Legislature(2017 - 2018)BUTROVICH 205

03/22/2017 08:00 AM EDUCATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 87 SCHOOL CONSTRUCTION ENERGY EFFICIENCY STD TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
*+ SB 96 EDUCATION:SCHOOLS/TEACHERS/FUNDING TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled 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.                                                                                                                    

Document Name Date/Time Subjects
SB 87 - Sponsor Statement.pdf SEDC 3/22/2017 8:00:00 AM
SB 87
SB 87 - Legislation Ver. J.pdf SEDC 3/22/2017 8:00:00 AM
SB 87
SB 87 - Sectional Analysis.pdf SEDC 3/22/2017 8:00:00 AM
SB 87
SB 87 - Fiscal Note - EED-SFF-3-17-17.pdf SEDC 3/22/2017 8:00:00 AM
SB 87
SB 87 - Supporting Documents - DEED Energy Data FY02 - FY17.pdf SEDC 3/22/2017 8:00:00 AM
SB 87
SB 87 - Supporting Documents - 2017 School Capacity.pdf SEDC 3/22/2017 8:00:00 AM
SB 87
SB 87 - Supporting Documents - Climate Zones.pdf SEDC 3/22/2017 8:00:00 AM
SB 87
SB 87 - Supporting Documents - DEED Capital Improvement Projects 15 year analysis.pdf SEDC 3/22/2017 8:00:00 AM
SB 87
SB 96 - Sponsor Statement.pdf SEDC 3/22/2017 8:00:00 AM
SB 96
SB 96 - Legislation Ver. R.pdf SEDC 3/22/2017 8:00:00 AM
SB 96
SB 96 - Sectional Analysis.pdf SEDC 3/22/2017 8:00:00 AM
SB 96
SB 96 - Supporting Document - Fact Sheet.pdf SEDC 3/22/2017 8:00:00 AM
SB 96
SB 96 - Supporting Document - DEED Performance Review PTPC Recommendations.pdf SEDC 3/22/2017 8:00:00 AM
SB 96
SB 96 - Supporting Document - PSTF_Forecast_through_JAN2017_FINAL as of 2.23.2017.pdf SEDC 3/22/2017 8:00:00 AM
SB 96