Legislature(2013 - 2014)CAPITOL 106

03/10/2014 03:00 PM EDUCATION


Download Mp3. <- Right click and save file as

Audio Topic
03:20:19 PM Start
05:14:58 PM HB278
07:37:19 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Continued at 5:15 p.m. Today --
+= HB 278 EDUCATION: FUNDING/TAX CREDITS/PROGRAMS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
         HB 278-EDUCATION: FUNDING/TAX CREDITS/PROGRAMS                                                                     
                                                                                                                                
5:15:47 PM                                                                                                                    
                                                                                                                                
CHAIR GATTIS announced  that the only order of  business would be                                                               
HOUSE  BILL  NO.  278,  "An   Act  increasing  the  base  student                                                               
allocation  used  in the  formula  for  state funding  of  public                                                               
education;   repealing    the   secondary    student   competency                                                               
examination  and related  requirements; relating  to high  school                                                               
course credit  earned through assessment;  relating to  a college                                                               
and career readiness assessment  for secondary students; relating                                                               
to  charter  school  application  appeals  and  program  budgets;                                                               
relating  to  residential  school  applications;  increasing  the                                                               
stipend  for  boarding  school students;  extending  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 education tax  credits; making conforming amendments;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
CHAIR  GATTIS  noted that  before  the  committee was  CSHB  278,                                                               
Version U.                                                                                                                      
                                                                                                                                
5:19:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD   moved   Amendment  1,   labeled   28-                                                               
GH2716\U.1, Mischel,  3/10/14 [text provided  at the end  of this                                                               
document].                                                                                                                      
                                                                                                                                
CHAIR GATTIS objected for discussion.   She directed attention to                                                               
Version  U  page 1,  line  5,  and  summarized that  Amendment  1                                                               
provides a  coordinated transportation effort by  allowing public                                                               
school  buses to  transport charter  school  children, where  and                                                               
when  possible.   The  expectation is  for  school districts  and                                                               
charter schools  to collaborate and  join in a good  faith effort                                                               
to    maximize   existing    bus   routes    and   transportation                                                               
opportunities, which is  already the practice in  the majority of                                                               
districts.  She said the  "teeth" associated with the requirement                                                               
will  be  the  direction  given  to  the  transportation  dollars                                                               
generated  by  each student  under  the  foundation formula,  and                                                               
whether the allocation is granted  to the district or the charter                                                               
school.                                                                                                                         
                                                                                                                                
5:21:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  stated support  for Amendment 1,  and said                                                               
it addresses her concerns.                                                                                                      
                                                                                                                                
REPRESENTATIVE  SEATON stated  support for  the Amendment  1, and                                                               
said it supplants an amendment he was sponsoring.                                                                               
                                                                                                                                
CHAIR  GATTIS   removed  her   objection  and,   without  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
5:24:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD   moved   Amendment  2,   labeled   28-                                                               
GH2716\U.2, Mischel,  3/10/14 [text provided  at the end  of this                                                               
document].                                                                                                                      
                                                                                                                                
CHAIR GATTIS objected for discussion                                                                                            
                                                                                                                                
5:25:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX said Amendment 2  places a time limit for a                                                               
school  district to  accept  or  deny an  application  made by  a                                                               
charter  school, and  said 60  days  is proposed  to represent  a                                                               
reasonable length of time.                                                                                                      
                                                                                                                                
5:25:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO III  questioned  the impact  to some  school                                                               
districts  based on  the  working schedule  of  the local  school                                                               
boards; the  review panel.   He conjectured  that 60 days  may be                                                               
restrictive.                                                                                                                    
                                                                                                                                
5:26:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  agreed,   and  pointed   out  that   the                                                               
application  process may  not  align with  the  meeting times  of                                                               
school boards; however, he said  he could not offer the mechanics                                                               
that might need to be considered.                                                                                               
                                                                                                                                
5:28:07 PM                                                                                                                    
                                                                                                                                
SUSAN   MCCAULEY,  Director,   Teaching  and   Learning  Support,                                                               
Department  of Education  and  Early  Development (EED),  advised                                                               
that  districts could  establish regulations  to govern  internal                                                               
expectations,  rather than  adopting  a  requirement in  statute.                                                               
She opined that Amendment 2  stipulates that the school board has                                                               
60 days,  from the date  the application  is received, to  make a                                                               
decision.     School  boards  are   currently  able   to  specify                                                               
application  submission deadlines  to ensure  workability of  the                                                               
process  and Amendment  2 does  not inhibit  the continuation  of                                                               
such internal management practices, she said.                                                                                   
                                                                                                                                
5:30:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX, as  sponsor,  said that  an amendment  to                                                               
amend the proposed 60 days would be acceptable.                                                                                 
                                                                                                                                
MS.  MCCAULEY deferred  speaking  to the  needs  of local  school                                                               
boards   and  district   administrations;   however,  placing   a                                                               
statutory timeline will not preclude  the districts from creating                                                               
internal deadline structures to ensure compliance.                                                                              
                                                                                                                                
5:31:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  noted that  it is  important to  allow                                                               
appropriate  time  for  a  charter school  to  work  through  the                                                               
appeals process, if necessary, and  stated support for the 60 day                                                               
limit.                                                                                                                          
                                                                                                                                
5:32:08 PM                                                                                                                    
                                                                                                                                
CHAIR GATTIS  suggested that a  district and school  board, would                                                               
have  knowledge,  prior to  receipt  of  an application,  that  a                                                               
charter school was  undertaking the steps to open  its doors, and                                                               
agreed that 60  days would be an appropriate time  limit; 90 days                                                               
would also be acceptable.                                                                                                       
                                                                                                                                
5:32:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON requested assurance  that the 60 days would                                                               
represent an adequate length of  time, given the internal process                                                               
that  a  district would  place  into  regulation, and  allow  for                                                               
action to be handled in a timely manner.                                                                                        
                                                                                                                                
MS. MCCAULEY  assured that determination of  an application could                                                               
occur within the 60 days restriction, as proposed.                                                                              
                                                                                                                                
REPRESENTATIVE SEATON  queried whether the internal  policies and                                                               
regulations  would be  able to  stipulate  when applications  are                                                               
due,  in  order to  align  with  the  variables of  review  board                                                               
meeting schedules.                                                                                                              
                                                                                                                                
MS.  MCCAULEY  opined  that  no  existing  statute,  or  proposed                                                               
language,  restricts  such  action,  and said  it  is  already  a                                                               
practice of districts to impose these types of deadlines.                                                                       
                                                                                                                                
REPRESENTATIVE SEATON stated support for the Amendment 2.                                                                       
                                                                                                                                
5:35:10 PM                                                                                                                    
                                                                                                                                
CHAIR  GATTIS   removed  her   objection  and,   without  further                                                               
objection, Amendment 2 was adopted.                                                                                             
                                                                                                                                
5:35:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD   moved   Amendment  3,   labeled   28-                                                               
GH2716\U.3, Mischel,  3/10/14 [text provided  at the end  of this                                                               
document].                                                                                                                      
                                                                                                                                
CHAIR GATTIS objected for discussion                                                                                            
                                                                                                                                
5:36:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER explained  Amendment  3,  which seeks  to                                                               
capture   information  on   students   of  active-duty   military                                                               
families.   It  requires the  Department of  Education and  Early                                                               
Development  (EED)  to  solicit  and retain  information  on  the                                                               
numbers, attendance, and performance  of students enrolled in the                                                               
state whose  parents are  serving on active-duty  as part  of the                                                               
U.S.  Armed  Forces, U.S.  Coast  Guard,  Alaska National  Guard,                                                               
Alaska Naval Militia, and the  Alaska State Defense Force.  State                                                               
law  already requires  an  annual report  on  school and  student                                                               
performance  including  accreditation, achievement  test  scores,                                                               
retention,  dropouts, graduation  rates,  and enrollment  changes                                                               
due to  transfers; however the  department does  not specifically                                                               
count or track military students.   Approximately 37,000 military                                                               
dependents live  in Alaska, which,  he maintained,  represents an                                                               
important  subgroup.     Further,  he  cited   the  benefits  for                                                               
collecting this  data as being  helpful for a number  of reasons,                                                               
and  paraphrased  from  a  list   which  included  the  following                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Help local  school districts see  how well they  do for                                                                    
     military students.                                                                                                         
                                                                                                                                
     Help  local school  districts design  programs to  help                                                                    
     address special challenges of military students                                                                            
                                                                                                                                
     Improve the count of military  students for purposes of                                                                    
     [payments  in  lieu  of   taxes]  (PILT),  and  thereby                                                                    
     increase  federal   flow  of  funds  to   local  school                                                                    
     districts                                                                                                                  
                                                                                                                                
     Provide guidance to incoming  Alaskans as they consider                                                                    
     where they want their children to attend school                                                                            
                                                                                                                                
     Help  the [U.S.  Department of  Defense] (DOD)  develop                                                                    
     policies to  prioritize their  programs and  funding --                                                                    
     and  identify and  provide  necessary  resources --  to                                                                    
     help  military  families   achieve  better  educational                                                                    
     outcomes.                                                                                                                  
                                                                                                                                
5:37:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  questioned  the removal  of the  "and"                                                               
from Version U page 4, line 30, as proposed in Amendment 3.                                                                     
                                                                                                                                
The committee took an at-ease at 5:39 p.m.                                                                                      
                                                                                                                                
5:40:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER offered  that, for  sequential order  and                                                               
drafting  purposes, the  conjunctive "and"  serves to  insert the                                                               
substantive language of Amendment 3.                                                                                            
                                                                                                                                
5:42:50 PM                                                                                                                    
                                                                                                                                
CHAIR GATTIS asked  for comment from Department  of Education and                                                               
Early Development  and whether  there is  an associated  cost for                                                               
implementing this requirement.                                                                                                  
                                                                                                                                
5:43:36 PM                                                                                                                    
                                                                                                                                
LES  MORSE,  Deputy  Commissioner, Office  of  the  Commissioner,                                                               
Department  of Education  and Early  Development (EED),  reported                                                               
that  costs  are anticipated  but  a  fiscal  note has  not  been                                                               
determined  specific   to  Amendment   3.    The   collection  of                                                               
additional reporting  elements to ascertain  military involvement                                                               
would need  to be established; however,  many districts currently                                                               
collect the information.   The department would  require a fiscal                                                               
note  to  change the  reporting  system.   Information  regarding                                                               
attendance  and  performance is  collected  on  all students  but                                                               
lacks  any reference  to military  status.   On request  of Chair                                                               
Gattis, Mr.  Morse provided that under  similar legislation being                                                               
considered this session,  the first year fiscal  note is $80,000,                                                               
for data system adjustments, and $10,000 in succeeding years.                                                                   
                                                                                                                                
5:46:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  asked  whether  the  department  has  the                                                               
ability  to  distinguish the  children  whose  parents serve  the                                                               
Alaska Defense Force, or other military affiliation.                                                                            
                                                                                                                                
MR. MORSE responded  that the data is not collected  at the state                                                               
level and deferred comment regarding district information.                                                                      
                                                                                                                                
REPRESENTATIVE SEATON  expressed concern for reporting  on all of                                                               
the categories,  stating that  it may  not be  information easily                                                               
obtained for the various branches of the armed services.                                                                        
                                                                                                                                
5:47:34 PM                                                                                                                    
                                                                                                                                
CHAIR GATTIS inquired about the impetus for Amendment 3.                                                                        
                                                                                                                                
REPRESENTATIVE SADDLER  answered that the source  of interest for                                                               
this stems  from his participation  on the Military  and Veterans                                                               
Affairs Task  Force, as a  member of the [National  Conference of                                                               
State  Legislatures] (NCSL).   The  task force  has identified  a                                                               
suggested suite  of legislative  initiatives to  support military                                                               
families,  and  one of  the  goals  is  to make  Alaska  military                                                               
friendly.   Members of  the military may  consider Alaska  a more                                                               
desirable  post if  educational information  was available.   The                                                               
U.S. government  does a  good job of  tracking all  personnel, he                                                               
pointed out, and  the information of who is  stationed in Alaska,                                                               
along   with  dependents,   certainly   resides  within   federal                                                               
agencies.  He  suggested that accessing the  information could be                                                               
a  matter  of  identifying  connections to  link  the  state  and                                                               
federal computers.                                                                                                              
                                                                                                                                
5:48:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked whether  the intention is to maintain                                                               
the  information for  internal  departmental use  or  to make  it                                                               
available to the public.                                                                                                        
                                                                                                                                
REPRESENTATIVE SADDLER responded that  the department is required                                                               
to make an annual public  report regarding performance by school,                                                               
and  this measure  would  add  an additional  line  to parse  the                                                               
military aspect.   Additionally, he pointed out that  Alaska is a                                                               
signatory  to the  Interstate Compact  on  Education of  Military                                                               
Children;   having   better   information  on   the   educational                                                               
performance of  military children  in Alaskan schools  could only                                                               
enhance compact membership.                                                                                                     
                                                                                                                                
5:50:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO  III questioned how the  information would be                                                               
collected:  directly by the department or through each district.                                                                
                                                                                                                                
MR.  MORSE  indicated  that   currently  student/school  data  is                                                               
collected by the districts and  delivered to the department.  The                                                               
department  views data  as being  owned and  cared for  by school                                                               
districts.   The department  is considered  an auditor,  or third                                                               
party monitor.                                                                                                                  
                                                                                                                                
5:50:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  stressed  that local  districts  already                                                               
make  an  effort to  collect  military  information, for  on-base                                                               
residency,  because   of  the  PILT   allotment  from   the  U.S.                                                               
Department   of  Defense   (DOD).     He  conjectured   that  the                                                               
information  could produce  enough of  an advantage,  due to  the                                                               
PILT, to create an equal offset to the fiscal note.                                                                             
                                                                                                                                
5:51:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  interjected  that  every teacher  will                                                               
know the situation of every  class parent, and stated support for                                                               
Amendment 3.                                                                                                                    
                                                                                                                                
5:52:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  said there  is national support  for this                                                               
legislation, as  indicated through  the NCSL.   Further,  it will                                                               
support  other  national   organizations  involved  in  assisting                                                               
military  families, and  will prove  a  benefit to  the DOD  when                                                               
making policy and funding adjustments.                                                                                          
                                                                                                                                
5:52:52 PM                                                                                                                    
                                                                                                                                
CHAIR  GATTIS  maintained  her  objection  to  Amendment  3,  and                                                               
expressed concern for the funding requirements.                                                                                 
                                                                                                                                
5:53:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  commented that  the military  students                                                               
move  around/between states,  and the  information could  be very                                                               
helpful  in ensuring  that  student  needs are  being  met.   She                                                               
opined that this  type of data could prove valuable  in a variety                                                               
of ways, and stated support for Amendment 3.                                                                                    
                                                                                                                                
5:54:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  stated concern  that including  the Alaska                                                               
State Defense  Force, which, unlike  the other  military branches                                                               
does not have federal standing, may prove problematic.                                                                          
                                                                                                                                
CHAIR GATTIS agreed.                                                                                                            
                                                                                                                                
5:54:54 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  LeDoux, Saddler,                                                               
Reinbold,  and  P.   Wilson  voted  in  favor   of  Amendment  3.                                                               
Representatives Seaton,  Kito III  (Alternate), and  Gattis voted                                                               
against it.   Therefore, Amendment 3 was adopted on  a vote of 4-                                                               
3.                                                                                                                              
                                                                                                                                
5:56:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD   moved   Amendment  4,   labeled   28-                                                               
GH2716\U.4, Mischel,  3/10/14 [text provided  at the end  of this                                                               
document].                                                                                                                      
                                                                                                                                
CHAIR GATTIS objected for discussion.                                                                                           
                                                                                                                                
5:56:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO  III said Amendment  4 addresses denial  of a                                                               
charter school application and allows  for an appeal at the state                                                               
level.   If the state overturns  the local school board  it would                                                               
mean  the charter  school could  be  opened and  operated by  the                                                               
state separate from the local district and school board.                                                                        
                                                                                                                                
5:57:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON  clarified that the result  could be the                                                               
State School  Board overseeing a  charter school, similar  to the                                                               
administration of Mt. Edgecombe.                                                                                                
                                                                                                                                
REPRESENTATIVE KITO  III replied yes, and  reminded the committee                                                               
that Mt. Edgecombe  is a residential boarding  school operated by                                                               
the state.                                                                                                                      
                                                                                                                                
REPRESENTATIVE P. WILSON  opined that the State  School Board may                                                               
be reluctant to take up the administration of charter schools.                                                                  
                                                                                                                                
5:58:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   said  having  the  State   School  Board                                                               
authorize  and  operate  a  charter   school  that  represents  a                                                               
philosophical  alternative  to  the   local  school  district  is                                                               
entirely appropriate.   It would be inappropriate,  he opined, to                                                               
direct  the  local  district  to  manage a  school  that  it  has                                                               
initially denied and he stated support for Amendment 4.                                                                         
                                                                                                                                
5:59:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  agreed with the previous  member's opinion                                                               
regarding  the appropriateness  of administration,  but expressed                                                               
concern for  unintended consequences  that could  arise regarding                                                               
transportation funding.                                                                                                         
                                                                                                                                
6:01:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  interjected  that  the [average  daily                                                               
membership] (ADM) funding could represent  a loss to the district                                                               
and, thus, be the major concern of the local school board.                                                                      
                                                                                                                                
6:02:03 PM                                                                                                                    
                                                                                                                                
MIKE   HANLEY,   Commissioner,   Office  of   the   Commissioner,                                                               
Department  of Education  and Early  Development (EED),  reminded                                                               
the committee that  this issue has been  discussed before, during                                                               
the hearings regarding multiple  authorizers for charter schools.                                                               
A state authorized charter school  would become its own district,                                                               
much  like Mt.  Edgecombe, and  the budget  for the  school would                                                               
become part of the EED budget.   Statutory concerns would need to                                                               
be considered as currently the  State Board of Education does not                                                               
have  purview over  charter  schools.   Further,  he agreed  with                                                               
Representative  Wilson's  opinion  regarding   the  ADM,  as  the                                                               
charter  school  would  be  its   own  district  and  have  total                                                               
autonomy.                                                                                                                       
                                                                                                                                
6:03:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON asked how  the funding is distributed to                                                               
the residential schools, such as Mt. Edgecombe.                                                                                 
                                                                                                                                
COMMISSIONER HANLEY responded that  the [base student allocation]                                                               
(BSA)  is  paid  directly  to the  residential  school,  not  the                                                               
district.                                                                                                                       
                                                                                                                                
6:03:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  offered  support   for  the  intent  of                                                               
Amendment 4.                                                                                                                    
                                                                                                                                
6:04:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO  III said Amendment  4 creates  an authorizer                                                               
that is  not the local school  board; however, in the  event that                                                               
an appeal  results in  the charter  school being  authorized, the                                                               
district could decide to assume operation of the facility.                                                                      
                                                                                                                                
CHAIR GATTIS  recalled that in  previous committee  discussion it                                                               
was  deemed  that  a  hostile   environment  might  arise  if  an                                                               
application were  overturned on appeal  to the state level  and a                                                               
district forced to assume the responsibility.                                                                                   
                                                                                                                                
6:05:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER said a reversal  on the state level should                                                               
not   be  considered   an   unsurmountable   obstacle,  and   the                                                               
requirement   for  the   local   level  to   assume  a   required                                                               
responsibility should be an acceptable course of events.                                                                        
                                                                                                                                
6:06:10 PM                                                                                                                    
                                                                                                                                
CHAIR GATTIS removed her objection to Amendment 4.                                                                              
                                                                                                                                
REPRESENTATIVE SADDLER objected.                                                                                                
                                                                                                                                
6:06:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  asked  for clarity  of  the  language                                                               
allowing the local district to  assume the operation of a charter                                                               
school that has had a denial overturned at the state level.                                                                     
                                                                                                                                
REPRESENTATIVE KITO  III directed attention to  Amendment 4, page                                                               
1, line 8 and paraphrased the language, which read:                                                                             
                                                                                                                                
      (g) A local school board that denied an application                                                                       
      for a charter school approved by the state board on                                                                       
     appeal may elect to operate the charter school ...                                                                         
                                                                                                                                
6:07:00 PM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken.  Representatives  Reinbold, Seaton,                                                               
P.  Wilson, LeDoux,  Kito III  (Alternate), and  Gattis voted  in                                                               
favor of Amendment  4.  Representative Saddler  voted against it.                                                               
Therefore, Amendment 4 was adopted by a vote of 6-1.                                                                            
                                                                                                                                
6:08:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD   moved   Amendment  5,   labeled   28-                                                               
GH2716\U.5, Mischel,  3/10/14 [text provided  at the end  of this                                                               
document].                                                                                                                      
                                                                                                                                
CHAIR GATTIS objected for discussion.                                                                                           
                                                                                                                                
6:08:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO  III introduced Amendment 5,  which addresses                                                               
the  statute that  allows  school districts  to  bond for  school                                                               
projects.   In larger communities  "most of their space  has been                                                               
built  out,"   he  said,  for   purposes  of   accommodating  the                                                               
neighborhood   public  schools.      Bonding   for  purposes   of                                                               
renovation, or to  build new, for charter school  purposes, is no                                                               
longer eligible or  perhaps only at the  60 percent reimbursement                                                               
level.   He  explained that  Amendment 5  adds a  new section  to                                                               
allow  charter school  bonding at  the  70 percent  reimbursement                                                               
level, and encompasses  renovation costs as well  as new building                                                               
endeavors.   In  responding to  a request  from Chair  Gattis, he                                                               
shared  that his  recent work  history includes  over five  years                                                               
with EED directly  involved with the bond  debt reimbursement and                                                               
grant programs.                                                                                                                 
                                                                                                                                
The committee took an at-ease from 6:11 p.m. to 6:19 p.m.                                                                       
                                                                                                                                
6:19:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KITO  III   pointed   out  that   a  bond   debt                                                               
reimbursement could be sought for  charter school purposes at the                                                               
70 percent level  under this measure.  Further,  an incentive for                                                               
reconfiguration   or  renovation   to   provide  charter   school                                                               
facilities  would be  encouraged,  he  suggested, by  repurposing                                                               
existing public buildings, as allowed under Amendment 5.                                                                        
                                                                                                                                
6:20:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD expressed  interest in providing equality                                                               
for charter schools, and stated support for the Amendment 5.                                                                    
                                                                                                                                
6:21:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON offered  that  a problem  may  arise if  a                                                               
district  has attendance  numbers that  are declining  and school                                                               
space exists,  in which case  bond eligibility may remain  at the                                                               
60:40 ratios.   He agreed  that this proposal could  be effective                                                               
for   repurposing  existing   facilities;  mentioned   the  Homer                                                               
neighborhood school  sharing space with the  local charter school                                                               
in  an  arrangement  that  works well;  and  stated  support  for                                                               
Amendment 5.                                                                                                                    
                                                                                                                                
6:23:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER agreed with  previous comments, and stated                                                               
support for Amendment 5.                                                                                                        
                                                                                                                                
CHAIR  GATTIS   withdrew  her  objection  and,   without  further                                                               
objection, Amendment 5 was adopted.                                                                                             
                                                                                                                                
6:24:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD   moved   Amendment  6,   labeled   28-                                                               
GH2716\U.18, Martin/Mischel,  3/10/14 [text  provided at  the end                                                               
of this document].                                                                                                              
                                                                                                                                
CHAIR GATTIS objected for discussion.                                                                                           
                                                                                                                                
6:24:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO  III introduced  Amendment 6,  which provides                                                               
sunset  date changes  for two  statutes that  allow the  state to                                                               
maintain a  place marker for  participating in a  federal funding                                                               
program   pertaining  to   the   operation   of  charter   school                                                               
facilities.   He  explained that  by extending  the sunset  date,                                                               
should federal  reauthorization occur,  the state  would be  in a                                                               
position to take advantage of the  option and engage in the grant                                                               
program.                                                                                                                        
                                                                                                                                
REPRESENTATIVE REINBOLD stated support for Amendment 6.                                                                         
                                                                                                                                
6:26:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  clarified that the state  has participated                                                               
in the past but the enabling legislation is due to sunset.                                                                      
                                                                                                                                
REPRESENTATIVE  KITO III  concurred and  said the  state was  not                                                               
able to participate in the  past due to mitigating circumstances,                                                               
but it  may in the future  if Amendment 6 passes  and the statute                                                               
remains active.                                                                                                                 
                                                                                                                                
6:27:19 PM                                                                                                                    
                                                                                                                                
CHAIR GATTIS  stated her understanding  that the statute  has not                                                               
experienced sunset, but  is in the process, and  Amendment 6 will                                                               
"keep  the door  open" in  the  event that  federal funds  become                                                               
available.                                                                                                                      
                                                                                                                                
6:27:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  asked  about the  authority  for  the                                                               
existing statute and whether it is a mandate.                                                                                   
                                                                                                                                
6:28:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO III said no  mandate or directive exists, but                                                               
it would require the legislature to approve matching funds.                                                                     
                                                                                                                                
6:28:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD offered  response,  paraphrasing from  a                                                               
prepared statement, which read [original punctuation provided]:                                                                 
                                                                                                                                
     Section  3, Chapter  91, SLA  (Session  Law of  Alaska)                                                                    
     2010   established   a  supplemental   charter   school                                                                    
     facilities construction,  lease, and  major maintenance                                                                    
     grant program.                                                                                                             
                                                                                                                                
     This  language  was  put  in  statute  to  require  the                                                                    
     Department to apply for and  award federal funding made                                                                    
     available under the grant program.                                                                                         
                                                                                                                                
     There was  also a provision  for the state  to allocate                                                                    
     an amount not  less than $1 for each  pupil enrolled in                                                                    
     a  charter school  for a  school  district or  regional                                                                    
     educational attendance area.                                                                                               
                                                                                                                                
     [Amendment 6] removes  the July 1, 2015  sunset date to                                                                    
     allow for the continuation of this program.                                                                                
                                                                                                                                
     While  there have  been no  grants  awarded under  this                                                                    
     program,  this will  allow for  the  program to  remain                                                                    
     once federal funds become available.                                                                                       
                                                                                                                                
6:29:45 PM                                                                                                                    
                                                                                                                                
MR.  MORSE  said  the  summary  by  Representative  Reinbold  was                                                               
entirely accurate and comprehensive.                                                                                            
                                                                                                                                
6:30:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked for  a forecast on  the possibility                                                               
for reauthorization and availability of funds.                                                                                  
                                                                                                                                
MR.  MORSE reported  that  there has  been  conversation, at  the                                                               
national  level, but  nothing  thus far  on the  horizon.   To  a                                                               
follow-up question, he said the  state has received no funding to                                                               
date, under the grant program.                                                                                                  
                                                                                                                                
CHAIR  GATTIS   removed  her   objection  and,   without  further                                                               
objection, Amendment 6 was adopted.                                                                                             
                                                                                                                                
6:31:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD   moved   Amendment  7,   labeled   28-                                                               
GH2716\U.19, Martin/Mischel,  3/10/14 [text  provided at  the end                                                               
of this document].                                                                                                              
                                                                                                                                
CHAIR GATTIS objected for discussion.                                                                                           
                                                                                                                                
6:32:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO  III  said  Amendment 7  stipulates  that  a                                                               
charter  school, housed  in a  repurposed  public facility,  will                                                               
operate  under the  caveat  that local  students  retain a  first                                                               
right of refusal option for attendance.                                                                                         
                                                                                                                                
6:32:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD stated support for Amendment 7.                                                                         
                                                                                                                                
6:33:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  conjectured on the current  obligation for                                                               
local  school  boards  to  provide   neighborhood  schools  in  a                                                               
district.   She theorized what  the outcome  would be if  a "thin                                                               
majority,"  51  percent  of  the parents,  decided  to  have  the                                                               
neighborhood school  be a Russian  immersion charter  school, and                                                               
49  percent oppose;  would the  school district  be obligated  to                                                               
provide an option for the dissenting families.                                                                                  
                                                                                                                                
6:35:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO  III  said the  charter  school  application                                                               
process would  address the neighborhood resident  interests, thus                                                               
minimizing the possibility of a  thin majority rule.  Further, he                                                               
reminded  that the  state constitution  requires an  education be                                                               
provided to students; not necessarily via neighborhood schools.                                                                 
                                                                                                                                
6:36:19 PM                                                                                                                    
                                                                                                                                
CHAIR GATTIS said it could be  looked at from both directions and                                                               
questioned whether the  state is required to  provide for charter                                                               
schools.                                                                                                                        
                                                                                                                                
6:36:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  offered an  example of the  Homer facility                                                               
that houses the neighborhood school  and the charter school; both                                                               
technically public  schools.  He expressed  concern for Amendment                                                               
7 line 16, which reads: "...  shall transfer the operation of the                                                               
school," ...  indicating an all  or nothing approach  and perhaps                                                               
disallowing  the  option for  sharing  a  facility.   A  friendly                                                               
amendment  may be  forthcoming following  further discussion,  he                                                               
finished.                                                                                                                       
                                                                                                                                
The committee took an at-ease from 6:37 p.m. to 6:45 p.m.                                                                       
                                                                                                                                
6:45:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO III withdrew Amendment 7.                                                                                   
                                                                                                                                
6:49:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD   moved   Amendment  8,   labeled   28-                                                               
GH2716\U.6, Mischel,  3/10/14 [text provided  at the end  of this                                                               
document].                                                                                                                      
                                                                                                                                
CHAIR GATTIS objected for discussion.                                                                                           
                                                                                                                                
6:49:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  explained that Amendment 8  deletes [the                                                               
title   language]  "school   application   appeals  and   program                                                               
budgets".                                                                                                                       
                                                                                                                                
6:50:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  pointed out  that Amendment 8  would allow                                                               
authorizers, possibly  from outside  the state,  be named  as the                                                               
responsible party  for ensuring  the implementation of  state law                                                               
regarding  the operation  of  charter schools.    He referred  to                                                               
Amendment 4, previously adopted, and  opined that it represents a                                                               
better  approach.   With  that  in mind,  he  said  he could  not                                                               
support Amendment 8.                                                                                                            
                                                                                                                                
6:50:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  said that Amendment 8,  unlike Amendment                                                               
4, would allow for the possibility of multiple authorizers.                                                                     
                                                                                                                                
6:52:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  expressed concern that Amendment  8 allows                                                               
an outside  entity to  approve a charter  facility that  has been                                                               
denied  and upheld  by  the commissioner's  office.   She  stated                                                               
reservation for supporting Amendment 8.                                                                                         
                                                                                                                                
6:53:21 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HANLEY  agreed with Representative  LeDoux's concern                                                               
and said multiple authorizers could  be sought, and having chosen                                                               
to authorize  a school, govern it  in as a unique  district.  The                                                               
district  would not  be  defined by  geographic  location but  by                                                               
authorization.   He suggested that  Amendment 8 does  not provide                                                               
clarity  on several  points; however,  Amendment  4 does  include                                                               
authorization specifics.                                                                                                        
                                                                                                                                
6:54:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON theorized  that, following two local and                                                               
in-state  denials,  a group  of  parents  might seek,  and  find,                                                               
outside authorization and become an independent school district.                                                                
                                                                                                                                
COMMISSIONER HANLEY agreed  that it could be possible  if a group                                                               
were  simply searching  for  an entity  that  would finally  say,                                                               
"Yes," to  a proposal.   He suggested the committee  consider the                                                               
effort necessary  for an  outside entity  to administer  a school                                                               
within  Alaska  and  the  significant  amount  of  statutory  and                                                               
regulatory language that would be required.                                                                                     
                                                                                                                                
6:56:14 PM                                                                                                                    
                                                                                                                                
CHAIR GATTIS  opined that multiple  authorizers could be  a means                                                               
to  allow various  entities within  the state  to govern  schools                                                               
that best  serve their area  in a  direct manner, such  as Native                                                               
Corporations  and   organizations,  and  clarified   that  having                                                               
outside  authorizers  administering  Alaskan schools  is  not  an                                                               
approach  that  she  intends  to   support.    However,  given  a                                                               
dwindling state  budget, options  need to  be considered  and may                                                               
include multiple entities involved in the school system.                                                                        
                                                                                                                                
6:57:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER moved Conceptual  Amendment 1 to Amendment                                                               
8, as follows:                                                                                                                  
                                                                                                                                
     Line 9:                                                                                                                    
     Following:  "is located in the state"                                                                                      
     Delete:  "or outside the state"                                                                                            
                                                                                                                                
REPRESENTATIVE REINBOLD withdrew Amendment 8.                                                                                   
                                                                                                                                
6:58:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD   moved   Amendment  9,   labeled   28-                                                               
GH2716\U.7, Mischel,  3/10/14 [text provided  at the end  of this                                                               
document].                                                                                                                      
                                                                                                                                
CHAIR GATTIS objected for discussion.                                                                                           
                                                                                                                                
The committee took an at-ease from 6:59 p.m. to 7:01 p.m.                                                                       
                                                                                                                                
7:01:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTIS announced Amendment 9 withdrawn.                                                                          
                                                                                                                                
7:03:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD  moved   Amendment   10,  labeled   28-                                                               
GH2716\U.8, Mischel,  3/10/14 [text provided  at the end  of this                                                               
document].                                                                                                                      
                                                                                                                                
CHAIR GATTIS objected for discussion.                                                                                           
                                                                                                                                
7:03:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  directed attention  to Version U  page 13,                                                               
line 9,  and said  Amendment 10 inserts  a subsection  to require                                                               
reports  from the  various  [Technical  and Vocational  Education                                                               
Program] (TVEP)  facilities for evaluation purposes.   He offered                                                               
that Amendment 10  will ensure that the  legislature will receive                                                               
information on  TVEP, in  order to  determine the  efficiency and                                                               
efficacy   of   the   programs    and,   thus,   allocate   funds                                                               
appropriately.                                                                                                                  
                                                                                                                                
7:05:09 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HANLEY said  the governor  added two  components to                                                               
the  TVEP  section  of  the bill:    require  those  institutions                                                               
receiving  the  TVEP  funding  to  offer  dual  credits;  and  an                                                               
articulation agreement.  He said  Amendment 10 adds to the effort                                                               
by  allowing  the Department  of  Labor  & Workforce  Development                                                               
(DLWD)  to ascertain  whether  the  facilities are  accomplishing                                                               
training goals.  He deferred further comment to DLWD.                                                                           
                                                                                                                                
7:06:05 PM                                                                                                                    
                                                                                                                                
CHAIR  GATTIS opined  that reporting  needs to  be beefed  up and                                                               
stated support for Amendment 10.                                                                                                
                                                                                                                                
7:06:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SADDLER  asked   for   an   explanation  of   an                                                               
articulation agreement, as mentioned on page 13, line 9.                                                                        
                                                                                                                                
COMMISSIONER HANLEY  said it  is a  specific agreement,  which in                                                               
this case  details the  partnership between a  school and  a TVEP                                                               
facility to allow a student to earn dual credits.                                                                               
                                                                                                                                
CHAIR  GATTIS   removed  her   objection  and,   without  further                                                               
objection Amendment 10 was adopted.                                                                                             
                                                                                                                                
7:09:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD  moved   Amendment   11,  labeled   28-                                                               
GH2716\U.10, Mischel, 3/10/14  [text provided at the  end of this                                                               
document].                                                                                                                      
                                                                                                                                
CHAIR GATTIS objected for discussion.                                                                                           
                                                                                                                                
7:10:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  explained that Amendment 11  addresses how                                                               
the denial of  a charter school application would  be appealed to                                                               
the  commissioner  of  EED and  ultimately  remanded  or  upheld.                                                               
Amendment 11  would allow  the commissioner to  act as  the final                                                               
authority and, if remand is  decided, also moderate the situation                                                               
at the  local level.  He  said this would eliminate  the need for                                                               
extensive  statutory and  regulatory review,  the involvement  of                                                               
outside  entities, and  eliminate the  requirement for  the State                                                               
School Board  to administrate  a charter school.   He  noted that                                                               
Amendment 4  had similar  intent and asked  for comment  from the                                                               
department on how the two  amendments compare for arriving at the                                                               
intended  goal.    In  response   to  a  protocol  question  from                                                               
Representative  Wilson,  he said  that,  should  Amendment 11  be                                                               
adopted and having previously adopted  Amendment 4, the committee                                                               
will choose  the one which  accomplishes the required  intent and                                                               
rescind the other.                                                                                                              
                                                                                                                                
The committee took an at-ease at 7:14 p.m.                                                                                      
                                                                                                                                
7:15:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  asked   about  the  relationship  between                                                               
Amendment 4 and Amendment 11.                                                                                                   
                                                                                                                                
REPRESENTATIVE SEATON  clarified that  Amendment 4  and Amendment                                                               
11  both address  the same  section of  the bill,  and offer  two                                                               
approaches to satisfy similar intent.                                                                                           
                                                                                                                                
7:16:50 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HANLEY explained  that  Amendment 4  states that  a                                                               
denied  charter  school  application  could be  appealed  to  the                                                               
commissioner's office  and, if approved, the  Alaska State School                                                               
Board would become the multiple  authorizers with the requirement                                                               
to  establish   a  unique  school   district,  and  act   as  the                                                               
administrator.   Statutory changes would  need to be  adopted for                                                               
the state  board to assume  administrative authority, as  well as                                                               
the complex  of other  duties inherent  to initializing  a school                                                               
district.    He explained  his  understanding  that Amendment  11                                                               
reduces  the  ability  of  the commissioner  when  an  appeal  is                                                               
submitted, pointing out  that HB 278 allowed  the commissioner to                                                               
handle  a denial  via  three options:    confirmed, approved,  or                                                               
remanded.   Amendment  11 removes  the option  for approval,  but                                                               
does provide for an additional level of review.                                                                                 
                                                                                                                                
7:18:35 PM                                                                                                                    
                                                                                                                                
CHAIR GATTIS  stated that  Amendment 4 is  more appealing  due to                                                               
the  intent it  proposes for  invoking  a higher  level of  local                                                               
involvement.                                                                                                                    
                                                                                                                                
7:19:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX noted that Amendment  11 does not appear to                                                               
allow the  commissioner to reject  the denial, only to  remand it                                                               
back to the  district, and directed attention to page  1, line 8,                                                               
to paraphrase the language, which read:                                                                                         
                                                                                                                                
     If the commissioner finds that  the denial is supported                                                                    
     by substantial  evidence and not  contrary to  law, the                                                                    
     commissioner   shall   uphold   the   denial   of   the                                                                    
     application.                                                                                                               
                                                                                                                                
REPRESENTATIVE  LEDOUX  asked  for   clarification  for  how  the                                                               
department  would  expect  to address  this  type  of  situation,                                                               
stating  that it  appears  that the  commissioner  would have  no                                                               
authority.                                                                                                                      
                                                                                                                                
COMMISSIONER HANLEY  said a determination  would need to  be made                                                               
to ensure that the denial was fact based.                                                                                       
                                                                                                                                
REPRESENTATIVE LEDOUX offered a  theoretical scenario and pointed                                                               
out that the language does  not provide the commissioner with the                                                               
authority to make a final determination.                                                                                        
                                                                                                                                
7:21:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  interpreted that Amendment 11  allows for                                                               
two options  for the commissioner:   uphold the  school districts                                                               
denial, if it  is legal and appropriately  supported by evidence;                                                               
or  request additional  information from  the school  district or                                                               
charter school  applicant.  He  said if the commissioner  were to                                                               
find  that the  school  district's denial  was  not supported  by                                                               
substantial evidence,  Amendment 11  language does not  allow the                                                               
commissioner to uphold the denial.                                                                                              
                                                                                                                                
COMMISSIONER HANLEY  said the  members interpretations  appear to                                                               
be clear and he deferred further comment.                                                                                       
                                                                                                                                
7:22:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  stated her  understanding that  one of                                                               
the main  differences is that,  unlike Amendment 4,  Amendment 11                                                               
does  not require  the establishment  of a  new school  district,                                                               
which, she  opined, "is a good  idea."  She agreed  with the need                                                               
for the  commissioner to  have the authority  to uphold  a denial                                                               
that is contrary to law.                                                                                                        
                                                                                                                                
7:23:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO III  suggested that it would  be important to                                                               
allow the  commissioner to request  additional information  on an                                                               
application, and also to ensure  that the commissioner would have                                                               
the authority for  approval.  He referred to  Amendment 11, lines                                                               
12-13,  and  asked  the  sponsor  whether  an  amendment  to  the                                                               
amendment, for  the purpose of retaining  subsection (e) proposed                                                               
for deletion, would be acceptable.                                                                                              
                                                                                                                                
7:24:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  said,   "I   don't  think   so."     The                                                               
commissioner's role  would be as  the referee in the  middle, not                                                               
granting approval.   The local  school board must submit  a final                                                               
denial or approval to the Alaska  State School Board.  He pointed                                                               
out  that,  as   adopted,  Amendment  4  provides   a  route  for                                                               
applications to  follow, and opined  that the two  amendments are                                                               
not in  conflict.  The  commissioner would become a  mediator and                                                               
review  information from  the local  school  board; however,  the                                                               
final  authority  would rest  with  the  state  board.   He  said                                                               
Amendment 4 language will also  be included, and Amendment 11, if                                                               
amended,  would  still  allow  the  commissioner  to  act  as  an                                                               
intermediary   reviewing    information   and    assisting   with                                                               
negotiations.     The  expectation   would  be  that,   with  the                                                               
commissioner and  local school board working  together, the state                                                               
board would receive approved applications, rather than denials.                                                                 
                                                                                                                                
7:27:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO  III  offered [Conceptual]  Amendment  1  to                                                               
Amendment 11, as follows:                                                                                                       
                                                                                                                                
     Line 12:                                                                                                                   
     Delete:  "Page 6, lines 8-24:"                                                                                             
                                                                                                                                
     Line 13:                                                                                                                   
     Delete:  "Delete all material."                                                                                            
                                                                                                                                
[Without objection,  Conceptual Amendment  1 to Amendment  11 was                                                               
treated as adopted.]                                                                                                            
                                                                                                                                
7:27:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  said it appears that,  if the commissioner                                                               
denies the  application, there is  no appeal to the  Alaska State                                                               
School Board,  and directed  attention to page  6, lines  5-7, to                                                               
paraphrase the language, which read:                                                                                            
                                                                                                                                
     A decision of the  commissioner upholding the denial by                                                                    
     the local school board is  a final decision not subject                                                                    
     to appeal  to the  state Board  of Education  and Early                                                                    
     Development.                                                                                                               
                                                                                                                                
REPRESENTATIVE  LEDOUX stated  her understanding  that the  state                                                               
Board of  Education and  Early Development  and the  Alaska State                                                               
School Board are separate entities,  and questioned the role each                                                               
plays in the application appeals process.                                                                                       
                                                                                                                                
COMMISSIONER HANLEY responded that  existing statute requires all                                                               
denials and  approvals be directed  to the [Alaska]  State School                                                               
Board.  As  Version U addresses the process,  he interpreted, the                                                               
state board does  not receive it on appeal, but  the denial would                                                               
have been submitted  on an informational basis.   The state board                                                               
requires  the approval  of the  local district  in order  to also                                                               
provide approval; however, the state  board would not look at the                                                               
application as an appeal item.                                                                                                  
                                                                                                                                
REPRESENTATIVE  LEDOUX  questioned  whether the  State  Board  of                                                               
Education and the State School Board are the same entities.                                                                     
                                                                                                                                
7:30:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON pointed  out that  Amendment 4  alters how                                                               
the state  board will  be authorized to  act on  applications and                                                               
allows it to overturn denials; not on appeal but as a reversal.                                                                 
                                                                                                                                
7:31:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON offered her understanding  of Amendment                                                               
4,  which,  if an  application  is  denied  by the  local  school                                                               
[board] as well as the  commissioner, authority is granted to the                                                               
state  board to  approve the  application and  create a  separate                                                               
school district.                                                                                                                
                                                                                                                                
7:31:52 PM                                                                                                                    
                                                                                                                                
CHAIR GATTIS noted  that her understanding would  not include the                                                               
creation of additional school districts.                                                                                        
                                                                                                                                
COMMISSIONER HANLEY clarified that  following two denials, by the                                                               
local school board and by  the commissioner, an application would                                                               
be presented  to the state board  as an information item,  not on                                                               
appeal.    However,  if  the  commissioner  determines  that  the                                                               
application is worthy of approval,  the state board would receive                                                               
two opinions and may agree with  the commissioner to approve.  He                                                               
explained that  Amendment 4 stipulates  that, if the  state board                                                               
provides  approval  under  the aforementioned  circumstance,  the                                                               
state board will  assume full responsibility for the  school as a                                                               
separate entity from  the local school district.   To a follow-up                                                               
question from Representative P.  Wilson, he confirmed that, under                                                               
Amendment  4,  the  state  board would  establish  a  new  school                                                               
district in order to accommodate an approved school.                                                                            
                                                                                                                                
7:33:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  directed attention  to Amendment  4 lines                                                               
8-9, to review the language, which read:                                                                                        
                                                                                                                                
     (g) A local school board that denied an application for a                                                                  
    charter school approved by the state board on appeal...                                                                     
                                                                                                                                
REPRESENTATIVE SADDLER compared how  Amendment 4 allows the state                                                               
board to consider  an appeal, but the language of  Version U page                                                               
6, indicates that it may not.                                                                                                   
                                                                                                                                
COMMISSIONER  HANLEY offered  that  the language  in Amendment  4                                                               
requires  an appeal  to  first be  approved  by the  commissioner                                                               
prior to  it being  submitted to  the state  board.   The current                                                               
language  indicates that  two denials  would be  received by  the                                                               
state board [one from the local  school district and one from the                                                               
commissioner].                                                                                                                  
                                                                                                                                
7:34:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO III  expressed  his  understanding that  the                                                               
intent  is for  the state  board to  reaffirm the  action of  the                                                               
commissioner rather than act as an adjudicating party.                                                                          
                                                                                                                                
7:35:40 PM                                                                                                                    
                                                                                                                                
CHAIR  GATTIS  maintained  her  objection  to  Amendment  11,  as                                                               
amended.                                                                                                                        
                                                                                                                                
7:37:01 PM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representatives  Seaton, P. Wilson,                                                               
and  Kito III  (Alternate), voted  in favor  of Amendment  11, as                                                               
amended.   Representatives Reinbold,  LeDoux, Saddler,  and Chair                                                               
Gattis voted  against it.   Therefore, Amendment 11,  as amended,                                                               
failed by a vote of 3-4.                                                                                                        
                                                                                                                                
Following is the text for Amendments 1-11:                                                                                      
                                                                                                                                
Amendment 1, labeled 28-GH2716\U.1, Mischel, 3/10/14:                                                                         
                                                                                                                                
     Page 1, line 5:                                                                                                            
                                                                                                                                
         Delete "school application appeals and program                                                                       
     budgets"                                                                                                                 
     Insert "schools and student transportation"                                                                              
                                                                                                                                
     Page 7, line 14:                                                                                                           
                                                                                                                                
     Delete "AS 14.17.420(a)(1),"                                                                                           
     Insert "AS 14.17.420(a)(1) and"                                                                                        
                                                                                                                                
     Page 7, lines 15 - 16:                                                                                                     
                                                                                                                                
     Delete    ",   and    student   transportation    under                                                                
     AS 14.09.010"                                                                                                          
                                                                                                                                
     Page 9, following line 11:                                                                                                 
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
        "* Sec.  14. AS 14.09.010  is amended by  adding new                                                                
     subsections to read:                                                                                                       
                                                                                                                                
          (e)       A   school   district    that   provides                                                                    
     transportation  services   under  this   section  shall                                                                    
     provide transportation  services to  students attending                                                                    
     a  charter  school operated  by  the  district under  a                                                                    
     policy adopted by the district. The policy must                                                                            
                                                                                                                                
               (1)  be developed with input solicited from                                                                      
     individuals   involved   with   the   charter   school,                                                                    
     including staff, students, and parents; and                                                                                
                                                                                                                                
               (2)  at a minimum, provide transportation                                                                        
     services for  students enrolled  in the  charter school                                                                    
     on  a space  available basis  along the  regular routes                                                                    
     that the  students attending  schools in  an attendance                                                                    
     area in the district are transported; and                                                                                  
                                                                                                                                
               (3)  be approved by the department.                                                                              
                                                                                                                                
          (f)  If a school district fails to adopt a policy                                                                     
     under (e)  of this  section, the school  district shall                                                                    
     allocate  the amount  received for  each student  under                                                                    
     (a) of this section to  each charter school operated by                                                                    
     the district  based on the number  of students enrolled                                                                    
     in the charter school.                                                                                                     
                                                                                                                                
          (g)  Nothing in (e) of this section requires a                                                                        
     school district  to establish  dedicated transportation                                                                    
     routes for the exclusive use  of students enrolled in a                                                                    
     charter school  or authorizes a  charter school  to opt                                                                    
     out of  a policy adopted  by a school district  for the                                                                    
     purpose of acquiring transportation funding."                                                                              
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 11, line 25:                                                                                                          
     Delete "sec. 17"                                                                                                           
     Insert "sec. 18"                                                                                                           
                                                                                                                                
     Page 11, line 28:                                                                                                          
     Delete "sec. 17 and 18"                                                                                                    
     Insert "sec. 18 and 19"                                                                                                    
                                                                                                                                
     Page 21, line 10:                                                                                                          
     Delete "Sections 20 and 38"                                                                                                
     Insert "Sections 21 and 39"                                                                                                
                                                                                                                                
     Page 21, line 11:                                                                                                          
     Delete "Sections 15, 16, and 17"                                                                                           
     Insert "Sections 16, 17, and 18"                                                                                           
                                                                                                                                
     Page 21, line 12:                                                                                                          
     Delete "18, and 21 - 23"                                                                                                   
     Insert "19, and 22 - 24"                                                                                                   
                                                                                                                                
     Page 21, line 13:                                                                                                          
     Delete "Section 19"                                                                                                        
     Insert "Section 20"                                                                                                        
                                                                                                                                
     Page 21, line 14:                                                                                                          
     Delete "Sections 25, 28, 31, and 34"                                                                                       
     Insert "Sections 26, 29, 32, and 35"                                                                                       
                                                                                                                                
     Page 21, line 15:                                                                                                          
     Delete "secs. 39 - 43"                                                                                                     
     Insert "secs. 40 - 44"                                                                                                     
                                                                                                                                
Amendment 2, labeled 28-GH2716\U.2, Mischel, 3/10/14:                                                                         
                                                                                                                                
     Page 5, line 26, following "writing":                                                                                      
       Insert ", must be issued within 60 days after the                                                                        
     application,"                                                                                                              
                                                                                                                                
                                                                                                                                
Amendment 3, labeled 28-GH2716\U.3, Mischel, 3/10/14:                                                                         
                                                                                                                                
     Page 1, line 4, following "students;":                                                                                   
    Insert   "relating   to   public   school   performance                                                                   
     reports;"                                                                                                                
                                                                                                                                
     Page 4, line 30:                                                                                                           
     Delete "and"                                                                                                               
     Insert "[AND]"                                                                                                             
                                                                                                                                
     Page 5, line 1, following "regulation":                                                                                    
     Insert "; and                                                                                                          
     (10)    information  on  the  number,  attendance,  and                                                                
     performance of  students enrolled  in the  school whose                                                                
     parents or  guardians are on  active duty in  the armed                                                                
     forces of  the United  States, the United  States Coast                                                                
     Guard,  the Alaska  National  Guard,  the Alaska  Naval                                                                
     Militia, or the Alaska State Defense Force"                                                                          
                                                                                                                                
                                                                                                                                
Amendment 4, labeled 28-GH2716\U.4, Mischel, 3/10/14:                                                                         
                                                                                                                                
     Page 6, following line 13:                                                                                                 
                                                                                                                                
     Insert new subsections to read:                                                                                            
                                                                                                                                
     "(f)   Except as provided  in (g) of this  section, the                                                                    
     state  board shall  operate a  charter school  that has                                                                    
     been approved by the state  board on appeal of a denial                                                                    
     of the  charter school application by  the local school                                                                    
     board  under  the  laws  governing  the  operation  and                                                                    
     maintenance of a charter school,  as if the state board                                                                    
     were a school district.                                                                                                    
                                                                                                                                
     (g)   A local school  board that denied  an application                                                                    
     for a  charter school  approved by  the state  board on                                                                    
     appeal  may  elect to  operate  the  charter school  as                                                                    
     provided in AS 14.03.255 - 14.03.290."                                                                                     
                                                                                                                                
Amendment 5, labeled 28-GH2716\U.5, Mischel, 3/10/14:                                                                         
                                                                                                                                
     Page 1, line 5:                                                                                                            
                                                                                                                                
     Delete   "school   application  appeals   and   program                                                                  
     budgets"                                                                                                                 
                                                                                                                                
     Insert  "schools;   relating  to   school  construction                                                                  
     bonds"                                                                                                                   
                                                                                                                                
     Page 9, following line 11:                                                                                                 
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
        "* Sec. 14. AS 14.11.100(a) is amended to read:                                                                     
                                                                                                                                
     (a)  During each fiscal  year, the state shall allocate                                                                    
     to  a  municipality  that  is  a  school  district  the                                                                    
     following sums:                                                                                                            
                                                                                                                                
     (1)    payments made  by  the  municipality during  the                                                                    
     fiscal  year two  years earlier  for the  retirement of                                                                    
     principal and interest on  outstanding bonds, notes, or                                                                    
     other  indebtedness incurred  before  July 1, 1977,  to                                                                    
     pay costs of school construction;                                                                                          
                                                                                                                                
     (2)  90 percent of                                                                                                         
                                                                                                                                
     (A)    payments made  by  the  municipality during  the                                                                    
     fiscal  year two  years earlier  for the  retirement of                                                                    
     principal and interest on  outstanding bonds, notes, or                                                                    
     other  indebtedness incurred  after June 30,  1977, and                                                                    
     before   July 1,  1978,   to   pay   costs  of   school                                                                    
     construction;                                                                                                              
                                                                                                                                
     (B)    cash  payments  made after  June 30,  1976,  and                                                                    
     before  July 1, 1978,  by the  municipality during  the                                                                    
     fiscal year  two years earlier  to pay costs  of school                                                                    
     construction;                                                                                                              
                                                                                                                                
     (3)  90 percent of                                                                                                         
                                                                                                                                
     (A)    payments made  by  the  municipality during  the                                                                    
     fiscal  year two  years earlier  for the  retirement of                                                                    
     principal and interest on  outstanding bonds, notes, or                                                                    
     other  indebtedness incurred  after June 30,  1978, and                                                                    
     before  January 1,   1982,  to  pay  costs   of  school                                                                    
     construction       projects        approved       under                                                                    
     AS 14.07.020(a)(11);                                                                                                       
                                                                                                                                
     (B)    cash  payments  made after  June 30,  1978,  and                                                                    
     before  July 1, 1982,  by the  municipality during  the                                                                    
     fiscal year  two years earlier  to pay costs  of school                                                                    
     construction       projects        approved       under                                                                    
     AS 14.07.020(a)(11);                                                                                                       
                                                                                                                                
     (4)  subject  to (h) and (i) of this  section, up to 90                                                                    
     percent of                                                                                                                 
                                                                                                                                
     (A)    payments made  by  the  municipality during  the                                                                    
     current  fiscal year  for the  retirement of  principal                                                                    
     and  interest on  outstanding  bonds,  notes, or  other                                                                    
     indebtedness  incurred  after  December 31,  1981,  and                                                                    
     authorized by the qualified  voters of the municipality                                                                    
     before   July 1,  1983,   to   pay   costs  of   school                                                                    
     construction,   additions   to   schools,   and   major                                                                    
     rehabilitation  projects that  exceed  $25,000 and  are                                                                    
     approved under AS 14.07.020(a)(11);                                                                                        
                                                                                                                                
     (B)    cash  payments  made after  June 30,  1982,  and                                                                    
     before  July 1, 1983,  by the  municipality during  the                                                                    
     fiscal year  two years earlier  to pay costs  of school                                                                    
     construction,   additions   to   schools,   and   major                                                                    
     rehabilitation  projects that  exceed  $25,000 and  are                                                                    
     approved under AS 14.07.020(a)(11); and                                                                                    
                                                                                                                                
     (C)    payments made  by  the  municipality during  the                                                                    
     current  fiscal year  for the  retirement of  principal                                                                    
     and  interest on  outstanding  bonds,  notes, or  other                                                                    
     indebtedness  to  pay  costs  of  school  construction,                                                                    
     additions   to   schools,  and   major   rehabilitation                                                                    
     projects that  exceed $25,000 and are  submitted to the                                                                    
     department   for  approval   under  AS 14.07.020(a)(11)                                                                    
     before  July 1, 1983,  and  approved  by the  qualified                                                                    
     voters  of the  municipality  before October 15,  1983,                                                                    
     not to  exceed a total  project cost of  (i) $6,600,000                                                                    
     if the  annual growth rate of  average daily membership                                                                    
     of the  municipality is  more than  7 percent  but less                                                                    
     than  12 percent,  or (ii)  $20,000,000  if the  annual                                                                    
     growth  rate   of  average  daily  membership   of  the                                                                    
     municipality is 12 percent or  more; payments made by a                                                                    
     municipality under  this subparagraph on  total project                                                                    
     costs that exceed  the amounts set out in  (i) and (ii)                                                                    
     of  this subparagraph  are subject  to  (5)(A) of  this                                                                    
     subsection;                                                                                                                
                                                                                                                                
     (5)  subject  to (h) - (j) of this  section, 80 percent                                                                    
     of                                                                                                                         
                                                                                                                                
     (A)    payments made  by  the  municipality during  the                                                                    
     fiscal  year  for  the   retirement  of  principal  and                                                                    
     interest   on  outstanding   bonds,  notes,   or  other                                                                    
     indebtedness authorized by the  qualified voters of the                                                                    
     municipality                                                                                                               
                                                                                                                                
     (i)   after June 30,  1983, but before  March 31, 1990,                                                                    
     to  pay  costs  of school  construction,  additions  to                                                                    
     schools, and major  rehabilitation projects that exceed                                                                    
     $25,000 and are approved under AS 14.07.020(a)(11); or                                                                     
                                                                                                                                
     (ii)   before  July 1,  1989,  and reauthorized  before                                                                    
     November 1, 1989, to pay  costs of school construction,                                                                    
     additions   to   schools,  and   major   rehabilitation                                                                    
     projects  that exceed  $25,000 and  are approved  under                                                                    
     AS 14.07.020(a)(11); and                                                                                                   
                                                                                                                                
     (B)   cash payments  made after  June 30, 1983,  by the                                                                    
     municipality during  the fiscal year two  years earlier                                                                    
     to  pay  costs  of school  construction,  additions  to                                                                    
     schools, and major  rehabilitation projects that exceed                                                                    
     $25,000  and  are  approved by  the  department  before                                                                    
     July 1, 1990, under AS 14.07.020(a)(11);                                                                                   
                                                                                                                                
     (6)  subject  to (h) - (j) and (m)  of this section, 70                                                                    
     percent  of payments  made by  the municipality  during                                                                    
     the  fiscal year  for the  retirement of  principal and                                                                    
     interest   on  outstanding   bonds,  notes,   or  other                                                                    
     indebtedness authorized by the  qualified voters of the                                                                    
     municipality  on or  after April 30,  1993, but  before                                                                    
     July 1,  1996, to  pay  costs  of school  construction,                                                                    
     additions   to   schools,  and   major   rehabilitation                                                                    
     projects that  exceed $200,000  and are  approved under                                                                    
     AS 14.07.020(a)(11);                                                                                                       
                                                                                                                                
     (7)  subject  to (h) - (j) and (m)  of this section, 70                                                                    
     percent  of payments  made by  the municipality  during                                                                    
     the  fiscal year  for the  retirement of  principal and                                                                    
     interest   on  outstanding   bonds,  notes,   or  other                                                                    
     indebtedness authorized by the  qualified voters of the                                                                    
     municipality   after   March 31,   1990,   but   before                                                                    
     April 30, 1993,  to pay  costs of  school construction,                                                                    
     additions   to   schools,  and   major   rehabilitation                                                                    
     projects;                                                                                                                  
                                                                                                                                
     (8)   subject to  (h), (i),  (j)(2) -  (5), and  (n) of                                                                    
     this section  and after projects  funded by  the bonds,                                                                    
     notes, or other indebtedness  have been approved by the                                                                    
     commissioner,  70  percent  of  payments  made  by  the                                                                    
     municipality during the fiscal  year for the retirement                                                                    
     of principal and interest  on outstanding bonds, notes,                                                                    
     or  other  indebtedness  authorized  by  the  qualified                                                                    
     voters of  the municipality  on or after  July 1, 1995,                                                                    
     but  before  July 1,  1998,  to  pay  costs  of  school                                                                    
     construction,   additions   to   schools,   and   major                                                                    
     rehabilitation  projects that  exceed $200,000  and are                                                                    
     approved under AS 14.07.020(a)(11);                                                                                        
                                                                                                                                
     (9)   subject to  (h), (i),  (j)(2) -  (5), and  (n) of                                                                    
     this section  and after projects  funded by  the bonds,                                                                    
     notes, or other indebtedness  have been approved by the                                                                    
     commissioner,  70  percent  of  payments  made  by  the                                                                    
     municipality during the fiscal  year for the retirement                                                                    
     of principal and interest  on outstanding bonds, notes,                                                                    
     or  other  indebtedness  authorized  by  the  qualified                                                                    
     voters of  the municipality  on or after  July 1, 1998,                                                                    
     but  before  July 1,  2006,  to  pay  costs  of  school                                                                    
     construction,   additions   to   schools,   and   major                                                                    
     rehabilitation  projects that  exceed $200,000  and are                                                                    
     approved under AS 14.07.020(a)(11);                                                                                        
                                                                                                                                
     (10)   subject to (h),  (i), (j)(2)  - (5), and  (o) of                                                                    
     this section,  and after projects funded  by the bonds,                                                                    
     notes, or other indebtedness  have been approved by the                                                                    
     commissioner,  70  percent  of  payments  made  by  the                                                                    
     municipality during the fiscal  year for the retirement                                                                    
     of principal and interest  on outstanding bonds, notes,                                                                    
     or  other  indebtedness  authorized  by  the  qualified                                                                    
     voters of  the municipality on or  after June 30, 1998,                                                                    
     to  pay  costs  of school  construction,  additions  to                                                                    
     schools, and major  rehabilitation projects that exceed                                                                    
     $200,000, are  approved under  AS 14.07.020(a)(11), and                                                                    
     are not reimbursed under (n) of this section;                                                                              
                                                                                                                                
     (11)   subject to (h),  (i), and  (j)(2) - (5)  of this                                                                    
     section,  and  after  projects  funded  by  the  bonds,                                                                    
     notes, or other indebtedness  have been approved by the                                                                    
     commissioner,  70   percent  of  payments  made   by  a                                                                    
     municipality during the fiscal  year for the retirement                                                                    
     of principal and interest  on outstanding bonds, notes,                                                                    
     or  other  indebtedness  authorized  by  the  qualified                                                                    
     voters of  the municipality on or  after June 30, 1999,                                                                    
     but  before January 1,  2005, to  pay  costs of  school                                                                    
     construction,   additions   to   schools,   and   major                                                                    
     rehabilitation    projects     and    education-related                                                                    
     facilities  that exceed  $200,000,  are approved  under                                                                    
     AS 14.07.020(a)(11), and  are not reimbursed  under (n)                                                                    
     or (o) of this section;                                                                                                    
                                                                                                                                
     (12)  subject to (h), (i),  and (j)(2), (3), and (5) of                                                                    
     this  section,  60  percent  of   payments  made  by  a                                                                    
     municipality during the fiscal  year for the retirement                                                                    
     of principal and interest  on outstanding bonds, notes,                                                                    
     or  other  indebtedness  authorized  by  the  qualified                                                                    
     voters of  the municipality on or  after June 30, 1999,                                                                    
     but  before January 1,  2005, to  pay  costs of  school                                                                    
     construction,   additions   to   schools,   and   major                                                                    
     rehabilitation    projects     and    education-related                                                                    
     facilities  that exceed  $200,000,  are reviewed  under                                                                    
     AS 14.07.020(a)(11), and  are not reimbursed  under (n)                                                                    
     or (o) of this section;                                                                                                    
                                                                                                                                
     (13)   subject to (h),  (i), (j)(2)  - (5), and  (p) of                                                                    
     this  section, and  after projects  funded  by the  tax                                                                    
     exempt bonds,  notes, or  other indebtedness  have been                                                                    
     approved by  the commissioner,  70 percent  of payments                                                                    
     made by a  municipality during the fiscal  year for the                                                                    
     retirement  of principal  and  interest on  outstanding                                                                    
     tax   exempt  bonds,   notes,  or   other  indebtedness                                                                    
     authorized by the qualified  voters of the municipality                                                                    
     on  or  after  June 30, 1999,  but  before  October 31,                                                                    
     2006, to  pay costs  of school  construction, additions                                                                    
     to  schools,  and  major  rehabilitation  projects  and                                                                    
     education-related facilities that  exceed $200,000, are                                                                    
     approved   under  AS 14.07.020(a)(11),   and  are   not                                                                    
     reimbursed under (n) or (o) of this section;                                                                               
                                                                                                                                
     (14)   subject to (h),  (i), (j)(2), (3), and  (5), and                                                                    
     (p) of this  section, 60 percent of payments  made by a                                                                    
     municipality during the fiscal  year for the retirement                                                                    
     of  principal and  interest on  outstanding tax  exempt                                                                    
     bonds, notes,  or other indebtedness authorized  by the                                                                    
     qualified  voters  of  the  municipality  on  or  after                                                                    
     June 30,  1999, but  before  October 31,  2006, to  pay                                                                    
     costs  of school  construction,  additions to  schools,                                                                    
     and  major   rehabilitation  projects   and  education-                                                                    
     related facilities  that exceed $200,000,  are reviewed                                                                    
     under  AS 14.07.020(a)(11),  and   are  not  reimbursed                                                                    
     under (n) or (o) of this section;                                                                                          
                                                                                                                                
     (15)   subject to (h),  (i), (j)(2)  - (5), and  (q) of                                                                    
     this section,  and after projects funded  by the bonds,                                                                    
     notes, or other indebtedness  have been approved by the                                                                    
     commissioner,  90   percent  of  payments  made   by  a                                                                    
     municipality during the fiscal  year for the retirement                                                                    
     of principal and interest  on outstanding bonds, notes,                                                                    
     or  other  indebtedness  authorized  by  the  qualified                                                                    
     voters of  the municipality on or  after June 30, 1999,                                                                    
     but  before October 31,  2006, to  pay costs  of school                                                                    
     construction,   additions   to   schools,   and   major                                                                    
     rehabilitation    projects     and    education-related                                                                    
     facilities  that exceed  $200,000,  are approved  under                                                                    
     AS 14.07.020(a)(11), meet the  10 percent participating                                                                    
     share  requirement  for  a  municipal  school  district                                                                    
     under the  former participating share  amounts required                                                                    
     under  AS 14.11.008(b), and  are  not reimbursed  under                                                                    
     (n) or (o) of this section;                                                                                                
                                                                                                                                
     (16)   subject to (h),  (i), and  (j)(2) - (5)  of this                                                                    
     section, and  after projects funded  by the  tax exempt                                                                    
     bonds, notes, or other  indebtedness have been approved                                                                    
     by the commissioner,  70 percent of payments  made by a                                                                    
     municipality during the fiscal  year for the retirement                                                                    
     of  principal and  interest on  outstanding tax  exempt                                                                    
     bonds, notes,  or other indebtedness authorized  by the                                                                    
     qualified  voters  of  the  municipality  on  or  after                                                                    
     October 1, 2006,  to pay costs of  school construction,                                                                    
     additions   to   schools,  and   major   rehabilitation                                                                    
     projects and  education-related facilities  that exceed                                                                    
     $200,000, are  approved under  AS 14.07.020(a)(11), and                                                                    
     are not reimbursed under (o) of this section;                                                                              
                                                                                                                                
     (17)  subject to (h), (i),  and (j)(2), (3), and (5) of                                                                    
     this  section,  60  percent  of   payments  made  by  a                                                                    
     municipality during the fiscal  year for the retirement                                                                    
     of  principal and  interest on  outstanding tax  exempt                                                                    
     bonds, notes,  or other indebtedness authorized  by the                                                                    
     qualified  voters  of  the  municipality  on  or  after                                                                    
     October 1, 2006,  to pay costs of  school construction,                                                                    
     additions   to   schools,  and   major   rehabilitation                                                                    
     projects and  education-related facilities  that exceed                                                                    
     $200,000, are  reviewed under  AS 14.07.020(a)(11), and                                                                    
     are not reimbursed under (o) of this section;                                                                          
                                                                                                                                
     (18) subject to  (h), (i), and (j)(2), (3),  and (5) of                                                                
     this  section,  70  percent  of   payments  made  by  a                                                                
     municipality during the fiscal  year in which a charter                                                                
     school  is operated,  for the  retirement of  principal                                                                
     and interest  on outstanding  tax exempt  bonds, notes,                                                                
     or  other  indebtedness  authorized  by  the  qualified                                                                
     voters of  the municipality  on or after  July 1, 2014,                                                                
     but before  December 31, 2017, to  pay costs  of school                                                                
     construction,   additions   to   schools,   and   major                                                                
     rehabilitation  projects for  the purpose  of operating                                                                
     the   charter  school   approved  under   AS 14.03.250;                                                                
     projects  reimbursed under  this paragraph  must exceed                                                                
     $200,000     and     must     be     reviewed     under                                                                
     AS 14.07.020(a)(11)."                                                                                                  
                                                                                                                                
     Page 11, line 25:                                                                                                          
     Delete "sec. 17"                                                                                                           
     Insert "sec. 18"                                                                                                           
                                                                                                                                
     Page 11, line 28:                                                                                                          
     Delete "secs. 17 and 18"                                                                                                   
     Insert "secs. 18 and 19"                                                                                                   
                                                                                                                                
     Page 21, line 10:                                                                                                          
     Delete "Sections 20 and 38"                                                                                                
     Insert "Sections 21 and 39"                                                                                                
                                                                                                                                
     Page 21, line 11:                                                                                                          
     Delete "Sections 15, 16, and 17"                                                                                           
     Insert "Sections 16, 17, and 18"                                                                                           
                                                                                                                                
     Page 21, line 12:                                                                                                          
     Delete "18, and 21 - 23"                                                                                                   
     Insert "19, and 22 - 24"                                                                                                   
                                                                                                                                
     Page 21, line 13:                                                                                                          
     Delete "Section 19"                                                                                                        
     Insert "Section 20"                                                                                                        
                                                                                                                                
     Page 21, line 14:                                                                                                          
     Delete "Sections 25, 28, 31, and 34"                                                                                       
     Insert "Sections 26, 29, 32, and 35"                                                                                       
                                                                                                                                
     Page 21, line 15:                                                                                                          
     Delete "secs. 39 - 43"                                                                                                     
     Insert "secs. 40 - 44"                                                                                                     
                                                                                                                                
Amendment 6, labeled 28-GH2716\U.18, Martin/Mischel, 3/10/14:                                                                 
                                                                                                                                
     Page 20, following line 21:                                                                                                
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
          "* Sec. 36. Section 3, ch. 91, SLA 2010, is                                                                       
     repealed."                                                                                                                 
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 21, line 10:                                                                                                          
     Delete "Sections 20 and 38"                                                                                                
     Insert "Sections 20 and 39"                                                                                                
                                                                                                                                
     Page 21, line 15:                                                                                                          
     Delete "secs. 39 - 43"                                                                                                     
     Insert "secs. 40 - 44"                                                                                                     
                                                                                                                                
                                                                                                                                
Amendment 7, labeled 28-GH2716\U.19, Martin/Mischel, 3/10/14:                                                                 
                                                                                                                                
     Page 1, line 5:                                                                                                            
                                                                                                                                
     Delete   "school   application  appeals   and   program                                                                  
     budgets"                                                                                                                 
                                                                                                                                
     Insert "schools"                                                                                                         
                                                                                                                                
     Page 5, line 23, following "employees":                                                                                    
                                                                                                                                
     Insert  ", provisions  for  conversion  of an  existing                                                                    
     school in the district to a charter school,"                                                                               
                                                                                                                                
     Page 5, following line 30:                                                                                                 
                                                                                                                                
     Insert a new subsection to read:                                                                                           
                                                                                                                                
     "(d) A  school district  shall assist a  charter school                                                                    
     applicant  in converting  an existing  school operating                                                                    
     in the  district to a  charter school if  the applicant                                                                    
     demonstrates,  to  the  satisfaction of  the  district,                                                                    
     that  a  majority  of  the  parents  and  guardians  of                                                                    
     students enrolled  in the school support  conversion to                                                                    
     a charter school.  On approval of the  school board and                                                                    
     the  state  board  under  (c)   of  this  section,  the                                                                    
     district shall  transfer the  operation of  the school,                                                                    
     along  with furnishings,  materials,  and fixtures,  to                                                                    
     the advisory body of the  charter school for use by the                                                                    
     charter  school for  the duration  of the  charter. The                                                                    
     school district  shall, however, continue to  pay costs                                                                    
     associated  with   operating  the  facility   from  the                                                                    
     district  budget  and  may not  charge  rent  or  other                                                                    
     expenses of the facility to the charter school."                                                                           
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
     Page 7, following line 20:                                                                                                 
                                                                                                                                
     Insert new bill sections to read:                                                                                          
                                                                                                                                
        "* Sec. 10. AS 14.03.265(a) is amended to read:                                                                     
                                                                                                                                
     (a)   The program of  a charter school may  be designed                                                                    
     to serve                                                                                                                   
                                                                                                                                
     (1)  students within an age group or grade level;                                                                          
                                                                                                                                
     (2)    students  who  will benefit  from  a  particular                                                                    
     teaching method or curriculum; [OR]                                                                                        
                                                                                                                                
     (3)      nonresident  students,   including   providing                                                                    
     domiciliary  services  for   students  who  need  those                                                                    
     services, if approved by the board; or                                                                                 
                                                                                                                                
     (4)   students who  attended a  public school  that was                                                                
     converted to a charter school under AS 14.03.250(d).                                                                   
                                                                                                                                
        * Sec. 11.  AS 14.03.265 is amended by  adding a new                                                                  
     subsection to read:                                                                                                        
                                                                                                                                
     (d)   Notwithstanding  the  requirements for  admission                                                                    
     under (b)  of this section,  a charter school  that was                                                                    
     converted  from  another  public  school  shall  accept                                                                    
     applicants  for admission  in  the  following order  of                                                                    
     priority on a space available basis:                                                                                       
                                                                                                                                
     (1)   students who were  enrolled in the  school before                                                                    
     the school was converted to a charter school;                                                                              
                                                                                                                                
     (2)  students who reside  in the attendance area of the                                                                    
     school;                                                                                                                    
                                                                                                                                
     (3)  all other applicants."                                                                                                
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 11, line 25:                                                                                                          
     Delete "sec. 17"                                                                                                           
     Insert "sec. 19"                                                                                                           
                                                                                                                                
     Page 11, line 28:                                                                                                          
     Delete "secs. 17 and 18"                                                                                                   
     Insert "secs. 19 and 20"                                                                                                   
                                                                                                                                
     Page 21, line 10:                                                                                                          
     Delete "Sections 20 and 38"                                                                                                
     Insert "Sections 22 and 40"                                                                                                
                                                                                                                                
     Page 21, line 11:                                                                                                          
     Delete "Sections 15, 16, and 17"                                                                                           
     Insert "Sections 17, 18, and 19"                                                                                           
                                                                                                                                
     Page 21, line 12:                                                                                                          
     Delete "18, and 21 - 23"                                                                                                   
     Insert "19, and 23 - 25"                                                                                                   
                                                                                                                                
     Page 21, line 13:                                                                                                          
     Delete "Section 19"                                                                                                        
     Insert "Section 21"                                                                                                        
                                                                                                                                
     Page 21, line 14:                                                                                                          
     Delete "Sections 25, 28, 31, and 34"                                                                                       
     Insert "Sections 27, 30, 33, and 36"                                                                                       
                                                                                                                                
     Page 21, line 15:                                                                                                          
     Delete "secs. 39 - 43"                                                                                                     
     Insert "secs. 41 - 45"                                                                                                     
                                                                                                                                
Amendment 8, labeled 28-GH2716\U.6, Mischel, 3/10/14:                                                                         
                                                                                                                                
     Page 1, line 5:                                                                                                            
                                                                                                                                
     Delete   "school   application  appeals   and   program                                                                  
     budgets"                                                                                                                 
                                                                                                                                
     Insert "schools"                                                                                                         
                                                                                                                                
     Page 6, following line 13:                                                                                                 
                                                                                                                                
     Insert a new subsection to read:                                                                                           
                                                                                                                                
     "(f)   If the  commissioner upholds  the denial  by the                                                                    
     local school  board of a charter  school application, a                                                                    
     charter school  applicant may  apply to  another entity                                                                    
     that is located  in the state or outside  the state for                                                                    
     approval of the charter school  in the state. The other                                                                    
     entity  may approve  the establishment  of the  charter                                                                    
     school under regulations adopted by the department."                                                                       
                                                                                                                                
Amendment 9, labeled 28-GH2716\U.7, Mischel, 3/10/14:                                                                         
                                                                                                                                
     Page 1, line 8:                                                                                                            
     Delete "nonprofit agency"                                                                                              
     Insert "for profit or nonprofit agency"                                                                                
                                                                                                                                
     Page 1, line 18:                                                                                                           
     Delete "nonprofit agency"                                                                                              
     Insert "for profit or nonprofit agency"                                                                                
                                                                                                                                
     Page 2, line 5:                                                                                                            
     Delete "nonprofit agency"                                                                                              
     Insert "for profit or nonprofit agency"                                                                                
                                                                                                                                
     Page 2, line 15:                                                                                                           
     Delete "nonprofit agency"                                                                                              
     Insert "for profit or nonprofit agency"                                                                                
                                                                                                                                
     Page 2, line 25:                                                                                                           
     Delete "nonprofit agency"                                                                                              
     Insert "for profit or nonprofit agency"                                                                                
                                                                                                                                
     Page 3, line 4:                                                                                                            
     Delete "nonprofit agency"                                                                                              
     Insert "for profit or nonprofit agency"                                                                                
                                                                                                                                
     Page 3, line 14:                                                                                                           
     Delete "nonprofit agency"                                                                                              
     Insert "for profit or nonprofit agency"                                                                                
                                                                                                                                
     Page 3, line 24:                                                                                                           
     Delete "nonprofit agency"                                                                                              
     Insert "for profit or nonprofit agency"                                                                                
                                                                                                                                
Amendment 10, labeled 28-GH2716\U.8, Mischel, 3/10/14:                                                                        
                                                                                                                                
     Page 13, line 5:                                                                                                           
     Delete "and"                                                                                                           
                                                                                                                                
     Page 13, line 9, following "agreement":                                                                                
     Insert "; and                                                                                                          
                                                                                                                              
      (8) the performance and financial information needed                                                                  
     to verify the performance of the program as specified                                                                  
     by the department by regulation"                                                                                       
                                                                                                                                
Amendment 11, labeled 28-GH2716\U.10, Mischel, 3/10/14:                                                                       
                                                                                                                                
     Page 6, line 5, following "law.":                                                                                          
                                                                                                                                
     Insert a new subsection to read:                                                                                           
                                                                                                                                
     "(e)   On appeal, the commissioner  may request written                                                                    
     supplementation  of the  record from  the applicant  or                                                                    
     the  local school  board. The  commissioner shall  make                                                                    
     written  findings  regarding  the application.  If  the                                                                    
     commissioner  finds  that   the  local  school  board's                                                                    
     decision is  not supported  by substantial  evidence or                                                                    
     is contrary  to law, the commissioner  shall remand the                                                                    
     appeal  to the  local school  board for  further review                                                                    
     consistent  with  the  findings.  If  the  commissioner                                                                    
     finds  that  the  denial is  supported  by  substantial                                                                    
     evidence  and not  contrary  to  law, the  commissioner                                                                    
     shall uphold the denial of the application."                                                                               
                                                                                                                                
     Page 6, lines 8 - 24:                                                                                                      
     Delete all material.                                                                                                       
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 11, line 25:                                                                                                          
     Delete "sec. 17"                                                                                                           
     Insert "sec. 16"                                                                                                           
                                                                                                                                
     Page 11, line 28:                                                                                                          
     Delete "secs. 17 and 18"                                                                                                   
     Insert "secs. 16 and 17"                                                                                                   
                                                                                                                                
     Page 20, line 31:                                                                                                          
     Delete "Sections 6 and 7"                                                                                                  
     Insert "Section 6"                                                                                                         
                                                                                                                                
     Page 21, line 1:                                                                                                           
     Delete "apply"                                                                                                             
     Insert "applies"                                                                                                           
                                                                                                                                
     Page 21, line 10:                                                                                                          
     Delete "Sections 20 and 38"                                                                                                
     Insert "Sections 19 and 37"                                                                                                
                                                                                                                                
     Page 21, line 11:                                                                                                          
     Delete "Sections 15, 16, and 17"                                                                                           
     Insert "Sections 14, 15, and 16"                                                                                           
                                                                                                                                
     Page 21, line 12:                                                                                                          
     Delete "18, and 21 - 23"                                                                                                   
     Insert "17, and 20 - 22"                                                                                                   
                                                                                                                                
     Page 21, line 13:                                                                                                          
     Delete "Section 19"                                                                                                        
     Insert "Section 18"                                                                                                        
                                                                                                                                
     Page 21, line 14:                                                                                                          
     Delete "Sections 25, 28, 31, and 34"                                                                                       
     Insert "Sections 24, 27, 30, and 33"                                                                                       
                                                                                                                                
     Page 21, line 15:                                                                                                          
     Delete "secs. 39 - 43"                                                                                                     
     Insert "secs. 38 - 42"                                                                                                     
                                                                                                                                
[HB 278 was held over].                                                                                                         

Document Name Date/Time Subjects