engaged in the business of mining in the state is allowed a credit 27 against the tax due under this chapter for cash contributions accepted 28 (1) for direct instruction, research, and educational support purposes, 29 including library and museum acquisitions, and contributions to endowment, by an 30 Alaska university foundation, [OR] by a nonprofit, public or private, Alaska two-year 31 or four-year college accredited by a regional accreditation association, or by a public

01 or private nonprofit elementary or secondary school in the state; 02 (2) for secondary school level vocational education courses and 03 programs by a school district in the state; 04 (3) by a state-operated vocational technical education and training 05 school; [AND] 06 (4) for the Alaska higher education investment fund under 07 AS 37.14.750; 08 (5) for funding a scholarship awarded by a nonprofit organization 09 to a dual-credit student to defray the cost of a dual-credit course, including the 10 cost of 11 (A) tuition and textbooks; 12 (B) registration, course, and programmatic student fees; 13 (C) on-campus room and board at the postsecondary 14 institution in the state that provides the dual-credit course; 15 (D) transportation costs to and from a residential school 16 approved by the Department of Education and Early Development under 17 AS 14.16.200 or the postsecondary school in the state that provides the 18 dual-credit course; and 19 (E) other related educational and programmatic costs; 20 (6) for constructing, operating, or maintaining a residential 21 housing facility by a residential school approved by the Department of Education 22 and Early Development under AS 14.16.200; and 23 (7) for childhood early learning and development programs and 24 educational support to childhood early learning and development programs 25 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 26 a school district in the state, by the Department of Education and Early 27 Development, or through a state grant. 28 * Sec. 35. AS 43.65.018(f) is amended by adding new paragraphs to read: 29 (3) "dual-credit student" means a secondary level student in the state 30 who simultaneously earns college and high school credit for a course; 31 (4) "nonprofit organization" means a charitable or educational

01 organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) 02 (Internal Revenue Code). 03 * Sec. 36. AS 43.75.018(a) is amended to read: 04 (a) A person engaged in a fisheries business is allowed a credit against the tax 05 due under this chapter for cash contributions accepted for 06 (1) direct instruction, research, and educational support purposes, 07 including library and museum acquisitions, and contributions to endowment, by an 08 Alaska university foundation, [OR] by a nonprofit, public or private, Alaska two-year 09 or four-year college accredited by a regional accreditation association, or by a public 10 or private nonprofit elementary or secondary school in the state; 11 (2) secondary school level vocational education courses, programs, and 12 facilities by a school district in the state; 13 (3) vocational education courses, programs, and facilities by a state- 14 operated vocational technical education and training school; 15 (4) a facility [OR AN ANNUAL INTERCOLLEGIATE SPORTS 16 TOURNAMENT] by a nonprofit, public or private, Alaska two-year or four-year 17 college accredited by a regional accreditation association or by a public or private 18 nonprofit elementary or secondary school in the state; 19 (5) Alaska Native cultural or heritage programs and educational 20 support, including mentoring and tutoring, provided by a nonprofit agency for public 21 school staff and for students who are in grades kindergarten through 12 in the state; 22 (6) education, research, rehabilitation, and facilities by an institution 23 that is located in the state and that qualifies as a coastal ecosystem learning center 24 under the Coastal America Partnership established by the federal government; [AND] 25 (7) the Alaska higher education investment fund under AS 37.14.750; 26 (8) funding a scholarship awarded by a nonprofit organization to a 27 dual-credit student to defray the cost of a dual-credit course, including the cost of 28 (A) tuition and textbooks; 29 (B) registration, course, and programmatic student fees; 30 (C) on-campus room and board at the postsecondary 31 institution in the state that provides the dual-credit course;

01 (D) transportation costs to and from a residential school 02 approved by the Department of Education and Early Development under 03 AS 14.16.200 or the postsecondary school in the state that provides the 04 dual-credit course; and 05 (E) other related educational and programmatic costs; 06 (9) constructing, operating, or maintaining a residential housing 07 facility by a residential school approved by the Department of Education and 08 Early Development under AS 14.16.200; 09 (10) childhood early learning and development programs and 10 educational support to childhood early learning and development programs 11 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 12 a school district in the state, by the Department of Education and Early 13 Development, or through a state grant; and 14 (11) science, technology, engineering, and math programs 15 provided by a nonprofit agency or a school district for school staff and for 16 students in grades kindergarten through 12 in the state. 17 * Sec. 37. AS 43.75.018(a), as amended by sec. 42, ch. 92, SLA 2010, sec. 14, ch. 7, 18 FSSLA 2011, and sec. 23, ch. 74, SLA 2012, is amended to read: 19 (a) A person engaged in a fisheries business is allowed a credit against the tax 20 due under this chapter for cash contributions accepted 21 (1) for direct instruction, research, and educational support purposes, 22 including library and museum acquisitions, and contributions to endowment, by an 23 Alaska university foundation, [OR] by a nonprofit, public or private, Alaska two-year 24 or four-year college accredited by a regional accreditation association, or by a public 25 or private nonprofit elementary or secondary school in the state; 26 (2) for secondary school level vocational education courses and 27 programs by a school district in the state; 28 (3) by a state-operated vocational technical education and training 29 school; [AND] 30 (4) for the Alaska higher education investment fund under 31 AS 37.14.750;

01 (5) for funding a scholarship awarded by a nonprofit organization 02 to a dual-credit student to defray the cost of a dual-credit course, including the 03 cost of 04 (A) tuition and textbooks; 05 (B) registration, course, and programmatic student fees; 06 (C) on-campus room and board at the postsecondary 07 institution in the state that provides the dual-credit course; 08 (D) transportation costs to and from a residential school 09 approved by the Department of Education and Early Development under 10 AS 14.16.200 or the postsecondary school in the state that provides the 11 dual-credit course; and 12 (E) other related educational and programmatic costs; 13 (6) for constructing, operating, or maintaining a residential 14 housing facility by a residential school approved by the Department of Education 15 and Early Development under AS 14.16.200; and 16 (7) for childhood early learning and development programs and 17 educational support to childhood early learning and development programs 18 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 19 a school district in the state, by the Department of Education and Early 20 Development, or through a state grant. 21 * Sec. 38. AS 43.75.018(f) is amended by adding new paragraphs to read: 22 (3) "dual-credit student" means a secondary level student in the state 23 who simultaneously earns college and high school credit for a course; 24 (4) "nonprofit organization" means a charitable or educational 25 organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) 26 (Internal Revenue Code). 27 * Sec. 39. AS 43.77.045(a) is amended to read: 28 (a) In addition to the credit allowed under AS 43.77.040, a person engaged in 29 a floating fisheries business is allowed a credit against the tax due under this chapter 30 for cash contributions accepted for 31 (1) direct instruction, research, and educational support purposes,

01 including library and museum acquisitions, and contributions to endowment, by an 02 Alaska university foundation, [OR] by a nonprofit, public or private, Alaska two-year 03 or four-year college accredited by a regional accreditation association, or by a public 04 or private nonprofit elementary or secondary school in the state; 05 (2) secondary school level vocational education courses, programs, and 06 facilities by a school district in the state; 07 (3) vocational education courses, programs, and facilities by a state- 08 operated vocational technical education and training school; 09 (4) a facility [OR AN ANNUAL INTERCOLLEGIATE SPORTS 10 TOURNAMENT] by a nonprofit, public or private, Alaska two-year or four-year 11 college accredited by a regional accreditation association or by a public or private 12 nonprofit elementary or secondary school in the state; 13 (5) Alaska Native cultural or heritage programs and educational 14 support, including mentoring and tutoring, provided by a nonprofit agency for public 15 school staff and for students who are in grades kindergarten through 12 in the state; 16 (6) education, research, rehabilitation, and facilities by an institution 17 that is located in the state and that qualifies as a coastal ecosystem learning center 18 under the Coastal America Partnership established by the federal government; [AND] 19 (7) the Alaska higher education investment fund under AS 37.14.750; 20 (8) funding a scholarship awarded by a nonprofit organization to a 21 dual-credit student to defray the cost of a dual-credit course, including the cost of 22 (A) tuition and textbooks; 23 (B) registration, course, and programmatic student fees; 24 (C) on-campus room and board at the postsecondary 25 institution in the state that provides the dual-credit course; 26 (D) transportation costs to and from a residential school 27 approved by the Department of Education and Early Development under 28 AS 14.16.200 or the postsecondary school in the state that provides the 29 dual-credit course; and 30 (E) other related educational and programmatic costs; 31 (9) constructing, operating, or maintaining a residential housing

01 facility by a residential school approved by the Department of Education and 02 Early Development under AS 14.16.200; 03 (10) childhood early learning and development programs and 04 educational support to childhood early learning and development programs 05 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 06 a school district in the state, by the Department of Education and Early 07 Development, or through a state grant; and 08 (11) science, technology, engineering, and math programs 09 provided by a nonprofit agency or a school district for school staff and for 10 students in grades kindergarten through 12 in the state. 11 * Sec. 40. AS 43.77.045(a), as amended by sec. 49, ch. 92, SLA 2010, sec. 14, ch. 7, 12 FSSLA 2011, and sec. 25, ch. 74, SLA 2012, is amended to read: 13 (a) In addition to the credit allowed under AS 43.77.040, a person engaged in 14 a floating fisheries business is allowed a credit against the tax due under this chapter 15 for cash contributions accepted 16 (1) for direct instruction, research, and educational support purposes, 17 including library and museum acquisitions, and contributions to endowment, by an 18 Alaska university foundation, [OR] by a nonprofit, public or private, Alaska two-year 19 or four-year college accredited by a regional accreditation association, or by a public 20 or private nonprofit elementary or secondary school in the state; 21 (2) for secondary school level vocational education courses and 22 programs by a school district in the state; 23 (3) by a state-operated vocational technical education and training 24 school; [AND] 25 (4) for the Alaska higher education investment fund under 26 AS 37.14.750; 27 (5) for funding a scholarship awarded by a nonprofit organization 28 to a dual-credit student to defray the cost of a dual-credit course, including the 29 cost of 30 (A) tuition and textbooks; 31 (B) registration, course, and programmatic student fees;

01 (C) on-campus room and board at the postsecondary 02 institution in the state that provides the dual-credit course; 03 (D) transportation costs to and from a residential school 04 approved by the Department of Education and Early Development under 05 AS 14.16.200 or the postsecondary school in the state that provides the 06 dual-credit course; and 07 (E) other related educational and programmatic costs; 08 (6) for constructing, operating, or maintaining a residential 09 housing facility by a residential school approved by the Department of Education 10 and Early Development under AS 14.16.200; and 11 (7) for childhood early learning and development programs and 12 educational support to childhood early learning and development programs 13 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 14 a school district in the state, by the Department of Education and Early 15 Development. 16 * Sec. 41. AS 43.77.045(f) is amended by adding new paragraphs to read: 17 (3) "dual-credit student" means a secondary level student in the state 18 who simultaneously earns college and high school credit for a course; 19 (4) "nonprofit organization" means a charitable or educational 20 organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) 21 (Internal Revenue Code). 22 * Sec. 42. AS 14.20.147(b) is repealed. 23 * Sec. 43. Section 3, ch. 91, SLA 2010, is repealed. 24 * Sec. 44. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 APPLICABILITY. Sections 23 and 24 of this Act apply to a contract or collective 27 bargaining agreement that becomes legally binding on or after the effective date of secs. 23 28 and 24 of this Act. 29 * Sec. 45. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 TRANSITION: CHARTER SCHOOL APPLICATIONS. Sections 9 and 10 of this

01 Act apply to charter school applications filed with a local school board on or after July 1, 02 2014. 03 * Sec. 46. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 TRANSITION: REGULATIONS. The Department of Education and Early 06 Development, the Department of Labor and Workforce Development, and the Department of 07 Revenue may adopt regulations necessary to implement their respective changes made by this 08 Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 09 before the effective date of the relevant provision of this Act implemented by the regulation. 10 * Sec. 47. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 DEPARTMENT OF ADMINISTRATION SALARY AND BENEFITS PROPOSAL. 13 Not later than January 1, 2016, the Department of Administration shall present to the 14 legislature a written proposal to implement a salary and benefits schedule for school districts 15 as defined under AS 14.30.350. 16 * Sec. 48. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 GRANTS TO SCHOOL DISTRICTS. The Department of Education and Early 19 Development shall distribute a one-time grant in the amount of $30,000,000 as state aid to 20 school districts according to the average daily membership for each district adjusted under 21 AS 14.17.410(b)(1)(A) - (D), as those subparagraphs read on June 29, 2014, for the fiscal year 22 ending June 30, 2015. 23 * Sec. 49. Sections 25 and 46 of this Act take effect immediately under AS 01.10.070(c). 24 * Sec. 50. Sections 2, 21 and 26 - 28 of this Act take effect July 1, 2015. 25 * Sec. 51. Section 22 of this Act takes effect July 1, 2016. 26 * Sec. 52. Sections 31, 34, 37, and 40 of this Act take effect January 1, 2021. 27 * Sec. 53. Except as provided in secs. 49 - 52 of this Act, this Act takes effect July 1, 2014.