Legislature(2017 - 2018)BUTROVICH 205
03/22/2017 08:00 AM Senate EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| SB87 | |
| SB96 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 87 | TELECONFERENCED | |
| *+ | SB 96 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE EDUCATION STANDING COMMITTEE
March 22, 2017
8:00 a.m.
MEMBERS PRESENT
Senator Shelley Hughes, Chair
Senator Cathy Giessel
Senator John Coghill
Senator Tom Begich
MEMBERS ABSENT
Senator Gary Stevens
COMMITTEE CALENDAR
SENATE BILL NO. 87
"An Act relating to energy efficiency standards and standardized
options for building and equipment components for school
construction and major maintenance; relating to school
construction and major maintenance grants and bond debt
reimbursement; establishing a working group to make
recommendations relating to energy efficiency and standardized
components in schools; and providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 96
"An Act relating to education; relating to school districts;
relating to course credit for students; relating to group
insurance, self-insurance, and other cooperative arrangements
between school districts and businesses, nonprofit
organizations, and government agencies; relating to funding for
school districts; relating to school operating funds; relating
to competency examinations for teacher certificates; relating to
the Professional Teaching Practices Commission; relating to the
duties and powers of the Department of Education and Early
Development and the commissioner of education and early
development; relating to a virtual education consortium;
relating to the minimum wage for bus drivers; relating to the
investment, appropriation, and administration of the public
school trust fund; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 87
SHORT TITLE: SCHOOL CONSTRUCTION ENERGY EFFICIENCY STD
SPONSOR(s): SENATOR(s) MACKINNON
03/10/17 (S) READ THE FIRST TIME - REFERRALS
03/10/17 (S) EDC, FIN
03/22/17 (S) EDC AT 8:00 AM BUTROVICH 205
BILL: SB 96
SHORT TITLE: EDUCATION: SCHOOLS/TEACHERS/FUNDING
SPONSOR(s): EDUCATION
03/20/17 (S) READ THE FIRST TIME - REFERRALS
03/20/17 (S) EDC, FIN
03/22/17 (S) EDC AT 8:00 AM BUTROVICH 205
WITNESS REGISTER
SENATOR ANNA MACKINNON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 87.
BRITTANY HUTCHISON, Staff
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis of SB 87.
JOSHUA BANKS, Staff
Senator Shelley Hughes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 96 on behalf of the Senate
Education Standing Committee, sponsor of the bill.
ACTION NARRATIVE
8:00:15 AM
CHAIR SHELLEY HUGHES called the Senate Education Standing
Committee meeting to order at 8:00 a.m. Present at the call to
order were Senators Begich, Giessel, Coghill, and Chair Hughes.
SB 87-SCHOOL CONSTRUCTION ENERGY EFFICIENCY STD
8:00:41 AM
CHAIR HUGHES announced that the first order of business would be
SB 87. She said it is the first hearing of the bill.
8:01:21 AM
SENATOR ANNA MACKINNON, Alaska State Legislature, sponsor of SB
87. She related her experience on finance committees and her
current role as the capital budget chair, during which time the
finance committees advanced hundreds of millions of dollars for
construction across the state. SB 87 provides a framework to
advance some of the design work done for public buildings,
specifically education facilities, to create energy efficiency
standards greater than the state is currently applying to
buildings.
She stated that the goal of SB 87 is to make schools more
affordable and maintainable, and to extend the life of public
school facilities. It provides for long-term operating cost
savings. The School Capital Construction Debt Reimbursement Plan
has been suspended and the bill is an opportunity for when that
plan goes back into effect and investment dollars are utilized
to create long-term savings through energy cost savings.
SENATOR MACKINNON spoke of small communities in the state where
there are multiple facilities that could be co-located. A task
force included in SB 87 could establish, together with the
Department of Education and Early Development (DEED), which
entities could be melded together. She provided an example of
co-location of a library and a fire hall in the same building.
Another possibility might be to co-locate health aides in a
school facility.
She said she is starting a conversation about maintaining and
controlling costs and extending the life of public school
facilities, as well as prioritizing classroom infrastructure and
functional design versus just looking good. She noted that her
team has been reaching out to the Association of Alaska School
Boards, to principals and superintendents, to classroom
teachers, to DEED, and to contractors, engineers, and design
firms. Everyone does not agree with everything in the bill.
She heard some districts say that the front of a school building
consumes about 10 percent of design costs, which could be
invested in the classroom instead. She did not want to take away
local control, but would like to see the buildings be energy
efficient, have temperature control standards, and look at co-
location.
8:05:35 AM
BRITTANY HUTCHISON, Staff, Alaska State Legislature, Juneau,
presented the sectional analysis of SB 87. She began with
Section 10:
Section 10 (pg. 8 Line 26 - pg. 11 line 2):
Establishes the Public School Energy Efficiency and
Standardized Components Working Group. Established in
the Department of Education and Early Development for
the purpose of recommending energy efficiency
standards and standardized options for energy
efficient building and equipment components for public
school facilities construction and major maintenance
projects who receive a grant or reimbursement in an
amount equal to 50% or more of the project costs.
a. The working group consists of nine members
appointed by the Commissioner.
b. The working group shall select a chair and vice-
chair. Majority establishes quorum. Decision are made
on majority vote.
c. Develop recommendations appropriate to each climate
zone in the state:
1. Establish energy efficiency standards consistent
with relevant building, plumbing, and electrical
copes.
2. Standardized options for energy efficient building
and equipment components from which school districts
may choose from.
3. Best practices for improving energy efficiency for
existing and newly constructed school facilities in
order to maximize the energy efficiency of buildings
and equipment components.
4. The maximum cost standard for each square foot of
construction of an energy efficient school facility
that uses components identified in (2) of this
subsection. The maximum cost must be appropriate for
designs that prioritize classroom infrastructure and
functional design. The costs must be adjusted for
different regions within each climate zone.
d. The standardized component options must:
1. Result in designs for buildings with a 30 year life
for new construction and 20 years for renovations or
energy efficiency upgrades
2. Achieve economic savings, as measured by a life
cycle cost analysis through the use of standardized
options and fuel cost reductions from energy
efficiency upgrades.
3. Focus the state's investment in education
facilities by prioritizing functional design and
classroom infrastructure.
e. The working group shall complete a report
summarizing their recommendations, and submit the
report electronically.
f. The working group may meet by telephone or
videoconference. They will not receive reimbursement,
compensation or per diem.
g. The working group terminates on the date 18 months
after the effective date of this section.
8:07:07 AM
MS. HUTCHISON continued with Section 9:
Section 9 (pg. 7 line 1 - pg. 8 line 25): Creates a
new section in state law: AS 14.11.104. School
Facility Design and Maintenance Standards. It requires
DEED to:
1. Establish, by regulation, energy efficiency
standards that include standardized options for
building and equipment components, appropriate to each
climate zone in the state for the construction and
major maintenance of school facilities. The
regulations must include:
a. Energy efficiency standards that are consistent and
relevant to building, plumbing and electrical codes
that will reduce long-term operating costs.
b. Provide standardized options for energy efficient
building and equipment components from which a school
district may choose when designing a school facility
or renovating an existing facility.
c. Establish best practices for improving energy
efficiency for existing and newly constructed school
facilities.
d. Establish the maximum acceptable costs for each
square foot for construction or major maintenance of
an energy efficient school facility. The department
shall:
i. Base the maximum costs on designs that prioritize
classroom infrastructure and functional design.
ii. The maximum acceptable cost must be adjustable for
different regions within each climate zone.
2. Create a maintenance manual for schools and
maintenance crews that provides information about
maintaining and repairing standardized options
identified in the energy efficiency standards.
3. Consider establishing a statewide maintenance team
to help schools in maintaining and repairing their
standardized components. The department may enter into
a contract with a regional or local organization, AEA,
DOT, or another state agency to create this statewide
maintenance team.
4. Requirements for a school district and a
maintenance team, if established, to submit reports to
the Department of Education and Early Development:
a. The date that maintenance was performed and what
maintenance was performed
b. The condition of school facilities
c. Monitoring data: occupancy, electricity usage, fuel
usage, temperature, etc.
5. Acquire ownership of the design for any school
facility for which a grant or bond reimbursement is
approved in an amount of 50% or more of the cost of
construction.
6. DEED must assess, in consultation with the
Department of Administration and the Department of
Transportation, all state lease payments, state owned
facilities and the use of school facilities in rural
areas to determine whether other state or local
services can be located in the same facility in order
to reduce state funding needs. Any state or local
service that may be co-located with a public school
must have all their employees meet background check
requirements equivalent to the requirements for
teachers.
a. Rural is defined
b. State or local service is defined with the words or
"similar entity"
8:08:26 AM
MS. HUTCHISON noted that 24 percent of schools in Alaska are
under 50 percent full and 29 percent are under 75 percent full.
This means that there is a possibility of co-location in 53
percent of Alaska schools.
She explained that Sections 1-7 relate to grant applications for
school construction and Section 8 relates to bond reimbursement
for school construction.
She continued:
Section 1 (pg. 2 Lines 3-11): Amends AS 14.11.011(b)
by increasing the information needed in a school
district's grant application. The district shall
submit:
1. Information demonstrating that the project
incorporates standardized options for building and
equipment components and is in compliance with the
recommendations made under Section 9 of the bill.
2. Documentation of the building commissioning process
the district uses for both new construction and major
maintenance projects.
Section 2 (pg. 3 Lines 11-12 and 22-25): Amends AS
14.11.013 by
a. Adding to the duties of the Capital Improvement
Project grant schedule, the requirement for DEED to
verify that the project follows the recommendations
made in Section 9 and
b. Requiring that a capital improvement project grant
request must achieve savings measured by a life-cycle
cost analysis through the use of: standardized
options, energy efficiency upgrades, and fuel cost
reductions
8:09:08 AM
Section 3 (pg. 4 Line 10): Amends AS 14.11.013(d)
which allows DEED to reduce a project budget by the
cost of those portions of a project design that they
determine does not meet the criteria set out by the
Section 9 of the bill.
Section 4 (pg. 4 lines 13-17):
a. When a school district is applying for a grant,
DEED shall consult with Alaska Energy Authority to
make sure that the projects are in compliance with the
criteria from Section 9.
b. Defines "life-cycle cost" as the meaning given in
AS 46.11.900
- "life-cycle cost" means the total cost of owning,
operating, and maintaining a building over its useful
life, including its energy and fuel costs, determined
on a basis of a systematic evaluation and comparison
of alternative building systems, except that in the
case of leased buildings the life-cycle cost shall be
calculated over the effective remaining term of the
lease;
Section 5 (pg. 4 Line 29 and pg. 5 Lines 4-5): Amends
AS 14.11.014(b) Requiring the Bond Reimbursement and
Grant Review Committee to, along with their other
duties:
1. Analyze designs acquired by the Department, and
2. Set standards based on the standards adopted under
Section 9.
Section 6 (pg. 5 Lines 13-14, 16-17, 30- line 6 on pg.
6): Amends AS 14.11.017(a)
1. Requires that a school district must include
criteria developed in Section 9 when they are seeking
a grant for school construction.
2. Requires that the school district not exceed the
maximum cost standards established by Section 9.
3. Disallows any school districts, contractors,
architects, or designers involved with the design and
building of a school facility from applying for an
architectural or design award, if the grant is an
amount equal to or greater than 50% of the project.
This does not exclude energy efficiency grants or
innovative design grants.
8:10:16 AM
Section 7 (pg. 6 Lines 7-11): Amends AS 14.11.017 to
state that if a cost of a project exceeds the maximum
cost standards established by Section 9, then the
municipality or REAA must pay for the excess cost of
the building outside of state funds.
Section 8 (pg. 6 Lines 12-31): Amends AS 14.11.100 by
adding three sections to. The commissioner of
Education may not approve an application for bond
reimbursement, unless the municipality, as a condition
of reimbursement:
1. Agrees to construction of an appropriate size
school facility that meets criteria developed by the
Department and section 9 of this bill. In assessing
this criteria, the Commissioner of DEED shall consult
with AEA.
2. Provides reasonable assurance that the project
costs will not exceed the maximum cost standard
established by the Department under Section 9. If a
school district does exceed the maximum cost standard,
the municipality or REAA will pay for the excess with
funds from outside of state government.
3. If a project receives bond reimbursement of 50% or
more of the cost of the project, the municipality,
architects, engineers and designers are prohibited
from submitting for an architectural design award.
8:11:16 AM
Section 11 (pg. 11 lines 3 - 9): Applicability
Section 12 (pg. 11 Lines 10 - 19):
a. DEED shall adopt regulations necessary to implement
the changes made by this act.
b. The regulations required under section 9 must
implement the recommendations of the public school
energy efficiency and standardized components working
group established in section 10.
c. The regulations take effect after 18 months of
enactment of this legislation
Section 13 (pg. 11 Lines 20-21): Sections 1-9 and 11
take effect 24 months after the effective date of
section 10
Section 14 (pg. 11 Line 22): Section 10 takes effect
immediately.
Section 15 (pg. 11 Lines 23-24): Section 12 takes
effect 18 months after the effective date of section
10 of this act.
8:12:09 AM
SENATOR COGHILL inquired if the legislature could review the
regulations. He noted there is a push for Leadership in Energy
and Environmental Design (LEED) standards.
MS. HUTCHISON said that has been discussed, but is not currently
in the bill and would be a good idea.
8:13:48 AM
SENATOR BEGICH referred to Section 8, lines 19 and 20, and
Section 4, lines 15 and 16, where the bill mentions
consultations with the Alaska Energy Authority (AEA). He pointed
out that most of the state's sustainable energy and energy
efficiency work is being done by the Department of
Transportation and Public Facilities (DOTPF). He asked if the
sponsor would consider changing consulting work to DOTPF.
MS. HUTCHISON said AEA brought up that consideration and she
said she would discuss it with DOTPF.
8:15:11 AM
SENATOR MACKINNON stated that whoever can do the task most
efficiently is where it will reside. She noted a new fiscal note
from DEED and said AEA is a qualified entity, as are Alaska
Housing Finance Corporation and Alaska Cold Climate. Also, DEED
has many handbooks that talk about energy efficiency.
She opined that, given the climate situation and energy costs
throughout Alaska, the legislature must take a look at energy
efficiency. She was accepting of Senator Coghill's friendly
amendment to review the task force conclusions. She said a
previous challenge with this legislation was trying to get DEED
to standardize design specifications instead of having unique
designs.
She concluded that SB 87 is a work in process, however, the goal
is to have efficient buildings in urban and rural Alaska. When
state dollars are invested in a project, it is important that
students are warm, schools have lights and backup energy sources
and are used year round. It is important to take the time to do
it right.
8:17:58 AM
SENATOR BEGICH said he really likes the concept of the bill. He
recalled when he worked with the Division of Juvenile Justice
they worked on template designs because they were more
efficient. He noted that SB 87 provides for up to seven
different template designs. He credited the sponsor for taking
all the right steps.
SENATOR BEGICH suggested on page 7, lines 21 and 22, to tighten
the language or come up with a clear definition as it applies to
"different regions in each climate zone." He pointed out that a
region within a climate zone is not clearly defined. He noted
that in the Yukon Koyukuk area there are radically different
climates within the same region. He suggested groupings of
communities when building a new school.
8:19:42 AM
SENATOR MACKINNON reiterated that the bill is in process and she
is happy to accept suggestions.
SENATOR BEGICH brought up the idea of considering design
templates for buildings other than schools, such as for co-
locating structures in the communities. He asked if the bill's
standards would apply to co-located structures.
SENATOR MACKINNON said yes. She noted that she and Senator
Hughes have talked about wanting SB 87 and SB 96 to fit together
and to have structures throughout Alaska be treated equally.
8:20:53 AM
CHAIR HUGHES thanked Senator MacKinnon for bringing SB 87
forward, saying it is overdue. She asked if the bill's process
would apply to a basic remodel and an addition to a school
facility.
SENATOR MACKINNON said it would. The idea is that the state will
probably reconstruct more buildings than build new ones in the
near future. Many new schools are waiting to be built,
particularly in rural Alaska. All of those school boards are
concerned with energy efficiencies and may or may not have the
resources available to understand construction materials and
insulation choices. The state should be leading the way in
providing that information. If there is a 50 percent investment
of dollars by the state it would trigger the provisions in the
bill.
8:22:27 AM
CHAIR HUGHES noted that the Denali Commission has provided
funding for clinic facilities in the past. She asked if there
are federal requirements that have to be met in order for
clinics to co-locate with a school facility.
SENATOR MACKINNON said she would expect DEED to work within the
task force with anything related to co-location. If the state is
spending money on clinics, it should be looking at maximizing
those dollars for the people in the region, the building that is
being affected, and the state, for long-term investment.
She related that DOTPF is looking at several villages where they
are building 3 airports and 3 schools within a 15-mile corridor.
From DOTPF's perspective, it would cost less to maintain the 3
separate airports than the 15 miles of road. However, each of
the three villages has to build three different buildings. She
noted that the balance belongs to the people and the state;
local control and the state. The choice of local control is
important. She suggested to look beyond educational investment
to see other related needs in a community and seek co-location.
She stressed that is should be a regional conversation.
8:26:25 AM
SENATOR BEGICH suggested another concept to consider in the
bill; the use of Rural Educational Attendance Area (REAA) and
Small Schools Funds for major maintenance in schools.
8:27:28 AM
SENATOR MACKINNON agreed to look at everything. She did not want
to use one-time money for re-occurring expenses. She said she
would have to research that funding source.
She said the bill has an admirable goal, but some people do not
want to see change because change is hard, and it costs money
sometimes. She stated that it is the people's money and we need
to do what is best for the people and the students of Alaska.
She added that she is not saying there won't be new
construction, but rather that it is more likely that there will
be re-construction or major maintenance, which would have to
comply with the new standards in the bill.
8:28:58 AM
CHAIR HUGHES asked, when a school is going to be built, if there
is an analysis of community size and potential for growth.
SENATOR MACKINNON said she thought there was. Sometimes people
don't believe growth projections. She provided an example in
Eagle River where she doubted the projections which turned out
to be accurate. She concluded that you try to do what you think
is best with the money you have. She noted that populations are
relocating, such as to Mat-Su.
CHAIR HUGHES provided an example of long-lasting old buildings
in Germany. She whether durability and extending the life of
buildings are considerations.
8:32:21 AM
SENATOR MACKINNON said yes. She chose, as a measurement of
durability, the life of a typical mortgage - 30 years. This is
another reason for the state to own building designs - so that
problems can be worked on for improved durability.
8:33:20 AM
MS. HUTCHISON referred to Section 10 where it states that new
buildings must have a 30-year lifespan and renovations a 20-year
lifespan. She said they are open to changing those numbers.
SENATOR COGHILL asked who owns the designs and what expertise is
needed for applying the designs. He asked if it would mean a
change in venue.
SENATOR MACKINNON said currently DEED believes everything needs
to be unique and the state does not own the designs. She does
not believe that everything needs to be unique; public buildings
have a responsibility to be functional and efficient, before
beautiful.
She shared an experience about a design center in Eagle River
that saved $1 million by using the same design and construction
team. She pointed out that delivery costs of materials in rural
Alaska are very high. She was open to those other than DEED
handling design and construction of schools.
8:36:43 AM
SENATOR BEGICH supported that idea. He shared how Juvenile
Justice buildings were built from the same template which
simplified the process. The bill has 7 different templates which
are adaptable to location.
SENATOR MACKINNON said the bill provides local flexibility to do
what a community thinks is best and what an architect thinks is
safe. The bill uses limited dollars to create energy efficient
buildings that may need to be adaptable. She provided an example
of co-locating a nurse to accommodate a community's need.
SENATOR BEGICH said in 1994 the Governor's Conference on Youth
and Justice established that there would be health clinics in
new school designs.
8:39:55 AM
CHAIR HUGHES mentioned public health facilities and the need for
co-locations for their clinics due to budget reasons. The bill
could address that need.
SENATOR GIESSEL agreed. She said sometimes there is no health
clinic in a rural area, so public health nurses have to provide
health care in classrooms. She provided an example in Anchorage
of a private health entity that contracts for space in a middle
school to provide more efficient services.
8:42:15 AM
SENATOR COGHILL thought a lot of current building standards are
energy efficient and available and could be used and
standardized. He suggested tightening up the timeline in order
to get a working product sooner.
SENATOR BEGICH suggested looking at rapidly changing technology
and the need for flexibility in schools.
CHAIR HUGHES summarized that she has received calls from several
in the construction industry who have been building rural
schools and they suggested change is needed.
CHAIR HUGHES held SB 87 in committee.
SB 96-EDUCATION: SCHOOLS/TEACHERS/FUNDING
8:44:50 AM
CHAIR HUGHES announced that the final order of business would be
SB 96. She related that the committee has held several
exploratory meetings intending to offer the best education
possible to students in Alaska. Due to budget constraints, it is
time for some "out of the box" thinking. The committee explored
how to offer districts tools to do more with less and improve
student offerings.
She related that a teacher shared with her that "we don't need
to reform education, we need to transform it." She said the
achievement gap is startling and troubling. There are excellent
schools and struggling schools.
She said SB 96 attempts to improve education. She opined that
every student matters and deserves the opportunity to access an
excellent education. The bill provides new opportunities for
instruction, but also ways to save money and be more efficient
on the administrative end. She concluded that overall spending
on education does not correlate with academic achievement,
however, spending on classroom instructions does correlate with
academic achievement.
8:45:32 AM
JOSHUA BANKS, Staff, Senator Shelley Hughes, Alaska State
Legislature, presented SB 96 on behalf of the Senate Education
Committee, sponsor of the bill. He noted that they were working
on some changes in the bill that were requested by Legislative
Legal. He presented the sectional analysis:
Section 1 (Pages 1-2): Creates uncodified law for
legislative findings of the Alaska Education
Transformation Act in regards to virtual education,
education spending, and quality teachers and classroom
instruction.
Sections 2-3 (Page 2): Makes technical amendments to
AS 14.03.073 to add references to specific subsections
within this section due to a new subsection added in
Section 4 of this bill.
Section 4 (Pages 2-3): Adds a new subsection to AS
14.03.073 requiring school districts to allow credit
for gym, music, or art classes for a student that
participates in an activity that meets the educational
or physical requirements of the course. Cultural
activities may be used to obtain class credit.
Section 5 (Page 3): Amends AS 14.03.120(a) to add a
requirement to the annual report school districts must
submit to the Department of Education and Early
Development (DEED). Districts will need to include
categories of administrative employees and the ratio
of the employees in each category compared to the
number of students in the district.
MR. BANKS said a couple of changes proposed in Section 5 will
require the district to post this report on their website or use
alternative means in order to allow for the public to hold
districts more accountable for administrative costs.
8:50:57 AM
MR. BANKS continued:
Section 6 (Page 3): Amends AS 14.09.030(b) to require
DEED to conduct one inspection for each school bus
rather than two each year.
Section 7 (Page 3-4): Amends AS 14.14.110(a) to allow
school districts to partner with businesses, nonprofit
organizations, and state or local government agencies.
This section also adds to the definition of
"administrative services" to include student
nutrition, student transportation, and health
insurance pooling with the State plan. This section
also adds to the definition of "educational services"
to include teacher training and the use of technology
to teach students such as the use of virtual
education.
He said the purpose of insurance pooling in Section 7 is a
conversation starter and may be a vehicle to help districts with
high health insurance costs.
8:52:32 AM
Section 8 (Page 4): Amends AS 14.14.115(a) to allow
school districts to partner with businesses, nonprofit
organizations, and state or local government agencies
to qualify for the one-time grant under this section.
This section also increase the maximum grant amount
and requires that the school district demonstrate how
the grant will reduce costs for the district.
8:52:59 AM
CHAIR HUGHES noted the presence of Representative Parish.
8:53:17 AM
Section 9 (Page 4-5): Adds new subsections to AS
14.14.115 to give further directions for the
cooperative grants under this section.
• Subsection (d) requires that if two school districts
enter into a cooperative grant, one must be a rural
district.
• Subsection (e) establishes that if a cooperative
grant is used for health insurance pooling with the
State, the grant can only be used to pay for the costs
of transferring district employees to the State
insurance plan.
• Subsection (f) allows a school district to carry
forward the savings realized during the first three
years after a grant is awarded. The savings will not
be counted towards the fund balance limit established
in AS 14.17.505(a).
• Subsection (g) defines "rural school district" as a
regional educational attendance area or a small
municipal school district defined in AS 14.11.025(c)
as a district with less than 300 Average Daily
Membership (ADM) and a district full value per ADM
less than $500,000.
8:54:53 AM
Section 10 (Page 5): Amends AS 14.17.450(a) to provide
an exception to the School Size Adjustment (SSA) for
schools that meet the qualifications in (g) of this
section (Section 11).
Section 11 (Pages 5-6): Amends AS 14.17.450 by adding
a new subsection establishing that a school may not
use the SSA under (a) of this section if it is below
80% capacity and if it is within 25 miles by road of
another school in the same district that is also below
80% capacity.
MR. BANKS added that they are working on adjusting this section
due to unintended consequences. The intent is for schools to use
their full capacity. For example, instead of having 10 schools
at 60 percent capacity, the district would have 5 schools at
full capacity in order to bring down fixed costs.
8:56:29 AM
CHAIR HUGHES requested that Mr. Banks explain the 3-year funding
changes when a school merges with another school.
MR. BANKS explained that they are working on an additional
change in the bill to phase in a reduction of the Average Daily
Membership (ADM) over three years when schools merge.
8:57:32 AM
MR. BANKS continued:
Section 12 (Page 6): Amends AS 14.17.505(a) to
increase the limit that a school district is allowed
to retain in its unreserved fund balance from 10% to
25% of district expenditures. This section also allows
for savings realized from a cooperative grant under AS
14.14.115 to not count towards the 25% limit.
Section 13 (Page 6): Amends AS 14.20.020(i) to require
the State School Board to periodically adjust the
minimum score needed to pass the Praxis exam so that
Alaska has the highest testing standards for teacher
certification.
He pointed out that the state looks at the Praxis scores
annually now. Section 13 ensures that the state look at other
states to see whether Alaska is falling behind.
8:58:47 AM
CHAIR HUGHES said in most areas of competency Praxis scores are
comparable to other states except in a few courses, such as
chemistry.
8:59:25 AM
MR. BANKS further explained a proposed change in the bill - if
the State School Board changes regulations to increase Praxis
scores, the changes will not go into effect for a year.
8:59:59 AM
He continued:
Section 14 (Page 6): Adds a new subsection to AS
14.20.380 to require DEED to provide administrative
services to the Professional Teaching Practices
Commission (PTPC).
He noted that this is already being done.
9:00:26 AM
MR. BANKS continued:
Section 15 (Page 6-7): Amends AS 14.20.460 to require
the PTPC to use administrative support services
provided by DEED.
Section 16 (Pages 7-9): Creates a new section under AS
14.30 titled Virtual education consortium which also
creates a new article titled Article 15. Virtual
Education. The subsections that AS 14.30.760 consists
of are:
• Subsection (a) establishes the virtual education
consortium under DEED. The consortium will have a
database of virtual education courses available to all
districts for students in grades 6-12. The consortium
will also provide training for teachers instructing in
virtual settings and professional development for all
teachers in the state. A school district or third-
party vendor may offer courses on the database if it
is approved by DEED.
• Subsection (b) will require DEED to review each
course to ensure it meets state standards and is
appropriate for students in grades 6-12. This
subsection also requires that each course has the
following information: the title, subject, and
description of the course, the district providing the
course, method of virtual education delivery, and
samples of the course curriculum and teacher
instruction provided in the course.
9:02:58 AM
Subsection (c) requires the consortium to provide
training for teachers before they are allowed to teach
a course that is included in the database. A waiver
may be granted if the consortium finds that the
teacher has the experience and skills necessary to
teach in a virtual setting.
• Subsection (d) requires that the consortium provide
professional development courses for all teachers in
the state. Any district that has adequate broadband
access to participate in the trainings shall require
its teachers to participate in any necessary
trainings. The consortium may also require
participating districts to adopt the same in-service
days for training.
• Subsection (e) sets a fee structure for students
that take a course offered virtually by a school
district that is not the student's home district. The
student's district shall calculate the fee by
multiplying the base student allocation by the
proportion of classes that the student is taking in
the district offering the virtual course. The
student's district shall pay this fee to the district
offering the course.
• In subsection (f), the consortium is allowed to
charge a fee to any school district that offers a
course in the database under (b) of this section. DEED
will be able to set the fee in regulation and can
adjust it as necessary annually. The fees must be set
in such a manner that by June 30, 2020, the fees paid
by districts will approximately equal any
administrative costs of the consortium.
9:05:12 AM
CHAIR HUGHES requested that Mr. Banks discuss the proposed
change to (f).
MR. BANKS said it is proposed that all participating districts
pay a fee.
9:05:44 AM
He continued:
Subsection (g) allows the consortium to require
districts that provide courses or have students taking
courses through the consortium to adopt a shared
calendar and a shared bell schedule for at least a
portion of the school day.
He noted that it is optional. Copper River School District has
adopted a common calendar and common bell which have resulted in
efficiencies.
9:06:42 AM
He continued:
Subsection (h) creates definitions for the terms:
"asynchronous", "base student allocation", "blended",
"host district", "synchronous", and "virtual
education" or "virtual instruction".
9:06:57 AM
MR. BANKS continued:
Section 17 (Pages 9-12): Deletes a reference to AS
23.10.065(b) in AS 23.10.055(a) (Alaska Wage and Hour
Act) which is repealed in Section 23 of this bill.
Section 18 (Page 12): Deletes the reference to AS
37.14.110(c) which is repealed in Section 24 of this
bill, and rearranges the reference to AS 37.14.160.
Section 19 (Page 12): Deletes language in AS 37.14.130
that requires the Public School Fund Advisory Board to
prepare accounting specifically for the principal and
income of the Public School Trust Fund.
Section 20 (Pages 12-13): Deletes language in AS
37.14.160 relating to separate accounting of the
principal and income of the Public School Trust Fund.
This section also requires the Department of Revenue
(DOR) to determine each year the monthly average
market value of fund for the last three fiscal years.
9:08:23 AM
MR. BANKS continued:
Section 21 (Page 13): Creates a new section in AS
37.14 to allow the Legislature to appropriate 4.75% of
the market value established with the changes made in
Section 20 of the bill. The funds may be used to
support public education in Alaska and to cover the
administrative costs of the fund.
He described a proposed change to Section 21. No more than
4.75 percent can be appropriated, and the legislature may
not appropriate more than the income earned by the fund.
The intent of the changes is to avoid any possibility of
the legislature appropriating from the principal of the
fund - a violation of Trust law.
Section 22 (Pages 13-14): Amends AS 37.14.170 to allow
the commissioner of DOR to invest the Public School
Trust Fund in order to provide increasing returns from
capital appreciation.
Section 23 (Page 14): Repeals AS 14.20.470(a)(7) so
that the PTPC is no longer able to appoint an
executive secretary. This section also repeals AS
23.10.065(b) and (c) which requires an employer to pay
a public school bus driver at a rate two times the
Alaska minimum wage, and which allows for wage
adjustments to only occur when a contract begins or is
renewed.
9:10:08 AM
Section 24 (Page 14): Repeals AS 37.14.110(c) which
sets how the commissioner of DOR will calculate the
net income of the Public School Trust Fund and AS
37.14.140 which requires that net income from the fund
only go towards funding public education.
MR. BANKS said they are looking at removing the repeal of AS
37.14.140(c) because the changes made in Section 21 regarding
limiting how much the legislature can appropriate from the Trust
Fund, will deal with any legal problems.
Section 25 (Page 14): Creates applicability language
for the repeal of AS 23.10.065(b) and (c) so that this
bill will only effect contracts made on or after the
effective date of this bill.
9:11:20 AM
MR. BANKS stated that they will be deleting Sections 26 and 27
because there is no longer litigation.
Section 26 (Page 14): Creates a conditional effect
establishing that changes made to the Public School
Trust Fund will only go into effect if a final
judgment is made regarding combining the income and
principal of the Public School Trust Fund and that
such action will not violate trust law. The
commissioner of DEED shall notify the Lieutenant
Governor and the revisor of statutes when the final
judgement has been entered.
Section 27 (Page 14): Creates an effective date for
Sections 18-22 and 24 to be the day after the
commissioner of DEED notifies the revisor of statutes
that a final judgment has been made regarding the
Public School Trust Fund.
Section 28 (Page 14): Creates an effective date for
Sections 1-17, 23, and 25 to be June 30, 2017.
9:12:42 AM
MR. BANKS offered to answer questions. He noted several people
were available for questions.
CHAIR HUGHES thanked him for his work.
9:13:06 AM
SENATOR BEGICH brought up a technical point on Section 28. He
said the effective date and other references would have to be
changed due to the proposed changes.
He thanked Mr. Banks for his hard work.
SENATOR BEGICH drew attention to Section 11 on page 6 and
cautioned against three things: combining two schools that are
under capacity resulting in one school over capacity; building
one school for communities that have a right to their own
schools, and lacking a clear definition of "road".
9:15:39 AM
SENATOR BEGICH asked whether there is a grandfather clause
included with the Praxis exam change for teachers who are
currently certified.
MR. BANKS said there would be a grandfather clause.
9:16:19 AM
SENATOR BEGICH asked for clarification on the fee on page 8 (e)
and (f).
MR. BANKS said the intent is that a school district can choose
not to take the full fee and there would be a ceiling for the
fee.
CHAIR HUGHES added that the fee could be zero to the full
amount.
SENATOR BEGICH suggested changing "shall" to "may" in line 22.
9:17:28 AM
SENATOR BEGICH suggested clarifying the issue of the double
minimum wage bus driver repeal in AS 37.14.140. He thought there
was ambiguity about that issue and how it relates to the use of
the Trust Fund.
MR. BANKS replied that they have requested Legislative Legal to
delete that portion.
SENATOR GIESSEL appreciated the sponsor's hard work.
9:19:15 AM
CHAIR HUGHES clarified that the repeal of AS 37.14.140 would not
prohibit a district from continuing to pay twice the minimum
wage.
SENATOR BEGICH asked about changing bus inspections from two
times a year to one time a year. He wanted assurance that public
safety was not at risk due to the change.
MR. BANKS explained that one inspection is required; two or more
are optional.
9:20:57 AM
SENATOR BEGICH commented on the constitutional issue related to
the Public Schools Trust and noted the Kasayulie litigation has
been suspended and that issue is off the table.
9:21:34 AM
CHAIR HUGHES said they are open to further discussion on the
bill. She asked when the new CS is expected.
MR. BANKS said he believes it will be ready tomorrow.
CHAIR HUGHES noted that DEED would have a chance to address the
bill.
CHAIR HUGHES held SB 96 in committee.
9:22:47 AM
There being no further business to come before the committee,
Chair Hughes adjourned the Senate Education Standing Committee
at 9:22 p.m.