Legislature(2019 - 2020)BUTROVICH 205

01/30/2020 09:00 AM Senate EDUCATION

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09:00:16 AM Start
09:00:41 AM SB136
10:13:14 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Teleconference <Listen Only> --
*+ SB 136 STATE-TRIBAL EDUCATION COMPACT SCHOOLS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
**Streamed live on AKL.tv**
+ Bills Previously Heard/Scheduled TELECONFERENCED
         SB 136-STATE-TRIBAL EDUCATION COMPACT SCHOOLS                                                                      
                                                                                                                                
9:00:41 AM                                                                                                                    
CHAIR STEVENS announced the consideration of SENATE BILL NO.                                                                    
136, "An Act providing for the establishment of public schools                                                                  
through state-tribal compacts."                                                                                                 
                                                                                                                                
He stated his intent to introduce the bill and hold it for                                                                      
further review. He called Mr. Lamkin to the table.                                                                              
                                                                                                                                
9:01:07 AM                                                                                                                    
TIM   LAMKIN,  Staff,   Senator   Gary   Stevens,  Alaska   State                                                               
Legislature,  Juneau,   Alaska,  said   SB  136   is  significant                                                               
legislation that  has an  impact on  the state's  relationship to                                                               
federally recognized  tribes in  Alaska. He  said he  expects the                                                               
sectional to  trigger a number  of questions about the  bill, but                                                               
this is a draft. It will take  some work to put together the nuts                                                               
and bolts.                                                                                                                      
                                                                                                                                
9:02:00 AM                                                                                                                    
MR. LAMKIN presented the sectional of SB 136.                                                                                   
                                                                                                                                
     Section 1:                                                                                                                 
     AS  14.07.165(a) relating  to the  duties of  the State                                                                    
     Board  of Education,  is amended  to include  the Board                                                                    
     adopting   regulations  associated   with  state-tribal                                                                    
     compact schools.                                                                                                           
                                                                                                                                
MR. LAMKIN  said Section 2  is the core of  bill. It sets  up the                                                               
program and  indicates the commissioner  can enter  into compacts                                                               
with federally  recognized tribes through an  application process                                                               
that  is explained  in some  detail. That  process begins  with a                                                               
resolution  passed   by  the  governing   body  of   a  federally                                                               
recognized tribe. It has general  provisions relevant to standard                                                               
contracting  language and  a new  subsection, AS  14.16.310, that                                                               
specifies a state-tribal education  compact (STEC) school will be                                                               
considered a  school district. That t  is a key component  of the                                                               
bill.  It puts  some  restrictions on  compacts, consistent  with                                                               
other restrictions  for school districts,  such as  defining days                                                               
in  session  and holidays.  These  are  consistent with  existing                                                               
statutes  and   requirements  for   school  districts,   such  as                                                               
following state board regulations.                                                                                              
                                                                                                                                
     Section 2:                                                                                                                 
     AS  14.16.300, is  established, State-Tribal  Education                                                                    
     Compact Schools (STEC).                                                                                                    
     (a)  The  Commissioner  of  Education  may  enter  into                                                                    
     compacts  with   federally  recognized   tribes  (FRT),                                                                    
     through an application process.                                                                                            
     (b) The  application process must include  a resolution                                                                    
     passed by  the locally  governing board  of a  FRT, and                                                                    
     include  provisions for  specific  grade  levels to  be                                                                    
     taught,  compliance, dispute  resolution, recordkeeping                                                                    
     and similar standard terms of contracting.                                                                                 
     AS  14.16.310: Specifies  that a  STEC  school will  be                                                                    
     considered  a  school  district (SD)  and  must  follow                                                                    
     existing statutory requirements as other SD's do for:                                                                      
     1. District Operations:                                                                                                    
     (a)  defining the  school term,  days  in session,  and                                                                    
     school holidays School terms, days in session;                                                                             
     (b) miscellaneous provisions for SD's;                                                                                     
     (c) follow  state board  regulations, unless  the board                                                                    
     specifically exempts STECs from a regulation;                                                                              
     (d)  authorizing  school  districts  to  establish  and                                                                    
     participate  in the  services  of  a regional  resource                                                                    
     center;                                                                                                                    
     (e) requiring an annual audit;                                                                                             
     (f)   authorizing   cooperation   with   other   school                                                                    
     districts;                                                                                                                 
     (g)  prohibits employment  of a  relative of  the chief                                                                    
     school administrator;                                                                                                      
     (h) prohibits  discrimination based  on sex or  race in                                                                    
     public education.                                                                                                          
                                                                                                                                
     2. Public  School Funding  and receipt  and expenditure                                                                    
     of that funding:                                                                                                           
     (a) relating to student count estimates;                                                                                   
     (b) relating to school operating fund balances;                                                                            
     (c)  setting out  the procedure  for payment  of public                                                                    
     school  funding and  imposing general  requirements and                                                                    
     limits on money paid.                                                                                                      
     3. Teacher employment and retirement                                                                                       
     (a) relating to sick leave;                                                                                                
     (b) relating to the employment and tenure of teachers;                                                                     
     (c) relating to the salaries of teachers;                                                                                  
     (d)  relating   to  sabbatical  leave   provisions  for                                                                    
     teachers;                                                                                                                  
     (e) authorizing  collective bargaining  by certificated                                                                    
     employees,  except  with  regard to  teachers  who  are                                                                    
     administrators and  except that the board  may delegate                                                                    
     some  or  all  of   its  responsibilities  under  those                                                                    
     statutes;                                                                                                                  
     (f) regarding the teachers' retirement system.                                                                             
     4. Students and educational programs                                                                                       
     (a) relating to educational  services for children with                                                                    
     disabilities;                                                                                                              
     (b) establishing health education program standards;                                                                       
     (c) relating to bilingual and bicultural education.                                                                        
                                                                                                                                
9:05:10 AM                                                                                                                    
MR. LAMKIN  highlighted that AS  14.16.320 says that  schools may                                                               
not discriminate  and must be open  to everyone, but if  a school                                                               
has  more  students  than  it   can  enroll,  it  can  prioritize                                                               
enrollment federally recognized tribe members.                                                                                  
                                                                                                                                
     AS  14.16.320  specifies that  a  STEC  school may  not                                                                    
     charge tuition,  with some  exceptions for  over school                                                                    
     age  persons and  extracurricular activities,  and that                                                                    
     school  admissions may  not discriminate  against race,                                                                    
     school  age,  or grade  level.  If  a STEC  school  has                                                                    
     applicants  that   exceed  their  capacity,   they  may                                                                    
     prioritize enrollment of tribal members;                                                                                   
                                                                                                                                
     AS 14.16.330 establishes  financial provisions for STEC                                                                    
     schools  consistent  with existing  foundation  formula                                                                    
     funding  for  a school  district  and  for purposes  of                                                                    
     applying for federal funding                                                                                               
                                                                                                                                
     AS  14.16.340 regards  employees of  the STEC  as being                                                                    
     state   employees    and   provides    for   employment                                                                    
     preferences for those who are member of a FRT.                                                                             
                                                                                                                                
     Section 3:                                                                                                                 
     AS  14.17.300(a),  relating  to  the  public  education                                                                    
     fund,  is amended  to allow  for  appropriations to  be                                                                    
     made to STEC schools.                                                                                                      
                                                                                                                                
9:06:51 AM                                                                                                                    
     Section 4:                                                                                                                 
     AS 14.17.400(b) in the instance  of a shortage of funds                                                                    
     for public  education, the  department of  education is                                                                    
     directed reduce  school district funding on  a pro rata                                                                    
     basis, amended to include a  similar pro rata reduction                                                                    
     for STEC schools.                                                                                                          
                                                                                                                                
     Section 5:                                                                                                                 
     14.17.445 adds a new subsection  to include funding for                                                                    
     STEC   schools  inside   the  foundation   formula  for                                                                    
     purposes of calculating its basic need                                                                                     
                                                                                                                                
     Section 6:                                                                                                                 
     14.18.110(b)  relating   to  anti-discrimination  laws,                                                                    
     adds a  new subsection  to allow, in  the event  a STEC                                                                    
     school  has applicants  in excess  of its  capacity, to                                                                    
     prioritize  employment and  student enrollment  firstly                                                                    
     to members of the FRT under the compact.                                                                                   
                                                                                                                                
     Section 7:                                                                                                                 
     14.30.010(b),   relating   to   compulsory   school-age                                                                    
     attendance, and  which has a number  of exemptions from                                                                    
     compulsory  attendance,   is  amended  to   include  an                                                                    
     exemption for student enrolled in a STEC school.                                                                           
                                                                                                                                
     Section 8:                                                                                                                 
     14.30.186(a), relating  to special  education services,                                                                    
     is amended  to include  STEC schools being  required to                                                                    
     provide   such   services    to   for   children   with                                                                    
     disabilities enrolled in the STEC school.                                                                                  
                                                                                                                                
     Sections 9-12:                                                                                                             
     AS  14.30.350(8),   14.43.849(5),  14.43.915(f)(2),  AS                                                                    
     21.96.070(g)(1), are  conforming definition references,                                                                    
     being  amended   to  include  STEC  schools   as  being                                                                    
     considered a "school district."                                                                                            
                                                                                                                                
     Sections 13-14:                                                                                                            
     AS 23.40.200(c),  relating to provisions under  which a                                                                    
     union may strike, is amended to include a STEC school.                                                                     
                                                                                                                                
9:09:04 AM                                                                                                                    
     Sections 15-16:                                                                                                            
     AS 39.35.160(c)  & (d), relating  to the  retirement system,                                                               
     is a conforming  amendment to include both  the employees of                                                               
     a STEC  school, and the  STEC school as the  employer, being                                                               
     required to contribute to the retirement system                                                                            
                                                                                                                                
     Sections 17-19:                                                                                                            
     AS  39.35.300(c),  AS  39.35.310(c),  and  AS  39.35.330(d),                                                               
     relating   to   the   retirement  system,   are   conforming                                                               
     amendments  to  include  STEC   school  employees  as  state                                                               
     employees and contributing time  served under the retirement                                                               
     program.                                                                                                                   
                                                                                                                                
     Sections 20-21:                                                                                                            
     AS  43.20.014(g)(3)  and  AS  47.07.063(D)(3),  relating  to                                                               
     Medicaid   eligibility  and   education  tax   credits,  are                                                               
     conforming definition  references, being amended  to include                                                               
     STEC schools as being considered a "school district."                                                                      
                                                                                                                                
     Section 22:                                                                                                                
     Gives  regulatory authority  to the  Dept. of  Education and                                                               
     Early  Development   (DEED)  to  help  implement   the  STEC                                                               
     program, and  includes transition language to  give DEED one                                                               
     year to implement following its enactment.                                                                                 
                                                                                                                                
CHAIR STEVENS said SB 136 is significant in that it represents a                                                                
major change to education.                                                                                                      
                                                                                                                                
9:10:24 AM                                                                                                                    
SENATOR HUGHES  asked to hear the  commissioner's perspective and                                                               
how he thinks this might help students.                                                                                         
                                                                                                                                
CHAIR  STEVENS pointed  out that  the  commissioner is  mentioned                                                               
several times and  has a lot of responsibilities  under the bill.                                                               
He called Education Commissioner Johnson to the table.                                                                          
                                                                                                                                
9:11:17 AM                                                                                                                    
MICHAEL  JOHNSON, Ph.D.,  Commissioner,  Department of  Education                                                               
and  Early Development  (DEED),  Juneau, Alaska,  noted that  the                                                               
Alaska  Education  Challenge  that   started  several  years  ago                                                               
established five  priorities. One  is tribal compacting  and that                                                               
conversation has been happening in  the legislature, in the state                                                               
board,  and in  school  districts across  the  state. He  thanked                                                               
Senator  Stevens for  introducing the  bill and  agreed with  Mr.                                                               
Lamkin that this  legislation is a significant change  in how the                                                               
state delivers  public education. It  is not a simple  issue, but                                                               
what  is simple  is that  Native people  are ready,  willing, and                                                               
able  to  provide  an  education  for  their  children,  possibly                                                               
through tribal  compacting. He said  he looks forward  to hearing                                                               
from tribal leaders, school  districts, families, and communities                                                               
about how  this can help  tribes take ownership of  the education                                                               
for their children.                                                                                                             
                                                                                                                                
CHAIR  STEVENS asked  what  the difference  is  between a  tribal                                                               
school and a charter school.                                                                                                    
                                                                                                                                
COMMISSIONER  JOHNSON  replied tribal  leaders  will  be able  to                                                               
answer  more  fully but  tribal  compacting  is a  government-to-                                                               
government  negotiation  for  how educational  services  will  be                                                               
delivered.                                                                                                                      
                                                                                                                                
SENATOR  HUGHES  asked why  he  believes  this is  necessary  and                                                               
better  than what  the state  has  now and  whether the  governor                                                               
supports the concept.                                                                                                           
                                                                                                                                
9:13:52 AM                                                                                                                    
COMMISSIONER  JOHNSON   answered  that  the  governor   has  been                                                               
exploring the  issue independently and stated  support for tribal                                                               
compacting  during  the  Alaska Federation  of  Natives  meeting.                                                               
Commissioner  Johnson  said the  tragic  achievement  gap in  the                                                               
state  indicates that  there is  a  need. Further,  there is  the                                                               
capacity, the will,  and the inspiration in  the Native community                                                               
to provide educational  services to their children.  This is what                                                               
the state  has always  said is  needed in  the system  and tribal                                                               
leaders have said  they're ready and willing and  would like help                                                               
on this.                                                                                                                        
                                                                                                                                
SENATOR HUGHES  related that when  she first became chair  of the                                                               
Education she  worked to get  up to speed  on the issues  and was                                                               
troubled that things had not improved  in the 20 plus years since                                                               
her children  attended rural  schools. She  said she  was looking                                                               
for reassurance  that outside of the  general feel-good concepts,                                                               
that  the bill  had  accountability features  to  ensure that  it                                                               
would shrink the achievement gap.                                                                                               
                                                                                                                                
9:16:19 AM                                                                                                                    
COMMISSIONER  JOHNSON replied  he  cannot  guarantee that  either                                                               
tribal  compacting or  the current  public education  system will                                                               
work  for every  student,  but he  can commit  to  work with  the                                                               
legislature,   school  districts,   and  families   to  establish                                                               
policies that have proven to be  effective and to provide and set                                                               
the conditions that are necessary for  kids to learn. In terms of                                                               
tribal compacting,  he said  he starts  with the  assumption that                                                               
while he  cares deeply  about every student,  it is  the families                                                               
and tribes that  care the most about their  success. He expressed                                                               
excitement about  the conversation  and the specific  ideas about                                                               
the conditions that  will most likely lead to  student success in                                                               
a tribal compact school.                                                                                                        
                                                                                                                                
SENATOR HUGHES asked if there  was evidence from any other states                                                               
or  reservations that  show that  a tribal  compact school  works                                                               
better for students.                                                                                                            
                                                                                                                                
COMMISSIONER  JOHNSON  replied  he  does not  have  any  specific                                                               
examples,  but Washington  State,  through the  Bureau of  Indian                                                               
Affairs schools,  has done tribal  compacting. He noted  that Mr.                                                               
Lamkin  indicated  seven  schools.   He  said  someone  from  the                                                               
department and the tribes could  give specific examples of tribal                                                               
compact schools that have worked, but  he would point to the work                                                               
tribes have  done with  the health  care system  in the  state to                                                               
improve health outcomes.                                                                                                        
                                                                                                                                
SENATOR  HUGHES  asked  if  tribal  compacting  allows  a  Native                                                               
corporation to help a school financially.                                                                                       
                                                                                                                                
COMMISSIONER JOHNSON answered that he  only knew that tribes have                                                               
access to funding that other entities may not have.                                                                             
                                                                                                                                
SENATOR  HUGHES   shared  that   she  was  concerned   about  the                                                               
preference piece  and wondered  if that would  be discussed  in a                                                               
Judiciary Committee hearing.                                                                                                    
                                                                                                                                
CHAIR STEVENS noted  that the state should see how  it is working                                                               
in  Washington State  since Washington  is a  few years  ahead in                                                               
implementation.  He  added  that  as he  understands  it,  tribal                                                               
compacting would be entirely voluntary.                                                                                         
                                                                                                                                
9:21:18 AM                                                                                                                    
SENATOR COGHILL  said the  idea came up  in the  Alaska Education                                                               
Challenge and  as he recalls, there  were not many details  but a                                                               
lot of the  conversation about how to get local  input and buy-in                                                               
into education.  He said  some of  the questions  the legislature                                                               
would watch are how a tribal group  works as a school in a school                                                               
district  and what  the impacts  are  to make  some people  state                                                               
employees. He  said the benefit  that most people expect  is that                                                               
it  will come  from home  organically and  yet dovetail  with the                                                               
goal of excellence in education.                                                                                                
                                                                                                                                
COMMISSIONER JOHNSON  agreed with  the characterization.  He also                                                               
agreed with Senator Hughes that  a lot of statements about tribal                                                               
compacting are feel-good  statements and with Mr.  Lamkin that it                                                               
will be a complex conversation.  Changing the current system will                                                               
not be simple,  but if the conversation is healthy  and robust it                                                               
has  a chance  to  improve outcomes,  which everyone  desperately                                                               
wants, he said.                                                                                                                 
                                                                                                                                
9:23:50 AM                                                                                                                    
SENATOR  COGHILL  commented that  tribal  governance  has been  a                                                               
growing body of  law but there are still some  open questions. He                                                               
said it's  important that tribes are  willing to take on  some of                                                               
the  responsibility for  education. He  said legislators  will be                                                               
interested  in hearing  how  a  tribal group  might  look at  the                                                               
requirements in  the bill. Legislators look  at education through                                                               
the  view  of  districts.  Tribe members  consider  their  tribal                                                               
group.  How  that intersects  will  be  difficult. Making  people                                                               
state employees  for the  purposes of retirement  may be  a reach                                                               
too far.  The responsibilities and  requirements may get  too far                                                               
afield for  tribal groups.  The bill  would create  something new                                                               
between  tribes and  states. It  is a  worthy effort,  but it  is                                                               
brand new. The state has  argued about whether Alaska has tribes.                                                               
Then  funds started  flowing for  federally recognized  tribes to                                                               
the benefit  of Alaska in huge  ways, as noted with  health care.                                                               
His focus  will be how  to lift children  the best way  the state                                                               
can and how to grow a healthier community with better education.                                                                
                                                                                                                                
CHAIR  STEVENS  said there  was  no  intention of  making  tribal                                                               
schools  anything less  than  what  the state  has  in all  other                                                               
schools. No  fewer demands  or requirements.  He relayed  that he                                                               
encountered  someone who  expressed  love for  this bill  because                                                               
tribal schools  will not  have to  have certificated  teachers or                                                               
take all the  tests the federal government requires,  but that is                                                               
not true  at all. He  asked Commissioner Johnson to  confirm that                                                               
there will be certificated teachers  and there will be testing in                                                               
order to get federal funds.                                                                                                     
                                                                                                                                
COMMISSIONER JOHNSON  replied that was his  understanding of bill                                                               
through  Mr. Lamkin's  sectional analysis.  SB 136  treats tribal                                                               
compacted schools  as a  school within  a school  district, under                                                               
the same policies.                                                                                                              
                                                                                                                                
CHAIR STEVENS said, "It's an  enormous responsibility that tribes                                                               
will be taking on and if I  were them, I'd be very, very cautious                                                               
because  it's not  easy. It's  going to  be a  tough lift,  but I                                                               
think we have to give them that opportunity if we can."                                                                         
                                                                                                                                
SENATOR  HUGHES  commented  that  she always  goes  back  to  the                                                               
student. She  asked what checks  would be  in place and  what the                                                               
oversight from the district would be.                                                                                           
                                                                                                                                
9:28:14 AM                                                                                                                    
COMMISSIONER JOHNSON  responded that if tribal  compacted schools                                                               
are  schools   that  function  within  a   school  district,  the                                                               
accountability  would  not  be  different  from  what  the  state                                                               
currently  has. The  consequences  for not  having good  outcomes                                                               
would be the same.                                                                                                              
                                                                                                                                
CHAIR STEVENS  added that there  is virtually a  contract between                                                               
the commissioner and  the tribal entity that has  a closure date.                                                               
If things do  not improve within that timeframe, there  will be a                                                               
return to  the old  system. But  everyone would  be given  a fair                                                               
opportunity to see if it would work.                                                                                            
                                                                                                                                
SENATOR  HUGHES pointed  out that  the committee  is having  this                                                               
discussion  because the  state  has had  schools  that have  been                                                               
failing for a while.  She said SB 6 may help but  it is a concern                                                               
to talk  about potentially shifting  back to what is  not holding                                                               
schools accountable now.  She said that is not  the assurance she                                                               
is looking for.                                                                                                                 
                                                                                                                                
CHAIR STEVENS asked the commissioner  to compare tribal compacted                                                               
schools  to Mt.  Edgecumbe High  School,  which is  not a  tribal                                                               
school,  but  it is  successful.  His  observation is  that  many                                                               
Native leaders  today came from  that program. While  not exactly                                                               
what  the committee  is  talking about,  it is  an  example of  a                                                               
school taking  on responsibility  and being successful.  He noted                                                               
that Mt. Edgecumbe is also the commissioner's responsibility.                                                                   
                                                                                                                                
9:31:27 AM                                                                                                                    
COMMISSIONER  JOHNSON  explained  that  Mt. Edgecumbe  is  not  a                                                               
tribal compact  school, but what they  have in common is  that it                                                               
is a choice. Families or tribes  would have an option about where                                                               
to send children. Mt. Edgecumbe  represents a choice for families                                                               
throughout  the state  if  a  school in  their  community is  not                                                               
meeting their needs  or the families want  a different experience                                                               
for their  students. Tribal compact schools  also would represent                                                               
a choice for parents.                                                                                                           
                                                                                                                                
SENATOR HUGHES  asked if he  had a sense  of how many  tribes are                                                               
interested.                                                                                                                     
                                                                                                                                
COMMISSIONER JOHNSON replied he has  no specific numbers, but the                                                               
interest has  been growing. He  cited meetings the  Yupiit School                                                               
District has  held and some  legislative hearings, both  of which                                                               
raised questions  and highlighted complexities that  will have to                                                               
be  addressed. He  referenced her  statement that  SB 6  may help                                                               
underperforming  schools and  pointed out  that what  to do  with                                                               
schools that are  not working is a complex question  for not just                                                               
for tribal  compacting but the  entire system. Mt.  Edgecumbe has                                                               
been one answer. Tribal compact schools could also be one.                                                                      
                                                                                                                                
9:33:53 AM                                                                                                                    
SENATOR   COGHILL   said   the   legislature   is   looking   for                                                               
opportunities for everyone to help  students learn so choices are                                                               
important. He said  he's "game on" that the  Native community has                                                               
said it is willing  to step up and put a  shoulder to this effort                                                               
and the  compact is probably  the best  approach. He said  he can                                                               
see a  couple of  places in  the bill  that the  legislature will                                                               
struggle with,  but it will be  worth the struggle. He  said that                                                               
when he raises questions about certain  details, it is that he is                                                               
just trying  to figure  out how  to make it  work. It's  not that                                                               
he's against the idea.                                                                                                          
                                                                                                                                
9:36:35 AM                                                                                                                    
COMMISSIONER JOHNSON  pointed out  that tribal compacting  is not                                                               
just a reaction  to an achievement gap or failure  of the current                                                               
system.  It's  that  tribes  are  interested  in  tribal  compact                                                               
schools. He  said he is inspired  and eager for the  committee to                                                               
hear from the tribes.                                                                                                           
                                                                                                                                
CHAIR STEVENS asked him to  confirm that funding would be through                                                               
the foundation  formula and that  no additional large  amounts of                                                               
money would be required to make this work.                                                                                      
                                                                                                                                
COMMISSIONER JOHNSON  answered that it  would not be  an increase                                                               
in the  amount of money  the legislature spends on  education. It                                                               
would just be spending that money differently.                                                                                  
                                                                                                                                
CHAIR  STEVENS  called  Richard J.  Peterson,  President  of  the                                                               
Tlingit, and Haida Central Council, to the table.                                                                               
                                                                                                                                
9:38:16 AM                                                                                                                    
RICHARD J. PETERSON, President,  Central Council, Tlingit & Haida                                                               
Indian Tribes of Alaska, Juneau,  Alaska, thanked Senator Stevens                                                               
for putting  the bill  forward and  having this  conversation and                                                               
Senator Coghill  raising good  questions and  stimulating healthy                                                               
dialogue  over  the  years.  Mr.   Peterson  said,  "I  am  about                                                               
conversation. I think it starts  with having these conversations,                                                               
having  the courage  to  ask those  tough  questions, having  the                                                               
courage to not want to  sound offensive by asking hard questions,                                                               
but if  we don't ask those,  if we don't address  those, we won't                                                               
make the important strides that we need to make."                                                                               
                                                                                                                                
MR. PETERSON shared that Tlingit-Haida  is the largest of the 229                                                               
tribes in Alaska  and probably among the 10 to  15 largest in the                                                               
nation. If  all the Tlingits  and Haidas who lived  in Washington                                                               
State  were  counted,   they  would  be  the   largest  tribe  in                                                               
Washington. Tlingit-Haida  has 32,000  tribal citizens  with over                                                               
6,000 in Juneau.                                                                                                                
                                                                                                                                
MR. PETERSON  said, "To say that  we are vested in  this is quite                                                               
the  understatement. We  do not  want mediocrity,  and right  now                                                               
mediocrity  might be  an improvement.  We  are here.  We want  to                                                               
raise the bar.  We want our students to be  the highest achieving                                                               
students  that they  can be.  And  we also  do not  operate in  a                                                               
bubble. So, when  we talk about our students, we  really want all                                                               
students  to rise  up together  and to  be the  best versions  of                                                               
themselves and have the best opportunities for that."                                                                           
                                                                                                                                
MR. PETERSON  said he come  from one of the  smallest communities                                                               
in Southeast Alaska, Kasaan on Prince  of Wales Island. He was on                                                               
the Southeast Island School District  Board of Education for over                                                               
10 years  and was chair  for six  years. The school  district had                                                               
what  were labeled  Native and  non-Native schools.  "That always                                                               
chafed me a  little, to be honest because I  thought our interest                                                               
was all schools," he said.                                                                                                      
                                                                                                                                
MR. PETERSON  observed that the tribal  government, which brought                                                               
in more  money and operated  more services in his  community than                                                               
other governmental  entities, sometimes did  things predominantly                                                               
for  its  citizens,  but  it  tried  to  do  things  that  lifted                                                               
everybody.   His  mantra   is   "healthy   tribes  make   healthy                                                               
communities." Alaska has some of  highest achieving tribes in the                                                               
nation.  He  said  these  tribes are  cutting  edge  and  provide                                                               
complex services  to a  wide array of  people. They  operate Head                                                               
Start, which is  open to everyone, based on  income. That program                                                               
has very  stringent requirements, which demonstrates  that tribes                                                               
can do this  work. Their data shows that children  who go through                                                               
Head Start  are the highest  achieving students  throughout their                                                               
academic  careers. Tlingit-Haida  has  that  foundation to  build                                                               
upon.                                                                                                                           
                                                                                                                                
MR. PETERSON observed that compacting is a government-to-                                                                       
government agreement to administer  programs. It is a trust-based                                                               
relationship  repeatedly upheld  by  the Supreme  Court. He  said                                                               
"When  you talk  about the  things, Senator  Coghill and  Senator                                                               
Hughes, that I  heard you mention, we're going to  have to have a                                                               
trusting relationship.  We are going  to have to enter  this with                                                               
our eyes very wide  open, and we need to put  all those issues on                                                               
the table. And I can promise  you very little offends me. We have                                                               
to ask  the hard  questions and  not hide  behind not  wanting to                                                               
offend anybody. It does become  like Native, non-Native. I do not                                                               
operate in  that way. Recognition  of tribe's  inherent authority                                                               
to  serve  our citizens.  That  is  what our  tribal  sovereignty                                                               
stands  on.  .   .  Our  sovereignty  does   not  threaten  state                                                               
sovereignty or  municipal sovereignty. Sovereignty, to  me, tells                                                               
me that we have the inherent right to work together, to govern."                                                                
                                                                                                                                
9:43:46 AM                                                                                                                    
MR. PETERSON noted that he  was pleased to hear Senator Coghill's                                                               
comments about  land-based issues.  Jurisdictional issues  can be                                                               
divisive, but conversations and  agreements about compacting will                                                               
solve those. Tlingit and Haida  already executes federal compacts                                                               
with  the  Bureau   of  Indian  Affairs  on   behalf  of  several                                                               
communities in  Southeast, administering  sophisticated programs,                                                               
such  as   TANF  (Temporary   Assistance  for   Needy  Families),                                                               
employment  and  training,   childcare,  natural  resources,  and                                                               
economic development.  Tlingit-Haida is unique in  Alaska because                                                               
it is  not an Indian  Reorganization Act tribe.  Tlingit-Haida is                                                               
enacted by  an act of  Congress. That sets  it apart in  a unique                                                               
way. It  is also a  regional tribe  and the only  actual regional                                                               
tribe  in  Alaska.  There are  regional  tribal  nonprofits  that                                                               
operate by authority of village  tribes, whereas Tlingit-Haida is                                                               
a  tribe  and does  not  need  any other  tribe's  authorization.                                                               
Because of its  regional nature, it does serve  several tribes in                                                               
its communities  as a compact  tribe. It  is the same  thing that                                                               
Tlingit-Haida is proposing here,  to operate and administer funds                                                               
on   behalf   of  other   tribes.   It   is  a   very   important                                                               
responsibility,   one   of   trust,   which   Tlingit-Haida   has                                                               
demonstrated it can do.                                                                                                         
                                                                                                                                
MR.  PETERSON pointed  out  that  Tlingit-Haida already  delivers                                                               
early care and  learning services through Head  Start. While Head                                                               
Start is  not delivered  through compacting,  it is  an education                                                               
program  delivered in  coordination  with the  state and  federal                                                               
government.  This  is  an  example  of  how  Tlingit-Haida  might                                                               
partner  to deliver  education programming.  The State  of Alaska                                                               
supports  local  control. Tribal  compacting  is  the epitome  of                                                               
this.  Tribes  would exert  that  local  control. When  he  hears                                                               
elected leaders  in Alaska  debate issues, one  of the  topics is                                                               
always local  control. It does  not get  any more local  than the                                                               
tribes with 10,000 years of history.                                                                                            
                                                                                                                                
MR. PETERSON said tribal compacting  has the potential to enhance                                                               
educational delivery.  He brought up  Kasaan as a  community that                                                               
was split as  far as Native/non-Native, but the  tribe served the                                                               
school. At  times, his tribe  donated $30,000 to keep  the school                                                               
open for  every child, not  just Native children, but  for Kasaan                                                               
children.  That  is what  tribes  have  demonstrated. The  Indian                                                               
Health Service  compact with the  tribes in Alaska has  been held                                                               
up as the most successful health  compact in the nation. In their                                                               
communities, tribal groups are often  the only health service and                                                               
do not segregate or turn people  away. "That's the model. I think                                                               
that's demonstrated  time and again  that we're going to  hold up                                                               
our communities. We want to raise the bar," he said.                                                                            
                                                                                                                                
9:47:59 AM                                                                                                                    
MR. PETERSON said  everyone looks to children and  families to do                                                               
all that  can be done to  enhance education. He is  not satisfied                                                               
with  what  he  sees.  The   commissioner's  comments  hit  home.                                                               
Tlingit-Haida is  not interested  because the system  is failing.                                                               
Still,  Tlingit-Haida would  be  interested either  way since  it                                                               
wants to  raise the bar.  For various reasons,  these communities                                                               
are  not  performing at  the  level  they should.  That  includes                                                               
health, public safety,  and many issues. The  tribes have stepped                                                               
in to be  part of the solution and they  have a responsibility to                                                               
do  so. That  is something  they can  do and  these tribes  stand                                                               
ready to  do that.  The tribes have  demonstrated that  again and                                                               
again  through the  complex  programs that  they  run now.  These                                                               
tribes  reflect  the  health and  vitality  of  communities.  His                                                               
saying  that healthy  tribes makes  healthy communities  means it                                                               
makes healthy Alaskans.  On a personal note, he added  that he is                                                               
a proud  graduate of Mt.  Edgecumbe, class  of 1994. Many  of his                                                               
classmates are leaders in the  state, which was instilled in them                                                               
at Mt. Edgecumbe.                                                                                                               
                                                                                                                                
CHAIR  STEVENS said  he appreciated  Mr. Peterson's  comments and                                                               
leadership  and hoped  he would  be involved  as the  legislature                                                               
moved ahead with the bill.                                                                                                      
                                                                                                                                
9:50:07 AM                                                                                                                    
SENATOR HUGHES  thanked Mr. Peterson  for his  powerful testimony                                                               
and commitment  to Native and  non-Native students. She  said she                                                               
understood  that  all  health  centers   are  now  classified  as                                                               
community health  centers and do  not turn anyone  away. However,                                                               
when she and her husband, who  ran the health clinic, first lived                                                               
in  a rural  community, some  people had  to fly  to the  city to                                                               
receive care.  Her husband graciously  decided that he  would let                                                               
anyone come  to the clinic to  avoid the necessity of  flying out                                                               
for care. At  the time, the Native entity running  the clinic was                                                               
very accommodating  and gracious.  Those open arms  and welcoming                                                               
stance paved  the way for all  clinics to accept everyone  in the                                                               
village as  patients, which is  the right  thing to do.  She said                                                               
Mr. Peterson's testimony  points to schools having  the same open                                                               
arms. She offered her belief  that everyone is enriched by having                                                               
experiences with people from different backgrounds.                                                                             
                                                                                                                                
CHAIR STEVENS  expressed appreciation for Mr.  Peterson's and the                                                               
commissioner's  comments. Tlingit-Haida  and  the department  are                                                               
not just interested  because schools are failing but  to help the                                                               
system to  move forward,  to incorporate  what tribes  would like                                                               
schools to offer. He characterized this an important issue.                                                                     
                                                                                                                                
He called Ms. Singh to testify.                                                                                                 
                                                                                                                                
9:52:37 AM                                                                                                                    
NATASHA  SINGH,   General  Counsel,  Tanana   Chiefs  Conference,                                                               
Fairbanks, Alaska,  explained that tribal compacting  is when the                                                               
government and  the tribe enter  into a legal  agreement, whereby                                                               
the tribe  takes over  the duty  of the  government to  provide a                                                               
specific service.  Compacting with tribes  is not new  to Alaska.                                                               
For  26  years,  Alaska  tribes  and  tribal  organizations  have                                                               
compacted with  the federal Indian Health  Service. Tanana Chiefs                                                               
Conference (TCC)  is a  cosigner to the  Alaska compact  with the                                                               
Indian Health  Service and a  cosigner with the Bureau  of Indian                                                               
Affairs compact.  Through these  compacts, TCC  delivers services                                                               
related  to   natural  resources,  realty,   transportation,  and                                                               
medical and dental health care  to tribal members and villages in                                                               
the  most appropriate,  cost-effective, and  community-responsive                                                               
way.                                                                                                                            
                                                                                                                                
MS.  SINGH   asserted  that  tribal  health   organizations  have                                                               
demonstrated success  in health  care, specifically  by reversing                                                               
health care disparities  at a higher rate than  the Indian Health                                                               
Service. Tribal  health organizations  own their own  data, study                                                               
it, and  work with communities  to address issues, whether  it be                                                               
patient travel,  provider visits, facility maintenance,  and most                                                               
importantly, prevention  of disease. Tribal  health organizations                                                               
demand quality for  their people. In Fairbanks,  the Chief Andrew                                                               
Isaac  Health Center  is  able  to recruit  and  retain the  best                                                               
providers in  Fairbanks and train them  in culturally appropriate                                                               
care and communication. Tribal  health organizations have learned                                                               
that  despite the  best medical  education, medical  care is  not                                                               
effective if not done in a way Native people are responsive to.                                                                 
                                                                                                                                
MS. SINGH related that federal  law in the past prohibited tribal                                                               
health entities  from delivering health services  to non-Natives.                                                               
Tribes saw  this as  a hindrance  to delivering  community health                                                               
and advocated in Washington, D.C.,  to change this. Now providers                                                               
are able to  see nonbeneficiaries in tribal clinics.  In Tok, the                                                               
clinic sees  more nonbeneficiaries  or non-Natives  than Natives.                                                               
The comments from non-Natives have  been eye opening, showing how                                                               
effective tribal entities are in  providing health care services.                                                               
TCC also provides  services to non-Native veterans.  She said TCC                                                               
understands that the  standard health care model  must be tailor-                                                               
made for each community.                                                                                                        
                                                                                                                                
9:56:46 AM                                                                                                                    
MS. SINGH  added that  tribal compacting  for education  has this                                                               
same potential. As tribes have  enhanced health service delivery,                                                               
tribes have the potential to  enhance education delivery. As with                                                               
so many  other programs, the  underlying legal authority  for the                                                               
implementation  and  the  details  of   how  it  will  work  have                                                               
everything  to  do  with  its   potential  for  success.  Federal                                                               
compacting relies  on the  federal Indian  Self-Determination and                                                               
Education  Assistance  Act,  which  provides  the  authority  and                                                               
mandate  for  legal  agreements  between  the  two  parties.  TCC                                                               
strongly  recommends that  the state  legislature pass  a similar                                                               
state statute to dictate state-tribal compacting.                                                                               
                                                                                                                                
9:57:51 AM                                                                                                                    
MS. SINGH  said long-term outcomes with  Alaskan Native children,                                                               
as with  all children, are  vastly improved when they  are raised                                                               
in the  embrace of family  and community. Partnering  with tribes                                                               
to deliver  education can re-establish  a sense of  ownership and                                                               
pride  in  the public  education  system  with the  potential  to                                                               
improve educational outcomes.  Through education tribal compacts,                                                               
tribes  hope  to  retain teachers,  implement  Native  languages,                                                               
reduce  costs  through   administrative  services  and  community                                                               
planning, engage students, and  reverse education disparities for                                                               
rural  and  Native students.  Some  schools  are  in a  state  of                                                               
constant  flux  because  outside school  districts  manage  their                                                               
affairs.  By retaining  local management  of schools,  tribes can                                                               
better integrate and  train teachers for local  conditions to use                                                               
local opportunities in  concert with the tribes.  Tribes can also                                                               
develop  teacher   training  programs   for  people   from  their                                                               
communities, similar to the health  aide and tribal administrator                                                               
programs.  Tribal compacts  and  management of  schools can  help                                                               
local education be more responsive  to the state of Alaska Native                                                               
language emergency declaration by  directing resources and having                                                               
a  long-term  vision.  Native  languages  are  proven  to  engage                                                               
students in all realms of curriculum.                                                                                           
                                                                                                                                
MS.   SINGH   pointed  out   that   tribes   and  tribal   health                                                               
organizations   already   have   accounting,   human   resources,                                                               
information technology,  and legal staff. Savings  will come from                                                               
eliminating duplicate services  at school administrative centers.                                                               
Those  savings can  be passed  on to  classrooms. She  envisioned                                                               
that once tribes are in charge  of the schools that the community                                                               
and  school plans  will become  one. The  tribes can  implement a                                                               
more  holistic  and comprehensive  planning  for  such things  as                                                               
capital  improvement   and  social  determinants   of  education.                                                               
Communities  will  have  a  greater sense  of  ownership  of  the                                                               
schools,  their  activities,  and  successes.  Under  the  tribal                                                               
compact model,  students will own  the schools and can  be taught                                                               
to take  care of the institution  in new ways. Under  the current                                                               
model,  a  far-off  school  district or  state  entity  owns  the                                                               
schools.  Tribes  stand   ready  to  work  with   the  state  and                                                               
legislature to  design systems  that will allow  them to  work as                                                               
partners and improve educational outcomes for children.                                                                         
                                                                                                                                
10:01:09 AM                                                                                                                   
CHAIR STEVENS said Ms. Singh  caught his attention when she spoke                                                               
about current programs to train  health aides and tribal leaders.                                                               
He  asked  whether  compacting  would  create  opportunities  for                                                               
students in villages to become teachers in their communities.                                                                   
                                                                                                                                
10:01:42 AM                                                                                                                   
MS. SINGH replied, "Absolutely. We  believe that this will be key                                                               
to  success. And  really, it  is likely  a reason  why our  rural                                                               
schools and  schools across Alaska  have struggled.  It's because                                                               
we lack  Native teachers." Historically,  when the  University of                                                               
Alaska  programs  have focused  on  training  Native students  to                                                               
become  teachers,  these  students achieved  success.  As  tribes                                                               
implement  tribal  compacts  at   schools,  it  is  important  to                                                               
implement a training program through  the University of Alaska to                                                               
ensure  a diverse  faculty for  tribal schools.  The state  needs                                                               
Native teachers, she said.                                                                                                      
                                                                                                                                
CHAIR STEVENS acknowledged  that this is an  important issue. The                                                               
state is  facing a  shortage of  teachers and  currently recruits                                                               
teachers from  all over  the country.  Often, these  teachers are                                                               
not satisfied  because they were  unfamiliar with  the conditions                                                               
in rural  Alaska. He said  anything she can  do to help  would be                                                               
appreciated. He  understands that could  be an added  impetus for                                                               
this program.                                                                                                                   
                                                                                                                                
SENATOR HUGHES shared that she  was thinking of the innovation in                                                               
the  Native  medical community  not  only  with the  health  aide                                                               
program,  but  also with  the  dental  therapist program.  It  is                                                               
viewed as a model and has been  a game changer for dental care at                                                               
Native health  clinics. That gives  her hope that  tribal compact                                                               
schools  might  try something  that  could  be helpful  to  their                                                               
students.                                                                                                                       
                                                                                                                                
CHAIR  STEVENS  asked  Ms. Caouette  from  Legislative  Legal  to                                                               
comment about the question of discrimination.                                                                                   
                                                                                                                                
10:05:48 AM                                                                                                                   
MEERA CAOUETTE, Legislative  Counsel, Legislative Legal Services,                                                               
Legislative  Affairs Agency,  Juneau, Alaska,  said most  of this                                                               
bill is modeled on the  statutes from Washington State for tribal                                                               
compacts.                                                                                                                       
                                                                                                                                
CHAIR STEVENS asked what those factors are.                                                                                     
                                                                                                                                
MS. CAOUETTE answered that the  provisions amend existing law and                                                               
allow the  tribal compact schools  to prioritize  employment from                                                               
the  federally recognized  tribes.  If the  school's capacity  is                                                               
insufficient to enroll all students  that apply, the school could                                                               
prioritize students from those tribes.  It is not required but it                                                               
is allowed.                                                                                                                     
                                                                                                                                
CHAIR STEVENS said that would be  an issue that for the Judiciary                                                               
Committee.                                                                                                                      
                                                                                                                                
SENATOR HUGHES asked  whether DEED would need  any extra staffing                                                               
or just use its current resources.                                                                                              
                                                                                                                                
10:07:52 AM                                                                                                                   
HEIDI   TESHNER,   Director,   Finance  and   Support   Services,                                                               
Department  of Education  and Early  Development (DEED),  Juneau,                                                               
Alaska, responded  that because the  number of tribes  that might                                                               
opt to do this is not known, the cost for DEED is indeterminate.                                                                
                                                                                                                                
SENATOR HUGHES said  the initial set up of a  compact is work for                                                               
the department, but  once it up and running,  she speculated that                                                               
the  requirements would  be the  same as  for other  schools. She                                                               
asked whether  more staffing would  be needed for setting  up the                                                               
compacts or for the long term.                                                                                                  
                                                                                                                                
MS. TESHNER replied DEED would need  staffing just as it does for                                                               
Mt. Edgecumbe,  but without  knowing the size  of the  school and                                                               
the number of kids and schools the cost is indeterminate.                                                                       
                                                                                                                                
SENATOR HUGHES said other than  figuring out the compact, she did                                                               
not understand  what the  extra work is  for the  department. She                                                               
suggested that Ms. Teshner could talk to her about that offline.                                                                
                                                                                                                                
MS.  TESHNER answered  that she  would be  happy to  talk offline                                                               
about the issue.                                                                                                                
                                                                                                                                
SENATOR COGHILL  related his understanding that  federal compacts                                                               
in  the health  care system  are not  with federal  employees yet                                                               
under  this  bill,  the  employees   would  be  considered  state                                                               
employees.  He  suggested  that  is  something  that  legislators                                                               
should discuss. He said he is  not opposed to compacting, but the                                                               
relationship  is  not  like a  charter  school  relationship.  He                                                               
expressed concern that  it could be difficult to  manage. He also                                                               
wondered whether  the state's role  is only to  have expectations                                                               
about outcomes  or if it  will be  involved in management  of the                                                               
schools.                                                                                                                        
                                                                                                                                
10:12:23 AM                                                                                                                   
CHAIR STEVENS  noted that the  committee would look at  the three                                                               
indeterminate fiscal  notes at a  later date. He asked  if anyone                                                               
in the room wanted to testify  and ascertained that no one wished                                                               
to testify.                                                                                                                     
                                                                                                                                
SB 136 was held in committee.