Legislature(2017 - 2018)CAPITOL 106

02/26/2018 08:00 AM House EDUCATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 212 REAA & SMALL MUNI SCHOOL DISTRICT FUND TELECONFERENCED
Moved HB 212 Out of Committee
-- Public Testimony --
+= HB 233 EDUCATION TAX CREDITS; SUNSET; REPEALS TELECONFERENCED
Moved HB 233 Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
                       February 26, 2018                                                                                        
                           8:02 a.m.                                                                                            
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Harriet Drummond, Chair                                                                                          
Representative Justin Parish, Vice Chair                                                                                        
Representative Ivy Spohnholz                                                                                                    
Representative Jennifer Johnston                                                                                                
Representative David Talerico                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Chuck Kopp                                                                                                       
Representative Lora Reinbold (alternate)                                                                                        
Representative Geran Tarr (alternate)                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 212                                                                                                              
"An Act  relating to  funding for  school construction  and major                                                               
maintenance; and relating to  the regional educational attendance                                                               
area and small municipal school district fund."                                                                                 
                                                                                                                                
     - MOVED HB 212 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 233                                                                                                              
"An  Act relating  to  the insurance  tax  education credit,  the                                                               
income tax  education credit, the  oil or gas  producer education                                                               
credit, the  property tax education  credit, the  mining business                                                               
education credit,  the fisheries  business education  credit, and                                                               
the fisheries  resource landing  tax education  credit; providing                                                               
for an effective  date by repealing the effective  dates of secs.                                                               
3, 5, 7, 10, 14, 16, 18, 21,  23, 25, 28, 30, 32, 35, 37, 39, 42,                                                               
44, 46,  49, 51, 53, and  55, ch. 92,  SLA 2010, sec. 14,  ch. 7,                                                               
FSSLA 2011, secs. 15,  17, 19, 21, 23, and 25,  ch. 74, SLA 2012,                                                               
sec. 49, ch. 14, SLA 2014, secs.  37, 40, 43, and 46, ch. 15, SLA                                                               
2014, and  secs. 26 and  31, ch. 61,  SLA 2014; providing  for an                                                               
effective date by amending the effective  date of secs. 1, 2, and                                                               
21, ch. 61, SLA 2014; and providing for an effective date."                                                                     
                                                                                                                                
     - MOVED HB 233 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 212                                                                                                                  
SHORT TITLE: REAA & SMALL MUNI SCHOOL DISTRICT FUND                                                                             
SPONSOR(s): REPRESENTATIVE(s) FOSTER                                                                                            
                                                                                                                                
04/05/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/05/17       (H)       EDC, FIN                                                                                               
02/09/18       (H)       BILL REPRINTED 2/9/18                                                                                  
02/21/18       (H)       EDC AT 8:30 AM CAPITOL 106                                                                             
02/21/18       (H)       Heard & Held                                                                                           
02/21/18       (H)       MINUTE(EDC)                                                                                            
02/26/18       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 233                                                                                                                  
SHORT TITLE: EDUCATION TAX CREDITS; SUNSET; REPEALS                                                                             
SPONSOR(s): REPRESENTATIVE(s) TUCK                                                                                              
                                                                                                                                
04/15/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/15/17       (H)       EDC, FIN                                                                                               
02/16/18       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
02/16/18       (H)       Heard & Held                                                                                           
02/16/18       (H)       MINUTE(EDC)                                                                                            
02/26/18       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MARK VINK                                                                                                                       
Bering Straits School District                                                                                                  
Unalakleet, Alaska                                                                                                              
POSITION STATEMENT:  During the hearing of HB 212, testified in                                                               
support of the legislation.                                                                                                     
                                                                                                                                
TOMMY SHERIDAN, Director of Government Affairs                                                                                  
Silver Bay Seafoods                                                                                                             
Cordova, Alaska                                                                                                                 
POSITION STATEMENT:  During the hearing of HB 233, testified in                                                               
support of the legislation.                                                                                                     
                                                                                                                                
MEGAN RIEBE, Executive Director                                                                                                 
University of Alaska Foundation                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  During the hearing of HB 233, testified in                                                               
favor of the legislation.                                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:02:21 AM                                                                                                                    
                                                                                                                                
CHAIR  HARRIET  DRUMMOND  called  the  House  Education  Standing                                                             
Committee  meeting  to  order  at   8:02  a.m.    Representatives                                                               
Drummond,  Parish, Johnston,  and  Talerico were  present at  the                                                               
call to order.   Representative Spohnholz arrived  as the meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
          HB 212-REAA & SMALL MUNI SCHOOL DISTRICT FUND                                                                     
                                                                                                                                
8:03:08 AM                                                                                                                    
                                                                                                                                
CHAIR DRUMMOND announced  that the first order  of business would                                                               
be HOUSE  BILL NO. 212,  "An Act  relating to funding  for school                                                               
construction  and major  maintenance;  relating  to the  regional                                                               
educational attendance  area and small municipal  school district                                                               
fund; and providing for an effective date."                                                                                     
                                                                                                                                
8:03:27 AM                                                                                                                    
                                                                                                                                
MARK  VINK,  Bering Straits  School  District,  advised that  the                                                               
Bering Straits School  District supports HB 212  because with the                                                               
limited available state dollars currently,  "you would be able to                                                               
work out a portion of a school  instead of the whole thing."  For                                                               
example,  in  the Bering  Straits  School  District, one  of  its                                                               
latest  projects  (indisc.) where  it  was  able  to work  out  a                                                               
portion of  that school to  improve it rather than  replacing the                                                               
whole  school.   Hopefully,  he  said, the  dollars  can be  made                                                               
available for  further (indisc.)  to help  all students  that are                                                               
eligible for this funding.                                                                                                      
                                                                                                                                
CHAIR  DRUMMOND, after  ascertaining  no one  wished to  testify,                                                               
close public testimony on HB 212.                                                                                               
                                                                                                                                
8:05:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PARISH  moved  to  report  HB  212,  labeled  30-                                                               
LS0741\D, out  of committee  with individual  recommendations and                                                               
the accompanying fiscal notes.   There being no objection, HB 212                                                               
moved from the House Education Standing Committee.                                                                              
                                                                                                                                
8:05:38 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:05 a.m. to 8:07 a.m.                                                                       
                                                                                                                                
                                                                                                                                
         HB 233-EDUCATION TAX CREDITS; SUNSET; REPEALS                                                                      
                                                                                                                                
8:07:04 AM                                                                                                                    
                                                                                                                                
CHAIR DRUMMOND announced  that the final order  of business would                                                               
be HOUSE  BILL NO.  233, "An  Act relating  to the  insurance tax                                                               
education credit,  the income  tax education  credit, the  oil or                                                               
gas  producer  education  credit,   the  property  tax  education                                                               
credit,  the  mining  business education  credit,  the  fisheries                                                               
business  education credit,  and the  fisheries resource  landing                                                               
tax  education  credit;  providing   for  an  effective  date  by                                                               
repealing the effective  dates of secs. 3, 5, 7,  10, 14, 16, 18,                                                               
21, 23, 25, 28,  30, 32, 35, 37, 39, 42, 44, 46,  49, 51, 53, and                                                               
55, ch. 92, SLA  2010, sec. 14, ch. 7, FSSLA  2011, secs. 15, 17,                                                               
19, 21, 23, and 25, ch. 74, SLA  2012, sec. 49, ch. 14, SLA 2014,                                                               
secs. 37, 40, 43, and 46, ch. 15,  SLA 2014, and secs. 26 and 31,                                                               
ch. 61,  SLA 2014;  providing for an  effective date  by amending                                                               
the effective date of  secs. 1, 2, and 21, ch.  61, SLA 2014; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
CHAIR DRUMMOND opened public testimony on HB 233.                                                                               
                                                                                                                                
8:07:24 AM                                                                                                                    
                                                                                                                                
TOMMY  SHERIDAN,  Director  of  Government  Affairs,  Silver  Bay                                                               
Seafoods, advised  that Silver Bay Seafoods  strongly supports HB
233, and  explained that Silver Bay  Seafoods began in 2007  as a                                                               
single salmon  processing facility in  Sitka and has  since grown                                                               
into one  of the  largest seafood  companies in  the state.   The                                                               
company currently  operates in Sitka, Craig,  Valdez, Naknek, and                                                               
Metlakatla, and it is dependent  on a large and diverse workforce                                                               
the likes  of which can and  do receive its training  through the                                                               
University  of  Alaska  Southeast  (UAS) Career  Education.    He                                                               
remarked that with  regard to the seafood  processing industry in                                                               
particular, funding  is made possible  through the  education tax                                                               
credits  which  have resulted  in  several  notable and  relevant                                                               
training  opportunities  for  Alaskan  youth.    The  recent  and                                                               
significant example  includes: the At-Sea  Processors Association                                                               
and Goldbelt,  Inc. funding the UAS  fisheries technology program                                                               
during  the  2017-2018   academic  years.    As   part  of  these                                                               
activities, the At-Sea Processors  Association and Goldbelt, Inc.                                                               
funded over  50 Alaskan high  school students to  take university                                                               
level  fisheries (indisc.)  from Kodiak  to Juneau  and Sitka  to                                                               
Unalaska,  Galena,  and Petersburg.    This  funding offered  the                                                               
opportunity for  22 students to  take an iPad  based introduction                                                               
to  oceanography  course for  the  University  of Alaska  general                                                               
education credits.  He related  that he personally benefited from                                                               
similar financial  assistance several years  ago as a  student of                                                               
the  fisheries   technology  program.    He   advised  that  with                                                               
financial  assistance  from  Icicle   Seafoods,  he  received  an                                                               
undergraduate certificate  in fisheries technology  before moving                                                               
on  to complete  several graduate  level programs  at the  Oregon                                                               
State University.  These studies  included a graduate certificate                                                               
in  fishery  management,  a Master  of  Science,  Fisheries,  and                                                               
Wildlife Administration, with a  graduate minor in rural studies.                                                               
He  related  that  the  extension of  the  education  tax  credit                                                               
program  through   HB  233  will  continue   to  promote  private                                                               
investors  in Alaska's  higher education  which  is essential  to                                                               
ensuring that Alaskans  have the skills necessary  to sustain and                                                               
grow Alaska's commercial fishing industry.                                                                                      
                                                                                                                                
8:10:17 AM                                                                                                                    
                                                                                                                                
MEGAN   RIEBE,   Executive   Director,   University   of   Alaska                                                               
Foundation,  advised  that  over  the years,  the  education  tax                                                               
credit has  provided a wealth  of private resources that  flow to                                                               
the university from  the private industry.  She  related that Mr.                                                               
Sheridan's  testimony  "summed  it  up very  well,"  as  this  is                                                               
private funding  going into building  Alaska's workforce  for the                                                               
future   and   promoting    economic   growth   and   prosperity.                                                               
Particularly, she advised, there has  been great support from the                                                               
fisheries  and mining  industries that  is critical  to both  the                                                               
companies that provide  that support and to the  university.  The                                                               
University  of  Alaska Foundation  donors  prefer  to plan  their                                                               
donations  well in  advance, and  the  foundation often  receives                                                               
three to  five year pledges  for major gifts for  these workforce                                                               
development  programs, and  for  teaching and  research as  well.                                                               
She urged  the committee  to pass this  legislation in  order for                                                               
donors to plan for their  future private giving to the University                                                               
of Alaska.                                                                                                                      
                                                                                                                                
CHAIR  DRUMMOND, after  ascertaining  no one  wished to  testify,                                                               
closed public testimony on HB 233.                                                                                              
                                                                                                                                
8:12:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TALERICO  commented that  this is an  extension of                                                               
the program to 2025, (indisc.) this will extend the program.                                                                    
                                                                                                                                
CHAIR   DRUMMOND  answered   that  Representative   Talerico  was                                                               
correct, it extends the program to 1/1/2025.                                                                                    
                                                                                                                                
8:12:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  commented that she had  the opportunity                                                               
to  work for  the University  of Alaska  for approximately  eight                                                               
years and she was able  to first-hand educate the community about                                                               
the education  tax credit and  the opportunities for  the private                                                               
sector to  invest in the  university.  She  related that it  is a                                                               
strategic type of  tax credit in that  it incentivizes investment                                                               
into  the  university's  workforce  development  programs.    The                                                               
mining, oil and gas, and  fisheries industries have provided huge                                                               
investments  when   utilizing  the   education  tax   credit  and                                                               
investing in  the University of  Alaska, which  generates trained                                                               
Alaskans.  She  described the tax credit program  as an important                                                               
program with  a great return on  investment for many years.   The                                                               
program  was  expanded  in  previous   iterations  to  allow  for                                                               
additional types  of education programs to  qualify, including K-                                                               
12  schools,  which is  positive  particularly  in light  of  the                                                               
state's  budget  shortfalls.     She  stated  that  she  strongly                                                               
supports this legislation.                                                                                                      
                                                                                                                                
8:14:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH  moved to  report HB  233 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no  objection, HB  233 moved from  the House                                                               
Education Standing Committee.                                                                                                   
                                                                                                                                
8:14:54 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:14 a.m. to 8:16 a.m.                                                                       
                                                                                                                                
8:17:00 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Education Standing Committee meeting was adjourned at 8:17 a.m.                                                                 
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB 212 - Support CEE handout.pdf HEDC 2/26/2018 8:00:00 AM
HB 212
HB 212 - Support Coalation for Education Equity, Legislative Priorities.pdf HEDC 2/26/2018 8:00:00 AM
HB 212
HB 233 Support 2018 02 14 UA Foundation ETC.pdf HEDC 2/26/2018 8:00:00 AM
HB 233
HB 233 Support Letter 2018 02 14 UA ETC.pdf HEDC 2/26/2018 8:00:00 AM
HB 233