Legislature(2023 - 2024)DAVIS 106

03/13/2023 08:00 AM House EDUCATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Testimony <Invitation Only> --
-- Teleconference <Listen Only> --
*+ HB 105 SEX/REPRODUCTION EDUCATION; SCHOOLS TELECONFERENCED
Heard & Held
*+ HB 106 TEACHER RECRUITMENT; LUMP SUM PAYMENT TELECONFERENCED
Heard & Held
+= HB 69 RECLASSIFICATION OF FIRST CLASS CITIES TELECONFERENCED
Heard & Held
*+ HB 21 SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
                         March 13, 2023                                                                                         
                           8:01 a.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Jamie Allard, Co-Chair                                                                                           
Representative Justin Ruffridge, Co-Chair                                                                                       
Representative Mike Prax                                                                                                        
Representative CJ McCormick                                                                                                     
Representative Tom McKay                                                                                                        
Representative Rebecca Himschoot                                                                                                
Representative Andi Story                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                              
Representative Alyse Galvin                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 69                                                                                                               
"An Act  relating to the  reclassification of first  class cities                                                               
as second class cities; and providing for an effective date."                                                                   
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 106                                                                                                              
"An Act  authorizing lump  sum payments  for certain  teachers as                                                               
retention  and  recruitment  incentives;  and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 105                                                                                                              
"An  Act relating  to  parental rights  in  a child's  education;                                                               
relating to access to school  records; relating to sex education,                                                               
human  reproduction  education,  and human  sexuality  education;                                                               
relating  to   school  disciplinary  and  safety   programs;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 21                                                                                                               
"An Act  relating to group insurance  coverage and self-insurance                                                               
coverage  for   school  district  employees,  employees   of  the                                                               
University of  Alaska, and employees of  other governmental units                                                               
in the state; and providing for an effective date."                                                                             
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  69                                                                                                                  
SHORT TITLE: RECLASSIFICATION OF FIRST CLASS CITIES                                                                             
SPONSOR(s): REPRESENTATIVE(s) CRONK                                                                                             
                                                                                                                                
02/10/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/10/23       (H)       EDC, CRA                                                                                               
03/01/23       (H)       EDC AT 8:00 AM DAVIS 106                                                                               
03/01/23       (H)       Heard & Held                                                                                           
03/01/23       (H)       MINUTE(EDC)                                                                                            
03/13/23       (H)       EDC AT 8:00 AM DAVIS 106                                                                               
                                                                                                                                
BILL: HB 106                                                                                                                  
SHORT TITLE: TEACHER RECRUITMENT; LUMP SUM PAYMENT                                                                              
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
03/08/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/08/23       (H)       EDC, FIN                                                                                               
03/13/23       (H)       EDC AT 8:00 AM DAVIS 106                                                                               
                                                                                                                                
BILL: HB 105                                                                                                                  
SHORT TITLE: SEX/REPRODUCTION EDUCATION; SCHOOLS                                                                                
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
03/08/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/08/23       (H)       EDC, JUD                                                                                               
03/13/23       (H)       EDC AT 8:00 AM DAVIS 106                                                                               
                                                                                                                                
BILL: HB  21                                                                                                                  
SHORT TITLE: SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR                                                                            
SPONSOR(s): VANCE                                                                                                               
                                                                                                                                
01/19/23       (H)       PREFILE RELEASED 1/9/23                                                                                

01/19/23 (H) READ THE FIRST TIME - REFERRALS

01/19/23 (H) CRA, EDC, L&C

01/27/23 (H) CRA REFERRAL REMOVED

01/27/23 (H) BILL REPRINTED 03/13/23 (H) EDC AT 8:00 AM DAVIS 106 WITNESS REGISTER REPRESENTATIVE MIKE CRONK Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor, presented HB 69. DAVE STANCLIFF, Staff Representative Mike Cronk Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered questions during the hearing on HB 69 on behalf of Representative Cronk, prime sponsor. SUSIE MCKENZIE, Director Division of Innovation and Education Excellence Department of Education and Early Development Juneau, Alaska POSITION STATEMENT: Presented HB 106 on behalf of the bill sponsor, House Rules by request of the governor. DEBORAH RIDDLE, Operations Manager Division of Innovation and Educational Excellence Department of Education and Early Development Juneau, Alaska POSITION STATEMENT: Gave the sectional analysis for HB 106. SUSAN MCKENZIE, Director Division of Innovation and Education Excellence Department of Education and Early Development Juneau, Alaska POSITION STATEMENT: Presented HB 105 on behalf of the bill sponsor, House Rules by request of the governor. DEBORAH RIDDLE, Operations Manager Division of Innovation and Education Excellence Department of Education and Early Development Juneau, Alaska POSITION STATEMENT: Gave the sectional analysis for HB 105. LISA STEWART, Retired Teacher Wasilla, Alaska POSITION STATEMENT: Gave invited testimony in favor of HB 105. KRISTINE GUGEL, Parent Chugiak, Alaska POSITION STATEMENT: Gave invited testimony in support of HB 105. REPRESENTATIVE SARAH VANCE Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor, presented HB 21. RANDY TRANI, Superintendent Matanuska-Susitna Borough School District Palmer, Alaska POSITION STATEMENT: Gave invited testimony in support of HB 21. BETSY WOOD, Acting Chief Health Administrator Division of Retirement and Benefits Department of Administration Juneau, Alaska POSITION STATEMENT: Answered questions during the hearing of HB 21. ACTION NARRATIVE 8:01:10 AM CO-CHAIR JAMIE ALLARD called the House Education Standing Committee meeting to order at 8:01 a.m. Representatives Prax, McCormick, McKay, Himschoot, Allard, and Ruffridge were present at the call to order. Representative Story arrived as the meeting was in progress. Also present was Representative Galvin. HB 69-RECLASSIFICATION OF FIRST CLASS CITIES 8:02:04 AM CO-CHAIR ALLARD announced that the first order of business would be HOUSE BILL NO. 69, "An Act relating to the reclassification of first class cities as second class cities; and providing for an effective date." 8:02:36 AM REPRESENTATIVE MIKE CRONK, Alaska State Legislature, as prime sponsor, presented the second hearing on HB 69, and explained the bill would allow a community to reclassify from a one-city community to a two-city community for the purpose of combining a school district with another school district. 8:03:18 AM REPRESENTATIVE HIMSCHOOT asked which communities this would apply to right now, and if there are other cities forthcoming. REPRESENTATIVE CRONK replied that currently, the City of Tanana would be affected. DAVE STANCLIFF, Staff, Representative Mike Cronk, Alaska State Legislature, on behalf of Representative Cronk, prime sponsor, replied to a follow-up question from Representative Himschoot, and explained there are four cities present in the state that fall below the 400-person minimum that you must have to become a first-class city. He stated this bill is not mandatory, it simply allows Tanana the ability to make the change if it wishes to do so. 8:04:24 AM REPRESENTATIVE HIMSCHOOT asked why Tanana wants this. REPRESENTATIVE CRONK replied because the school is not supported well enough by the local government; the government is under stress because the population of the City of Tanana has fallen from 241 people from a high of over 2,000 at one time. The district is working with a larger school district, but ultimately the community has to decide. 8:05:16 AM REPRESENTATIVE PRAX asked, "if this reclassifies Tanana to a second-class city, would they not still be required for the local tax contribution?" MR. STANCLIFF replied that changes when a city changes from first- to second-class, which is why Tanana looks to this opportunity to consider. 8:06:16 AM REPRESENTATIVE STORY stated her understanding was that "this could be changed through statute." REPRESENTATIVE CRONK replied the caveat here is that Tanana is a class one city, and that stops that process [being changed through statute] from happening. 8:07:25 AM REPRESENTATIVE PRAX commented that there are other services provided by first-class cities, and asked if these services would be affected by a change in class. MR. STANCLIFF replied the local community would have to decide and they would do that under the bill by a majority vote. 8:08:39 AM The committee took a brief at-ease at 8:08 a.m. 8:08:52 AM CO-CHAIR ALLARD opened public testimony on HB 69. After ascertaining there was no one who wished to testify, she closed public testimony. 8:09:12 AM REPRESENTATIVE STORY asked if there had been anything heard from the school district. 8:09:30 AM REPRESENTATIVE CRONK replied the Tanana City School District is under contract with the Yukon-Koyukuk School District (YKSD), and Tanana is basically functioning under YKSD. He stated that both school districts are "in agreeance." 8:10:25 AM CO-CHAIR ALLARD announced HB 69 was held over. 8:10:52 AM The committee took an at-ease from 8:10 a.m. to 8:11 a.m. HB 106-TEACHER RECRUITMENT; LUMP SUM PAYMENT 8:11:29 AM CO-CHAIR ALLARD announced that the next order of business would be HOUSE BILL NO. 106, "An Act authorizing lump sum payments for certain teachers as retention and recruitment incentives; and providing for an effective date." 8:11:58 AM SUSIE MCKENZIE, Director, Division of Innovation and Education Excellence, Department of Education and Early Development, presented HB 105 on behalf of the bill sponsor, House Rules by request of the governor. She stated the bill addresses Alaska's Education Challenge priority number four, which is "to prepare, attract, and retain effective education professionals." She stated the Department of Education and Early Development (DEED) acknowledges that teachers have a tremendous impact on student achievement, and notes there are approximately 7,300 teachers working in Alaska public schools, and teacher stability and effectiveness are essential components of student achievement. She gave examples of teacher turnovers and the number of teachers coming from out of state. She reminded the committee that the governor ordered a task force to examine teacher retention and recruitment back in 2020. Reported from a previous survey, she explained, the highest-ranking issue with teacher retention is salary, and HB 106 proposes to address the highest ranked finding of the report. She noted the bill discusses three tiers that Ms. Riddle will go over in the sectional analysis. 8:16:09 AM DEBORAH RIDDLE, Operations Manager, Division of Innovation and Educational Excellence, Department of Education and Early Development, presented the sectional analysis for HB 106 [included in the committee packet], which read as follows [original punctuation provided]: Section 1: Amends uncodified law by adding a new section that establishes a program that would pay certificated full-time teachers with a lump sum payment on, or around, July 1, 2024, July 1, 2025, and July 1, 2026. The payment of the lump sum appropriation is contingent on appropriations made for this purpose in the relevant fiscal years (FY2025, FY2026, and FY2027). The bill limits the payment to full-time teachers assigned to a classroom teaching assignment and specifically excludes temporary, substitute, or assistant teachers. To be eligible for payment, a teacher must occupy a teaching position for the entire school year immediately preceding the date of payment. In addition, to be eligible for payment, teachers would be required to submit an application and school districts would be responsible for certifying the applications. The Department of Education and Early Development (DEED) would develop the application and it would be due no later than the last day of school for the eligible school year. Once the application and certification requirements are met, DEED would grant school districts funding to pay the retention and recruitment incentive as a lump sum payment to eligible teachers. The bill also considers all lump sum payments compensation for the purposes of the Teachers' Retirement System (TRS). Finally, DEED may adopt regulations necessary to carry out the purposes of this bill. Section 2: This bill is effective on July 1, 2023 8:18:35 AM MS. MCKENZIE further synopsized the tiers and proceeded to briefly go over the fiscal note [included in the committee packet.] 8:21:44 AM CO-CHAIR ALLARD announced HB 106 was held over. HB 105-SEX/REPRODUCTION EDUCATION; SCHOOLS 8:21:53 AM CO-CHAIR ALLARD announced that the next order of business would be HOUSE BILL NO. 105, "An Act relating to parental rights in a child's education; relating to access to school records; relating to sex education, human reproduction education, and human sexuality education; relating to school disciplinary and safety programs; and providing for an effective date." 8:22:19 AM SUSAN MCKENZIE, Director, Division of Innovation and Education Excellence, Department of Education and Early Development, presented HB 105 on behalf of the bill sponsor, House Rules by request of the governor. She stated, "The fifth priority of Alaska's Education Challenge is to improve the safety and wellbeing of students through school partnerships with families, communities, and tribes." She listed ways in which this is done through: key learning courses; an initiative for positive behavior, intervention, and support; a trauma-engaged framework; and family input throughout. MS. MCKENZIE related that research states that students whose parents stay involved in school do better overall. Parent engagement is required in many ways related to: parent permission to assess and engage a child in special education; attendance of field trips; pertaining to the Alaska READS Act; and handing out medication at school. She said that "the importance of parent rights" was established under the Parents Rights and Responsibilities Act of 1995 by the One Hundred and Fourth U.S. Congress and prohibits federal, state, or local government or any official of such government from interfering with or usurping the right of parents to govern the upbringing of their children. She said in 2016, the Parent Rights Bill was passed, which adopted school board policies to promote the involvement of parents in the school districts' education programming, including the recognition of the authority of parents to object and withdraw children from an activity, class, or program. MS. MCKENZIE said HB 105 would "affirm and expand Alaska parental rights" and strengthens "the partnership between parents and school by meaningful notice and consent requests." 8:25:26 AM DEBORAH RIDDLE, Operations Manager, Division of Innovation and Education Excellence, Department of Education and Early Development, presented the sectional analysis for HB 105 [included in the committee packet], which read as follows [original punctuation provided]: Section 1: Amends AS 14.03.016, A parent's right to direct the education of the parent's child, (a)(3) by adding to the list of parental rights regarding student's participation in activities and classes that include content involving gender. This subsection also adds an "opt-in" provision stating that parents need to provide written permission for their student(s) to participate in the activity or class. Additional language is added under (a)(7) that a parent must provide written permission before a name or pronoun may be changed in student records and under (a)(8) that parents must also be notified in writing of legal remedies available to them. Section 2: Amends AS 14.03.016(d) by adding the definition of "gender identity" as the internal sense of being either male, female, or something else, which may or may not correspond with an individual's biological sex. Section 3: Amends AS 14.03.016 by adding two new subsections. Subsection (e) states that a parent may file civil action against a school district who violates a policy or procedure adopted under (a) of this section (Section 1 of this bill). Subsection (f) states that a school district that knowingly or recklessly violates a policy or procedure under (a) of this section (Section 1 of this bill) is liable for not less than $5,000 in civil penalties and may be liable for treble damages upon a showing of a violation established by clear and convincing evidence. Section 4: Amends AS 14.03.115, Access to school records by parent, foster parent, or guardian, by adding language that prohibits school districts or regional educational attendance areas from selectively withholding information regarding a child's physical, medical, or mental health from a parent, foster parent, or guardian unless the information may result in child abuse or neglect. Section 5: Amends AS 14.30.361, Sex education, human reproductive education, and human sexuality education, by adding two new subsections. Subsection (e) states that a class or program involving sex education, human reproduction education, and human sexuality education requires parental notice and permission. Subsection (f) states that these topics may not be attended by a child before grade four (4) except as provided by AS 14.30.355, Sexual abuse and sexual assault awareness and prevention. Section 6: Amends AS 14.33.120, A parent's right to direct the education of the parent's child, (a) adding to the list of procedures required by school districts and regional educational attendance areas on addressing the physical safety and privacy of students in locker rooms and restrooms. The separation of students by biological sex, access to single occupant facilities, or other safety and privacy protocols is required. Section 7: Repeals AS 14.03.016, A parent's right to direct the education of the parent's child, subsection (d)(2), which further defines "human reproduction or sexual matters" to not include sexual assault awareness and prevention training required under AS 14.30.355, Sexual abuse and sexual assault awareness and prevention, nor dating violence and abuse awareness and prevention training required under AS 14.30.356, Teen dating violence and abuse awareness and prevention program. Section 8: This bill is effective on July 1, 2023. MS. MCKENZIE noted there is a $6,000 fiscal note for the purpose of getting regulations in place. 8:29:49 AM LISA STEWART, Retired Teacher, gave invited testimony in favor of HB 105. She emphasized the influence of family experiences in shaping people, including their life choices. She shared a personal story of her upbringing, education, and work experience to help illustrate her stance on HB 105. 8:35:03 AM MS. STEWART stated that working with parents is crucial, and that parents are a student's first teacher. She gave examples of how she worked with teachers to "lean in" and listen to parents' concerns. Parental involvement initiatives are increasing nationwide and are required for student success. 8:38:59 AM MS. STEWART surmised that providing separation of restroom and locker rooms shows support for student safety. She explained that given her diverse experience in education, she can confirm a student's success is the result of parental involvement. In closing, she provided her belief that children should be able to count on educators and stated she thought it would be counterproductive for educators to not be on the same page with parents and students. 8:42:07 AM KRISTINE GUGEL, Parent, gave invited testimony in support of HB 105, and began by commending Ms. Stewart [previous testifier] and underscoring her testimony. Ms. Gugel provided her background in relation to family, education, and community. She highlighted her role working in a correctional facility for 12 years as highly impactful in regard to relationships and trust. She stated parental involvement in children's lives is immeasurably important, and part of the "education team." 8:48:40 AM MS. GUGEL noted how critical family involvement in education is not only for the child's well-being, but for the school district. She explained being involved in her own children's classrooms and her own children are now involved in classroom activities. She stated she strenuously urges the passing of HB 105. 8:52:51 AM CO-CHAIR ALLARD invited questions from the committee. 8:53:05 AM REPRESENTATIVE HIMSCHOOT asked Ms. Gugel if she had ever been stopped from going into a public school to assist in a classroom. 8:53:19 AM MS. GUGEL replied she had never had that experience; the classroom was open, available, and she received encouragement from teachers as well as the principal. 8:54:03 AM CO-CHAIR ALLARD announced HB 105 was held over. 8:54:22 AM The committee took an at-ease from 8:54 a.m. to 8:55 a.m. HB 21-SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR 8:55:48 AM CO-CHAIR ALLARD announced that the final order of business would be HOUSE BILL NO. 21, "An Act relating to group insurance coverage and self-insurance coverage for school district employees, employees of the University of Alaska, and employees of other governmental units in the state; and providing for an effective date." 8:56:24 AM REPRESENTATIVE SARAH VANCE, Alaska State Legislature, as prime sponsor, summarized HB 21 per the sponsor statement [included in the committee packet], which read as follows [original punctuation provided]: House Bill 21 amends current statute to create the opportunity for school districts, the University of Alaska, and governmental units such as cities and boroughs to optionally participate in AlaskaCare: our state healthcare program. These entities would have the choice to opt into the pool as an entire entity, enabling Alaska's Department of Administration to negotiate a better cost of healthcare. Research conducted by the Institute of Social and Economic Research of the University of Alaska Anchorage suggests that Alaskans spend the most per resident, face the highest insurance premiums, and have seen overall spending grow much faster than the rest of the country. Alaskans spent more out-of-pocket dollars on health care costs than residents in any other state in 2019, according to a recent Health Affairs study. In fact, in less than 25 years Alaska's spending for health care increased more than 5 times over, growing an average 7.8% per year compared to the U.S. average of 6.0%. On average, 45% of our state educational budget funds healthcare and benefits, leaving only 54% to go towards the classroom. Specifically, school districts across Alaska are facing increasing costs of healthcare that is impacting recruitment and retention of teachers. If passed, House Bill 21 could ease the financial burden of school districts and give the State of Alaska more leverage to negotiate with healthcare providers, improving services for Alaskans with the potential of saving millions of dollars. REPRESENTATIVE VANCE noted the bill supports local control and is 100 percent optional. She pointed out that Alaska has the highest cost per capita of health care in the U.S. and this negatively effects private and public sectors of Alaska's economy because health care costs are part of teacher compensation. 9:00:29 AM REPRESENTATIVE VANCE explained the bill provides the option for school districts, the University of Alaska, and governmental units to participate in AlaskaCare, which is the state healthcare program. The benefits of consolidation consist of three areas: saves money, expands healthcare options, and reduces staff burden. 9:02:33 AM RANDY TRANI, Superintendent, Matanuska-Susitna Borough School District, gave invited testimony via teleconference, and stated the Matanuska-Susitna Borough School Distract supports HB 21, and it has been one of the priorities of the school board for the last three years. He noted he sees no negative downside - it can only provide potential for savings. 9:04:46 AM REPRESENTATIVE VANCE summarized the sectional analysis [included in the committee packet], which read as follows [original punctuation provided]: Section 1. Adds to powers of regional school boards the power to establish and maintain school district participation in a policy of group insurance, selected by the State of Alaska, that provides medical insurance. Section 2. Adds to the duties of a regional school board the duty, when the board's school district participates in a policy of group insurance elected by the State of Alaska that provides medical insurance, to determine and disperse to district employees and administrative officers the amounts necessary to cover the district's portion of the cost of that participation. Section 3. Allows the Commissioner of Administration to expend from the public education fund (AS 14.17.300) to the group health and life benefits fund (AS 39.30.095) a total of $100,000,000 or less as needed to pay claims submitted by school district employees who are covered by a policy of self- insurance provided by the state; and, requires the Commissioner of Administration to repay the public education fund, over a period of 10 years, the full amount of the commissioner's expenditures from the public education fund. Section 4. (a) Allows school districts to participate in a policy of insurance that provides medical insurance coverage to state employees and to school district employees. (b) Requires participating school districts to contribute to the group health and life benefits fund (AS 39.30.095) based on rates set by the commissioner of administration. (c) Requires participating school districts to reimburse the state for procuring excess loss insurance if the state provides insurance benefits to school district employees under a policy of self-insurance. (d) Requires participating school districts to reimburse, over a period not to exceed 10 years, the department of administration's cost of paying insurance claims by school district employees for the first four months school district employees are covered by a policy of self-insurance provided by the state of Alaska. (e) Allows a participating school district to require its employees to pay some or all of the money that this bill section would require the school district to pay to the state. (f) Defines "school employee" and "school employer" for purposes of the bill section. Section 5. Allows the Board of Regents of the University of Alaska to establish and maintain university participation in a policy of group insurance, selected by the State of Alaska, that provides medical insurance for university employees. Section 6. Clarifies that when an employee of a participating governmental unit is covered by a group insurance policy obtained by the Department of Administration the employee spouse and dependent children are also covered. Section 7. Adds to the University of Alaska to the definition of governmental unit applicable to section 6 of the bill. Section 8. Add the definition of school district to AS 39.30.090, which is amended by section 6 and 7 of the bill. Section 9. Authorizes the Department of Administration to provide group medical care insurance coverage to school district employees and employees of other governmental unit by means of self-insurance. Section 10. Requires the Department of Administration to procure excess loss insurance in connection with providing group medical insurance coverage to employees of governmental units other than the state, and allows the department to allocate the cost with the excess loss insurance across all of those governmental units. Section 11. Make sections 1- 8 and section 10 of the bill applicable to collective bargaining agreements and other contracts that become legally binding on or after the effective date of those bill sections. Section 12. Require certain self-insured school districts to transfer the closing balance of their self-funded insurance reserve account soon after they enroll in a health care plan administered by the state, and requires that when transferred by a school district these amounts will be applied to offset reimbursements owed by that school district under AS 14.20.127(d), a provision proposed in section 4 the bill. Section 13. Authorizes the commissioner of administration to adopt regulations necessary to implement the changes made by the bill, to take effect on or after the effective date of the changes made by the bill. Section 14. Make sections 12 and 13 of the bill effective immediately, subject to the restrictions set forth in those bill sections. Section 15. Makes the bill's provisions effective date July 1, 2024, except as provided in bill section 14. 9:08:42 AM REPRESENTATIVE STORY asked Representative Vance if she had assessed how many districts would be interested in this option. REPRESENTATIVE VANCE replied that her office had emailed every school district, but she does not have a definitive number at this point. 9:10:11 AM CO-CHAIR RUFFRIDGE noticed there weren't any fiscal notes, and asked if they are forthcoming. REPRESENTATIVE VANCE replied she just received the fiscal notes [over the weekend] and will forward them soon. 9:11:00 AM REPRESENTATIVE PRAX asked if currently governmental units other than state are not allowed to participate in state employees' health plans. REPRESENTATIVE VANCE confirmed that is correct. REPRESENTATIVE PRAX observed that it is a "one-sided agreement"; there was no mention of underwriting standards, so the state's employee insurance plan would have to accept other groups and not have any other option. REPRESENTATIVE VANCE replied that invited testifier Ms. Wood may better speak to the question. 9:12:36 AM BETSY WOOD, Acting Chief Health Administrator, Division of Retirement and Benefits, Department of Administration, explained that as the bill is written, the Department of Administration would be required to accept any governmental unit or school district that wanted to participate. 9:15:04 AM REPRESENTATIVE HIMSCHOOT asked [Mr. Trani] how the $7 million is calculated. MR. TRANI explained the calculation is the premium paid, plus the premium of AlaskaCare, multiplied times the number of employees. This number was based off a calculation from several years ago and premiums change frequently; therefore, he stated he is not sure what the savings are currently. He noted the average premium is currently between 28 and 30 thousand dollars per year per employee. REPRESENTATIVE HIMSCHOOT requested that the current numbers be forwarded to the committee. 9:16:24 AM CO-CHAIR RUFFRIDGE said he was surprised by the number stated in reference to the cost of premiums and asked whether the cost included the employee's family. MR. TRANI confirmed the number is for family coverage, and there are several different plans for employees to choose from. 9:18:19 AM REPRESENTATIVE PRAX questioned if anyone has done iterations on what happens when working with big insurance companies, and if actuarial standards change. He referenced [the Affordable Care Act] in relation to offering incentives. MS. WOOD responded that the type of actuarial analysis is something that is done when a bill approaches the finance committee to get a better sense of longer-range impacts. 9:20:10 AM REPRESENTATIVE STORY asked Ms. Wood about a study in 2021 regarding the university system joining AlaskaCare, and if costs were affected by much. MS. WOOD replied that the division looked into the possibility, and she recalled there were minor but not significant savings. She stated she can research the exact numbers and provide them at a later date. 9:22:21 AM REPRESENTATIVE PRAX commented that the legislature needs to look at this very carefully. He provided an example of a personal experience with insurance policies and the costs involved. REPRESENTATIVE VANCE stated to Representative Prax that the bill would allow the option for universities and schools to choose and what works for individual units and if it would be beneficial to join the healthcare plan, or not. The overall goal is to ease the financial strain on school districts, so that schools can focus on what matters most. 9:24:29 AM CO-CHAIR ALLARD announced HB 21 was held over. 9:24:59 AM ADJOURNMENT There being no further business before the committee, the House Education Standing Committee meeting was adjourned at 9:25 a.m.

Document Name Date/Time Subjects
HB69 Sponsor Statement.pdf HEDC 3/13/2023 8:00:00 AM
HB 69
HB69 Sectional Analysis.pdf HEDC 3/13/2023 8:00:00 AM
HB 69
HB0069A.PDF HEDC 3/13/2023 8:00:00 AM
HB 69
HB69 Hearing Request.pdf HEDC 3/13/2023 8:00:00 AM
HB 69
HB106-Fiscal Note.PDF HEDC 3/13/2023 8:00:00 AM
HB 106
HB106A.PDF HEDC 3/13/2023 8:00:00 AM
HB 106
HB106 - Sectional Analysis.pdf HEDC 3/13/2023 8:00:00 AM
HB 106
HB106 - Sponsor Statement.pdf HEDC 3/13/2023 8:00:00 AM
HB 106
HB106- House Education Hearing Request.pdf HEDC 3/13/2023 8:00:00 AM
HB 106
HB0105A.PDF HEDC 3/13/2023 8:00:00 AM
HB 105
HB105 - Sectional Analysis.pdf HEDC 3/13/2023 8:00:00 AM
HB 105
HB105- House Education Hearing Request 3-8-2023.pdf HEDC 3/13/2023 8:00:00 AM
HB 105
HB105 Sponsor Statement.pdf HEDC 3/13/2023 8:00:00 AM
HB 105
HB105-Fiscal Note.PDF HEDC 3/13/2023 8:00:00 AM
HB 105
HB 21 - Letter of Support from KPBSD.pdf HEDC 3/13/2023 8:00:00 AM
HB 21
HB 21 - Presentation.pdf HEDC 3/13/2023 8:00:00 AM
HB 21
HB21A.PDF HEDC 3/13/2023 8:00:00 AM
HB 21
HB 21 - School Healthcare Consolidation Sponsor Statement.pdf HEDC 3/13/2023 8:00:00 AM
HB 21
HB 21 - Healthcare Consolidation Bill Sectional Analysis.pdf HEDC 3/13/2023 8:00:00 AM
HB 21