Legislature(2003 - 2004)
05/15/2003 08:45 AM Senate FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 15, 2003
8:45 AM
TAPES
SFC-03 # 99, Side A
SFC 03 # 99, Side B
SFC 03 # 100, Side A
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 8:45 AM.
PRESENT
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Robin Taylor
Senator Donny Olson
Senator Ben Stevens
Senator Lyman Hoffman
Also Attending: REPRESENTATIVE MIKE CHENAULT; ERNESTA BALLARD,
Commissioner, Department of Environmental Conservation; TOM BOUTIN,
Deputy Commissioner, Department of Revenue; LAURA GLAISER,
Director, Division of Elections, Office of the Lieutenant Governor;
SARAH FELIX, Assistant Attorney General, Governmental Affairs
Section, Civil Division, Department of Law; KEVIN SWEENEY, Special
Assistant, Office of the Commissioner, Department of Education and
Early Development; EDDY JEANS, School Finance Manager, School
Finance and Facilities Section, Education Support Services,
Department of Education and Early Development; JOYCE KITKA,
Volunteer, Alaska Association for Community Education; JEANNE FOY,
Teacher, Alyeska Central School, representing the Alyeska Central
School Teachers Association; CECILIA MILLER, Alyeska Central School
Education Association; RYNNIEVA MOSS, Staff to Representative John
Coghill, Jr.; JESSE VANDERZANDEN, Executive Director, Alaska
Outdoor Council; DAVID MARQUEZ, Assistant Attorney General, Office
of the Attorney General, Department of Law;
Attending via Teleconference: From Kenai: ROGER SHANNON; From
Barrow: MIKE JEFFERY; From Fairbanks: JULIE WILD-CURRY, Alaska
Association for Community Education; BYRON HALEY, President,
Chitina Dipnetters Association; PAUL HOLLAND, Board Member, Chitina
Dipnetters Association; MARK HEM, Owner, Chitina One-Stop grocery
store, Hem Charters guided dip net fishing, a café, and private
property in the Chitina area, and Vice President, Chitina
Dipnetters Association; From an off net location: ED SNIFFEN,
Assistant Attorney General, Fair Business Practices Section, Civil
Division, Department of Law;
SUMMARY INFORMATION
HB 61-OIL & GAS TAX CREDIT FOR EXPLORATION/DEV
The Committee heard from the sponsor. An amendment was withdrawn
and the bill moved from Committee.
SB 215-SEAFOOD AND FOOD SAFETY LABORATORY
The Committee heard from the Department of Environmental
Conservation and the Department of Revenue. The bill moved from
Committee.
HB 266-ELECTIONS & VOTER REGISTRATION
The Committee heard from the Division of Elections and the
Department of Law. The bill moved from Committee.
HB 165-REPEAL COMMUNITY SCHOOLS GRANT PROGRAM
The Committee heard from the Department of Education and Early
Development, school districts and community school supporters. The
bill was held in Committee.
HB 171-REPEAL CHARTER SCHOOL GRANTS
The Committee heard from the Department of Education and Early
Development and a member of the public. The bill moved from
Committee.
HB 174- CORRESPONDENCE STUDY/SCHOOL BD DUTIES
The Committee heard from the Department of Education and Early
Development and representatives from the Alyeska Central School.
The bill moved from Committee.
HB 210-CHITINA DIP NET FISHERY
The Committee heard from the sponsor and representatives from user
groups. The bill moved from Committee.
HB 225-MONOPOLY AND RESTRAINT OF TRADE ACTIONS
The Committee heard from the Department of Law and the bill moved
from Committee.
HB 154-UNDER SCHOOL AGE STUDENTS
The Committee heard from the Department of Education and Early
Development and the bill reported from Committee.
SENATE CS FOR CS FOR HOUSE BILL NO. 61(RES)
"An Act establishing an exploration and development incentive
tax credit for operators and working interest owners directly
engaged in the exploration for and development of gas for sale
and delivery without reference to volume from a lease or
property in the state; and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee. At adjournment of the previous hearing a motion to adopt
Amendment #1 was on the table.
Co-Chair Wilken reminded that this bill "allows a tax credit equal
to ten-percent of qualified capital investment as well as labor,
seismic and associated costs related to gas exploration and
development."
Amendment #1: This amendment inserts, "east of meridian 156
degrees" into Section 1, Sec. 43.20.043. Gas exploration and
development tax credit. The amended language on page 3, lines 10
through 14 reads as follows.
(f) A taxpayer is not entitled to a credit under this
section for expenditures that are made or incurred for the
qualified capital investment or for qualified services made
for exploration and development of gas that occur in the area
of Alaska lying north of 68 degrees North latitude and east of
meridian 156 degrees or that are made or incurred to transport
gas from reserves located in the area of Alaska lying north of
68 degrees North latitude and east of meridian 156 degrees.
Senator Olson WITHDREW his motion to adopt the amendment without
objection.
REPRESENTATIVE MIKE CHENAULT, sponsor of the bill, clarified for
Senator Taylor's benefit that the Senate Resources committee
substitute is the preferred version.
Senator Olson commented that he withdrew his motion to adopt
Amendment #1 because the portion of his district that was excluded
in this legislation was addressed in SB 185. He requested the
Committee extend consideration to Western Alaska when debating
future similar legislation.
Senator Taylor offered a motion to report the bill from Committee
with individual recommendations and accompanying fiscal notes.
Without objection SCS CS HB 61 (RES) MOVED from Committee with
accompanying zero fiscal notes: #1 from the Department of Natural
Resources and #2 from the Department of Revenue.
CS FOR SENATE BILL NO. 215(STA)
"An Act relating to a lease-purchase agreement for, the
construction and equipping of, and the financing of a seafood
and food safety laboratory facility to be operated by the
Department of Environmental Conservation, including the
issuance of certificates of participation, and the use of
certain investment income for certain construction and
equipping costs; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this bill, sponsored by the Senate
Rules Committee at the request of the Governor "authorizes the sale
of $14,145,000 in certificates of participation for the financing
of construction of a new seafood and food safety lab for the
Department of Environmental Conservation."
ERNESTA BALLARD, Commissioner, Department of Environmental
Conservation, read testimony into the record as follows.
Thank you for the opportunity to testify today. SB 215
provides the funding mechanism for a new Seafood and Food
Safety Laboratory. This expense has been included in the
capital budget.
As Commissioner of the department responsible for protecting
the environment and human health, I can testify to the
importance of this lab. In our seafood and food safety lab we
analyze raw, finished and value-added food products for
bacteria, chemicals, and toxic contaminants. We maintain
capabilities and FDA certifications that private labs cannot.
We operate on schedules that are not available from private
labs and can assume the greater liability needed to perform
analysis for paralytic shellfish poisoning. We cooperate with
emerging industry, such as the growing dive fisheries to be
sure time-critical water and raw product analysis is available
and market commitments are met. We are qualified to train and
certify private labs so that they can operate in established
and high-demand testing markets.
DEC has leased a facility in Palmer for 34 years. This
facility will not be available after 2006. It is overcrowded
and not fully compliant with safety codes and laboratory
design standards. It was originally placed in Palmer when the
principal lab business was agriculture and dairy. The emerging
value added seafood industries in coastal Alaska have added
significant and time-sensitive testing demands for our
service. Our proposed new lab will be in Anchorage where
valuable hours can be saved between sample collection and
testing for raw and live seafood products.
Our laboratory functions are essential to protect the health
of all Alaskans. The Governor, past legislatures, and the
Commissioners of Revenue, Department of Transportation and
Public Facilities and DEC have reviewed the design
specifications, equipment requirements and expense of this
lab. We considered alternative locations and financing
mechanisms for a modern facility sized and equipped for long
term service to the state. Specifically, we carefully
considered the possibility of locating in remodeled space at
the ASI facility in Anchorage. Our requirements would occupy
approximately 5% of that space.
The process of acquiring a new seafood and food safety lab
began seven years ago with a feasibility study. We received an
appropriation of $150,000, to obtain an independent evaluation
of both build and lease options. This analysis showed that the
most economical choice is a state owned laboratory financed
with lease/purchase bonds known as Certificates of
Participation. The legislature agreed and in 2001 appropriated
$1,300,000 to design this facility. This is a conservative and
cost conscious proposal. The building contains only laboratory
and lab support space: meeting and classroom facilities will
be available in the adjacent public health lab. The building
materials were selected for low and simple maintenance. The
design and materials are similar to the public health lab that
was built several years ago on schedule and within budget.
We are reviewing the fees the laboratory charges for services
and are comparing them to other states' fees. It is clear we
can, and should charge more. We will begin drafting the
necessary regulations this summer.
Senator Taylor spoke to earlier concerns he had about the need for
a similar laboratory located in Southeastern Alaska, specifically
to support the dive fisheries and seafood and mariculture
industries. He supported this proposal and applauded the efforts of
the commissioner.
Senator Taylor offered a motion to report the bill from Committee
with individual recommendations and accompanying fiscal notes.
Co-Chair Wilken objected for the purpose of a question.
Co-Chair Wilken asked the location of the proposed laboratory.
Commissioner Ballard replied it would be located next to the
recently constructed public health laboratory, which has adequate
meeting, training and other common spaces. She stated the proposed
facility would occupy the "minimal footprint" necessary to perform
laboratory functions, as other functions could be conducted in the
public health laboratory facility.
TOM BOUTIN, Deputy Commissioner, Department of Revenue, testified
that the State has utilized this lease financing mechanism many
times in the past and is a "well understood credit".
Co-Chair Wilken removed his objection and SB 215 (STA) MOVED from
Committee with zero fiscal note #2 from the Department of
Environmental Conservation and fiscal note #3 for $200,000 from the
Department of Revenue.
CS FOR HOUSE BILL NO. 266(FIN)
"An Act relating to questioned ballots and questioned voters,
voter registration, training of election officials,
preparation of election materials, provision of election
materials, forms, and supplies for polling places, voter
identification, absentee voting, and counting ballots; and
providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated this bill, sponsored by the House Rules
Committee at the request of the Governor, "makes necessary
statutory changes to comply with the election reform law signed by
President Bush in 2002, named the Help America Vote Act, commonly
known as HAVA."
LAURA GLAISER, Director, Division of Elections, Office of the
Lieutenant Governor, read the sponsor statement into the record as
follows.
In October 2002, President Bush signed the "Help America Vote
Act", (H.R. 3295) into law (P.L. 107-252). HAVA is the result
of a bipartisan effort in Congress to make sweeping changes to
federal election laws to improve the overall administration of
elections, increase accessibility to those with disabilities,
and also to prevent voter fraud.
Many changes required under HAVA do not require amending
Alaska statute, but HB 266 includes those necessary to meet
federal mandates. Changes recommended in the bill before you
follow the intent of the federal law and do not place
unnecessary burdens on the voter. It is imperative that these
changes mandated by federal law are passed by the Legislature
this year.
HB 266 also includes changes the Division recommends. The
Division supports the language recommended in Senator
Lincoln's SB 24, and it has been included in this bill with
her permission. Other changes regarding returning
identification/ voter cards to other jurisdictions, reference
to a "master list", and adding types of information that can
be provided by the voter when registering in person are
requested by the Division in this bill.
The House State Affairs Committee removed the language
suggested by the Division changing the term "questioned
ballots" to "provisional ballots." The federal law refers to
"provisional voting", (which Alaskans refer to as "questioned
voting") and the Division originally recommended changing the
references in statute to conform to the federal language.
The State Affairs Committee also restored references to the
Division sending voters letters regarding the status of their
absentee, questioned, or partially counted ballot in addition
to the "free access system" required in HAVA.
The House Finance Committee substitute removes perhaps the
most significant change NOT mandated be the federal act. In
the first two versions of the bill the Division recommended
replacing the terms "non partisan" and "undeclared" with the
term "unaffiliated". As a result, there will be no changes to
the current references to "non partisan" and "undeclared".
The Division of Elections asks your support of House Bill 266.
Senator Bunde spoke to concerns about dual registration and lack of
a photograph on voter identification cards. He shared he has
reviewed voter lists and found voters registered using a post
office box as indication of residency. He opined that enforcement
has been "lax" in ensuring that people vote in the districts they
reside. He asserted that the proof of residency required to
register to vote, including hunting and fishing licenses, a utility
bill, bank statement, or government document, could be "stolen from
a mailbox" and do not have a photograph of the addressee. He
suggested that photo identification is becoming more necessary for
air travel, and should therefore be more commonly held by residents
and would be a reasonable requirement for registering to vote.
Ms. Glaiser noted this legislation does not relate to the act of
registering to vote but rather to actual voting. She commented that
voter registration cards do not include photo identification.
Senator Bunde remarked that photo identification should be required
for voting.
SARAH FELIX, Assistant Attorney General, Governmental Affairs
Section, Civil Division, Department of Law, interjected that photo
identification is not required by HAVA and would be a policy call
of the Legislature.
Senator Taylor offered a motion to report the bill from Committee
with individual recommendations and accompanying fiscal note.
Senator Taylor then objected to the motion for discussion purposes.
Senator Taylor commended on the hard work of the Division staff and
director, given the limited funds available. He commented that the
intent of this legislation is to comply with federal mandate,
although he agreed with Senator Bunde that a "tighter system" is
needed.
Senator Olson asked about provisions for rural voters who do not
posses official photo identification.
Ms. Glaiser told of the provision inserted in the bill allowing for
special absentee ballots for voters who reside a distance from the
polling place. She stated this was done at the request of Senator
Georgianna Lincoln.
Senator Bunde talked about an incident involving a ballot possibly
cast in the name of a deceased person. He asked what proof of
identity is required before an absentee ballot is mailed to a
voter.
Ms. Glaiser replied that applicants must submit a copy of photo
identification.
Senator Bunde asked about efforts to purge improperly registered
voters.
Ms. Glaiser replied that this issue would be addressed during the
Legislative interim. She noted statutory changes could be required,
as the current purge system is based on the Motor Voter Act enacted
ten years prior. She relayed she has discussed the matter with the
US Department of Justice.
Senator Bunde asked if legislation would be necessary to allow for
the comparison of voter registration residences with permanent fund
dividend applications.
Ms. Glaiser assured the legislation before the Committee would
allow such comparisons.
Senator Olson commented that he does not require photo
identification when transporting paying passengers through his air
taxi service.
Senator Taylor removed his objection to the motion to report the
bill from Committee.
Co-Chair Wilken referenced the third paragraph of the April 11,
2003 letter from Governor Murkowski [copy on file] introducing this
legislation, which reads as follows.
…Upon certification of compliance with the HAVA, each state is
eligible to receive various payments from the federal
government to use in implementing the requirements of the
HAVA. Alaska is projected to receive payments of approximately
$5,000,000 per year for three years to implement the HAVA.
Co-Chair Wilken thanked Ms. Glaiser for her efforts to secure these
federal funds.
There was no objection and CS HB 266 (FIN) MOVED from Committee
with a zero fiscal note #2 from the Department of Administration
and a $382,000 fiscal note #3 from the Office of the Governor,
Division of Elections.
AT EASE 9:09 AM / 9:09 AM
CS FOR HOUSE BILL NO. 165(HES)(efd fld)
"An Act relating to community schools."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken explained this bill, sponsored by the House Rules
Committee at the request of the Governor, "eliminates the community
schools grant program. The $500,000 for this program has been
deleted in both the House and Senate operating budgets. In
addition, HB 165 places in the uncodified law, a findings and
intent section regarding community schools."
KEVIN SWEENEY, Special Assistant, Office of the Commissioner,
Department of Education and Early Development testified that this
bill addresses the statutes relating to the community schools grant
program. This grant program, he stated, began in 1975 and its
purpose was to provide financial support to encourage and assist
local school districts in the establishment of community schools.
He emphasized the intent was to provide start-up funds. He
expressed that the grant program has been "extremely successful"
and that to date, the State has granted over $30 million to local
school districts to assist in establishing community schools.
Today, he noted 53 school districts operate community schools and
added that the funds appropriated for community schools have helped
the districts "grow their entire community education programs" to
include activities such as "before and after child care" remedial
programs for students and adult education.
Mr. Sweeney stressed that the Administration is "by no means
suggesting that we want to close and end the community schools
program." He expressed the program provides "a very good service to
students and adults alike," which should continue. However, he
remarked that the Administration is reducing State spending and
this program was identified as "a very reasonable cut" because
start-up funds have been provided for 28 years.
Mr. Sweeney informed that if fully funded, the program would cost
the State approximately $3.3 million annually, although the program
has not been fully funded since the middle 1980s and instead has
been appropriated between $400,000 and $800,000. Currently, he
furthered, the program is not funded at all and the Administration
does not anticipate funding available for the coming years.
Therefore, he remarked this legislation removes the grant program
from statute.
Mr. Sweeney assured this bill does not prevent local school
districts from operating community schools. He asserted that the
grant funds comprise a small percentage of the funds raised by
local school districts for community schools activities. He spoke
to the $2 million community services component of the Anchorage
School District budget, of which the State provides $150,000. By
removing the State's portion, he predicted the local districts
could offset shortfalls with increased user fees, "help from the
community", or other grants.
Senator Taylor offered a motion to report the bill from Committee
with individual recommendations and accompanying fiscal note.
Senator Taylor then objected to the motion for purposes of further
discussion.
Senator Bunde supported the continuance of the community schools
programs and asked the average tuition increase necessary to offset
the loss of State funding.
Mr. Sweeney responded that the amount would vary by community. He
exampled Anchorage and the approximately 55,000 annual participants
in community schools activities and the current revenue of $65,000
to $70,000 generated from user fees that is deposited into the
school district's general fund. He predicted if those funds were
invested into the community schools program and user fees were
increased "a little over a dollar" the $150,000 formally
appropriated by the State would be offset.
Senator Olson expressed that in rural communities, schools tend to
be the largest facility and subsequently the location for funerals
and other community activities. He asked if education funds could
be used to pay utilities expenses for these functions.
Mr. Sweeney was unsure if community schools funds are currently
used for these purposes, and pointed out the average appropriation
for smaller schools is $4,000. He pointed out this amount is less
than the amount a school district must absorb as a result of
decreased enrollment. He stated that foundation formula funds are
normally used for utility expenses, building maintenance, etc., and
he surmised are therefore contributing significantly to the
community schools expenses.
EDDY JEANS, School Finance Manager, School Finance and Facilities
Section, Education Support Services, Department of Education and
Early Development spoke a spreadsheet titled, "Alaska Department of
Education and Early Development, FY 02 Community schools
expenditures and grants, Prepared 3/12/03, Updated 4/28/03" [copy
on file]. This spreadsheet lists each school district and its
community schools expenditures, the State allocation to each
district, and the percentage of grant to expenditures for each
district. He also referenced an audit report of the Anchorage
School District FY 02 budget [copy on file], which provides a
definition of "Community Services" as follows.
COMMUNITY SERVICES - Activities provided by a school or school
district for purposes of relating to the community as a whole
or some segment of the community not directly related to
providing education for students. Specifically, it is an
additional responsibility delegated to the school district
beyond its primary function of providing education. Included
are community recreation programs, civic activities, public
libraries, public radio programs, community welfare activities
and care of children in residential day schools. Examples of
the types of expenditures to include are salaries, employee
benefits, travel, and supplies.
Mr. Jeans pointed out that AS 14.17.300(b) relating to foundation
formula funding, provides that funds in the public school account
"may be used only in aid of public schools including community
schools activities." He assured therefore that statute continues to
"support" community schools programs.
Senator Taylor withdrew his objection to the motion to report the
bill from Committee.
JOYCE KITKA, Volunteer, Alaska Association for Community Education,
read a statement into the record as follows.
…I am a volunteer with the Alaska Association for Community
Education, a volunteer organization that promotes Community
Education through out Alaska. Our membership consists of those
individuals who support life long learning. Thank you for the
opportunity to testify today about House Bill 165. I know that
each and every one of you have heard from folks concerning
this bill. Due to the change in schedule, I know we have lost
community members who wanted to testify before you and ask you
not to support HB 165.
We realize that times are tough and funding may not be
available at this time. However passing this bill will
eliminate the possibility of funding Community Education in
the future.
In front of you, you have a sheet, which outlines the history
of funding for community schools, the numbers of folks we
serve and the astounding number of volunteers that we recruit,
train and supervise.
Today's testimony is to ask why there really is a need to
eliminate the statute that says Community Schools is in
existence in Alaska today. Through this process, we have only
heard DEED argue that the intent of the Community Schools
Statute was to only [facilitate the] start of the program and
[that] all Community Schools does is provide open gyms,
although more recently we have been upgraded to providing
underwater basket weaving classes. We have counter[ed] those
statements with attorney opinions that differ with the
interpretation of the statute, provided folks with stacks of
programs, flyers, etc. that indicate that we do much more than
the previous mentioned programs.
We have been told that there are corporate sponsors out there
that can fund our programs, while other legislators swear and
laugh at these comments (by that way that has been the
response from both parties). We have been told that we need to
raise our fees, yet we have not had full funding 17 years and
are always asked to do more so we have already raised fees,
been creative in establishing partnerships throughout the
State and have exhausted a lot of our choices. We often serve
the poor, single parent families and raising fees will
eliminate those folks from our program. We have been told that
schools will pick up these programs. We chuckle, as we know
our districts are facing tremendous cost and little money to
fund them. I know my district is starting to have problems in
finding the resources to handle the wear and tear on our
facilities by community usage.
Our participants and staff are upset, and I apologize if you
have been the recipient of their frustration. Over the past
years, Community Educators have approached the Commissioner of
Education and asked how Community Education could be a part of
the team, they have had no response. Community Schools
programs across the State have never been asked about their
programs, only to have assumptions presented to the
legislature. The task of reporting about how your money is
being spent was deemed no needed by DEED. So the Alaska
Association for Community Educations has utilized its
volunteers to compile and provide you with participant numbers
and programs. They feel that they have been fiscally
responsible and are being punished for their efforts.
That last thing I want to touch on is that of respect. As
citizens of Alaska, we recognize and respect your efforts and
why we may not always agree [with] your decisions we respect
them. Unfortunately, many of our participants and staff feel
that the respect has not been shown to them. DEED and the
Governor have not thoroughly looked at the program they
proposed eliminating, thus insulating the years of hard work
and successful programs. We feel that it has been a game with
DEED staff. Last Friday evening, as I exited the House Floor
observing area, I witnessed a DEED person high-fiving another
person and exclaiming the victory as HB 165 cleared the House
Floor. It [became] apparent to me it isn't about what is good
for kids, isn't about what is best for Alaska, it's a game
about who can win. However, I can tell you, assure you, there
are no winners as programs will be [lost], students and adults
will suffer and buildings will go unused.
You have already made the choice not to fund Community
Schools. If you think the legislation is bad then let's spend
the next year working on making it better, eliminating the
program as outlined by HB 165 does nothing to making Alaska a
better place to live or to utilize an incredible amount of
resources available in Community Schools programs.
Ms. Kitka spoke to the accounting of community services revenues in
the Anchorage School Districts and warned that if State funding
were not provided, programs would be eliminated. She disagreed that
increasing user fees would offset the costs, pointing out that
rural residents would be affected disproportionately.
Senator Bunde agreed that community schools programs have the
support of many people. He asserted that increased user fees, would
secure more funding for community schools than a general tax
administered by the State and distributed to each school district.
Ms. Kitka stressed the issue is the proposal to eliminate the grant
program from statute, regardless of whether funding is provided.
She stated that if funds became available in the future, statute
should allow for appropriation to the grant program.
Senator Bunde noted appropriations to other programs have been
suspended, although the programs have not been eliminated. He
advocated "continuing in that mode" with respect to the community
schools grant program.
Co-Chair Wilken applauded the efforts of the witness on behalf of
community schools and noted the bill reflects these efforts in the
finding and intent language on page 1, lines 5 - 12, which reads as
follows.
FINDINGS AND INTENT. (a) The legislature finds that
community schools
(1) are an expression of the philosophy that the
school, as the prime educational institution of the community,
is the most responsive when it involves the people of that
community in a program designed to fulfill their educational
needs; and
(2) promote the use of school facilities through the
use of buildings and equipment beyond the normal school day.
(b) It is the intent of this Act to encourage local
school districts to maintain community schools.
JULIE WILD-CURRY, Alaska Association for Community Education,
testified via teleconference from Fairbanks, to encourage the
Committee to not eliminate the enabling statutes for the community
schools grant program. She stressed the laws supporting the
community schools program must remain. She qualified that the
community schools program in Anchorage is "strong", but pointed out
this is only one of 53 school districts funded through the grant
program. She furthered that over the past several years, school
districts have been the recipients of "twenty-first century grant
programs" that have generated $25 million to the State; however,
the schools are currently only receiving $1.75 million. She
cautioned that twenty-first century grants are contingent upon
active community school programs and emphasized the subsequent
importance that the State demonstrates support for the existence of
these programs.
ROGER SHANNON testified via teleconference from Kenai, in support
of the general accomplishments of the Legislative session.
SFC 03 # 99, Side B 09:33 AM
Mr. Shannon continued by requesting the Committee not discontinue
the existence of the community schools program, based on 18 years
of "street level" experience. He warned that reductions to
community school programs would increase social problems "on the
streets" and would require additional public safety efforts and
expenditures.
Senator Bunde voiced objection to reporting this bill from
Committee. He suggested the grant program should remain, although
funding not appropriated.
Co-Chair Wilken ordered the bill HELD in Committee. [The motion to
report the bill from Committee was subsequently TABLED.]
HOUSE BILL NO. 171 am
"An Act repealing the charter school grant program; and
providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this bill, sponsored by the House Rules
Committee, at the request of the Governor, "eliminates the charter
school grant start-up program of $500 per student beginning in July
first of 2004. HB 171 takes effect only if the State receives
federal funding for charter school start-up costs that equals or
exceeds the State funding available in FY 03."
EDDY JEANS, Manager, School Finance and Facilities Section,
Education Support Services, Department of Education and Early
Development, outlined a spreadsheet titled, "Breakdown of Alaska
Charter School Federal and State Grants" provided by the
Department. He pointed out the information showing the charter
schools that received federal grants in addition to State grants
and the total amount of start-up funding received. He exampled the
Soldotna and Chinook charter schools that also received federal and
State grants.
Mr. Jeans pointed out the effective date delay of one year in this
bill is to accommodate "the State's commitment" to fund charter
schools with appropriations included in the Governor's proposed FY
04 operating budget.
Mr. Jeans explained this legislation proposing to eliminate the
State grant program is a result of a State application to the US
Department of Education to increase the amount of federal grants to
$495,000 over a four-year period. He described the application
process and the proposal to appropriate $150,000 each year for
three years and $45,000 in the fourth year. He emphasized this
amount is larger than the any of the combined State and federal
grants received by any other Alaskan charter schools. He indicated
the Department would reapply for federal grant funds after five
years. He noted that the State Board of Education recently approved
four charter schools listed on the aforementioned handout.
Senator Hoffman asked the communities in which the new charter
schools are located that would receive the new federal grant funds.
Mr. Jeans listed Ketchikan and Mat-Su, and stated he would provide
the location of the two other charter schools.
Senator Hoffman asked if Fairbanks was included.
Co-Chair Wilken understood it was not.
Mr. Jeans indicated he would provide detailed information.
Senator Olson asked about alternatives to charter schools.
Mr. Jeans replied students have the option of attending regular
public schools or one of the statewide correspondence programs.
Larger communities, he noted, also have alternative high schools.
Senator Olson asked the cost per student compared to regular
schools.
Mr. Jeans responded that the amount depends on the number of
students enrolled in a charter school and explained that under the
current foundation formula funding statute, at least 150 students
must be enrolled to qualify as a separate school. Otherwise, he
said, the charter school is funded in conjunction with the largest
school within the same school district. He noted the Department is
in the process of evaluating whether the education is comparable to
that of regular public schools.
ROGER SHANNON testified via teleconference from Kenai to request
that charter schools be allowed to continue. He opined that the
National Education Association (NEA) has become involved in how
children are educated, which has subsequently resulted in higher
costs. He emphasized he was speaking to the Committee "from street
level" as a layperson on the subject.
Senator Taylor offered a motion to report HB 171 am from Committee
with individual recommendations and accompanying fiscal note.
There was no objection and HB 171am MOVED from Committee with zero
fiscal note #1 from the Department of Education and Early
Development.
AT EASE 9:43 AM / 9:43 AM
CS FOR HOUSE BILL NO. 174(FIN) am
"An Act relating to the state centralized correspondence study
program, to funding for educational programs that occur
primarily outside school facilities, and to the duties of
school boards of borough and city school districts and
regional educational attendance areas; and providing for an
effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated this bill, sponsored by the House Rules
Committee by request of the Governor, "repeals the summer school
funding for Alyeska Central School (ACS) beginning in the 2003-04
school year. In addition, HB 174 provides a one-year transition
period in which the functions performed by Alyeska Central School
can be assumed by another educational organization, such as a
charter school, or a school district."
EDDY JEANS, Manager, School Finance and Facilities Section,
Education Support Services, Department of Education and Early
Development testified this legislation addresses two issues: cost
savings and policy. He cited the elimination of the summer school
program would save the State $1.2 million. He listed other
potential cost savings, including over $700,000 for lease of space
in the Goldbelt Building in Juneau, occupied by the Alyeska Central
School and paid by the Department of Administration.
Mr. Jeans gave a history of the correspondence school, which was
established in 1939. At this time, he informed that municipal-
operated schools addressed education in areas organized under a
local government, and the State operated schools in unorganized
areas. He said the State continued to operate schools until 1977
and the establishment of the Regional Education Attendance Areas
(REAA). Approximately seven years ago, he continued, the Department
allowed school districts to operate statewide correspondence
programs, a decision supported by the Legislature through the
adoption of SB 36, in which the Legislature specified that funding
would be available for these efforts. He noted that currently 12
such programs, including ACS, operate in Alaska.
Mr. Jeans commented that the majority of students currently
enrolled in ACS would attend other correspondence schools upon
elimination of ACS. He shared that the Department has learned that
many of the other programs would develop or modify existing
programs to assist those families currently served by ACS. He
asserted that of the 650 students enrolled in the ACS regular
program, approximately 45 do not have daily access to a public
school in their community. He informed that this legislation would
require other correspondence programs to operate under an open
enrollment policy, noting that currently some have instituted
"artificial caps" on the number of students allowed to enroll.
Mr. Jeans next spoke to the issue of accreditation. He acquiesced
that ACS is the only accredited statewide correspondence program,
although four others have applied for accreditation and are in
"accredited candidate" status for three years. He listed these
schools as the PACE charter school in Craig, Delta-Greely Cyber
School, Raven Charter School in the Yukon-Koyukuk school district,
and the IDEA Correspondence program in Galena. While in candidate
status, he assured, any credits awarded to a student are treated as
fully accredited and must be accepted as such by a receiving
institution.
Senator Taylor asked why no comparison is made between
accreditation and competency levels. He asked why the many
accredited schools in Alaska continue to graduate about "37 percent
of our student population functionally illiterate."
Mr. Jeans understood that the accreditation process requires school
districts to meet certain standards in assigning a grade or credit
to a student, which must subsequently must be accepted by another
accredited school. He was unable to respond to the relationship to
student competency.
Senator Taylor commented that students enrolled in a correspondence
program score higher in general competency tests than those
enrolled in regular public schools.
Mr. Jeans surmised this would be better understood as the "school
level designation system" imposed at the State and federal level,
is implemented. He indicated a disparity in the number of students
participating in assessments.
Senator Taylor opined that his "life experience" indicates that
these students have a "very high level of competency" obtained in
home schools and correspondence school programs. He asserted the
issue is how funds would be better spent.
Senator Bunde attributed the higher competency to the level of
parental involvement. He stated that students of the Galena school
district passed at a higher competency rate last year than students
enrolled in the district's IDEA correspondence program. He asked if
private schools in Alaska are all accredited and through what
accreditation organization.
Mr. Jeans replied that those that are accredited are through the
Northwest Association of Schools Colleges and Universities.
Senator Bunde asked if the witness was aware of any student denied
admission to a college for lack of accreditation.
Mr. Jeans was not aware of any and noted that colleges have
alternative assessment procedures for students educated in non-
accredited institutions.
Senator Bunde stated that other than some junior colleges and the
University of Alaska, most colleges require some demonstration of
competency.
Senator Hoffman asked if the $700,000 lease expense is included in
the estimated $1.2 million savings of this legislation.
Mr. Jeans responded that the $700,000 lease expense is not included
as a savings in any fiscal note, as he was uncertain how the
Department of Administration would proceed in either terminating
the lease or locating other State programs in the space.
Senator Hoffman next indicated the fiscal note dated 4/23/03
references a savings of $4,300,000 and asked if this amount is
cumulative.
Mr. Jeans explained that the ACS operations are funded through the
foundation funding formula and because the students would be
expected to enroll elsewhere in the State school system and the
funds would be allocated to another district, the fiscal note does
not report a savings from the discontinuance of ACS operations.
Senator Hoffman suggested that if the only savings realized by this
legislation is from the elimination of the ACS summer school
program, the regular ACS school program could continue.
Mr. Jeans affirmed, but stressed that the Administration decided to
"get of out of that business and out of competition" since the
State has allowed local districts to operate statewide programs.
Senator Hoffman asserted that competition creates better services.
Mr. Jeans reiterated that 11 other statewide correspondence
programs currently exist. He stated that none of the school
districts operating these programs developed programs similar to
ACS because of existence of ACS. He shared that several districts
have indicated they would develop programs similar to ACS to
attract former ACS students.
Senator Hoffman expressed support for continuing the competition,
given that the costs would not change.
Senator Bunde noted school districts that are experiencing
decreasing enrollment and suggested those districts could attract
students residing within the district who are currently taking
correspondence.
Mr. Jeans agreed this was a "fair assumption".
Senator Hoffman pointed out this would be assuming the school
districts in question have adequate space, stressing that many
school buildings are overcrowded. He reminded this was addressed
the prior legislative session with the passage of bonds to fund new
school construction, which would not be completed for several
years. He stated that eliminating a correspondence program would
place a burden on the regular public school buildings.
MIKE JEFFERY testified via teleconference from Barrow and agreed
with Senator Hoffman and Senator Bunde's comments to the need to
continue the Alyeska program. He told of his three children
enrolled in the program, one of who would graduate this spring. He
spoke of the "track record" and the significance to families. He
stressed the ACS provides an alternative education program in
accordance with the federal "No Child Left Behind" program. He
pointed out the ACS employs qualified teachers in many fields that
many smaller schools are unable to obtain. He agreed the
discontinuance of the summer program would save money, but argued
this could be accomplished without eliminating the entire ACS
program.
JEANNE FOY, Teacher, Alyeska Central School, representing the
Alyeska Central School Teachers Association, testified in Juneau
that she has heard reference to lease payments of both $300,000 and
$700,000. She suggested an alternative location with a lower lease
cost could be investigated. She read a statement into the record as
follows.
The Administration has stated that closing the school is a
policy decision. It just doesn't want the State to run a
correspondence program anymore. The Department representatives
have also testified that the Department fully supports
competition among school districts for these statewide
distance delivery programs. Although, I would mention that the
fact that Galena has quite a large home school support
program, did not prevent the other ten or so districts from
offering their own home school support programs. But yet, for
them to offer a program like ours, we must be eliminated,
which creates an interesting definition of competition.
The yearlong extension of the committee substitute for this
bill, would give the school the ability to explore the
possibilities of becoming a charter school sponsored by a
school district. If that happens, that would fulfill the
Administration's goals of not wanting to operate Alyeska
Central School anymore and would also continue to give parents
another educational choice.
Parents have been very vocal about why they value ACS. To have
a program requires a certain economy of scale, which requires
that the school remain intact. The No Child Left Behind Act
poses a challenge to the State because small schools cannot
have teachers certified in every subject they teach. A
centralized correspondence program makes sense because then
the school has enough resources to have certified teachers for
every subject.
I therefore urge the Committee to support the committee
substitute for HB 174.
Co-Chair Wilken asked the number of students who would continue
after July 1, 2003.
Ms. Foy answered that "quite a few" students would finish their
course work later in the summer. She relayed discussions held by
the ACS parents' organization in identifying the characteristics
the charter school should have. She stated that the first priority
was a year round school, due to the importance of the flexibility
this would provide particularly to rural students. She exampled
trapping, fishing seasons and road inaccessibility as some reasons
why a standard nine-month program is unfeasible.
Senator Bunde understood the majority of ACS students reside in
urban areas. He asked the number of "truly rural" students.
Ms. Foy estimated 45 to 50 of 800 full-time students. She stressed
that a regular public school must be of a significant size to offer
the same caliber of "rigorous" courses to these rural students.
Senator B. Stevens asked the student to teacher ratio.
Ms. Foy listed 80 students per one teacher.
CECILIA MILLER, Alyeska Central School Education Association,
testified in Juneau that the teacher to student ratio is
approximately one teacher to every 60 elementary students, and one
teacher per subject for 150 to 200 students for secondary students.
She characterized the ratio at the secondary level as similar to
regular public schools.
Senator B. Stevens asked if correspondence is done over the
Internet and the occurrence of communication with every student.
Ms. Miller responded she teaches both on-line and "paper-based"
courses and that the programs are such that teachers evaluate each
student's work about every three weeks. She qualified that students
call for guidance, noting that some students require more
interaction.
Ms. Miller expressed support for the committee substitute, as an
additional year is critical to allow for the program to transition.
She stressed the importance of the program to families and listed
reasons for choosing ACS: the program is accredited; the curriculum
meets the standards established for the Alaskan graduation
competency examination; and the program is mediated by highly
qualified teachers.
Ms. Miller remarked that accreditation is important for acceptance
into a selective college. She stated that students eliminated for
lack of accreditation is not disclosed and that during the
admissions process "it is easier to get flagged out than to get
flagged in" to a selective college. She also pointed out a major
component of accreditation is to assist schools to continually
improve.
Ms. Miller shared that many parents value the choice of different
education programs. She spoke to the differences between "home
support" and correspondence programs, primarily that teachers are
involved in the correspondence programs.
Ms. Miller noted earlier claims that the ACS curriculum would be
made available to other school districts. She informed that this
was done previously, but discontinued due to legal, integrity and
educational reasons. She explained the curriculum is copywrited and
the Department is researching the legal implications. She also
emphasized the necessity to ensure that the students are actually
performing the work and that a teacher is evaluating a student's
progress. She gave an example of a test designed to be taken
without the use of a calculator and the compromise that would occur
if a student used a calculator. She then stressed the value that
parents place on the presence of a qualified teacher knowledgeable
about the curriculum.
Senator Bunde asked if ACS paid for the recent travel of parents of
ACS students to Juneau.
Ms. Miller affirmed and explained those parents are members of the
advisory committee and gather annually to assist in making policy
and program changes to better serve the students. She assured that
while testifying before the Legislature, these parents were not
compensated by ACS.
Senator Hoffman asked if the Association's preference is status
quo.
Ms. Miller responded this committee substitute represents the best
compromise.
KEVIN SWEENEY, Special Assistant, Office of the Commissioner,
Department of Education and Early Development, spoke to the reasons
behind intent to eliminate Alyeska Central School. He understood
that Alaskan voters want a "scaled down government". Although at
one time, ACS offered the only statewide correspondence education
program, he pointed out that choices in education have "grown
tremendously" in the past ten years, exampling charter schools and
the expected addition of another 20 to 25 charter schools in the
State within five years. He furthered that as well as the statewide
correspondence programs operated by some school districts others
also offer district-wide correspondence programs. Therefore, he
surmised, many options are available and that the elimination of
ACS would allow districts to "take over the education of our
children."
Mr. Sweeney corrected that the annual lease for ACS facilities is
$375,000.
Senator Hoffman asked if the Administration's position is that
Alaskans' intentions for scaled down government includes education.
Mr. Sweeney remarked that no one wants to reduce funding for
education; however, he opined that some programs could operate
without "any sever interruption to people" and ACS is one of those
programs. He disputed that the State is the only agency that could
successfully operate a statewide correspondence program. He
expressed confidence in the school districts to accomplish this.
After hearing no objection, Co-Chair Wilken ordered CS HB 174(FIN)
am MOVED from Committee with fiscal note #1: ($1,170,300) for the
Foundation Program component; and fiscal note #2: $4,339,000 for
the Alyeska Central School component. [No motion was made to report
the bill from Committee.]
CS FOR HOUSE BILL NO. 210(RES)(efd fld S)
"An Act relating to the Chitina dip net fishery."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated this bill, "eliminates the $25 fee for the
Chitina dip net fishing permit and requires State agencies to
publicize and mark the State land that provides access to the
fishery."
RYNNIEVA MOSS, Staff to Representative John Coghill, Jr., presented
the bill.
SFC 03 # 100, Side A 10:21 AM
Ms. Moss continued that this legislation addresses an equity issue,
explaining that the Chitina dip net fishery is the only fishery in
the State that assesses a fee to participants. She noted the intent
of the $25 fee was valid, as it compensated the two private
property owners upon whose land was trespassed.
Ms. Moss reminded that through the efforts of former Representative
John Davies and former Senator Pete Kelly, funds were appropriated
to survey the access to the Chitina fishery. With the completion of
the survey, she shared that it has been determined that over 60
percent of access to the river is public access on State-owned
property.
Co-Chair Wilken directed the witness to identify the areas in
question on a map she possessed [copy on file].
Senator Bunde asked if the participants would still be required to
hold a sport-fishing license.
Ms. Moss replied that licenses were not required in the past,
although the Alaska Board of Fisheries determined the fishery to be
personal use rather than subsistence, and licenses were
subsequently required.
Ms. Moss detailed the map showing a section of the Copper River and
the areas of the dip net fishery, in conjunction with the land that
is privately or publicly owned.
Ms. Moss clarified that although the fee would not be imposed, a
permit would still be necessary to participate in the fishery. She
stated this is to ensure that all who participate receive a
brochure indicating public assess. She informed that funds
remaining from the survey project would be utilized to produce the
brochure as well as a "large public sign" indicating the public
assess to the river.
Ms. Moss qualified that conflicts would continue, as occur in many
other areas of the State where people might trespass on private
land. She admitted the local residents would be impacted; however,
they should "take advantage" of the situation and undertake
economic development. She suggested boat ramps, campgrounds and
other establishments to accommodate the fishers.
Senator Taylor asked if this legislation is identical to a bill he
sponsored the previous legislative session.
Ms. Moss affirmed and reminded that the original legislation passed
the Senate but did not complete the House of Representatives'
process before adjournment.
Ms. Moss reminded the original legislation contained a provision
that would have retained the $25 fee for one year and that Co-Chair
Wilken testified, "the intent of the fishery is to have an
accessible, productive State fishery". She recalled Co-Chair Wilken
supported the collection of fees for one year with the knowledge
that an agreement would be reached between the State and the Native
corporations that owned portions of the land.
Senator Taylor asked about the issue of adverse possession. He
understood that over time "prescriptive easements" could be
acquired to allow public assess, due to the utilization of
privately owned land for several years. He spoke to other pending
legislation that would eliminate "any opportunity to gain any of
those access rights across that private land". He cautioned that
this private land would never become accessible to the public
except through a licensing fee if the other legislation passes.
Senator Hoffman asked the ownership of the land nearest the parking
area indicated on the map.
Ms. Moss responded that Chitina and Ahtna Native corporations own
most of the private land in the area.
Senator Hoffman asked if most participants in this fishery utilize
this parking area.
Ms. Moss replied that "pavilion area" is used for parking, as well
as a private campground at O'Brien Creek.
Senator Hoffman asked how the fees were utilized.
Ms. Moss detailed that $18 of the fee [likely $8] was paid to the
Native corporations to compensate for trespassing; $12 was used to
maintain portable toilets and dumpsters; and $2 remained with the
Department of Fish and Game to administer the fee program.
JESSE VANDERZANDEN, Executive Director, Alaska Outdoor Council,
testified this bill is one of the top priorities of the Council for
the current legislative session. He told of the approximately
12,000 collective membership of hunters, fishers and trappers
represented by the Council, many of whom, he stated participate in
the Chitina dip net fishery. He furthered that the Council is
comprised of approximately 50 outdoor activities-related clubs, one
being the Chitina Dipnetters Association.
Mr. VanderZanden characterized this legislation as a "well-timed
housekeeping proposal". He pointed out that the survey of the lands
around the Chitina River was completed in the Summer 2001, and
conclusively showed that at least 60 percent of the area utilized
by the dip netters is public land. In addition, he said public
corridors were identified that would allow dip netters access to
fishing sites without crossing private land. He remarked that as a
result of this recently identified public access, the initial $25
fee instituted by the Legislature in the year 2000 to secure
trespass rights across the private lands, is no longer necessary.
Mr. VanderZanden read portions of a letter from then Governor Tony
Knowles to the Chitina Native Corporation dated April 25, 2002, as
follows.
…Last summer, DOT&PF [Department of Transportation and Public
Facilities] staff completed this legislatively funded survey,
which held that at least 60 percent of the length of the
right-of-way between O'Brien Creek and Haley Creek affords
legal public access to the Copper River… The results of this
survey places the State in the awkward position of collecting
fees from a personal users in the Chitina Subsistence Fishery
to pay for access that is not needed in order to participate
in the fishery… ADF&G [Department of Fish and Game] is
considering a proposal that would repeal the access fee.
Mr. VanderZanden next read from an August 25, 2002 letter from then
Department of Natural Resources Commissioner Pat Pourchot and then
Department of Fish and Game Commissioner Frank Rue addressed to the
Ahtna Native Corporation as follows.
…The current year-to-year compensation process has been
difficult for all parties and given information from the
survey and other developments, we do not believe that the
current arrangement is sustainable… A bill seeking a repeal of
the fee passed the Senate 18 to one and would likely have
passed the House as well if it had not been so close to the
end of the session.
Mr. VanderZanden furthered that this bill addresses a
public/private lands issue that would resolve issues for both
private landowners and fishers. He pointed out that public lands
have already been posted in the Chitina corridor, specifically to
Haley Creek. He understood that adequate funds remained from the
survey project to produce and widely distribute brochures
delineating public and private lands.
Mr. VanderZanden surmised that by delineating these public lands
would reduce the impact to private lands caused by trespass, and
also allow private landowners to charge a fee for access across
their land. He noted this currently occurs in nearby fisheries
under similar circumstances. He asserted that because private and
public lands had not been identified and posted in the past,
fishers were unable to discern trespass on private land, thus
necessitating the trespass fee to allow access for all fishery
participants. He remarked that proper identification of private
land would allow landowners to prosecuting for knowing and
egregious trespass, were it to occur.
Mr. VanderZanden stated this bill would "get the Department of Fish
and Game out of the waste and trash removal business." He asserted
that the time spent on contracting for these services was valuable
and could have better been spent on managing the fishery. He
admitted this bill does not address the matter of funding these
services, however, he stressed it should be discussed in the
"regulatory arena" rather than the "statutory arena," as no other
fishery or access matter contains statutorily mandated fee.
BYRON HALEY, President, Chitina Dipnetters Association, testified
via teleconference from Fairbanks, in support of passage of the
bill. He stressed there is no need to charge one group of people to
use public lands to access the Copper River. He noted that
participants must purchase a sport-fishing license. He reiterated
earlier testimony regarding the survey's findings of 60 percent of
the land in the fishery area is publicly owned. He gave a history
of the fee, which initially was ten dollars but was raised at the
request of the affected Native Corporations.
PAUL HOLLAND, Board Member, Chitina Dipnetters Association,
testified on his own behalf via teleconference from Fairbanks in
support of the legislation. He described the seven-mile area in
which the fishery occurs, referencing the aforementioned map. He
surmised that approximately 90 percent of the dip netters access
the fishery through public land.
MARK HEM, Owner, Chitina One-Stop grocery store, Hem Charters
guided dip net fishing, a café, and private property in the Chitina
area, and Vice President, Chitina Dipnetters Association, testified
via teleconference from Fairbanks about his business operations in
the Chitna area. He shared that he has had his land surveyed and
developed to lessen trespass on his property. He stressed that if
the State continues collecting fees from a user group for potential
trespass on private property, he should receive payment as well. He
opined the fee collection sets a "bad precedent" for the State and
he urged passage of this bill.
Senator Hoffman noted a portion of the fees was expended on waste
removal and similar services. He asked as a resident of the area,
if the witness was concerned with the trash of 8,000 visitors not
being removed.
Mr. Hem was concerned but emphasized that the matter should be
addressed differently. He characterized the fee collection
primarily addresses trespass on private property.
Senator Hoffman commented that the $40,000 expense of waste removal
has not been otherwise addressed.
Ms. Moss injected that the House Finance Committee discussed the
expense of waste removal and that the co-chairs of that Committee
committed to finding a solution. She stated that waste removal is
undertaken in relation to other fisheries and that the Chitina dip
net fishery should be treated equally.
Senator Taylor clarified that the Alaska Board of Fisheries changed
the definition of the fishery from subsistence to sport and that a
sport fishing license would be required to participate.
Ms. Moss corrected the classification was changed from subsistence
to personal use.
Senator Taylor surmised that subsistence is personal use and that
if the fishery was classified as subsistence no resident of
Fairbanks could participate.
Ms. Moss was unfamiliar with the details of the Alaska Board of
Fisheries decisions.
Senator Taylor offered a motion to report the bill from Committee
with individual recommendations and accompanying fiscal notes.
Without objection CS HB 210 (RES) MOVED from Committee with zero
fiscal note #1 from the Department of Natural Resources and
($172,800) fiscal note #3 from the Department of Fish and Game.
HOUSE BILL NO. 225
"An Act relating to certain civil actions brought by the
attorney general under monopoly and restraint of trade
statutes; relating to the award of damages in actions brought
under those statutes; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Senator Taylor offered a motion to report the bill from Committee
with individual recommendations and accompanying fiscal note.
Co-Chair Wilken explained this bill sponsored by the House Rules
Committee as the request of the Governor, "updates Alaska's anti-
trust statutes in response to a recent United States Supreme Court
precedent. This legislation will allow the Attorney General to
bring an action on behalf of consumers for violation of the State's
anti-trust laws and to recover damages."
DAVID MARQUEZ, Assistant Attorney General, Office of the Attorney
General, Department of Law deferred to Mr. Sniffen.
ED SNIFFEN, Assistant Attorney General, Fair Business Practices
Section, Civil Division, Department of Law, testified via
teleconference from an off net location that this bill allows the
Attorney General to represent consumers in actions involving
indirect purchases. He referenced a flow chart distributed by the
Department of Law [copy on file, that details a situation in which
a conspiracy or other illegal anti-trust behavior might occur
between two companies resulting in an artificially inflated price
passed along through an importer, a distributor, a wholesaler, a
retailer and ultimately to consumers. He informed that in this
instance, the consumer is considered an indirect purchaser because
the product was not purchased directly from the "anti-trust wrong-
doers".
Mr. Sniffen pointed out that under current State anti-trust law,
the consumer has no ability to bring an anti-trust action in this
situation and therefore has no remedy to recover. Instead, he
stated the consumer must rely on entities "further up the chain"
i.e. importer, distributor, wholesaler or retailer, to bring
action.
Mr. Sniffen assured this matter is not a "theoretical exercise"
stressing that this occurs in Alaska at a cost of hundreds of
thousands of dollars. He told of one case involving vitamin
manufacturers conspiring to keep the cost of their products high
that was eventually settled as a result of a multi-state
litigation. He informed that States with similar anti-trust
statutes to this legislation were able to recover approximately $1
million each in fines and penalties and that states without such
statutes received nothing, although Alaska was able to negotiate
with the settlement committee to receive approximately $100,000. He
pointed out that Alaska, as a participant in this litigation, could
have collected an additional $900,000 if this legislation was in
place. He furthered that other situations exist involving women's
shoes and pharmaceuticals; however the State has not taken action
due to lack of authority.
Mr. Sniffen told of the US Supreme Court case Illinois Brick
Company versus Illinois, which established the current rules.
Senator Taylor commented it was "fascinating" that the Committee
would move a bill relating to collecting damages. He did not object
to the passage of this bill from Committee.
Without objection HB 225 MOVED from Committee with accompanying
fiscal note #1 in an indeterminate amount from the Department of
Law.
CS FOR HOUSE BILL NO. 154(FIN)
"An Act relating to advancement in public schools of children
under school age; and providing for an effective date for the
Act of July 1, 2004."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated this bill "upgrades school students,
sponsored by the [House] Rules Committee at request of the
Governor. House Bill 154 removes the school districts' ability to
offer early entry to four-year-olds as a standard practice to
access the foundation formula and provide State funds to school
programs. Currently districts can enroll four-year-olds and then
enroll them as kindergarten students in the next school year. The
result to the State is an additional per pupil funding per year
equating to approximately $3.9 million."
EDDY JEANS, School Finance Manager, School Finance and Facilities
Section, Education Support Services, Department of Education and
Early Development, clarified the intent of this legislation is not
to prohibit four-year-olds who are ready to begin their educational
career, from entering kindergarten early. Rather, he emphasized the
intent is to eliminate school districts' ability to offer two years
of kindergarten and receive State foundation funding to do so.
Mr. Jeans interpreted the statues "envisioned" a student enrolled
in the State public school system for approximately 13 years;
th
kindergarten through 12 grade. However, upon collecting student
level data from school districts, he reported that some districts
are enrolling all four-year-olds into a two-year kindergarten
program. He stated this is occurring under AS 14.03.080 Right to
Attend School., which he cited as followed.
(c) A child under school age may be admitted to the
public school in the school district in which the child is a
resident at the discretion of the governing body if the child
meets the minimum standards prescribed by the school board
evidencing that the child has a mental, physical and emotional
capacity to perform satisfactorily for the educational program
being offered.
Mr. Jeans pointed out that "the educational program being offered"
is "a pretty broad term". He assured this legislation "brings
clarity to that section of statute" by requiring that the
districts' educational program must prescribe that underage
students advance through the curriculum and grade level by the
following fiscal year. He explained that this legislation
essentially "puts all school districts on notice that the real
intent here is 13 years of funding through the foundation program
not 14."
Senator Hoffman asked if all of the communities where this is
occurring have access to a Head Start program.
Mr. Jeans replied that some do, although others do not.
Senator Hoffman characterized this as a parody issue: those
communities with access to Head Start offer an unfair advantage for
their students entering school if the communities without access to
Head Start are prohibited from a two-year kindergarten program.
Senator Bunde asked for assurance that this legislation would not
prevent districts from implementing age requirements; specifically
that students must reach the age of five by a certain date before
eligible to enroll in kindergarten.
Mr. Jeans responded that the age requirement to enter kindergarten
is established elsewhere in statute and provides that a child must
be five years old by August 15 of that school year. He clarified
this legislation would not prohibit the evaluation and
determination by a school district that a child is truly ready for
kindergarten, with the expectation that the child would advance to
first grade in the subsequent school year, and allowing that child
to enroll in kindergarten.
Senator Bunde asked if the current practice of districts is that
this determination is made without the honest expectation that the
four-year old child would advance to first grade.
Co-Chair Wilken suggested this was an unfair question to the
witness, as he could not be expected to know the intent of school
districts.
Senator Taylor expressed concern that the language is not specific
enough. He asked if every underage student enrolled must be
advanced to first grade the next year regardless of whether that
child is ready.
Mr. Jeans assured that the Department does not intend to apply the
stipulations "so black and white". He understood that districts
would determine some children have the ability to advance to the
next grade level the following year and would enroll them, only to
later learn these children are not ready. He pointed out that some
five year olds enter kindergarten and are not ready to advance the
following year. He stressed this legislation is intended to address
the matter of districts enrolling every four-year old into the
public school system and collecting State foundation funding.
Senator Taylor asked what would prevent a district to continuing
the practice, claiming intent to advance each student. He opined
this is a manipulation of the foundation funds by certain school
districts to obtain more money. He recalled earlier practices
before the passage of SB 36, establishing the current foundation
funding formula, in which some districts claimed gifted students at
a rate 2,000 percent higher than any other community in the United
States. He elaborated about other misuses.
Mr. Jeans assured the testimony on this legislation adequately
establishes intent and that if the Department discovers a school
district is "blanketly" enrolling four-year olds, it would have the
authority to deny funding in the subsequent school year.
Senator Taylor offered a motion to report the bill from Committee
with individual recommendations and accompanying fiscal note.
Without objection CS HB 154 (FIN) MOVED from Committee with fiscal
note #2 from the Department of Education and Early Development,
which reflected a reduced expense of $3,916,200 in FY 05.
Co-Chair Wilken announced the Committee would recess to the call of
the chair.
AT EASE 10:57 AM / 2:26 PM
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 02:26 PM
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