Legislature(2023 - 2024)SENATE FINANCE 532

03/14/2023 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 81 OFFICE OF VICTIMS' RIGHTS: COMPENSATION TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- <Time Limit May Be Set> --
+ SB 29 CIVICS EDUCATION; EST AK CVCS ED COMM TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- <Time Limit May Be Set> --
*+ SB 98 POWER COST EQUALIZATION ENDOWMENT FUND TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      March 14, 2023                                                                                            
                         9:02 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:02:54 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Olson  called the Senate Finance  Committee meeting                                                                    
to order at 9:02 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Donny Olson, Co-Chair                                                                                                   
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Jesse Kiehl                                                                                                             
Senator Kelly Merrick                                                                                                           
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Elvi  Gray-Jackson,  Sponsor;  Jeff  Stepp,  Staff,                                                                    
Senator   Elvi   Gray-Jackson;  Jessica   Geary,   Executive                                                                    
Director,   Legislative   Affairs;  Megan   Wallace,   Chief                                                                    
Counsel,   Legislative   Legal    Services,   Alaska   State                                                                    
Legislature;  Senator  Gary  Stevens, Sponsor;  Tim  Lamkin,                                                                    
Staff,  Senator  Gary  Stevens; Ken  Alper,  Staff,  Senator                                                                    
Donny Olson.                                                                                                                    
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Kathy   Hansen,  Interim   Executive  Director,   Office  of                                                                    
Victims' Rights;  Herman Morgan,  Self, Aniak;  Chuck Corra,                                                                    
Associate  Director,  Coalitions   and  Policy  Research  at                                                                    
Generation Citizen, West  Virginia; Lisa Boudreau, Director,                                                                    
State  Policy  at  CivX Now,  Juneau;  Christine  Hutchison,                                                                    
Self, Ketchikan;  Antonia Leonard, Self, Eagle  River; Kelly                                                                    
Manning,  Deputy  Director,  Innovation  and  Excellence  in                                                                    
Education, Juneau.                                                                                                              
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 29     CIVICS EDUCATION; EST AK CVCS ED COMM                                                                                 
                                                                                                                                
          SB 29 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 81     OFFICE OF VICTIMS' RIGHTS: COMPENSATION                                                                               
                                                                                                                                
          SB 81 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 98     POWER COST EQUALIZATION ENDOWMENT FUND                                                                                
                                                                                                                                
          SB 91 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 81                                                                                                            
                                                                                                                                
     "An Act relating to the  office of victims' rights; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
9:03:15 AM                                                                                                                    
                                                                                                                                
SENATOR   ELVI   GRAY-JACKSON,   SPONSOR,   introduced   the                                                                    
legislation.                                                                                                                    
                                                                                                                                
9:05:21 AM                                                                                                                    
                                                                                                                                
JEFF STEPP, STAFF, SENATOR ELVI GRAY-JACKSON, addressed the                                                                     
Sectional Analysis (copy on file):                                                                                              
                                                                                                                                
     Section 1  amends AS 24.65.060,  which sets  the salary                                                                    
     range  for  the  victims'  advocate,  to  add  the  new                                                                    
     subsection  (l)  under  AS  39.27.011  created  by  the                                                                    
     passage of HB 226 in 2022.                                                                                                 
                                                                                                                                
     That new subsection reads:                                                                                                 
     (l)  The  amounts  set  out   in  the  salary  schedule                                                                    
     contained in  (a) of this  section are increased  by 15                                                                    
     percent  for positions  within the  Department of  Law,                                                                    
     the public  defender agency, and  the office  of public                                                                    
     advocacy that require admission  to the practice of law                                                                    
     in this  state as a condition  of employment, positions                                                                    
     in the  division of legal and  research services within                                                                    
     the  Legislative   Affairs  Agency  and   any  nonunion                                                                    
     positions   in  the   executive  branch   that  require                                                                    
     admission to  the practice  of law in  this state  as a                                                                    
     condition of  employment, and the  chief administrative                                                                    
     law judge  and administrative law judges  of the office                                                                    
     of administrative hearings under AS 39.25.120(c)(20).                                                                      
                                                                                                                                
     Section  2 amends  AS 24.65.070(c)  to place  OVR staff                                                                    
     attorneys  on   the  new   salary  schedule   under  AS                                                                    
     39.27.011(a) and  (l) created by the  implementation of                                                                    
     HB 226.                                                                                                                    
                                                                                                                                
     Section 3 makes the  Act effective immediately under AS                                                                    
     01.10.070(c),  which says,  "The actual  effective date                                                                    
     and time  of an Act having  an immediate-effective-date                                                                    
     provision is  12:01 a.m., Alaska Standard  Time, on the                                                                    
     day after  it is signed by  the governor or on  the day                                                                    
     after the governor's  veto is overridden or  on the day                                                                    
     after   expiration   of    the   period   allowed   for                                                                    
     gubernatorial action by art. II,  Sec. 17 of the Alaska                                                                    
     Constitution.                                                                                                              
                                                                                                                                
9:07:32 AM                                                                                                                    
                                                                                                                                
KATHY   HANSEN,  INTERIM   EXECUTIVE  DIRECTOR,   OFFICE  OF                                                                    
VICTIMS' RIGHTS  (via teleconference),  spoke in  support of                                                                    
the legislation.                                                                                                                
                                                                                                                                
9:10:34 AM                                                                                                                    
                                                                                                                                
Co-Chair  Olson   noted  that  the  fiscal   note  was  from                                                                    
Legislative Affairs.                                                                                                            
                                                                                                                                
9:10:49 AM                                                                                                                    
                                                                                                                                
JESSICA  GEARY,  EXECUTIVE  DIRECTOR,  LEGISLATIVE  AFFAIRS,                                                                    
discussed the fiscal note attached to the bill.                                                                                 
                                                                                                                                
9:11:50 AM                                                                                                                    
                                                                                                                                
MEGAN  WALLACE, CHIEF  COUNSEL, LEGISLATIVE  LEGAL SERVICES,                                                                    
ALASKA STATE LEGISLATURE, stated  that she was available for                                                                    
questions.                                                                                                                      
                                                                                                                                
Co-Chair  Olson  wondered  how  the  oversight  worked  with                                                                    
increases for some but not others.                                                                                              
                                                                                                                                
Ms. Wallace  replied that the  increases associated  with HB
226 came into the bill late in session via an amendment.                                                                        
                                                                                                                                
Co-Chair Olson OPENED public testimony.                                                                                         
                                                                                                                                
9:13:30 AM                                                                                                                    
                                                                                                                                
HERMAN MORGAN,  SELF, ANIAK  (via teleconference),  spoke to                                                                    
issues in rural Alaska.                                                                                                         
                                                                                                                                
Co-Chair Olson asked  what the testimony had to  do with the                                                                    
bill.                                                                                                                           
                                                                                                                                
Mr. Morgan stated that the parents of victims had suffered.                                                                     
                                                                                                                                
Co-Chair Olson CLOSED public testimony.                                                                                         
                                                                                                                                
9:20:04 AM                                                                                                                    
                                                                                                                                
Ms.  Gray-Jackson  explained  that  there  were  notes  that                                                                    
stated  that  $75,000,  so the  attorneys  had  received  an                                                                    
increase.                                                                                                                       
                                                                                                                                
SB  81  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 29                                                                                                            
                                                                                                                                
     "An   Act   relating   to  civics   education,   civics                                                                    
     assessments,    and    secondary   school    graduation                                                                    
     requirements; establishing the  Alaska Civics Education                                                                    
     Commission; and providing for an effective date."                                                                          
                                                                                                                                
9:21:38 AM                                                                                                                    
                                                                                                                                
SENATOR GARY STEVENS, SPONSOR, introduced the legislation.                                                                      
                                                                                                                                
9:24:26 AM                                                                                                                    
                                                                                                                                
TIM   LAMKIN,  STAFF,   SENATOR  GARY   STEVENS,  introduced                                                                    
himself.                                                                                                                        
                                                                                                                                
Co-Chair Olson wondered whether  a student would keep taking                                                                    
the exam in order to succeed.                                                                                                   
                                                                                                                                
Senator Stevens replied in the affirmative.                                                                                     
                                                                                                                                
9:25:35 AM                                                                                                                    
                                                                                                                                
Co-Chair Olson queried the number of questions on the exam.                                                                     
                                                                                                                                
Senator  Stevens  replied  that  the exam  was  one  hundred                                                                    
questions.                                                                                                                      
                                                                                                                                
Co-Chair   Olson  wondered   whether  the   bill  would   be                                                                    
considered an unfunded mandate.                                                                                                 
                                                                                                                                
Senator Stevens replied  that he had heard that  it would be                                                                    
considered an unfunded mandate,  but remarked that the state                                                                    
funded education. He stressed  that there was an expectation                                                                    
in  the school  system that  it provided  the students  with                                                                    
what it means to be a citizen.                                                                                                  
                                                                                                                                
Co-Chair  Olson wondered  what kind  of resistance  had been                                                                    
received against the legislation.                                                                                               
                                                                                                                                
Senator Stevens deferred to Mr. Lamkin.                                                                                         
                                                                                                                                
Mr. Lamkin explained that there  was a component of the bill                                                                    
that allowed repeating the test  or taking a semester course                                                                    
until receiving a passing grade.                                                                                                
                                                                                                                                
Co-Chair  Olson wondered  whether there  was a  disadvantage                                                                    
for the rural students.                                                                                                         
                                                                                                                                
Senator  Stevens  replied that  that  there  was an  account                                                                    
taken into account for the rural students.                                                                                      
                                                                                                                                
Senator Kiehl  remarked that the state  required three years                                                                    
of  social studies,  and wondered  whether  the semester  of                                                                    
civics could be considered a social studies requirement.                                                                        
                                                                                                                                
Mr.  Lamkin  replied  that  the  bill did  not  mean  to  be                                                                    
prescriptive, and allowed for the current local control.                                                                        
                                                                                                                                
9:31:12 AM                                                                                                                    
                                                                                                                                
CHUCK  CORRA,  ASSOCIATE  DIRECTOR,  COALITIONS  AND  POLICY                                                                    
RESEARCH   AT  GENERATION   CITIZEN,   WEST  VIRGINIA   (via                                                                    
teleconference), testified in support of the bill.                                                                              
                                                                                                                                
9:34:57 AM                                                                                                                    
                                                                                                                                
Co-Chair Olson wondered whether West Virginia had a similar                                                                     
requirement.                                                                                                                    
                                                                                                                                
Mr. Corra agreed to provide that information.                                                                                   
                                                                                                                                
Co-Chair Olson asked about the requirement for every state.                                                                     
                                                                                                                                
9:35:31 AM                                                                                                                    
                                                                                                                                
Mr. Corra replied that it depended on the state.                                                                                
                                                                                                                                
Mr. Lamkin furthered that there  was a document on file that                                                                    
showed  what  other states  were  doing  as related  to  the                                                                    
states.  He  stated that  West  Virginia  required a  civics                                                                    
assessment for graduated.                                                                                                       
                                                                                                                                
9:36:51 AM                                                                                                                    
                                                                                                                                
LISA BOUDREAU, DIRECTOR, STATE POLICY AT CIVX NOW, JUNEAU                                                                       
(via teleconference), read from a prepared statement:                                                                           
                                                                                                                                
     Good afternoon, I'd like to  thank the three co-chairs,                                                                    
     Stedman,  Hoffman and  Olsen  and  the other  honorable                                                                    
     members  of the  Committee.  It's an  honor to  testify                                                                    
     before the Alaska Senate Finance Committee.                                                                                
                                                                                                                                
     My name  is Lisa Boudreau,  and I serve as  Director of                                                                    
     State Policy  for the CivXNow  Coalition, a  project of                                                                    
     iCivics.                                                                                                                   
                                                                                                                                
     Before  detailing our  work at  CivXNow and  addressing                                                                    
     the merits  of Senate Bill 29,  I want to speak  to the                                                                    
     perilous state of our constitutional democracy.                                                                            
                                                                                                                                
          We've long  lamented the state of  civic knowledge                                                                    
          in the  country, and  the annual  Annenberg Public                                                                    
          Policy  Center's Civic  Knowledge Survey  released                                                                    
          last September is cause for continued concern:                                                                        
                                                                                                                                
          •  Less  than half  (47  percent)  of U.S.  adults                                                                    
          could name all three  branches of government, down                                                                    
          from  56 percent  in 2021.  One  in 4  respondents                                                                    
          could not name any.                                                                                                   
                                                                                                                                
          • Asked to  name the five rights  protected by the                                                                    
          First  Amendment, fewer  Americans could  name any                                                                    
          of the five  than in 2021. For  example, less than                                                                    
          1 in 4 people (24 percent) could name freedom of                                                                      
          religion, down from 56 percent the prior year.                                                                        
                                                                                                                                
     Turning   to  K-12,   we're  all   too  familiar   with                                                                    
     depressing scores  from the  nation's report  card, the                                                                    
     National  Assessment  of  Educational  Progress,  where                                                                    
     civics and  U.S. history  scores regularly  rank lowest                                                                    
     among all subjects tested. In  2018, only 24 percent of                                                                    
     8th graders were deemed proficient  on a test measuring                                                                    
     civic  knowledge,  skills,   and  dispositions,  and  a                                                                    
     paltry  15  percent  were  proficient  in  US  history.                                                                    
     Lastly, in  Alaska there is currently  not a designated                                                                    
     position in the Alaska  Department of Education that is                                                                    
     focused on social studies.                                                                                                 
                                                                                                                                
     These  results taken  together, it's  fair to  question                                                                    
     the  extent   to  which  Americans  and   Alaskans  are                                                                    
     prepared  for informed,  effective, and  lifelong civic                                                                    
     engagement.  Solutions are  not immediate  or singular,                                                                    
     but  as  social  studies educators  and  advocates,  we                                                                    
     offer   the   most   promising   long-term   plan   for                                                                    
     strengthening    and    sustaining    our    democratic                                                                    
     institutions.                                                                                                              
                                                                                                                                
     Stated  simply, civic  education is  key to  rebuilding                                                                    
     trust  in  institutions   and  one  another,  fostering                                                                    
     informed  patriotism   and  civility,   and  empowering                                                                    
     citizens to build a more perfect union.                                                                                    
     This statement  is not just  based on what I  think, We                                                                    
     know  it's what  voters  and parents  want. Last  fall,                                                                    
     pollster  Brent Buchanan  and  his  firm Cygnal  gauged                                                                    
     public support  for stronger K12  civic  education. The                                                                    
     poll  engaged  a national  sample  of  3,002 adults  in                                                                    
     September  2022, including  2,385 likely  voters; 1,195                                                                    
     Republican primary  voters; and 803 K12   parents, with                                                                    
     substantial    overlap    across    groups.    Overall,                                                                    
     respondents  demonstrated   strong  support   for  more                                                                    
     emphasis on civics.                                                                                                        
                                                                                                                                
     Two-thirds  of likely  voters think  civics in  schools                                                                    
     should  be  emphasized  more, with  Republican  primary                                                                    
     voters (64  percent) and parents (59  percent). Similar                                                                    
     numbers across  these three groups  see civics  as more                                                                    
     important  now  than  it was  five  years  ago  (likely                                                                    
     voters,  69  percent;  Republican  primary  voters,  66                                                                    
     percent; and K12  parents, 66  percent). And early two-                                                                    
     thirds  of  likely  voters (65  percent)  support  more                                                                    
     funding  to ensure  every  child  receives an  adequate                                                                    
     civic  education,  as  do   59  percent  of  Republican                                                                    
     primary voters and 64 percent of K12 parents.                                                                              
                                                                                                                                
     However,  civics has  been neglected  over the  past 50                                                                    
     years,  coinciding with  the  troubling  trends that  I                                                                    
     outline in  the beginning of my  testimony, we estimate                                                                    
     that the  federal government invests in  civics at less                                                                    
     than  fifty  cents  per K-12  student  versus  $50  per                                                                    
     student in STEM subjects.                                                                                                  
                                                                                                                                
     This comes on the heels  of two decades of retrenchment                                                                    
     in  social  studies  education   since  No  Child  Left                                                                    
     Behind.  The Council  of  Chief  State School  Officers                                                                    
     estimates that 44 percent of  school districts have cut                                                                    
     back on  instructional time for  social studies  over a                                                                    
     20-year period.  Alaska is  one of  only 3  states that                                                                    
     lack  a  State  Social  Studies  Coordinator  position,                                                                    
     which is the  only person in a  Department of Education                                                                    
     who focuses on supporting districts in social studies.                                                                     
                                                                                                                                
     I'm  here representing  a coalition,  CivXNow, that  is                                                                    
     285  organizations  strong  and representative  of  the                                                                    
     country's political and geographic diversity.                                                                              
     Our coalition facilitates:                                                                                                 
                                                                                                                                
          • Aggregation of research  and measurement to make                                                                    
          the   empirical  case   for  high   quality  civic                                                                    
          learning opportunities  across the  curriculum and                                                                    
          throughout students' K-12 experience                                                                                  
          • Narrative change to position civic learning as                                                                      
          fundamental to our nation's democratic strength                                                                       
          • And policy and advocacy to push for adoption of                                                                     
          state and federal policies that incentivize                                                                           
          schools' civic mission.                                                                                               
                                                                                                                                
     CivXNow  established a  state  policy  task force  with                                                                    
     membership from  40 states (Alaska is  not among them).                                                                    
     Our  coalition  seeks  to support  local  stakeholders,                                                                    
     establish  relationships  with   state  policy  makers,                                                                    
     identify and activate behind policies to strengthen K-                                                                     
     12  civic education,  and ultimately,  to ensure  their                                                                    
     implementation.                                                                                                            
                                                                                                                                
     We articulate 8 main  policy recommendations to states,                                                                    
     they include:                                                                                                              
                                                                                                                                
          1.   Universal   access  to   high-quality   civic                                                                    
          learning  experiences, this  includes (stand-alone                                                                    
          civics  courses  in  middle and  high  school  and                                                                    
          designated instructional time in K-5)                                                                                 
          2. Civics centered in state standards                                                                                 
          3.  Assessment  and   accountability  (such  civic                                                                    
          seals   and  K-12   civic   learning  plans   from                                                                    
          districts)                                                                                                            
          4.  Pre-   and  in-service   teacher  professional                                                                    
          development                                                                                                           
          5. Schoolwide  and community commitments  to civic                                                                    
          learning,  such as  commissions  such  as the  one                                                                    
          this bill proposes.                                                                                                   
          6. Resourcing policy implementation                                                                                   
          We  conducted a  50 state  policy scan  with these                                                                    
          provisions in mind and found:                                                                                         
               •  37 states  and  DC require  a high  school                                                                    
               civics  course, but  only  seven  for a  full                                                                    
               year. (Alaska is not among them).                                                                                
               • Turning to middle  school, the situation is                                                                    
               bleaker  with only  seven states  requiring a                                                                    
               stand-alone civics  course. Twenty-six states                                                                    
               and  DC,  not  including Alaska,  do  require                                                                    
               civics instruction.                                                                                              
               •  Civics   is  officially  assessed   in  32                                                                    
               states,  passage of  the U.S.  Naturalization                                                                    
               Test the  most frequent vehicle  (Alaska does                                                                    
               not require a civics assessment).                                                                                
               • Finally, 24 states  and DC provide students                                                                    
               with credit  for completing  service learning                                                                    
               projects   (While   Alaska  doesn't   provide                                                                    
               credit  for service  learning, districts  may                                                                    
               do so).                                                                                                          
                                                                                                                                
     Senate  bill 29,  sponsored  by  Senator Stevens,  will                                                                    
     create   a  permanent   Alaska  Commission   on  Civics                                                                    
     Education,   composed   of   leaders   in   our   state                                                                    
     government,   teachers   and   students,   serving   to                                                                    
     periodically  forward  recommendations   to  our  state                                                                    
     Board of  Education and Early  Development. Commissions                                                                    
     like these  have been  formed in  other states  such as                                                                    
     Indiana  and   Georgia.  The  bill  will   also  create                                                                    
     required course time and a  civics test for high school                                                                    
     graduation.                                                                                                                
                                                                                                                                
     The restoration  and reinvigoration of  civic education                                                                    
     in  Alaska   will  be  a  long,   yet  worthy  process.                                                                    
     Commitments  from   educators,  administrators,  policy                                                                    
     makers, and other stakeholders will  have to be made to                                                                    
     uphold the desire to revamp  civic education. I have an                                                                    
     optimism about  the state of civic  education in Alaska                                                                    
     in that  the new Commission  will develop a  plan based                                                                    
     on  proven practices  in civic  education.  It will  be                                                                    
     critical   for  the   Commission  to   internalize  all                                                                    
     research   on  civic   education  and   act  upon   its                                                                    
     recommendations.  It  will  also be  critical  for  the                                                                    
     Commission   to  support   educators  with   resources,                                                                    
     training, and clear guidance  so that implementation is                                                                    
     successful.                                                                                                                
                                                                                                                                
     At a time  when our civic health is  badly bruised, and                                                                    
     our  political  discourse  seems  more  polarized  than                                                                    
     ever, the  prospects for knitting together  our fraying                                                                    
     democracy may  well rest on what  happens in classrooms                                                                    
     across this great state and in this legislature.                                                                           
                                                                                                                                
     Across  the country,  parents and  educators want  kids                                                                    
     to: gain  the knowledge  and concrete skills  that come                                                                    
     from   high-quality   civic    education;   learn   the                                                                    
     essentials   of  government,   specifically  the   U.S.                                                                    
     Constitution  and its  intellectual underpinnings,  the                                                                    
     three  branches  of  government,  and  federalism;  and                                                                    
     understand   the   rights   and   responsibilities   of                                                                    
     citizens.                                                                                                                  
                                                                                                                                
     You may  have heard during  the first hearing on  SB 29                                                                    
     from the Alaska State  Social Studies Council President                                                                    
     and President-Elect  who testified  on behalf of  SB 29                                                                    
     from  their classrooms  with students  watching in  the                                                                    
     background.  They   said  that  our  path   forward  is                                                                    
     stronger state K-12 civic  education policies to ensure                                                                    
     that our  students graduate  with the  civic knowledge,                                                                    
     skills,   and   dispositions    necessary   for   self-                                                                    
     governance.  Thank   you  for  carrying   forward  this                                                                    
     important policy  to help  teachers make  that possible                                                                    
     in classrooms across the state of Alaska.                                                                                  
                                                                                                                                
9:46:46 AM                                                                                                                    
                                                                                                                                
CHRISTINE HUTCHISON, SELF, KETCHIKAN (via teleconference),                                                                      
spoke in support of the bill.                                                                                                   
                                                                                                                                
                                                                                                                                
9:49:05 AM                                                                                                                    
                                                                                                                                
Co-Chair Olson wondered whether she was an educator.                                                                            
                                                                                                                                
Ms. Hutchison replied that she did not teach in Alaska, but                                                                     
taught in Montana.                                                                                                              
                                                                                                                                
9:49:42 AM                                                                                                                    
                                                                                                                                
ANTONIA LEONARD, SELF, EAGLE RIVER (via teleconference),                                                                        
testified in support of the bill.                                                                                               
                                                                                                                                
Senator Stevens stressed that the bill did not lean toward                                                                      
a political party.                                                                                                              
                                                                                                                                
9:52:34 AM                                                                                                                    
                                                                                                                                
Mr. Lamkin explained the Sectional Analysis (copy on file):                                                                     
                                                                                                                                
          Sec. 1: AS 14.03.076,  relating to public schools,                                                                    
          adds a new section                                                                                                    
          a.  directing the  State  Board  of Education  and                                                                    
          Early  Development  (SBOE) to  develop  curriculum                                                                    
          and  a  related  assessment based  on  the  civics                                                                    
          portion   of    the   naturalization   examination                                                                    
          administered  by the  U.S. Department  of Homeland                                                                    
          Security for immigrants  seeking U.S. citizenship.                                                                    
          The  curriculum and  assessment must  also include                                                                    
          systems of Alaska Tribal government;                                                                                  
          b.  requiring  students  to  complete  a  semester                                                                    
          course  taught using  the curriculum,  or to  pass                                                                    
          the assessment  established in (a) above  in order                                                                    
          to receive a high  school diploma, with exceptions                                                                    
          for students  with a disability and  who receive a                                                                    
          waiver from their local school board;                                                                                 
          c. schools are to  document on student transcripts                                                                    
          when  a student  has passed  the assessment,  with                                                                    
          the  option   for  the   student  to   retake  the                                                                    
          assessment repeatedly;                                                                                                
          d.  a  passing  score   is  defined  as  correctly                                                                    
          answering  70  percent  or   more  on  the  civics                                                                    
          assessment.                                                                                                           
     Sec. 2: AS 14.07.168, relating to existing reporting                                                                       
     requirements of the SBOE, to include in their annual                                                                       
     report to the legislature:                                                                                                 
          (5) the recommendations made  by the Alaska Civics                                                                    
          Education   Commission    established   under   AS                                                                    
          14.07.215 (described below).                                                                                          
     Sec.  3: Applies  to  Sec. 22,  Chapter  40, SLA  2022,                                                                    
     wherein 14.07.168(4), relating to reporting a summary                                                                      
     and utilization of the  AK Virtual Education Consortium                                                                    
     established  in AS  14.30.800,  the required  reporting                                                                    
     being repealed  on June 30,  2034. This section  is for                                                                    
     legal drafting purposes  only and has no  bearing on SB
     29 itself.                                                                                                                 
     Sec.  4  AS  14.07.200  is  created,  establishing  the                                                                    
     Alaska Civics  Education Commission (ACEC)  and staffed                                                                    
     by  the   Department  of  Early  Education   and  Early                                                                    
     Development.                                                                                                               
          AS 14.07.205  describes the  12-member composition                                                                    
          of Commission, including:                                                                                             
         1. the lieutenant governor as the chair;                                                                               
          2.  a retired  judicial officer  or administrative                                                                    
          person with judicial experience in Alaska;                                                                            
          3.   the  Commission   of   Education  and   Early                                                                    
          Development;                                                                                                          
          4.  two   members  of  the   AK  State   House  of                                                                    
          Representatives;                                                                                                      
          5. two members of the AK State Senate;                                                                                
          6.  five  members  appointed by  the  governor  as                                                                    
          follows:                                                                                                              
               a.  two civics  or  social studies  teachers,                                                                    
               one  of  which   teaches  via  correspondence                                                                    
               studies, and one                                                                                                 
               is  a   member  of  the   National  Education                                                                    
               Association;                                                                                                     
               b.  one  member   representing  a  non-profit                                                                    
               organization  that  has   civics  as  a  core                                                                    
               mission;                                                                                                         
               c.  one member  representing the  Association                                                                    
               of Alaska School Boards;                                                                                         
               d.  one  member  who  is a  student  in  good                                                                    
               standing.                                                                                                        
          AS  14.07.210 describes  the terms  of office  for                                                                    
          ACEC members as being for 2 years, with vacancies                                                                     
          being filled  in the same  manner as  the previous                                                                    
          appointment.                                                                                                          
          AS   14.07.215  describes   the   duties  of   the                                                                    
          Commission to include a  review of best practices,                                                                    
          pedagogies and policies  for civics education, and                                                                    
          to make recommendations and provide guidance                                                                          
          for  the  State  Board   of  Education  and  Early                                                                    
          Development in implementing civics education                                                                          
          recommendations made by the Commission.                                                                               
          AS 14.07.220 requires  at least quarterly meetings                                                                    
          of   the    Commission,   which   may    be   done                                                                    
          electronically. Legislative Council  may assist in                                                                    
          the  administration  of  ACEC  meetings,  such  as                                                                    
          providing      meeting      space,      equipment,                                                                    
          telecommunications and related resources.                                                                             
          AS  14.07.225 is  routine  reference to  voluntary                                                                    
          service,  there being  no compensation  but travel                                                                    
          expenses and  per diem may be  claimed for serving                                                                    
          on Boards and Commissions.                                                                                            
          AS    14.07.295   defines    reference   to    the                                                                    
          "Commission"  as   the  Alaska   Civics  Education                                                                    
          Commission.                                                                                                           
          Sec.  5: Acknowledges  the effective  date of  the                                                                    
          repealer (June  30, 2034)  described in  Section 3                                                                    
          of the bill.                                                                                                          
     Sec. 6: Provides an effective date for the remainder                                                                       
     of the bill of July 1, 2023.                                                                                               
                                                                                                                                
9:57:18 AM                                                                                                                    
                                                                                                                                
KELLY  MANNING, DEPUTY  DIRECTOR, INNOVATION  AND EXCELLENCE                                                                    
IN  EDUCATION, JUNEAU  (via  teleconference),  spoke to  the                                                                    
fiscal note.                                                                                                                    
                                                                                                                                
Senator Wilson  queried the  regions of  the members  of the                                                                    
commission. He wondered  whether the commission requirements                                                                    
were too excessive.                                                                                                             
                                                                                                                                
Ms.  Manning   replied  that   the  funding   would  include                                                                    
educators  from  across  the   state.  She  stated  that  an                                                                    
educator group of 20 was a standard size.                                                                                       
                                                                                                                                
10:00:53 AM                                                                                                                   
                                                                                                                                
Senator Wilson  wondered whether  the stipends were  for the                                                                    
educators.                                                                                                                      
                                                                                                                                
Ms. Manning replied in the affirmative.                                                                                         
                                                                                                                                
Senator Bishop  wondered whether  there was  a consideration                                                                    
of established curriculum.                                                                                                      
                                                                                                                                
Ms.  Manning  replied  that the  development  of  curriculum                                                                    
began with existing curriculum.                                                                                                 
                                                                                                                                
Co-Chair  Olson wondered  why the  fiscal note  was so  much                                                                    
higher  than the  fiscal note  for similar  legislation from                                                                    
the year prior.                                                                                                                 
                                                                                                                                
Ms. Manning replied  that the increase was  reflected in the                                                                    
current year for similar work on the state level.                                                                               
                                                                                                                                
Co-Chair Olson queried the  differences in cost requirements                                                                    
for programs.                                                                                                                   
                                                                                                                                
Ms.  Manning responded  that the  fiscal note  reflected the                                                                    
cost  of one  staff person.  She stressed  that she  was not                                                                    
involved heavily in the Alaska Reads Act.                                                                                       
                                                                                                                                
Senator  Wilson wondered  whether the  coordinator could  be                                                                    
the facilitator.                                                                                                                
                                                                                                                                
Senator  Stevens replied  that he  felt that  the department                                                                    
was attempting to kill the bill with the high costs.                                                                            
                                                                                                                                
Senator Wilson recalled that similar  commissions had used a                                                                    
coordinator  and wondered  why they  could not  also be  the                                                                    
facilitator.                                                                                                                    
                                                                                                                                
Ms.  Manning replied  that the  department would  follow the                                                                    
recommendations of the legislature.                                                                                             
                                                                                                                                
10:11:18 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  felt  that  the  fiscal  notes  could  be                                                                    
adjusted in the end.                                                                                                            
                                                                                                                                
Mr. Lamkin  explained that  the bill  was modeled  after two                                                                    
states that included similarly structured commissions.                                                                          
                                                                                                                                
Senator Merrick  looked at  page 4, lines  1 through  3. She                                                                    
asked about  how the requirement  would be filled  without a                                                                    
recognized minority.                                                                                                            
                                                                                                                                
Senator Stevens  replied that  it was  a good  question, and                                                                    
stated that he would examine that issue in the bill.                                                                            
                                                                                                                                
Co-Chair Olson CLOSED public testimony.                                                                                         
                                                                                                                                
Senator Stevens encouraged the committee to take the exam.                                                                      
                                                                                                                                
SB 29 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 98                                                                                                            
                                                                                                                                
     "An  Act  relating  to   the  power  cost  equalization                                                                    
     endowment fund;  and relating  to the  Alaska Permanent                                                                    
     Fund Corporation."                                                                                                         
                                                                                                                                
10:17:08 AM                                                                                                                   
                                                                                                                                
KEN  ALPER,  STAFF,  SENATOR   DONNY  OLSON,  discussed  the                                                                    
presentation, "Senate  Bill 98 Power Cost  Equalization Fund                                                                    
Management"  (copy on  file). He  discussed  slide 2,  "What                                                                    
Does SB98 Do?"                                                                                                                  
                                                                                                                                
     The Power  Cost Equalization  Endowment Fund  has about                                                                    
     $1 billion  Currently, it is managed  by the Department                                                                    
     of  Revenue  SB98  would  transfer  management  to  the                                                                    
     Alaska Permanent Fund Corporation                                                                                          
                                                                                                                                
          •The APFC would manage the money alongside their                                                                      
          own assets.                                                                                                           
          •The PCE would be exactly as diversified as the                                                                       
          Permanent Fund                                                                                                        
          •(This is what they currently do for the Mental                                                                       
          Health Trust fund)                                                                                                    
          •Regular reporting to the legislature regarding                                                                       
          asset value and income                                                                                                
                                                                                                                                
Mr. Alper addressed slide 3, "Why change it?                                                                                    
                                                                                                                                
     • More  diversity: the Dept. of  Revenue's managers can                                                                    
     only invest  in stocks and  bonds, and not  the various                                                                    
    alternative investments used by the Permanent Fund                                                                          
                                                                                                                                
     •  More  stability:  the  PCE   fund  has  changed  its                                                                    
     earnings  goals  and  investment  allocation  at  least                                                                    
     three times in the last four years.                                                                                        
          o Fund lost close to $200 million in FY2022 (                                                                         
                                                                                                                                
     • Less liquidity:  managers moved much of  the fund out                                                                    
     of equities  in early FY2021 expecting  there would not                                                                    
     be a "reverse sweep" at the end of that year, and                                                                          
     missed big market gains.                                                                                                   
          o PCE fund made 14 percent in FY21, while the                                                                         
          Permanent Fund made 29 percent. That premature                                                                        
          liquidation may have cost the fund $150 million.                                                                      
          o Courts later determined fund wasn't sweepable.                                                                      
                                                                                                                                
10:21:26 AM                                                                                                                   
                                                                                                                                
Co-Chair Olson  wondered whether  there was  history related                                                                    
to the issue of liquidation of funds.                                                                                           
                                                                                                                                
Mr. Alper replied that he could not recall.                                                                                     
                                                                                                                                
Co-Chair  Olson  wondered how  the  bill  would rectify  the                                                                    
large losses.                                                                                                                   
                                                                                                                                
Mr. Alper replied  that the fund had a number  of assets. He                                                                    
stated  that  the  bill  would  allow  for  the  Power  Cost                                                                    
Equalization  Fund (PCE)  to have  similar diversity  to the                                                                    
Permanent Fund.                                                                                                                 
                                                                                                                                
Co-Chair Olson OPENED public testimony.                                                                                         
                                                                                                                                
10:23:28 AM                                                                                                                   
                                                                                                                                
HERMAN MORGAN,  SELF, ANIAK, spoke  to the  civics education                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair Olson asked what bill Mr. Morgan was referencing.                                                                      
                                                                                                                                
Mr. Morgan explained  that that he was supposed  to speak on                                                                    
the civics education bill.                                                                                                      
                                                                                                                                
Co-Chair Olson stated that he could not speak on that bill.                                                                     
                                                                                                                                
10:25:15 AM                                                                                                                   
                                                                                                                                
Mr. Morgan argued  that the staff person did not  put him in                                                                    
for the correct bill.                                                                                                           
                                                                                                                                
Co-Chair Olson urged Mr. Morgan to speak to the bill.                                                                           
                                                                                                                                
Mr. Morgan discussed  PCE, and remarked that  PCE was needed                                                                    
in the state.                                                                                                                   
                                                                                                                                
10:27:32 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:27:56 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:28:07 AM                                                                                                                   
                                                                                                                                
Mr. Alper pointed to slide 4, "How would it change the PCE                                                                      
fund and program?"                                                                                                              
                                                                                                                                
     It wouldn't.                                                                                                               
     • The same  5 percent of fund value  would be available                                                                    
    each year to fund the programs described in statute                                                                         
    • The same "waterfall" of priority would be funded:                                                                         
          1. The PCE program itself                                                                                             
          2. Costs of managing the fund                                                                                         
          3. If the previous year's earnings are more than                                                                      
          what is needed for 1 and 2, 70 percent of the                                                                         
          remaining earnings may be used for:                                                                                   
               1. Community Assistance (up to $30 million)                                                                      
               2. Renewable Energy Grant Fund, Bulk Fuel                                                                        
               Revolving Loan Fund, or Rural Power system                                                                       
               upgrades                                                                                                         
                                                                                                                                
Mr. Alper addressed slide 5, "Sectional Analysis":                                                                              
                                                                                                                                
     Sec. 1.                                                                                                                    
     Adds a new  section to the Permanent  Fund statutes, AS                                                                    
     37.13.  The Alaska  Permanent  Fund  Corporation is  to                                                                    
     manage the  Power Cost  Equalization Fund,  and publish                                                                    
     and  distribute  various  reports. Clarifies  that  PCE                                                                    
     earnings  shall be  kept separate  from Permanent  Fund                                                                    
     earnings and not used in the POMV calculation.                                                                             
                                                                                                                                
     Sec. 2                                                                                                                     
     Moves the PCE  fund from a separate fund  of the Alaska                                                                    
     Energy Authority  to a separate  fund of  the Permanent                                                                    
     Fund Corporation.                                                                                                          
                                                                                                                                
     Sec. 3                                                                                                                     
     Changes the PCE statute so  that the fund is managed by                                                                    
     the  Corporation   rather  than  the   Commissioner  of                                                                    
     Revenue.   Adopts  the   Permanent  Fund's   investment                                                                    
     guidelines  in place  of the  current Prudent  Investor                                                                    
     Rule.                                                                                                                      
                                                                                                                                
     Sec. 4                                                                                                                     
     Conforming language so that the 5 percent of fund                                                                          
     value is determined by the Corporation rather than the                                                                     
     Department.                                                                                                                
                                                                                                                                
     Sec. 5                                                                                                                     
     Adds a definition to clarify that "corporation" in                                                                         
     this bill means the Alaska Permanent Fund Corporation.                                                                     
                                                                                                                                
10:30:53 AM                                                                                                                   
                                                                                                                                
Senator Kiehl asked about whether the Permanent Fund wanted                                                                     
to add the PCE fund to their portfolio.                                                                                         
                                                                                                                                
Mr. Alper replied that the Permanent Fund was "more or less                                                                     
comfortable" with it.                                                                                                           
                                                                                                                                
Senator Kiehl asked whether there was an examination                                                                            
alternatives.                                                                                                                   
                                                                                                                                
Mr. Alper replied that he did not believe that there had                                                                        
been an examination of other funds.                                                                                             
                                                                                                                                
Co-Chair Olson CLOSED public testimony.                                                                                         
                                                                                                                                
Mr. Alper stated that there would be language suggestions                                                                       
from the Permanent Fund Corporation.                                                                                            
                                                                                                                                
Co-Chair Olson discussed housekeeping.                                                                                          
                                                                                                                                
SB 98 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:34:42 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:34 a.m.                                                                                         

Document Name Date/Time Subjects
SB 81 Sectional Analysis 03.07.23.pdf SFIN 3/14/2023 9:00:00 AM
SB 81
SB 81 Support Document -- Excerpt from 08.18.22 Leg Council Minutes.pdf SFIN 3/14/2023 9:00:00 AM
SB 81
SB029_Civics_Sectional_version U.pdf HEDC 4/26/2024 8:00:00 AM
SFIN 3/14/2023 9:00:00 AM
SB 29
SB 29 Sponsor Statement 03.04.2023.pdf HEDC 4/26/2024 8:00:00 AM
SEDC 2/22/2023 3:30:00 PM
SFIN 3/14/2023 9:00:00 AM
SB 29
SB 29 Summary-of-Changes version A to U.pdf HEDC 4/26/2024 8:00:00 AM
SFIN 3/14/2023 9:00:00 AM
SB 29
SB 29 Research What Research Says About Solutions Jan 2023.pdf HEDC 4/26/2024 8:00:00 AM
SFIN 3/14/2023 9:00:00 AM
SB 29
SB 29 Research UNH What Is Civic Education 02.04.2023.pdf HEDC 4/26/2024 8:00:00 AM
SEDC 2/22/2023 3:30:00 PM
SFIN 3/14/2023 9:00:00 AM
SB 29
SB 29 Research The-Civics-Test Feb 2023.pdf HEDC 4/26/2024 8:00:00 AM
SFIN 3/14/2023 9:00:00 AM
SB 29
SB 29 Research The State of Civics Education 2.21.18.pdf SFIN 3/14/2023 9:00:00 AM
SB 29
SB 29 Research Sample List of Online Resources Feb 2023.pdf HEDC 4/26/2024 8:00:00 AM
SFIN 3/14/2023 9:00:00 AM
SB 29
SB 29 Research NCSL-Civic Learning Week March 2023.pdf HEDC 4/26/2024 8:00:00 AM
SFIN 3/14/2023 9:00:00 AM
SB 29
SB 29 Research Recent Polling 2.1.23.pdf HEDC 4/26/2024 8:00:00 AM
SFIN 3/14/2023 9:00:00 AM
SB 29
SB 29 Research AK Current Standards Govt and Citizenship.pdf HEDC 4/26/2024 8:00:00 AM
SFIN 3/14/2023 9:00:00 AM
SB 29
SB 81 OVR Letter in Support.pdf SFIN 3/14/2023 9:00:00 AM
SB 81
SB 81 Sponsor Statement 03.07.23.pdf SFIN 3/14/2023 9:00:00 AM
SB 81
SB 98 PCE-APFC bill initial presentation 3-14-23.pdf SFIN 3/14/2023 9:00:00 AM
SB 98
SB 98 Sectional Analysis .pdf SFIN 3/14/2023 9:00:00 AM
SB 98
SB 81 Fiscal Note LEG OVR 022323.pdf SFIN 3/14/2023 9:00:00 AM
SB 81