Legislature(2013 - 2014)SENATE FINANCE 532

04/25/2014 08:00 AM FREE CONFERENCE COMMITTEE ON HB 278


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08:14:37 AM Start
08:15:18 AM HB278
08:50:21 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= HB 278 EDUCATION
Moved FCCS HB 278 Out of Committee
                        HB 278-EDUCATION                                                                                    
                                                                                                                                
8:15:18 AM                                                                                                                    
                                                                                                                                
CHAIR HAWKER announced  that the only order of  business would be                                                               
HOUSE  BILL  NO.  278,  "An   Act  increasing  the  base  student                                                               
allocation  used  in the  formula  for  state funding  of  public                                                               
education;   repealing    the   secondary    student   competency                                                               
examination  and related  requirements; relating  to high  school                                                               
course credit  earned through assessment;  relating to  a college                                                               
and career readiness assessment  for secondary students; relating                                                               
to  charter  school  application  appeals  and  program  budgets;                                                               
relating  to  residential  school  applications;  increasing  the                                                               
stipend  for  boarding  school students;  extending  unemployment                                                               
contributions for  the Alaska technical and  vocational education                                                               
program; relating  to earning high  school credit  for completion                                                               
of   vocational  education   courses   offered  by   institutions                                                               
receiving  technical and  vocational  education program  funding;                                                               
relating to education tax  credits; making conforming amendments;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
[Before the committee was the FCCS HB 278, Version Q].                                                                          
                                                                                                                                
CHAIR HAWKER  directed attention  to the  work draft,  Version Q,                                                               
before the  committee.  The  Free Conference Committee  has dealt                                                               
with subsequent issues although,  several questions still need to                                                               
be  addressed.    He  asked  for  further  clarification  on  the                                                               
distinction   between   "residential   schools"   and   "boarding                                                               
schools."                                                                                                                       
                                                                                                                                
8:16:02 AM                                                                                                                    
                                                                                                                                
MIKE  HANLEY, Commissioner,  Department  of  Education and  Early                                                               
Development (EED), noted that previously  the department has used                                                               
the term "boarding  schools" and so that term  will be referenced                                                               
in statute;  however, the current term  is "residential schools."                                                               
Thus, he  thought the terms  were used synonymously;  however, in                                                               
further response to a question,  he indicated that the department                                                               
currently uses the term "residential schools."                                                                                  
                                                                                                                                
8:16:40 AM                                                                                                                    
                                                                                                                                
CHAIR  HAWKER recalled  Chair Meyer  also has  a question  on the                                                               
repeal for  the [High School Graduation  Qualifying Exam (HSGQE)]                                                               
exit exam.                                                                                                                      
                                                                                                                                
CHAIR  MEYER  related  that  the exit  exam  applied  to  charter                                                               
schools.   He  wanted to  be certain  that "residential  schools"                                                               
would also fall under the same guidelines and policies.                                                                         
                                                                                                                                
COMMISSIONER HANLEY  responded that the  HSGQE and the  repeal of                                                               
the exam applies to all  schools.  Interestingly, charter schools                                                               
are  slightly different  and have  increased autonomy.   He  then                                                               
referred to  page [8], line  27, which says that  charter schools                                                               
are exempt  from the local  school district's  textbook, program,                                                               
curriculum, and  scheduling requirements.   However,  the statute                                                               
requires  students  to  take  the   HSGQE,  which  is  referenced                                                               
separately in order  to put some "sideboards"  on their autonomy,                                                               
but again,  the HSGQE exit  exam applies  to all schools  and the                                                               
repeal will also apply to all schools.                                                                                          
                                                                                                                                
8:19:19 AM                                                                                                                    
                                                                                                                                
CHAIR MEYER  moved to adopt  Amendment 1,  labeled 28-GH2716\Q.3,                                                               
Mischel, 4/24/14, which read as follows:                                                                                        
                                                                                                                                
     Page 2, lines 8 - 9:                                                                                                       
          Delete "the school size factor and the school                                                                       
     district cost factor for"                                                                                                
                                                                                                                                
     Page 38, line 12:                                                                                                          
          Delete "January 1, 2016"                                                                                              
          Insert "June 15, 2015"                                                                                                
                                                                                                                                
     Page 38, line 20:                                                                                                          
          Delete "January 31, 2016"                                                                                             
          Insert "June 15, 2015"                                                                                                
                                                                                                                                
     Page 38, line 24:                                                                                                          
          Delete "STUDY"                                                                                                        
          Insert "STUDIES"                                                                                                      
                                                                                                                                
     Page 38, line 25:                                                                                                          
          Delete "a study"                                                                                                      
          Insert "two studies"                                                                                                  
                                                                                                                                
     Page 38, line 26:                                                                                                          
          Delete "January 20, 2015"                                                                                             
          Insert "June 15, 2015"                                                                                                
          Following "entity":                                                                                                   
          Insert "or entities"                                                                                                  
                                                                                                                                
     Page 38, lines 29 - 30:                                                                                                    
          Delete "The study must include consideration of"                                                                      
          Insert "The studies must include, but are not                                                                         
     limited to, consideration of                                                                                               
               (1)  for the first study,"                                                                                       
                                                                                                                                
     Page 38, line 31:                                                                                                          
          Delete "(1)"                                                                                                          
          Insert "(A)"                                                                                                          
          Delete "sustainable"                                                                                                  
          Insert "predictable"                                                                                                  
                                                                                                                                
     Page 39, line 2:                                                                                                           
          Delete "(2)"                                                                                                          
          Insert "(B)"                                                                                                          
                                                                                                                                
     Page 39, line 4:                                                                                                           
          Delete "(3)"                                                                                                          
          Insert "(C)"                                                                                                          
                                                                                                                                
     Page 39, line 6:                                                                                                           
          Delete "(4)"                                                                                                          
          Insert "(2) for the second study,"                                                                                    
                                                                                                                                
CHAIR HAWKER objected for discussion purposes.                                                                                  
                                                                                                                                
8:19:34 AM                                                                                                                    
                                                                                                                                
JULI  LUCKY,  Staff,  Representative Mike  Hawker,  Alaska  State                                                               
Legislature,  identified   an  earlier   concern  which   is  the                                                               
consolidation of the LB&A reports  and to ensure that the reports                                                               
are due at same time so  all the information will be available to                                                               
the legislature as it moves  forward to determine the best school                                                               
funding method and other decisions.                                                                                             
                                                                                                                                
CHAIR HAWKER  interjected and  directed attention  to page  38 of                                                               
Version Q to the three reports.                                                                                                 
                                                                                                                                
MS.  LUCKY said  that Amendment  1  will standardize  all of  the                                                               
reports, which are  all due on June 15, 2015.   Beginning on page                                                               
38, line  31, Amendment 1 would  also bifurcate the study  of the                                                               
policy and methodology from the  data.  She directed attention to                                                               
page 38,  line 31, through  page 39,  line 6, to  paragraphs 1-3,                                                               
which comprises one  study and paragraph 4 [page  39, lines 7-9],                                                               
which  comprises the  second  study.   She  highlighted two  word                                                               
changes  to address  the  concern  that the  scope  might be  too                                                               
narrow.    First,  "but  are not  limited  to  consideration"  is                                                               
inserted on  page 38,  lines 29-30, which  would then  read, "The                                                               
studies must  include, but are  not limited to,  consideration of                                                               
...."    Secondly,  on  page   38,  line  31,  it  would  remove,                                                               
"sustainable" and insert, "predictable."                                                                                        
                                                                                                                                
CHAIR HAWKER  asked for  comments on  whether this  language will                                                               
ameliorate Senator Hoffman's concerns.                                                                                          
                                                                                                                                
SENATOR HOFFMAN answered that it does.                                                                                          
                                                                                                                                
CHAIR  HAWKER removed  his  objection.   There  being no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
8:22:21 AM                                                                                                                    
                                                                                                                                
CHAIR HAWKER directed attention to fiscal notes.                                                                                
                                                                                                                                
8:23:06 AM                                                                                                                    
                                                                                                                                
CHAIR HAWKER  said the  fiscal notes  are largely  unchanged from                                                               
the prior bill.  The fiscal  notes have been conformed to Version                                                               
Q, with  the biggest change  being the rebalancing the  amount of                                                               
money  allocated  inside  the  BSA  and  outside  the  BSA.    He                                                               
referenced  that the  fiscal  notes are  identified  by the  [OMB                                                               
Component] number and  the page number for each fiscal  note.  He                                                               
referred  to  fiscal note  1,  [OMB  component number  141  dated                                                               
4/23/14],  noting  the  information contained  in  the  narrative                                                               
shows the BSA increases and  the funding outside the BSA [outside                                                               
the foundation formula].  He  characterized this as splitting the                                                               
$300  million  appropriation   for  educational  funding  equally                                                               
between inside  the BSA and  outside the  BSA for the  next three                                                               
fiscal years [FY 15, FY16, and FY 17].                                                                                          
                                                                                                                                
8:24:32 AM                                                                                                                    
                                                                                                                                
CHAIR HAWKER directed  attention to fiscal note  2 [OMB component                                                               
number 2929, dated 4/23/14], which  funds the BSA and outside the                                                               
BSA, as well  as the correspondence school  funding increase from                                                               
80  percent  to 90  percent,  and  the $43,998.4  charter  school                                                               
funding   within  the   funding   formula.     These  funds   are                                                               
appropriated into the public education  fund and this fiscal note                                                               
transfers that funding  from the public education  fund and makes                                                               
it available each year to  fund the expenditures disclosed in the                                                               
first fiscal note just discussed.                                                                                               
                                                                                                                                
8:25:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO  III  related his  understanding  that  this                                                               
fiscal note does include the $25  million in the House version of                                                               
the operating budget outside the BSA.                                                                                           
                                                                                                                                
CHAIR HAWKER  said that  that the  aforementioned $25  million no                                                               
longer exists since the House  and Senate versions were adjusted.                                                               
This fiscal note recognizes the compromises [in FCCS HB 278].                                                                   
                                                                                                                                
8:26:02 AM                                                                                                                    
                                                                                                                                
CHAIR MEYER  asked whether Representative Kito  III was referring                                                               
to the  governor's $25 million  outside the BSA, which  the House                                                               
increased to $30 million that is now included in the total.                                                                     
                                                                                                                                
REPRESENTATIVE KITO III agreed.                                                                                                 
                                                                                                                                
CHAIR MEYER referred  to the spreadsheet attached  to fiscal note                                                               
1.                                                                                                                              
                                                                                                                                
CHAIR HAWKER suggested the committee  review all the fiscal notes                                                               
first   and  then   have  Commissioner   Hanley   speak  to   the                                                               
spreadsheet.                                                                                                                    
                                                                                                                                
8:26:53 AM                                                                                                                    
                                                                                                                                
CHAIR  HAWKER referred  to fiscal  note 3  [OMB component  number                                                               
2796, dated  4/23/2014], which  provides the  fiscal consequences                                                               
of establishing  the three-year pilot  program for  middle school                                                               
students  related  to  the  STEM  program  [Science,  Technology,                                                               
Engineering, and Math]  that incorporates the ANSEP  concept.  He                                                               
characterized  it  as  an omnibus  fiscal  note,  which  includes                                                               
replacement of  the secondary school competency  [exit] exam with                                                               
the ability to  participate in the ACT or SAT,  for $525,000.  It                                                               
also includes  the House requested information  on performance of                                                               
students of military  personnel for $80,000 in FY  15 and $10,000                                                               
in  outlying  years.   In  addition,  it  includes the  $500  per                                                               
student start-up  grant for charter schools,  the TVEP [Technical                                                               
and Vocational Education Program] change  from .15 percent to .16                                                               
percent,  and  adds  the  pilot program  for  middle  schools  in                                                               
science and related activities of $3 million, he said.                                                                          
                                                                                                                                
8:28:23 AM                                                                                                                    
                                                                                                                                
CHAIR HAWKER  referred to  fiscal note  4, [OMB  component number                                                               
2737; dated 4/19/14]  for $620,000 [$620.1] to  the Department of                                                               
Education and Early  Development (EED) to fund  the prototype for                                                               
modular  schools  consistent  across Alaska  focusing  on  energy                                                               
efficiency,  common  designs  with  the goal  to  achieve  higher                                                               
quality  school  facilities  that  will  require  less  cost  for                                                               
maintenance and engineering.                                                                                                    
                                                                                                                                
8:29:01 AM                                                                                                                    
                                                                                                                                
CHAIR HAWKER directed  attention to fiscal note  5 [OMB component                                                               
number  148,   dated  4/19/14]  related   to  $2.2   million  for                                                               
residential  schools to  raise the  funding level  to the  actual                                                               
cost of providing boarding school  services.  He stated that this                                                               
will provide full funding for the per pupil monthly stipend.                                                                    
                                                                                                                                
CHAIR HAWKER directed attention to  fiscal note 6, [OMB component                                                               
number 208 dated 4/23/2014] which  will provide $5 million to the                                                               
Alaska  Library  and  Museums   for  initial  funding  to  expand                                                               
broadband   Internet  services   across   the  state,   including                                                               
participation  in  a  federal  program  to  bring  the  first  10                                                               
megabits of  download capability.   The federal  goal will  be to                                                               
achieve 100 megabits in the near future, he said.                                                                               
                                                                                                                                
8:30:14 AM                                                                                                                    
                                                                                                                                
CHAIR HAWKER directed attention to  fiscal note 7, [OMB component                                                               
number 153,  dated 4/24/2014], which accompanies  the school debt                                                               
reimbursement  changes.   He related  that this  is indeterminate                                                               
since it  will depend  on which districts  take advantage  of the                                                               
program.                                                                                                                        
                                                                                                                                
CHAIR MEYER asked to clarify that this is a credit to the state.                                                                
                                                                                                                                
CHAIR HAWKER agreed;  stating that this would  maintain the 70/30                                                               
program as it  stands and adjusting the 60/40 program  to a 50/50                                                               
split,  which  will  place  a  little  more  of  the  burden  for                                                               
educational funding on local communities.                                                                                       
                                                                                                                                
8:30:52 AM                                                                                                                    
                                                                                                                                
CHAIR HAWKER directed  attention to fiscal note  8 [OMB component                                                               
number 773,  dated 4/24/2014], provides $650,000  [$650.0] to the                                                               
Legislative  Budget  &  Audit Committee,  Legislative  Audit,  to                                                               
conduct  the   two  previously  discussed  studies   included  in                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
CHAIR HAWKER directed  attention to fiscal note  9 [OMB component                                                               
number 56,  dated 4/24/2014], which provides  $610,600 [$610.6]to                                                               
the  Centralized  Administrative  Services for  the  purposes  of                                                               
conducting a  salary and benefits  schedule for  school districts                                                               
that includes  an evaluation of  and recommendations  for teacher                                                               
tenure across the state.                                                                                                        
                                                                                                                                
CHAIR HAWKER  directed attention to  fiscal note 10  [fiscal note                                                               
number 27,  published 4/19/2014],  which reflects the  changes to                                                               
the TVEP.   It  provides additional  funding, and  recognizes the                                                               
Ilisagvik vocational technical  program in Barrow.   It would put                                                               
all of  the university funding  into one pool and  will eliminate                                                               
specific  earmarks  for  the individual  campuses;  however,  the                                                               
programs  within the  university system  have indicated  they can                                                               
have a  greater total  funding as a  result of  this methodology.                                                               
He characterized  it as being  a restructuring as well  as adding                                                               
Ilisagvik as a recognized entity.                                                                                               
                                                                                                                                
8:32:19 AM                                                                                                                    
                                                                                                                                
CHAIR HAWKER directed attention to  fiscal note 11 [OMB component                                                               
number 1296,  dated 4/18/14], which recognizes  the consolidation                                                               
of the TVEP program and the additional funding for the program.                                                                 
                                                                                                                                
CHAIR  HAWKER  summarized  that   these  11  fiscal  notes  which                                                               
accompany the proposed  FCCS for HB 278  total approximately $300                                                               
million, based on  the estimated student enrollment  for the next                                                               
three years.  The aggregate  $300 million represents $100 million                                                               
per year for the next three fiscal years.                                                                                       
                                                                                                                                
CHAIR  MEYER,  referred to  the  fiscal  note 1  spreadsheet  and                                                               
pointed  to  Anchorage  as  an example,  and  asked  for  further                                                               
clarification  that   the  total  amount  the   Anchorage  School                                                               
District will receive is $24,438,413 for FY 15.                                                                                 
                                                                                                                                
8:33:24 AM                                                                                                                    
                                                                                                                                
LES  MORSE,  Deputy  Commissioner, Office  of  the  Commissioner,                                                               
Department of Education and Early Development (EED), agreed.                                                                    
                                                                                                                                
CHAIR MEYER asked  for further clarification on  how the breakout                                                               
works  between  charter   schools,  correspondence  schools,  and                                                               
neighborhood schools.                                                                                                           
                                                                                                                                
MR. MORSE answered  that charter school funding  is an indication                                                               
of an increase relative to the  change in size factor for charter                                                               
schools.   He related that  any district affected by  that change                                                               
is noted in the spreadsheet.   He then offered to provide a clean                                                               
spreadsheet to the committee.                                                                                                   
                                                                                                                                
CHAIR MEYER  asked whether Juneau  and Kenai are the  only school                                                               
districts affected by this.                                                                                                     
                                                                                                                                
MR. MORSE answered that under  the current enrollments those were                                                               
only two  school districts affected  in the  current calculation;                                                               
however, other districts could be affected in the future.                                                                       
                                                                                                                                
8:36:07 AM                                                                                                                    
                                                                                                                                
CHAIR  MEYER questioned  whether  dropping the  enrollment to  75                                                               
students may affect other school districts in the future.                                                                       
                                                                                                                                
MR. MORSE responded  any change would be funding  rolled into the                                                               
formula  funding.   He offered  his belief  that the  spreadsheet                                                               
represents  a  pretty  accurate  picture   of  the  future.    He                                                               
acknowledged that if  there are new charter schools  it will have                                                               
an  impact; however,  there would  also be  an adjustment  in the                                                               
amount  of funding  to the  district since  the students  will be                                                               
funded through the charter schools.   Although it is difficult to                                                               
predict the  future, these figures  are accurate for  the current                                                               
look of charter schools throughout the state, he said.                                                                          
                                                                                                                                
8:37:15 AM                                                                                                                    
                                                                                                                                
COMMISSIONER HANLEY said that largely  the impetus behind this is                                                               
the  recognition that  it is  a challenge  for some  districts to                                                               
reach  150  students  for full  funding,  especially  in  smaller                                                               
communities.    He  said  that   Anchorage  may  have  been  less                                                               
interested  in  starting a  charter  school  with less  than  150                                                               
students since  the funding would  have been less.   However, now                                                               
that  funding  will be  the  same  for  charter schools  with  75                                                               
students,  there  may  be  new charter  schools  because  of  the                                                               
additional funding.                                                                                                             
                                                                                                                                
CHAIR  MEYER asked  whether most  charter schools  are calculated                                                               
differently than neighborhood schools.                                                                                          
                                                                                                                                
COMMISSIONER HANLEY acknowledged that  charter school budgets are                                                               
handled differently.   He suggested that  significant language in                                                               
HB  278  speaks to  that  since  the current  statutory  language                                                               
relates that  the budget for a  charter school shall not  be less                                                               
than  the  amount  generated  by the  students  enrolled  in  the                                                               
charter school.  He characterized  it as being a contract between                                                               
the  district and  the charter  school, but  the budget  needs to                                                               
reflect at least  the amount of money generated  by the students.                                                               
He  pointed  out  significant  clarifying  language  exists,  but                                                               
typically, for a neighborhood school,  the district has a big pot                                                               
of funding which is distributed.   Charter schools have autonomy,                                                               
but  have parameters  on the  amount  of funding  that should  be                                                               
generated.  Thus, it is a different structure, he said.                                                                         
                                                                                                                                
CHAIR MEYER  expressed concern that  some of the funds  might not                                                               
be following the child to the charter school.                                                                                   
                                                                                                                                
COMMISSIONER HANLEY  agreed.   He said  the governor  started the                                                               
conversation, but the legislature wanted equity for students.                                                                   
                                                                                                                                
CHAIR HAWKER  said fiscal  note shows that  the $500  per student                                                               
start-up grant will also follow the students.                                                                                   
                                                                                                                                
COMMISSIONER  HANLEY agreed  that the  one-time $500  per student                                                               
start-up grant will also follow the students.                                                                                   
                                                                                                                                
8:40:05 AM                                                                                                                    
                                                                                                                                
CHAIR  MEYER  pointed  to  correspondence  schools,  noting  that                                                               
Anchorage  School District  has a  $500,000 increase.   He  noted                                                               
that  Galena [City  School District],  heavy with  correspondence                                                               
schools  will receive  $2  million in  funds  and the  Matanuska-                                                               
Susitna [Borough  School District] will receive  over $1 million.                                                               
He asked  for further clarification on  how correspondence school                                                               
funding is calculated.   He said his interest  is that currently,                                                               
Anchorage had  a deficit  of $21  million so  he assumed  the $24                                                               
million  in funding  would  cover the  deficit.   However,  after                                                               
speaking  with  the  finance  section  of  the  Anchorage  School                                                               
District, he questioned whether it  would be enough funding since                                                               
charter   schools  and   correspondence   schools  are   factored                                                               
differently.                                                                                                                    
                                                                                                                                
COMMISSIONER HANLEY,  referring to  the spreadsheet,  pointed out                                                               
the column [labeled FY 2015  [Correspondence] adjustment from .80                                                               
to .90] reflected  the increase from .80 to .90  so it represents                                                               
the number of students multiplied  by the factor for every school                                                               
district that has correspondence  programs.  Previously, Mr. Teal                                                               
presented information  on the  entire funding  formula.   He said                                                               
that correspondence  students are  limited to the  BSA component,                                                               
which previously was .80 of $5,680.   Now that it has been raised                                                               
to .90, it will be .90 of  $5,680, which is the funding that will                                                               
go straight  to the  district.  Again,  these schools  are public                                                               
schools  and  district  schools   and  the  local  district  will                                                               
ultimately determine  how to support their  correspondence school                                                               
students.                                                                                                                       
                                                                                                                                
8:42:06 AM                                                                                                                    
                                                                                                                                
CHAIR HAWKER  noted that the  funding [for  FCCS HB 278]  uses an                                                               
unusual process since  the legislature is in  special session and                                                               
the operating  budget has  been closed out.   He  emphasized that                                                               
these figures  represent operating  budget expenditures,  but the                                                               
legislature  will  include  an appropriation  for  the  operating                                                               
budget to  accommodate the fiscal  notes for  FCCS HB 378  in the                                                               
capital budget.                                                                                                                 
                                                                                                                                
8:42:49 AM                                                                                                                    
                                                                                                                                
CHAIR MEYER moved to adopt  the fiscal notes as presented, noting                                                               
the funding  will be an  operating budget  appropriation included                                                               
the FY 15 capital budget. SB 119.                                                                                               
                                                                                                                                
CHAIR HAWKER objected for discussion purposes.                                                                                  
                                                                                                                                
8:43:21 AM                                                                                                                    
                                                                                                                                
CHAIR  HAWKER removed  his  objection.   There  being no  further                                                               
objection, fiscal note was adopted.                                                                                             
                                                                                                                                
8:43:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO III  highlighted some concerns.   At the time                                                               
HB 278 passed  the House, he had expressed  concern regarding the                                                               
tax credits during  the floor debate.  Those  provision were also                                                               
contained in the Senate version of  the bill.  Thus, he still has                                                               
the same concern about the  Senate provision, on page 11, related                                                               
to  the student  allotments, in  which parents  or guardians  can                                                               
purchase  non-sectarian services  and materials  from a  private,                                                               
public, or  religious organization.   He questioned  whether this                                                               
language raises  a constitutional  issue.  He  asked to  have his                                                               
concerns placed on the record.                                                                                                  
                                                                                                                                
CHAIR HAWKER acknowledged his concerns.                                                                                         
                                                                                                                                
8:44:47 AM                                                                                                                    
                                                                                                                                
CHAIR  MEYER asked  his  members to  indicate  whether they  were                                                               
comfortable with the language in the proposed FCCS for HB 278.                                                                  
                                                                                                                                
8:44:59 AM                                                                                                                    
                                                                                                                                
SENATOR  DUNLEAVY  asked  for   further  clarification  that  the                                                               
language  discussed in  the past  few  days is  contained in  the                                                               
proposed Version  Q, with  the exception  of Amendment  1 adopted                                                               
today.                                                                                                                          
                                                                                                                                
CHAIR HAWKER  said that  the Free  Conference Committee  would be                                                               
adopting  Version Q,  which  was  changed by  Amendment  1.   The                                                               
fiscal notes will be attached, he said.                                                                                         
                                                                                                                                
8:45:47 AM                                                                                                                    
                                                                                                                                
SENATOR  HOFFMAN  said  he appreciated  the  bifurcation  of  the                                                               
studies.  He  expressed concern with the  timeframe being reduced                                                               
by six months.  He offered  his belief that this might place some                                                               
burden on the Legislative Budget and Audit (LB&A) committee.                                                                    
                                                                                                                                
CHAIR HAWKER appreciated his willingness to find accord.                                                                        
                                                                                                                                
CHAIR  MEYER  said  he  thought  this  bill  represented  a  good                                                               
compromise.    He  acknowledged  that  he  spoke  to  his  school                                                               
district's  finance personnel,  noting  he  preferred the  Senate                                                               
numbers; however, he  characterized the proposed FCCS  for HB 278                                                               
as a good compromise and one  that represents a good package that                                                               
offers  incentives  for  innovation   and  reform.    He  further                                                               
remarked   that  he   believed  the   committee  process   worked                                                               
effectively this legislative session.                                                                                           
                                                                                                                                
8:47:51 AM                                                                                                                    
                                                                                                                                
CHAIR MEYER moved  that the Free Conference Committee  for HB 278                                                               
recommend  the   House  and  Senate   adopt  the   proposed  free                                                               
conference  committee substitute  (FCCS) for  HB 278,  Version Q,                                                               
labeled  28-GH 2716\Q,  Mischel,  4/23/14, as  amended, with  the                                                               
attached fiscal notes.                                                                                                          
                                                                                                                                
CHAIR  HAWKER   reiterated  that  the   motion  is  to   adopt  a                                                               
recommendation for the House and Senate  to adopt the FCCS for HB
278, as amended, with the attached fiscal notes.                                                                                
                                                                                                                                
REPRESENTATIVE HAWKER objected for discussion purposes.                                                                         
                                                                                                                                
SENATOR HOFFMAN  asked whether the  objection to Amendment  1 has                                                               
been withdrawn.                                                                                                                 
                                                                                                                                
CHAIR HAWKER was  unsure, but removed his  objection to Amendment                                                               
1 [which had previously been removed].                                                                                          
[The FCC treated it as though  the objection to adopting the FCCS                                                               
for HB 278 had been removed.]                                                                                                   
                                                                                                                                
8:49:07 AM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Senators Hoffman,  Dunleavy, and                                                               
Meyer and Representatives  Gattis, Kito III, and  Hawker voted in                                                               
favor  of the  House and  Senate  adoption of  the proposed  free                                                               
conference  committee substitute  (FCCS)  on HB  278, Version  Q,                                                               
labeled  28-GH 2716\Q,  Mischel,  4/23/14, as  amended, with  the                                                               
attached fiscal notes.   Therefore, the FCCS HB  278 was reported                                                               
out of the Free Conference Committee on HB 278 by a vote of 6-0.                                                                

Document Name Date/Time Subjects
HB 278 House - Senate - Conference Comparison .pdf JHB278 4/25/2014 8:00:00 AM
HB 278
HB 278 Conference Bill/FCCS Summary.pdf JHB278 4/25/2014 8:00:00 AM
HB 278
Amendment 1 4-25.pdf JHB278 4/25/2014 8:00:00 AM
HB 278