Legislature(1997 - 1998)

04/30/1997 03:34 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                                       
                    April 30, 1997                                             
                      3:34 p.m.                                                
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative Con Bunde, Chairman                                             
Representative Joe Green, Vice Chairman                                        
Representative Brian Porter                                                    
Representative Fred Dyson                                                      
Representative J. Allen Kemplen                                                
Representative Tom Brice                                                       
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
Representative Al Vezey                                                        
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
SENATE BILL NO. 187                                                            
"An Act relating to disclosure of public records identifying a                 
participant in the advance college tuition payment program;                    
relating to the composition and assets of the Alaska advance                   
college tuition payment fund; relating to administration of the                
advance college tuition payment program; relating to advance                   
college tuition payment contracts; and providing for an effective              
date."                                                                         
                                                                               
     - CHAIRMAN REQUESTED THAT SB 187 BE WAIVED                                
                                                                               
HOUSE BILL NO. 193                                                             
"An Act relating to financial assistance for students attending                
certain graduate education programs; and providing for an effective            
date."                                                                         
                                                                               
     - MOVED CSHB 193(HES) OUT OF COMMITTEE                                    
                                                                               
* HOUSE CONCURRENT RESOLUTION NO. 19                                           
Relating to the Alaska Council of Deaf, Hard of Hearing, and                   
Deaf/Blind.                                                                    
                                                                               
     - MOVED HCR 19 OUT OF COMMITTEE                                           
                                                                               
* HOUSE BILL NO. 256                                                           
"An Act relating to regulation of postsecondary educational                    
institutions; and providing for an effective date."                            
                                                                               
     - MOVED HB 256 OUT OF COMMITTEE                                           
                                                                               
                                                                               
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 148                                      
"An Act relating to the public school funding program; relating to             
the definition of a school district, to the transportation of                  
students, to school district layoff plans, to the special education            
service agency, to the child care grant program, and to compulsory             
attendance in public schools; and providing for an effective date."            
                                                                               
     - HEARD AND HELD                                                          
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
BILL:  SB 187                                                                  
SHORT TITLE: UNIVERSITY TUITION PAYMENT PROGRAM                                
SPONSOR(S): SENATOR(S) WILKEN; REPRESENTATIVE(S) Ogan                          
                                                                               
JRN-DATE      JRN-PG                 ACTION                                    
04/25/97      1483    (S)   READ THE FIRST TIME - REFERRAL(S)                  
04/25/97      1484    (S)   HES                                                
04/28/97              (S)   HES AT  9:00 AM BUTROVICH ROOM 205                 
04/28/97              (S)   MINUTE(HES)                                        
04/28/97      1509    (S)   HES RPT  5DP                                       
04/28/97      1509    (S)   DP: WILKEN, LEMAN, WARD, ELLIS, GREEN              
04/28/97      1510    (S)   ZERO FISCAL NOTE (UA)                              
04/29/97              (S)   RLS AT 10:45 AM FAHRENKAMP RM 203                  
04/29/97              (S)   MINUTE(RLS)                                        
04/29/97      1543    (S)   RULES TO CALENDAR  4/29/97                         
04/29/97      1549    (S)   READ THE SECOND TIME                               
04/29/97      1549    (S)   ADVANCED TO THIRD READING                          
                            UNAN CONSENT                                       
04/29/97      1549    (S)   READ THE THIRD TIME  SB 187                        
04/29/97      1550    (S)   PASSED Y17 N- E3                                   
04/29/97      1550    (S)   EFFECTIVE DATE(S) SAME AS PASSAGE                  
04/29/97      1557    (S)   TRANSMITTED TO (H)                                 
04/30/97      1394    (H)   READ THE FIRST TIME - REFERRAL(S)                  
04/30/97      1394    (H)   HES                                                
                                                                               
BILL:  HB 193                                                                  
SHORT TITLE: REPAY GRADUATE EDUCATION AID                                      
SPONSOR(S): HEALTH, EDUCATION & SOCIAL SERVICES                                
                                                                               
JRN-DATE     JRN-DATE             ACTION                                       
03/14/97       665    (H)   READ THE FIRST TIME - REFERRAL(S)                  
03/14/97       665    (H)   HES, FINANCE                                       
03/27/97              (H)   HES AT  3:00 PM CAPITOL 106                        
03/27/97              (H)   MINUTE(HES)                                        
03/27/97              (H)   MINUTE(HES)                                        
04/10/97              (H)   HES AT  3:00 PM CAPITOL 106                        
04/10/97              (H)   MINUTE(HES)                                        
04/30/97              (H)   HES AT  3:30 PM CAPITOL 106                        
                                                                               
BILL:  HCR 19                                                                  
SHORT TITLE: COUNCIL OF DEAF/HARD OF HEARING/DEAF/BLIND                        
SPONSOR(S): REPRESENTATIVE(S) BUNDE, Brice, Berkowitz                          
                                                                               
JRN-DATE     JRN-DATE             ACTION                                       
04/18/97      1171    (H)   READ THE FIRST TIME - REFERRAL(S)                  
04/18/97      1171    (H)   HES                                                
04/21/97      1225    (H)   COSPONSOR(S): BERKOWITZ                            
04/30/97              (H)   HES AT  3:30 PM CAPITOL 106                        
                                                                               
BILL:  HB 256                                                                  
SHORT TITLE: REGULATION OF POSTSECONDARY SCHOOLS                               
SPONSOR(S): REPRESENTATIVE(S) DAVIS                                            
                                                                               
JRN-DATE     JRN-DATE             ACTION                                       
04/21/97      1212    (H)   READ THE FIRST TIME - REFERRAL(S)                  
04/21/97      1212    (H)   HES                                                
04/30/97              (H)   HES AT  3:30 PM CAPITOL 106                        
                                                                               
BILL:  HB 148                                                                  
SHORT TITLE: SCHOOL FUNDING ETC./ CHILD CARE GRANTS                            
SPONSOR(S): HEALTH, EDUCATION & SOCIAL SERVICES                                
                                                                               
JRN-DATE     JRN-DATE             ACTION                                       
02/18/97       382    (H)   READ THE FIRST TIME - REFERRAL(S)                  
02/18/97       382    (H)   HES, FINANCE                                       
04/04/97       988    (H)   SPONSOR SUBSTITUTE INTRODUCED-REFERRALS            
04/04/97       988    (H)   READ THE FIRST TIME - REFERRAL(S)                  
04/04/97       989    (H)   HES, FINANCE                                       
04/08/97              (H)   HES AT  3:00 PM CAPITOL 106                        
04/08/97              (H)   MINUTE(HES)                                        
04/24/97              (H)   HES AT  3:00 PM CAPITOL 106                        
04/24/97              (H)   MINUTE(HES)                                        
04/28/97              (H)   HES AT  3:30 PM CAPITOL 106                        
04/28/97              (H)   MINUTE(HES)                                        
04/30/97              (H)   HES AT  3:30 PM CAPITOL 106                        
                                                                               
WITNESS REGISTER                                                               
                                                                               
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 CSHB 193(HES).                               
                                                                               
DAN SADDLER, Legislative Secretary                                             
   to Representative Bunde                                                     
Alaska State Legislature                                                       
Capitol Building, Room 104                                                     
Juneau, Alaska  99801                                                          
Telephone:  (907) 465-4843                                                     
POSITION STATEMENT:  Provided sponsor statement for HCR 19.                    
                                                                               
MS. KAYA, Treasurer                                                            
Alaska Council on Deaf, Hard of Hearing and Deaf/Blind Council                 
475 Hall Street                                                                
Fairbanks, Alaska  99701                                                       
Telephone:  (907) 456-5913                                                     
POSITION STATEMENT:  Testified on HCR 19.                                      
                                                                               
ALAN CARTWRIGHT, President                                                     
Alaska Council on Deaf, Hard of Hearing and Deaf/Blind Council                 
731 Gambell Street                                                             
Anchorage, Alaska 99701                                                        
Telephone:  (907) 276-3456                                                     
POSITION STATEMENT:  Testified on HCR 19.                                      
                                                                               
DUANE MAYES, State Coordinator for the Deaf                                    
Division of Vocational Rehabilitation                                          
Department of Education                                                        
3600 Bragaw Road                                                               
Anchorage, Alaska  99508                                                       
Telephone:  (907) 261-8226                                                     
POSITION STATEMENT:  Testified in support of HCR 19.                           
                                                                               
DARRELL CAMPBELL, Member                                                       
Governor's Council on Disabilities and Special Education                       
P.O. Box 240249                                                                
Anchorage, Alaska  99514                                                       
Telephone:  (907) 276-3456                                                     
POSITION STATEMENT:  Testified in support of HCR 19.                           
                                                                               
MARCIA BARNES, Member                                                          
Alaska Council on Deaf, Hard of Hearing and Deaf/Blind Council                 
731 Gambell Street, Number 200                                                 
Anchorage, Alaska  99501                                                       
Telephone:  (907) 276-3456                                                     
POSITION STATEMENT:  Testified in support of HCR 19.                           
                                                                               
DERRILL JOHNSON, Developmental Disabilities                                    
Division of Mental Health and Developmental Disabilities                       
Department of Health and Social Services                                       
P.O. Box 110620                                                                
Juneau, Alaska  99811-0620                                                     
Telephone:  (907) 465-3370                                                     
POSITION STATEMENT:  Testified on HCR 19.                                      
                                                                               
REPRESENTATIVE GARY DAVIS                                                      
Alaska State Legislature                                                       
Capitol Building, Room 513                                                     
Juneau, Alaska  99801                                                          
Telephone:  (907) 465-2693                                                     
POSITION STATEMENT:  Sponsor of HB 256.                                        
                                                                               
DEBORAH CRAIG, Director                                                        
Institutional Relations                                                        
Postsecondary Education Commission                                             
Department of Education                                                        
3030 Vintage Boulevard                                                         
Juneau, Alaska  99801-7109                                                     
Telephone:  (907) 465-6740                                                     
POSITION STATEMENT:  Testified on HB 256.                                      
                                                                               
JENNIFER DEITZ, Member                                                         
Alaska Association of Private Career Educators                                 
Owner, Career Academy                                                          
P.O. Box 671261                                                                
Chugiak, Alaska  99567                                                         
Telephone:  (907) 688-6488                                                     
POSITION STATEMENT:  Testified on HB 256.                                      
                                                                               
EDDY JEANS, Manager                                                            
School Finance Section                                                         
Department of Education                                                        
801 West Tenth Street, Suite 200                                               
Juneau, Alaska  99801-1894                                                     
Telephone:  (907) 465-2891                                                     
POSITION STATEMENT:  Testified on HB 148.                                      
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 97-38, SIDE A                                                             
Number 0000                                                                    
                                                                               
CHAIRMAN CON BUNDE called the House Health, Education and Social               
Services Standing Committee meeting to order at 3:34 p.m.  Members             
present at the call to order were Representatives Bunde, Green,                
Porter and Kemplen.  Representative Dyson and Brice arrived at 3:38            
p.m. and 4:05 p.m, respectively.  Representative Vezey was absent.             
This meeting was teleconferenced to Anchorage and Fairbanks.                   
                                                                               
SB 187 - UNIVERSITY TUITION PAYMENT PROGRAM                                    
                                                                               
Number 0095                                                                    
                                                                               
CHAIRMAN BUNDE brought up SB 187, "An Act relating to disclosure of            
public records identifying a participant in the advance college                
tuition payment program; relating to the composition and assets of             
the Alaska advance college tuition payment fund; relating to                   
administration of the advance college tuition payment program;                 
relating to advance college tuition payment contracts; and                     
providing for an effective date."                                              
                                                                               
CHAIRMAN BUNDE said this bill passed out of the Senate and was                 
referred to the House Health, Education and Social Services                    
Standing Committee.  He asked the committee members to waive SB
187, as the committee had passed the House version of the bill, HB
254.                                                                           
                                                                               
REPRESENTATIVE JOE GREEN clarified that it was the same bill.                  
                                                                               
HB 193 - REPAY GRADUATE EDUCATION AID                                          
                                                                               
Number 0147                                                                    
                                                                               
CHAIRMAN BUNDE announced the next item on the agenda was HB 193,               
"An Act relating to financial assistance for students attending                
certain graduate education programs; and providing for an effective            
date."  He referred to a committee substitute.                                 
                                                                               
Number 0159                                                                    
                                                                               
REPRESENTATIVE BRIAN PORTER made a motion to adopt the proposed                
committee substitute for HB 193, dated April 24, 1997.  There being            
no objection, CSHB 193(HES) was before the committee.                          
                                                                               
Number 0163                                                                    
                                                                               
CHAIRMAN BUNDE explained that CSHB 193(HES) addressed some of the              
questions raised by the Postsecondary Education Commission                     
regarding consistency.  He referred to a companion bill which is               
winding its way through the Senate.  Two options were available to             
the committee, but he preferred to remain with the first                       
calculation.  He drew the committee's attention to page 3, which               
lists those calculations.  The first calculation requires that the             
students repay the tuition differential for all four years.  The               
second calculation would exempt them from having to pay for the                
first year and would only require that the tuition differential be             
repaid for the second, third and fourth year.  Tuition would have              
to be repaid in both cases if the individual did not return to                 
Alaska.  He reiterated that he preferred to use the first                      
calculation.                                                                   
                                                                               
Number 310                                                                     
                                                                               
DIANE BARRANS, Executive Director, Postsecondary Education,                    
Commission, Department of Education, said it was fair to say that              
the commission's concerns were addressed in CSHB 193(HES).                     
                                                                               
Number 0351                                                                    
                                                                               
REPRESENTATIVE PORTER made a motion to move CSHB 193(HES) with                 
individual recommendations and attached fiscal notes.  There being             
no objection, CSHB 193(HES) was moved from the House Health,                   
Education and Social Services Standing Committee.                              
                                                                               
HCR 19 - COUNCIL OF DEAF/HARD OF HEARING/DEAF/BLIND                            
                                                                               
Number 0380                                                                    
                                                                               
CHAIRMAN BUNDE announced the next item on the agenda was HCR 19,               
Relating to the Alaska Council of Deaf, Hard of Hearing, and                   
Deaf/Blind.                                                                    
                                                                               
Number 0420                                                                    
                                                                               
DAN SADDLER, Legislative Secretary to Representative Bunde, said               
HCR 19 was designed to offer recognition and encouragement to a                
volunteer, nonprofit organization that is dedicated to improving               
the quality of services available to assist Alaska's deaf, hard of             
hearing and deaf/blind citizens.  The Alaska Council of Deaf, Hard             
of Hearing and Deaf/Blind has been operating for two years.  Its               
members are drawn from several nonprofit organizations already                 
operating in Southeast, Interior and Southcentral Alaska.  Members             
are also drawn from representatives of state councils dealing with             
this community.                                                                
                                                                               
MR. SADDLER explained that the council was established to address              
the need for a central clearinghouse of information on the services            
available and needed by the community of deaf, hard of hearing and             
deaf/blind Alaskans.  The council is not so much a warehouse that              
provides services, but acts as a library and forum where                       
information about these services is available for consumers and                
providers to share.  While many individuals, agencies and                      
institutions serving this community have good intentions, they are             
hampered sometimes by their isolation from the large body of                   
knowledge on deaf, hard of hearing and deaf/blind issues available             
elsewhere.  This community comprises a distinct linguistic and                 
cultural minority which is different from the mainstream linguistic            
and cultural population.  Resources for these Alaskans are limited             
and fragmented.  Qualified professionals are rare and standards of             
performance don't exist for most people who are trying to provide              
human services to this group.                                                  
                                                                               
Number 0532                                                                    
                                                                               
MR. SADDLER stated that there are at least 6,000 Alaskans who have             
some type of hearing loss.  This loss can be caused by the effects             
of snow machines, chain saws or industrial noise.  Most times                  
hearing loss is rooted in genetics or in the effects of childhood              
ear infections.  At least 40 states have recognized councils,                  
commissions or task forces related to the deaf.  This resolution               
will provide the Alaska council an increased prominence in our                 
state which should encourage various individuals, organizations and            
agencies to utilize their services.  The resolution will also                  
encourage other nonprofits to continue offering this council their             
financial and organizational support.                                          
                                                                               
MR. SADDLER said it is important to note several things this                   
resolution does not do.  It does not create any state council,                 
agency or panel.  It does not establish this council as the sole               
voice of Alaska's deaf, hard of hearing and deaf/blind community.              
It does not bar any other organization from providing services.  It            
does not cost the state a penny.  He encouraged the committee to               
support this resolution to recognize and encourage the Alaska                  
Council of Deaf, Hard of Hearing, and Deaf/Blind in its work,                  
sharing information and fostering understanding to improve the                 
quality of services available to this group of Alaskans.                       
                                                                               
Number 0625                                                                    
                                                                               
REPRESENTATIVE PORTER cited a personal experience of hearing loss.             
He stated that there is a lot of misunderstanding and a lack of                
acceptance for the needs of people who are hard of hearing and                 
deaf.  He felt there was room for increased understanding and that             
the council was well positioned to accomplish this task.                       
                                                                               
Number 0736                                                                    
                                                                               
MS. KAYA, Treasurer, Alaska Council on Deaf, Hard of Hearing and               
Deaf/Blind Council, testified next via teleconference from                     
Fairbanks.  She said the council has been gathering information and            
becoming a resource for many communities.  She travels to the rural            
areas of northern Alaska to work with these issues and collect                 
data.  She felt there were 60,000 people in Alaska who are deaf,               
hard of hearing and deaf/blind, not 6,000.  The national average               
states that 8 percent of people have some type of hearing loss                 
ranging from mild to severe.  Alaska is known to have a much higher            
than this national average.  If you take the Alaska population and             
multiply it by 8 percent, you will derive a figure somewhere near              
60,000.                                                                        
                                                                               
Number 0848                                                                    
                                                                               
CHAIRMAN BUNDE commented that 60,000 would fall into the category              
of hearing loss and perhaps the 6,000 referred to the profoundly               
deaf.                                                                          
                                                                               
Number 0855                                                                    
                                                                               
REPRESENTATIVE GREEN asked why Alaska was significantly higher                 
regarding hearing loss.                                                        
                                                                               
Number 0873                                                                    
                                                                               
MS. KAYA answered that there are a variety of theories:  snow                  
machine use, hunting, equipment and ear infections.  Alaska has a              
much higher proportion of ear infections due to the weather and                
lack of medical care in the more rural areas.                                  
                                                                               
Number 0904                                                                    
                                                                               
CHAIRMAN BUNDE mentioned that when he worked as a speech and                   
hearing therapist, he worked with people who had bilateral losses.             
There were so many people with this type of loss that people                   
weren't operated on unless they were severely impacted in both                 
ears.                                                                          
                                                                               
Number 0940                                                                    
                                                                               
ALAN CARTWRIGHT, President, Alaska Council on Deaf, Hard of Hearing            
and Deaf/Blind Council, testified next via teleconference from                 
Anchorage.  He said there are networking systems throughout the                
state which provide accurate information to those who need to                  
decide policy and programs.  These decisions will ensure a better              
quality of services for the state of Alaska.  He strongly                      
appreciated the legislative stand in HCR 19.                                   
                                                                               
Number 0938                                                                    
                                                                               
DUANE MAYES, State Coordinator for the Deaf, Division of Vocational            
Rehabilitation, Department of Education, testified next via                    
teleconference from Anchorage.  The division supports this                     
resolution.                                                                    
                                                                               
Number 1009                                                                    
                                                                               
DARRELL CAMPBELL, Member, Governor's Council on Disabilities and               
Special Education, testified next via teleconference from                      
Anchorage.  The Governor's council is in favor of HCR 19 because               
the Alaska Council on Deaf, Hard of Hearing and Deaf/Blind Council             
represents organizations and agencies throughout the state.  The               
council can assist the Governor's council to give advice on how to             
be better prepared and to provide quality services for the deaf,               
hard of hearing and deaf/blind.  He appreciated the legislature's              
support of HCR 19.                                                             
                                                                               
Number 1051                                                                    
                                                                               
MARCIA BARNES, Member, Alaska Council on Deaf, Hard of Hearing and             
Deaf/Blind Council, testified next via teleconference from                     
Anchorage.  She has worked as a coordinator for deaf/blind services            
and explained that one of the difficulties was getting the proper              
information to correctly identify the population.  There is a                  
misconception that a hearing aid can solve all the problems for a              
hard of hearing person.  This resolution will assist the council in            
promoting a better understanding of these types of issues.                     
                                                                               
Number 1129                                                                    
                                                                               
DERRILL JOHNSON, Developmental Disabilities, Division of Mental                
Health and Developmental Disabilities, Department of Health and                
Social Services, said the department wants to support HCR 19.  They            
feel it provides a public endorsement of past efforts and they                 
believe that this council can become an advocacy organization for              
the deaf and hard of hearing.  The organization has created a role             
for themselves as an established clearinghouse for information                 
which goes out into the community in a wide variety of means.  This            
council has successfully acted as a referral agency for information            
to families who might just be starting to learn about this subject.            
This council can be a potential future provider of services, but               
they will also be able to work as a liaison with existing agencies.            
He felt this council has been very effective in bringing the needs             
of the deaf community to the planners for future funding and                   
services.                                                                      
                                                                               
Number 1222                                                                    
                                                                               
REPRESENTATIVE FRED DYSON made a motion to move HCR 19 with                    
individual recommendations.  There being no objection, HCR 19 was              
moved from the House Health, Education and Social Services Standing            
Committee.                                                                     
                                                                               
HB 256 - REGULATION OF POSTSECONDARY SCHOOLS                                   
                                                                               
Number 1244                                                                    
                                                                               
CHAIRMAN BUNDE announced the next item on the agenda was HB 256,               
"An Act relating to regulation of postsecondary educational                    
institutions; and providing for an effective date."                            
                                                                               
Number 1253                                                                    
                                                                               
REPRESENTATIVE GARY DAVIS, Sponsor of HB 256, explained that HB 256            
provides language that agencies will cover their own cost of                   
implementing regulations and statutes.  The Alaska Commission on               
Postsecondary Education, through regulations, operates the numerous            
vocational and secondary education programs and schools throughout             
the state in order to protect students and the public.  Currently              
the $100 fee for program authorization is inadequate.  The section             
of the commission which authorizes and investigates these                      
institutions has a one and a half person staff.                                
                                                                               
Number 1377                                                                    
                                                                               
REPRESENTATIVE DAVIS said the essence of the bill is located on                
page 2, Section 2, relating to the implementation of fees through              
regulation.  This would not be fee specific, but a fee structure               
based on enrollment and the tuition generated from each                        
institution.  Research has found that Alaska has a low                         
authorization fee.                                                             
                                                                               
Number 1446                                                                    
                                                                               
CHAIRMAN BUNDE cited an example where one of these institutions                
went bankrupt a month ago.  He pointed to the need for these                   
authorizations.                                                                
                                                                               
Number 1465                                                                    
                                                                               
REPRESENTATIVE DAVIS said this was a good example of why we need               
the staff to go in and investigate situations and staff to make                
sure that the institutions authorized by the license are properly              
screened.                                                                      
                                                                               
Number 1496                                                                    
                                                                               
DEBORAH CRAIG, Director, Institutional Relations, Postsecondary                
Education Commission, Department of Education, stated that the                 
purpose in institutional authorization is to set standards relating            
to the quality of education as it affects health, safety, fiscal               
responsibility, et cetera and to address rights and remedies                   
available to the public.  Organizationally, there has been a period            
of flux within her section and serious looks have been taken in                
regards to cost efficiencies and professionalism.  This fee                    
structure is something which was broached in the past.                         
                                                                               
Number 1549                                                                    
                                                                               
MS. CRAIG referred to an information packet located in the                     
committee file.  Research was done in 25 of 50 states, Alaska was              
at the low end of the spectrum.  The fees from various states were             
set at a percentage of the total tuition and by tuition generated              
by the schools.  The sample fee structure has been based on a                  
percentage of tuition and fee revenue, setting a minimum and                   
maximum.  The minimum has been set at $500, recognizing that there             
is a minimum cost to the commission to authorize the institution.              
There was also a reluctance to burden schools, so the high end of              
the fees was capped at $2,500.                                                 
                                                                               
Number 1616                                                                    
                                                                               
MS. CRAIG explained that over 60 percent of the schools under this             
authorization have revenues over $80,000.  These school would only             
pay $2,500.  Only 17 percent of institutions have revenues under               
$17,000, the level at which the $500 fee is set.  There are                    
relatively few small schools who would be impacted by this fee                 
schedule and a larger number of schools would benefit from capping             
the fee.  The authorization is from one to five years, the cost                
varies based on the school's performance.  This mechanism allows               
the commission to honor those schools who operate in an appropriate            
fashion.  If authorized for a longer period of time, then the cost             
for authorization would be lessened than if it were calculated on              
a yearly basis.  Conversely, those schools which require more time,            
based on their performance, would be held responsible by more                  
frequent authorization fees.                                                   
                                                                               
Number 1666                                                                    
                                                                               
CHAIRMAN BUNDE stated that the current fee schedule is heavily                 
subsidized.  He asked if this subsidy came from general fund money             
or from the operating budget of the Postsecondary Education                    
Commission which is bonded.                                                    
                                                                               
Number 1679                                                                    
                                                                               
MS. CRAIG answered that it came from corporate receipts.                       
                                                                               
Number 1681                                                                    
                                                                               
CHAIRMAN BUNDE explained that on a global view, the student loan               
program is funded by corporate receipts and it is challenging for              
those receipts to meet all the demands of the program.  Currently,             
there are student loans which are subsidizing these businesses.                
                                                                               
Number 1702                                                                    
                                                                               
REPRESENTATIVE GREEN referred to the minimum and maximum fees and              
asked if the amount charged would not be a fixed formula and not               
open to discretion, but a combination of both.                                 
                                                                               
Number 1727                                                                    
                                                                               
MS. CRAIG said the sample fee structure is one that would be set in            
regulation.  The fee schedule would be based on a percentage of                
tuition and fee revenue with a fixed minimum and maximum.  The fees            
would be on a sliding scale between the $500 and $2,500.                       
                                                                               
Number 1738                                                                    
                                                                               
REPRESENTATIVE GREEN thought he heard a discussion about the use of            
discretion in determining the fees.                                            
                                                                               
Number 1745                                                                    
                                                                               
MS. CRAIG answered that there is discretion in terms of the length             
of time that the commission would authorize a school to operate,               
based on their performance.                                                    
                                                                               
REPRESENTATIVE GREEN clarified that it is the length of time and               
not the amount of the fee that is discretionary.                               
                                                                               
Number 1755                                                                    
                                                                               
REPRESENTATIVE PORTER stated that the normal regulatory process                
would be followed and instituted in these fees, the people impacted            
would have the ability to come forward and avoid situations which              
occurred in recent years.                                                      
                                                                               
Number 1776                                                                    
                                                                               
MS. CRAIG explained that she has only been made aware of those                 
situations in retrospect.                                                      
                                                                               
Number 1786                                                                    
                                                                               
REPRESENTATIVE DAVIS said that when Ms. Craig came to him with the             
proposal he was reminded of the situation referred to by                       
Representative Porter.  As a result he questioned how the                      
institutions felt about this fee change.  The answer was that it               
had been discussed with these schools, it shouldn't be a surprise              
to them and they should know that something like this would be                 
proposed.  After investigating, he did not feel there was a                    
collective opposition.                                                         
                                                                               
Number 1827                                                                    
                                                                               
MS. CRAIG added that her background is in administering vocational             
education programs.  She understood what it takes to operate a                 
"tight ship" and is sympathetic to a school's needs and the                    
parameters under which they operate.  The goal in this whole                   
structure was to try to find a mechanism that was fair and                     
equitable.  She stated that as a former school administrator, she              
would testify that this would increase the cost of operating.  She             
felt the commission was charged with finding a mechanism to make               
this fair and equitable for the state and the regulated public.                
                                                                               
Number 1865                                                                    
                                                                               
CHAIRMAN BUNDE commented that those schools who would receive the              
capped fee would still be subsidized.                                          
                                                                               
Number 1875                                                                    
                                                                               
MS. CRAIG clarified that the proposed fees would not cover the cost            
of the service.  Over 60 percent of schools had revenues that if               
the calculation were based on a percentage basis would place them              
over the $2,500 fee.                                                           
                                                                               
Number 1902                                                                    
                                                                               
REPRESENTATIVE DAVIS mentioned a section in HB 256 which relates to            
investigations.  This would assist the commission in recovering                
costs involved in investigations based on complaints.  These costs             
do not specifically relate to the fees.                                        
                                                                               
Number 1943                                                                    
                                                                               
MS. CRAIG explained that there are three components to the bill:               
the fee component, clarification of which schools are exempt from              
authorization, and allowing the commission to recoup some of their             
costs of investigation and adjudication of cases when schools have             
engaged in acts which clearly violate statute and regulation.  The             
language clearly states that the school must clearly be in                     
violation of statute and regulation for the commission to recoup               
some of these costs.  These recouped costs are capped at $5,000.               
Recently, the state paid significant amounts of money to                       
investigate and adjudicate a situation where the school was clearly            
out of compliance.                                                             
                                                                               
Number 1990                                                                    
                                                                               
JENNIFER DEITZ, Member, Alaska Association of Private Career                   
Educators, Owner, Career Academy, testified next via teleconference            
from Anchorage.  She spoke in favor of the commission's attempt to             
streamline the processes and procedures, rewriting the statute so              
that it was clearer.  She spoke with Theresa Williams who helped               
her understand some of the nuances of the language.  She expressed             
concern regarding the fee structure as it is ambiguous,                        
specifically regarding the initial authorization and the                       
application fee.  As a new school entering the state of Alaska, a              
tremendous amount of the commission's time is spent evaluating the             
school's ability to be a school.  She thought their fee should                 
probably be higher than the fee for a school that has been doing               
business in the state and has a track record with the commission.              
                                                                               
Number 2044                                                                    
                                                                               
MS. DEITZ explained that as a state association representing about             
40 different types of institutions, some larger than others, she               
cautioned against overburdening small institutions who will be                 
paying a higher cost per student.  She referred to Ms. Craig's                 
comment about the commission spending an inordinate amount of time             
investigating those smaller schools.  As the owner of an accredited            
school, she felt that she was asked by every possible government               
body for fees and structures, eventually those costs are passed on             
to the students.  She wanted to find some way for schools that are             
doing a good job and meeting or exceeding the standards of the                 
commission to not suffer under all these fees.                                 
                                                                               
Number 2096                                                                    
                                                                               
REPRESENTATIVE DYSON stated that his consulting firm is registered             
with the commission.                                                           
                                                                               
Number 2132                                                                    
                                                                               
REPRESENTATIVE PORTER made a motion to move HB 256 out of                      
committee.  There being no objection, HB 256 was moved from the                
House Health, Education and Social Services Standing Committee.                
                                                                               
TAPE 97-38, SIDE B                                                             
                                                                               
HB 148 - SCHOOL FUNDING ETC./ CHILD CARE GRANTS                                
                                                                               
CHAIRMAN BUNDE announced the next item on the agenda was HB 148,               
"An Act relating to the public school funding program; relating to             
the definition of a school district, to the transportation of                  
students, to school district layoff plans, to the special education            
service agency, to the child care grant program, and to compulsory             
attendance in public schools; and providing for an effective date.             
                                                                               
Number 0069                                                                    
                                                                               
EDDY JEANS, Manager, School Finance Section, Department of                     
Education, referred to a handout titled, "HB 148 School Funding                
Formula, Overview."  The first page outlined the process to                    
determine a district's adjusted average daily membership (ADM).                
The equalization funding is set in Section 14.17.410(a)(1),                    
starting on page two of the draft legislation, CSHB 148(HES).  All             
adjustments are set in either statute or regulation and the only               
variable, collected from the school districts under this formula,              
is the ADM.                                                                    
                                                                               
Number 0159                                                                    
                                                                               
MR. JEANS stated that the first item on the handout is the size                
adjustment.  Each school district is divided into a funding                    
community.  This is the community which is being served with the               
exception of the larger communities who have high schools being fed            
by junior high and elementary schools.  The next adjustment is the             
area cost factor which is assigned at the funding community level.             
In the draft legislation, there are seven different area cost                  
differentials as opposed to current statute which has 23 different             
cost differentials assigned to each school district.                           
                                                                               
MR. JEANS said the department will repeat steps one and two for a              
school district.  They will look up the size adjustment based on               
the ADM for that community and the area cost factor which has been             
set for that funding community.  If the process is only done one               
time because there is only one funding community in that district,             
then it is a single site school district.  There is an additional              
adjustment for a school district serving less than 900 students.               
                                                                               
MR. JEANS explained that the next adjustment takes the result and              
multiplies it times the special needs factor which is 1.20.  The               
next step is to determine the student transportation, as it will be            
set in regulation and assigned to school districts, located in                 
Section 26.  Once this process is completed for all the funding                
communities within the school district then they are totaled.  This            
final amount is called the district's adjusted ADM.                            
                                                                               
MR. JEANS stated that the intensive funding is taken into                      
consideration.  This adjustment involves those students who are                
severely handicapped and have high costs associated with their                 
education.  The draft legislation calls for an allocation of                   
$22,500 for each one of these students, adjusted by the area cost              
differential for that community.  Currently, the state of Alaska               
has approximately 1,200 of these students.                                     
                                                                               
MR. JEANS said that the adjusted ADM is multiplied by the base                 
student allocation.  Then the intensive funding is added to                    
determine what is called the district need.  The basic formula to              
determine district need takes the ADM multiplied by the size                   
adjustment multiplied by the area cost factor multiplied by the                
single site adjustment multiplied by the special needs adjustment              
multiplied by the transportation adjustment plus the intensive                 
funding allocation.                                                            
                                                                               
MR. JEANS explained the process to determine state aid.  They start            
with the district's need, subtract the required local effort and               
end up with the amount of state aid.                                           
                                                                               
Number 0350                                                                    
                                                                               
CHAIRMAN BUNDE asked how many localities have no required local                
contribution.                                                                  
                                                                               
Number 0362                                                                    
                                                                               
MR. JEANS answered that there are 19 out of the 53 school districts            
which do not currently have a required local contribution.                     
                                                                               
Number 0375                                                                    
                                                                               
REPRESENTATIVE GREEN said the special needs multiplier would tend              
to increase the differences between a large school and a smaller               
school as it multiples on a scale greater than one.  He asked if               
the purpose was to help smaller schools and if this same thing                 
could be accomplished by adjusting the funding community size                  
factor.                                                                        
                                                                               
Number 0406                                                                    
                                                                               
MR. JEANS answered that it could be achieved by adjusting the size             
factor.  The purpose behind the 20 percent allocation for special              
needs is to identify a pool of money that is available for                     
districts to address special education needs, bilingual needs and              
the vocational needs for that district.  This multiplier creates a             
pool of resources without one particular name attached to it.                  
                                                                               
Number 0433                                                                    
                                                                               
REPRESENTATIVE GREEN verified that everyone gets the 1.2                       
multiplier.                                                                    
                                                                               
MR. JEANS referred to page two of the handout.                                 
                                                                               
Number 0439                                                                    
                                                                               
CHAIRMAN BUNDE wanted to clarify that CSHB 148(HES) also calls for             
a study of the area cost differential.  There are those who feel               
that the world has changed since that the area cost differential               
was last calculated.  The study would determine how much this area             
cost differential would be and who would qualify.                              
                                                                               
Number 0467                                                                    
                                                                               
MR. JEANS stated that the area cost differentials, in current                  
statute, are assigned at a school district level and are based on              
the 1985 state employee wage differentials with some recommended               
adjustments by Dr. Nat Cole (Ph.)  The Department of Education                 
(DOE) has believed, for a number of years, that the area cost                  
differentials need to be moved down to a funding community level.              
This addresses concerns expressed by municipalities such as Kenai.             
Kenai has both large and smaller, remote communities.  Currently               
the city of Kenai has an area cost differential of 1.0 as does that            
smaller, remote community across the inlet.                                    
                                                                               
Number 0516                                                                    
                                                                               
CHAIRMAN BUNDE explained that not only would the study talk about              
the amount of the multiplier, but it who would get the specific                
amount.  It would change from the school district to the school.               
                                                                               
Number 0525                                                                    
                                                                               
MR. JEANS commented that the DOE wants to study the cost of                    
operating a school, not the cost of living in that district.                   
                                                                               
MR. JEANS said that page two goes through some calculations.  They             
picked the Kashunamiut School District, a single site school                   
district serving the community of Chevak.  The ADM for fiscal year             
1998 projected 269 students.  Referring back to a chart on page one            
the funding community has a size factor of 1.40.  The area cost                
factor has been determined to be 1.32 for this community.  This                
factor generates $497.11.  The base ADM determines the single site             
adjustment, in this case 1.08.  All districts receive the                      
adjustment of 1.20 for special needs.  Chevak does have some                   
transportation services, but they are very minimal.  When this was             
taken in consideration of their total budget, it was not                       
measurable.  As a result their transportation adjustment was 1.0.              
                                                                               
MR. JEANS stated that you go through and multiply each one of these            
and you arrive at the district's adjusted ADM which is the $644.26.            
The first year of this bill would see a student allotment of $3,400            
per student.  There are some student transition allocations.                   
                                                                               
Number 0629                                                                    
                                                                               
REPRESENTATIVE PORTER asked what computation was used to determine             
the $3,400.                                                                    
                                                                               
Number 0634                                                                    
                                                                               
MR. JEANS explained that the task is to keep the total money                   
appropriated for education the same, not to increase it.  A formula            
is developed and then the result is backed into the student                    
allocation which keeps the Governor's request of $659 million for              
the foundation program in fiscal year 1998.                                    
                                                                               
Number 0661                                                                    
                                                                               
REPRESENTATIVE GREEN clarified that the amount was just a portion              
of that total.                                                                 
                                                                               
Number 0667                                                                    
                                                                               
REPRESENTATIVE PORTER asked if it was a function of the $644.26.               
                                                                               
Number 0676                                                                    
                                                                               
MR. JEANS answered that it is a function of all the adjusted ADMs              
statewide.  The intensive funding had to be backed out of the total            
amount to arrive at the student allocation.  The intent was to keep            
the same level of funding, to not increase or decrease funding for             
education.                                                                     
                                                                               
Number 0696                                                                    
                                                                               
MR. JEANS said Chevak has projected that three students will                   
require intensive services.  This intensive service allocation is              
multiplied times the area cost differential to come up with the                
figure of 3.96.  The intensive allocation is set in the draft                  
legislation at $22,500 so their intensive funding would be $89,100.            
When this amount is added to the base funding, the district need is            
$2,279,584.                                                                    
                                                                               
MR. JEANS stated the next thing is a determination of whether or               
not this district has a required local contribution.  There are two            
ways to measure the required local contribution in the draft                   
statute:  35 percent of the district's need or the equivalent of a             
3 mill tax levy on the full and true value as established by the               
Department of Community and Regional Affairs (DCRA).  The lesser of            
the two is the local contribution.  He said 35 percent of Chevak's             
need would be $797,854, but they do not have a full value                      
determination as established by the DCRA.  Therefore, Chevak's                 
required local effort is zero.  Zero is subtracted from their need             
and the state aid is determined to be $2,279,584.                              
                                                                               
Number 0767                                                                    
                                                                               
REPRESENTATIVE PORTER asked why Chevak did not have full value                 
determination as established by the DCRA.                                      
                                                                               
Number 0775                                                                    
                                                                               
MR. JEANS explained that DCRA provides the full value                          
determination, which is the real and personal property of those                
communities which have taxing authority.  Those are the first class            
and organized municipalities or boroughs.  Chevak is in the                    
category of "unorganized borough."  Therefore, they don't have a               
property value.                                                                
                                                                               
REPRESENTATIVE PORTER clarified that it is not a matter of the                 
state assessment, but a matter of them being organized and doing               
their own assessment.                                                          
                                                                               
Number 0804                                                                    
                                                                               
MR. JEANS explained that CSHB 148(HES) does have a hold harmless               
provision to protect districts from dramatic changes due to the                
change in the formula.  The legislation states that in the first               
year the district will not receive less than 100 percent of what               
they would have received under the previous formula through their              
allocation under the single site and through their allocation of               
transportation.                                                                
                                                                               
CHAIRMAN BUNDE announced that this meeting would end so that the               
committee could hold an informal work session.  He indicated it                
would be off the record.                                                       
                                                                               
TAPE 97-39                                                                     
                                                                               
[THE WORK SESSION WAS RECORDED BUT NO LOG NOTES WERE TAKEN.  A COPY            
OF TAPE 97-39 MAY BE OBTAINED BY CONTACTING THE HOUSE RECORDS                  
OFFICE AT 130 SEWARD STREET, SUITE 211, JUNEAU, ALASKA 99801-1182,             
(907) 465-2214, AND AFTER ADJOURNMENT OF THE SECOND SESSION OF THE             
TWENTIETH ALASKA STATE LEGISLATURE, IN THE LEGISLATIVE REFERENCE               
LIBRARY.]                                                                      
                                                                               
ADJOURNMENT                                                                    
                                                                               
CHAIRMAN BUNDE adjourned the meeting of the House Health, Education            
and Social Services Standing Committee at 4:45 p.m.                            

Document Name Date/Time Subjects