Legislature(2017 - 2018)BUTROVICH 205
03/24/2017 08:00 AM Senate EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| SB87 | |
| SB78 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 78 | TELECONFERENCED | |
| += | SB 96 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 87 | ||
ALASKA STATE LEGISLATURE
SENATE EDUCATION STANDING COMMITTEE
March 24, 2017
8:01 a.m.
MEMBERS PRESENT
Senator Shelley Hughes, Chair
Senator Gary Stevens
Senator John Coghill
Senator Tom Begich
MEMBERS ABSENT
Senator Cathy Giessel
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. 78
"An Act creating the education endowment fund and the dividend
lottery fund; authorizing contributions from the permanent fund
dividend to the dividend lottery fund; relating to transfers
from the dividend lottery fund and the education endowment fund;
relating to the definition of 'gambling'; 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."
- BILL HEARING CANCELED
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
03/22/17 (S) Heard & Held
03/22/17 (S) MINUTE(EDC)
BILL: SB 78
SHORT TITLE: PERM FUND DIVIDEND CONTRIBUTIONS/LOTTERY
SPONSOR(s): SENATOR(s) BISHOP
03/06/17 (S) READ THE FIRST TIME - REFERRALS
03/06/17 (S) EDC, FIN
03/24/17 (S) EDC AT 8:00 AM BUTROVICH 205
WITNESS REGISTER
BRITTANY HUTCHISON, Staff
Senator Anna MacKinnon
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reviewed SB 87 on behalf of the sponsor.
JOHN ANDERSON, Director
Research and Rural Development
Alaska Housing Finance Corporation (AHFC)
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 87.
CHRISTOPHER HODGIN, Engineer
Statewide Public Facilities
Department of Transportation and Public Facilities (DOTPF)
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 87.
JACK HEBERT, CEO
Cold Climate Housing Research Center
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 87.
KATIE CONWAY, Manager
Outreach and Efficiency, Government Relations
Alaska Energy Authority (AEA)
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 87.
SENATOR CLICK BISHOP
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 78.
PETE FELLMAN, Staff
Senator Click Bishop
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained SB 78 on behalf of the sponsor.
ACTION NARRATIVE
8:01:51 AM
CHAIR SHELLEY HUGHES called the Senate Education Standing
Committee meeting to order at 8:01 a.m. Present at the call to
order were Senators Begich, Coghill, Stevens, and Chair Hughes.
SB 87-SCHOOL CONSTRUCTION ENERGY EFFICIENCY STD
8:02:19 AM
CHAIR HUGHES announced the consideration of SB 87. She noted it
is the second hearing of the bill. She listed those available to
answer questions.
BRITTANY HUTCHISON, Staff, Senator Anna MacKinnon, Alaska State
Legislature, reviewed SB 87 on behalf of the sponsor. She
summarized the purpose and goal of SB 87. She said the bill will
increase energy and operating efficiency in school buildings. It
will help make schools more affordable, maintainable, and longer
lasting. School districts in Alaska need long-term operating
cost savings, and energy and operating costs are eating up the
base student allocation. As stewards of public funds, efficient
use of money and energy is essential to public policy. The state
needs to maintain and control costs for all public school
facilities and extend the lives of those facilities by being
more energy efficient, by using standardized component parts,
and by placing prioritization on classroom infrastructure and
functional design.
8:05:21 AM
SENATOR STEVENS asked who makes up the group that is putting
this together. He voiced concern about co-locating schools with
other state facilities.
MS. HUTCHISON replied that Section 10 lists the nine working
group members: one from DEED, one from AHFC, one from AEA, one
from the Cold Climate Research Center, one from DOTPF, one
superintendent from a rural school district and one from an
urban school district, and two members from the construction
industry.
She addressed Senator Stevens' concern about co-location. The
bill provides that all agencies or organization must have
background checks and separate entrances. She provided examples
of who might co-locate in a school, such as health aides,
firefighters, librarians.
8:07:05 AM
SENATOR STEVENS had concerns about energy costs in rural areas.
He said that some members in the working group would have
experience with rural energy costs.
MS. HUTCHISON agreed.
8:07:45 AM
CHAIR HUGHES asked if two members from the construction industry
would be enough. She suggested having one member be from either
AEA or Cold Climate Research.
MS. HUTCHISON responded that the sponsor has considered having
architects or designers in the group and she is open to
suggestions. She would like to keep it to 9 to 11 members.
SENATOR BEGICH suggested having two alternates from the
construction industry.
MS. HUTCHISON said reiterated that the goal is to keep the
working group manageable with 9 to 11 members.
8:09:37 AM
SENATOR STEVENS asked if the working group has a higher
authority than the local community has.
MS. HUTCHISON said the group does not have authority over local
control. She added that a school district can go above and
beyond the recommendations for cost per square footage, but must
pay for it. The idea is to follow certain standards.
8:10:58 AM
CHAIR HUGHES asked whether an existing school would go through
the same process to convert to a multiple-purpose facility.
MS. HUTCHISON said that provision is included in the plan.
CHAIR HUGHES questioned the clarity of "major maintenance
project" on page 5, line 31.
MS. HUTCHISON said she did not have the answer.
8:12:02 AM
SENATOR BEGICH said that "major maintenance" in school
construction is defined in statute.
CHAIR HUGHES wondered if new out buildings on school property
would follow the same process.
MS. HUTCHISON said they had not considered it.
CHAIR HUGHES suggested it would work, as the bill is written.
8:13:15 AM
SENATOR BEGICH asked Ms. Hutchison if she would be looking at
these suggestions soon.
MS. HUTCHISON said the sponsor does have a list of suggestions
and has heard from multiple stakeholders, including the
Department of Law. She thought they would have a plan by 5:00
today.
8:14:17 AM
SENATOR COGHILL saw that on page 10, lines 26 and 27, after the
working group is done they report to the legislature. He asked
if that is after regulations have gone into effect.
MS. HUTCHISON explained the timeline. Once SB 87 passes, the
working group would have 18 months to come up with a report to
the legislature. Immediately after, the department would have 6
months to write regulations. The sponsor is considering the
legislature's role as it relates to regulations.
SENATOR COGHILL suggested that DEED, as a member of the working
group, may want to be involved all through the process in order
to provide a fiscal note.
8:15:46 AM
MS. HUTCHISON said there is a DEED fiscal note attached which
requests two full-time employees and one temporary employee.
SENATOR COGHILL liked the timeline and the working group makeup.
He also said he can accept the 18-month deadline. He asked if
the working group has a definition for climate regions.
8:17:30 AM
MS. HUTCHISON replied that there is a list of four climate zones
in Alaska. AHFC can address the zones.
CHAIR HUGHES pointed out that there are cost variables within
those zones.
SENATOR COGHILL agreed that economic and transportation costs
also vary.
MS. HUTCHISON noted that the bill establishes the maximum cost
per square foot, which is subject to change based on many
variables.
CHAIR HUGHES asked if AHFC is the best one to address that
issue.
MS. HUTCHISON said yes.
8:19:02 AM
JOHN ANDERSON, Director, Research and Rural Development, Alaska
Housing Finance Corporation (AHFC), answered questions related
to SB 87. He responded first to the question about climate zones
by relating AHFC's building energy efficient standards in
reference to residential housing. They apply the same climate
zone standards through all programs, including commercial
application or public facilities. Their process follows a
national model the Department of Energy and the Environmental
Protection Agency put out. AHFC uses modeling software called
AkWarm to determine climate regions using the number of heating
degree days. It is specific to the energy characteristics in
Alaska's regions and includes Climate Zone 9. Other
characteristics such as transportation costs can be addressed
through the working group.
8:21:01 AM
SENATOR BEGICH stated that the bill is written to address the
climate zones. He suggested having other language to address
other factors, such as cost and transportation factors, to get
to a square-footage cost. He asked if AHFC sets those costs
based only on climate data.
MR. ANDERSON said yes.
8:21:51 AM
CHAIR HUGHES inquired about the 30-year life of a building on
page 10. She wondered if that length could be extended to 50
years.
MS. HUTCHISON recommended asking Cold Climate Housing Research
Center, AHFC, or DOTPF.
CHAIR HUGHES asked Mr. Hodgin to answer.
8:22:55 AM
CHRISTOPHER HODGIN, Engineer, Statewide Public Facilities,
Department of Transportation and Public Facilities (DOTPF),
answered questions related to SB 87. He addressed the life of a
building. If it is extended past 30 years, increased cost
factors must be considered. Regarding energy efficient upgrades,
some of the technologies have less than a 30-year life.
8:23:51 AM
JACK HEBERT, CEO, Cold Climate Housing Research Center, answered
questions related to SB 87. He said the durability of a building
is based on a number of factors related to the mechanical
systems. However, the structure itself is dependent on the
building science incorporated in it. There is no reason why a
building cannot be designed to last 50 to 75 years.
CHAIR HUGHES asked how much that might affect the cost.
MR. HEBERT opined that it does not necessarily have to cost more
with proper selection of materials.
8:25:25 AM
SENATOR BEGICH asked about page 6, Section 8, where it says the
Commissioner of DEED shall consult with AEA. He questioned
whether DOTPF could also be consulted and if that was ok with
AEA.
8:26:00 AM
KATIE CONWAY, Manager, Government Relations, Alaska Energy
Authority (AEA), Department of Commerce, Community and Economic
Development (DCCED), answered questions related to SB 87. She
suggested that while AEA could manage this task if the
legislature requests it, DOTPF could also. She thought it would
make sense to ask DOTPF.
8:26:52 AM
MR. HODGIN agreed that DOTPF could assist with the task.
SENATOR BEGICH said it didn't matter to him who does it; the one
best suited to is fine with him.
CHAIR HUGHES offered a question directed to DEED regarding when
the reports mentioned on page 8 are required. It says the
maintenance and support team will report and the school district
will also report. She asked if one or two reports are required
and what is to be reported. She requested that DEED address
those issues at a later meeting.
CHAIR HUGHES held SB 87 in committee.
SB 78-PERM FUND DIVIDEND CONTRIBUTIONS/LOTTERY
8:28:59 AM
CHAIR HUGHES announced the considerations of SB 78.
SENATOR CLICK BISHOP, Alaska State Legislature, sponsor of SB
78. He introduced SB 78 by saying that the bill sets up a
foundation for an innovative way to raise funding to help a
great cause - funding the future for Alaska's greatest asset -
its children. He said he has long been in favor of economic
diversification and using renewable resources, such as the
earning of the permanent fund.
He shared a personal story about an education tax on his
paycheck when he was first starting to work. In the 1980s the
education head tax was struck down. He said he has been seeking
support for a way to fund education for the last four years.
He called his bill a voluntary limited income tax. He said over
60 percent of his district supports education. He gave an
example of a constituent who returned his PFD the last two
years.
SENATOR BISHOP said the purpose of the bill is to look way into
the future, post oil, to help partially fund education using
Alaska's renewal resource, the power of its permanent fund
earnings.
8:33:17 AM
SENATOR STEVENS asked if he will use Pick, Click, Give.
SENATOR BISHOP said yes.
PETE FELLMAN, Staff, Senator Click Bishop, Alaska State
Legislature, explained SB 78 on behalf of the sponsor. He
explained that SB 78 provides that everyone could donate to
education in $100 increments on their permanent fund
application. He said that half of the money goes to the public
education fund; a quarter goes to an education endowment fund
which will reach a cap and then roll money into the public
education fund; and one quarter goes into the lottery fund which
has a $500 million cap. After the lottery has reached the cap,
all future donations will go to education. Out of the lottery
fund, 20 percent will go to lotter prizes, and 80 percent will
stay in the lottery fund. Every year the lottery fund will grow
and will be managed in a conservative manner.
8:36:47 AM
MR. FELLMAN showed a table of hypothetical fund result
possibilities year by year: number of participants, average
donations, deposits to fund types, and prize amounts. He termed
it a bucket lottery. He hoped the fund would be self-sustaining
in the future.
He noted Alaska already has sixteen variations of charitable
gaming and he provided examples, such as the Ice Classic. The
lottery will not need administrative money from the state, it
comes from the donations.
8:40:05 AM
MR. FELLMAN explained the changes in the proposed CS, version R.
One change would cap the amount of money needed to manage the
lottery to $500,000. The other change was so that the 125,000
people who do not file their permanent fund on a computer could
participate in the lottery. It removes the word "electronic" and
"who files electronically" from the bill.
8:40:48 AM
SENATOR COGHILL moved to adopt the CS for SB 78, labeled 30-
LS0534\R, as the working document before the committee.
CHAIR HUGHES objected for discussion purposes.
8:41:43 AM
CHAIR HUGHES noted there are state lotteries in the U.S., but SB
78 is more like a raffle. She asked what the difference between
a lottery and a raffle is.
MR. FELLMAN clarified that it is a limited lottery because
participants must be residents of the state who receive a PFD
and the donation can come only once a year from the PFD.
Participants cannot spend their children's PFD or their rent
money. It is different than any other game of chance.
CHAIR HUGHES asked why they chose "lottery" rather than
"raffle."
MR. FELLMAN said they were excited about it and lottery is a
catch word for big winnings, not a small raffle. The sponsor
pictured the Governor announcing the permanent fund and the
winners of this lottery. He concluded that 95 percent of the
money stays secure for education.
CHAIR HUGHES removed her objection and version R was adopted.
She held SB 78 in committee.
8:45:35 AM
There being no further business to come before the committee,
Chair Hughes adjourned the Senate Education Standing Committee
at 8:45 a.m.