02/07/2011 08:00 AM Senate EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| SB43 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 43 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE EDUCATION STANDING COMMITTEE
February 7, 2011
8:02 a.m.
MEMBERS PRESENT
Senator Kevin Meyer, Co-Chair
Senator Joe Thomas, Co-Chair
Senator Bettye Davis, Vice Chair
Senator Hollis French
Senator Gary Stevens
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Senator Cathy Giessel
COMMITTEE CALENDAR
SENATE BILL NO. 43
"An Act renaming the Alaska performance scholarship and relating
to the scholarship and tax credits applicable to contributions
to the scholarship; establishing the Alaska performance
scholarship investment fund and the Alaska performance
scholarship award fund and relating to the funds; making
conforming amendments; and providing for an effective date."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 43
SHORT TITLE: ALASKA PERFORMANCE SCHOLARSHIPS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/19/11 (S) READ THE FIRST TIME - REFERRALS
01/19/11 (S) EDC, FIN
02/02/11 (S) EDC AT 8:00 AM BELTZ 105 (TSBldg)
02/02/11 (S) Heard & Held
02/02/11 (S) MINUTE(EDC)
02/04/11 (S) EDC AT 8:00 AM BELTZ 105 (TSBldg)
02/04/11 (S) Heard & Held
02/04/11 (S) MINUTE(EDC)
02/07/11 (S) EDC AT 8:00 AM BELTZ 105 (TSBldg)
WITNESS REGISTER
JIM JOHNSON, Senior Vice President
Doyon, Limited
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 43.
IAN DUTTON, President
Alaska Sea Life Center
Seward, Alaska
POSITION STATEMENT: Testified in support of SB 43.
MURRAY RICHMOND, Staff
Senator Joe Thomas
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information on Amendment A.1 for SB
43.
JOHANNA BALES, Deputy Director
Tax Division
Department of Revenue
Anchorage, Alaska
POSITION STATEMENT: Provided information on Amendment A.1 for SB
43.
EDDY JEANS, Education Policy Coordinator
Office of the Commissioner
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Answered questions on Amendment A.6 for SB
43.
MIKE HANLEY, Commissioner
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Gave the committee an update on his role as
commissioner.
ACTION NARRATIVE
8:02:03 AM
CO-CHAIR JOE THOMAS called the Senate Education Standing
Committee meeting to order at 8:02 a.m. Present at the call to
order were Senators French, Davis, Stevens, Co-Chair Meyer and
Co-Chair Thomas.
SB 43-ALASKA PERFORMANCE SCHOLARSHIPS
8:02:32 AM
CO-CHAIR THOMAS announced the consideration of SB 43.
CO-CHAIR THOMAS opened public testimony.
8:03:33 AM
JIM JOHNSON, Senior Vice President, Doyon, Limited, testified in
support of SB 43. He said that applying the increased corporate
income tax credits to the scholarship program is a good idea. In
anticipation of a possible amendment, he advocated for the
extension of the three-year sunset provision. He explained that
the three-year sunset in the current law is a problem for three
reasons. First, it doesn't provide enough time to educate
companies about the program and to plan accordingly. Second, it
does not support a company's multi-year giving program that may
run beyond the sunset. Finally, the sunset does not provide
enough time for the legislature to evaluate recent improvements
to the program.
SENATOR STEVENS noted that he has an amendment that would extend
this tax credit to the Alaska Sea Life Center.
8:07:06 AM
IAN DUTTON, President, Alaska Sea Life Center, testified in
support of SB 43. He said the Alaska Sea Life Center educates
over 10,000 school children each year and provides internships
to more than 350 undergraduate students. He said the center
would like to be recognized as an eligible institution for the
corporate income tax credit. He continued that the center is
also seeking accreditation as the designated Coastal Ecosystem
Learning Center for Alaska. This center would be 1 of 23 across
the country partnered with the federal government for formal
education in the aquarium and marine science sector. Accrediting
the center could be an opportunity for further ambitions of SB
43.
8:09:44 AM
CO-CHAIR THOMAS closed public testimony.
8:10:36 AM
CO-CHAIR MEYER moved to adopt Amendment A.1.
27-GS1893\A.1
AMENDMENT A.1
OFFERED IN THE SENATE BY SENATOR MEYER
TO: SB 43
Page 1, line 4, following "amendments;":
Insert "providing for an effective date by
amending the effective date in sec. 57, ch. 92, SLA
2010;"
Page 5, following line 8:
Insert a new bill section to read:
"* Sec. 9. AS 21.96.070(a) is amended to read:
(a) A taxpayer is allowed a credit against the
tax due under AS 21.09.210 or AS 21.66.110 for cash
contributions accepted
(1) for direct instruction, research, and
educational support purposes, including library and
museum acquisitions, and contributions to endowment,
by an Alaska university foundation or by a nonprofit,
public or private, Alaska two-year or four-year
college accredited by a regional accreditation
association;
(2) for secondary school level vocational
education courses, programs, and facilities by a
school district in the state;
(3) for vocational education courses,
programs, and facilities by a state-operated
vocational technical education and training school;
[AND]
(4) for a facility by a nonprofit, public
or private, Alaska two-year or four-year college
accredited by a regional accreditation association;
and
(5) for the Alaska performance scholarship
investment fund under AS 37.14.750(a)."
Renumber the following bill sections accordingly.
Page 6, line 28, through page 7, line 10:
Delete all material and insert:
"* Sec. 12. AS 43.55.019(a) is amended to read:
(a) A producer of oil or gas is allowed a credit
against the tax due under this chapter for cash
contributions accepted
(1) for direct instruction, research, and
educational support purposes, including library and
museum acquisitions, and contributions to endowment,
by an Alaska university foundation or by a nonprofit,
public or private, Alaska two-year or four-year
college accredited by a regional accreditation
association;
(2) for secondary school level vocational
education courses, programs, and facilities by a
school district in the state;
(3) for vocational education courses,
programs, and facilities by a state-operated
vocational technical education and training school;
[AND]
(4) for a facility by a nonprofit, public
or private, Alaska two-year or four-year college
accredited by a regional accreditation association;
and
(5) for the Alaska performance scholarship
investment fund under AS 37.14.750(a).
* Sec. 13. AS 43.56.018(a) is amended to read:
(a) The owner of property taxable under this
chapter is allowed a credit against the tax due under
this chapter for cash contributions accepted
(1) for direct instruction, research, and
educational support purposes, including library and
museum acquisitions, and contributions to endowment,
by an Alaska university foundation or by a nonprofit,
public or private, Alaska two-year or four-year
college accredited by a regional accreditation
association;
(2) for secondary school level vocational
education courses, programs, and facilities by a
school district in the state;
(3) for vocational education courses,
programs, and facilities by a state-operated
vocational technical education and training school;
[AND]
(4) for a facility by a nonprofit, public
or private, Alaska two-year or four-year college
accredited by a regional accreditation association;
and
(5) for the Alaska performance scholarship
investment fund under AS 37.14.750(a).
* Sec. 14. AS 43.65.018(a) is amended to read:
(a) A person engaged in the business of mining
in the state is allowed a credit against the tax due
under this chapter for cash contributions accepted
(1) for direct instruction, research, and
educational support purposes, including library and
museum acquisitions, and contributions to endowment,
by an Alaska university foundation or by a nonprofit,
public or private, Alaska two-year or four-year
college accredited by a regional accreditation
association;
(2) for secondary school level vocational
education courses, programs, and facilities by a
school district in the state;
(3) for vocational education courses,
programs, and facilities by a state-operated
vocational technical education and training school;
[AND]
(4) for a facility by a nonprofit, public
or private, Alaska two-year or four-year college
accredited by a regional accreditation association;
and
(5) for the Alaska performance scholarship
investment fund under AS 37.14.750(a).
* Sec. 15. AS 43.75.018(a) is amended to read:
(a) A person engaged in a fisheries business is
allowed a credit against the tax due under this
chapter for cash contributions accepted
(1) for direct instruction, research, and
educational support purposes, including library and
museum acquisitions, and contributions to endowment,
by an Alaska university foundation or by a nonprofit,
public or private, Alaska two-year or four-year
college accredited by a regional accreditation
association;
(2) for secondary school level vocational
education courses, programs, and facilities by a
school district in the state;
(3) for vocational education courses,
programs, and facilities by a state-operated
vocational technical education and training school;
[AND]
(4) for a facility by a nonprofit, public
or private, Alaska two-year or four-year college
accredited by a regional accreditation association;
and
(5) for the Alaska performance scholarship
investment fund under AS 37.14.750(a).
* Sec. 16. AS 43.77.045(a) is amended to read:
(a) In addition to the credit allowed under
AS 43.77.040, a person engaged in a floating fisheries
business is allowed a credit against the tax due under
this chapter for cash contributions accepted
(1) for direct instruction, research, and
educational support purposes, including library and
museum acquisitions, and contributions to endowment,
by an Alaska university foundation or by a nonprofit,
public or private, Alaska two-year or four-year
college accredited by a regional accreditation
association;
(2) for secondary school level vocational
education courses, programs, and facilities by a
school district in the state;
(3) for vocational education courses,
programs, and facilities by a state-operated
vocational technical education and training school;
[AND]
(4) for a facility by a nonprofit, public
or private, Alaska two-year or four-year college
accredited by a regional accreditation association;
and
(5) for the Alaska performance scholarship
investment fund under AS 37.14.750(a)."
Renumber the following bill sections accordingly.
Page 7, following line 11:
Insert a new bill section to read:
"* Sec. 18. AS 21.96.070(a)(5); AS 43.20.014(a)(5);
AS 43.55.019(a)(5); AS 43.56.018(a)(5);
AS 43.65.018(a)(5); AS 43.75.018(a)(5); and
AS 43.77.045(a)(5) are repealed January 1, 2021."
Renumber the following bill sections accordingly.
Page 8, following line 13:
Insert a new bill section to read:
"* Sec. 22. Section 57, ch. 92, SLA 2010, is
amended to read:
Sec. 57. Except as provided in sec. 56 of this
Act, this Act takes effect January 1, 2021 [2014]."
Renumber the following bill sections accordingly.
Page 8, line 14:
Delete "Section 15"
Insert "Section 21"
Page 8, line 15:
Delete all material.
Renumber the following bill section accordingly.
Page 8, line 16:
Delete "secs. 16 and 17"
Insert "sec. 23"
CO-CHAIR THOMAS objected for the purposes of discussion.
CO-CHAIR MEYER said that this amendment comes as a request from
the administration and the committee. He explained that the
original version of SB 43 only extended the education tax credit
to corporations. Amendment A.1 would extend the tax credit to
include producers of oil and gas, certain property owners,
mining operations, fisheries, and floating fisheries business.
The amendment would also extend the sunset to January 1, 2021.
8:12:07 AM
At ease from 8:12 a.m. to 8:13 a.m.
8:13:53 AM
CO-CHAIR THOMAS recapped that the committee was working with
Amendment A.1.
SENATOR FRENCH said he would like to get an overview of how the
amendment works.
CO-CHAIR MEYER replied that the bill [SB 236, which passed into
law during the 26th legislature] included a three-year sunset to
the credit because it was unclear what the tax credits would
entail. However, three years was not a long enough time frame
for businesses and corporations. The other aspect of the
amendment was at the request of the administration.
CO-CHAIR THOMAS said a brief overview on how the tax credits
already in existence were expanded in the amendment would be
helpful.
8:16:01 AM
MURRAY RICHMOND, staff to Senator Joe Thomas, said SB 236 gave
tax credits to corporations who donated to an institute of
higher learning. He explained that the bill had an indeterminate
fiscal note a three-year sunset was included. Inserting the tax
credits into SB 43 would allow corporations to make
contributions to the scholarship fund.
SENATOR FRENCH asked what a donation would do to a corporation's
tax obligation.
8:17:42 AM
JOHANNA BALES, Deputy Director, Tax Division, Department of
Revenue, replied that the education tax credit has been around
for some time. She explained that prior to SB 236 the maximum
amount of tax credit a company could take was $150,000 per year
against one of eight different tax types. After SB 236 passed it
increased the maximum amount of credit to $5 million. This
amendment would extend the sunset date of the program and expand
contributions to the Alaska Performance Scholarship Award Fund
to include seven other tax types.
CO-CHAIR THOMAS removed his objection. Finding no further
objection, he announced that Amendment A.1 is adopted.
8:21:18 AM
CO-CHAIR MEYER moved to adopt Amendment A.2.
27-GS1893\A.2
AMENDMENT A.2
OFFERED IN THE SENATE BY SENATOR THOMAS
TO: SB 43
Page 3, line 23:
Delete "is"
Insert "[IS]"
Page 3, line 24, following "(A)":
Insert "is"
Page 3, line 25:
Delete "and"
Insert "[AND]"
Page 3, line 26:
Following "(B)":
Insert "is"
Following "association":
Insert "and"
Page 3, following line 26:
Insert new material to read:
"(C) has an advisory program established for incoming
students that provides counseling related to course
selection, career choice, and personal challenges;"
CO-CHAIR THOMAS objected for the purposes of discussion.
CO-CHAIR MEYER explained that this amendment was recommended by
the Scholarship Funding Task Force. He said that the intent of
the amendment is to implement an advisory counseling program for
incoming freshman at participating institutions. This program
would assist students in course selection and help them obtain
their degree in a timely manner.
CO-CHAIR THOMAS agreed that this issue has been a subject of
comment.
SENATOR FRENCH said the amendment appears to add another
qualifier for participating institutions.
CO-CHAIR THOMAS concurred.
CO-CHAIR THOMAS removed his objection. There being no other
objections, Amendment A.2 was adopted.
8:23:18 AM
CO-CHAIR MEYER moved to adopt Amendment A.3.
27-GS1893\A.3
AMENDMENT A.3
OFFERED IN THE SENATE BY SENATOR THOMAS
TO: SB 43
Page 3, line 23:
Delete "is"
Insert "[IS]"
Page 3, line 24, following "(A)":
Insert "is"
Page 3, line 25:
Delete "and"
Insert "[AND]"
Page 3, line 26:
Following "(B)":
Insert "is"
Following "association":
Insert "and"
Page 3, following line 26:
Insert new material to read:
"(C) provides courses and credits that will
result in the issuance of a degree or certificate
available at the institution within a time frame
expected for that degree or certificate;"
CO-CHAIR THOMAS objected for the purposes of discussion.
8:23:44 AM
At ease 8:23 a.m. to 8:24 a.m.
8:24:35 AM
CO-CHAIR MEYER said Amendment A.3 is similar to the previous
amendment [A.2] and was also recommended by the Scholarship
Funding Task Force. He said that the intent of the amendment is
to require participating institutions to provide courses and
credits in a timely manner so that a degree or certificate may
be obtained in the expected amount of time.
SENATOR FRENCH said he is concerned about certain degrees which
have a "choke point" and wondered whether any scholarship money
might be jeopardized because of this. He said he does not have
any objection to the amendment and believes students should be
able to receive a degree in four years.
CO-CHAIR THOMAS explained that the amendment is an attempt to
address that concern and push institutions to straighten out
these discrepancies. He said that, hopefully, requiring
institutions to have counseling available and administer
programs in the proper sequence will resolve this issue.
CO-CHAIR MEYER added that a representative from the university
was on the task force and said the university would do its best
to accommodate these students.
CO-CHAIR THOMAS removed his objection. Finding no further
objections, he announced that Amendment A.3 is adopted.
8:27:52 AM
CO-CHAIR MEYER moved to adopt Amendment A.6.
AMENDMENT A.6
27-GS1893\A.6
OFFERED IN THE SENATE BY SENATOR THOMAS
TO: SB 43
Page 4, line 19:
Delete "and"
Page 4, line 22, following "time":
Insert "; and
(4) an assessment of the statewide
centralized correspondence study program as it relates
to the scholarships, including Internet access
capabilities, plans to upgrade the quality and
quantity of distance delivery of education, and the
availability by district of correspondence courses
required for the performance scholarship"
CO-CHAIR THOMAS objected for the purpose of discussion.
CO-CHAIR MEYER explained that the amendment follows the
recommendation of the Scholarship Funding Task Force. The
amendment requires the Department of Education and Early
Development (DEED), the University of Alaska (UA) system, and
the Department of Labor and Workforce Development to share data
in order to create an assessment on the capabilities of the
state to deliver distance education.
SENATOR FRENCH said he is happy to see this assessment included.
He mentioned that one concern he has heard is on the broadband
capabilities in rural Alaska. This assessment would help them
find out whether distance delivery will be feasible in many of
these school districts.
8:30:19 AM
EDDY JEANS, Education Policy Coordinator, Office of the
Commissioner, Department of Education and Early Development
(DEED), introduced himself and welcomed the committee's
questions.
CO-CHAIR MEYER said there are two concerns that frequently
arise. The first concern is the funding for the program. The
second is whether all students will have an equal opportunity to
the scholarship, especially in rural communities. Amendment A.6
addresses this second concern. He asked Mr. Jeans how the
administration will ensure that remote communities receive these
same opportunities.
MR. JEANS replied that DEED is working on a report for the
legislature regarding this issue. He explained that there are a
number of different distance delivery options available and the
department is working to identify more avenues to assist school
districts. He said that in regards to the broadband capabilities
in rural areas, he will work with the E-rate individual at the
state library to identify the bandwidth available in more remote
places.
SENATOR STEVENS said one concern he has is whether school
districts will have individuals on site that can help students
with distant education classes. He asked if this is the
department's general policy.
MR. JEANS replied yes, that is the department's intent.
SENATOR FRENCH said, in his opinion, there are three options for
distance delivery: correspondence classes, basic internet, or
video conferencing. He asked if Mr. Jeans could give him a
breakdown of which options school districts are using.
MR. JEANS replied he would be happy to get that information to
him.
SENATOR DAVIS said the Alaska School Board Association has
offered to help with distance delivery as well and has a good
program in place that would be beneficial to the department.
CO-CHAIR THOMAS removed his objection. Seeing no further
objections, he announced that Amendment A.6 is adopted.
8:36:35 AM
At ease 8:36 a.m. to 8:37 a.m.
8:37:45 AM
SENATOR STEVENS moved to adopt Amendment A.8, [labeled 27-
GS1893\A.8].
CO-CHAIR THOMAS objected for the purpose of discussion.
SENATOR STEVENS recapped Ian Dutton's earlier testimony
regarding the Alaska Sea Life Center. He explained that as the
scholarship program is currently written the center cannot be a
recipient institution of research funds. Currently, in order for
the center to receive funds it has to go through the university.
This amendment will enhance their ability to go after research
dollars and keep the institution financially sound.
CO-CHAIR THOMAS asked if this institution would be the only
qualifying facility.
SENATOR STEVENS answered yes.
CO-CHAIR THOMAS removed his objection. Finding no further
objection, he announced that Amendment A.8 passes.
CO-CHAIR THOMAS said that he intends to take up the amendments
related to the funding of the scholarship on Wednesday.
8:41:46 AM
At ease 8:41 a.m. to 8:44 a.m.
8:44:02 AM
CO-CHAIR THOMAS said Amendment A.8 has some conflicts with some
of the other amendments. He asked Senator Stevens for a motion
to rescind Amendment A.8.
8:44:30 AM
SENATOR STEVENS moved to rescind Amendment A.8. There being no
objection Amendment A.8 was withdrawn.
8:44:47 AM
SENATOR STEVENS moved to adopt a conceptual amendment, based on
the withdrawn Amendment, A.8.
CO-CHAIR MEYER explained that there was some concern with
Amendment A.8 because it could conflict with Amendment A.1. He
explained that, ultimately, all of these amendments will come
together in a committee substitute of the bill.
CO-CHAIR THOMAS asked if there were any other comments on the
conceptual amendment. [No objection was stated and the
conceptual amendment was treated as adopted.]
CO-CHAIR THOMAS noted that any further amendments committee
members wanted to include should be made available by noon on
Tuesday.
[SB 43 was held in committee.]
8:47:36 AM
MIKE HANLEY, Commissioner, Department of Education and Early
Development (DEED), said he appreciates the support of the
department and he looks forward to becoming more involved.
8:48:11 AM
There being no further business to come before the committee,
Co-Chair Thomas adjourned the meeting at 8:48 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| APS Summary.pdf |
SEDC 2/7/2011 8:00:00 AM |
|
| Sectional.pdf |
SEDC 2/7/2011 8:00:00 AM |