Legislature(2009 - 2010)HOUSE FINANCE 519
04/06/2009 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB161 | |
| HB 137 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 29 | TELECONFERENCED | |
| + | HB 137 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 161 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
April 6, 2009
2:20 p.m.
2:20:35 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 2:20 p.m.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Vice-Chair
Representative Allan Austerman
Representative Harry Crawford
Representative Anna Fairclough
Representative Richard Foster
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
None
ALSO PRESENT
Representative Cathy Munoz; Representative Beth Kerttula;
Remond Henderson, Deputy Director, Division of General
Services, Department of Administration; Karen Lister, Staff,
Representative John Coghill; Eddy Jeans, Director, School
Finances and Facilities, Department of Education and Early
Development.
PRESENT VIA TELECONFERENCE
Bryan Butcher, Public Affairs Director, Government Affairs
and Public Relations, Alaska Housing Finance Corporation,
Department Of Revenue; Mark Sansouci, Department of Defense
Regional Liaison for Military Families for the Northwest;
Carol Comeau, Superintendent of Schools, Anchorage School
District (ASD) Municipality of Anchorage (MOA),
Superintendent of Anchorage School System.
SUMMARY
HB 161 "An Act relating to the Alaska Mental Health Trust
Authority Subport Office Building; authorizing the
issuance of certificates of participation for
construction of the building and authorizing the
use of up to $25,000,000 from the mental health
trust fund for construction of the building;
approving leases of all or part of the building by
the Department of Administration; and providing
for an effective date."
CSHB 161 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with three new
fiscal notes from the Department of Revenue, the
Department of Administration, and the Department
of Natural Resources and with one previously
published fiscal note: FN1 (REV).
HB 137 "An Act relating to an interstate compact on
educational opportunity for military children;
amending Rules 4 and 24, Alaska Rules of Civil
Procedure; and providing for an effective date."
HB 137 was REPORTED out of Committee with a "do
pass" recommendation and with a new zero fiscal
note from the Department of Education.
HB 29 "An Act increasing the minimum wage; and providing
for an effective date."
HB 29 was SCHEDULED but not HEARD.
2:21:22 PM
HOUSE BILL NO. 161
"An Act relating to the Alaska Mental Health Trust
Authority Subport Office Building; authorizing the
issuance of certificates of participation for
construction of the building and authorizing the use of
up to $25,000,000 from the mental health trust fund for
construction of the building; approving leases of all
or part of the building by the Department of
Administration; and providing for an effective date."
2:21:56 PM
REPRESENTATIVE CATHY MUNOZ indicated that the three fiscal
notes from the Department of Revenue, the Department of
Administration, and the Department of Natural Resources
would be the reviewed for the committee.
REMOND HENDERSON, DEPUTY DIRECTOR, DIVISION OF GENERAL
SERVICES, DEPARTMENT OF ADMINISTRATION, explained the fiscal
notes.
2:23:21 PM AT EASE
2:24:14 PM RECONVENED
Mr. Henderson reported that the Department of Revenue fiscal
note represents $22 million to fund 50 percent cost of the
new building. The note reflects, in FY 2010, the cost of
issuing bonds up to $400,000 and estimated interest payments
of $626,000. The fiscal note also reflects an annual debt
payment of $1.9 million beginning in FY 2011. This debt
payment is based on $22.7 million repaid over a period of 20
years at 5.5 percent interest. The Department of Natural
Resources fiscal note reflects the Mental Health Trust Fund
responsibility for the remaining $22.7 million cost of the
new facility. The Mental Health Fund will be replenished
from rents paid by the Division of General Services on
behalf of the new building tenants, the Departments of
Labor, Fish and Game, and Public Safety. The money will be
repaid over 30 years at an interest rate of 7.5 percent of
the rents collected. The Department of Revenue fiscal note
also reflects the operating expenses of $1.5 million. He
continued reading the numbers in the fiscal note.
Approximately $3.5 million of this amount will come from
General Services and $300,000 from commercial rentals. Mr.
Henderson commented the Department of Administration fiscal
note reflects the difference between the estimated lease
payments for the state, assuming passage of the bill. He
disclosed that the note does not reflect the deferred
maintenance cost of $5.8 million for the Douglas Island
building and $2.5 million for the Public Safety building. It
is anticipated that over a 30 year period the savings will
be $13.5 million.
2:29:06 PM
RYAN BUTCHER, PUBLIC AFFAIRS DIRECTOR, GOVERNMENT AFFAIRS
AND PUBLIC RELATIONS, ALASKA HOUSING FINANCE CORPORATION,
DEPARTMENT OF REVENUE testified via teleconference,
announced that the Alaska Housing Finance Corporation
(AKHFC) fiscal note reflects, in the contractual line, the
costs savings of not having to make lease payments on the
building because it would be owned. He noted that the
miscellaneous line reflected the costs of debt service paid
plus maintenance. In FY 2011 and FY 2012, the savings would
increase as the years progress. The expected savings will be
approximately $15.2 million.
Representative Foster MOVED to report CSHB 161 out of
Committee with individual recommendations and the
accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
CSHB 161 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with three new fiscal notes from
the Department of Revenue, the Department of Administration,
and the Department of Natural Resources and with one
previously published fiscal note: FN1 (REV).
2:32:48 PM
HOUSE BILL NO. 137
"An Act relating to an interstate compact on
educational opportunity for military children; amending
Rules 4 and 24, Alaska Rules of Civil Procedure; and
providing for an effective date."
KAREN LISTER, STAFF, REPRESENTATIVE JOHN COGHILL explained
that HB 137 endeavors to eliminate some of the barriers for
military school children as they transition from one school
system to another. She reported over 12,000 active duty
children between the ages of 5 and 18 residing in Alaska
would benefit from this compact. She referred to the
Sectional (Alaska State Legislature House Rules Committee,
Representative John Cogill, Chairman, Sectional HB 137, copy
on file):
Sectional
HB 137
"An Act relating to an interstate compact on educational
opportunity for military children; amending Rules 4 and 24,
Alaska Rules of Civil Procedure; and providing for an
effective date."
Section 1: AS 14. Adds a new chapter:
Chapter 34. Interstate Compact on Educational Opportunity
for Military Children
Article I - Purpose
This article describes the purposes of this compact which is
to remove barriers to educational success for military
children by facilitating enrollment, placement, and timely
graduation; providing enforcement of rules, uniform
collection and sharing of information; and promoting
coordination, flexibility, and cooperation among member
states.
Article II - Definitions
This article provides definitions for terms used throughout
the compact.
Article III - Applicability
This article defines the children covered by this compact.
Article IV - Educational Records and Enrollment
This article outlines how sending and receiving states
handle a military student's unofficial and official
educational records. The Interstate Commission determines
what information must be included in the records, and the
time line for providing the records. It provides a 30-day
grace period for immunizations. Kindergarten and first
grade entrance is addressed for both grade level and age.
Article V - Placement and Attendance
This article describes course placement; education program
placement, and special education services to address federal
requirements for students with disabilities. Placement
flexibility and absences related to deployment are also
addressed.
Article VI - Eligibility
This article provides information on enrollment eligibility.
It prohibits the student from being charged a tuition if the
student lives in a different jurisdiction, and allows the
student to continue to attend the school they were enrolled
in while residing with the custodial parent. The military
student shall have as many opportunities as possible to
participate in extracurricular activities, even if they have
missed the application deadlines.
Article VII - Graduation
This article facilitates on-time graduation by providing
procedures for waivers, exit exams and transfers during a
military student's senior year.
Ms. Lister interjected that Articles IV, V, VI, and VII deal
with the student directly and the other articles deal with
the compact in general.
Article VIII - State Coordination
This article establishes requirement for creation of a State
Council or other existing body to provide coordination among
its government, local and military agencies. Membership
requirements are also addressed.
Article IX - Interstate Commission on Ed Opportunity
for Military Children
This article deals with creating the commission and its
responsibilities, powers, and duties. It details
membership, voting rights, meetings, executive committee,
bylaws and rules, data collection, and a process for
reporting alleged violations.
Article X - Powers and Duties of the Interstate
Commission
This article lists the powers and duties of the Interstate
Commission: Dispute resolution; promulgate rules; issue
advisory opinions; enforce compliance; and other powers and
duties related to establishing and running and supporting
the state councils at a national level.
Article XI - Organization and Operation of the
Interstate Commission
This article provides the structure for the Interstate
Commission to organize, establish bylaws, set up executive
and other committees, establish procedures for meetings, and
providing for start-up rules for the initial administration
of the compact.
Article XII - Rulemaking Functions of the Interstate
Commission
This article gives the Interstate Commission rulemaking
authority, and rulemaking guidelines and a provision for
judicial review of a proposed rule.
Article XIII - Oversight, Enforcement, and Dispute
Resolution
This article addresses oversight, enforcement and dispute
resolution specifically. Oversight: Charges the executive,
legislative and judicial branches of state governments
regarding the purpose and intent of the Compact. It further
states that the Interstate Commission shall receive all
service of process and has standing to intervene. Further
addresses consequences of default by a member state.
Dispute Resolution: If requested the Interstate Commission
will attempt to resolve disputes and provide rules for
mediation and binding dispute resolution. Enforcement: The
Interstate Commission shall enforce the rules and provisions
of this compact and may initiate legal action to enforce
compliance with the provisions of the compact.
Article XIV - Financing the Interstate Commission
This article provides a method for the Interstate Commission
to pay its reasonable expenses by collecting annual
assessments from each member state. There are limits on
incurring obligations and the need for accurate accounting
of all receipts and disbursements, and the requirement for a
yearly audit by a certified or licensed CPA.
Article XV - Member States, Effective Date and
Amendment
States are eligible to become members, the compact becomes
effective when no less than 10 states enact the compact into
law and the member state passes the law. Rules for how
amendments become effective and binding.
Article XVI - Withdrawal and Dissolution
This article addresses how member states withdraw from the
compact, what their responsibilities of notice, time, and
responsibility for assessments. This article also addresses
reinstatement, and compact dissolution.
Article XVII - Severability and Construction
Provisions of this compact are severable and any portion
deemed unenforceable does not affect the remaining compact.
The compact should be liberally construed, and nothing in
this compact inhibits other interstate compacts.
Article XVIII - Binding Effect of Compact and Other
Laws
Nothing in this compact prevents the enforcement of other
laws that are not inconsistent with this compact.
Conflicting laws are superseded by the compact to the extent
of the conflict. All rules of the Interstate Commission are
binding on the members states. Any provisions that exceed
constitutional limits are ineffective to the extent of the
conflict of the member state.
Sec. 14.34.020 Compact Administrator.
Establishing a compact administrator and the duties of that
office.
Sec. 14.34.030 State Council.
Establishes the state council as a subcommittee of the
membership.
Sec. 14.34.040 Regulations.
The board may adopt regulations to implement this chapter.
Sec. 14.34.090 Short Title.
Interstate Compact of Educational Opportunity for Military
Children
Section 2: Uncodified law of the State of Alaska is amended
by adding a new section:
INDIRECT COURT RULE AMENDMENTS. The changes made by Sec. 1
of this Act have the effect of changing Alaska Rules of
Civil Procedure:
(1) Rule 4 - entitles the Interstate Commission to
receive service of process of a judicial proceeding that
pertains to a Compact provision or rule.
(2) Rule 24(b) - entitles the Interstate Commission to
intervene in a judicial proceeding in which the validity of
a compact provision or rule is at issue.
Section 3: Uncodified law of the State of Alaska is amended
by adding a new section:
CONDITIONAL EFFECT OF CERTAIN PROVISIONS.
Provisions set out in Section 1 concerning service of
process and standing to intervene, take effect only if
Section 2 receives two-thirds majority vote of each house
required by the State Constitution.
Section 4: Uncodified law of the State of Alaska is amended
by adding a new section:
CONDITIONAL EFFECT OF ACT; COMMISSIONER'S DUTY TO NOTIFY.
When Sections 1 and 2 of this Act will take effect and
notification requirements when the 10 or more states have
ratified this compact.
Section 5: Setting out the effective dates of this Act to
be not less than 10 states other than this state ratify the
Compact or July 1, 2009, whichever is later.
Ms. Lister indicated that 14 states have adopted this
compact.
2:37:57 PM
Representative Gara asked if he understood correctly that
the provision for students moving between bases was to keep
them in the same school. Ms. Lister responded it would be
within the same area when moving from one state to another
and specifically being in the same state but, wanting to
keep the student in the same school even though the family
has moved to another district. Representative Gara asked
where that was in the bill. Ms. Lister indicated Article VI.
Representative Gara asked what the compact does to help the
student remain in the same school. Ms. Lister referred to
the eligibility of enrollment, Article VI, Subsection (3)"a
transitioning military child, placed in the care of a non-
custodial parent or other person in standing in loco
parentis who lives in a jurisdiction other than that of the
custodial parent, may continue to attend the school in which
the student was enrolled while residing with the custodial
parent." Representative Gara asked if this is the form
language all 50 states are trying to adopt. Ms. Lister
indicated that was correct.
2:40:27 PM
Representative Foster recounted the difficulties and
frustrations of registering his children into Juneau schools
in earlier days.
2:41:23 PM
MARK SANSOUCI, REGIONAL LIAISON FOR MILITARY FAMILIES FOR
THE NORTHWEST, DEPARTMENT OF DEFENSE testified via
teleconference, asked for support of HB 137. He emphasized
that the interstate compact is the Department of Defense's
effort to respect federalism and partner with the council of
state governments in states that voluntarily join this
interstate commission to help transitioning military school
children. The Department of Defense considers military
school children in transition as one of its top 10 key
issues for the military family's quality of life. He
signified that most military children will attend 6 to 9
th
different school systems between kindergarten and 12 grade,
often moving twice during their high school years. Frequent
moves often result in some educational obstacles, including
the lack of consistency between states. There have been 14
states that have adopted the compact since its inception in
2007.
2:45:18 PM
Mr. Sansouci noted that last year the 10 state threshold was
reached to activate the Interstate Commission. The
commission fees were voted as $1 per active military
student, ages 5 to 18. The fee for Alaska will be $12,106
for the 12,106 military students residing here. The compact
requires the state governors create a State Council or use
an existing body or board to coordinate the commission
activities. He listed the structure requirements and
responsibilities for the council. The council members would
be paid travel expenses to attend Interstate Commission
meetings. In fiscal note reflects the $22,000 annually for
travel to the meetings. House Bill 137 allows Alaska to join
th
other states on the forefront as Alaska is 16 largest
military state.
2:49:20 PM
Co-Chair Stoltze thanked the sponsor and Mr. Sansouci and
agreed that many state representatives have a large number
of military families in their districts and this bill would
be a good thing for the students.
2:50:07 PM
Representative Foster questioned why the schools systems can
not solve the problem instead of involving the legislature.
2:50:37 PM
Representative Gara appreciated the moving problem with
military families, but asked if there was a plan in this
compact to give students partial credits when moving. Mr.
Sansouci explained that the intent was for the student to be
placed in a similar level class to continue their
uninterrupted education. Partial credit is not addressed in
the compact. He addressed Representative Foster's question
by saying the Department of Defense is involved to help
insure consistency and continuity between the states.
2:53:22 PM
CAROL COMEAU, SUPERINTENDENT OF SCHOOLS, ANCHORAGE SCHOOL
DISTRICT (ASD) MUNICIPALITY OF ANCHORAGE (MOA),
SUPERINTENDENT OF ANCHORAGE SCHOOL SYSTEM testified via
teleconference, supported HB 137 as an opportunity to put
into statute the expectation that all school districts will
work with military families to help student transitions.
2:55:06 PM
Co-Chair Hawker asked what number the Municipality of
Anchorage would put on a fiscal note. Ms. Comeau did not
think there would be one. She believed it was more important
to send the message that the community values these
procedures. Co-Chair Hawker asked Ms. Comeau if this bill
would impose any unacceptable requirements on the school
district. Ms. Comeau indicated there had been a thorough
review of the bill and it was strongly supported.
2:56:48 PM
Co-Chair Stoltze closed public testimony.
2:57:22 PM
EDDY JEANS, DIRECTOR, SCHOOL FINANCES AND FACILITIES,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT noted that at
least 95% of requirements in the compact are already in
Alaska statute or regulations. He remarked that there was
support from the Alaska School Activities Association, the
Anchorage, Sitka, and the Kodiak Island School Districts, as
well as, the State Board of Education.
2:58:51 PM
Co-Chair Hawker questioned if the $22,000 fiscal note were
zeroed out would it cripple the education department. Mr.
Jeans replied it would not break the department, but the
department would appreciate the appropriation to support the
compact. Co-Chair Hawker encouraged more effective and
efficient use of government assets. Co-Chair Hawker
preferred to see the travel money evaluated in the annual
budget process.
3:00:59 PM
Co-Chair Stoltze asked how many military students were
enrolled in Alaska online schools. Mr. Jeans could not
answer that question. Co-Chair Stoltze asked if Mr. Jeans
knew where the online checks were coming from and how many
students were affected. Mr. James responded that the
department does not collect information specifically for
military families. Co-Chair Stoltze asked to see that
information for the future.
3:02:02 PM
Co-Chair Hawker offered a zero fiscal note for the committee
to discuss for this bill. Representative Kelly agreed the
fiscal note should be zero. Co-Chair Hawker emphasized he is
not critical of the program only the funding mechanism.
3:03:01 PM
Representative Gara interjected that the program takes money
and personnel to work efficiently. He believed the money
should be kept in the fiscal note. Co-Chair Stoltze
expressed that often departments see opportunities to put
money in fiscal notes, but he believed this to be an
important program.
3:04:08 PM
Representative Kelly stressed the Alaska school districts
were already doing a good job and should not require more
money.
3:04:50 PM
Mr. Jeans clarified the number of active duty military
students in the state.
Co-Chair Hawker MOVED to zero out the fiscal note and asked
the department to accommodate it in the existing authority
during the regular budget process. There being NO OBJECTION,
it was so ordered.
3:06:05 PM
Co-Chair Hawker MOVED to report HB 137 out of Committee with
individual recommendations and the accompanying new zero
fiscal note.
Representative Gara OBJECTED for discussion.
Representative Gara remarked that the problem with moving
students between schools during the school year affects
student achievement. He agreed this was good for military
students along with the federal government's mandate for
homeless students, but added the lingering problem with the
foster youth. He stressed that Alaska needs a policy to help
foster students stay in the same school.
Representative Gara WITHDREW his OBJECTION.
HB 137 was REPORTED out of Committee with a "do pass"
recommendation and with a new zero fiscal note from the
Department of Education.
3:08:22 PM
HOUSE BILL NO. 29
"An Act increasing the minimum wage; and providing for
an effective date."
HB 29 was SCHEDULED but not HEARD.
ADJOURNMENT
The meeting was adjourned at 3:08 PM
| Document Name | Date/Time | Subjects |
|---|---|---|
| 01 HB137 Sponsor Statement.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 137 |
| 02 Hb137 Sectional.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 137 |
| anch res support.pdf |
HFIN 4/6/2009 1:30:00 PM |
|
| 11 HB29 Written copy of testimony.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| 12 HB29 Leg. Research.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| 13 HB29 Formulation Memo.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| 14 HB29 Letter of Support - AMHB.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| 16 HB29 Letter of Opposition - Hoffman.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| 05 HB137 Case Studies.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 137 |
| 06 HB137 Letter of SupportOpposition.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 137 |
| Amendmetn 1 R.3.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| Amendment 2 R.4.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| CSHB 29 (L&C) Department of Labor Stats.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| HB 29 Changes.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| HB137 Anch School Dist. Resolution.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 137 |
| HB29 ADN Article.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| HB29 Card and Kreuger Study.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| HB29 Legislative Research Shop.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| HB29 Letter of Support - AARP.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| HB29 NCSL Minimum Wage List.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| HB29 Poverty Guideline.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| HB29 Sectional Analysis.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| HB29 Sponsor Statement.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| HB29 Wellington Study.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 29 |
| New CSHB161(FIN)-DOR-AHFC-04-06-09.pdf |
HFIN 4/6/2009 1:30:00 PM |
HB 161 |