Legislature(2023 - 2024)GRUENBERG 120
04/22/2024 01:00 PM House JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| HB163 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 163 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE JUDICIARY STANDING COMMITTEE
April 22, 2024
1:11 p.m.
MEMBERS PRESENT
Representative Sarah Vance, Chair
Representative Jamie Allard, Vice Chair
Representative Ben Carpenter
Representative Craig Johnson
Representative Andrew Gray
Representative Cliff Groh
MEMBERS ABSENT
Representative Jesse Sumner
COMMITTEE CALENDAR
HOUSE BILL NO. 163
"An Act creating the FAFSA raffle fund; relating to the
definition of 'gambling'; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 163
SHORT TITLE: FAFSA RAFFLE
SPONSOR(s): REPRESENTATIVE(s) HIMSCHOOT
04/14/23 (H) READ THE FIRST TIME - REFERRALS
04/14/23 (H) JUD, STA, EDC
04/12/24 (H) JUD AT 1:00 PM GRUENBERG 120
04/12/24 (H) <Bill Hearing Canceled>
04/22/24 (H) JUD AT 1:00 PM GRUENBERG 120
WITNESS REGISTER
REPRESENTATIVE REBECCA HIMSCHOOT
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented the proposed CS
for HB 163, Version U.
THATCHER BROUWER, Staff
Representative Rebecca Himschoot
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis and gave
an explanation of changes in the proposed CS for HB 163, Version
U, on behalf of Representative Himschoot, prime sponsor.
SONDRA LUNDVICK, Principal
Sitka High School
Sitka, Alaska
POSITION STATEMENT: Gave invited testimony during the hearing
on the proposed CS for HB 163, Version U.
SANA EFRID, Executive Director
Alaska Commission on Postsecondary Education
Juneau, Alaska
POSITION STATEMENT: Presented a PowerPoint, entitled "FAFSA
Completion in Alaska," during the hearing on the proposed CS for
HB 163, Version U.
ACTION NARRATIVE
1:11:53 PM
CHAIR VANCE called the House Judiciary Standing Committee
meeting to order at 1:11 p.m. Representatives Carpenter, C.
Johnson, Gray, Groh, and Vance were present at the call to
order. Representative Allard arrived as the meeting was in
progress.
HB 163-FAFSA RAFFLE
1:12:33 PM
CHAIR VANCE announced that the only order of business would be
HOUSE BILL NO. 163, "An Act creating the FAFSA raffle fund;
relating to the definition of 'gambling'; and providing for an
effective date."
1:12:58 PM
REPRESENTATIVE CARPENTER moved to adopt proposed committee
substitute (CS) for HB 163, Version 33-LS0628\U, Marx, 4/22/24,
as the working document. There being no objection, Version U
was before the committee.
1:13:28 PM
REPRESENTATIVE REBECCA HIMSCHOOT, Alaska State Legislature,
Juneau, Alaska, presented HB 163, as the prime sponsor. She
paraphrased the sponsor statement [included in the committee
packet], which read as follows [original punctuation provided]:
House Bill 163, FAFSA RAFFLE, creates a raffle for
first-time filers for the Free Application for Federal
Student Aid (FAFSA). Alaska has the lowest FAFSA
completion rate in the nation, leaving over $6,000,000
in student aid on the table annually. The FAFSA is the
largest source of postsecondary education funding in
the United States, providing more than $150 billion in
student financial aid each year. Filing the FAFSA is
an important first step in a postsecondary plan for
students, whether it is to pursue career and technical
training or a college degree.
To help incentivize Alaskans to complete their FAFSA
application, a monthly $1,000 prize will be offered to
first-time FAFSA filers during the open enrollment
period October 1 June 30 each year. Students will
also have the opportunity to win one of five $10,000
prizes when the enrollment period closes. Not having
access to the millions of dollars of financial aid
results in Alaskans either not pursuing education and
career and technical training programs or taking out
larger-than-necessary loans to cover the cost of their
education.
Without completing the FAFSA application students are
severely limited in their ability to access both state
and federal financial aid for education.
Unfortunately, Alaska high school classes of 2021 and
2022 left over $12 million just in Pell Grant funding
by not completing the FAFSA. Alaska students also need
to complete the FAFSA to receive the Alaska
Performance Scholarship, Alaska Education Grant, and
other Alaska institution-based awards. Low-income
students and families cannot access need-based funding
without completing the FAFSA. More students completing
the FAFSA will lead to more students continuing on to
postsecondary education and ultimately result in a
more skilled workforce in Alaska.
This bill is designed to increase the number of
students who fill out their FAFSA applications so
that, in turn, more Alaskans will have the financial
support they need to attend college and career and
technical training programs. This is especially
important given the need in Alaska for a skilled
workforce and the declining college enrollment numbers
among Alaskans.
REPRESENTATIVE HIMSCHOOT mentioned a recent federal revision to
the Free Application for Federal Student Aid (FAFSA) application
that should reduce the amount of time it takes to fill out the
form. She expressed her hope that the incentive in the bill for
Alaskan students, in combination with the federal revision,
should increase the number of applicants.
1:16:54 PM
THATCHER BROUWER, Staff, Representative Rebecca Himschoot,
Alaska State Legislature, on behalf of Representative Himschoot,
prime sponsor of HB 163, presented the sectional analysis
[included in the committee packet], which read as follows
[original punctuation provided]:
Section 1: Amends AS 11.66.280 (3) to define the FAFSA
raffle as "gambling" in statute.
Section 2: Amends AS 14.42.030(b) to require the
Alaska Commission on Postsecondary Education to
administer the FAFSA raffle.
Section 3: Amends AS 14.42.030(e) to allow the
commission to adopt regulations for the FAFSA raffle
and delegates authority to the Executive Director of
the commission to administer the raffle.
Section 4: Amends AS 37.14 by adding a new
section (AS 37.14.850) which establishes the
FAFSA raffle.
• AS 37.14.850(a) Creates FAFSA raffle fund as an
account in the general fund and makes the
Department of Revenue the fund manager.
• AS 37.14.850(b) Allows a student who is a
first-time filer to enter the FAFSA raffle by
providing the commission proof that the student
has completed and submitted the FAFSA and
entitles a student to one entry into each monthly
raffle held during the remaining filing period
and one entry into the annual raffle.
• AS 37.14.850(c) Establishes that there will be
a drawing at the beginning of each month that
follows a month within the FAFSA filing period
for $1,000 and a student may only win once.
• AS 37.14.850(d) Sets a drawing for the five
annual prizes of $10,000 at the beginning of the
month that follows the end of the FAFSA filing
period.
• AS 37.14.850(e) Allows the commission to reduce
the prize amount if there are insufficient funds
for the established prizes.
• AS 37.14.850(f) Requires the commission to
advertise the raffle.
• AS 37.14.850(g) States that this is not a
dedicated fund.
• AS 37.14.850(h) Defines commission, FAFSA,
FAFSA filing period, and fund.
Section 3: Establishes October 1, 2024, as the
effective date.
1:18:44 PM
CHAIR VANCE opened invited testimony.
1:19:19 PM
SONDRA LUNDVICK, Principal, Sitka High School, gave invited
testimony during the hearing on Version U. She explained that
Stika High School is constantly looking for ways to give their
students more opportunities for post-secondary education. She
opined that anything to encourage the completion of the FAFSA
application would help demonstrate to families that they can
afford post-secondary training.
1:21:27 PM
SANA EFRID, Executive Director, Alaska Commission on
Postsecondary Education (ACPE), presented a PowerPoint
presentation, entitled "FAFSA Completion in Alaska" [hard copy
included in the committee packet]. She began on slide 3, "Free
Application for Federal Student Aid," which read as follows
[original punctuation provided]:
• What is the FAFSA? As the first step in the
financial aid process, FAFSA is the application
students need to complete to gain access to the
largest education funding source in the US Federal
Student Aid (FSA). Overseen by the US Department of
Education - FSA provides more than $150 BILLION in
student financial aid annually.
Completing the FAFSA (studentaid.gov) determines
student financial need in connection to a cost of
attendance. Submitting the FAFSA increases students'
funding options and opportunities to attend a
school/trade program and reach their career goals.
MS. EFRID continued to slide 4, "Free Application for Federal
Student Aid," which read as follows [original punctuation
provided]:
FAFSA is not only for Federal loans. By submitting the
FAFSA, students also gain access to:
FEDERAL AID
Pell Grant
Supplemental Education Opportunity Grant
Teach Grant
Work-Study
NON-FEDERAL AID
State Aid
• Alaska Education Grant
• Alaska Performance Scholarship
Institutional/Campus-based aid
Private & Public Scholarships
Alaska has ranked last or close to last in national
FAFSA Completion rates for over a decade.
1:24:44 PM
MS. EFRID continued on slide 6, "What Gets Left Behind?" Slide
6 read as follows [original punctuation provided]:
• By not completing the FAFSA, Alaska's students lose
access to:
o Alaska Performance Scholarship (up to
$4,755/year)
o Alaska Education Grant (up to $4,000/year)
o Federal Pell Grant (up to $7,395/year)
• This adds up:
o $4,755 + $4,000 + $7,395 = $16,150/year lost by
not completing the FAFSA
• Each year, Alaska's high school graduating classes
leave $6-7 MILLION in Federal Pell Grants behind by
not completing the FAFSA
1:26:18 PM
MS. EFRID turned to slides 7-8, "FAFSA Impacts on Alaskans,"
which read as follows [original punctuation provided]:
FAFSA Impacts on Alaskans
• Alaska FAFSA Completion support & implementation is
critical for students
o Alaska HS Classes of 2022 & 2023 left over $12M
in Pell Grants on the table by not completing the
FAFSA
o Nationally, 92% of seniors who complete FAFSA
enroll by the November following graduation vs.
51% who did not complete
o Without the FAFSA, Alaska's students do not
have access to many state and institutional
scholarships and grants
Without access to funding sources through the FAFSA,
Alaska's students often follow one of two pathways:
o Borrow larger sums of money in education loans,
at a higher interest rate from private for-profit
lenders
o Do not pursue any kind of postsecondary
education and career training
Alaskans need postsecondary education credentials
o Alaska has one of the highest percentages of
citizens with some college but no degree
o By 2025, 65% of Alaska's workforce needs will
require some kind of postsecondary credential
1:29:10 PM
MS. EFRID advanced to slides 9-11, "2024-25 FAFSA: What's New?"
Slides 10 through 11 read as follows [original punctuation
provided]:
2024-25 FAFSA Improvements
• In December 2023, Federal Student Aid (FSA) launched
the new 2024-25, incorporating sweeping changes as
required by Federal Legislation. Improvements include:
Enhanced Convenience
Students & Contributors complete the FAFSA by
answering approximately 36 questions, compared to
over 100 in previous years.
Direct Data Exchange now allows automatic
transfer of tax information to the FAFSA
Provisional Independent Student Status
Students experiencing specific other/unusual
circumstances (specifically defined by FSA) can
acquire an initial Provisional Independent
Student status in order to complete their FAFSA
without a Contributor
FSA identifies nearly 300,000
homeless/unaccompanied youth can now complete the
FAFSA with this Provisional status
School Selection Options
Students now have opportunity to select up to
20 schools to receive their FAFSA information
2024-25 FAFSA Improvements cont.
• In December 2023, Federal Student Aid (FSA) launched
the new 2024-25, incorporating sweeping changes as
required by Federal Legislation. Improvements include:
o Reduced Time to Completion
FAFSA can now be completed in 20-30 minutes for
new FAFSA applications and in as little as 10
minutes for FAFSA renewals
o Student Aid Index (SAI) replaces Estimated Family
Contribution (EFC)
The SAI is not a dollar amount a student or
family is expected to pay/contribute to their
education. Instead it is used as an eligibility
index for institutions to use to determine and
create financial aid packages
o Increased access to Federal Pell Grant (need-based
grant)
Approximately 610,000 low income students will
receive the Federal Pell Grant
Approximately 1.5 million more students will
now receive the maximum Pell Grant
1:32:41 PM
MS. EFRID directed attention to slides 12-14, "Mythbusting
[sic]: FAFSA Edition," which read as follows [original
punctuation provided]:
Mythbusting [Sic]: FAFSA Edition
• "It takes too long it's too complicated"
o Average FAFSA Completion time for NEW
applicants is 30 minutes
o FAFSA applications for RENEWAL take an average
of 10 minutes to complete
• "The government already has my information, I
shouldn't have to send it again"
o The Direct Data Exchange (DDX) now does it for
you. DDX is utilized to ensure a seamless
transfer of information from the IRS to FSA.
• "My family makes too much money, there's no point in
filling it out"
o Many states and institutions require the FAFSA
for grants and scholarships that are not need-
based
o If a student does not submit the FAFSA they
lose the opportunity to qualify for those
additional funding sources
Mythbusting [Sic]: FAFSA Edition
• "I haven't filed my taxes yet, so I don't have the
information"
o The FAFSA utilizes "Prior PriorYear" in terms
of tax returns
• "I'm not taking out loans, so I don't need to do it"
o The FAFSA is not only for loans
o The FAFSA provides grants, work-study, state &
institutional aid (grants & scholarships)
o By not completing the FAFSA, students lose
access to all of these funding sources
• "It makes me take more money than I want or need"
o A student is not required to accept any part of
the Federal student aid package offered
o Option to select only grants and/or work-study;
none, some, or all loans
o If student loans are selected, no requirement
to accept the maximum offered
1:36:47 PM
MS. EFRID continued to slides 15-17, "Responding to FAFSA
Completion Needs," which read as follows [original punctuation
provided]:
ACPE FAFSA Completion Resources
Alaska FAFSA Completion Initiative's Purpose:
Connecting Alaskans students, families, schools,
counselors, etc. with resources and information
necessary to make informed decisions about
postsecondary education planning and financing.
Master the FAFSA Training: ACPE's train-the-trainer
style approach teaches partners how to guide students
& families through FAFSA Completion. Master the FAFSA
is offered every Monday and Thursday from 2-3:30 via
Zoom
Alaska FAFSA Completion One-Stop Website:ACPE's
comprehensive site offers Alaskan students, families,
educators, and stakeholders FAFSA completion resources
including guides, quick sheets, video tutorials, and
more.
One-on-one FAFSA Appointments: Schedule appointments
with ACPE's Success Center staff for assistance with
FAFSA Completion, postsecondary application &
scholarship research, and much more. Appointments are
made using the virtual Youcanbook.me Appointment
Scheduler
ACPE FAFSA Completion Resources (cont..)
Funding Your Future (FYF) Presentations:Preparatory
presentation includes: Defining financial aid, how it
works, how to apply; How to create a FAFSA Account
(required for FAFSA); Grants, scholarships, and loans;
WUE (Western Undergraduate Exchange) & Exchange
Programs
Presentations & Events: ACPE staff attend virtually
and in-person FAFSA/Financial Aid and/or college &
career fairs across Alaska. During these events staff
deliver presentations, provide materials, and schedule
follow-up appointments.
Online Resource Library: ACPE materials such as
FAFSA Quick-Sheet; APS, AEG, Education Loans ASAP
Account info cards, $mart $avings Guide are all
available for download and/or mailing on the Success
Center website.
1:38:56 PM
REPRESENTATIVE CARPENTER asked whether ACPE is statutorily
required to conduct training, create a website, and offer
appointments to "sell" FAFSA.
MS. EFRID clarified that FAFSA is not specified in statute;
however, the ACPE statutes require education and outreach to
Alaskans to enroll and achieve success in post-secondary
programs.
1:40:13 PM
REPRESENTATIVE CARPENTER posited that the ability to fill out a
FAFSA form should be a great predictor of success in an
educational institution.
1:41:35 PM
REPRESENTATIVE ALLARD said as a mother who has filled out a
FAFSA form, she would never do it again. She asked whether
everyone in Alaska is eligible for the FAFSA raffle.
MS. EFRID shared her belief that the raffle would be open to
anyone who completes the FAFSA for the first time.
REPRESENTATIVE ALLARD, in agreement with Representative
Carpenter, questioned the ability to succeed in post-secondary
education if a person cannot complete a 30-minute application.
She explained that she took exception to the questions asked on
the FAFSA application in relation to privacy. She asked what
happens if a parent does not provide the required information.
MS. EFRID said if the parents refuse to fill out their portion
of the application, it would not be completed and finalized.
REPRESENTATIVE ALLARD sought to confirm that in order to receive
the Alaska Performance Scholarship dollars, a FAFSA form must be
completed.
MS. EFRID answered yes, as part of the eligibility requirements.
REPRESENTATIVE ALLARD said, "so not all ... Alaskans will be
entitled to participate in this."
1:46:01 PM
MS. EFRID concluded the presentation by reviewing the completion
resources offered by ACPE.
CHAIR VANCE requested a list of the 36 questions on the FAFSA
application.
MS. EFRID agreed to follow up with the requested information.
1:48:41 PM
REPRESENTATIVE GRAY asked why Alaska is "number 51."
MS. EFRID said this is where the "myth busters" [on slide 13-14]
come into play. In addition, there are many first-generation
students to post-secondary education in Alaska.
REPRESENTATIVE GRAY asked whether data supports the idea that
Alaska is predisposed to be the worst in the country.
MS. EFRID explained that Louisiana and Tennessee are ranked one
and two because they have invested many resources in supporting
students and families. Both states also made the FAFSA a
graduation requirement with many exemptions, which significantly
increased enrollment.
1:51:24 PM
REPRESENTATIVE GRAY said he was surprised by that information.
He suggested looking at what those states are doing to increase
the FAFSA completion rate.
MS. EFRID stated that there was a participant in the FAFSA
summit from Louisiana who gave a presentation on how they are
increasing completion rates. She noted that the presentation
can be found on ACPE's website.
REPRESENTATIVE GRAY asked whether the legislature would need to
pass a bill to implement the policies that were enacted by
Louisiana and Tennessee.
MS. EFRID said that would be a policy call. She added that ACPE
is taking knowledge from other states to help Alaskans
understand the importance of FAFSA.
1:53:48 PM
REPRESENTATIVE CARPENTER asked Ms. Efrid to elaborate on an
earlier statement that by 2025, post-secondary credentials would
be required.
MS. EFRID said the Alaska Postsecondary Access & Completion
Network (AlaskaCAN) is an organization that provides Alaskans
with the necessary training to fill jobs in the state. She
described the two-fold training that is required to be hired by
the businesses and employers in Alaska (through AlaskaCAN). She
added that the Department of Labor & Workforce Development
(DLWD) is looking at what credentials will be needed in 2025 to
be hired by businesses and create a vibrant economy.
1:55:46 PM
REPRESENTATIVE CARPENTER asked whether ACPE receives federal
funds for the promotion of FAFSA.
MS. EFRID answered no, ACPE's funding is from the Alaska Student
Loan Corporation receipts and higher education investment funds
that are used for the Alaska Performance Scholarship and the
Alaska grant.
REPRESENTATIVE CARPENTER said he was the recipient of an ACPE
student loan. He asked whether loans are still offered through
the state.
MS. EFRID answered yes, the following state loan programs are
still available: the student education loan, and the family
education loan.
REPRESENTATIVE CARPENTER asked whether eligibility for an ACPE
loan is dependent on the completion of a FAFSA application.
MS. EFRID answered yes. She said the purpose of filling out the
FAFSA is maximizing and leveraging free federal dollars or other
scholarships.
1:58:25 PM
REPRESENTATIVE GROH said he was struck by the number of
committee members whose lives had benefited from education. He
shared a personal anecdote about his education and the loan
program he received. He emphasized that education creates
options for people and applauded ACPE's efforts to make it more
available. He said he was proud to co-sponsor this legislation.
REPRESENTATIVE ALLARD remarked, "You're mentioned all through
this bill ACPE is and so when I ask you questions in
reference to the bill, it was a surprise to me that you wouldn't
know that answer."
2:01:18 PM
The committee took a brief at-ease.
2:01:29 PM
MS. EFRID, in response to a follow up question from
Representative Allard, reiterated that everyone who completes
the FAFSA for the first time would be eligible. She added that
everyone can fill out a FAFSA application and participate in the
raffle; however, each person has a personal choice to do so.
REPRESENTATIVE ALLARD asked why she should have faith that ACPE
can take this on if Alaska is ranked fiftieth.
MS. EFRID said ACPE's role is to select the winner each month
from the recently submitted FAFSA applications because ACPE is
the designated higher education organization in Alaska.
Furthermore, ACPE is administered in this bill because it has
the necessary data. She said she is testifying in support of
increasing FAFSA completion, which is part of the commission's
strategic plan, and not necessarily here in support of the bill.
She reiterated that the commission has supported the goal of
increasing FAFSA completion and the bill would be one way to do
that.
CHAIR VANCE asked Representative Himschoot to speak to how the
the raffle would work and what the impact would be.
2:06:13 PM
REPRESENTATIVE HIMSCHOOT said the raffle is a monthly prize
during the open period of FAFSA and $5,000 and $10,000 prizes at
the end of the open period. She clarified that all names would
be entered back in for last prizes.
2:07:03 PM
REPRESENTATIVE GRAY asked how to best advertise the raffle.
REPRESENTATIVE HIMSCHOOT shared her understanding that ACPE
would include it in their outreach.
REPRESENTATIVE GRAY asked about the value of students imagining
what they could do with the money.
REPRESENTATIVE HIMSCHOOT noted that page 5, line 14 of the bill
addresses advertising. She said the point of the bill is to
incentivize and encourage students to think about their next
step.
2:09:33 PM
REPRESENTATIVE GRAY recalled that he hated filling out the FAFSA
application; however, he did it because he had to. He said
asking younger students to do something unpleasant "is easy to
not do" and asked the bill sponsor to speak to that.
REPRESENTATIVE HIMSCHOOT said she was thinking about it as a
return on investment (ROI), because an hour or two of invested
time could result in up to $7,000 [in student aid] annually.
CHAIR VANCE asked about page 4, line 23, which states that the
fund consists of money appropriated to the fund by the
legislature. She asked where the startup money would come from.
REPRESENTATIVE HIMSCHOOT stated that the annual prize amount
would be $62,000. She explained that by making ACPE the
administrators of the raffle, a new staff position wouldn't be
needed, so the annual prize funding is all that's required. She
added that the funding for the annual prize would come from the
general fund (GF).
2:12:45 PM
REPRESENTATIVE C. JOHNSON asked how many other states have a
cash incentive to fill out the form.
REPRESENTATIVE HIMSCHOOT said no other state have tried this.
She explained that the graduation requirement that was
implemented in several states has complications, because if kids
don't meet it, they aren't allowed to walk at graduation. She
said the idea is to incentivize with a carrot, not a stick.
2:13:45 PM
REPRESENTATIVE ALLARD inquired about the new fiscal note.
REPRESENTATIVE HIMSCHOOT reiterated that original fiscal note
had authorized the Department of Education and Early
Developments (DEED) [to administer the raffle]. The change to
ACPE came after realizing that the relevant data rests with the
commission and removes the necessity for a new staff position,
which is reflected in the new fiscal note.
REPRESENTATIVE ALLARD sought to confirm that unless both child
and parent fill out the FAFSA form, the child would be
ineligible for the raffle.
REPRESENTATIVE HIMSCHOOT stated that if they make the decision
to fill out the FAFSA application, they are entered in the
raffle.
2:15:19 PM
REPRESENTATIVE ALLARD questioned the "buy in" for FAFSA.
REPRESENTATIVE HIMSCHOOT said the buy in is the time it takes to
fill out the form.
REPRESENTATIVE ALLARD expressed concern that many foster
children do not have parents that would fill out this form. She
asked how many students are anticipated to complete the FAFSA
application.
REPRESENTATIVE HIMSCHOOT said historically, there are about
10,000 high school graduates in Alaska; however, not all
graduates would apply. She shared her belief that it would be a
miracle to reach 10,000.
REPRESENTATIVE ALLARD said she has a real problem with part of
the population being discriminated against, and that she does
not encourage gambling to get scholarship money by forcing
parents to fill out the FAFSA form with their private
information.
REPRESENTATIVE HIMSCHOOT said she was just looking to solve a
problem.
2:16:58 PM
REPRESENTATIVE CARPENTER directed attention to Section 4 on page
4 and asked why the drafters chose the language "shall be
appropriated" instead of "may be appropriated" if there isn't
any way to force the legislature to appropriate the interest
earned. He suggested that the language may run afoul of the
constitutional prohibition on dedicated funds.
REPRESENTATIVE HIMSCHOOT directed attention to subsection (f) on
page 5, line 15, which states "nothing in this section creates a
dedicated fund." She speculated that the language in question
is a way to ensure that any interest earned would return to the
same source.
REPRESENTATIVE CARPENTER advised that "may" would be more
appropriate than "shall."
CHAIR VANCE asked whether it is the bill sponsor's intent for
the legislature to have active engagement in the discussion on
funding this allocation every year.
REPRESENTATIVE HIMSCHOOT said she is not invested in the answer
to that. She shared her belief that subject to appropriation is
unavoidable.
REPRESENTATIVE CARPENTER pointed out that because this is an
account in the GF, it is also subject to the sweep. He
highlighted this as a giant hurdle in the ability to execute the
monetary piece of the bill on a consistent basis.
2:21:27 PM
REPRESENTATIVE C. JOHNSON asked whether the prizes would be
prorated based on the amount in the fund.
REPRESENTATIVE HIMSCHOOT referred to page 5, line 11, which
states that the commission shall reduce the prizes pro rata if
the amount appropriated to the fund is insufficient to pay the
amount of prizes.
2:22:05 PM
REPRESENTATIVE C. JOHNSON expressed concern about not following
through on a promised amount of prize money and likened it to
reneging on a signed contract.
CHAIR VANCE pondered how this would compare to the education
raffle with the permanent fund dividend (PFD).
REPRESENTATIVE ALLARD referred to page 4, lines 23-35, and
expressed concern that the state would be paying for a gambling
program. In addition, she reiterated her concern that kids
would be eliminated from the raffle if their parents don't fill
out the FAFSA form.
2:24:57 PM
REPRESENTATIVE GRAY asked whether an Alaska school district
could set a graduation requirement without passing a law.
MS. EFRID shared her understanding that Alaska graduation
requirements are in statute. She noted that Louisiana's
graduation requirements are in statute, whereas Tennessee's are
in regulation.
REPRESENTATIVE HIMSCHOOT pointed out that local graduation
requirements, such as swimming lessons, can be set. She said
the downside of making it a graduation requirement is that it
would prohibit people from walking at graduation, and questioned
why an individual who wants to work in the fishing industry
after graduation would want to complete the FAFSA.
REPRESENTATIVE GRAY stated that there should be teacher
involvement and dedicated class time for filling out the FAFSA.
In addition, he suggested that there could be an opt-out
provision. He shared his belief that there is significant
federal aid available for foster kids and said he would hate for
them to miss out on the opportunity to qualify. He added that
he had the same issue with the inclusion of "gambling" in the
title but wanted to find ways to achieve the goal without the
hurdles.
REPRESENTATIVE HIMSCHOOT reiterated that the goal is to increase
the completion rate.
2:29:28 PM
MS. EFRID reported that 12 states require FAFSA completion for
graduation. She added that there are many ways to wave that
requirement with a parent's involvement. She said ACPE is
putting resources towards providing services and training to
support students that lack support at home.
REPRESENTATIVE HIMSCHOOT commented on the Alaska EXCEL program
an organization that works with rural kids to help them learn
city skills in addition to career and technical skills, which
involves FAFSA completion.
2:31:49 PM
CHAIR VANCE opened public testimony on HB 163; after
ascertaining that no one wished to testify, she closed public
testimony.
2:32:26 PM
REPRESENTATIVE CARPENTER drew a comparison to the PFD education
raffle. He expressed concern about the state's liability if
there were an inability to fund the raffle and suggested that
adding the language "subject to appropriation" would fix that
"legal question mark;" nonetheless, there would still be an
expectation from the raffle participants.
REPRESENTATIVE HIMSCHOOT responded that the raffle would only be
a successful incentive if it's reliably funded.
2:35:39 PM
REPRESENTATIVE C. JOHNSON suggested making the FAFSA a
prerequisite to the SAT test.
CHAIR VANCE announced that Version U would be held over.
2:37:40 PM
ADJOURNMENT
There being no further business before the committee, the House
Judiciary Standing Committee meeting was adjourned at 2:37 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 163 - v.B.PDF |
HJUD 4/22/2024 1:00:00 PM |
HB 163 |
| HB 163 - Sponsor Statement v.S.pdf |
HJUD 4/22/2024 1:00:00 PM |
HB 163 |
| HB 163 - Sectional Analysis v.S.pdf |
HJUD 4/22/2024 1:00:00 PM |
HB 163 |
| HB 163 - Explanation of Changes v.B to v.S.pdf |
HJUD 4/22/2024 1:00:00 PM |
HB 163 |
| HB 163 - Fiscal Notes.pdf |
HJUD 4/22/2024 1:00:00 PM |
HB 163 |
| HB 163 - ACPE Presentation - FAFSA Impacts.pdf |
HJUD 4/22/2024 1:00:00 PM |
HB 163 |
| HB 163 - Supporting Document - FAFSA Tracker - National 4.19.24.pdf |
HJUD 4/22/2024 1:00:00 PM |
HB 163 |
| HB 163 - Supporting Document - ACPE FAFSA 3.15.23.pdf |
HJUD 4/22/2024 1:00:00 PM |
HB 163 |
| HB 163 - Proposed v.U (04-18-24).pdf |
HJUD 4/22/2024 1:00:00 PM |
HB 163 |