Legislature(2015 - 2016)CAPITOL 106

04/10/2015 08:00 AM House EDUCATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 102 RESIDENTIAL PSYCH CTR; EDUC. STDRS/FUNDS TELECONFERENCED
Heard & Held
<Bill Hearing Rescheduled from 4/8/15>
+= HB 156 SCHOOL ACCOUNTABILITY MEASURES; FED. LAW TELECONFERENCED
Scheduled but Not Heard
*+ HB 82 INTERNET SERVICES FUNDING FOR SCHOOLS TELECONFERENCED
Moved CSHB 82(EDC) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 85 STUDENT DATA & ASSESSMENTS TELECONFERENCED
Heard & Held
          HB  82-INTERNET SERVICES FUNDING FOR SCHOOLS                                                                      
                                                                                                                                
8:04:08 AM                                                                                                                    
                                                                                                                                
CHAIR KELLER announced that the  first order of business would be                                                               
HOUSE  BILL NO.  82, "An  Act  relating to  funding for  Internet                                                               
services for schools."                                                                                                          
                                                                                                                                
8:04:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VAZQUEZ moved CSHB  82, Version 29-LS0307\W as the                                                               
working  document.   There  being  no  objection, Version  W  was                                                               
before the committee.                                                                                                           
                                                                                                                                
8:05:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   NEAL    FOSTER,   Alaska    State   Legislature,                                                               
paraphrased  from a  prepared statement,  which  read as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Last  year  when  the legislature  passed  its  omnibus                                                                    
     education bill  a program was  created to  help schools                                                                    
     improve their  internet service.   The main  driver for                                                                    
     the need for increased  internet speed and capacity was                                                                    
     the  implementation of  the  Department of  Education's                                                                    
     online  testing.    With  the  implementation  of  this                                                                    
     program  two   groups  were  created,  those   who  had                                                                    
     10megbits  of service  in 2014  and  those who  didn't.                                                                    
     This  bright  line  poses  a  problem  in  that  school                                                                    
     districts'  internet contracts  don't run  on a  yearly                                                                    
     basis.   They tend  to run  for periods of  3, 4,  or 5                                                                    
     years.   The  Nome  Public Schools  for  example had  a                                                                    
     contract  that expired  in 2013.   While  renewing that                                                                    
     contract  they were  informed  by  the department  that                                                                    
     they would need to  increase their internet capacity in                                                                    
     order to  comply with requirements for  online testing.                                                                    
     The school district did the  right thing and took money                                                                    
     from  other  places  in  their   budget  to  fund  that                                                                    
     requirement.   Because  of the  timing  of that  action                                                                    
     they are not eligible  for the program established last                                                                    
     year.  This bill seeks to correct this problem.                                                                            
                                                                                                                                
8:07:23 AM                                                                                                                    
                                                                                                                                
PAUL  LABOLLE, Staff,  Representative Neal  Foster, Alaska  State                                                               
Legislature, presented  the sectional analysis  on the CS  for HB
82,  stating Section  1, reaches  back  in time  for the  service                                                               
level that  is the  keystone for  qualification for  the program.                                                               
He advised  that when House Bill  278 was passed, the  key driver                                                               
for qualification  for this  internet program was  to be  part of                                                               
the  Federal  E-Rate  Program  and have  less  than  10mgbits  of                                                               
service  as of  the  effective date  of  the bill  in  2014.   He                                                               
reiterated  that HB  82 goes  back in  time to  the qualification                                                               
requiring schools  to be part  of the Federal E-Rate  Program but                                                               
the internet service level had to  be below 10mgbits in 2013, and                                                               
acknowledged that  school district contracts work  through multi-                                                               
year cycles, not single year cycles.   He referred to Sec. 2, and                                                               
advised it  prepares for additional  funding in  the supplemental                                                               
budget allowing  schools to qualify  for funding  if supplemental                                                               
funding is  available.  He  offered that this  irrelevant section                                                               
could  be eliminated  or remain.    He noted  that currently  the                                                               
program is  funded at $3.6  million and is  in both the  House of                                                               
Representative and the Senate side  of the operating budget so it                                                               
is  a   "non-conferenceable"  item.     Implementation   of  this                                                               
legislation, he  explained, will allow  the same amount  of money                                                               
to  be spread  across more  school districts,  and the  amount of                                                               
money it will cost the state won't change.                                                                                      
                                                                                                                                
8:10:01 AM                                                                                                                    
                                                                                                                                
CHAIR KELLER clarified that if  Section 2 remains and generates a                                                               
fiscal note,  the Finance  Committee would  be involved,  or this                                                               
committee could  calculate a  zero fiscal  note or  determine the                                                               
section is not  necessary and the bill could go  to the floor and                                                               
be a factor in the end game.                                                                                                    
                                                                                                                                
MR. LABOLLE  responded that  "maybe" Chair  Keller is  correct as                                                               
the bill  has a  Finance Committee  referral, but  if there  is a                                                               
zero  fiscal note  it  is possible  the  House Finance  Committee                                                               
would waive that referral.                                                                                                      
                                                                                                                                
8:11:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked how many schools would be affected.                                                                 
                                                                                                                                
MR. LABOLLE  deferred to  the Department  of Education  and Early                                                               
Development (EED),  but opined the number  is approximately seven                                                               
school districts.                                                                                                               
                                                                                                                                
8:11:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND  stated that  she  is  confused by  this                                                               
chart as it shows an approximate  $6.2 million cost to upgrade to                                                               
10megabits per second, and the  FY2015 total award to each school                                                               
district is  just under $5  million.   She asked whether  that is                                                               
the annual cost of this program.                                                                                                
                                                                                                                                
MR. LABOLLE  answered that last  year, with the passage  of House                                                               
Bill 278, $5 million was appropriated  to the program and that is                                                               
the amount awarded to the schools.   He noted it has been reduced                                                               
in this year's budget to $3.6  million, which is the amount to be                                                               
distributed to the participating school districts.                                                                              
                                                                                                                                
8:12:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DRUMMOND commented that  hopefully it will come up                                                               
in conference  committee as  Broadband is one  of the  topics for                                                               
conversation.                                                                                                                   
                                                                                                                                
MR. LABOLLE  advised that both  the House of  Representatives and                                                               
the Senate passed $3.6 million in  the Broadband grant so it is a                                                               
"non-conferenceable" item.                                                                                                      
                                                                                                                                
REPRESENTATIVE  DRUMMOND responded  "That is  unfortunate."   She                                                               
advised she  has traveled  to Nome on  several occasions  and has                                                               
been disturbed  by the lack  of adequate internet access  for the                                                               
public  schools.   She opined  it  is critical  with testing  and                                                               
curriculum  only  available  via  Broadband to  provide  this  to                                                               
schools and stated she is completely in support of this bill.                                                                   
                                                                                                                                
8:13:41 AM                                                                                                                    
                                                                                                                                
LINDA  THIBODEAU, Director,  Division  of  Libraries, Archives  &                                                               
Museums, Department  of Education and Early  Development, advised                                                               
that  the division  distributed the  funding this  current fiscal                                                               
year.                                                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON  asked Ms. Thibodeau to  explain the charge                                                               
and how  much reduction,  or additional  schools would  be added,                                                               
and  what  proportional reduction  among  those  would receive  a                                                               
portion of the $3.69 million.                                                                                                   
                                                                                                                                
MS. THIBODEAU responded that if  the supplemental funding was not                                                               
included,  the  fiscal note  would  change.   She  was  uncertain                                                               
whether   Representative   Seaton    was   asking   whether   the                                                               
supplemental funding is necessary.                                                                                              
                                                                                                                                
REPRESENTATIVE SEATON  clarified that  she should assume  Sec. 2,                                                               
of the bill  is deleted.  He  said he is referring  to Section 1,                                                               
and  the  $3.6  million  distribution  among  districts  for  the                                                               
discounted  E-Rate,  and asked  how  many  more school  districts                                                               
would there  be, and how  much of  prorated discount would  be to                                                               
the other districts  that are receiving funds  under the program.                                                               
He offered  that he may be  confused on the application  of this,                                                               
and to correct him.                                                                                                             
                                                                                                                                
MS. THIBODEAU  replied that  EED did  not collect  information on                                                               
how  many districts,  or  how  many extra  schools  ... how  many                                                               
schools  in  FY2014  would  want  this  internet,  or  need  this                                                               
internet  upgrade  because  it collected  the  amount  they  were                                                               
paying  and   not  bandwidth  information.     She   advised  the                                                               
department did not have the  information as to who needed upgrade                                                               
bandwidth  until it  received the  applications  for this  year's                                                               
funding.   At that  point, she  explained, what  is shown  in the                                                               
chart  for the  funding  is  who applied  and  qualified for  the                                                               
program which was 28 districts,  122 schools.  She mentioned that                                                               
Representative  Foster advised  that seven  more districts  might                                                               
qualify, but the department would have  to wait and see when that                                                               
happens.   The department  doesn't know  how many  districts have                                                               
applied  or schools,  what their  costs would  be, what  level of                                                               
bandwidth they  would need  to upgrade  to get  to 10,  who their                                                               
vendor is, and  what their fiber is or their  mode of delivery of                                                               
interest  because   bandwidth  costs  are  different   for  every                                                               
location.    She  said  that  during  the  application  time  the                                                               
department  would  have  to  collect and  perform  the  pro  rata                                                               
distribution with the funding available.                                                                                        
                                                                                                                                
8:17:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  opined  that  the  seven  districts  have                                                               
already upgraded to 10, but were  looking at moving back the date                                                               
so they can qualify for the discounted program.                                                                                 
                                                                                                                                
MS. THIBODEAU answered that is her understanding as well.                                                                       
                                                                                                                                
REPRESENTATIVE  SEATON  offered that  it  is  unknown within  the                                                               
seven  districts how  many schools  it includes  and it  won't be                                                               
known until the distribution is made.                                                                                           
                                                                                                                                
MS. THIBODEAU said "That is correct."   The numbers in the fiscal                                                               
note relate  only to the  schools and school  districts currently                                                               
in the program.                                                                                                                 
                                                                                                                                
8:19:00 AM                                                                                                                    
                                                                                                                                
CHAIR  KELLER  referred  to  the  department's  fiscal  note  Ms.                                                               
Thibodeau  provided of  $4,064,000 is  the total  cost, of  which                                                               
$3.[6]  has   been  allocated  as   it  stands  right   now,  and                                                               
acknowledged it hasn't passed.                                                                                                  
                                                                                                                                
MS. THIBODEAU agreed.                                                                                                           
                                                                                                                                
8:19:48 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:19 to 8:20 a.m.                                                                            
                                                                                                                                
8:20:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND reviewed  the fiscal  note and  said the                                                               
costs are just  over $4 million and the proposal  is to reduce it                                                               
to  $3.6  million.    She  asked  whether  each  school  will  be                                                               
proportionately reduced depending upon the available funds.                                                                     
                                                                                                                                
MS. THIBODEAU responded that the  districts may or may not decide                                                               
to reduce their  bandwidth, and what they'll get  is a percentage                                                               
of the  costs they  applied for,  approximately 75-80  percent of                                                               
their costs.  She indicated they  could find the remainder of the                                                               
costs somewhere else in their budget.                                                                                           
                                                                                                                                
CHAIR KELLER opened public testimony.                                                                                           
                                                                                                                                
8: 21:53 AM                                                                                                                   
                                                                                                                                
ROBIN JOHNSON,  Nome Public Schools,  stated she  is representing                                                               
Nome Public  Schools, and paraphrased from  a prepared statement,                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     In 2013 Nome  Public Schools was in  a contract renewal                                                                    
     year for  our internet services.   In order  to acquire                                                                    
     E-Rate  funding for  our services  we are  tied to  the                                                                    
     contract  renewal timelines  set  forth by  the E  Rate                                                                    
     program.   At  this time  EED  had made  it clear  that                                                                    
     State  online testing  would be  a  reality during  our                                                                    
     next year internet  contract cycle, and we  knew we did                                                                    
     not have  the bandwidth we  would need to meet  be able                                                                    
     to test one  at this time.  We  increased our bandwidth                                                                    
     from 3Mbps  to 11Mbps in  2013, in anticipation  of the                                                                    
     new testing requirements.   This increase required that                                                                    
     an additional 76K  come from our general  fund to cover                                                                    
     just 20%  of our annual  internet expense.  I  ask that                                                                    
     you pass HB 82, making  the program retroactive to June                                                                    
     30,  2013   so  that   we  receive  the   same  funding                                                                    
     opportunities  as  other  districts in  our  situation.                                                                    
     When  speaking about  broadband we  should not  be left                                                                    
     out because  of our contract  renewal dates and  the E-                                                                    
     Rate application timeline.                                                                                                 
                                                                                                                                
8:23:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  how many  schools are  in the  Nome                                                               
school district.                                                                                                                
                                                                                                                                
MS.  JOHNSON replied  there  are four  schools  in the  district,                                                               
which are all based upon one internet connection.                                                                               
                                                                                                                                
8:24:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VAZQUEZ asked  the amount  of their  total school                                                               
budget.                                                                                                                         
                                                                                                                                
MS. JOHNSON said  she is a technology  representative and doesn't                                                               
have that information.                                                                                                          
                                                                                                                                
REPRESENTATIVE  VAZQUEZ   surmised  that  within   Ms.  Johnson's                                                               
division  there is  a  budget, or  does she  not  know about  the                                                               
budget.                                                                                                                         
                                                                                                                                
MS.  JOHNSON  responded  she  has a  budget  for  the  technology                                                               
department  and the  internet services  are under  Communication.                                                               
She  advised the  total internet  amount the  vendor receives  is                                                               
$381,000  for the  annual internet  service, with  public schools                                                               
paying 20  percent of  that bill, and  the E-Rate  program paying                                                               
the remainder.                                                                                                                  
                                                                                                                                
MS.  JOHNSON, in  response  to  Representative Vazquez,  answered                                                               
that GCI is their internet provider.                                                                                            
                                                                                                                                
REPRESENTATIVE VAZQUEZ  surmised that the schools  pay 20 percent                                                               
and the rest is paid through the E-Rate.                                                                                        
                                                                                                                                
MS. JOHNSON  said she was  correct, and  it is for  the 2014-2015                                                               
school year.   Next year  their E-Rate eligibility  has increased                                                               
and  they will  be  refunded  85 percent  making  their costs  15                                                               
percent, she explained.                                                                                                         
                                                                                                                                
REPRESENTATIVE VAZQUEZ  queried what  the increase  is attributed                                                               
to.                                                                                                                             
                                                                                                                                
MS. JOHNSON responded  that the percentage they  are eligible for                                                               
is based  upon the (indisc.)  reduced lunch count of  students in                                                               
the district, so it changes every year.                                                                                         
                                                                                                                                
8:26:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND  asked the  source  of  the GCI  signal,                                                               
satellite or microwave from Southcentral Alaska.                                                                                
                                                                                                                                
MS.  JOHSON  replied  that  it  is  microwave  from  Southcentral                                                               
Alaska.                                                                                                                         
                                                                                                                                
REPRESENTATIVE DRUMMOND  recalled a fiber networks  coming out of                                                               
Ireland across  the top of  Canada and the United  States heading                                                               
for Japan.   She opined they were going to  drop internet service                                                               
on the  Northern and Northwest  coast of  Alaska.  She  asked Ms.                                                               
Johnson whether  she was aware of  its existence and how  soon it                                                               
will arrive in the Nome area.                                                                                                   
                                                                                                                                
MS.  JOHNSON  responded that  she  is  aware of  the  Quintillion                                                               
Network and opined there are  "rumblings" that it will not happen                                                               
at this  point due to the  expense of bringing that  hub into the                                                               
community.  She remarked that if it  were to happen it would be a                                                               
year or two out before it would take place.                                                                                     
                                                                                                                                
8:28:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COLVER clarified  that  the terrace  system is  a                                                               
fiber optic system  across the tundra and when it  gets closer to                                                               
the coast it  is relayed microwave tower to  microwave tower, and                                                               
is  being extended  all  through the  North and  past  Nome.   He                                                               
explained the  microwave speed is almost  as fast as fiber  but a                                                               
more economical  system.  He  said the  "over the top  route" ...                                                               
would have cheaper internet because it  would be going to a place                                                               
such as  Japan, but he  did not  know whether it  was capitalized                                                               
for the over the top portion.                                                                                                   
                                                                                                                                
8:28:55 AM                                                                                                                    
                                                                                                                                
POSIE   BOGGS,  Non-Profit   Literacy  Programs,   said  she   is                                                               
testifying  on  behalf  of  Literate  Nation,  Alaska  Coalition,                                                               
Alaska   Branch  of   the  International   Dyslexia  Association,                                                               
Decoding  Dyslexia,  and  herself.   She  referred  to  the  fact                                                               
Alaska's  literacy  rates  have  not moved  significantly  in  10                                                               
years, that Alaska is last  in reading, and related that literacy                                                               
is a  concern.  She advised  she has been tracking  technology in                                                               
literacy  since 1994,  when children  were being  "tortured" with                                                               
the  first version  of  "Dragon Naturally  Speaking  7."   During                                                               
conferences she  has attended, technology solutions  have emerged                                                               
to assist  the literacy  problems in Alaska.   She  conveyed that                                                               
her  business has  been teaching  students that  school districts                                                               
have  failed to  teach  to read,  and  she could  be  put out  of                                                               
business  with  the  new  technology, and  is  "thrilled."    She                                                               
explained that  the new technology  offers the potential  to move                                                               
Alaska's  reading levels  significantly higher,  but it  requires                                                               
good  solid broadband.   There  are virtual  reading coaches  and                                                               
internet based interventions,  that Alaska could put  into all of                                                               
the  resource  classes  and  move the  students  out  of  special                                                               
education.   She  described it  as the  best scientific  research                                                               
regarding reading instruction Alaska has  ever had, and noted she                                                               
is not selling  any of the products.  She  asked the committee to                                                               
fund as  much broadband as  possible because adult  illiteracy in                                                               
Alaska increases the per capita health care costs by $8,173.                                                                    
                                                                                                                                
REPRESENTATIVE DRUMMOND  noted Ms. Boggs excitement  and believes                                                               
she has the packet of information she gave her in February.                                                                     
                                                                                                                                
MS. BOGGS answered in the  affirmative and noted that every child                                                               
in this state can be taught to read.                                                                                            
                                                                                                                                
REPRESENTATIVE DRUMMOND said she would  share the packet with the                                                               
committee.                                                                                                                      
                                                                                                                                
8:34:35 AM                                                                                                                    
                                                                                                                                
CHAIR KELLER closed public testimony.                                                                                           
                                                                                                                                
8:34:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  described the discussion as  the financial                                                               
distribution of  an offset  amount and opined  it is  a financial                                                               
question that  is looking  at a  distribution between  those that                                                               
qualify and  how many qualify.   The distribution rate may  be in                                                               
question, due  to the e-rate  discount, and the preparation  of a                                                               
chart may be helpful information  for the committee.  However, he                                                               
said, it is a financial  distribution question and stated support                                                               
for the bill.                                                                                                                   
                                                                                                                                
8:36:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VAZQUEZ  expressed hesitancy to support  the bill,                                                               
lacking  clarity for  how  the  funding is  working  and why  the                                                               
school district  has a  fiscal note of  slightly over  $4 million                                                               
for this fiscal year, which continues to 2020.                                                                                  
                                                                                                                                
MR.  LABOLLE responded  that he  had detailed  conversations with                                                               
the  Department of  Education and  Early Development  (EED) about                                                               
the  fiscal notes,  and advised  that the  fiscal note  isn't the                                                               
cost to the state as it is the  total need.  He explained that if                                                               
the legislature were to fully fund  the program and need, this is                                                               
the cost  anticipated.  He  noted a  grant funds the  program and                                                               
that grant program is the  $3.6 million mention earlier, which is                                                               
what  is funded  in  the  FY2016 budget.    He  stated that  $3.6                                                               
million is going out to  the program regardless of implementation                                                               
of CSHB 82.                                                                                                                     
                                                                                                                                
REPRESENTATIVE VAZQUEZ  asked whether  it is  a state  or federal                                                               
grant.                                                                                                                          
                                                                                                                                
MR. LABOLLE replied that the $3.6  million is a state grant, with                                                               
a  Federal E-rate  Internet  program involved,  and  in order  to                                                               
participate  in  this  state  program a  participant  must  be  a                                                               
qualified recipient of the E-rate program.                                                                                      
                                                                                                                                
8:38:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VAZQUEZ  requested  the name  of  the  department                                                               
administering the state grant.                                                                                                  
                                                                                                                                
MR.  LABOLLE  answered  the Department  of  Education  and  Early                                                               
Development.                                                                                                                    
                                                                                                                                
8:39:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TALERICO thanked  the  sponsor  for bringing  the                                                               
bill as it is "really" appropriate, he said.                                                                                    
                                                                                                                                
CHAIR KELLER remarked that he  agrees with Representative Vazquez                                                               
but  is willing  to  move  the bill  and  let  the House  Finance                                                               
Committee review the bill.                                                                                                      
                                                                                                                                
8:39:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VAZQUEZ moved to report  CS for HB 82, labeled 29-                                                               
LS0307\W,  Glover,  4/9/15,  out  of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no  objection,  CSHB  82(EDC)  moved  from  the  House  Education                                                               
Standing Committee.                                                                                                             
                                                                                                                                
REPRESENTATIVE COLVER  echoed Chair Keller's comments  to let the                                                               
House Finance Committee determine  allocation of funds and future                                                               
liabilities.                                                                                                                    
                                                                                                                                
8:41:01 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:41 p.m. to 8:44 a.m.                                                                       
                                                                                                                                
8:44:48 AM                                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects
CSHB82 Work Draft LS0307 W.pdf HEDC 4/10/2015 8:00:00 AM
HB 82
HB82 Version A.pdf HEDC 4/10/2015 8:00:00 AM
HB 82
HB82 Sponsor Statement.pdf HEDC 4/10/2015 8:00:00 AM
HB 82
HB82 FiscalNote.pdf HEDC 4/10/2015 8:00:00 AM
HB 82
HB82 Supporting Documents Nome Public Schools Testimony.pdf HEDC 4/10/2015 8:00:00 AM
HB 82
HB82 Supporting Documents (70-30 list).pdf HEDC 4/10/2015 8:00:00 AM
HB 82
HB82 Supporting Documents e-rate schools.PDF HEDC 4/10/2015 8:00:00 AM
HB 82
CSHB102 draft version P.pdf HEDC 4/10/2015 8:00:00 AM
HEDC 4/13/2015 8:00:00 AM
HB 102
HB102.pdf HEDC 4/10/2015 8:00:00 AM
HEDC 4/13/2015 8:00:00 AM
HB 102
HB102 Support Mike Lyons.pdf HEDC 4/10/2015 8:00:00 AM
HB 102
CSHB85 Version F.pdf HEDC 4/10/2015 8:00:00 AM
HB 85