Legislature(1997 - 1998)

03/13/1997 03:06 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                HOUSE HEALTH, EDUCATION AND SOCIAL                             
                    SERVICES STANDING COMMITTEE                                
                          March 13, 1997                                       
                             3:06 p.m.                                         
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Con Bunde, Chairman                                            
 Representative Joe Green, Vice Chairman                                       
 Representative Al Vezey                                                       
 Representative Fred Dyson                                                     
 Representative J. Allen Kemplen                                               
 Representative Tom Brice                                                      
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 Representative Brian Porter                                                   
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 * HOUSE BILL NO. 157                                                          
 "An Act repealing statutes that condition receipt of certain                  
 occupational licenses on compliance with student loan repayment               
 provisions and compliance with support orders or payment schedules            
 related to support orders."                                                   
                                                                               
      - HEARD AND HELD                                                         
                                                                               
 * HOUSE BILL NO. 158                                                          
 "An Act relating to attendance at a public school on a part-time              
 basis."                                                                       
                                                                               
      - HEARD AND HELD                                                         
                                                                               
 (* First public hearing)                                                      
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 BILL:  HB 157                                                                 
 SHORT TITLE: REPEAL DENIAL OF OCC LIC FOR DEBTS                               
 SPONSOR(S): REPRESENTATIVE(S) JAMES                                           
                                                                               
 JRN-DATE     JRN-DATE             ACTION                                      
 02/25/97       465    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/25/97       465    (H)   HES, LABOR & COMMERCE                             
 03/13/97              (H)   HES AT  3:00 PM CAPITOL 106                       
                                                                               
 BILL:  HB 158                                                                 
 SHORT TITLE: RIGHT TO ATTEND SCHOOL ON PART-TIME BASIS                        
 SPONSOR(S): REPRESENTATIVE(S) DYSON, Austerman                                
                                                                               
 JRN-DATE     JRN-DATE             ACTION                                      
 02/25/97       465    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/25/97       465    (H)   HES, FINANCE                                      
 03/10/97       618    (H)   COSPONSOR(S): AUSTERMAN                           
 03/13/97              (H)   HES AT  3:00 PM CAPITOL 106                       
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 REPRESENTATIVE JEANNETTE JAMES                                                
 Alaska State Legislature                                                      
 Capitol Building, Room 102                                                    
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 465-3743                                                    
 POSITION STATEMENT:  Sponsor of HB 157                                        
                                                                               
 DIANE BARRANS, Executive Director                                             
 Postsecondary Education Commission                                            
 Department of Education                                                       
 3030 Vintage Boulevard                                                        
 Juneau, Alaska  99801-7109                                                    
 Telephone:  (907) 465-6740                                                    
 POSITION STATEMENT:  Testified on HB 157                                      
                                                                               
 SCOTT STERLING, Commissioner                                                  
 Postsecondary Education Commission                                            
 851 East Westpoint Drive, Suite 1312                                          
 Wasilla, Alaska  99654                                                        
 Telephone:  (907) 376-8076                                                    
 POSITION STATEMENT:  Testified on HB 157                                      
                                                                               
 LARRY WIGET, Director of Government Relations                                 
 Anchorage School District                                                     
 4600 DeBarr Road                                                              
 Anchorage, Alaska  99519                                                      
 Telephone:  (907) 269-2255                                                    
 POSITION STATEMENT:  Testified against HB 158                                 
                                                                               
 MIKE FORD, Attorney                                                           
 Legislative Legal                                                             
 Legislative Affairs Agency                                                    
 130 Seward Street, Suite 409                                                  
 Juneau, Alaska  99801-2105                                                    
 Telephone:  (907) 465-2450                                                    
 POSITION STATEMENT:  Testified on HB 158                                      
                                                                               
 CAMI MOLINE                                                                   
 6709 Marguerite Street                                                        
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 463-3526                                                    
 POSITION STATEMENT:  Testified on HB 158                                      
                                                                               
 SUE CLOVER                                                                    
 4413 Julep Street                                                             
 Juneau, Alaska  99803                                                         
 Telephone:  (907) 789-4729                                                    
 POSITION STATEMENT:  Testified in support of HB 158                           
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 97-19, SIDE A                                                            
 Number 0000                                                                   
                                                                               
 CHAIRMAN CON BUNDE called the House Health, Education and Social              
 Services Standing Committee meeting to order at 3:06 p.m.  Members            
 present at the call to order were Representatives Bunde, Vezey, and           
 Dyson.  Representatives Brice and Green arrived at 3:07 p.m.                  
 Representative Kemplen arrived at 3:14 p.m.  Representative Porter            
 was absent.                                                                   
                                                                               
 HB 157 - REPEAL DENIAL OF OCC LIC FOR DEBTS                                   
                                                                               
 Number 0012                                                                   
                                                                               
 CHAIRMAN BUNDE stated that there was not a quorum, but the meeting            
 would begin with testimony regarding HB 157, "An Act repealing                
 statutes that condition receipt of certain occupational licenses on           
 compliance with student loan repayment provisions and compliance              
 with support orders or payment schedules related to support                   
 orders."                                                                      
                                                                               
 Number 0029                                                                   
                                                                               
 REPRESENTATIVE JEANNETTE JAMES, Sponsor of HB 157, referred to a              
 proposed committee substitute which narrowed the bill to its                  
 original intent.  She said it would make the bill apply only to a             
 student loans issued on or after July 1, 1995, which is the                   
 effective date of prior legislation.   This legislation authorized            
 the student loan division to notify the Department of Commerce and            
 Economic Development to deny renewal of an occupational business              
 license for someone who is delinquent on their student loan.                  
                                                                               
 Number 0090                                                                   
                                                                               
 CHAIRMAN BUNDE announced that Representatives Green and Brice had             
 arrived.  The committee had a quorum.                                         
                                                                               
 Number 100                                                                    
                                                                               
 REPRESENTATIVE JAMES explained the current system; if there is a              
 delinquent student loan when the occupational business license                
 comes up for renewal, it can be denied until the delinquency is               
 cured in some way.  This appeared to be a good way to handle these            
 cases.  She was distressed with the student loan staff who have               
 allowed these delinquencies to become so severe.  She felt that as            
 a keeper of the money, you have a responsibility to collect that              
 money.  She believed, even when the 1995 legislation was passed to            
 force people to pay, that they were penalizing them for their bad             
 behavior.  She did not like to make things retroactive.  She                  
 believed that people, who made these loans prior to July 1, 1995,             
 did not understand or know this was going to be a loan condition.             
 Her legislation doesn't forgive them for not paying their debt, nor           
 does it eliminate the opportunity for them to arrange to make                 
 payment on their liability.                                                   
                                                                               
 Number 0240                                                                   
                                                                               
 REPRESENTATIVE JAMES said the other thing that brought this to her            
 attention was a particular case where a person was obviously                  
 delinquent, had a lot of extenuating circumstances, and did not do            
 anything right.  His options came down to making a sizable payment            
 and/or a payment in full.  This decision was appealed because he              
 had missed the window of opportunity to allow him to respond to the           
 request.  She saw HB 157 as an opportunity to put the situation in            
 a prospective manner instead of a retroactive manner.  For those              
 people, who received their student loan before July 1, 1995, the              
 legislation would not apply.                                                  
                                                                               
 REPRESENTATIVE JAMES said an argument could be made that there is             
 a lot of loan debt which will not be collected.  She had little               
 sympathy with that position because with, or without, the ability             
 to deny an occupational license, these loans are either collectable           
 or not.  If you are aggressively managing these loan accounts,                
 there should be other methods to collect the money, or making a               
 negotiation for payment.  She understood that revoking the                    
 occupational license is an attention getter which is why it has               
 become so popular.  It doesn't make it right.                                 
                                                                               
 REPRESENTATIVE JAMES referred to a similar situation with revoking            
 fishing licenses.  The Internal Revenue Service (IRS) is coming in            
 and taking fishing licenses away from people who haven't paid their           
 income tax.  Those fishermen will never be able to pay anything if            
 you take away their work.  The IRS has sold these licenses for                
 $3,000, when it may have been worth $30,000.  The IRS will probably           
 never be able to recover the tax money.                                       
                                                                               
 REPRESENTATIVE JAMES said anytime you are dealing with borrowers,             
 you need to be firm.  When they sign the document regarding the               
 conditions of the loan, it should be clear to the borrower and                
 after the conditions should be followed through until the loan is             
 paid in full.  To add another rule, which wasn't there in the first           
 place, seems unfair.                                                          
                                                                               
 Number 0466                                                                   
                                                                               
 REPRESENTATIVE JOE GREEN made a motion to adopt the committee                 
 substitute, Lauterbach, dated March 7, 1997, for HB 157 as the                
 working document.  There being no objection, CSHB 157(HES) was                
 before the committee.                                                         
                                                                               
 Number 0494                                                                   
                                                                               
 REPRESENTATIVE GREEN clarified that there were 61 defaulters, with            
 48 of them having made or are in the process of making restitution.           
 He asked if HB 157 would only be addressing 13 defaulters.                    
                                                                               
 Number 0502                                                                   
                                                                               
 REPRESENTATIVE JAMES said this was possible, but added that she did           
 not know how many student loans were out there.  She thought there            
 would be more delinquencies than 61, perhaps more loans would                 
 become delinquent.  She said the student loan staff have only dealt           
 with 61 loans in default when those people who came in for their              
 occupational licenses.                                                        
                                                                               
 REPRESENTATIVE JAMES explained that as a bankruptcy trustee for ten           
 years she saw people over the edge.  She had sympathy for them, not           
 because they were innocent or didn't make some problems for                   
 themselves.  She felt there ought to be a way for them to get                 
 through the problem without such an aggressive stand having to be             
 made.  It is possible that in these 61 cases, where they were able            
 to get a lump sum, it did not hurt them.  Her experience is that              
 when people are forced to make those payments, they don't have food           
 to eat.  In those severe circumstances, there needs to be a greater           
 assistance in letting them know the conditions.  She felt strongly            
 that if this wasn't part of the original loan package, this should            
 not be a method allowed to be used to collect the money.                      
                                                                               
 CHAIRMAN BUNDE announced that Representative Kemplen had joined the           
 committee meeting.                                                            
                                                                               
 Number 0624                                                                   
                                                                               
 REPRESENTATIVE GREEN asked if those 48 people, who had gone through           
 the process and made their payments, would come back to the                   
 legislature and complain.                                                     
                                                                               
 Number 0652                                                                   
                                                                               
 REPRESENTATIVE JAMES agreed that those people could complain,                 
 because the legislature is being retroactive again.  However, those           
 people who are in good stead with their loan probably would not               
 like to be in default and would not likely be the ones to complain.           
                                                                               
 Number 0694                                                                   
                                                                               
 CHAIRMAN BUNDE shared Representative James' frustration, but                  
 understood that this frustration was not created by members of                
 post-secondary education.  In the past Alaska, in essence, gave               
 away money.  A loan was given with the intention that it would be             
 paid back, but if it wasn't then it was forgiven because of the               
 past perception of the state's monetary resources.  He said the               
 loan programs are now on a self-support basis.  The way the loan is           
 going, we only have five or six years for it to last, at its                  
 present rate.                                                                 
                                                                               
 Number 0753                                                                   
                                                                               
 REPRESENTATIVE JAMES said this is her problem, that borrowers                 
 expect one thing and then they are faced with another scenario.               
 She did not have a problem with people taking out a loan on those             
 conditions, but not to introduce a different situation after the              
 conditions of the loan have been signed.                                      
                                                                               
 Number 0774                                                                   
                                                                               
 CHAIRMAN BUNDE said the state is paying for past sins, not all of             
 which we were present to commit.                                              
                                                                               
 Number 0783                                                                   
                                                                               
 REPRESENTATIVE AL VEZEY asked if the legislature hadn't just passed           
 this bill last year or the year before.                                       
                                                                               
 REPRESENTATIVE JAMES said it was passed in 1994 and became                    
 effective in July of 1995.                                                    
                                                                               
 Number 0800                                                                   
                                                                               
 DIANE BARRANS, Executive Director, Postsecondary Education                    
 Commission, Department of Education, was next to testify.  She                
 explained that HB 157 was in essence a public policy call.  She               
 stated that the committee was familiar with the student loan                  
 program and the challenges faced in terms of collecting on                    
 defaulted loans.  The cumulative default rate has been brought down           
 in recent years, but it still hovers above the 18 percent rate                
 which equates to approximately $100 million in default.  The                  
 commission has been working with the legislature and the                      
 Administration over the past few years to try to assemble a variety           
 of tools to reduce that default rate.  This is one method to do               
 this.  It has been used for one year.                                         
                                                                               
 Number 0860                                                                   
                                                                               
 MS. BARRANS referred to a fact sheet located in the committee file            
 titled, "Alaska Commission on Postsecondary Education".  In order             
 to be impacted upon a renewal, occupational licenses are renewed on           
 two year cycles, an individual would have to be at least six months           
 in arrearage, actually in default.  The person also would have had            
 to have been reluctant or refused to make some sort of payment                
 arrangement on their defaulted loans.  The reason, the number of              
 borrowers that have been impacted is low, is that the commission              
 spent about four to six months informing defaulted borrowers and              
 all borrowers of this new tool that the state had.  A number of               
 individuals made payment arrangements and were never caught in this           
 new tool.  There were 61 people that did get to the point of having           
 their license denied upon renewal, 48 of those individuals did                
 either make some payment arrangement with them or made a lump sum             
 payment that in some way paid their past due amount.  In some cases           
 the arrearage was so great that the commission negotiated with them           
 and took something less than the total amount in arrears as long as           
 they agreed to a payment arrangement.  Eight or nine of those                 
 people were never able to be contacted and three or four of them              
 moved out of state so their Alaska occupational license would be of           
 little use to them.  She stated, that in terms of acting                      
 professionals who have been caught in this without some recourse,             
 it has been a small number of people.                                         
                                                                               
 Number 0970                                                                   
                                                                               
 CHAIRMAN BUNDE verified that of the 13 people that Representative             
 Green mentioned, most of them would have gone out of the state.  He           
 asked what numbers, she would anticipate in the next year, would be           
 affected by the past legislation.                                             
                                                                               
 Number 1005                                                                   
                                                                               
 MS. BARRANS said they anticipated seeing a doubling of people                 
 affected by the past legislation.  It is her understanding, from              
 the Division of Occupational Licensing, that they try to spread the           
 renewal cycle so that staff activity is stable throughout the two             
 year cycle.  She predicted that the commission would see as many as           
 120 to 130 individuals who were leveraged with this tool over a two           
 year period.                                                                  
                                                                               
 Number 1018                                                                   
                                                                               
 REPRESENTATIVE GREEN asked if she would predict that three-fourths            
 of those would then make some sort of restitution.                            
                                                                               
 Number 1031                                                                   
                                                                               
 MS. BARRANS answered yes, if the current pattern held, which they             
 assumed it would.                                                             
                                                                               
 Number 1041                                                                   
                                                                               
 SCOTT STERLING, Commissioner, Postsecondary Education Commission,             
 said this tool is needed.  If an injustice occurs in a particular             
 case, then it can be remedied on a case by case basis.  The                   
 underwriters of the bonds are the ones in control of this program.            
 The underwriters look to the commission for the professionalism and           
 the managerial tools to control the default rates.  We are                    
 currently asking a great deal of work from the proprietary school             
 in order to control default rates, both by program and institution.           
 The commission must do a lot as well because the proprietary owners           
 aren't asked to go out and make collections, this is the                      
 commission's responsibility.                                                  
                                                                               
 Number 1111                                                                   
                                                                               
 CHAIRMAN BUNDE asked if he was aware of the specific case                     
 referenced by Representative James.                                           
                                                                               
 Number 1125                                                                   
                                                                               
 MR. STERLING said he was not aware of the facts regarding the case.           
 The commission's procedures, while certainly not perfect, contain             
 ample opportunities before this ultimate sanction for a person to             
 come in and repay or make an offer.  Many loans that are in                   
 default, come out of default because people come in and make a                
 negotiated payment arrangement.                                               
                                                                               
 Number 1199                                                                   
                                                                               
 CHAIRMAN BUNDE reiterated the policy of the committee; to hear the            
 bill and wait until the next meeting before it is addressed again.            
 He suggested that this particular case be discussed.                          
                                                                               
 MS. BARRANS said this particular individual has made a lump sum               
 payment and the commission has agreed the release of (indisc.).               
                                                                               
 HB 158 - RIGHT TO ATTEND SCHOOL ON PART-TIME BASIS                            
                                                                               
 Number 1293                                                                   
                                                                               
 CHAIRMAN BUNDE announced the next item on the agenda was HB 158,              
 "An Act relating to attendance at a public school on a part-time              
 basis."  He said because Finance subcommittees are being closed out           
 and there are conflicts, committee members will be coming and                 
 going.  He said this is the first time that this bill is heard and            
 testimony can continue even if a quorum cannot be maintained.  The            
 bill would be addressed next week.                                            
                                                                               
 REPRESENTATIVE FRED DYSON, Sponsor of HB 158, said the Alaska                 
 Constitution requires that we provide education for all students              
 who are qualified.  He referred to Article VII, Section 1, "The               
 legislature shall by general law establish and maintain a system of           
 public schools open to all children of the State, and may provide             
 for other public educational institutions."  To his knowledge there           
 is only one school district in the state, the Anchorage school                
 district, which does not accept part-time students.  It is his                
 position that this is unfair, public schools are a public resource            
 and ought to be opened to qualified students.                                 
                                                                               
 REPRESENTATIVE DYSON said parents who are home schooling or have              
 enrolled their children in a small, private school do not always              
 have the resources for a computer lab, a shop class, a German class           
 or something else.  These parents feel they are being discriminated           
 against by not being able to enroll their students on a part-time             
 basis.  This bill attempts to eliminate the discrimination.                   
                                                                               
 Number 1373                                                                   
                                                                               
 REPRESENTATIVE DYSON said the foundation formula has made a                   
 rational provision for part-time students.  This formula is located           
 in the committee file.  As he read it, if a part-time student is              
 there for a one hour class the school gets 25 percent of a full-              
 time equivalent, for two hours they get 50 percent, for four hours            
 they get 100 percent.  He offered a revision of this formula if the           
 school district would need to see more recovery for the                       
 administrative cost of a part-time student.                                   
                                                                               
 Number 1427                                                                   
                                                                               
 REPRESENTATIVE DYSON stated that most of the state school districts           
 cooperate with the home school and the private school students in             
 their area.  MatSu district does a marvelous job of working with              
 their home school and private school kids and has done some special           
 things to help them.  Several school districts added that, when a             
 student is expelled from school for disciplinary problems and then            
 gets home schooled or private schooled, it is a great transition              
 method for the student to go part-time into the public school                 
 setting rather than automatically becoming a full-time student.  It           
 gives the public school a chance to see if their deportment has               
 gotten the student to an acceptable level of behavior.                        
                                                                               
 Number 1459                                                                   
                                                                               
 REPRESENTATIVE DYSON explained that there is nothing in HB 158                
 which talks about after-school activities, it deals with the                  
 academic program.  Although he would like to see public schools               
 make all the resources available, HB 158 only addresses academics.            
 He believed that the school district ought to deal with                       
 extracurricular activities as they choose.  This bill also has no             
 mingling of public and private funds.  A student who is involved in           
 a private sectarian school and goes to a public school on a part-             
 time basis to take a physics class, provides no benefit to the                
 private sectarian institution.  It is a benefit to the private                
 student.                                                                      
                                                                               
 Number 1498                                                                   
                                                                               
 REPRESENTATIVE DYSON said HB 158 does not talk at all about                   
 transportation, nothing about mingling of religious and public                
 activities.  He added that there are cases where the courts have              
 ruled that public schools must take handicapped special education             
 kids, even if they are all involved in a private sectarian                    
 religious school.  Whatever barriers are there in making a benefit            
 to a private and religious school, those have been overshadowed by            
 the need for the handicapped student to have access to the public             
 school resources.                                                             
                                                                               
 Number 1543                                                                   
                                                                               
 REPRESENTATIVE DYSON said Mike Ford from Legislative Legal is here            
 to answer any questions as well as Lisa Hoff, his aide.                       
                                                                               
 Number 1560                                                                   
                                                                               
 REPRESENTATIVE GREEN created a scenario where two home schooled               
 students wanted to attend a public school to take History 101.  He            
 asked if there was the potential to create an overcrowded                     
 classroom.                                                                    
                                                                               
 Number 1581                                                                   
                                                                               
 REPRESENTATIVE DYSON said this could happen, just as it would if              
 Alyeska moved 480 families to Fairbanks or new families moved into            
 a community.  These additional families are going to create                   
 overcrowded classrooms.  Most of the school districts, outside of             
 Anchorage, hoped that the private schools and the home schools                
 wouldn't quit what they're doing.  If all the home school or                  
 private school kids in their area came to school, they would have             
 no basis on which they could reject them, they are an Alaskan                 
 student.  Schools are always going to be subject to increasing                
 population pressures.  His view is that we ought to not                       
 discriminate against that student just because he is going to a               
 private school.                                                               
                                                                               
 Number 1616                                                                   
                                                                               
 REPRESENTATIVE GREEN expressed a concern that the school would                
 create schedules and then be inundated with students they did not             
 expect to come into the public schools.                                       
                                                                               
 Number 1647                                                                   
                                                                               
 REPRESENTATIVE DYSON answered that there are some very good staff             
 who work on these problems; how many people have moved into their             
 district over the summer, what is happening on the military bases             
 and so on.  Those staff are pretty good at estimating the numbers             
 and other districts around the state are handling how many part-              
 time students they will have.  There is a process and a lead time             
 in the fall when the parents go through the registration process.             
 He assumed that the part-time students went through the same thing            
 as the full-time students do.  The district has gotten very good at           
 employing part-time instructors to take the peaks and valleys off             
 the varying loads and the classes that are slightly unpredictable.            
                                                                               
 REPRESENTATIVE GREEN clarified that these would matriculate just              
 like anyone else.                                                             
                                                                               
 Number 1695                                                                   
                                                                               
 CHAIRMAN BUNDE mentioned the scenario presented by Representative             
 Dyson where people are moving to Fairbanks.  Fairbanks now has six            
 months to gear up for these 480 families.  He reiterated that the             
 home schooler who wanted, in the next school year, to be part of              
 the public school would be required to register ahead of time so              
 there would be some lead time.  He clarified that, in mid-November,           
 someone couldn't come in for a couple of weeks to attend a physics            
 class.  There would be some lead time for the district.  Students             
 might come and go on a semester basis.  He asked if Representative            
 Dyson would anticipate the same process as the one currently done             
 for full-time students.                                                       
                                                                               
 Number 1730                                                                   
                                                                               
 CHAIRMAN BUNDE referred to the MatSu Valley and said they are well            
 known as double dippers.  They classified a lot of home schoolers             
 as their students until they were caught.  He said there were a lot           
 of good folks out there who don't want any government service                 
 unless their house burns down or they need a school, nor do they              
 want to pay any taxes.                                                        
                                                                               
 Number 1753                                                                   
                                                                               
 REPRESENTATIVE J. ALLEN KEMPLEN presented a scenario where there              
 was a school with a multi-media computer lab and 20 private school            
 students came in and wanted to use that computer lab at the same              
 time.  He asked how that would work.                                          
                                                                               
 Number 1788                                                                   
                                                                               
 REPRESENTATIVE DYSON answered that the public school would be doing           
 its duty by educating qualified Alaskan students.                             
                                                                               
 Number 1793                                                                   
                                                                               
 REPRESENTATIVE KEMPLEN asked if his interpretation of those                   
 students' use of the public school would not be a subsidy to the              
 private school.                                                               
                                                                               
 Number 1809                                                                   
                                                                               
 REPRESENTATIVE DYSON answered yes.  He presented a situation where            
 one of those private school students had a brother who brought home           
 a library book from the public school and the private school                  
 student happened to read it.  The private school student benefitted           
 by becoming more educated.  He did not see this as a mingling.                
                                                                               
 Number 1836                                                                   
                                                                               
 REPRESENTATIVE TOM BRICE said, along those same lines, the                    
 foundation formula will provide funding for those students that               
 come in to take that one class at a higher level than a full-time             
 student, to help compensate the school district.                              
                                                                               
 Number 1851                                                                   
                                                                               
 REPRESENTATIVE DYSON said this was true and added that there could            
 be an inclusion to encourage the Department of Education (DOE) to             
 provide even more front-end loading if the Anchorage school                   
 district can make a compelling argument that the administrative               
 cost of a one hour student is close to that of a full-time student.           
 If they can do this, then we might want to give them even more                
 money.  The funding formula that is being used is ten years old.              
                                                                               
 Number 1876                                                                   
                                                                               
 CHAIRMAN BUNDE said it probably administratively taxes the system             
 to register a student for one hour as it does to register them for            
 the whole day.  He asked for more information on this front-end               
 loading.                                                                      
                                                                               
 Number 1887                                                                   
                                                                               
 REPRESENTATIVE DYSON explained that the current formula provides              
 that for a one hour student you get 25 percent of a full-time                 
 student's credit, 2 hours results in 50 percent and 4 hours equals            
 100 percent.  His first thought, before he realized how well the              
 DOE had done this, was to give the school district 35 percent for             
 the first hour and go to 100 percent at four hours.  He felt more             
 educated administrators have done it this way and he would want               
 them to comment on the rational behind it.                                    
                                                                               
 Number 1912                                                                   
                                                                               
 LARRY WIGET, Director of Government Relations, Anchorage School               
 District, said the Anchorage School District opposes HB 158.  He              
 referred to packets of information located in the committee file,             
 regarding back-up information and the district's position on the              
 ability of non-public students to participate in selected aspects             
 of the public school program.  There was also information related             
 to extracurricular activities which, according to Representative              
 Dyson, is not part of the discussion.                                         
                                                                               
 Number 1973                                                                   
                                                                               
 MR. WIGET said the school district questions the constitutionality            
 of HB 158, the administrative burden, the legal and policy                    
 considerations as well as the local control issue.  It is their               
 position that permitting private school students to attend public             
 school classes violates Alaska's constitutional prohibitions                  
 against providing direct benefits to private schools and                      
 appropriating funds for non-public purposes.  In addition,                    
 permitting private religious school students to attend public                 
 school classes might violate the establishment clause of both the             
 state and federal constitutions.  By taking over a portion of the             
 parochial school's responsibility for teaching secular subjects,              
 the district would, in effect, be subsidizing religious function in           
 the parochial schools and/or private schools.                                 
                                                                               
 MR. WIGET explained that the very courses which are being                     
 identified are high cost enrollment courses; physics, computers,              
 etc.  If you are a private institution and do not have to provide             
 those courses, you can spend that money in other areas.  Those                
 schools could eliminate those courses from their curriculum which             
 are the high cost courses.  In a sense it subsidizes the private or           
 religious school by having the public school provide those courses.           
                                                                               
 MR. WIGET cautioned the legislature that HB 158 increases the                 
 possibility of litigation because of the constitutionality of the             
 statute.  He suspected that the Anchorage School District would be            
 the ones who would bear the cost of that lawsuit.                             
                                                                               
 Number 2055                                                                   
                                                                               
 MR. WIGET referred to the discussion on whether this part-time                
 schooling has an impact on the district or has an impact on the               
 students.  On behalf of the district, both are issues.  Attempting            
 to accommodate the potential part-time enrollment of the over 2,000           
 plus private correspondence and home school students who reside in            
 the Anchorage attendance area under HB 158, raises a number of                
 concerns and policy issues.  The proposed statute may create                  
 unrealistic expectations that part-time students will be assured a            
 seat in a given class.  Administering the process is no small                 
 issue.  Juggling the needs of the potential 2,000 part-time                   
 students with the needs of the 48,000 students currently enrolled             
 in the district would be a major problem.  The district has to plan           
 for additional enrollment without knowing how many students.  He              
 agreed with Representative Dyson that the staff working in                    
 demographics are very good, but there are unknowns in this area.              
                                                                               
 Number 2099                                                                   
                                                                               
 MR. WIGET said HB 158 does not address the transportation of                  
 students which might become an issue raised by parents, it could be           
 another source of litigation.  He stated that if we legally needed            
 to provide a student access to a class, if that would also include            
 providing transportation access to the student whose parents could            
 not take them to this class.                                                  
                                                                               
 MR. WIGET said there is also the issue of continuity of the                   
 instructional program between the school district as compared to              
 the continuity being provided by the home or private school.  He              
 brought up discipline issues.  This statute will probably result in           
 an undue administrative burden and will result in some legal                  
 challenges from both full and part-time students.                             
                                                                               
 Number 2131                                                                   
                                                                               
 MR. WIGET brought up the final issue, local control.  Requiring a             
 school district to provide this violates the concept of local                 
 control.  It takes away the decision making power of the local                
 school board.  In conclusion, the Anchorage school district will be           
 heavily impacted by any statute that requires the district to                 
 enroll part-time some, or all, of the 2,000 plus private                      
 correspondence or home school students who reside within the                  
 Anchorage school district attendance area.  This proposed statute             
 creates concerns for increased litigation.  There might be limited            
 opposition from other school districts, but said he was just                  
 talking to someone from a large district who expressed concerns               
 about HB 158.                                                                 
                                                                               
 MR. WIGET asked the committee to consider the difference between a            
 small and a large school district.  He said Anchorage is the                  
 eightieth largest school district in the United States.  They are             
 three times larger than the next district in the state which causes           
 problems which might not be encountered in some of the more rural             
 districts.  Those rural districts might be looking for enrollment             
 to keep their schools going.  He said there might be limited                  
 opposition, but for the Anchorage school district this is an                  
 important issue which cannot be ignored.                                      
                                                                               
 Number 2190                                                                   
                                                                               
 CHAIRMAN BUNDE clarified that Anchorage was the only district in              
 the state which did not allow part-time students.                             
                                                                               
 TAPE 97-19, SIDE B                                                            
 Number 0000                                                                   
                                                                               
 CHAIRMAN BUNDE asked if there have been any constitutional                    
 challenges from the other districts.                                          
                                                                               
 Number 0021                                                                   
                                                                               
 MR. WIGET answered that there have been no constitutional                     
 challenges at this point in time.  It doesn't mean that there isn't           
 some potential for those challenges.                                          
                                                                               
 Number 0040                                                                   
                                                                               
 CHAIRMAN BUNDE said he has received lobbying from MatSu, not one              
 person from Anchorage has lobbied him about this issue.  He                   
 clarified that if someone moved into the district now, the school             
 district was required to provide a seat.  He asked if a home                  
 schooler shows up, would the district be required to provide a                
 seat.                                                                         
                                                                               
 Number 0083                                                                   
                                                                               
 MR. WIGET said he might approach it this way if he were a principal           
 in a school where that student would be placed.  If a parent wanted           
 to enroll their student in a number of classes, it is quite                   
 possible that the principal might say that at this point in time              
 the particular computer class was not available because it was                
 full.  Allowing part-time students brings in people who get to pick           
 and choose from the curriculum.                                               
                                                                               
 Number 0125                                                                   
                                                                               
 CHAIRMAN BUNDE referred to the concept that home schoolers would              
 need to enroll in the classes and not just pop in mid-semester.  If           
 new students arrived mid-semester and attended classes, then he did           
 not know how we could prohibit home schoolers from attending a                
 class mid-semester.                                                           
                                                                               
 Number 0161                                                                   
                                                                               
 MR. WIGET said this raised another point.  The idea that we would             
 be allowing a student to pick and choose a class, and asked what              
 would stop a student, who is a senior in high school, who is unable           
 to get the computer course he needs, from becoming a home school              
 student and then enrolling in the computer class.                             
                                                                               
 Number 0217                                                                   
                                                                               
 REPRESENTATIVE GREEN asked if he was a part-time student who was              
 going to take one academic class, but did not require ancillary               
 activities such as gym or cafeteria, would that assist with making            
 up the difference for the expensive class.                                    
                                                                               
 Number 0290                                                                   
                                                                               
 MR. WIGET cited an example from when he worked at the University of           
 Montana.  He taught a hands on technology course for 20 students              
 and needed an additional $50,000 worth of equipment.  Conversely              
 there was a professor who gave a history lecture course and was               
 able to have 300 students.  He described the disparity between the            
 expenditure and resources.                                                    
                                                                               
 Number 0342                                                                   
                                                                               
 REPRESENTATIVE GREEN provided the possibility that there was not              
 such a disparity as was previously mentioned.  He referred to the             
 comment that there might be problems with taking a student from a             
 religious school.  He clarified that the constitution says that no            
 money should be expended for religious or private educational                 
 institution.  He asked if a student was the same as an institution.           
                                                                               
 Number 0378                                                                   
                                                                               
 MR. WIGET felt this was an issue that would wind up in the courts.            
 There is some disagreement, that potentially you can be providing             
 direct support to the institution by having a class that the                  
 institution doesn't have to offer to meet the requirements.  The              
 feeling is that you could circumvent having to offer that class by            
 telling students that they should individually go to the school and           
 tell them to offer this particular class.                                     
                                                                               
 Number 0438                                                                   
                                                                               
 REPRESENTATIVE DYSON asked if Mr. Ford could respond to the                   
 constitutionality question.                                                   
                                                                               
 Number 0458                                                                   
                                                                               
 MIKE FORD, Attorney, Legislative Legal, Legislative Affairs Agency,           
 said the constitutional question boils down to the issue of whether           
 or not it will be a direct benefit to the private institution.  He            
 did not believe that the cases on the issue support the conclusion            
 that it is a benefit.  What is being suggested that if you attend             
 a private school you lose your status as a protected individual               
 under the provision that requires the state to provide education to           
 students of Alaska.  He did not believe this was true because we              
 are merely leveling the playing field and saying to a student that            
 they have the right to attend public school classes.  The issue of            
 overcrowding, displacing another full-time student is taken care of           
 by a provision in HB 158.  This provision says that you basically             
 have to treat the non-public student in the same manner as you do             
 the public student.  If you have a computer science class that is             
 full and you can't transfer someone into the class, then you would            
 not have to enroll the private school student into that class.                
 This provision does a lot to alleviate this pressure concept.                 
                                                                               
 MR. FORD said, if you have a spot which is not being filled, then             
 that person should be able to come in and take it.  It comes down             
 to a question of direct benefit.  He thought the benefit being                
 discussed is conferred to the student, not the institution.                   
                                                                               
 Number 0542                                                                   
                                                                               
 MR. WIGET asked Mr. Ford if someone else in his same position could           
 come up with the exact opposite position.                                     
                                                                               
 MR. FORD answered that anything is possible.                                  
                                                                               
 Number 0564                                                                   
                                                                               
 REPRESENTATIVE DYSON said we have many diverse cultures in our                
 country, in terms of ethnicity and religions.  As those groups                
 dispersed they found themselves without the population base needed            
 to form a private school.  He cited an example where Mormon                   
 classmates of his went to a designated place and received                     
 instruction.  It was a definite benefit to them, because they did             
 not have their own school and curriculum for a handful of students.           
 The public school, in essence, benefited that group.  He referred             
 to Jewish communities who provide special instruction.                        
                                                                               
 REPRESENTATIVE DYSON asked if the district was going to be in the             
 position of saying that they did not want this public resource to             
 be of any benefit to any schools or any kids that are attending any           
 kind of religious education somewhere.                                        
                                                                               
 Number 0662                                                                   
                                                                               
 MR. WIGET said he would probably make a distinction between taking            
 a public school course and having separate religious instruction.             
 He took religious instruction separately in his church.  He                   
 emphasized the word "separately".  He was not taking academic                 
 courses at the church.  The Jewish community in his neighborhood as           
 well as the Ukrainian community had their own separate thing                  
 outside the public education system as an added thing that they               
 wanted to do.  He said this is probably getting into a different              
 level of interpretation.  If HB 158 is passed, these different                
 interpretations will be brought up and judged legally.                        
                                                                               
 Number 0708                                                                   
                                                                               
 CHAIRMAN BUNDE said this is the first time that HB 158 is being               
 heard and no action will be taken on it at today's meeting.                   
                                                                               
 Number 0749                                                                   
                                                                               
 CAMI MOLINE explained that she has two boys, the younger one has              
 been taken out of public school and she has enrolled him in the               
 home school program that the school district administers.  She's              
 had several days this year when she felt the public school teachers           
 ought to thank her for taking him out.  She has another child who             
 attends public school.  She just heard about HB 158 this morning              
 and does not feel that money should be taken out of the public                
 schools.                                                                      
                                                                               
 MS. MOLINE read from a prepared statement, "I am a stay-at-home-              
 mom.  Before having the wonderful opportunity to do this as a                 
 career, I worked at three different agencies as a social worker and           
 counselor to delinquent and emotionally disturbed adolescents and             
 teenaged children.                                                            
                                                                               
 I have come to the conclusion that raising children to become                 
 responsible adults is something that simply cannot be left to                 
 chance.  We cannot count on it happening accidently.  A few years             
 ago children spent much more time with their parents, and had much            
 more access to adults who cared about them and could influence                
 their lives in positive ways.                                                 
                                                                               
 But things have changed.  It seems to me that now, perhaps through            
 no fault of their own, parents leave home at the crack of dawn and            
 don't see their children until dark.  This means they turn their              
 children over to other people, some of them highly trained and                
 almost invariable well-meaning, and in some cases, totally                    
 committed.  But, Mr. Chairman, this arrangement is just not working           
 for all students.  Every study that's ever been done has clearly              
 shown that none of the many alternatives, provided as they often              
 are by specialists, quite measures up to substantial parental                 
 involvement in the daily lives of children.                                   
                                                                               
 Wherever possible, the primary responsibility for children should             
 lie with their parents.  I certainly do recognize that with many              
 families it is essential for both parents work.  Some of the best             
 parents I know, and you know, are women who hold full-time jobs.              
 I honor them for it.  But we are sticking our heads in the sand               
 when we insist that there is nothing wrong with less and less time            
 for children to bond with their parents, and that the trend toward            
 our having all aspects of our children's lives turned over to                 
 `specialists'.  Oftentimes the specialists are reduced to little              
 more than day-care workers for school age children.  Sometimes the            
 specialists are deeply committed, long-suffering teachers, trying             
 to meet the incredibly diverse educationally and emotional needs of           
 30 plus children in their classrooms.  It cannot be done.  It is              
 wrong for teachers; it is wrong for parents and, most of all, it is           
 wrong for children.  And there is no room for professional                    
 territorialism when it comes to the training of our children.                 
 Parents and teachers must enter into a new kind of partnership in             
 this immensely important process.                                             
                                                                               
 Any legislation that enables and supports willing parents who want            
 to give more of themselves to their children and take more                    
 responsibility for the education and training of their children,              
 makes sense."                                                                 
                                                                               
 MS. MOLINE said the discussion on this bill assumed that there                
 would be a huge influx of home school and private school children             
 into the school district.  She felt that many parents, who feel as            
 she does, would relish the opportunity to spend more of the day               
 with their children imparting special skills.  Those parents might            
 not feel totally confident that they have the skills needed to                
 teach math, for instance.  Her older son is 11-years-old and would            
 be making the transition to middle school, but those classrooms are           
 packed and his needs will not be met there.  She plans on taking              
 her son out of school and sees HB 158 as a method for reducing                
 class size.  Students who attend public school would receive more             
 attention from the teachers.  She did not want to take any money              
 out of the public school systems and did not see that people who              
 would take advantage of HB 158 would want to do that either.  It              
 needs not to be taken for granted that class sizes would increase             
 in all areas.                                                                 
                                                                               
 Number 1063                                                                   
                                                                               
 CHAIRMAN BUNDE said that was a point well taken.  He suspected that           
 class sizes might increase in some specialized areas, but not in              
 all areas.  He asked, as someone who home schools, whether she                
 could enroll her son in a public school class.  He asked what the             
 policy was in the Juneau school district.                                     
                                                                               
 Number 1082                                                                   
                                                                               
 MS. MOLINE said the Juneau public schools have offered a computer             
 lab for her son's use.  This offer has not been taken advantage of            
 because there hasn't been the need to do it.                                  
                                                                               
 CHAIRMAN BUNDE clarified that the access is available.                        
                                                                               
 Number 1102                                                                   
                                                                               
 MS. MOLINE pointed out that there seemed to be an antagonism                  
 between parents and children.  She felt parents needed to take more           
 responsibility.  Parents hold teachers in the public schools                  
 accountable for all the problems their children have.                         
                                                                               
 Number 1140                                                                   
                                                                               
 CHAIRMAN BUNDE referred to a personally held philosophy that he               
 hoped was more sarcasm than truth; some parents send their kids               
 away at age 5 and take them back at age 18, if they turn out the              
 parents take credit, otherwise the school gets the blame.  He                 
 referred to the antagonism between home school parents and the                
 public schools, and suggested that there appears to be a                      
 distrustful relationship.                                                     
                                                                               
 Number 1164                                                                   
                                                                               
 REPRESENTATIVE DYSON suggested that perhaps some of the antagonism            
 would go away as a result of distance and allowing some integration           
 between the two.  In several districts the home school and private            
 schools who had an almost paranoia about public education sent                
 their kids to a few classes and found it wasn't so bad.  The public           
 school teachers and administrators said that the home school and              
 private school kids deportment and respect was salutary to the                
 public school kids.  He thought it was perceptive to see this bill            
 as being reconciliatory.                                                      
                                                                               
 Number 1218                                                                   
                                                                               
 REPRESENTATIVE DYSON referred to a prediction he made;                        
 Representative Elton felt that there would be more students coming            
 into the school system while he felt that more people would choose            
 to spend a significant portion of their time home schooling their             
 child because the specialist things they were so nervous about                
 would be taken care of.                                                       
                                                                               
 CHAIRMAN BUNDE announced that there was one more person to testify            
 and after that public testimony would be closed.  He said he needed           
 to go to a Finance Budget Subcommittee meeting and turned the gavel           
 over to Representative Dyson.                                                 
                                                                               
 Number 1291                                                                   
                                                                               
 SUE CLOVER said she home schools and it is organized as a private             
 school under state law.  She supported HB 158 because she felt it             
 would create more options for parents and would meet the needs for            
 special classes.  She has a daughter who is interested in French,             
 she has knowledge of Spanish and can't even pronounce the words in            
 French.  Her daughter is getting close to high school age, they               
 have looked at various options such as getting her General                    
 Equivalency Diploma (GED) and having her take a university classes.           
                                                                               
 MS. CLOVER said her experience in Juneau is that they have set up             
 a correspondence program which would allow some classes to be                 
 taken, but then you are under their supervision, you aren't allowed           
 to be a separate private school.  Curriculum is approved by the               
 district.  If you choose not to do that, you are locked out of the            
 system.                                                                       
                                                                               
 Number 1342                                                                   
                                                                               
 MS. CLOVER said she has heard of a few people who have taken part             
 in the public schools, other than the correspondence program, and             
 it seemed that they were either so demanding that they got their              
 way, they had gifted or special needs children or they knew someone           
 and were able to talk them into it.  Educational choices should not           
 depend on who you know.                                                       
                                                                               
 MS. CLOVER suggested that Alaska has been very innovative and                 
 referred to the high school correspondence course, now known as               
 Alyeska.  Alaska was one of the earliest states to allow home                 
 schools to be operated under the private school law.  Passing this            
 legislation will allow one more option for parents.                           
                                                                               
 Number 1390                                                                   
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 There being no further business to conduct, REPRESENTATIVE DYSON              
 adjourned the meeting of the House Health, Education and Social               
 Services Standing Committee at 4:17 p.m.                                      
                                                                               

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